Document:

INDENTURE

     

    among

     

    THORNBURG
      MORTGAGE SECURITIES TRUST 2007-2,

    Issuer,

    

    

    LASALLE
      BANK NATIONAL ASSOCIATION,

    Indenture
      Trustee

     

    and

     

    WELLS
      FARGO BANK, N.A.,

    Securities
      Administrator

     

    

     

    Dated
      as
      of April 1, 2007

    

    

    

    THORNBURG
      MORTGAGE SECURITIES TRUST 2007-2

    MORTGAGE-BACKED
      NOTES, SERIES 2007-2

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
      OF
      CONTENTS

    Page

     

    ARTICLE
      I
      DEFINITIONS AND INCORPORATION BY REFERENCE

     

    

      
        	
                Section
                  1.01

              	
                Definitions

              	
                2

              
	
                Section
                  1.02

              	
                Rules
                  of Construction

              	
                9

              
	 	 	 
	
                ARTICLE
                  II
                  THE NOTES

              
	 	 	 
	
                Section
                  2.01

              	
                Form

              	
                10

              
	
                Section
                  2.02

              	
                Execution,
                  Authentication and Delivery

              	
                11

              
	
                Section
                  2.03

              	
                Limitations
                  on Transfer of the Notes

              	
                14

              
	
                Section
                  2.04

              	
                Registration;
                  Registration of Transfer and Exchange

              	
                15

              
	
                Section
                  2.05

              	
                Mutilated,
                  Destroyed, Lost or Stolen Notes

              	
                17

              
	
                Section
                  2.06

              	
                Persons
                  Deemed Owners

              	
                18

              
	
                Section
                  2.07

              	
                Payment
                  of Principal and Interest

              	
                18

              
	
                Section
                  2.08

              	
                Cancellation

              	
                19

              
	
                Section
                  2.09

              	
                Release
                  of Collateral

              	
                19

              
	
                Section
                  2.10

              	
                Book-Entry
                  Notes

              	
                20

              
	
                Section
                  2.11

              	
                Notices
                  to Clearing Agency

              	
                21

              
	
                Section
                  2.12

              	
                Definitive
                  Notes

              	
                21

              
	
                Section
                  2.13

              	
                Tax
                  Treatment

              	
                21

              
	
                Section
                  2.14

              	
                Restrictions
                  on Transfer and Retention of Beneficial Ownership Interest in the
                  Retained
                  Notes

              	
                22

              
	 	 	 
	
                ARTICLE
                  III
                  COVENANTS

              
	 	 	 
	
                Section
                  3.01

              	
                Payment
                  of Principal and Interest

              	
                23

              
	
                Section
                  3.02

              	
                Maintenance
                  of Office or Agency

              	
                23

              
	
                Section
                  3.03

              	
                Money
                  for Payments to be Held in Trust

              	
                23

              
	
                Section
                  3.04

              	
                Existence

              	
                25

              
	
                Section
                  3.05

              	
                Protection
                  of Collateral

              	
                25

              
	
                Section
                  3.06

              	
                Opinions
                  as to Collateral

              	
                26

              
	
                Section
                  3.07

              	
                Performance
                  of Obligations

              	
                26

              
	
                Section
                  3.08

              	
                Negative
                  Covenants

              	
                28

              
	
                Section
                  3.09

              	
                Annual
                  Statement as to Compliance

              	
                28

              
	
                Section
                  3.10

              	
                Treatment
                  of Notes as Debt for Tax Purposes

              	
                29

              
	
                Section
                  3.11

              	
                No
                  Other Business

              	
                29

              
	
                Section
                  3.12

              	
                No
                  Borrowing

              	
                29

              
	
                Section
                  3.13

              	
                Guarantees,
                  Loans, Advances and Other Liabilities

              	
                29

              
	
                Section
                  3.14

              	
                Capital
                  Expenditures

              	
                29

              
	
                Section
                  3.15

              	
                Removal
                  of Administrator

              	
                29

              
	
                Section
                  3.16

              	
                Restricted
                  Payments

              	
                29

              
	
                Section
                  3.17

              	
                Notice
                  of Events of Default

              	
                30

              
	
                Section
                  3.18

              	
                Further
                  Instruments and Acts

              	
                30

              
	
                Section
                  3.19

              	
                Covenants
                  of the Issuer

              	
                30

              

      

       

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

       

      
        	
                Section
                  3.20

              	
                Representations
                  and Warranties of the Issuer

              	
                30

              
	 	 	 
	
                ARTICLE
                  IV
                  SATISFACTION AND DISCHARGE

              
	 	 	 
	
                Section
                  4.01

              	
                Satisfaction
                  and Discharge of Indenture

              	
                31

              
	
                Section
                  4.02

              	
                Application
                  of Trust Money

              	
                32

              
	
                Section
                  4.03

              	
                Repayment
                  of Moneys Held by Paying Agent

              	
                32

              
	
                Section
                  4.04

              	
                Trust
                  Money Received by Indenture Trustee

              	
                33

              
	 	 	 
	
                ARTICLE
                  V
                  EVENTS OF DEFAULT; REMEDIES

              
	 	 	 
	
                Section
                  5.01

              	
                Events
                  of Default

              	
                33

              
	
                Section
                  5.02

              	
                Acceleration
                  of Maturity; Rescission and Annulment

              	
                34

              
	
                Section
                  5.03

              	
                Collection
                  of Indebtedness and Suits for Enforcement by Indenture
                  Trustee

              	
                35

              
	
                Section
                  5.04

              	
                Remedies;
                  Priorities

              	
                37

              
	
                Section
                  5.05

              	
                Optional
                  Preservation of the Collateral

              	
                38

              
	
                Section
                  5.06

              	
                Limitation
                  of Suits

              	
                39

              
	
                Section
                  5.07

              	
                Unconditional
                  Rights of Noteholders To Receive Principal and Interest

              	
                39

              
	
                Section
                  5.08

              	
                Restoration
                  of Rights and Remedies

              	
                40

              
	
                Section
                  5.09

              	
                Rights
                  and Remedies Cumulative

              	
                40

              
	
                Section
                  5.10

              	
                Delay
                  or Omission Not a Waiver

              	
                40

              
	
                Section
                  5.11

              	
                Control
                  by Noteholders

              	
                40

              
	
                Section
                  5.12

              	
                Waiver
                  of Past Defaults

              	
                41

              
	
                Section
                  5.13

              	
                Undertaking
                  for Costs

              	
                41

              
	
                Section
                  5.14

              	
                Waiver
                  of Stay or Extension Laws

              	
                41

              
	
                Section
                  5.15

              	
                Action
                  on Notes

              	
                42

              
	
                Section
                  5.16

              	
                Performance
                  and Enforcement of Certain Obligations

              	
                42

              
	 	 	 
	
                ARTICLE
                  VI
                  THE INDENTURE TRUSTEE

              
	 	 	 
	
                Section
                  6.01

              	
                Duties
                  of Indenture Trustee

              	
                43

              
	
                Section
                  6.02

              	
                Rights
                  of Indenture Trustee

              	
                45

              
	
                Section
                  6.03

              	
                Individual
                  Rights of Indenture Trustee

              	
                46

              
	
                Section
                  6.04

              	
                Indenture
                  Trustee’s Disclaimer

              	
                46

              
	
                Section
                  6.05

              	
                Notice
                  of Defaults

              	
                46

              
	
                Section
                  6.06

              	
                Reports
                  by Indenture Trustee to Holders

              	
                46

              
	
                Section
                  6.07

              	
                Compensation
                  and Indemnity

              	
                46

              
	
                Section
                  6.08

              	
                Replacement
                  of Indenture Trustee

              	
                47

              
	
                Section
                  6.09

              	
                Successor
                  Indenture Trustee by Merger

              	
                48

              
	
                Section
                  6.10

              	
                Appointment
                  of Co-Indenture Trustee or Separate Indenture Trustee

              	
                48

              
	
                Section
                  6.11

              	
                Eligibility;
                  Disqualification

              	
                49

              
	
                Section
                  6.12

              	
                Representations
                  and Warranties

              	
                50

              
	
                Section
                  6.13

              	
                Preferential
                  Collection of Claims Against Issuer

              	
                50

              
	
                Section
                  6.14

              	
                Reporting
                  Requirements of the Commission

              	
                50

              
	 	 	 
	
                ARTICLE
                  VII
                  NOTEHOLDERS’ LISTS AND REPORTS

              
	 	 	 
	
                Section
                  7.01

              	
                Issuer
                  To Furnish Indenture Trustee Names and Addresses of
                  Noteholders

              	
                52

              

      

       

      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

       

      
        	
                Section
                  7.02

              	
                Preservation
                  of Information; Communications to Noteholders

              	
                53

              
	
                Section
                  7.03

              	
                Reports
                  by Issuer

              	
                53

              
	
                Section
                  7.04

              	
                Reports
                  by Indenture Trustee

              	
                54

              
	 	 	 
	
                ARTICLE
                  VIII
                  ACCOUNTS, DISBURSEMENTS AND RELEASES

              
	 	 	 
	
                Section
                  8.01

              	
                Collection
                  of Money

              	
                54

              
	
                Section
                  8.02

              	
                Note
                  Payment Account and Certificate Distribution Account

              	
                54

              
	
                Section
                  8.03

              	
                General
                  Provisions Regarding Accounts

              	
                55

              
	
                Section
                  8.04

              	
                Release
                  of Collateral

              	
                55

              
	 	 	 
	
                ARTICLE
                  IX
                  SUPPLEMENTAL INDENTURES

              
	 	 	 
	
                Section
                  9.01

              	
                Supplemental
                  Indentures Without Consent of Noteholders

              	
                55

              
	
                Section
                  9.02

              	
                Supplemental
                  Indentures with Consent of Noteholders

              	
                56

              
	
                Section
                  9.03

              	
                Execution
                  of Supplemental Indentures

              	
                57

              
	
                Section
                  9.04

              	
                Effect
                  of Supplemental Indenture

              	
                58

              
	
                Section
                  9.05

              	
                Conformity
                  with Trust Indenture Act

              	
                58

              
	
                Section
                  9.06

              	
                Reference
                  in Notes to Supplemental Indentures

              	
                58

              
	
                Section
                  9.07

              	
                Opinion
                  of Counsel

              	
                58

              
	 	 	 
	
                ARTICLE
                  X
                  REDEMPTION OF NOTES

              
	 	 	 
	
                Section
                  10.01

              	
                Redemption
                  or Call of the Notes

              	
                59

              
	
                Section
                  10.02

              	
                Form
                  of Redemption Notice

              	
                59

              
	
                Section
                  10.03

              	
                Notes
                  Payable on Clean-up Call Date or Optional Notes Purchase
                  Date

              	
                60

              
	 	 	 
	
                ARTICLE
                  XI
                  MISCELLANEOUS

              
	 	 	 
	
                Section
                  11.01

              	
                Compliance
                  Certificates and Opinions, etc.

              	
                60

              
	
                Section
                  11.02

              	
                Form
                  of Documents Delivered to Indenture Trustee

              	
                61

              
	
                Section
                  11.03

              	
                Acts
                  of Noteholders

              	
                62

              
	
                Section
                  11.04

              	
                Notices,
                  etc., to Indenture Trustee, Issuer and Rating Agencies

              	
                62

              
	
                Section
                  11.05

              	
                Notices
                  to Noteholders; Waiver

              	
                63

              
	
                Section
                  11.06

              	
                Conflict
                  with Trust Indenture Act

              	
                64

              
	
                Section
                  11.07

              	
                Effect
                  of Headings and Table of Contents

              	
                64

              
	
                Section
                  11.08

              	
                Successors
                  and Assigns

              	
                64

              
	
                Section
                  11.09

              	
                Severability

              	
                64

              
	
                Section
                  11.10

              	
                Benefits
                  of Indenture and Consents of Noteholders

              	
                64

              
	
                Section
                  11.11

              	
                Legal
                  Holidays

              	
                64

              
	
                Section
                  11.12

              	
                Governing
                  Law

              	
                64

              
	
                Section
                  11.13

              	
                Counterparts

              	
                64

              
	
                Section
                  11.14

              	
                Recording
                  of Indenture

              	
                64

              
	
                Section
                  11.15

              	
                Trust
                  Obligations

              	
                65

              
	
                Section
                  11.16

              	
                No
                  Petition

              	
                65

              
	
                Section
                  11.17

              	
                Inspection

              	
                66

              
	
                Section
                  11.18

              	
                Agreements
                  of Noteholders

              	
                66

              
	
                 

              	
                 

              	
                 

              

      

    

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

     

    EXHIBITS

     

    
      	
              EXHIBIT
                A-1

            	
              Forms
                of Class A Notes

            

    

    
      	
              EXHIBIT
                A-2

            	
              Forms
                of Privately Offered Notes

            

    

    
      	
              EXHIBIT
                B-1

            	
              Form
                of Rule 144A (QIB) Investment
                Letter

            

    

    
      	
              EXHIBIT
                B-2

            	
              Form
                of Rule 501(a) Investment Letter

            

    

    
      	
              EXHIBIT
                C

            	
              Form
                of ERISA Affidavit for Class A
                Notes

            

    

    

    

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

    This
      INDENTURE, dated as of April 1, 2007, is by and among THORNBURG MORTGAGE
      SECURITIES TRUST 2007-2, a Delaware statutory trust (the “Issuer”), LASALLE BANK
      NATIONAL ASSOCIATION, a national banking association, as indenture trustee
      and
      not in its individual capacity (the “Indenture Trustee”), and WELLS FARGO BANK,
      N.A., a national banking association, as securities administrator and not in
      its
      individual capacity (the “Securities Administrator”).

     

    Each
      party agrees as follows for the benefit of the other parties and for the equal
      and ratable benefit of the Holders of the Issuer’s Mortgage-Backed Notes, Series
      2007-2 in the Classes specified herein:

     

    GRANTING
      CLAUSE

     

    The
      Issuer hereby Grants to the Indenture Trustee on the Closing Date, for the
      benefit of the Holders of the Notes, all of the Issuer’s right, title and
      interest, whether now owned or hereafter acquired, in and to: (i) the Trust
      Estate (as defined in the Sale and Servicing Agreement); (ii) the Issuer’s
      rights and benefits but none of its obligations under the Sale and Servicing
      Agreement (including the Issuer’s right to cause the Initial Seller or the
      Seller to repurchase Mortgage Loans from the Issuer under the circumstances
      described therein); (iii) the Yield Maintenance Agreements and all payments
      thereunder; (iv) the Issuer’s rights and benefits but none of its
      obligations under the Administration Agreement; (v) the Issuer’s rights and
      benefits but none of its obligations under the SASCO Mortgage Loan Purchase
      Agreement and the TMFI Mortgage Loan Purchase Agreement; (vi) the Issuer’s
      rights and benefits but none of its obligations under the Servicing Agreements;
      (vii) the Trust Accounts, all amounts and property in the Trust Accounts from
      time to time; (viii) all other property of the Trust from time to time; and
      (ix)
      all present and future claims, demands, causes of action and choses in action
      in
      respect of any or all of the foregoing and all payments on or under and all
      proceeds of every kind and nature whatsoever in respect of any or all of the
      foregoing, including all proceeds of the conversion thereof, voluntary or
      involuntary, into cash or other liquid property, all cash proceeds, accounts,
      accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit
      accounts, insurance proceeds, condemnation awards, rights to payment of any
      and
      every kind and other forms of obligations and receivables, instruments and
      other
      property which at any time constitute all or part of or are included in the
      proceeds of any of the foregoing (collectively, the “Collateral”).

     

    The
      foregoing Grant is made in trust to secure the payment of principal of and
      interest on, and any other amounts owing in respect of, the Notes and to secure
      (i) the payment of all amounts due on the Notes in accordance with their terms,
      (ii) the payment of all other sums payable under the Indenture with respect
      to
      the Notes and (iii) compliance with the provisions of this Indenture, all as
      provided in this Indenture.

     

    The
      Indenture Trustee, as Indenture Trustee on behalf of the Holders of the Notes,
      acknowledges such Grant and accepts the trusts under this Indenture in
      accordance with its terms.

     

    Each
      Holder, by acceptance of the Notes, and the Indenture Trustee agree and
      acknowledge that each item of Collateral that is physically delivered to the
      Indenture Trustee or the Securities Administrator will be held by the Indenture
      Trustee (or its custodian) or the Securities Administrator in trust for the
      benefit of the Noteholders under the terms of this Indenture.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    ARTICLE
      I

     

    DEFINITIONS
      AND INCORPORATION BY REFERENCE

     

    Section
      1.01. Definitions.
      Except
      as otherwise specified herein or as the context may otherwise require, (i)
      capitalized terms used but not otherwise defined herein shall have the
      respective meanings set forth in the Sale and Servicing Agreement for all
      purposes of this Indenture and (ii) the following terms have the respective
      meanings set forth below for all purposes of this Indenture.

    Act:
      The
      meaning specified in Section 11.03(a).

     

    Administration
      Agreement:
      The
      Administration Agreement dated as of April 1, 2007 among the Issuer, the
      Indenture Trustee, the Securities Administrator, Wilmington Trust Company,
      as
      owner trustee, and the Depositor.

     

    Affiliate:
      With
      respect to any specified Person, any other Person controlling or controlled
      by
      or under common control with such specified Person. For the purposes of this
      definition, “control” when used with respect to any specified Person means the
      power to direct the
      management and policies of such Person, directly or indirectly, whether through
      the ownership of voting securities, by contract
      or otherwise; and the terms “controlling” and “controlled” have meanings
      correlative to the foregoing.

     

    Authorized
      Officer:
      With
      respect to the Issuer, any officer of the Owner Trustee who is authorized to
      act
      for the Owner Trustee in matters relating to the Issuer and who is identified
      on
      the list of Authorized Officers delivered by the Owner Trustee to the Indenture
      Trustee on the Closing Date (as such list may be modified or supplemented from
      time to time thereafter) and, so long as the Administration Agreement is in
      effect, any Vice President, Assistant Vice President, Trust Officer or more
      senior officer of the Securities Administrator who is authorized to act for
      the
      Securities Administrator in matters relating to the Issuer and to be acted
      upon
      by the Securities Administrator pursuant to the Administration Agreement and
      who
      is identified on the list of Authorized Officers delivered by the Securities
      Administrator to the Indenture Trustee on the Closing Date (as such list may
      be
      modified or supplemented from time to time thereafter).

     

    Book-Entry
      Notes:
      Solely
      with respect to the Class A Notes, beneficial interests in Class A Notes,
      ownership and transfers of which shall be evidenced or made through book entries
      by a Clearing Agency as described in Section 2.10; provided,
      that
      after the occurrence of a condition whereupon Definitive Notes are to be issued
      to Note Owners of Class A Notes, such Class A Notes shall no longer be
“Book-Entry Notes.”

     

    Class:
      All
      Notes having the same class designation.

     

    Class
      A Notes:
      Collectively, the Class A-1, Class A-2A, Class A-2B, Class A-3A and Class A-3B
      Notes.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Certificate
      of Trust:
      The
      certificate of trust of the Issuer substantially in the form of Exhibit B to
      the
      Trust Agreement.

     

    Clearing
      Agency:
      An
      organization registered as a “clearing agency” pursuant to Section 17A of the
      Exchange Act, as amended. As of the Closing Date, the Clearing Agency shall
      be
      The Depository Trust Company.

     

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

     

    Collateral:
      The
      meaning specified in the Granting Clause of this Indenture.

     

    Commission:
      The
      Securities and Exchange Commission.

     

    Corporate
      Trust Office:
      The
      principal office of the Indenture Trustee at which at any particular time its
      corporate trust business shall be administered, which office at the date of
      execution of this Indenture is located at 135
      S.
      LaSalle Street, Suite 1511, Chicago, IL 60603, Attention: Global Securities
      and
      Trust Services, Reference: Thornburg 2007-2, or at such other address as the
      Indenture Trustee may designate from time to time by notice to the Noteholders,
      and the Issuer, or the principal corporate trust office of any successor
      Indenture Trustee at the address designated by such successor Indenture Trustee
      by notice to the Noteholders and the Issuer.

     

    Default:
      Any
      occurrence that is, or with notice or the lapse of time or both would become,
      an
      Event of Default.

     

    Definitive
      Notes:
      The
      meaning specified in Section 2.10.

     

    Depository
      Institution:
      Any
      depository institution or trust company, including the Indenture Trustee and
      the
      Securities Administrator, that (a) is incorporated under the laws of the United
      States of America or any State thereof, (b) is subject to supervision and
      examination by federal or state banking authorities and (c) has outstanding
      unsecured commercial paper or other short-term unsecured debt obligations that
      are rated in the highest rating category by each Rating Agency, or is otherwise
      acceptable to each Rating Agency.

     

    DTC:
      The
      Depository Trust Company.

     

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

     

    Event
      of Default:
      The
      meaning specified in Section 5.01.

     

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

     

    Executive
      Officer:
      With
      respect to any corporation or limited liability company, the Chief Executive
      Officer, Chief Operating Officer, Chief Financial Officer, President, Manager,
      Executive Vice President, any Vice President, the Secretary or the Treasurer
      of
      such entity; and with respect to any partnership, any general partner
      thereof.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Global
      Securities:
      The
      meaning specified in Section 2.01(a).

     

    Grant:
      Mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey,
      assign, transfer, create and grant a lien upon and a security interest in and
      a
      right of set-off against, deposit, set over and confirm pursuant to this
      Indenture. A Grant of the Collateral or of any other agreement or instrument
      shall include all rights, powers and options (but none of the obligations)
      of
      the granting party thereunder, including the immediate and continuing right
      to
      claim for, collect, receive and give receipt for principal and interest payments
      in respect of the Collateral and all other moneys payable thereunder, to give
      and receive notices and other communications, to make waivers or other
      agreements, to exercise all rights and options, to bring Proceedings in the
      name
      of the granting party or otherwise and generally to do and receive anything
      that
      the granting party is or may be entitled to do or receive thereunder or with
      respect thereto.

     

    Holder
      or
Noteholder:
      A
      Person in whose name a Note is registered on the Note Register except that,
      solely for the purposes of taking any action or giving any consent pursuant
      to
      this Indenture, any Note registered in the name of the Indenture Trustee or
      any
      Affiliate thereof shall be deemed not to be Outstanding in determining whether
      the requisite percentage necessary to effect any such consent has been obtained,
      except that, in determining whether the Indenture Trustee shall be protected
      in
      relying upon any such consent, only Notes which a Responsible Officer of the
      Indenture Trustee knows to be so held shall be disregarded.

     

    Independent:
      When
      used with respect to any specified Person, that such Person (a) is in fact
      independent of the Issuer, any other obligor on the Notes, the Seller, the
      Initial Seller and any Affiliate of any of the foregoing Persons, (b) does
      not
      have any direct financial interest or any material indirect financial interest
      in the Issuer, any such other obligor, the Seller, the Initial Seller or any
      Affiliate of any of the foregoing Persons and (c) is not connected with the
      Issuer, any such other obligor, the Seller, the Initial Seller or any Affiliate
      of any of the foregoing Persons as an officer, employee, promoter, underwriter,
      trustee, partner, director or person performing similar functions.

     

    Independent
      Certificate:
      A
      certificate or opinion to be delivered to the Indenture Trustee under the
      circumstances described in, and otherwise complying with, the applicable
      requirements of Section 11.01, made by an Independent appraiser or other expert
      appointed by an Issuer Order and approved by the Indenture Trustee or Securities
      Administrator, as applicable, in the exercise of reasonable care, and such
      opinion or certificate shall state that the signer has read the definition
      of
“Independent” in this Indenture and that the signer is Independent within the
      meaning thereof.

     

    Interest
      Only Notes:
      The
      Class A-X Notes.

     

    Issuer:
      Thornburg Mortgage Securities Trust 2007-2, a Delaware statutory trust, or
      any
      successor and, for purposes of any provision contained herein and required
      by
      the TIA, each other obligor on the Notes.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Issuer
      Order
      or
Issuer
      Request:
      A
      written order or request signed in the name of the Issuer by any one of its
      Authorized Officers and delivered to the Indenture Trustee or Securities
      Administrator, as applicable.

     

    Majority
      Priority Class Noteholders:
      On any
      date Holders of the Priority Class representing more than 50% of the aggregate
      Class Principal Amount of the Priority Class Notes then
      outstanding.

     

    Non-Priority
      Class Note:
      As of
      any date of determination, any Outstanding Note other than the Priority Class
      Notes.

     

    Note:
      Any of
      the Class A-1, Class A-2A, Class A-2B, Class A-3A, Class A-3B, Class B-1, Class
      B-2, Class B-3, Class B-4, Class B-5, Class B-6 and Class A-X Notes issued
      pursuant to this Indenture, substantially in the forms attached hereto as
      Exhibit A.

     

    Note
      Depository Agreement:
      The
      agreement dated April 27, 2007, between the Issuer and The Depository Trust
      Company, as the initial Clearing Agency, relating to the Book-Entry
      Notes.

     

    Note
      Owner
      or
Owner:
      With
      respect to a Book-Entry Note, the Person that is the beneficial owner of such
      Book-Entry Note, as reflected on the books of the Clearing Agency or on the
      books of a Person maintaining an account with such Clearing Agency (directly
      as
      a Clearing Agency Participant or as an indirect participant, in each case in
      accordance with the rules of such Clearing Agency), and with respect to a
      Definitive Note, the Person that is the registered owner of such Note as
      reflected in the Note Register.

     

    Note
      Principal Amount:
      With
      respect to each Note of a given Class (other than the Class A-X Note) and any
      date of determination, the product of (i) the Class Principal Amount of such
      Class and (ii) the applicable Percentage Interest of such Note.

     

    Note
      Purchase Price:
      For
      each Class of Notes and any Optional Notes Purchase Date, an amount equal to
      the
      sum of (1) 100% of the aggregate Class Principal Amount for such Class and
      such
      date, (2) the aggregate accrued and unpaid interest, less amounts of interest
      and principal otherwise being paid to such Noteholders on such date and (3)
      any
      unreimbursed Class A Deferred Amounts.

     

    Note
      Register
      and
Note
      Registrar:
      The
      respective meanings specified in Section 2.04. The initial Note Registrar shall
      be the Securities Administrator. 

     

    Officer’s
      Certificate:
      A
      certificate signed by any Authorized Officer of the Issuer (or by an officer
      of
      the Depositor under the Administration Agreement), under the circumstances
      described in, and otherwise complying with, the applicable requirements of
      Section 11.01, and delivered to the Indenture Trustee and the Securities
      Administrator. Unless otherwise specified, any reference in this Indenture
      to an
      Officer’s Certificate shall be to an Officer’s Certificate of any Authorized
      Officer of the Issuer.

     

    Opinion
      of Counsel:
      One or
      more written opinions of counsel who may, except as otherwise expressly provided
      in this Indenture, be employees of or counsel to the Issuer and who shall be
      satisfactory to the Indenture Trustee, the Note Registrar or the Securities
      Administrator, as applicable, which opinion or opinions shall be addressed
      to
      the Indenture Trustee, as Indenture Trustee, and shall comply with any
      applicable requirements of Section 11.01 and shall be in form and substance
      satisfactory to the Indenture Trustee, the Note Registrar or the Securities
      Administrator, as applicable.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Optional
      Notes Purchase Date:
      Any
      Payment Date on which the Optional Notes Purchase Right is
      exercised.

     

    Optional
      Notes Purchase Right:
      The
      option of TMI, or its assignee, to call the Notes on any Payment Date on which
      the aggregate Scheduled Principal Balance of the Mortgage Loans is equal to
      or
      less than 20% of the aggregate Cut-off Date Balance.

     

    Outstanding:
      With
      respect to any Note as of the date of determination, all Notes theretofore
      authenticated and delivered under this Indenture except:

     

    (i) Notes
      theretofore cancelled by the Note Registrar or delivered to the Note Registrar
      for cancellation;

     

    (ii) Notes,
      or
      portions thereof, the payment for which money in the necessary amount has been
      theretofore deposited with the Securities Administrator or any Paying Agent
      in
      trust for the Holders of such Notes (provided,
      however,
      that if
      such Notes are to be redeemed, notice of such redemption has been duly given
      pursuant to this Indenture or provision for such notice has been made,
      satisfactory to the Securities Administrator); and

     

    (iii) Notes
      or
      portions thereof in exchange for or in lieu of which other Notes have been
      authenticated and delivered pursuant to this Indenture unless proof satisfactory
      to the Securities Administrator is presented that any such Notes are held by
      a
      bona fide purchaser;

     

    provided,
      that in
      determining whether the Holders of the requisite Outstanding Balance of the
      Notes have given any request, demand, authorization, direction, notice, consent
      or waiver hereunder or under any other Operative Agreement, Notes owned by
      the
      Issuer, any other obligor upon the Notes, the Depositor, the Owner Trustee,
      the
      Indenture Trustee, a Servicer, the Securities Administrator or any Affiliate
      of
      any of the foregoing Persons shall be disregarded and deemed not to be
      Outstanding, except that, in determining whether the Indenture Trustee shall
      be
      protected in relying upon any such request, demand, authorization, direction,
      notice, consent or waiver, only Notes that a Responsible Officer of the
      Indenture Trustee or the Securities Administrator knows to be so owned shall
      be
      so disregarded (unless such action requires the consent, waiver, request or
      demand of 100% of the Outstanding Balance represented by a particular Class
      and
      100% of the Outstanding Balance represented by such Class is registered in
      the
      name of one or more of the foregoing entities). Notes so owned that have been
      pledged in good faith may be regarded as Outstanding if the pledgee establishes
      to the satisfaction of the Securities Administrator the pledgee’s right so to
      act with respect to such Notes and that the pledgee is not the Issuer, any
      other
      obligor upon the Notes, the Depositor, the Owner Trustee, the Indenture Trustee,
      the Servicer, the Securities Administrator or any Affiliate of any of the
      foregoing Persons.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    Outstanding
      Balance:
      The
      aggregate principal or notional amount of the Notes Outstanding, or of all
      Notes
      of a Class, as applicable, as of the date of determination.

     

    Ownership
      Certificates:
      As
      defined in the Trust Agreement.

     

    Paying
      Agent:
      Initially, the Securities Administrator or any other Person that meets the
      eligibility standards for the Indenture Trustee specified in Section 6.11 and
      is
      authorized and appointed by the Issuer to make payments to and from the Note
      Payment Account, including payments of principal of or interest on the Notes
      on
      behalf of the Issuer. 

     

    PCAOB:
      The
      Public Company Accounting Oversight Board.

     

    Predecessor
      Note:
      With
      respect to any particular Note, every previous Note evidencing all or a portion
      of the same debt as that evidenced by such particular Note; and, for the purpose
      of this definition, any Note authenticated and delivered under Section 2.05
      in
      lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence
      the same debt as the mutilated, lost, destroyed or stolen Note.

     

    Priority
      Class Notes:
      Until
      the Class Principal Amounts of the Class A Notes are reduced to zero and all
      sums payable to the Holders of the Class A Notes have been paid in full, the
      Class A Notes acting as a single Class; when the Class Principal Amounts of
      the
      Class A Notes are reduced to zero and all sums payable to the Holders of the
      Class A Notes have been paid in full, each individual Class of Subordinate
      Notes
      consecutively in ascending order, starting with the Class of Subordinate Notes
      with the lowest numerical designation, until the Class Principal Amounts of
      such
      Class of Subordinate Notes are reduced to zero and all sums payable to the
      Holders thereof have been paid in full.

     

    Privately
      Offered Notes:
      The
      Subordinated Notes and the Interest Only Notes.

     

    Proceeding:
      Any
      suit in equity, action at law or other judicial or administrative
      proceeding.

     

    Prospective
      Owner:
      Each
      prospective purchaser and any subsequent transferee of a Note.

     

    Rating
      Agency Condition:
      With
      respect to any action to which the Rating Agency Condition applies, that each
      Rating Agency shall have been given 10 days (or such shorter period as is
      acceptable to each Rating Agency) prior notice thereof and that each Rating
      Agency shall have notified the Depositor, the Owner Trustee, the Securities
      Administrator and the Indenture Trustee in writing that such proposed action
      will not result in a reduction or withdrawal of the then current rating of
      the
      applicable Class or Classes of Notes.

     

    Redemption
      Date:
      A
      Clean-Up Call Date or Optional Notes Purchase Date, as applicable.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Required
      Rating:
      The
      Notes have received, on the Closing Date, the following ratings from the Rating
      Agencies:

     

    
      	
               

              Class

            	
              Moody’s

              Rating

            	
               

              S&P
                Rating

            
	
              A-1

            	
              Aaa

            	
              AAA

            
	
              A-2A

            	
              Aaa

            	
              AAA

            
	
              A-2B

            	
              Aaa

            	
              AAA

            
	
              A-3A

            	
              Aaa

            	
              AAA

            
	
              A-3B

            	
              Aaa

            	
              AAA

            
	
              A-X

            	
              Aa1

            	
              AA

            
	
              B-1

            	
              N/R

            	
              AA

            
	
              B-2

            	
              N/R

            	
              A

            
	
              B-3

            	
              N/R

            	
              BBB

            
	
              B-4

            	
              N/R

            	
              BB

            
	
              B-5

            	
              N/R

            	
              B

            
	
              B-6

            	
              N/R

            	
              N/R

            

    

    N/R
      = Not
      rated by that Rating Agency

    

    Responsible
      Officer:
      With
      respect to the Indenture Trustee, any Vice President, any Assistant Vice
      President, any Assistant Secretary, or Assistant Treasurer in the corporate
      trust group or similar group of the Indenture Trustee customarily performing
      functions similar to those performed by any of the above-designated officers
      and
      also, with respect to a particular matter, any other officer to whom such matter
      is referred because of such officer’s knowledge of and familiarity with the
      particular subject. With respect to the Securities Administrator, any officer
      in
      the corporate trust department or similar group of the Securities Administrator
      with direct responsibility for the administration of this Indenture and also,
      with respect to a particular corporate trust matter, any other officer to whom
      such matter is referred because of his or her knowledge of and familiarity
      with
      the particular subject.

     

    Sale
      and Servicing Agreement:
      The
      Sale and Servicing Agreement dated as of April 1, 2007, among the Issuer,
      Structured Asset Securities Corporation, as depositor, Thornburg Mortgage Home
      Loans, Inc., as initial seller and sponsor, Thornburg Mortgage Funding, Inc.,
      as
      seller, Wells Fargo Bank, N.A., as master servicer and securities administrator,
      and the Indenture Trustee, as such may be amended, supplemented or otherwise
      modified from time to time.

     

    Sponsor:
      Thornburg Mortgage Home Loans, Inc.

     

    State:
      Any one
      of the 50 States of the United States of America or the District of
      Columbia.

     

    Stated
      Maturity Date:
      With
      respect to each Class of Notes, the date set forth in Section 2.02.

     

    Subordinated
      Notes:
      The
      Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6
      Notes.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Trust
      Indenture Act or TIA:
      The
      Trust Indenture Act of 1939 as in force on the date hereof, unless otherwise
      specifically provided.

     

    Section
      1.02. Incorporation
      by Reference of Trust Indenture Act.
      

     

    (a) Whenever
      this Indenture refers to a provision of the TIA, the provision is incorporated
      by reference in and made a part of this Indenture. The following TIA terms
      used
      in this Indenture have the following meanings:

     

    “Commission”
      means the Securities and Exchange Commission. 

     

    “indenture
      securities” means the Notes.

     

    “indenture
      security holder” means a Noteholder. 

     

    “indenture
      to be qualified” means this Indenture. 

     

    “indenture
      trustee” or “institutional trustee” means the Indenture Trustee.

     

    “obligor”
      on the indenture securities means the Issuer and any other obligor on the
      indenture securities.

     

    (b) All
      other
      TIA terms used in this Indenture that are defined in the TIA, defined by TIA
      reference to another statute or defined by rule of the Securities and Exchange
      Commission have the respective meanings assigned to them by such
      definitions.

     

    Section
      1.03. Rules
      of Construction.
      Unless
      the context otherwise requires:

    (i) a
      term
      has the meaning assigned to it;

     

    (ii) an
      accounting term not otherwise defined has the meaning assigned to it in
      accordance with generally accepted accounting principles as in effect from
      time
      to time;

     

    (iii) “or”
is
      not exclusive;

     

    (iv) “including”
      means including without limitation;

     

    (v) words
      in
      the singular include the plural and words in the plural include the singular;
      

     

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

     

    (vii) terms
      defined in the UCC and not otherwise defined herein shall have the meaning
      assigned to them in the UCC; and

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (viii) “U.S.
      dollars,” “dollars,” or the sign “$” shall be construed as references to United
      States dollars which are freely transferable by residents and non-residents
      of
      the United States of America and convertible by such persons into any other
      freely convertible currency unless such transferability or convertibility is
      restricted by any law or regulation of general application in which event
      references to “U.S. dollars,” “dollars,” or the sign “$” shall be construed as
      references to such coin or currency of the United States of America as at the
      time of payment shall be legal tender for the payment of public and private
      debts in the United States of America, and “cents” shall be construed
      accordingly.

     

    ARTICLE
      II

     

    THE
      NOTES

     

    Section
      2.01. Form.
      (a) The
      Notes shall be designated as the “Thornburg Mortgage Securities Trust
      2007-2 Mortgage
      Backed Notes, Series 2007-2.” Each Class of Notes, together with the Securities
      Administrator’s certificate of authentication, shall be in substantially the
      forms set forth in Exhibits A-1 and A-2 with such appropriate insertions,
      omissions, substitutions and other variations as are required or permitted
      by
      this Indenture, and may have such letters, numbers or other marks of
      identification and such legends or endorsements placed thereon as may,
      consistently herewith, be determined by the officers executing such Notes,
      as
      evidenced by their execution of the Notes. Any portion of the text of any Note
      may be set forth on the reverse thereof, with an appropriate reference thereto
      on the face of the Note.

     

    The
      Definitive Notes and the global certificates (“Global Securities”) representing
      the Book-Entry Notes shall be typewritten, printed, lithographed or engraved
      or
      produced by any combination of these methods (with or without steel engraved
      borders), all as determined by the officers executing such Notes, as evidenced
      by their execution of such Notes.

     

    The
      Notes
      shall be issued as registered Notes. Each Class of Class A Notes, except as
      otherwise provided by supplement to this Indenture, shall be issued in a
      denomination of at least $25,000 in principal amount and any larger denomination
      that is an integral multiple of $1 approved by the Issuer, such approval to
      be
      evidenced by the execution thereof; provided,
      however,
      one
      Note may be issued in an amount less than the minimum denomination. Each Class
      of Privately Offered Notes, except as otherwise provided by supplement to the
      Indenture, shall be issued in a denomination of at least $100,000 in principal
      amount or notional amount (in the case of the Class A-X Notes), as applicable,
      and any larger denomination that is an integral multiple of $1 approved by
      the
      Issuer, such approval to be evidenced by the execution thereof; provided,
      however,
      one Note
      of each Class may be issued in an amount less than the minimum denomination.
      Privately Offered Notes may solely be issued, transferred and exchanged in
      the
      form of Definitive Notes. If the Class A Notes are issuable in whole or in
      part
      as Book-Entry Notes, any such Class A Note may provide that it shall represent
      the aggregate amount of Outstanding Notes of its Class from time to time
      endorsed thereon and may provide that the aggregate amount of Outstanding Notes
      of its Class represented thereby may from time to time be reduced to reflect
      exchanges or increased to reflect the issuance of an additional principal amount
      of Notes of such Class. Any endorsement of a Book-Entry Note to reflect the
      amount, or any increase or decrease in the amount, of Outstanding Notes
      represented thereby shall be made in such manner and by such Person or Persons,
      as shall be specified therein or in the Issuer Order of authentication delivered
      to the Securities Administrator.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Each
      Note
      shall be dated the date of its authentication. The terms of the Notes set forth
      in Exhibit A-1 and A-2 are part of the terms of this Indenture.

     

    Section
      2.02. Execution,
      Authentication and Delivery.
      (i) The
      Notes shall be executed on behalf of the Issuer by any Authorized Officer of
      the
      Owner Trustee. The signature of any such Authorized Officer on the Notes may
      be
      manual or facsimile.

     

    Notes
      bearing the manual or facsimile signature of individuals who were at any time
      Authorized Officers of the Owner Trustee shall bind the Issuer, notwithstanding
      that such individuals or any of them have ceased to hold such offices prior
      to
      the authentication and delivery of such Notes or did not hold such offices
      at
      the date of such Notes.

     

    Subject
      to the satisfaction of the conditions set forth in this Section 2.02, the
      Securities Administrator shall, upon Issuer Order, authenticate and deliver
      the
      Notes for original issue in the initial aggregate principal amounts or notional
      amount with respect to each Class as specified below:

     

    
      	
              Class

            	
              Class
                Principal 

              or
                Notional Amount

            	
               

              Stated
                Maturity Date

            
	
              A-1

            	
              $144,131,000

            	
              June
                2037

            
	
              A-2A

            	
              $559,989,000

            	
              June
                2037

            
	
              A-2B

            	
              $
                62,221,000

            	
              June
                2037

            
	
              A-3A

            	
              $450,249,000

            	
              June
                2037

            
	
              A-3B

            	
              $
                50,027,000

            	
              June
                2037

            
	
              A-X

            	
              $1,266,617,000*

            	
              June
                2037

            
	
              B-1

            	
              $19,041,000

            	
              June
                2037

            
	
              B-2

            	
              $
                9,192,000

            	
              June
                2037

            
	
              B-3

            	
              $
                5,252,000

            	
              June
                2037

            
	
              B-4

            	
              $
                5,909,000

            	
              June
                2037

            
	
              B-5

            	
              $
                4,596,000

            	
              June
                2037

            
	
              B-6

            	
              $
                2,630,886

            	
              June
                2037

            

    

    _________________

    *Notional
      Amount

     

    The
      aggregate Class Principal Amounts (or Class Notional Amount) of such Classes
      of
      Notes outstanding at any time may not exceed such respective
      amounts.

     

    (b)
      Issuance of the Notes shall be conditioned upon receipt by the Indenture Trustee
      or the Securities Administrator, as applicable, of the following:

     

    (i) An
      Issuer
      Order authorizing the execution and authentication of such Notes;

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (ii) All
      of
      the items of Collateral that are to be delivered to the Indenture Trustee or
      the
      Securities Administrator, as provided herein or in the Servicing
      Agreement;

     

    (iii) An
      executed counterpart from each party to each of the Trust Agreement, the
      Indenture, the Administration Agreement and the Sale and Servicing Agreement,
      respectively, and a certified copy of the Certificate of Trust;

     

    (iv) Except
      to
      the extent provided in subsection (c) below, Opinions of Counsel addressed
      to
      the Indenture Trustee to the effect that:

     

    (I) the
      Issuer has been duly formed and is validly existing as a statutory trust under
      the laws of the State of Delaware, and has power, authority and legal right
      to
      execute and deliver this Indenture and the other Operative Agreements to which
      it is a party;

     

    (II) the
      issuance of the Notes has been duly and validly authorized by the
      Issuer;

     

    (III) the
      Notes, when executed and authenticated in accordance with the provisions of
      this
      Indenture and delivered against payment therefor, will be the legal, valid
      and
      binding obligations of the Issuer pursuant to the terms of this Indenture and
      will be entitled to the benefits of this Indenture, and will be enforceable
      in
      accordance with their terms, subject to bankruptcy, insolvency, reorganization,
      arrangement, moratorium, fraudulent or preferential conveyance and other similar
      laws of general application affecting the rights of creditors generally and
      to
      general principles of equity (regardless of whether such enforcement is
      considered in a proceeding in equity or at law); 

     

    (IV) assuming
      due authorization, execution and delivery thereof by the Indenture Trustee,
      this
      Indenture has been duly executed and delivered by Issuer and constitutes the
      legal, valid and binding obligation of the Issuer, enforceable against the
      Issuer in accordance with its terms, subject to bankruptcy, insolvency,
      reorganization, arrangement, moratorium, fraudulent or preferential conveyance
      and other similar laws of general application affecting the rights of creditors
      generally and to general principles of equity (regardless of whether such
      enforcement is considered in a proceeding in equity or at law); 

     

    (V) the
      Issuer is not required to be registered under the Investment Company Act of
      1940, as amended;

     

    (VI) the
      Issuer will not be characterized as a taxable mortgage pool or an association
      (or publicly traded partnership) taxable as a corporation; 

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (VII) the
      provisions of the Indenture are sufficient to create a valid security interest
      in favor of the Indenture Trustee in the Collateral; and

     

    (VIII) this
      Indenture has been duly qualified under the Trust Indenture Act.

     

    (v) An
      Officer’s Certificate of the Depositor on behalf of the Issuer complying with
      the requirements of Section 11.01 and stating that:

     

    (I) the
      Issuer is not in Default under this Indenture and the issuance of the Notes
      will
      not result in any breach of any of the terms, conditions or provisions of,
      or
      constitute a default under, any indenture, mortgage, deed of trust or other
      agreement or instrument to which the Issuer is a party or by which it is bound,
      or any order of any court or administrative agency entered in any proceeding
      to
      which the Issuer is a party or by which it may be bound or to which it may
      be
      subject;

     

    (II) any
      form
      UCC-1 filed or to be filed against the Issuer for the benefit of the Indenture
      Trustee with respect to the Collateral, shall contain a statement that a
      purchaser of a security interest in any Collateral described in such financing
      statement will violate the rights of the Indenture Trustee, as secured party,
      in
      such Collateral;

     

    (III) attached
      thereto are true and correct copies of letters signed by the Rating Agencies
      to
      the effect that each Class of Notes being rated by it has been assigned the
      Required Rating; and

     

    (IV) all
      conditions precedent provided for in this Indenture relating to the
      authentication and delivery of the Notes have been complied with.

     

    (vi) A
      letter
      from each Rating Agency confirming the Required Rating of each Class of Notes
      rated by such Rating Agency.

     

    (c)
      The
      representations and warranties made pursuant to the Officer’s Certificate
      delivered pursuant to subsection (b)(v) above shall survive the discharge of
      this Indenture and may not be waived by any party hereto. The Opinions of
      Counsel to be delivered pursuant to subsection (b)(iv) above may differ from
      the
      Opinions of Counsel described in such subsection so long as such Opinions of
      Counsel so delivered are acceptable to the Rating Agencies and the Securities
      Administrator, which shall be conclusively evidenced by the Securities
      Administrator’s authentication and delivery of the Notes and the Rating
      Agencies’ issuance of their letters pursuant to subsection (b)(vi) above and
      such acceptable opinions shall be deemed to be the Opinions of Counsel required
      pursuant to subsection (b)(iv) above.

     

    (d)
      The
      Notes that are authenticated and delivered by the Securities Administrator
      to or
      upon the order of the Issuer on the Closing Date shall be dated the Closing
      Date. All other Notes that are authenticated after the Closing Date as a result
      of transfer or exchange or for any other purpose under the Indenture shall
      be
      dated the date of their authentication.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    (e)
      No
      Note shall be entitled to any benefit under this Indenture or be valid or
      obligatory for any purpose, unless there appears on such Note a certificate
      of
      authentication substantially in the form provided for herein executed by the
      Securities Administrator by the manual signature of one of its authorized
      signatories, and such certificate upon any Note shall be conclusive evidence,
      and the only evidence, that such Note has been duly authenticated and delivered
      hereunder.

     

    Section
      2.03. Limitations
      on Transfer of the Notes.
      (a)
      Except for a transfer made to TMI or an affiliate of TMI, no Privately Offered
      Note may be offered, sold, delivered or transferred (including, without
      limitation, by pledge or hypothecation) except (i) under Rule 144A under
      the Securities Act (“Rule 144A”) to qualified institutional buyers or “QIBs”
purchasing for their own account or for the account of one or more QIBs, for
      whom they are authorized to act or (ii) to accredited investors or “AIs,” as
      defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act (“Rule
      501(a)”), purchasing for their own account or for the accounts of one or more
      AIs for whom they are authorized to act. Each Privately Offered Note shall
      bear
      a restrictive legend to the foregoing effect substantially in the form of the
      legends on the face of the form of Note at Exhibit A-2. 

     

    (b) Except
      for a transfer made to TMI or an affiliate of TMI, (i) no transfer of a
      Privately Offered Note in the form of a Definitive Note shall be made unless
      the
      Note Registrar shall have received a representation from the transferee of
      such
      Note, acceptable to and in form and substance satisfactory to the Note Registrar
      and the Depositor (such requirement is satisfied only by the Note Registrar’s
      receipt of an investment letter from the transferee substantially in the form
      of
      Exhibit B-1 or Exhibit B-2, as applicable, hereto), to the effect that such
      transferee is not acquiring such Note for, or with the assets of, an employee
      benefit plan or other retirement arrangement that is subject to Section 406
      of
      ERISA or to Section 4975 of the Code or to any substantially similar law
      (“Similar Law”), or any entity deemed to hold the plan assets of the foregoing
      (collectively, “Benefit Plans”), and (ii) no transfer of a Class A Note in the
      form of a Definitive Note shall be made unless the Note Registrar shall have
      received a representation from the transferee of such Note, acceptable to and
      in
      form and substance satisfactory to the Note Registrar and the Depositor (such
      requirement is satisfied only by the Note Registrar’s receipt of a transfer
      affidavit from the transferee substantially in the form of Exhibit C hereto)
      to
      the effect that its acquisition and holding of such Notes for, or with the
      assets of, a Benefit Plan will not result in a non-exempt prohibited transaction
      under Section 406 of ERISA or Section 4975 of the Code which is not covered
      under Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE
      91-38, PTCE 95-60, PTCE 96-23, the non-fiduciary service provider exemption
      under Section 408(b)(17) of ERISA or some other applicable exemption, and will
      not result in a non-exempt violation of any Similar Law.

     

    (c) In
      the
      case of a Class A Note that is a Book-Entry Note, for purposes of clauses (i)
      or
      (ii) of the preceding paragraph, such representations shall be deemed to have
      been made to the Note Registrar by the transferee’s acceptance of such Class A
      Note that is also a Book-Entry Note (or the acceptance by a Note Holder of
      the
      beneficial interest in such Note).

     

    
      
         

      

      
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    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      none of the Indenture Trustee, the Securities Administrator, the Note Registrar,
      the Issuer or the Depositor shall have any liability to any Person for any
      registration of transfer of any Note that is in fact not permitted by this
      Section 2.03(c) or for the Paying Agent making any payments due on such Note
      to
      the Holder thereof or taking any other action with respect to such Holder under
      the provisions of this Indenture so long as such transfer was registered by
      the
      Note Registrar in accordance with the foregoing requirements. In addition,
      none
      of the Indenture Trustee, the Securities Administrator, the Note Registrar
      or
      the Depositor shall be required to monitor, determine or inquire as to
      compliance with the transfer restrictions with respect to any Note in the form
      of a Book-Entry Note, and none of the Indenture Trustee, Securities
      Administrator, the Note Registrar or the Depositor shall have any liability
      for
      transfers of Class A Notes as Book-Entry Notes or any interests therein made
      in
      violation of the restrictions on transfer described in this Section
      2.03(c).

     

    (d) In
      the
      event that a Note is transferred to a Person that does not meet the requirements
      of this Section 2.03, such transfer shall be of no force and effect, shall
      be
      void ab
      initio,
      and
      shall not operate to transfer any rights to such Person, notwithstanding any
      instructions to the contrary to the Issuer, the Note Registrar, the Indenture
      Trustee or any intermediary; and the Paying Agent shall not make any payments
      on
      such Note for as long as such Person is the Holder of such Note.

     

    (e) The
      Note
      Registrar on behalf of the Depositor shall provide to any Holder of a Privately
      Offered Note and any prospective transferee designated by any such Holder,
      information regarding such Privately Offered Note 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 Note without
      registration thereof under the Securities Act pursuant to the registration
      exemption provided by Rule 144A. Each Holder of a Privately Offered Note
      desiring to effect such a transfer shall, and does hereby agree to, indemnify
      the Issuer, the Owner Trustee, the Indenture Trustee, the Note Registrar and
      the
      Depositor against any liability that may result if the transfer is not so exempt
      or is not made in accordance with federal and state securities laws and any
      other restrictions specified in this Section 2.03. 

     

    The
      Note
      Registrar shall cause each Note to contain a legend substantially similar to
      the
      applicable legend provided in Exhibit A-1 or A-2 hereto, as applicable, stating
      that transfer of such Notes is subject to certain restrictions as set forth
      herein. 

     

    Section
      2.04. Registration;
      Registration of Transfer and Exchange.
      The
      Issuer shall cause the Note Registrar to keep a register (the “Note Register”)
      in which, subject to such reasonable regulations as it may prescribe and the
      restrictions on transfers of the Notes set forth herein, the Issuer shall
      provide for the registration of Notes and the registration of transfers of
      Notes. The Securities Administrator initially shall be the “Note Registrar” for
      the purpose of registering Notes and transfers of Notes as herein provided,
      and
      the Indenture Trustee shall have the right to inspect the Note Register at
      all
      reasonable times and to obtain copies thereof, and the Indenture Trustee shall
      have the right to rely upon a certificate executed on behalf of the Note
      Registrar by a Responsible Officer thereof as to the names and addresses of
      the
      Holders of the Notes and the principal amounts and number of such Notes. Upon
      any resignation of any Note Registrar, the Issuer shall promptly appoint a
      successor or, if it elects not to make such an appointment, assume the duties
      of
      Note Registrar.

    
      
         

      

      
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    If
      a
      Person other than the Securities Administrator is appointed by the Issuer as
      Note Registrar, the Issuer will give the Indenture Trustee and the Securities
      Administrator prompt written notice of the appointment of such Note Registrar
      and of the location, and any change in the location, of the Note Register,
      and
      the Indenture Trustee and the Securities Administrator shall have the right
      to
      inspect the Note Register at all reasonable times and to obtain copies thereof,
      and the Indenture Trustee and the Securities Administrator shall have the right
      to rely upon a certificate executed on behalf of the Note Registrar by an
      Executive Officer thereof as to the names and addresses of the Holders of the
      Notes and the principal amounts or notional amounts, as applicable, and number
      of such Notes.

     

    Subject
      to Section 2.03, upon surrender for registration of transfer of any Note at
      the
      office or agency of the Issuer to be maintained as provided in Section 3.02,
      the
      Issuer shall execute, and the Securities Administrator or the Note Registrar
      on
      its behalf shall authenticate and the Noteholder shall be entitled to obtain
      from the Note Registrar on its behalf, in the name of the designated transferee
      or transferees, one or more new Notes of the same Class in any authorized
      denominations, of a like aggregate principal amount or Percentage
      Interest.

     

    At
      the
      option of the Holder, Notes may be exchanged for other Notes of the same Class
      in any authorized denominations, of a like aggregate principal amount or
      Percentage Interest, upon surrender of the Notes to be exchanged at such office
      or agency. Whenever any Notes are so surrendered for exchange, the Issuer shall
      execute, and the Securities Administrator or the Note Registrar on its behalf
      shall authenticate and the Noteholder shall be entitled to obtain from the
      Securities Administrator or the Note Registrar on its behalf, the Notes which
      the Noteholder making the exchange is entitled to receive.

     

    All
      Notes
      issued upon any registration of transfer or exchange of Notes shall be the
      valid
      obligations of the Issuer, evidencing the same debt, and entitled to the same
      benefits under this Indenture, as the Notes surrendered upon such registration
      of transfer or exchange.

     

    Every
      Note presented or surrendered for registration of transfer or exchange shall
      be
      duly endorsed by, or be accompanied by a written instrument of transfer in
      form
      satisfactory to the Note Registrar duly executed by, the Holder thereof or
      such
      Holder’s attorney duly authorized in writing, with such signature guaranteed by
      an “eligible guarantor institution” meeting the requirements of the Note
      Registrar, which requirements include membership or participation in the
      Securities Transfer Agent’s Medallion Program (“STAMP”) or such other “signature
      guarantee program” as may be determined by the Note Registrar in addition to, or
      in substitution for, STAMP.

     

    No
      service charge shall be made to a Holder for any registration of transfer or
      exchange of Notes, but the Issuer or the Note Registrar may require payment
      of a
      sum sufficient to cover any tax or other governmental charge that may be imposed
      in connection with any registration of transfer or exchange of Notes, other
      than
      exchanges pursuant to Section 2.05 or 9.06 not involving any
      transfer.

     

    
      
         

      

      
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    The
      preceding provisions of this Section 2.04 notwithstanding, the Issuer shall
      not
      be required to make and the Note Registrar need not register transfers or
      exchanges of Notes for a period of fifteen (15) days preceding the Payment
      Date
      for any payment with respect to such Note.

     

    Section
      2.05. Mutilated,
      Destroyed, Lost or Stolen Notes.
      If (i)
      any mutilated Note is surrendered to the Note Registrar, or the Note Registrar
      receives evidence to its satisfaction of the destruction, loss or theft of
      any
      Note, and (ii) there is delivered to the Note Registrar such security or
      indemnity as may be required by it to hold the Issuer, the Indenture Trustee
      and
      the Note Registrar harmless, then, in the absence of actual notice to the
      Issuer, the Note Registrar or the Indenture Trustee that such Note has been
      acquired by a bona fide purchaser, and upon certification provided by the Holder
      of such Note that the requirements of Section 8-405 of the Uniform Commercial
      Code are met, the Issuer shall execute, and upon its request the Securities
      Administrator or the Note Registrar on its behalf shall authenticate and
      deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
      or
      stolen Note, a replacement Note of the same Class; provided,
      however,
      that if
      any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
      become or within seven days shall be due and payable, or shall have been called
      pursuant to exercise of the Clean-up Call Right or the Optional Notes Purchase
      Right, instead of issuing a replacement Note, the Issuer may pay such destroyed,
      lost or stolen Note when so due or payable or upon the Redemption Date without
      surrender thereof. If, after the delivery of such replacement Note or payment
      of
      a destroyed, lost or stolen Note pursuant to the proviso to the preceding
      sentence, a bona fide purchaser of the original Note in lieu of which such
      replacement Note was issued presents for payment such original Note, the Issuer
      and the Indenture Trustee or the Note Registrar on its behalf shall be entitled
      to recover such replacement Note (or such payment) from the Person to whom
      it
      was delivered or any Person taking such replacement Note from such Person to
      whom such replacement Note was delivered or any assignee of such Person, except
      a bona fide purchaser, and shall be entitled to recover upon the security or
      indemnity provided therefor to the extent of any loss, damage, cost or expense
      incurred by the Issuer, the Indenture Trustee or the Note Registrar in
      connection therewith.

     

    Upon
      the
      issuance of any replacement Note under this Section, the Issuer, the Indenture
      Trustee or the Note Registrar may require the payment by the Holder of such
      Note
      of a sum sufficient to cover any tax or other governmental charge that may
      be
      imposed in relation thereto and any other reasonable expenses (including the
      fees and expenses of the Indenture Trustee or the Note Registrar) connected
      therewith.

     

    Every
      replacement Note issued pursuant to this Section in replacement of any
      mutilated, destroyed, lost or stolen Note shall constitute an original
      additional contractual obligation of the Issuer, whether or not the mutilated,
      destroyed, lost or stolen Note shall be at any time enforceable by anyone,
      and
      shall be entitled to all the benefits of this Indenture equally and
      proportionately with any and all other Notes duly issued hereunder.

     

    The
      provisions of this Section are exclusive and shall preclude (to the extent
      lawful) all other rights and remedies with respect to the replacement or payment
      of mutilated, destroyed, lost or stolen Notes.

     

    
      
         

      

      
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    Section
      2.06. Persons
      Deemed Owners.
      Prior
      to due presentment for registration of transfer of any Note, the Issuer, the
      Securities Administrator, the Indenture Trustee, the Note Registrar and any
      agent of the Issuer, the Securities Administrator, the Indenture Trustee or
      the
      Note Registrar may treat the Person in whose name any Note is registered (as
      of
      the day of determination) as the owner of such Note for the purpose of receiving
      payments of principal of and interest, if any, on such Note and for all other
      purposes whatsoever, whether or not such Note be overdue, and none of the
      Issuer, the Securities Administrator, the Indenture Trustee or any agent of
      the
      Issuer, the Securities Administrator, the Indenture Trustee or the Note
      Registrar shall be affected by notice to the contrary.

     

    Section
      2.07. Payment
      of Principal and Interest.
      (a)
      Each Class of Notes shall accrue interest at its respective Note Interest Rate
      as set forth in the Sale and Servicing Agreement, and such interest shall be
      payable on each Payment Date, subject to Section 3.01. Interest shall be
      computed on each Class of Class A Notes on the basis of a 360-day year and
      the
      actual number of days elapsed in each Accrual Period and in the case of the
      Privately Offered Notes, based on a 360-day year consisting of twelve (12)
      thirty (30) day months. With respect to each outstanding Class of Class A Notes,
      the Securities Administrator shall determine one-month LIBOR or one-year LIBOR,
      as applicable, for each applicable Accrual Period on the LIBOR Determination
      Date, in accordance with the provisions of the Sale and Servicing Agreement.
      All
      interest payments on each Class of Notes shall be made pro
      rata to
      the
      Noteholders of such Class entitled thereto and as among Classes of Notes shall
      be paid in the order of priority as set forth in Section 5.01 of the Sale and
      Servicing Agreement. Any installment of interest or principal payable on any
      Note shall be paid on the applicable Payment Date to the Person in whose name
      such Note (or one or more Predecessor Notes) is registered on the Record Date
      by
      check mailed first-class postage prepaid to such Person’s address as it appears
      on the Note Register on such Record Date or, upon written request made to the
      Paying Agent at least five Business Days prior to the related Record Date,
      by
      the Holder of a Note by wire transfer in immediately available funds to an
      account specified in the request and at the expense of such Noteholder, except
      that, unless Definitive Notes have been issued pursuant to Section 2.12(b),
      with
      respect to Notes registered on the Record Date in the name of the nominee of
      the
      Clearing Agency (initially, such nominee to be Cede & Co.), payment will be
      made by wire transfer in immediately available funds to the account designated
      by such nominee, except for the final installment of principal payable with
      respect to such Note on a Payment Date or on the applicable Stated Maturity
      Date
      for such Class of Notes (and except for the Clean-Up Call Purchase Price for
      any
      Note called for redemption pursuant to Section 10.01(b) hereof or the Note
      Purchase Price for any Note being purchased pursuant to the Optional Notes
      Purchase Right pursuant to Section 10.01(a) hereof), which shall be payable
      as
      provided below. The funds represented by any such checks returned undelivered
      shall be held in accordance with Section 3.03.

     

    (b) The
      principal amount of the Notes (other than the Class A-X Notes) shall be payable
      in installments on each Payment Date as provided herein and in such Notes,
      subject to Section 3.01. Notwithstanding the foregoing, the entire unpaid
      principal amount of a Class of Notes, together with any unpaid Class A Deferred
      Amounts, shall be due and payable, if not previously paid, on the earlier of
      (i)
      the applicable Stated Maturity Date, (ii) the Clean-Up Call Date, or
      (iii) the date on which an Event of Default shall have occurred and be
      continuing, if the Indenture Trustee or the Majority Priority Class Noteholders
      shall have declared the Notes to be immediately due and payable in the manner
      provided in Section 5.02 hereof. In addition, if the Optional Notes Purchase
      Right is exercised, and the Note Purchase Price in connection therewith is
      provided to the Securities Administrator in accordance with Section 10.01(a)
      hereof, the then Holder of the Notes shall also receive its proportionate share
      of the Note Purchase Price as provided in Section 10.03 hereof.

     

    
      
         

      

      
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    (c) All
      principal payments on each Class of Notes (other than the Class A-X Notes)
      shall
      be made pro
      rata
      to the
      Noteholders of such Class entitled thereto based on their respective Note
      Principal Amounts immediately prior to that date and as among Classes of Notes
      shall be paid in the order of priority set forth in Section 5.01 of the Sale
      and
      Servicing Agreement. The Paying Agent shall notify the Person in whose name
      a
      Note is registered at the close of business on the Record Date preceding the
      Payment Date on which the Issuer expects that the final installment of principal
      of and interest on such Note will be paid. Such notice shall be mailed or
      transmitted by facsimile no later than five Business Days prior to such final
      Payment Date and shall specify that such final installment will be payable
      only
      upon presentation and surrender of such Note and shall specify the place where
      such Note may be presented and surrendered for payment of such installment.
      Notices in connection with redemptions of Notes or the exercise of the Optional
      Notes Purchase Right shall be mailed to Noteholders as provided in Section
      10.02.

     

    Section
      2.08. Cancellation.
      All
      Notes surrendered for payment, registration of transfer, exchange or redemption
      shall be delivered to the Note Registrar and shall be promptly cancelled by
      the
      Note Registrar. The Issuer may at any time deliver to the Note Registrar for
      cancellation any Notes previously authenticated and delivered hereunder which
      the Issuer may have acquired in any manner whatsoever, and all Notes so
      delivered shall be promptly cancelled by the Note Registrar. No Notes shall
      be
      authenticated in lieu of or in exchange for any Notes cancelled as provided
      in
      this Section, except as expressly permitted by this Indenture. All cancelled
      Notes may be held or disposed of by the Note Registrar in accordance with its
      standard retention or disposal policy as in effect at the time unless the Issuer
      shall direct by an Issuer Order that they be destroyed or returned to it;
provided,
      that
      such Issuer Order is timely and the Notes have not been previously disposed
      of
      by the Note Registrar.

     

    Section
      2.09. Release
      of Collateral.
      (a)
      Except as otherwise provided in subsection (b) of this Section and the other
      Operative Agreements, the Indenture Trustee shall release property from the
      lien
      of this Indenture only upon receipt by it of an Issuer Request accompanied
      by
      (i) an Officer’s Certificate, (ii) an Opinion of Counsel, (iii) certificates in
      accordance with TIA Sections 314(c) and (d)(1), and (iv)(A) Independent
      Certificates in accordance with TIA Sections 314(c) and 314(d)(1) or (B) an
      Opinion of Counsel in lieu of such Independent Certificates to the effect that
      the TIA does not require any such Independent Certificates; provided
      that no
      such Independent Certificates or Opinion of Counsel in lieu of such Independent
      Certificates shall be necessary in respect of property released from the lien
      of
      the Indenture in accordance with the provisions hereof if such property consists
      solely of cash. 

     

    (a) A
      Servicer (or if such Servicer does not do so, the Master Servicer), on behalf
      of
      the Issuer, shall be entitled to obtain a release from the lien of this
      Indenture for any Mortgage Loan and the related Mortgaged Property at any time
      (i) after a payment by the Seller, the Initial Seller or TMI of the Purchase
      Price of the Mortgage Loan, (ii) after a Qualified Substitute Mortgage Loan
      is
      substituted for such Mortgage Loan and payment of the Substitution Amount,
      if
      any, has been received by the Issuer, (iii) after liquidation of the Mortgage
      Loan in accordance with the Sale and Servicing Agreement and the deposit of
      all
      Liquidation Proceeds, Condemnation Proceeds and Insurance Proceeds in the
      Collection Account, (iv) upon the termination of a Mortgage Loan (due to, among
      other causes, a prepayment in full of the Mortgage Loan and sale or other
      disposition of the related Mortgaged Property), or (v) as contemplated by
      Article III of the Sale and Servicing Agreement. The Indenture Trustee
      shall release any such Collateral upon a request to release executed by the
      Master Servicer or a Servicer, as applicable, and an Officer’s Certificate to
      the effect that the requirements for release have been met.

     

    
      
         

      

      
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    (b) The
      Indenture Trustee shall, if requested by a Servicer or the Master Servicer,
      temporarily release or cause the Custodian temporarily to release to such party
      the Mortgage File pursuant to the provisions of Section 3.07 of the Sale and
      Servicing Agreement.

     

    Section
      2.10. Book-Entry
      Notes.
      Each
      Class of Class A Notes will be issued in the form of typewritten Notes or Global
      Securities representing Book-Entry Notes, to be delivered to the Note Registrar,
      as custodian for the initial Clearing Agency, by, or on behalf of, the Issuer.
      The Book-Entry Notes shall be registered initially on the Note Register in
      the
      name of Cede & Co., the nominee of the initial Clearing Agency, and no Owner
      of Book-Entry Notes thereof will receive a Definitive Note representing such
      Note Owner’s interest in such Book-Entry Note, except as provided in Section
      2.12. Unless and until definitive, fully registered Notes (the “Definitive
      Notes”) have been issued to such Note Owners of Book-Entry Notes pursuant to
      Section 2.12:

     

    (i) the
      provisions of this Section shall be in full force and effect;

     

    (ii) the
      Note
      Registrar, the Indenture Trustee and the Securities Administrator shall be
      entitled to deal with the Clearing Agency for all purposes of this Indenture
      (including the payment of principal of and interest on the Book-Entry Notes
      and
      the giving of instructions or directions hereunder) as the sole holder of the
      Book-Entry Notes, and shall have no obligation to the Owners of Book-Entry
      Notes;

     

    (iii) to
      the
      extent that the provisions of this Section conflict with any other provisions
      of
      this Indenture, the provisions of this Section shall control;

     

    (iv) the
      rights of Owners of Book-Entry Notes shall be exercised only through the
      Clearing Agency and shall be limited to those established by law and agreements
      between such Owners of Book-Entry Notes and the Clearing Agency and/or the
      Clearing Agency Participants pursuant to the Note Depository Agreement. Unless
      and until Definitive Notes are issued to Holders of Class A Notes, pursuant
      to
      Section 2.12, neither the Indenture Trustee nor the Note Registrar shall
      register any transfer of a beneficial interest in a Book-Entry Note; and the
      initial Clearing Agency will make book-entry transfers among the Clearing Agency
      Participants and receive and transmit payments of principal of and interest
      on
      the Book-Entry Notes to such Clearing Agency Participants; and

     

    (v) whenever
      this Indenture requires or permits actions to be taken based upon instructions
      or directions of Holders of Class A Notes evidencing a specified percentage
      of
      the Outstanding Balance of the Notes (or the Priority Class Notes), the Clearing
      Agency shall be deemed to represent such percentage only to the extent that
      it
      has received instructions to such effect from Owners of Book-Entry Notes and/or
      Clearing Agency Participants owning or representing, respectively, such required
      percentage of the beneficial interest in the Book-Entry Notes and has delivered
      such instructions to the Note Registrar.

     

    
      
         

      

      
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    Section
      2.11. Notices
      to Clearing Agency.
      Whenever a notice or other communication to the Noteholders is required under
      this Indenture, unless and until Definitive Notes shall have been issued to
      such
      Owners of Book-Entry Notes pursuant to Section 2.12, the Note Registrar shall
      give all such notices and communications specified herein to be given to Owners
      of Book-Entry Notes to the Clearing Agency, and shall have no obligation to
      such
      Note Owners.

     

    Section
      2.12. Definitive
      Notes.
      (a) The
      Privately Offered Notes shall solely be issued in the form of Definitive Notes
      and shall be registered initially in the Note Register in the name of TMI,
      or
      its designee.

     

    (b) In
      addition, if (i) the Clearing Agency is no longer willing or able to properly
      discharge its responsibilities with respect to Class A Notes held in the form
      of
      Book-Entry Notes and the Issuer is unable to locate a qualified successor or
      (ii) after the occurrence of an Event of Default hereunder, Note Owners of
      the
      Book-Entry Notes representing beneficial interests aggregating at least a
      majority of the Outstanding Balance of the Book-Entry Notes advise the Clearing
      Agency in writing that the continuation of a book-entry system through the
      Clearing Agency is no longer in the best interests of such Note Owners, then
      the
      Clearing Agency shall notify all Owners of Book-Entry Notes and the Note
      Registrar of the occurrence of any such event and of the availability of
      Definitive Notes to Owners of Book-Entry Notes requesting the same. Upon
      surrender to the Note Registrar of the typewritten Notes representing the
      Book-Entry Notes by the Clearing Agency, accompanied by registration
      instructions, the Issuer shall execute and the Securities Administrator shall
      authenticate the Definitive Notes in accordance with the instructions of the
      Clearing Agency. None of the Issuer, the Note Registrar, the Securities
      Administrator or the Indenture Trustee shall be liable for any delay in delivery
      of such instructions and may conclusively rely on, and shall be protected in
      relying on, such instructions. 

     

    (c) Upon
      the
      issuance of Definitive Notes, the Indenture Trustee, the Securities
      Administrator and the Note Registrar shall recognize the Holders of such
      Definitive Notes as Noteholders.

     

    Section
      2.13. Tax
      Treatment.
      The
      Issuer has entered into this Indenture, and the Notes will be issued, with
      the
      intention that, for federal, state and local income, single business and
      franchise tax purposes, the Notes (other than the Privately Offered Notes)
      will
      qualify as indebtedness of the Issuer secured by the Collateral. The Issuer,
      by
      entering into this Indenture, and each Noteholder (other than a Holder of a
      Privately Offered Note), by its acceptance of a Note (and each applicable Note
      Owner by its acceptance of an interest in the related Book-Entry Note), agree
      to
      treat the Notes for federal, state and local income, single business and
      franchise tax purposes as indebtedness of the Issuer.

    
      
         

      

      
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    Section
      2.14. Restrictions
      on Transfer and Retention of Beneficial Ownership Interest in the Privately
      Offered Notes.
      (a)  TMI will be the initial Note Owner of a 100% Percentage Interest
      in each of the Privately Offered Notes and, pursuant to the Trust Agreement,
      the
      initial “Certificateholder” (as such term is defined in the Trust Agreement) of
      a 100% Percentage Interest in the Ownership Certificates. TMI (or any other
      Certificateholder or Holder of the Privately Offered Notes) is hereby prohibited
      from transferring and agrees not to transfer any beneficial ownership interest
      in any Privately Offered Note or the Ownership Certificates, except as provided
      in subsection (b) below.

     

    (b) Any
      sale,
      transfer, pledge or other disposition of any beneficial ownership interest
      in
      (i) any Privately Offered Note may only be effectuated in conjunction with
      a simultaneous sale, transfer, pledge or other disposition of an equal
      Percentage Interest in (A) all other classes of Privately Offered Notes
      then Outstanding and (B) the Ownership Certificates, and (ii) the
      Ownership Certificates may only be effectuated in conjunction with a
      simultaneous sale, transfer, pledge or other disposition of an equal Percentage
      Interest in all classes of the Privately Offered Notes then Outstanding, unless
      in each case the prospective transferee of such beneficial ownership interest
      furnishes to the Note Registrar an Opinion of Counsel concluding that such
      sale,
      transfer, pledge or other disposition will not cause the Trust to become subject
      to federal income tax as a corporation. No sale, transfer, pledge or other
      disposition of any beneficial ownership interest in any Privately Offered Note
      shall be in respect of less than a 10% Percentage Interest in such Privately
      Offered Note. TMI (or such other Holder of the Ownership Certificates) is hereby
      required to notify the Indenture Trustee and the Note Registrar of any sale,
      transfer, pledge or other disposition or retention of the Ownership Certificates
      or any Privately Offered Notes in contravention of these
      restrictions.

     

    (c) In
      connection with any sale, transfer, pledge or other disposition of all or a
      portion of the Privately Offered Notes pursuant to subsection (b) above, the
      transferee shall certify to the Note Registrar, the Indenture Trustee and the
      Securities Administrator in an investment letter substantially in the form
      attached hereto as Exhibit B-1 or Exhibit B-2, as applicable, that such transfer
      has been made in accordance with subsection (b) above and shall agree to
      indemnify the Issuer, the Indenture Trustee, the Securities Administrator,
      the
      Note Registrar and the Depositor against any liability that may result if the
      transfer was made in contravention of subsection (b) above.

     

    (d) If
      any
      purported transferee shall become a Holder in violation of the provisions of
      this Section 2.14, then upon receipt of written notice to the Note Registrar
      and
      the Paying Agent that the registration of transfer of the Privately Offered
      Notes to such Holder was not in fact permitted by this Section, then the
      transfer to that Holder shall be void ab
      initio
      and the
      last preceding Holder that was and that continues to be an eligible Holder
      in
      accordance with the provisions of this Section shall be restored to all rights
      as Holder thereof retroactive to the date of such registration of transfer
      of
      such Privately Offered Notes. The Note Registrar shall be under no liability
      to
      any Person for any registration of transfer of any Privately Offered Note that
      is in fact not permitted by this Section, for making any payment due on any
      such
      Privately Offered Note to the Holder thereof or for taking any other action
      with
      respect to such Holder under the provisions of this Indenture so long as the
      transfer relates to a simultaneous transfer of an equal Percentage Interest
      in
      all Outstanding Classes of Privately Offered Notes and Ownership Certificates
      or
      the Note Registrar receives the Opinion of Counsel described in subsection
      (b)
      above.

     

    
      
         

      

      
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    ARTICLE
      III

     

    COVENANTS

     

    Section
      3.01. Payment
      of Principal and Interest.
      The
      Issuer will duly and punctually pay (or will cause to be duly and punctually
      paid) the principal of and interest on, and any other amounts due in respect
      of,
      the Notes in accordance with the terms of the Notes, the Sale and Servicing
      Agreement and this Indenture. Without limiting the foregoing, unless the Notes
      have been declared due and payable pursuant to Section 5.02 and monies collected
      by the Securities Administrator are being applied in accordance with Section
      5.04(b), subject to and in accordance with Section 8.02(c), the Issuer will
      cause to be distributed all amounts on deposit in the Note Payment Account
      on a
      Payment Date and deposited therein pursuant to the Sale and Servicing Agreement
      for the benefit of the Notes, to the Noteholders. Amounts properly withheld
      under the Code by any Person from a payment to any Noteholder of interest and/or
      principal shall be considered as having been paid by the Issuer to such
      Noteholder for all purposes of this Indenture.

     

    The
      Notes
      shall be non-recourse obligations of the Issuer and shall be limited in right
      of
      payment to amounts available from the Collateral as provided in this Indenture.
      The Issuer shall not otherwise be liable for payments of the Notes, and none
      of
      the owners, agents, officers, directors, employees, trustees or successors
      or
      assigns of the Issuer shall be personally liable for any amounts payable, or
      performance due, under the Notes or this Indenture. If any other provision
      of
      this Indenture shall be deemed to conflict with the provisions of this Section
      3.01, the provisions of this Section 3.01 shall control.

     

    Section
      3.02. Maintenance
      of Office or Agency.
      The
      Note Registrar on behalf of the Issuer will maintain an office or agency where
      Notes may be surrendered for registration of transfer or exchange, and where
      notices and demands to or upon the Issuer in respect of the Notes and this
      Indenture may be served. As of the Closing Date, the Note Registrar designates
      the following office for such purposes: Sixth Street and Marquette Avenue,
      Minneapolis, Minnesota 55479.

     

    Section
      3.03. Money
      for Payments to be Held in Trust.
      As
      provided in Section 8.02, all payments of amounts due and payable with respect
      to any Notes that are to be made from amounts withdrawn from the Note Payment
      Account pursuant to Section 5.01 of the Sale and Servicing Agreement shall
      be
      made on behalf of the Issuer by the Securities Administrator or by another
      Paying Agent, and no amounts so withdrawn from the such account for payments
      of
      Notes shall be paid over to the Issuer except as provided in this
      Section.

     

    On
      or
      before the Business Day preceding each Payment Date, the Issuer shall deposit
      or
      cause to be deposited in the Note Payment Account an aggregate sum sufficient
      to
      pay the amounts then becoming due under the Notes, such sum to be held in trust
      for the benefit of the Persons entitled thereto, and (unless the Paying Agent
      is
      the Securities Administrator) shall promptly notify the Securities Administrator
      of its action or failure so to act.

     

    
      
         

      

      
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    The
      Securities Administrator is hereby appointed the initial Paying Agent. Any
      successor Paying Agent shall be appointed by Issuer Order with written notice
      thereof to the Indenture Trustee and the Securities Administrator. Any successor
      Paying Agent appointed by the Issuer shall be a Person that would be eligible
      to
      be the indenture trustee hereunder as provided in Section 6.11. The Issuer
      shall
      not appoint any Paying Agent (other than the Indenture Trustee or the Securities
      Administrator) that is not, at the time of such appointment, a Depository
      Institution. The Issuer shall give prior written notice to the Indenture Trustee
      of the appointment of new or additional paying agents for the Notes, the
      location and any change in the location of any such office or
      agency.

     

    The
      Issuer shall cause each Paying Agent other than the Indenture Trustee or the
      Securities Administrator to execute and deliver to the Indenture Trustee and
      the
      Securities Administrator an instrument in which such Paying Agent shall agree
      with the Indenture Trustee (and if the Indenture Trustee or the Securities
      Administrator acts as Paying Agent, it hereby so agrees), subject to the
      provisions of this Section, that such Paying Agent will:

     

    (i) hold
      all
      sums held by it for the payment of amounts due with respect to the Notes in
      trust for the benefit of the Persons entitled thereto until such sums shall
      be
      paid to such Persons or otherwise disposed of as herein provided and pay such
      sums to such Persons as herein provided and as is provided in the Sale and
      Servicing Agreement;

     

    (ii) give
      the
      Indenture Trustee and Securities Administrator notice of any default by the
      Issuer of which the Paying Agent has actual knowledge in the making of any
      payment required to be made with respect to the Notes;

     

    (iii) at
      any
      time during the continuance of any such default, upon the written request of
      the
      Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held
      in
      trust by such Paying Agent;

     

    (iv) immediately
      resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums
      held by it in trust for the payment of Notes if at any time it ceases to meet
      the standards required to be met by a Paying Agent at the time of its
      appointment; and

     

    (v) comply
      with all requirements of the Code with respect to the withholding from any
      payments made by it on any Notes of any applicable withholding taxes imposed
      thereon and with respect to any applicable reporting requirements in connection
      therewith; provided,
      however,
      that
      with respect to reporting requirements applicable to original issue discount,
      the accrual of market discount or the amortization of premium on the Notes,
      the
      Securities Administrator shall have first provided the calculations pertaining
      thereto and the amount of any resulting withholding taxes to the Paying
      Agent.

     

    The
      Issuer may at any time, for the purpose of obtaining the satisfaction and
      discharge of this Indenture or for any other purpose, by Issuer Order direct
      any
      Paying Agent to pay to the Securities Administrator all sums held in trust
      by
      such Paying Agent, such sums to be held by the Securities Administrator upon
      the
      same trusts as those upon which the sums were held by such Paying Agent; and
      upon such payment by any Paying Agent to the Securities Administrator, such
      Paying Agent shall be released from all further liability with respect to such
      money.

     

    
      
         

      

      
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    Subject
      to applicable laws with respect to escheat of funds, any money held by the
      Securities Administrator or any Paying Agent in trust for the payment of any
      amount due with respect to any Note and remaining unclaimed for two years after
      such amount has become due and payable shall be discharged from such trust
      and
      be paid to the Issuer on Issuer Request; and the Holder of such Note shall
      thereafter, as an unsecured general creditor, look only to the Issuer for
      payment thereof (but only to the extent of the amounts so paid to the Issuer),
      and all liability of the Indenture Trustee, the Securities Administrator or
      such
      Paying Agent with respect to such trust money shall thereupon cease;
provided,
      however,
      that
      the Paying Agent, before being required to make any such repayment, shall at
      the
      expense and direction of the Issuer cause to be published once, in a newspaper
      published in the English language, customarily published on each Business Day
      and of general circulation in The City of New York (including, but not limited
      to, The
      Bond Buyer),
      notice
      that such money remains unclaimed and that, after a date specified therein,
      which shall not be less than 30 days from the date of such publication, any
      unclaimed balance of such money then remaining will be repaid to the Issuer.
      The
      Indenture Trustee, the Securities Administrator or Paying Agent shall also
      adopt
      and employ, at the expense and direction of the Issuer, any other reasonable
      means of notification of such repayment (including, but not limited to, mailing
      notice of such repayment to Holders whose Notes have been called but have not
      been surrendered for redemption or whose right to or interest in moneys due
      and
      payable but not claimed is determinable from the records of the Indenture
      Trustee, the Securities Administrator or of any Paying Agent, at the last
      address of record for each such Holder).

     

    Section
      3.04. Existence.
      (a) The
      Issuer will keep in full effect its existence, rights and franchises as a
      statutory trust under the laws of the State of Delaware (unless it becomes,
      or
      any successor Issuer hereunder is or becomes, organized under the laws of any
      other State or of the United States of America, in which case the Issuer will
      keep in full effect its existence, rights and franchises under the laws of
      such
      other jurisdiction) and will obtain and preserve its qualification to do
      business in each jurisdiction in which such qualification is or shall be
      necessary to protect the validity and enforceability of this Indenture, the
      Notes, the Collateral and each other instrument or agreement included in the
      Collateral.

     

    (b) Any
      successor to the Owner Trustee appointed pursuant to Section 9.03 of the Trust
      Agreement shall be the successor Owner Trustee under this Indenture without
      the
      execution or filing of any paper, instrument or further act to be done on the
      part of the parties hereto.

     

    (c) Upon
      any
      consolidation or merger of or other succession to the Owner Trustee, the Person
      succeeding to the Owner Trustee under the Trust Agreement may exercise every
      right and power of the Owner Trustee under this Indenture with the same effect
      as if such Person had been named as the Owner Trustee herein.

     

    Section
      3.05. Protection
      of Collateral.
      The
      Issuer will from time to time execute, deliver and file all such supplements
      and
      amendments hereto and all such financing statements, continuation statements,
      instruments of further assurance and other instruments solely at the expense
      of
      the Issuer, and will take such other action necessary or advisable
      to:

    
      
         

      

      
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    (i) provide
      further assurances with respect to the grant of all or any portion of the
      Collateral;

     

    (ii) maintain
      or preserve the lien and security interest (and the priority thereof) of this
      Indenture or carry out more effectively the purposes hereof;

     

    (iii) perfect,
      publish notice of or protect the validity of any Grant made or to be made by
      this Indenture;

     

    (iv) enforce
      any rights with respect to the Collateral; or

     

    (v) preserve
      and defend title to the Collateral and the rights of the Indenture Trustee
      and
      the Noteholders in such Collateral against the claims of all Persons and
      parties.

     

    The
      Issuer hereby designates the Securities Administrator, its agent and
      attorney-in-fact to execute any financing statement, continuation statement
      or
      other instrument provided to the Securities Administrator by the Depositor
      and
      required to be executed pursuant to this Section 3.05.

     

    Section
      3.06. Opinions
      as to Collateral.
      On the
      Closing Date, the Issuer shall furnish to the Indenture Trustee an Opinion
      of
      Counsel to the effect that either, in the opinion of such counsel, such action
      has been taken with respect to the recording and filing of this Indenture,
      any
      indentures supplemental hereto, and any other requisite documents, and with
      respect to the execution and filing of any financing statements and continuation
      statements, as are necessary to make effective the lien and security interest
      of
      this Indenture, or stating that, in the opinion of such counsel, no such action
      is necessary to make such lien and security interest effective. In addition
      to
      any other requirements under the Trust Indenture Act, the Issuer shall furnish
      to the Securities Administrator, at least once every two years and six months
      after the Closing Date, an Opinion of Counsel to the effect that either, in
      the
      opinion of such counsel, such action has been taken with respect to the
      recording, filing, refilling, re-recording and refilling of this Indenture
      as is
      necessary to maintain the lien of this Indenture, or stating that, in the
      opinion of such counsel, no such action is necessary to maintain such
      lien.

     

    Section
      3.07. Performance
      of Obligations.
      (a) The
      Issuer will not take any action and will use its best efforts not to permit
      any
      action to be taken by others that would release any Person from any of such
      Person’s material covenants or obligations under any instrument or agreement
      included in the Collateral or that would result in the amendment, hypothecation,
      subordination, termination or discharge of, or impair the validity or
      effectiveness of, any such instrument or agreement, except as expressly provided
      in this Indenture, the Sale and Servicing Agreement or such other instrument
      or
      agreement.

     

    (b) The
      Issuer may contract with or otherwise obtain the assistance of other Persons
      (including, without limitation, the Administrator or the Depositor under the
      Administration Agreement) to assist it in performing its duties under this
      Indenture, and any performance of such duties by a Person identified to the
      Securities Administrator in an Officer’s Certificate of the Issuer shall be
      deemed to be action taken by the Issuer. Initially, the Issuer has contracted
      with the Securities Administrator and the Depositor pursuant to the
      Administration Agreement to assist the Issuer in performing its duties under
      this Indenture.

     

    
      
         

      

      
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    (c) The
      Issuer will punctually perform and observe all of its obligations and agreements
      contained in this Indenture, the other Operative Agreements to which it is
      a
      party and in the instruments and agreements included in the Collateral,
      including but not limited to filing or causing to be filed all financing
      statements and continuation statements required to be filed by the terms of
      this
      Indenture and the Sale and Servicing Agreement in accordance with and within
      the
      time periods provided for herein and therein and recording or causing to be
      recorded all Mortgages, Assignments of Mortgage, all intervening Assignments
      of
      Mortgage and all assumption and modification agreements required to be recorded
      by the terms of the Sale and Servicing Agreement, in accordance with and within
      the time periods provided for in this Indenture and/or the Sale and Servicing
      Agreement, as applicable. Except as otherwise expressly provided therein, the
      Issuer shall not waive, amend, modify, supplement or terminate any Operative
      Agreement or any provision thereof without the consent of the Indenture Trustee
      and the Holders of a majority of the Outstanding Balance of the
      Notes.

     

    (d) If
      a
      responsible officer of the Owner Trustee shall have written notice or actual
      knowledge of the occurrence of an Event of Default under the Sale and Servicing
      Agreement, the Issuer shall promptly notify the Indenture Trustee and the
      Securities Administrator and each Rating Agency thereof, and shall specify
      in
      such notice the actions, if any, the Issuer is taking with respect to such
      default.

     

    (e) As
      promptly as possible after the giving of notice of termination to the Master
      Servicer of the Master Servicer’s rights and powers pursuant to Section 7.01 of
      the Sale and Servicing Agreement, the Indenture Trustee shall proceed in
      accordance with Sections 7.01 and 7.02 of the Sale and Servicing Agreement
      

     

    (f) Without
      derogating from the absolute nature of the assignment granted to the Indenture
      Trustee under this Indenture or the rights of the Indenture Trustee hereunder,
      the Issuer agrees (i) that it will not, without the prior written consent of
      the
      Indenture Trustee and the Securities Administrator or the Holders of at least
      a
      majority in Outstanding Balance or Percentage Interest of the Noteholders
      affected thereby, amend, modify, waive, supplement, terminate or surrender,
      or
      agree to any amendment, modification, supplement, termination, waiver or
      surrender of, the terms of any Collateral or the Operative Agreements (except
      to
      the extent otherwise provided in any such Operative Agreement), or waive timely
      performance or observance by any of the Securities Administrator, the Master
      Servicer or the Depositor of its respective duties under the Sale and Servicing
      Agreement; and (ii) that any such amendment shall not (A) increase or reduce
      in
      any manner the amount of, or accelerate or delay the timing of, payments that
      are required to be made for the benefit of the Noteholders or (B) reduce the
      aforesaid percentage of the Notes that is required to consent to any such
      amendment, without the consent of the Holders of all the Outstanding Notes
      affected thereby. If any such amendment, modification, supplement or waiver
      shall be so consented to by the Indenture Trustee or such Holders, the Issuer
      agrees, promptly following a request by the Indenture Trustee to do so, to
      execute and deliver, in its own name and at its own expense, such agreements,
      instruments, consents and other documents as the Securities Administrator may
      deem necessary or appropriate in the circumstances.

     

    
      
         

      

      
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    Section
      3.08. Negative
      Covenants.
      So long
      as any Notes are Outstanding, the Issuer shall not:

     

    (i) except
      as
      expressly permitted by this Indenture, the Trust Agreement, the Mortgage Loan
      Purchase Agreements or the Sale and Servicing Agreement, sell, transfer,
      exchange or otherwise dispose of any of the properties or assets of the Issuer,
      including those included in the Collateral, unless directed to do so by the
      Securities Administrator;

     

    (ii) claim
      any
      credit on, or make any deduction from the principal, interest or other amounts
      payable in respect of, the Notes (other than amounts properly withheld from
      such
      payments under the Code) or assert any claim against any present or former
      Noteholder by reason of the payment of the taxes levied or assessed upon any
      part of the Collateral;

     

    (iii) engage
      in
      any business or activity other than as permitted by the Trust Agreement or
      the
      Sale and Servicing Agreement or other than in connection with, or relating
      to,
      the issuance of Notes pursuant to this Indenture, or take any action under
      Section 5.06 of the Trust Agreement that requires prior written consent of
      the
      Noteholders without such consent;

     

    (iv) (A)
      permit the validity or effectiveness of this Indenture to be impaired, or permit
      the lien of this Indenture to be amended, hypothecated, subordinated, terminated
      or discharged, or permit any Person to be released from any covenants or
      obligations with respect to the Notes under this Indenture except as may be
      expressly permitted hereby, (B) permit any lien, charge, excise, claim, security
      interest, mortgage or other encumbrance (other than the lien of this Indenture)
      to be created on or extend to or otherwise arise upon or burden the Collateral
      or any part thereof or any interest therein or the proceeds thereof (other
      than
      tax liens, mechanics’ liens and other liens that arise by operation of law, in
      each case with respect to any Collateral and arising solely as a result of
      an
      action or omission of a borrower or as otherwise permitted in the Sale and
      Servicing Agreement) or (C) permit the lien of this Indenture not to constitute
      a valid first priority (other than with respect to any such tax, mechanics’ or
      other lien or as otherwise permitted in the Sale and Servicing Agreement)
      security interest in the Collateral;

     

    (v) remove
      the Securities Administrator without cause unless the Rating Agency Condition
      shall have been satisfied in connection with such removal; or

     

    (vi) take
      any
      action or fail to take any action that would result in an imposition of tax
      on
      the Issuer.

     

    Section
      3.09. Annual
      Statement as to Compliance.
      So long
      as the Notes are outstanding, the Issuer will deliver to the Securities
      Administrator, within 120 days after the end of each fiscal year of the Issuer
      (commencing with the fiscal year 2007), an Officer’s Certificate stating, as to
      the Authorized Officer signing such Officer’s Certificate, that:

     

    (i) a
      review
      of the activities of the Issuer during such year and of its performance under
      this Indenture has been made under such Authorized Officer’s supervision;
      and

     

    
      
         

      

      
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    (ii) to
      the
      best of such Authorized Officer’s knowledge, based on such review, the Issuer
      has complied with all conditions and covenants under this Indenture throughout
      such year or, if there has been a default in its compliance with any such
      condition or covenant, specifying each such default known to such Authorized
      Officer and the nature and status thereof.

     

    Section
      3.10. Treatment
      of Notes as Debt for Tax Purposes.
      The
      Issuer shall, and shall cause the Securities Administrator and the Indenture
      Trustee to, treat the Notes (other than the Privately Offered Notes) as
      indebtedness for all federal, state and local tax purposes (except that any
      Class A Note held by a person that, for federal income tax purposes, owns or
      is
      treated as owning a 100% Percentage Interest of the Ownership Certificates
      shall
      not be treated as outstanding indebtedness for such purposes).

     

    Section
      3.11. No
      Other Business.
      The
      Issuer shall not engage in any business other than financing, purchasing,
      owning, selling and managing the Collateral in the manner contemplated by this
      Indenture and the other Operative Agreements and activities incidental
      thereto.

     

    Section
      3.12. No
      Borrowing.
      The
      Issuer shall not issue, incur, assume, guarantee or otherwise become liable,
      directly or indirectly, for any indebtedness other than the Notes.

     

    Section
      3.13. Guarantees,
      Loans, Advances and Other Liabilities.
      Except
      as contemplated by the Sale and Servicing Agreement or this Indenture, the
      Issuer shall not make any loan or advance or credit to, or guarantee (directly
      or indirectly or by an instrument having the effect of assuring another’s
      payment or performance on any obligation or capability of so doing or
      otherwise), endorse or otherwise become contingently liable, directly or
      indirectly, in connection with the obligations, stocks or dividends of, or
      own,
      purchase, repurchase or acquire (or agree contingently to do so) any stock,
      obligations, assets or securities of, or any other interest in, or make any
      capital contribution to, any other Person.

     

    Section
      3.14. Capital
      Expenditures.
      The
      Issuer shall not make any expenditure (by long-term or operating lease or
      otherwise) for capital assets (either realty or personalty).

     

    Section
      3.15. Removal
      of Securities Administrator.
      So long
      as any Notes are Outstanding, the Issuer shall not remove the Securities
      Administrator without cause.

     

    Section
      3.16. Restricted
      Payments.
      The
      Issuer shall not, directly or indirectly, (i) pay any dividend or make any
      distribution (by reduction of capital or otherwise), whether in cash, property,
      securities or a combination thereof, to the Owner Trustee or any owner of a
      beneficial interest in the Issuer or otherwise with respect to any ownership
      or
      equity interest or security in or of the Issuer, (ii) redeem, purchase, retire
      or otherwise acquire for value any such ownership or equity interest or security
      or (iii) set aside or otherwise segregate any amounts for any such purpose;
      provided, however,
      the
      Issuer may make, or cause to be made, payments and distributions as contemplated
      by, and to the extent funds are available for such purpose under, this
      Indenture, the Sale and Servicing Agreement, the Trust Agreement or any other
      Operative Agreement. The Issuer will not, directly or indirectly, make payments
      to or cause to be made payments to or distributions from the Trust Accounts
      except in accordance with this Indenture and the other Operative
      Agreements.

    
      
         

      

      
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    Section
      3.17. Notice
      of Events of Default.
      The
      Issuer shall promptly, and in no event more than three Business Days following
      such event, give the Securities Administrator, the Indenture Trustee and each
      Rating Agency written notice of each Event of Default hereunder, and each
      default on the part of the Securities Administrator, the Master Servicer, a
      Servicer or the Depositor of its obligations under the Sale and Servicing
      Agreement, to the extent a responsible officer of the Owner Trustee shall have
      written notice or actual knowledge thereof.

     

    Section
      3.18. Further
      Instruments and Acts.
      Upon
      request of the Indenture Trustee or the Securities Administrator, the Issuer
      will execute and deliver such further instruments and do such further acts
      as
      may be reasonably necessary or proper to carry out more effectively the purpose
      of this Indenture.

     

    Section
      3.19. Covenants
      of the Issuer.
      All
      covenants of the Issuer in this Indenture are covenants of the Issuer and are
      not covenants of the Owner Trustee in its individual capacity. The Owner Trustee
      is, and any successor Owner Trustee under the Trust Agreement will be, executing
      this Indenture on behalf of the Issuer solely as Owner Trustee under the Trust
      Agreement and not in its respective individual capacity, and in no case
      whatsoever shall the Owner Trustee or any such successor Owner Trustee be
      personally liable on, or for any loss in respect of, any of the statements,
      representations, warranties or obligations of the Issuer hereunder, as to all
      of
      which the parties hereto agree to look solely to the property of the
      Issuer.

     

    Section
      3.20. Representations
      and Warranties of the Issuer.
      (a)
      With respect to the Collateral, the Issuer represents and warrants
      that:

     

    (i) This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable Uniform Commercial Code (the “UCC”)) in the Collateral in favor of
      the Indenture Trustee, which security interest is prior to all other liens,
      and
      is enforceable as such against creditors of and purchasers from the
      Issuer;

     

    (ii) The
      Mortgage Notes constitute “instruments” within the meaning of the applicable
      UCC;

     

    (iii) Immediately
      prior to the pledge hereunder, the Issuer owns and has good title to the
      Collateral free and clear of any lien, claim or encumbrance of any
      Person;

     

    (iv) The
      Issuer has received all consents and approvals required by the terms of the
      Collateral to the pledge of the Collateral hereunder to the Indenture
      Trustee;

     

    (v) All
      original executed copies of each Mortgage Note (or a lost note affidavit, where
      applicable) have been or will be delivered to the Indenture Trustee (or its
      custodian), as set forth in the Sale and Servicing Agreement;

     

    (vi) The
      Issuer has received a written acknowledgement from the Indenture Trustee (or
      its
      custodian) that it is holding the Mortgage Loans solely on behalf and for the
      benefit of the Indenture Trustee;

     

    (vii) the
      Issuer has caused or will have caused, within ten days from the Closing Date,
      the filing of all appropriate financing statements in the proper filing office
      in the appropriate jurisdictions under applicable law in order to perfect the
      security interest in the Collateral granted to the Indenture Trustee
      hereunder;

     

    
      
         

      

      
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    (viii) Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, the Issuer has not pledged, assigned, sold, granted a security
      interest in, or otherwise conveyed any of the Collateral. The Issuer has not
      authorized the filing of and is not aware of any financing statements against
      the Issuer that include a description of the collateral covering the Collateral
      other than a financing statement relating to the security interest granted
      to
      the Indenture Trustee hereunder or that has been terminated. The Issuer is
      not
      aware of any judgment or tax lien filings against the Issuer; and

     

    (ix) None
      of
      the Mortgage Notes has any marks or notations indicating that they have been
      pledged, assigned or otherwise conveyed to any Person other than the Indenture
      Trustee.

     

    (b) The
      representations and warranties set forth in this Section 3.20 shall survive
      the
      Closing Date and shall not be waived.

     

    ARTICLE
      IV

     

    SATISFACTION
      AND DISCHARGE

     

    Section
      4.01. Satisfaction
      and Discharge of Indenture.
      This
      Indenture shall cease to be of further effect with respect to the Notes, except
      as to (i) rights of registration of transfer and exchange, (ii) substitution
      of
      mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
      receive payments of principal thereof and interest thereon, (iv) the rights,
      obligations and immunities of the Indenture Trustee hereunder (including the
      rights of the Indenture Trustee under Section 6.07 and the obligations of the
      Paying Agent under Section 3.03 and of the Securities Administrator under
      Section 4.02) and (v) the rights of Noteholders as beneficiaries hereof with
      respect to the property so deposited with the Indenture Trustee or the
      Securities Administrator payable to all or any of them, and the Indenture
      Trustee, on demand of and at the expense of the Issuer, shall execute proper
      instruments acknowledging satisfaction and discharge of this Indenture with
      respect to the Notes, when either (a) the Sale and Servicing Agreement has
      been
      terminated pursuant to Article X thereof or (b)

     

    (I) either

     

    (A) all
      Notes
      theretofore authenticated and delivered (other than (i) Notes that have been
      destroyed, lost or stolen and that have been replaced or paid as provided in
      Section 2.05 and (ii) Notes for whose payment money has theretofore been
      deposited in trust or segregated and held in trust by the Issuer and thereafter
      repaid to the Issuer or discharged from such trust, as provided in Section
      3.03)
      have been delivered to the Securities Administrator for cancellation;
      or

     

    (B) all
      Notes
      not theretofore delivered to the Securities Administrator for
      cancellation

     

    (i) have
      become due and payable,

     

    
      
         

      

      
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    (ii) will
      become due and payable at the applicable Maturity Date within one year,
      or

     

    (iii) are
      to be
      called for redemption within one year under arrangements satisfactory to the
      Securities Administrator for the giving of notice of redemption by the
      Securities Administrator in the name, and at the expense, of the
      Issuer,

     

    and
      the
      Issuer, in the case of (i), (ii) or (iii) above, has irrevocably deposited
      or
      caused to be irrevocably deposited with the Securities Administrator cash or
      direct obligations of or obligations guaranteed by the United States of America
      (which will mature prior to the date such amounts are payable), in trust for
      such purpose, in an amount sufficient to pay and discharge the entire
      indebtedness on such Notes not theretofore delivered to the Securities
      Administrator or the Note Registrar for cancellation when due to the Maturity
      Date or Clean-up Call Date (if the Notes are called for redemption pursuant
      to
      Section 10.01 hereof), as the case may be;

    

    (II) the
      Issuer has paid or caused to be paid all other sums payable hereunder by the
      Issuer;

     

    (III) the
      Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an
      Opinion of Counsel (at the Issuer’s expense) and (if required by the TIA as
      confirmed in the Officer’s Certificate of the Issuer) an Independent Certificate
      from a firm of certified public accountants, each meeting the applicable
      requirements of Section 11.01 hereof and, subject to Section 11.02 hereof,
      each
      stating that all conditions precedent herein provided for relating to the
      satisfaction and discharge of this Indenture with respect to the Notes have
      been
      complied with; and

     

    (IV) the
      Issuer has delivered to each Rating Agency notice of such satisfaction and
      discharge.

     

    The
      Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
      and deliver proper instruments acknowledging satisfaction and discharge of
      this
      Indenture with respect to the Notes, and shall pay, or assign or transfer and
      deliver, to or at the direction of the Issuer, all Collateral held by it after
      satisfaction of the conditions specified in clauses (I)(B), (II) and (III)
      above.

     

    Section
      4.02. Application
      of Trust Money.
      All
      moneys deposited with the Securities Administrator pursuant to Sections 3.03
      and
      4.01 hereof shall be held in trust and applied by it, in accordance with the
      provisions of the Notes and this Indenture, to the payment, either directly
      or
      through any Paying Agent, as the Securities Administrator may determine, to
      the
      Holders of the particular Notes for the payment or redemption of which such
      moneys have been deposited with the Securities Administrator, of all sums due
      and to become due thereon for principal and interest; but such moneys need
      not
      be segregated from other funds except to the extent required herein or in the
      Sale and Servicing Agreement or required by law.

     

    Section
      4.03. Repayment
      of Moneys Held by Paying Agent.
      In
      connection with the satisfaction and discharge of this Indenture with respect
      to
      the Notes, all moneys then held by any Paying Agent other than the Securities
      Administrator under the provisions of this Indenture with respect to such Notes
      shall, upon demand of the Issuer, be paid to the Securities Administrator to
      be
      held and applied according to Section 3.03 and thereupon such Paying Agent
      shall
      be released from all further liability with respect to such
      moneys.

    
      
         

      

      
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    Section
      4.04. Trust
      Money Received by Indenture Trustee.
      If the
      Indenture Trustee receives any moneys in respect of the Collateral (other than
      with respect to any amounts in respect of any payments or reimbursements of
      fees, expenses or indemnity amounts properly owing to the Indenture Trustee
      pursuant to the terms of any of the Operative Agreements), the Indenture Trustee
      shall remit such funds promptly to the Securities Administrator.

    ARTICLE
      V

     

    EVENTS
      OF
      DEFAULT; REMEDIES

     

    Section
      5.01. Events
      of Default.
      (a)  “Event of Default,” wherever used herein, means any one of the
      following events (whatever the reason for such Event of Default and whether
      it
      shall be voluntary or involuntary or be effected by operation of law or pursuant
      to any judgment, decree or order of any court or any order, rule or regulation
      of any administrative or governmental body):

     

    (i) Default
      for one month or more in the payment of any Current Interest on any Class of
      Notes then outstanding when the same becomes due and payable under Section
      5.01
      of the Sale and Servicing Agreement;

     

    (ii) failure
      to pay the entire principal amount of any Note when the same becomes due and
      payable under the Sale and Servicing Agreement or on the applicable Maturity
      Date;

     

    (iii) failure
      to observe or perform any covenant or agreement of the Issuer made in this
      Indenture (other than a covenant or agreement, a default in the observance
      or
      performance of which is elsewhere in this Section specifically dealt with),
      or
      any representation or warranty of the Issuer made in this Indenture or in any
      certificate or other writing delivered pursuant hereto or in connection herewith
      proving to have been incorrect in any material respect as of the time when
      the
      same shall have been made, and such default shall continue or not be cured,
      or
      the circumstance or condition in respect of which such representation or
      warranty was incorrect shall not have been eliminated or otherwise cured, for
      a
      period of 60 days after there shall have been given, by registered or certified
      mail, to the Issuer by the Indenture Trustee or to the Issuer and the Indenture
      Trustee by the Holders of at least 25% of the Outstanding Balance of the Notes,
      a written notice specifying such default or incorrect representation or warranty
      and requiring it to be remedied and stating that such notice is a notice of
      Default hereunder;

     

    (iv) the
      filing of a decree or order for relief by a court having jurisdiction in the
      premises in respect of the Issuer or any substantial part of the Collateral
      in
      an involuntary case under any applicable federal or state bankruptcy, insolvency
      or other similar law now or hereafter in effect, or appointing a receiver,
      liquidator, assignee, custodian, trustee, sequestrator or similar official
      of
      the Issuer or for any substantial part of the Collateral, or ordering the
      winding-up or liquidation of the Issuer’s affairs, and such decree or order
      shall remain unstayed and in effect for a period of 60 consecutive
      days;

     

    
      
         

      

      
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    (v) the
      commencement by the Issuer of a voluntary case under any applicable federal
      or
      state bankruptcy, insolvency or other similar law now or hereafter in effect,
      or
      the consent by the Issuer to the entry of an order for relief in an involuntary
      case under any such law, or the consent by the Issuer to the appointment or
      taking possession by a receiver, liquidator, assignee, custodian, trustee,
      sequestrator or similar official of the Issuer or for any substantial part
      of
      the Collateral, or the making by the Issuer of any general assignment for the
      benefit of creditors, or the failure by the Issuer generally to pay its debts
      as
      such debts become due, or the taking of any action by the Issuer in furtherance
      of any of the foregoing; or

     

    (vi) the
      transfer by any Holder of a beneficial ownership interest in the Ownership
      Certificates and the Privately Offered Notes in contravention of the transfer
      restrictions applicable to the Ownership Certificates and the Privately Offered
      Notes pursuant to Section 2.14, such that the Issuer is subject to federal
      corporate income or similar tax.

     

    (b) The
      Issuer shall deliver to the Indenture Trustee and the Securities Administrator,
      within five days after the occurrence thereof, written notice in the form of
      an
      Officer’s Certificate of any event which with the giving of notice and the lapse
      of time would become an Event of Default under clause (iii), its status and
      what
      action the Issuer is taking or proposes to take with respect thereto. The
      Securities Administrator shall promptly deliver to the Indenture Trustee written
      notice of any Default or Event of Default of which it has actual
      knowledge.

     

    Section
      5.02. Acceleration
      of Maturity; Rescission and Annulment.
      If an
      Event of Default should occur and be continuing of which a Responsible Officer
      of the Indenture Trustee has actual knowledge, then and in every such case
      the
      Indenture Trustee may, or shall, at the direction of the Majority Priority
      Class
      Noteholders, declare all the Notes to be immediately due and payable, by a
      notice in writing to the Issuer (and to the Indenture Trustee if given by
      Noteholders), and upon any such declaration the unpaid principal amount of
      such
      Notes, together with accrued and unpaid interest on the Notes through the date
      of acceleration, shall become immediately due and payable.

     

    At
      any
      time after such declaration of acceleration of maturity has been made and before
      a judgment or decree for payment of the money due has been obtained by the
      Indenture Trustee as provided in this Article V, the Majority Priority Class
      Noteholders, by written notice to the Issuer and the Indenture Trustee, may
      rescind and annul such declaration and its consequences if:

     

    (i) the
      Issuer has paid or deposited with the Securities Administrator a sum sufficient
      to pay:

     

    (I) all
      payments of principal of and interest on all affected Priority Class Notes
      and
      all other amounts that would then be due hereunder or upon such Notes if the
      Event of Default giving rise to such acceleration had not occurred;
      and

     

    
      
         

      

      
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    (II) all
      sums
      paid or advanced by the Indenture Trustee hereunder and the reasonable
      compensation, expenses, disbursements and advances of the Indenture Trustee
      and
      its agents and counsel; and

     

    (ii) all
      Events of Default, other than the nonpayment of the principal of the Notes
      that
      has become due solely by such acceleration, have been cured or waived as
      provided in Section 5.12.

     

    No
      such
      rescission shall affect any subsequent default or impair any right consequent
      thereto.

     

    The
      Holders of Non-Priority Class Notes shall have no right to exercise any
      Noteholders’ rights referred to in this Article V, except to the extent
      expressly provided herein.

     

    Section
      5.03. Collection
      of Indebtedness and Suits for Enforcement by Indenture Trustee.
      (a)  The Issuer covenants that if (i) default is made in the payment
      of any Current Interest on any Note when the same becomes due and payable,
      and
      such default continues for a period of five days, or (ii) default is made in
      the
      payment of the principal amount of any Note when the same becomes due and
      payable on the applicable Maturity Date, the Issuer will, upon demand of the
      Indenture Trustee, pay to the Securities Administrator, for the benefit of
      the
      Holders of the Notes, the whole amount then due and payable on such Notes for
      principal and interest, with interest on the overdue principal and, to the
      extent payment at such rate of interest shall be legally enforceable, on overdue
      installments of interest at the rate borne by such Notes and, in addition
      thereto, pay to the Indenture Trustee such further amount as shall be sufficient
      to cover the costs and expenses of collection, including the reasonable
      compensation, expenses, disbursements and advances of the Indenture Trustee
      and
      its agents and counsel.

     

    (b) In
      case
      the Issuer shall fail forthwith to pay such amounts upon such demand, the
      Indenture Trustee, in its own name and as trustee of an express trust, may,
      and
      shall, at the direction of the Majority Priority Class Noteholders institute
      a
      Proceeding for the collection of the sums so due and unpaid, and may prosecute
      such Proceeding to judgment or final decree, and may enforce the same against
      the Issuer upon such Notes and collect in the manner provided by law out of
      the
      property of the Issuer upon such Notes, wherever situated, the moneys adjudged
      or decreed to be payable.

     

    (c) If
      an
      Event of Default occurs and is continuing, the Indenture Trustee may, in its
      discretion, or shall, at the direction of the Majority Priority Class
      Noteholders, as more particularly provided in Section 5.04, proceed to protect
      and enforce its rights and the rights of the Noteholders, by such appropriate
      Proceedings as the Indenture Trustee shall deem most effective to protect and
      enforce any such rights, whether for the specific enforcement of any covenant
      or
      agreement in this Indenture or in aid of the exercise of any power granted
      herein, or to enforce any other proper remedy or legal or equitable right vested
      in the Indenture Trustee by this Indenture or by law.

     

    (d) In
      case
      there shall be pending, relative to the Issuer or any other obligor upon the
      Notes or any Person having or claiming an ownership interest in the Collateral,
      Proceedings under Title 11 of the United States Code or any other applicable
      federal or state bankruptcy, insolvency or other similar law, or in case a
      receiver, assignee or trustee in bankruptcy or reorganization, or liquidator,
      sequestrator or similar official shall have been appointed for or taken
      possession of the Issuer or its property or such other obligor or Person, or
      in
      case of any other comparable judicial Proceedings relative to the Issuer or
      other obligor upon the Notes, or to the creditors or property of the Issuer
      or
      such other obligor, the Indenture Trustee, irrespective of whether the principal
      of any Notes shall then be due and payable as therein expressed or by
      declaration or otherwise and irrespective of whether the Indenture Trustee
      shall
      have made any demand pursuant to the provisions of this Section, shall be
      entitled and empowered, by intervention in such Proceedings or
      otherwise:

     

    
      
         

      

      
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    (i) to
      file
      and prove a claim or claims for the whole amount of principal and interest
      owing
      and unpaid in respect of the Notes and to file such other papers or documents
      as
      may be necessary or advisable in order to have the claims of the Indenture
      Trustee (including any claim for reasonable compensation to the Indenture
      Trustee and each predecessor Indenture Trustee, and their respective agents,
      attorneys and counsel, and for reimbursement of all expenses and liabilities
      incurred, and all advances made, by the Indenture Trustee and each predecessor
      Indenture Trustee, except as a result of negligence or bad faith) and of the
      Noteholders allowed in such Proceedings;

     

    (ii) unless
      prohibited by applicable law and regulations, to vote on behalf of the Holders
      of Notes in any election of a trustee, a standby trustee or Person performing
      similar functions in any such Proceedings;

     

    (iii) to
      collect and receive any moneys or other property payable or deliverable on
      any
      such claims and to distribute all amounts received with respect to the claims
      of
      the Noteholders and of the Indenture Trustee on their behalf;

     

    (iv) to
      file
      such proofs of claim and other papers or documents as may be necessary or
      advisable in order to have the claims of the Indenture Trustee or the Holders
      of
      Notes allowed in any Proceedings relative to the Issuer, its creditors and
      its
      property; and

     

    (v) to
      participate as a member of any official committee of creditors in the matters
      as
      it deems necessary or advisable;

     

    and
      any
      trustee, receiver, liquidator, custodian or other similar official in any such
      Proceeding is hereby authorized by each of such Noteholders to make payments
      to
      the Securities Administrator and, in such event or in the event that the
      Indenture Trustee shall consent to the making of payments directly to such
      Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient
      to cover reasonable compensation to the Indenture Trustee, each predecessor
      Indenture Trustee and their respective agents, attorneys and counsel, and all
      other expenses and liabilities incurred by it or its agents, and all advances
      made, by the Indenture Trustee and each predecessor Indenture Trustee except
      as
      a result of negligence or bad faith.

    

    (e) Nothing
      herein contained shall be deemed to authorize the Indenture Trustee to authorize
      or consent to or vote for or accept or adopt on behalf of any Noteholder any
      plan of reorganization, arrangement, adjustment or composition affecting the
      Notes or the rights of any Holder thereof or to authorize the Indenture Trustee
      to vote in respect of the claim of any Noteholder in any such proceeding except,
      as aforesaid, to vote for the election of a trustee in bankruptcy or similar
      Person.

     

    
      
         

      

      
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    (f) All
      rights of action and of asserting claims under this Indenture, or under any
      of
      the Notes, may be enforced by the Indenture Trustee without the possession
      of
      any of the Notes or the production thereof in any trial or other Proceedings
      relative thereto, and any such action or Proceedings instituted by the Indenture
      Trustee shall be brought in its own name as trustee of an express trust, and
      any
      recovery of judgment, subject to the payment of the expenses, disbursements
      and
      compensation of the Indenture Trustee, each predecessor Indenture Trustee and
      their respective agents and attorneys, shall be for the ratable benefit of
      the
      Holders of the Notes.

     

    (g) In
      any
      Proceedings brought by the Indenture Trustee (and also any Proceedings involving
      the interpretation of any provision of this Indenture to which the Indenture
      Trustee shall be a party), the Indenture Trustee shall be held to represent
      all
      the Holders of the Notes, and it shall not be necessary to make any Noteholder
      a
      party to any such Proceedings.

     

    Section
      5.04. Remedies;
      Priorities.
      (a) If
      an Event of Default shall have occurred and be continuing of which a Responsible
      Officer of the Indenture Trustee has actual knowledge, the Indenture Trustee
      may, and at the direction of the Majority Priority Class Noteholders shall,
      do
      one or more of the following (subject to Section 5.05):

     

    (i) institute
      Proceedings in its own name (as Indenture Trustee) and as trustee of an express
      trust for the collection of all amounts then payable on the Notes or under
      this
      Indenture with respect thereto, whether by declaration or otherwise, enforce
      any
      judgment obtained and collect from the Issuer and any other obligor upon such
      Notes moneys adjudged due;

     

    (ii) institute
      Proceedings from time to time for the complete or partial foreclosure of this
      Indenture with respect to the Collateral;

     

    (iii) exercise
      any remedies of a secured party under the Uniform Commercial Code and take
      any
      other appropriate action to protect and enforce the rights and remedies of
      the
      Indenture Trustee and the Holders of the Notes; and

     

    (iv) sell
      the
      Collateral or any portion thereof or rights or interest therein, at one or
      more
      public or private sales called and conducted in any manner permitted by
      law;

     

    provided,
      however,
      that
      the Indenture Trustee may not sell or otherwise liquidate any Collateral
      following an Event of Default, other than an Event of Default described in
      Section 5.01(i) or (ii), unless (A) the Holders of all Outstanding Notes consent
      thereto, (B) the proceeds of such sale or liquidation distributable to the
      Noteholders are sufficient to discharge in full all amounts then due and unpaid
      upon such Notes for principal and interest or (C) the Indenture Trustee
      determines that the Collateral will not continue to provide sufficient funds
      for
      the payment of principal of and interest on the Notes as they would have become
      due if the Notes had not been declared due and payable, and the Indenture
      Trustee obtains the consent of Holders of 66-2/3% of the Outstanding Balance
      of
      the Notes. In determining such sufficiency or insufficiency with respect to
      clauses (B) and (C), the Indenture Trustee may, but need not, obtain (at the
      cost of the Issuer) and rely upon an opinion of an Independent investment
      banking or accounting firm of national reputation as to the feasibility of
      such
      proposed action and as to the sufficiency of the Collateral for such
      purpose.

     

    
      
         

      

      
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    (b) If
      the
      Indenture Trustee collects any money or property pursuant to this Article V,
      it
      shall remit such money or property to the Securities Administrator (other than
      amounts owing to it pursuant to clause first
      below),
      and the Securities Administrator shall pay out such money or property in the
      following order:

     

    first:
      in the
      following order, to the Indenture Trustee, for any indemnity expenses, costs
      or
      expenses, including any reasonable out-of-pocket attorneys’ fees and expenses,
      incurred by it in connection with the enforcement of the remedies provided
      for
      in this Article V and for any other unpaid amounts due to the Indenture Trustee
      hereunder or under any other Operative Agreement; to the Custodian, the
      Securities Administrator and the Master Servicer, to the extent of any fees
      and
      expenses due and owing to each of them under any Operative Agreement; and to
      the
      Owner Trustee, to the extent of any fees and expenses due and owing to it
      (including pursuant to Section 7.03 of the Trust Agreement) and for any other
      unpaid amounts due to the Owner Trustee hereunder or under the Sale and
      Servicing Agreement;

     

    second:
      to
      the
      Master Servicer and the Servicers for any Master Servicing Fees or Servicing
      Fees then due and unpaid and any unreimbursed Monthly Advances and other
      servicing advances;

     

    third:
      to
      the
      applicable parties, any other outstanding expenses of the Trust remaining
      unpaid;

     

    fourth:
      to
      the
      Notes, all accrued and unpaid interest thereon and amounts in respect of
      principal paid to the Trust, in each case according to the priorities set forth
      in Section 5.01 of
      the
      Sale and Servicing Agreement; provided,
      however,
      that no
      payments shall be made to the Holders of the Subordinated Notes or the Interest
      Only Notes under this Section 5.04(b) until all remaining amounts of principal
      and accrued and unpaid interest have been paid to the Holders of the Class
      A
      Notes; and

     

    fifth:
      to
      the
      Certificate Paying Agent for any amounts to be distributed to the Holders of
      the
      Ownership Certificates.

     

    The
      Securities Administrator may fix a record date and payment date for any payment
      to Noteholders pursuant to this Section. At least 15 days before such record
      date, the Issuer shall mail to each Noteholder and the Indenture Trustee a
      notice that states the record date, the payment date and the amount to be
      paid.

     

    Section
      5.05. Optional
      Preservation of the Collateral.
      If the
      Notes have been declared to be due and payable under Section 5.02 following
      an
      Event of Default and such declaration and its consequences have not been
      rescinded and annulled, the Indenture Trustee may, but need not, elect to
      maintain possession of the Collateral. It is the desire of the parties hereto
      and the Noteholders that there be at all times sufficient funds for the payment
      of principal of and interest on the Notes, and the Indenture Trustee shall
      take
      such desire into account when determining whether or not to maintain possession
      of the Collateral. In determining whether to maintain possession of the
      Collateral, the Indenture Trustee may, but need not, obtain and rely upon an
      opinion (at the expense of the Issuer) of an Independent investment banking
      or
      accounting firm of national reputation as to the feasibility of such proposed
      action and as to the sufficiency of the Collateral for such
      purpose.

    
      
         

      

      
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    Section
      5.06. Limitation
      of Suits.
      Other
      than as otherwise expressly provided herein, no Holder of any Note shall have
      any right to institute any Proceeding, judicial or otherwise, with respect
      to
      this Indenture, or for the appointment of a receiver or trustee, or for any
      other remedy hereunder, unless:

     

    (i) such
      Holder has previously given written notice to the Indenture Trustee of a
      continuing Event of Default;

     

    (ii) the
      Holders of not less than 25% of the Outstanding Balance of the Priority Class
      Notes have made written request to the Indenture Trustee to institute such
      Proceeding in respect of such Event of Default in its own name as Indenture
      Trustee hereunder;

     

    (iii) such
      Holder or Holders have offered to the Indenture Trustee reasonable indemnity
      against the costs, expenses and liabilities to be incurred in complying with
      such request;

     

    (iv) the
      Indenture Trustee for 60 days after its receipt of such notice, request and
      offer of indemnity has failed to institute such Proceedings; and

     

    (v) no
      direction inconsistent with such written request has been given to the Indenture
      Trustee during such 60-day period by the Holders of a majority of the
      Outstanding Balance of the Notes.

     

    It
      is
      understood and intended that no one or more Holders of Notes shall have any
      right in any manner whatever by virtue of, or by availing of, any provision
      of
      this Indenture to affect, disturb or prejudice the rights of any other Holders
      of Notes or to obtain or to seek to obtain priority or preference over any
      other
      Holders or to enforce any right under this Indenture, except in the manner
      herein provided.

     

    In
      the
      event the Indenture Trustee shall receive conflicting or inconsistent requests
      and indemnity from two or more groups of Holders of Notes, each representing
      less than a majority of the Outstanding Balance of the Notes, the Indenture
      Trustee shall take the action requested by the Holders of the largest percentage
      in Outstanding Balance of the Notes and, if there is no single largest
      percentage in Outstanding Balance of the Notes, in its sole discretion may
      determine what action, if any, shall be taken, notwithstanding any other
      provisions of this Indenture.

     

    Section
      5.07. Unconditional
      Rights of Noteholders To Receive Principal and Interest.
      Notwithstanding any other provisions in this Indenture, the Holder of any Note
      shall have the right, which is absolute and unconditional, to receive payment
      of
      the principal of, interest, if any, and Class A Deferred Amounts, if any, on
      such Note on or after the respective due dates thereof expressed in such Note
      or
      in this Indenture (or, in the case of exercise of a Clean-Up Call Right or
      Optional Notes Purchase Right, on or after the applicable Redemption Date)
      and
      to institute suit for the enforcement of any such payment, and such right shall
      not be impaired without the consent of such Holder.

    
      
         

      

      
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    Section
      5.08. Restoration
      of Rights and Remedies.
      If the
      Indenture Trustee or any Noteholder has instituted any Proceeding to enforce any
      right or remedy under this Indenture and such Proceeding has been discontinued
      or abandoned for any reason or has been determined adversely to the Indenture
      Trustee or to such Noteholder, then and in every such case the Issuer, the
      Indenture Trustee and the Noteholders shall, subject to any determination in
      such Proceeding, be restored severally and respectively to their former
      positions hereunder, and thereafter all rights and remedies of the Indenture
      Trustee and the Noteholders shall continue as though no such Proceeding had
      been
      instituted.

     

    Section
      5.09. Rights
      and Remedies Cumulative.
      No
      right or remedy herein conferred upon or reserved to the Indenture Trustee
      or to
      the Noteholders is intended to be exclusive of any other right or remedy, and
      every right and remedy shall, to the extent permitted by law, be cumulative
      and
      in addition to every other right and remedy given hereunder or now or hereafter
      existing at law or in equity or otherwise. The assertion or employment of any
      right or remedy hereunder, or otherwise, shall not prevent the concurrent
      assertion or employment of any other appropriate right or remedy.

     

    Section
      5.10. Delay
      or Omission Not a Waiver.
      No
      delay or omission of the Indenture Trustee or any Holder of any Note to exercise
      any right or remedy accruing upon any Default or Event of Default shall impair
      any such right or remedy or constitute a waiver of any such Default or Event
      of
      Default or an acquiescence therein. Every right and remedy given by this Article
      V or by law to the Indenture Trustee or to the Noteholders may be exercised
      from
      time to time, and as often as may be deemed expedient, by the Indenture Trustee
      or by the Noteholders, as the case may be.

     

    Section
      5.11. Control
      by Noteholders.
      Except
      as otherwise provided in Section 5.02, the Majority Priority Class Noteholders
      shall have the right to direct the time, method and place of conducting any
      Proceeding for any remedy available to the Indenture Trustee with respect to
      the
      Notes or exercising any trust or power conferred on the Indenture Trustee;
      provided that:

     

    (i) such
      direction shall not be in conflict with any rule of law or with this
      Indenture;

     

    (ii) subject
      to the express terms of Section 5.04, any direction to the Indenture Trustee
      to
      sell or liquidate the Collateral shall be by Holders of Notes representing
      not
      less than 100% of the Outstanding Balance of the Notes;

     

    (iii) if
      the
      conditions set forth in Section 5.05 have been satisfied and the Indenture
      Trustee elects to retain the Collateral pursuant to such Section, then any
      direction to the Indenture Trustee by Holders of Notes representing less than
      100% of the Outstanding Balance of the Notes to sell or liquidate the Collateral
      shall be of no force and effect; and

     

    
      
         

      

      
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    (iv) the
      Indenture Trustee may take any other action deemed proper by the Indenture
      Trustee that is not inconsistent with such direction.

     

    Notwithstanding
      the rights of the Noteholders set forth in this Section, subject to Section
      6.01(g), the Indenture Trustee need not take any action that it determines
      might
      involve it in liability or might materially adversely affect the rights of
      any
      Noteholders not consenting to such action. In the event the Indenture Trustee
      takes any action or follows any direction pursuant to this Indenture, the
      Indenture Trustee shall be entitled to indemnification against any loss or
      expense caused by taking such action or following such direction in accordance
      with Section 6.07.

     

    Section
      5.12. Waiver
      of Past Defaults.
      Prior
      to the declaration of the acceleration of the maturity of the Notes as provided
      in Section 5.02, the Majority Priority Class Noteholders may waive, in writing,
      any past Default or Event of Default and its consequences except a Default
      (a)
      in payment of principal of or interest on any of the Notes or (b) in respect
      of
      a covenant or provision hereof which cannot be modified or amended without
      the
      consent of the Holder of each Note. In the case of any such waiver, the Issuer,
      the Indenture Trustee and the Holders of the Notes shall be restored to their
      former positions and rights hereunder, respectively; but no such waiver shall
      extend to any subsequent or other Default or impair any right consequent
      thereto.

     

    Upon
      any
      such waiver, such Default shall cease to exist and be deemed to have been cured
      and not to have occurred, and any Event of Default arising therefrom shall
      be
      deemed to have been cured and not to have occurred, for every purpose of this
      Indenture; but no such waiver shall extend to any subsequent or other Default
      or
      Event of Default or impair any right consequent thereto.

     

    Section
      5.13. Undertaking
      for Costs.
      All
      parties to this Indenture agree, and each Holder of a Note by such Holder’s
      acceptance thereof shall be deemed to have agreed, that any court may in its
      discretion require, in any suit for the enforcement of any right or remedy
      under
      this Indenture, or in any suit against the Indenture Trustee for any action
      taken, suffered or omitted by it as Indenture Trustee, the filing by any party
      litigant in such suit of an undertaking to pay the costs of such suit, and
      that
      such court may in its discretion assess reasonable costs, including reasonable
      attorneys’ fees, against any party litigant in such suit, having due regard to
      the merits and good faith of the claims or defenses made by such party litigant;
      but the provisions of this Section shall not apply to (a) any suit instituted
      by
      the Indenture Trustee, (b) any suit instituted by any Noteholder, or group
      of
      Noteholders, in each case holding in the aggregate more than 10% of the
      Outstanding Balance or Percentage Interest of the Notes or (c) any suit
      instituted by any Noteholder for the enforcement of the payment of principal
      of
      or interest on any Note on or after the respective due dates expressed in such
      Note and in this Indenture (or, in the case of exercise of a Clean-Up Call
      Right
      or Optional Notes Purchase Right, on or after the applicable Redemption
      Date).

     

    Section
      5.14. Waiver
      of Stay or Extension Laws.
      The
      Issuer covenants (to the extent that it may lawfully do so) that it will not
      at
      any time insist upon, or plead or in any manner whatsoever claim or take the
      benefit or advantage of, any stay or extension law wherever enacted, now or
      at
      any time hereafter in force, that may affect the covenants or the performance
      of
      this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
      expressly waives all benefit or advantage of any such law, and covenants that
      it
      will not hinder, delay or impede the execution of any power herein granted
      to
      the Indenture Trustee, but will suffer and permit the execution of every such
      power as though no such law had been enacted.

    
      
         

      

      
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    Section
      5.15. Action
      on Notes.
      The
      Indenture Trustee’s right to seek and recover judgment on the Notes or under
      this Indenture shall not be affected by the seeking, obtaining or application
      of
      any other relief under or with respect to this Indenture. Neither the lien
      of
      this Indenture nor any rights or remedies of the Indenture Trustee or the
      Noteholders shall be impaired by the recovery of any judgment by the Indenture
      Trustee against the Issuer or by the levy of any execution under such judgment
      upon any portion of the Collateral or upon any of the assets of the Issuer.
      Any
      money or property collected by the Indenture Trustee and remitted to the
      Securities Administrator shall be applied by the Securities Administrator in
      accordance with Section 5.04(b).

     

    Section
      5.16. Performance
      and Enforcement of Certain Obligations.
      (a)
      Promptly following a request from the Indenture Trustee to do so and at the
      Issuer’s expense, the Issuer shall take all such lawful action as the Indenture
      Trustee may request to compel or secure the performance and observance by the
      Seller, the Initial Seller, the Depositor, the Securities Administrator, the
      Master Servicer or the Servicer, as applicable, of each of their obligations
      to
      the Issuer under or in connection with the Mortgage Loan Purchase Agreements
      and
      the Sale and Servicing Agreement, and to exercise any and all rights, remedies,
      powers and privileges lawfully available to the Issuer under or in connection
      with the Sale and Servicing Agreement to the extent and in the manner directed
      by the Indenture Trustee, including the transmission of notices of default
      on
      the part of the Seller, the Initial Seller, the Depositor, the Securities
      Administrator, the Master Servicer or a Servicer, as applicable, under the
      Mortgage Loan Purchase Agreements and Sale and Servicing Agreement and the
      institution of legal or administrative actions or proceedings to compel or
      secure performance by the Seller, the Initial Seller, the Depositor, the
      Securities Administrator, the Master Servicer or a Servicer, as applicable,
      of
      each of their applicable obligations under the Mortgage Loan Purchase Agreements
      and the Sale and Servicing Agreement. 

     

    (b) 
      If an
      Event of Default of which a Responsible Officer of the Indenture Trustee has
      actual knowledge has occurred and is continuing, the Indenture Trustee may,
      and
      at the direction (which direction shall be in writing or by telephone (confirmed
      in writing promptly thereafter)) of the Majority Priority Class Noteholders
      shall, exercise all rights, remedies, powers, privileges and claims of the
      Issuer against the Depositor, the Securities Administrator, the Master Servicer
      or a Servicer under or in connection with the Sale and Servicing Agreement
      or
      the Seller or Initial Seller under or in connection with the Mortgage Loan
      Purchase Agreements, including the right or power to take any action to compel
      or secure performance or observance by the Seller, the Initial Seller, the
      Depositor, the Securities Administrator, the Master Servicer or a Servicer,
      of
      each of their respective obligations to the Issuer thereunder and to give any
      consent, request, notice, direction, approval, extension or waiver under the
      Sale and Servicing Agreement, and any right of the Issuer to take such action
      shall be suspended.

     

    
      
         

      

      
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    ARTICLE
      VI

     

    THE
      INDENTURE TRUSTEE

     

    Section
      6.01. Duties
      of Indenture Trustee.
      (a) If
      an Event of Default has occurred and is continuing, the Indenture Trustee shall
      exercise the rights and powers vested in it by this Indenture and use the same
      degree of care and skill in their exercise as a prudent person would exercise
      or
      use under the circumstances in the conduct of such person’s own
      affairs.

     

    (b) Except
      during the continuance of an Event of Default:

     

    (i) the
      Indenture Trustee undertakes to perform such duties and only such duties as
      are
      specifically set forth in this Indenture on its part to be performed and shall
      not be liable except for the performance of such duties and obligations as
      are
      specifically set forth in this Indenture and no implied covenants or obligations
      shall be read into this Indenture against the Indenture Trustee;
      and

     

    (ii) in
      the
      absence of bad faith on its part, the Indenture Trustee may conclusively rely,
      as to the truth of the statements and the correctness of the opinions expressed
      therein, upon certificates or opinions furnished to the Indenture Trustee and
      on
      their face conforming to the requirements of this Indenture; however, the
      Indenture Trustee shall examine the certificates and opinions to determine
      whether or not they conform on their face to the requirements of this
      Indenture.

     

    (c) The
      Indenture Trustee may not be relieved from liability for its own negligent
      action, its own negligent failure to act, its own willful misconduct, except
      that:

     

    (i) this
      paragraph does not limit the effect of paragraph (b) of this
      Section;

     

    (ii) the
      Indenture Trustee shall not be liable for any error of judgment made in good
      faith by a Responsible Officer unless it is proved that the Indenture Trustee
      was negligent in ascertaining the pertinent facts;

     

    (iii) the
      Indenture Trustee shall not be liable with respect to any action it takes or
      omits to take in good faith in accordance with this Indenture or upon a
      direction received by it from the requisite Noteholders pursuant to Article
      V;
      and

     

    (iv) the
      Indenture Trustee shall not be required to take notice or be deemed to have
      notice or knowledge of (a) any failure by the Issuer to comply with its
      obligations hereunder or in the other Operative Agreements or (b) any Default
      or
      Event of Default, unless a Responsible Officer of the Indenture Trustee assigned
      to and working in its corporate trust department obtains actual knowledge of
      such Default or Event of Default or shall have received written notice thereof.
      In the absence of such actual knowledge or notice, the Indenture Trustee may
      conclusively assume that there is no Default or Event of Default.

     

    (d) Every
      provision of this Indenture that in any way relates to the Indenture Trustee
      is
      subject to the provisions of this Section.

     

    
      
         

      

      
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    (e) The
      Indenture Trustee shall not be liable for indebtedness evidenced by or arising
      under any of the Operative Agreements, including principal of or interest on
      the
      Notes, or interest on any money received by it except as the Indenture Trustee
      may agree in writing with the Issuer.

     

    (f) Money
      held in trust by the Indenture Trustee (if any) need not be segregated from
      other funds except to the extent required by law or the terms of this Indenture
      or the Sale and Servicing Agreement.

     

    (g) No
      provision of this Indenture shall require the Indenture Trustee to expend,
      advance or risk its own funds or otherwise incur financial liability in the
      performance of any of its duties hereunder or in the exercise of any of its
      rights or powers, if it shall have reasonable grounds to believe that repayment
      of such funds or adequate indemnity against such risk or liability is not
      reasonably assured to it; provided,
      however,
      that the
      Indenture Trustee shall not refuse or fail to perform any of its duties
      hereunder solely as a result of nonpayment of its normal fees and
      expenses.

     

    (h) Every
      provision of this Indenture or any other Operative Agreement relating to the
      conduct or affecting the liability of or affording protection to the Indenture
      Trustee shall be subject to the provisions of this Section, Section 6.02 and
      to
      the provisions of the TIA.

     

    (i) Anything
      in this Indenture to the contrary notwithstanding, in no event shall the
      Indenture Trustee be liable for special, indirect or consequential loss or
      damage of any kind whatsoever (including but not limited to lost profits),
      even
      if the Indenture Trustee has been advised of the likelihood of such loss or
      damage and regardless of the form of action.

     

    (j) The
      Indenture Trustee shall execute and deliver the Sale and Servicing Agreement
      and
      such other documents and instruments as shall be necessary or appropriate in
      accordance with its duties and obligations under this Indenture.

     

    (k) The
      Indenture Trustee shall not have any duty or obligation to manage, make any
      payment with respect to, register, record, sell, dispose of, or otherwise deal
      with the Collateral, or to otherwise take or refrain from taking any action
      under, or in connection with, any document contemplated hereby to which the
      Indenture Trustee is a party, except as expressly provided (i) in
      accordance with the powers granted to and the authority conferred upon the
      Indenture Trustee pursuant to this Indenture or any other Operative Agreement,
      and (ii) in accordance with any document or instruction delivered to the
      Indenture Trustee pursuant to the terms of this Indenture or any other Operative
      Agreement; and no implied duties or obligations shall be read into this
      Indenture or any other Operative Agreement against the Indenture Trustee. The
      Indenture Trustee shall have no responsibility to prepare or file any Securities
      and Exchange Commission filing for the Trust or to record this Indenture or
      any
      other Operative Agreement or to prepare or file any tax return for the Trust.
      The Indenture Trustee nevertheless agrees that it will, at its own cost and
      expense, promptly take all action as may be necessary to discharge any liens
      on
      any part of the Collateral that result from actions by, or claims against itself
      (in its individual capacity, and not in the capacity of Indenture Trustee)
      that
      are not related to the administration of the Collateral.

     

    
      
         

      

      
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    (l) In
      the
      absence of bad faith, negligence or willful misconduct on the part of the
      Indenture Trustee or the Securities Administrator, neither the Indenture Trustee
      nor the Securities Administrator shall be responsible for the application of
      any
      money by any Paying Agent other than the Indenture Trustee or the Securities
      Administrator, respectively. Neither the Indenture Trustee nor the Securities
      Administrator shall have any liability or responsibility for the acts or
      omissions of the other Person, it being understood that this Indenture shall
      not
      be construed to render them agents of one another.

     

    Section
      6.02. Rights
      of Indenture Trustee.
      (a) The
      Indenture Trustee may rely on and shall be protected in acting in good faith
      upon any document believed by it to be genuine and to have been signed or
      presented by the proper person. The Indenture Trustee need not investigate
      any
      fact or matter stated in any such document.

     

    (b) Before
      the Indenture Trustee acts or refrains from acting, it may require an Officer’s
      Certificate or an Opinion of Counsel, which shall not be at the expense of
      the
      Indenture Trustee. The Indenture Trustee shall not be liable for any action
      it
      takes or omits to take in good faith in reliance on an Officer’s Certificate or
      Opinion of Counsel. Any Opinion of Counsel with respect to legal matters
      relating to this Indenture, any Operative Agreement and the Notes shall be
      full
      and complete authorization and protection from liability in respect to any
      action taken, omitted or suffered by it hereunder in good faith and in
      accordance with any Opinion of Counsel of such counsel. The Issuer shall be
      responsible for the reasonable costs and expenses of any such counsel. The
      right
      of the Indenture Trustee to perform any discretionary act enumerated in this
      Indenture or in any Operative Agreement shall not be construed as a duty and
      the
      Indenture Trustee shall not be answerable for other than its negligence or
      willful misconduct in the performance of such act.

     

    (c) The
      Indenture Trustee may execute any of the trusts or powers hereunder or perform
      any duties hereunder either directly or by or through agents or attorneys or
      a
      custodian or nominee and the Indenture Trustee shall not be responsible for
      any
      misconduct or negligence on the part of such agent, attorney, custodian or
      nominee appointed by the Indenture Trustee with due care.

     

    (d) The
      Indenture Trustee shall not be liable for any action it takes or omits to take
      in good faith which it believes to be authorized or within its rights or powers;
      provided, that the Indenture Trustee’s conduct does not constitute willful
      misconduct, negligence or bad faith.

     

    (e) In
      the
      event that the Indenture Trustee is also acting as Paying Agent or Note
      Registrar hereunder or under any other Operative Agreement, the rights and
      protections afforded to the Indenture Trustee pursuant to this Article VI shall
      be afforded to such Paying Agent or Note Registrar.

     

    (f) The
      Indenture Trustee shall not be bound to make any investigation into the facts
      or
      matters stated in any resolution, certificate (including any Officers’
Certificate), statement, instrument, opinion (including any Opinion of Counsel),
      notice, request, direction, consent, order, bond, debenture or other paper
      or
      document, unless requested to do so in writing by Holders of Notes representing
      not less than 25% of the Outstanding Balance of the Notes and provided that
      such
      Holders shall have offered to the Indenture Trustee reasonable security or
      indemnity satisfactory to it against the costs, expenses and liabilities which
      may be incurred thereby.

     

    
      
         

      

      
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    (g) The
      Indenture Trustee shall not be required to give any bond or surety in respect
      of
      the performance of its powers and duties hereunder.

     

    (h) The
      permissive rights of the Indenture Trustee to do things enumerated in this
      Indenture shall not be construed as duties.

     

    Section
      6.03. Individual
      Rights of Indenture Trustee.
      The
      Indenture Trustee in its individual or any other capacity other than as
      Indenture Trustee may, and in its capacity as Indenture Trustee may not, become
      the owner or pledgee of Notes and may otherwise deal with the Issuer or its
      Affiliates with the same rights it would have if it were not Indenture Trustee.
      Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the
      same with like rights. However, the Indenture Trustee must meet the eligibility
      criteria of Section 6.11.

     

    Section
      6.04. Indenture
      Trustee’s Disclaimer.
      The
      Indenture Trustee shall not be responsible for and makes no representation
      as to
      the validity or adequacy of any of the Operative Agreements or the Notes or
      the
      sufficiency of the Collateral; it shall not be accountable for the Issuer’s use
      of the proceeds from the Notes, and it shall not be responsible for any
      statement of the Issuer in this Indenture, any other Operative Agreement or
      in
      any other document issued in connection with the sale of the Notes or in the
      Notes.

     

    Section
      6.05. Notice
      of Defaults.
      If a
      Default occurs and is continuing and if a Responsible Officer of the Indenture
      Trustee has actual knowledge thereof, the Indenture Trustee shall give written
      notice thereof to the Securities Administrator who shall provide notice to
      each
      Noteholder within thirty (30) days after it acquires knowledge
      thereof.

     

    Section
      6.06. Reports
      by Indenture Trustee to Holders.
      The
      Securities Administrator shall deliver to each Noteholder such information
      with
      respect to the Notes as may be required to enable such holder to prepare its
      federal and state income tax returns and shall file such information returns
      with the Internal Revenue Service with respect to payments or accruals of
      interest on the Notes as are required to be filed under the Code or applicable
      Treasury Regulations.

     

    Section
      6.07. Compensation
      and Indemnity.
      The
      Indenture Trustee shall be entitled, as compensation for its services, the
      Indenture Trustee Fee to be paid by the Master Servicer as provided in the
      Sale
      and Servicing Agreement. The Indenture Trustee’s compensation shall not be
      limited by any law on compensation of a trustee of an express trust. The
      Indenture Trustee and any co-trustee shall be reimbursed on behalf of the Issuer
      from funds in the Accounts, as provided in the Sale and Servicing Agreement,
      for
      all reasonable out-of-pocket expenses incurred or made by it, including costs
      of
      collection, in addition to the compensation for its services (as provided in
      the
      Sale and Servicing Agreement) and indemnity payments. Reimbursable expenses
      under this Section shall include the reasonable compensation and expenses,
      disbursements and advances, if any, of the Indenture Trustee’s agents, counsel,
      accountants and experts. The Issuer shall indemnify the Indenture Trustee,
      any
      co-trustee and their respective employees, directors and agents, as provided
      in
      the Sale and Servicing Agreement and from funds in the Accounts, against any
      and
      all claims, losses, liabilities or expenses (including attorneys’ fees) incurred
      by it in connection with the administration of this trust and the performance
      of
      its duties hereunder or under any other Operative Agreement. The Indenture
      Trustee or co-trustee, as applicable, shall notify the Issuer promptly of any
      claim for which it may seek indemnity. Failure by the Indenture Trustee or
      the
      co-trustee, as applicable, to so notify the Issuer shall not relieve the Issuer
      of its obligations hereunder. The Issuer shall defend any such claim, and the
      Indenture Trustee and any co-trustee may have separate counsel fees and expenses
      of such counsel shall be payable on behalf of the Issuer from funds in the
      Accounts. The Issuer shall not be required to reimburse any expense or indemnify
      against any loss, liability or expense incurred by the Indenture Trustee or
      any
      co-trustee, as applicable, through the Indenture Trustee’s or co-trustee’s, as
      the case may be, own willful misconduct, negligence or bad
      faith.

    
      
         

      

      
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    The
      Issuer’s obligations to the Indenture Trustee and any co-trustee pursuant to
      this Section shall survive the resignation or removal of the Indenture Trustee
      and the termination of this Indenture. When the Indenture Trustee or any
      co-trustee incurs expenses after the occurrence of a Default specified in
      Section 5.01(iv) or (v) with respect to the Issuer, the expenses are intended
      to
      constitute expenses of administration under Title 11 of the United States Code
      or any other applicable federal or state bankruptcy, insolvency or similar
      law.

     

    Section
      6.08. Replacement
      of Indenture Trustee.
      No
      resignation or removal of the Indenture Trustee and no appointment of a
      successor Indenture Trustee shall become effective until the acceptance of
      appointment by the successor Indenture Trustee pursuant to this Section. The
      Indenture Trustee may resign at any time by giving 90 days’ written notice
      thereof to the Depositor, the Issuer, the Securities Administrator, each
      Noteholder and each Rating Agency. The Issuer shall remove the Indenture Trustee
      if:

     

    (i) the
      Indenture Trustee fails to comply with Section 6.11;

     

    (ii) the
      Indenture Trustee is adjudged to be bankrupt or insolvent;

     

    (iii) a
      receiver or other public officer takes charge of the Indenture Trustee or its
      property; or

     

    (iv) the
      Indenture Trustee otherwise becomes incapable of acting.

     

    If
      the
      Indenture Trustee resigns or is removed or if a vacancy exists in the office
      of
      the Indenture Trustee for any reason (the Indenture Trustee in such event being
      referred to herein as the retiring Indenture Trustee), the Issuer shall promptly
      appoint a successor Indenture Trustee that satisfies the eligibility
      requirements of Section 6.11.

     

    The
      retiring Indenture Trustee agrees to cooperate with any successor Indenture
      Trustee in effecting the termination of the resigning or removed Indenture
      Trustee’s responsibilities and rights hereunder and shall promptly provide such
      successor Indenture Trustee all documents and records reasonably requested
      by it
      to enable it to assume the Indenture Trustee’s functions hereunder.

     

    
      
         

      

      
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    A
      successor Indenture Trustee shall deliver a written acceptance of its
      appointment to the retiring Indenture Trustee and to the Issuer. Thereupon
      the
      resignation or removal of the retiring Indenture Trustee shall become effective,
      and the successor Indenture Trustee shall have all the rights, powers and duties
      of the Indenture Trustee under this Indenture. The successor Indenture Trustee
      shall mail a notice of its succession to Noteholders. The retiring Indenture
      Trustee shall promptly transfer all property held by it as Indenture Trustee
      to
      the successor Indenture Trustee.

     

    If
      a
      successor Indenture Trustee does not take office within 30 days after the
      retiring Indenture Trustee resigns or is removed, the retiring Indenture
      Trustee, the Issuer or the Holders of a majority in Outstanding Balance of
      the
      Notes may petition any court of competent jurisdiction for the appointment
      of a
      successor Indenture Trustee.

     

    If
      the
      Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition
      any court of competent jurisdiction for the removal of the Indenture Trustee
      and
      the appointment of a successor Indenture Trustee.

     

    Section
      6.09. Successor
      Indenture Trustee or the Securities Administrator by Merger.
      (a)  If the Indenture Trustee or the Securities Administrator
      consolidates with, merges or converts into, or transfers all or substantially
      all its corporate trust business or assets to, another corporation or banking
      association, as applicable, the resulting, surviving or transferee corporation
      without any further act shall be the successor Indenture Trustee or successor
      Securities Administrator, as the case may be; provided
      that
      such corporation or banking association shall be otherwise qualified and
      eligible hereunder and under any other Operative Agreement. The Indenture
      Trustee or the Securities Administrator, as applicable, shall provide each
      Rating Agency prior written notice of any such transaction.

     

    (a) In
      case
      at the time such successor or successors by merger, conversion or consolidation
      to the Securities Administrator shall succeed to the obligations of the
      Securities Administrator under this Indenture any of the Notes which shall
      have
      been authenticated by the Securities Administrator but not delivered, any such
      successor to the Securities Administrator may adopt the certificate of
      authentication of any predecessor securities administrator and deliver such
      Notes so authenticated; and in case at that time any of the Notes shall not
      have
      been authenticated, any successor to the Securities Administrator may
      authenticate such Notes either in the name of any predecessor hereunder or
      in
      the name of the successor to the Securities Administrator; and in all such
      cases
      such certificates shall have the full force which it is anywhere in the Notes
      or
      in this Indenture provided that the certificate of the Securities Administrator
      shall have.

     

    Section
      6.10. Appointment
      of Co-Indenture Trustee or Separate Indenture Trustee.
      (a)  Notwithstanding any other provisions of this Indenture, at any
      time, for the purpose of meeting any legal requirement of any jurisdiction
      in
      which any part of the Collateral may at the time be located, the Indenture
      Trustee shall have the power and may execute and deliver all instruments to
      appoint one or more Persons to act as a co-trustee or co-trustees, or separate
      trustee or separate trustees, of all or any part of the Trust Estate, and to
      vest in such Person or Persons, in such capacity and for the benefit of the
      Noteholders, such title to the Collateral, or any part thereof, and, subject
      to
      the other provisions of this Section, such powers, duties, obligations, rights
      and trusts as the Indenture Trustee may consider necessary or desirable. No
      co-trustee or separate trustee hereunder shall be required to meet the terms
      of
      eligibility as a successor trustee under Section 6.11 and no notice to
      Noteholders of the appointment of any co-trustee or separate trustee shall
      be
      required under Section 6.08 hereof.

    
      
         

      

      
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    (a) Every
      separate trustee and co-trustee shall, to the extent permitted by law, be
      appointed and act subject to the following provisions and
      conditions:

     

    (i) all
      rights, powers, duties and obligations conferred or imposed upon the Indenture
      Trustee shall be conferred or imposed upon and exercised or performed by the
      Indenture Trustee and such separate trustee or co-trustee jointly (it being
      understood that such separate trustee or co-trustee is not authorized to act
      separately without the Indenture Trustee joining in such act), except to the
      extent that under any law of any jurisdiction in which any particular act or
      acts are to be performed the Indenture 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 Collateral or
      any
      portion thereof in any such jurisdiction) shall be exercised and performed
      singly by such separate trustee or co-trustee, but solely at the direction
      of
      the Indenture Trustee;

     

    (ii) no
      trustee hereunder shall be personally liable by reason of any act or omission
      of
      any other trustee hereunder; and

     

    (iii) the
      Indenture Trustee may at any time accept the resignation of or remove any
      separate trustee or co-trustee.

     

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

     

    (c) Any
      separate trustee or co-trustee may at any time constitute the Indenture 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 Indenture
      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
      Indenture Trustee, to the extent permitted by law, without the appointment
      of a
      new or successor trustee.

     

    (d) Notwithstanding
      the foregoing, no such co-trustee or separate trustee shall be vested with
      any
      powers, rights or remedies under this Indenture unless such party has agreed
      to
      comply with Section 6.14(c) of this Indenture to the extent applicable to
      it.

     

    Section
      6.11. Eligibility;
      Disqualification.
      The
      Indenture Trustee shall at all times (i) satisfy the requirements of TIA Section
      310(a), (ii) have a combined capital and surplus of at least $100,000,000 as
      set
      forth in its most recently published annual report of condition, (iii) have
      a
      long-term debt rating equivalent to “A” or better by the Rating Agencies or be
      otherwise acceptable to the Rating Agencies and (iv) not be an Affiliate of
      the
      Issuer or the Owner Trustee. The Indenture Trustee shall comply with TIA Section
      310(b), including the optional provision permitted by the second sentence of
      TIA
      Section 310(b)(9); provided,
      however,
      that
      there shall be excluded from the operation of TIA Section 310(b)(1) any
      indenture or indentures under which other securities of the Issuer are
      outstanding if the requirements for such exclusion set forth in TIA Section
      310(b)(1) are met.

    
      
         

      

      
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    Section
      6.12. Representations
      and Warranties.
      The
      Indenture Trustee hereby represents that:

     

    (a) the
      Indenture Trustee is duly organized and validly existing as a national banking
      association in good standing under the laws of the United States with power
      and
      authority to own its properties and to conduct its business as such properties
      are currently owned and such business is presently conducted;

     

    (b) the
      Indenture Trustee has the power and authority to execute and deliver this
      Indenture and to carry out its terms; and the execution, delivery and
      performance of this Indenture have been duly authorized by the Indenture Trustee
      by all necessary corporate action;

     

    (c) the
      consummation of the transactions contemplated by this Indenture and the
      fulfillment of the terms hereof do not conflict with, result in any breach
      of
      any of the terms and provisions of, or constitute (with or without notice or
      lapse of time) a default under the articles of organization or bylaws of the
      Indenture Trustee or any agreement or other instrument to which the Indenture
      Trustee is a party or by which it is bound; and

     

    (d) to
      the
      Indenture Trustee’s knowledge, there are no proceedings or investigations
      pending or threatened before any court, regulatory body, administrative agency
      or other governmental instrumentality having jurisdiction over the Indenture
      Trustee or its properties: (i) asserting the invalidity of this Indenture,
      (ii)
      seeking to prevent the consummation of any of the transactions contemplated
      by
      this Indenture or (iii) seeking any determination or ruling that might
      materially and adversely affect the performance by the Indenture Trustee of
      its
      obligations under, or the validity or enforceability of, this
      Indenture.

     

    Section
      6.13. Preferential
      Collection of Claims Against Issuer.
      The
      Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
      relationship listed in TIA Section 311(b). An Indenture Trustee which has
      resigned or been removed shall be subject to TIA Section 311(a) to the extent
      indicated therein.

     

    Section
      6.14. Reporting
      Requirements of the Commission.  The
      Paying Agent shall provide the assessments, attestations, certificates and
      other
      notices required by this section 6.14. 

     

    (a) Assessment
      of Compliance. 

     

    (i) By
      March
      15 of each year, commencing in March 2008, the Paying Agent, at its own expense,
      shall furnish, and shall cause any Subservicer or Subcontractor engaged by
      it to
      furnish, at its own expense, to the Sponsor, the Depositor, the Owner Trustee
      and the Securities Administrator, a report on an assessment of compliance with
      the Relevant Servicing Criteria as set forth on Exhibit K to the Sale and
      Servicing Agreement that contains (A) a statement by such party of its
      responsibility for assessing compliance with the Relevant Servicing Criteria,
      (B) a statement that such party used the Servicing Criteria to assess compliance
      with the Relevant Servicing Criteria, (C) such party’s assessment of compliance
      with the Relevant Servicing Criteria as of and for the fiscal year covered
      by
      the Form 10-K required to be filed pursuant to Section 3.19(b) of the Sale
      and
      Servicing Agreement, including, if there has been any material instance of
      noncompliance with the Relevant Servicing Criteria, a discussion of each such
      failure and the nature and status thereof, and (D) a statement that a registered
      public accounting firm has issued an attestation report on such party’s
      assessment of compliance with the Relevant Servicing Criteria as of and for
      such
      period. The Depositor may rely on such certification provided by the Paying
      Agent in signing a Sarbanes Certification and causing such certification to
      be
      filed with the Commission. 

     

    
      
         

      

      
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    (ii) When
      the
      Paying Agent (and any Subservicer or Subcontractor engaged by such party) submit
      their assessments, such parties will also at such time include the assessment
      (and attestation pursuant to subsection (b) of this Section 6.14) of each
      Subservicer or Subcontractor engaged by such party and shall indicate what
      Relevant Servicing Criteria will be addressed in any such reports prepared
      by
      any such Subservicer or Subcontractor.

     

    (b) By
      March
      15 of each year, commencing in March 2008, the Paying Agent, at its own expense,
      shall cause, and shall cause any Subservicer or Subcontractor engaged by it
      to
      cause, at its own expense, a registered public accounting firm (which may also
      render other services to the Securities Administrator) that is a member of
      the
      American Institute of Certified Public Accountants to furnish a report to the
      Sponsor, the Depositor, the Securities Administrator and the Owner Trustee,
      to
      the effect that (A) it has obtained a representation regarding certain matters
      from the management of such party, which includes an assertion that such party
      has complied with the Relevant Servicing Criteria, and (B) on the basis of
      an
      examination conducted by such firm in accordance with standards for attestation
      engagements issued or adopted by the PCAOB, it is expressing an opinion as
      to
      whether such party’s compliance with the Relevant Servicing Criteria was fairly
      stated in all material respects, or it cannot express an overall opinion
      regarding such party’s assessment of compliance with the Relevant Servicing
      Criteria. In the event that an overall opinion cannot be expressed, such
      registered public accounting firm shall state in such report why it was unable
      to express such an opinion. Such report must be available for general use and
      not contain restricted use language.

     

    
      
         

      

      
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    (c) Each
      of
      the Indenture
      Trustee and the Paying Agent shall promptly notify the Sponsor, the Owner
      Trustee, the
      Securities Administrator
      and the Depositor (i) of any legal proceedings pending against the Indenture
      Trustee or the Paying Agent of the type described in Item 1117 (§
      229.1117) of
      Regulation AB and (ii) if the Indenture Trustee or the Paying Agent shall become
      (but only to the extent not previously disclosed to the Master Servicer and
      the
      Depositor) at any time an affiliate of any of the parties listed on Exhibit
      E to
      the Trust Agreement.

     

    (d) The
      Paying Agent shall give prior written notice to the Sponsor, the Owner Trustee,
      the Securities Administrator and the Depositor of the appointment of any
      Subcontractor by such party and a written description (in form and substance
      satisfactory to the Sponsor and the Depositor) of the role and function of
      each
      Subcontractor utilized by such party specifying (A) the identity of each such
      Subcontractor and (B) which elements of the servicing criteria set forth under
      Item 1122(d) of Regulation AB will be addressed in assessments of compliance
      provided by each such Subcontractor. The Paying Agent agrees to indemnify the
      Sponsor, the Depositor, the Issuer, the Securities Administrator and the Master
      Servicer, and each of their respective directors, officers, employees and agents
      and hold each of them harmless from and against any losses, damages, penalties,
      fines, forfeitures, legal fees and expenses and related costs, judgments, and
      any other costs, fees and expenses that any of them may sustain arising out
      of
      or based upon the engagement of any Subcontractor in violation of this
      subsection or any failure by the Paying Agent, to deliver any information,
      report, certification, accountants’ letter or other material when and as
      required under this Section 6.14.

     

    (e) The
      Paying Agent shall deliver to the Sponsor, the Depositor, the Securities
      Administrator and the Owner Trustee on or before March 15 of each year,
      commencing on March 15, 2008, an Officer’s Certificate, certifying that with
      respect to the period ending December 31 of the prior year: (i) such Servicing
      Officer has reviewed the activities of such party during the preceding calendar
      year or portion thereof and its performance under this Indenture, (ii) to the
      best of such Servicing Officer’s knowledge, based on such review, the Paying
      Agent has performed and fulfilled its duties, responsibilities and obligations
      under this Indenture, in all material respects throughout such year, or, if
      there has been a default in the fulfillment of any such duties, responsibilities
      or obligations, specifying each such default known to such Servicing Officer
      and
      the nature and status thereof, (iii) nothing has come to the attention of such
      Servicing Officer to lead such Servicing Officer to believe that the Paying
      Agent has failed to perform any of its duties, responsibilities and obligations
      under this Indenture, in all material respects throughout such year, or, if
      there has been a material default in the performance or fulfillment of any
      such
      duties, responsibilities or obligations, specifying each such default known
      to
      such Servicing Officer and the nature and status thereof. 

     

    ARTICLE
      VII

     

    NOTEHOLDERS’
      LISTS AND REPORTS

     

    Section
      7.01. Issuer
      To Furnish Names and Addresses of Noteholders.
      The
      Note Registrar will furnish or cause to be furnished to the Securities
      Administrator and the Indenture Trustee or at the Indenture Trustee’s or the
      Securities Administrator’s direction (a) not more than five days after each
      Record Date, a list, in such form as the Indenture Trustee or the Securities
      Administrator may reasonably require, of the names and addresses of the Holders
      of Notes as of such Record Date, and (b) at such other times as the Indenture
      Trustee or the Securities Administrator may request in writing, within 30 days
      after receipt by the Note Registrar of any such request, a list of similar
      form
      and content as of a date not more than 10 days prior to the time such list
      is
      furnished; provided,
      however,
      that so
      long as the Indenture Trustee or the Securities Administrator is the Note
      Registrar, no such list shall be required to be furnished to the applicable
      Person.

    
      
         

      

      
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    Section
      7.02. Preservation
      of Information; Communications to Noteholders.
      (a) The
      Note Registrar shall preserve, in as current a form as is reasonably
      practicable, the names and addresses of the Holders of Notes contained in the
      most recent list furnished to the Indenture Trustee and the Securities
      Administrator as provided in Section 7.01 and the names and addresses of Holders
      of Notes received by the Securities Administrator in its capacity as Note
      Registrar. The Indenture Trustee may destroy any list furnished to it as
      provided in Section 7.01 upon receipt of a new list so furnished. If three
      or
      more Noteholders, or one or more Holders of a Class of Notes evidencing not
      less
      than 25% of the Outstanding Balance thereof (hereinafter referred to as
“Applicants”), apply in writing to the Securities Administrator, and such
      application states that the Applicants desire to communicate with other holders
      with respect to their rights under this Indenture or under the Notes, then
      the
      Securities Administrator shall, within five Business Days after the receipt
      of
      such application, afford such Applicants access, during normal business hours,
      to the current list of Holders. Every Holder, by receiving and holding a Note,
      agrees with the Issuer, the Securities Administrator, the Note Registrar and
      the
      Indenture Trustee that none of the Issuer, the Securities Administrator or
      the
      Indenture Trustee shall be held accountable by reason of the disclosure of
      any
      such information as to the names and addresses of the Holders under this
      Indenture, regardless of the source from which such information was
      derived.

     

    (a) Noteholders
      may communicate pursuant to TIA Section 312(b) with other Noteholders with
      respect to their rights under this Indenture or under the Notes.

     

    (b) The
      Issuer, the Indenture Trustee, Securities Administrator and the Note Registrar
      shall have the protection of TIA Section 3l2(c).

     

    Section
      7.03. Reports
      by Issuer.
      (a) The
      Issuer shall:

     

    (i) file
      with
      the Indenture Trustee and the Commission in accordance with the rules and
      regulations prescribed from time to time by the Commission such additional
      information, documents and reports with respect to compliance by the Issuer
      with
      the conditions and covenants of this Indenture as may be required from time
      to
      time by such rules and regulations. Delivery of such information, documents
      and
      reports to the Indenture Trustee is for informational purposes only and the
      Indenture Trustee’s receipt of such reports shall not constitute constructive
      notice of any information contained therein or determinable from information
      contained therein, including the Issuer’s compliance with any of its covenants
      hereunder (as to which the Indenture Trustee is entitled to rely exclusively
      on
      Officers’ Certificates); and

     

    
      
         

      

      
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    (ii) supply
      to
      the Indenture Trustee and the Securities Administrator (and the Securities
      Administrator on behalf of the Indenture Trustee shall transmit by mail to
      all
      Noteholders described in TIA Section 313(c) to the extent required by applicable
      law) such summaries of any information, documents and reports required to be
      filed by the Issuer pursuant to clause (i) of this Section 7.03(a) and by rules
      and regulations prescribed from time to time by the Commission.

     

    (b) Unless
      the Issuer otherwise determines, the fiscal year of the Issuer shall end on
      December 31 of each year.

     

    Section
      7.04. Reports
      by Indenture Trustee.
      If
      required by TIA Section 313(a), within 60 days after each March 1, beginning
      with March 1, 2008, the Indenture Trustee shall mail to each Noteholder as
      required by TIA Section 313(c) a brief report dated as of such date that
      complies with TIA Section 313(a). The Indenture Trustee also shall comply with
      TIA Section 313(b).

     

    A
      copy of
      each report at the time of its mailing to Noteholders shall be filed by the
      Indenture Trustee with the Commission and each securities exchange, if any,
      on
      which the Notes are listed. The Issuer shall notify the Indenture Trustee if
      and
      when the Notes are listed on any securities exchange.

     

    ARTICLE
      VIII

     

    ACCOUNTS,
      DISBURSEMENTS AND RELEASES

     

    Section
      8.01. Collection
      of Money.
      Except
      as otherwise expressly provided herein, the Securities Administrator may demand
      payment or delivery of, and shall receive and collect, directly and without
      intervention or assistance of any fiscal agent or other intermediary, all money
      and other property payable to or receivable by the Indenture Trustee or the
      Securities Administrator pursuant to this Indenture. The Securities
      Administrator shall apply all such money received by it as provided in this
      Indenture. Except as otherwise expressly provided in this Indenture, if any
      default occurs in the making of any payment or performance under any agreement
      or instrument that is part of the Collateral, the Securities Administrator
      may
      take such action as may be appropriate to enforce such payment or performance,
      including the institution and prosecution of appropriate Proceedings. Any such
      action shall be without prejudice to any right to claim a Default or Event
      of
      Default under this Indenture and any right to proceed thereafter as provided
      in
      Article V.

     

    Section
      8.02. Note
      Payment Account and Certificate Distribution Account.
      (a) On
      or prior to the Closing Date, the Securities Administrator shall establish
      and
      maintain the Note Payment Account in the name of Wells Fargo Bank, N.A., as
      Securities Intermediary for the benefit of the Indenture Trustee and the
      Noteholders, and the Certificate Distribution Account in the name of the Issuer,
      as provided in Article V of the Sale and Servicing Agreement and Article IV
      of the Trust Agreement, respectively. 

    
      
         

      

      
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    (b) On
      each
      Payment Date, including a Redemption Date, the Paying Agent (or, if the
      Securities Administrator acts as Paying Agent, the Securities Administrator)
      shall distribute all amounts on deposit in the Note Payment Account as provided
      in Section 5.01 of the Sale and Servicing Agreement.

     

    (c) On
      each
      Payment Date, including a Redemption Date, the Securities Administrator hereby
      authorizes the Owner Trustee or the Certificate Paying Agent, as applicable,
      to
      make the distributions from the Certificate Distribution Account as required
      pursuant to Section 4.05 of the Sale and Servicing Agreement and Section 4.02
      of
      the Trust Agreement.

     

    Section
      8.03. General
      Provisions Regarding Accounts.
      Funds
      in the Note Payment Account maintained by the Securities Administrator shall
      be
      invested as provided in the Sale and Servicing Agreement.

     

    Section
      8.04. Release
      of Collateral.
      (a)
      Subject to the payment of its fees and expenses pursuant to Section 6.07, the
      Indenture Trustee may, and when required by the provisions of this Indenture
      and
      the Sale and Servicing Agreement shall, execute instruments to release property
      from the lien of this Indenture, or convey the Indenture Trustee’s interest in
      the same, in a manner and under circumstances that are not inconsistent with
      the
      provisions of this Indenture. No party relying upon an instrument executed
      by
      the Indenture Trustee as provided in this Article VIII shall be bound to
      ascertain the Indenture Trustee’s authority, inquire into the satisfaction of
      any conditions precedent or see to the application of any monies.

     

    (b) At
      such
      time as the Securities Administrator notifies the Indenture Trustee in writing
      that there are no Notes outstanding and all sums due to the Noteholders pursuant
      to the Sale and Servicing Agreement and any fees and expenses of the Indenture
      Trustee, the Master Servicer, the Securities Administrator, the Custodian,
      the
      Owner Trustee and the Servicers pursuant to this Indenture or any other
      Operative Agreement have been paid, the Indenture Trustee shall release any
      remaining portion of the Collateral that secured the Notes from the lien of
      this
      Indenture, and the Securities Administrator shall release to the Issuer or
      any
      other Person entitled thereto any funds then on deposit in the Note Payment
      Account. The Indenture Trustee shall release property from the lien of this
      Indenture and the Securities Administrator shall release the remaining funds
      on
      deposit in the Note Payment Account pursuant to this subsection (b) only upon
      receipt of an Issuer Request accompanied by an Officer’s Certificate, an Opinion
      of Counsel and (if required by the TIA) Independent Certificates in accordance
      with TIA Sections 314(c) and 314(d)(1) meeting the applicable requirements
      of
      Section 11.01 hereof each of which documents and opinions shall be at the
      expense of the Issuer.

     

    
      
         

      

      
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    ARTICLE
      IX

     

    SUPPLEMENTAL
      INDENTURES

     

    Section
      9.01. Supplemental
      Indentures Without Consent of Noteholders.
      (a)
      Without the consent of the Holders of any Notes but with prior notice to each
      Rating Agency, the Issuer, the Securities Administrator and the Indenture
      Trustee, when authorized by an Issuer Order, at any time and from time to time,
      may enter into one or more indentures supplemental hereto (which shall conform
      to the provisions of the Trust Indenture Act as in force at the date of the
      execution thereof), in form satisfactory to the Securities Administrator, for
      any of the following purposes:

    (i) to
      correct or amplify the description of any property at any time subject to the
      lien of this Indenture, or better to assure, convey and confirm unto the
      Indenture Trustee any property subject or required to be subjected to the lien
      of this Indenture, or to subject to the lien of this Indenture additional
      property;

     

    (ii) to
      evidence the succession, in compliance with the applicable provisions hereof,
      of
      another person to the Issuer, and the assumption by any such successor of the
      covenants of the Issuer herein and in the Notes contained;

     

    (iii) to
      add to
      the covenants of the Issuer, for the benefit of the Holders of the Notes, or
      to
      surrender any right or power herein conferred upon the Issuer;

     

    (iv) to
      convey, transfer, assign, mortgage or pledge any property to or with the
      Indenture Trustee;

     

    (v) (A)
      to
      cure any ambiguity, (B) to correct or supplement any provision herein or in
      any
      supplemental indenture that may be inconsistent with any other provisions herein
      or in any supplemental indenture or to conform the provisions hereof to those
      of
      an Offering Document, (C) to obtain or maintain a rating for a Class of Notes
      from a nationally recognized statistical rating organization, (D) to make any
      other provisions with respect to matters or questions arising under this
      Indenture; provided,
      however,
      that no
      such supplemental indenture entered into pursuant to clause (D) of this
      subparagraph (v) shall adversely affect in any material respect the interests
      of
      any Holder not consenting thereto; 

     

    (vi) to
      evidence and provide for the acceptance of the appointment hereunder by a
      successor trustee with respect to the Notes and to add to or change any of
      the
      provisions of this Indenture as shall be necessary to facilitate the
      administration of the trusts hereunder by more than one trustee, pursuant to
      the
      requirements of Article VI; or

     

    (vii) to
      modify, eliminate or add to the provisions of this Indenture to such extent
      as
      shall be necessary to effect the qualification of this Indenture under the
      TIA
      or under any similar federal statute hereafter enacted and to add to this
      Indenture such other provisions as may be expressly required by the
      TIA.

     

    
      
         

      

      
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    The
      Indenture Trustee is hereby authorized to join in the execution of any such
      supplemental indenture and to make any further appropriate agreements and
      stipulations that may be therein contained.

     

    (b) A
      letter
      from each Rating Agency addressed and delivered to the Indenture Trustee to
      the
      effect that any supplemental indenture entered into pursuant to this Section
      9.01 will not cause the then-current ratings on the Notes to be qualified,
      reduced or withdrawn shall constitute conclusive evidence that such amendment
      does not adversely affect in any material respect the interests of the
      Noteholders.

     

    Section
      9.02. Supplemental
      Indentures with Consent of Noteholders.
      The
      Issuer, the Securities Administrator and the Indenture Trustee, when authorized
      by an Issuer Order, also may, with prior notice to each Rating Agency and with
      the consent of the Holders of not less than 66-2/3% of the Outstanding Balance
      of the Notes, by Act of such Holders delivered to the Issuer and the Securities
      Administrator, enter into an indenture or indentures supplemental hereto for
      the
      purpose of adding any provisions to or changing in any manner or eliminating
      any
      of the provisions of this Indenture or of modifying in any manner the rights
      of
      the Holders of the Notes under this Indenture; provided, however,
      that no
      such supplemental indenture shall, without the consent of the Holder of each
      Outstanding Note affected thereby (i) change the date of payment of any
      installment of principal of or interest on any Note, or reduce the principal
      amount thereof, the interest rate thereon, change the provisions of this
      Indenture relating to the application of collections on, or the proceeds of
      the
      sale of, the Collateral to payment of principal of or interest on the Notes,
      or
      change any place of payment where, or the coin or currency in which, any Note
      or
      the interest thereon is payable, or impair the right to institute suit for
      the
      enforcement of the provisions of this Indenture requiring the application of
      funds available therefor, as provided in Article V, to the payment of any such
      amount due on the Notes on or after the respective due dates thereof (or, in
      the
      case of exercise of the Optional Notes Purchase Right or the Clean-up Call
      Right, on or after the Redemption Date), (ii) alter the obligations of the
      Master Servicer to make a Monthly Advance or alter the master servicing
      standards set forth in the Sale and Servicing Agreement or the Servicing
      Agreement, (iii) reduce the aforesaid percentages of Notes the Holders of
      which are required to consent to any such supplemental indenture or to waive
      compliance with any provision of this Indenture, without the consent of the
      Holders of all Notes affected thereby, (iv) modify or alter the provisions
      of the proviso to the definition of the term “Outstanding”, (v) reduce the
      percentage of the Outstanding Amount of the Notes required to direct the
      Indenture Trustee to direct the Issuer to sell or liquidate the Collateral
      pursuant to Section 5.04, (vi) modify any provision of this Section except
      to increase any percentage specified herein or to provide that certain
      additional provisions of this Indenture or the Operative Agreements cannot
      be
      modified or waived without the consent of the Holder of each Outstanding Note
      affected thereby, (vii) modify any of the provisions of this Indenture in
      such manner as to affect the calculation of the amount of any payment of
      interest or principal due on any Note on any Payment Date or (viii) permit
      the
      creation of any lien ranking prior to or on a parity with the lien of this
      Indenture with respect to any part of the Collateral or, except as otherwise
      permitted or contemplated herein, terminate the lien of this Indenture on any
      property at any time subject hereto or deprive the Holder of any Note of the
      security provided by the lien of this Indenture.

    
      
         

      

      
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    The
      Indenture Trustee shall be entitled to conclusively rely on an Opinion of
      Counsel (at the expense of the party requesting the supplemental indenture)
      to
      determine whether or not any Notes would be affected by any supplemental
      indenture and any such determination shall be conclusive upon the Holders of
      all
      Notes, whether theretofore or thereafter authenticated and delivered
      hereunder.

     

    In
      connection with requesting the consent of the Noteholders pursuant to this
      Section, the Issuer shall mail to the Holders of the Notes to which such
      amendment or supplemental indenture relates a notice setting forth in general
      terms the substance of such supplemental indenture. It shall not be necessary
      for any Act of Noteholders under this Section to approve the particular form
      of
      any proposed supplemental indenture, but it shall be sufficient if such Act
      shall approve the substance thereof.

     

    Promptly
      after the execution by the Issuer and the Indenture Trustee of any supplemental
      indenture pursuant to this Section, the Securities Administrator shall mail
      or
      shall cause to be mailed to the Holders of the Notes to which such amendment
      or
      supplemental indenture relates and each Rating Agency a notice setting forth
      in
      general terms the substance of such supplemental indenture. Any failure of
      the
      Securities Administrator to mail such notice, or any defect therein, shall
      not,
      however, in any way impair or affect the validity of any such supplemental
      indenture.

     

    Section
      9.03. Execution
      of Supplemental Indentures.
      In
      executing, or permitting the additional trusts created by, any supplemental
      indenture permitted by this Article IX or the modification thereby of the trusts
      created by this Indenture, the Securities Administrator and the Indenture
      Trustee shall be entitled to receive, and subject to Section 6.02, shall be
      fully protected in relying upon, an Opinion of Counsel to the effect provided
      in
      Section 9.08. The Indenture Trustee may, but shall not be obligated to, enter
      into any such supplemental indenture that affects the Indenture Trustee’s own
      rights, duties, liabilities or immunities under this Indenture or
      otherwise.

     

    Section
      9.04. Effect
      of Supplemental Indenture.
      Upon
      the execution of any supplemental indenture pursuant to the provisions hereof,
      this Indenture shall be and shall be deemed to be modified and amended in
      accordance therewith with respect to the Notes affected thereby, and the
      respective rights, limitations of rights, obligations, duties, liabilities
      and
      immunities under this Indenture of the Indenture Trustee, the Issuer and the
      Holders of the Notes shall thereafter be determined, exercised and enforced
      hereunder subject in all respects to such modifications and amendments, and
      all
      the terms and conditions of any such supplemental indenture shall be and be
      deemed to be part of the terms and conditions of this Indenture for any and
      all
      purposes.

     

    Section
      9.05. Conformity
      with Trust Indenture Act.
      Every
      amendment of this Indenture and every supplemental indenture executed pursuant
      to this Article IX shall conform to the requirements of the Trust Indenture
      Act
      as then in effect so long as this Indenture shall then be qualified under the
      Trust Indenture Act.

    
      
         

      

      
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    Section
      9.06. Reference
      in Notes to Supplemental Indentures.
      Notes
      authenticated and delivered after the execution of any supplemental indenture
      pursuant to this Article IX may, and if required by the Securities Administrator
      shall, bear a notation in a form approved by the Securities Administrator as
      to
      any matter provided for in such supplemental indenture. If the Issuer or the
      Securities Administrator shall so determine, new Notes so modified as to
      conform, in the opinion of the Indenture Trustee and the Issuer, to any such
      supplemental indenture may be prepared and executed by the Issuer and
      authenticated and delivered by the Securities Administrator in exchange for
      Outstanding Notes.

     

    Section
      9.07. Amendments
      to Trust Agreement.
      The
      Indenture Trustee shall, upon Issuer Order, consent to any proposed amendment
      to
      the Trust Agreement or an amendment to or waiver of any provision of any other
      document relating to the Trust Agreement, such consent to be given without
      the
      necessity of obtaining the consent of the Holders of any Notes upon satisfaction
      of the requirements under Section 10.01 of the Trust Agreement.

     

    Section
      9.08. Opinion
      of Counsel.
      In
      connection with any supplemental indenture pursuant to this Article IX, the
      Indenture Trustee shall be entitled to receive, at the expense of the Issuer
      or
      requesting party, as applicable, an Opinion of Counsel to the effect that such
      supplemental indenture is authorized or permitted by this Indenture and that
      all
      conditions precedent to the execution of such supplemental indenture in
      accordance with the relevant provisions of this Article IX have been
      met.

     

    Nothing
      in this Section shall be construed to require that any Person obtain the consent
      of the Indenture Trustee to any amendment or waiver or any provision of any
      document where the making of such amendment or the giving of such waiver without
      obtaining the consent of the Indenture Trustee is not prohibited by this
      Indenture or by the terms of the document that is the subject of the proposed
      amendment or waiver.

     

    ARTICLE
      X

     

    REDEMPTION
      OR CALL OF THE NOTES

     

    Section
      10.01. Redemption
      or Call of the Notes .
      (a) TMI
      will have an assignable option to call all outstanding Notes, in whole but
      not
      in part, on any Payment Date on or after the Optional Notes Purchase Date in
      the
      manner specified herein and subject to the provisions of Section 10.03 of the
      Sale and Servicing Agreement. Upon exercise of the Optional Notes Purchase
      Right, the Notes shall remain outstanding and neither the lien of the Indenture
      with respect to the Collateral securing the Notes nor the Notes shall be
      terminated. The Notes shall not merge with the security therefor, but shall
      remain validly outstanding. Upon exercise of the Optional Notes Purchase Right,
      the Issuer shall execute, and the Securities Administrator shall authenticate
      and prepare for delivery on the Optional Notes Purchase Date new Notes
      evidencing Book-Entry Notes or Definitive Notes (as directed by the holder
      of
      the Optional Notes Purchase Right), and the Issuer shall issue such new Notes
      to
      the holder of the Optional Notes Purchase Right against receipt by the
      Securities Administrator of immediately available funds in an amount not less
      than the Note Purchase Price on the Optional Notes Purchase
      Date.

    
      
         

      

      
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    (b) The
      Notes
      are subject to early redemption upon the exercise of a Clean-Up Call Right
      pursuant to Section 10.01(a) of the Sale and Servicing Agreement.

     

    (c) If
      a
      Clean-Up Call Right is to be exercised pursuant to Section 10.01(a) of the
      Sale
      and Servicing Agreement, Thornburg Mortgage Home Loans, Inc. (or its assignee)
      or Wells Fargo Bank, N.A., as applicable, shall furnish notice of such exercise
      to the Securities Administrator and the Indenture Trustee not later than fifteen
      (15) days prior to the applicable Clean-Up Call Date. The party exercising
      such
      Clean-Up Call Right shall deposit the Clean-Up Call Purchase Price by 10:00
      A.M.
      New York City time on the Business Day prior to the applicable Redemption Date
      with the Securities Administrator which shall promptly deposit it into the
      Note
      Payment Account, whereupon, upon the furnishing of a notice complying with
      Section 10.02 hereof to each Holder of the Notes, all such applicable Notes
      shall be due and payable on the applicable Redemption Date. The Issuer shall
      furnish each Rating Agency and the Indenture Trustee and the Securities
      Administrator notice of any exercise of a Clean-Up Call Right or the Optional
      Notes Purchase Right in accordance with Section 10.02 hereof. 

     

    Section
      10.02. Form
      of Redemption or Call Notice.
      Notice
      of redemption or call under Section 10.01 shall be given by the Securities
      Administrator by first-class mail, postage prepaid, or by facsimile mailed
      or
      transmitted not later than ten (10) days prior to the applicable Clean-Up Call
      Date or Optional Notes Purchase Date, as applicable, to each then Holder of
      each
      Class of Notes to be redeemed or called, as of the close of business on the
      Record Date preceding such Clean-Up Call Date or Optional Notes Purchase Date,
      as applicable, at such Holder’s address or facsimile number appearing in the
      Note Register.

     

    All
      notices of redemption or call shall state:

     

    (i) the
      Clean-Up Call Date or Optional Notes Purchase Date, as applicable;

     

    (ii) the
      Clean-Up Call Purchase Price or Note Purchase Price, as applicable;

     

    (iii) that
      (A) on the Optional Notes Purchase Date, (1) the Note Purchase Price will
      become due and payable only with respect to the then Holders of Notes and that
      the amount payable in respect of the called Notes shall be limited to the Note
      Purchase Price therefor and (2) that interest thereon shall cease to accrue
      on
      the date specified on the notice for the benefit of, and that payment of the
      Note Purchase Price will be made to, the Persons whose names appear as the
      registered holders thereof on the Note Register as of the Record Date applicable
      to such Optional Notes Purchase Date and identified in such notice of call
      or
      (B) on a Clean-Up Call Date, (1) interest thereon shall cease to
      accrue on the date specified in the notice and (2) the payment of all other
      amounts described in Section 10.01(a) of the Sale and Servicing Agreement will
      be made; and

     

    (iv) the
      place
      where such Notes are to be surrendered for payment of the Clean-Up Call Price
      or
      Note Purchase Price (which shall be the office or agency of the Issuer to be
      maintained as provided in Section 3.02).

     

    
      
         

      

      
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    Notice
      of
      redemption or call of the Notes shall be given by the Securities Administrator
      in the name of the Issuer in the case of a Clean-Up Call or the Person effecting
      the Optional Notes Purchase Right, as applicable, and at the expense of the
      Person exercising the Clean-Up Call Right or the Optional Notes Purchase Right,
      as applicable. Failure to give notice as provided in this Section 10.02, or
      any
      defect therein, to any Holder of any Note shall not impair or affect the
      validity of the redemption or call of any other Note.

     

    Section
      10.03. Notes
      Payable on Clean-Up Call Date or Optional Notes Purchase Date .
      Each
      Class of Notes to be redeemed or called shall, following notice of redemption
      or
      call as required under Section 10.02 hereof on the applicable Clean-Up Call
      Date
      or Optional Notes Purchase Date become due and payable at the Clean-Up Call
      Purchase Price or Note Purchase Price and (except pursuant to Section 10.01(a)
      or unless Thornburg Mortgage Home Loans, Inc. (or its assignee) or Wells Fargo
      Bank, N.A., as applicable, shall default in the payment of the Clean-Up Call
      Purchase Price or the Note Purchase Price, as applicable) no interest shall
      accrue thereon (for the benefit of the prior Holder of a Note in the case of
      the
      Optional Notes Purchase Date) for any period after the date to which accrued
      interest is calculated for purposes of calculating the Clean-Up Call Purchase
      Price or Note Purchase Price. The Issuer may not redeem any Class of Notes
      unless (i) all outstanding obligations under such Class of Notes have been
      paid
      in full and (ii) each of the Indenture Trustee and the Securities Administrator
      have been paid all amounts to which they are entitled hereunder.

    ARTICLE
      XI

     

    MISCELLANEOUS

     

    Section
      11.01. Compliance
      Certificates and Opinions, etc.
      Upon
      any application or request by the Issuer to the Indenture Trustee to take any
      action under any provision of this Indenture, the Issuer shall furnish to the
      Indenture Trustee: (i) an Officer’s Certificate stating that all conditions
      precedent, if any, provided for in this Indenture relating to the proposed
      action have been complied with, (ii) an Opinion of Counsel stating that in
      the
      opinion of such counsel all such conditions precedent, if any, have been
      complied with, and (iii) (if required by the TIA) an Independent
      Certificate from a firm of certified public accountants meeting the applicable
      requirements of this Section, except that, in the case of any such application
      or request as to which the furnishing of such documents is specifically required
      by any provision of this Indenture, no additional certificate or opinion need
      be
      furnished.

     

    Every
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture shall include:

     

    (i) a
      statement that each signatory of such certificate or opinion has read or has
      caused to be read such covenant or condition and the definitions herein relating
      thereto;

     

    
      
         

      

      
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    (ii) a
      brief
      statement as to the nature and scope of the examination or investigation upon
      which the statements or opinions contained in such certificate or opinion are
      based;

     

    (iii) a
      statement that, in the opinion of each such signatory, such signatory has made
      such examination or investigation as is necessary to enable such signatory
      to
      express an informed opinion as to whether or not such covenant or condition
      has
      been complied with; and

     

    (iv) a
      statement as to whether, in the opinion of each such signatory, such condition
      or covenant has been complied with.

     

    Section
      11.02. Form
      of Documents Delivered to Indenture Trustee.
      In any
      case where several matters are required to be certified by, or covered by an
      opinion of, any specified Person, it is not necessary that all such matters
      be
      certified by, or covered by the opinion of, only one such Person, or that they
      be so certified or covered by only one document, but one such Person may certify
      or give an opinion with respect to some matters and one or more other such
      Persons as to other matters, and any such Person may certify or give an opinion
      as to such matters in one or several documents.

     

    Any
      certificate or opinion of an Authorized Officer of the Issuer may be based,
      insofar as it relates to legal matters, upon a certificate or opinion of, or
      representations by, counsel, unless such officer knows, or in the exercise
      of
      reasonable care should know, that the certificate or opinion or representations
      with respect to the matters upon which such officer’s certificate or opinion is
      based are erroneous. Any such certificate of an Authorized Officer or Opinion
      of
      Counsel may be based, insofar as it relates to factual matters, upon a
      certificate or opinion of, or representations by, an officer or officers of
      TMI,
      the Seller, the Initial Seller, the Master Servicer, a Servicer, the Depositor,
      the Issuer or the Securities Administrator, stating that the information with
      respect to such factual matters is in the possession of such Person, unless
      such
      counsel knows, or in the exercise of reasonable care should know, that the
      certificate or opinion or representations with respect to such matters are
      erroneous.

     

    Where
      any
      Person is required to make, give or execute two or more applications, requests,
      consents, certificates, statements, opinions or other instruments under this
      Indenture, they may, but need not, be consolidated and form one
      instrument.

     

    Whenever
      in this Indenture, in connection with any application or certificate or report
      to the Indenture Trustee, it is provided that the Issuer shall deliver any
      document as a condition of the granting of such application, or as evidence
      of
      the Issuer’s compliance with any term hereof, it is intended that the truth and
      accuracy, at the time of the granting of such application or at the effective
      date of such certificate or report (as the case may be), of the facts and
      opinions stated in such document shall in such case be conditions precedent
      to
      the right of the Issuer to have such application granted or to the sufficiency
      of such certificate or report. The foregoing shall not, however, be construed
      to
      affect the Indenture Trustee’s right to rely upon the truth and accuracy of any
      statement or opinion contained in any such document as provided in Article
      VI.

     

    
      
         

      

      
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    Section
      11.03. Acts
      of Noteholders.
      (a) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given or taken by Noteholders may be
      embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such Noteholders in person or by agents duly appointed in
      writing; and except as herein otherwise expressly provided such action shall
      become effective when such instrument or instruments are delivered to the
      Indenture Trustee and, where it is hereby expressly required, to the Issuer.
      Such instrument or instruments (and the action embodied therein and evidenced
      thereby) are herein sometimes referred to as the “Act” of the Noteholders
      signing such instrument or instruments. Proof of execution of any such
      instrument or of a writing appointing any such agent shall be sufficient for
      any
      purpose of this Indenture and (subject to Section 6.01) conclusive in favor
      of
      the Indenture Trustee and the Issuer, if made in the manner provided in this
      Section.

     

    (b) The
      fact
      and date of the execution by any person of any such instrument or writing may
      be
      proved in any manner that the Indenture Trustee or the Securities Administrator,
      as applicable, deems sufficient.

     

    (c) The
      ownership of Notes shall be proved by the Note Register.

     

    (d) Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by the Holder of any Notes shall bind the Holder of every Note issued
      upon the registration thereof or in exchange therefor or in lieu thereof, in
      respect of anything done, omitted or suffered to be done by the Indenture
      Trustee or the Issuer in reliance thereon, whether or not notation of such
      action is made upon such Note.

     

    Section
      11.04. Notices,
      etc., to Indenture Trustee, Issuer and Rating Agencies.
      Any
      request, demand, authorization, direction, notice, consent, waiver or Act of
      Noteholders or other documents provided or permitted by this Indenture shall
      be
      in writing and if such request, demand, authorization, direction, notice,
      consent, waiver or act of Noteholders is to be made upon, given or furnished
      to
      or filed with:

     

    (i) the
      Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for
      every purpose hereunder if made, given, furnished or filed in writing to or
      with
      the Indenture Trustee at its Corporate Trust Office, or

     

    (ii) the
      Securities Administrator by the Indenture Trustee, any Noteholder or by the
      Issuer shall be sufficient for every purpose hereunder if made, given, furnished
      or filed in writing to or with the Securities Administrator at its Corporate
      Trust Office, or

     

    (iii) the
      Issuer by the Indenture Trustee or any Noteholder shall be sufficient for every
      purpose hereunder if in writing and mailed first-class, postage prepaid to
      the
      Issuer addressed to the address provided in the Sale and Servicing Agreement,
      or
      at any other address previously furnished in writing to the Indenture Trustee
      by
      the Issuer. The Issuer shall promptly transmit any notice received by it from
      the Noteholders to the Indenture Trustee.

     

    
      
         

      

      
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    Notices
      required to be given to the Rating Agencies by the Issuer, the Indenture
      Trustee, the Securities Administrator or the Owner Trustee shall be in writing,
      personally delivered or mailed by certified mail, return receipt requested,
      to
      the addresses provided in the Sale and Servicing Agreement or such other address
      as shall be designated by written notice to the other parties.

     

    Section
      11.05. Notices
      to Noteholders; Waiver.
      Where
      this Indenture provides for notice to Noteholders of any event, such notice
      shall be sufficiently given (unless otherwise herein expressly provided) if
      in
      writing and mailed, first-class, postage prepaid to each Noteholder affected
      by
      such event, at such Holder’s address as it appears on the Note Register, not
      later than the latest date, and not earlier than the earliest date, prescribed
      for the giving of such notice. In any case where notice to Noteholders is given
      by mail, neither the failure to mail such notice nor any defect in any notice
      so
      mailed to any particular Noteholder shall affect the sufficiency of such notice
      with respect to other Noteholders, and any notice that is mailed in the manner
      herein provided shall conclusively be presumed to have been duly
      given.

     

    Where
      this Indenture provides for notice in any manner, such notice may be waived
      in
      writing by any Person entitled to receive such notice, either before or after
      the event, and such waiver shall be the equivalent of such notice. Waivers
      of
      notice by Noteholders shall be filed with the Securities Administrator but
      such
      filing shall not be a condition precedent to the validity of any action taken
      in
      reliance upon such a waiver.

     

    In
      case,
      by reason of the suspension of regular mail service as a result of a strike,
      work stoppage or similar activity, it shall be impractical to mail notice of
      any
      event to Noteholders when such notice is required to be given pursuant to any
      provision of this Indenture, then any manner of giving such notice as shall
      be
      satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving
      of such notice.

     

    Where
      this Indenture provides for notice to the Rating Agencies, failure to give
      such
      notice shall not affect any other rights or obligations created hereunder,
      and
      shall not under any circumstance constitute a Default or Event of
      Default.

     

    Section
      11.06. Conflict
      with Trust Indenture Act.
      If any
      provision hereof limits, qualifies or conflicts with another provision hereof
      that is required to be included in this Indenture by any of the provisions
      of
      the Trust Indenture Act, such required provision shall control.

     

    The
      provisions of TIA Sections 310 through 317 that impose duties on any person
      (including the provisions automatically deemed included herein unless expressly
      excluded by this Indenture) are a part of and govern this Indenture, whether
      or
      not physically contained herein.

     

    Section
      11.07. Effect
      of Headings and Table of Contents.
      The
      Article and Section headings herein and the Table of Contents are for
      convenience only and shall not affect the construction hereof.

     

    Section
      11.08. Successors
      and Assigns.
      All
      covenants and agreements in this Indenture and the Notes by the Issuer shall
      bind its successors and assigns, whether so expressed or not. All agreements
      of
      the Indenture Trustee in this Indenture shall bind its successors, co-trustees
      and agents.

    
      
         

      

      
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    Section
      11.09. Severability.
      In case
      any provision in this Indenture or in the Notes shall be invalid, illegal or
      unenforceable, the validity, legality and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

     

    Section
      11.10. Benefits
      of Indenture and Consents of Noteholders.
      Nothing
      in this Indenture or in the Notes, express or implied, shall give to any Person,
      other than the parties hereto and their successors hereunder, the Owner Trustee
      and the Noteholders, any benefit or any legal or equitable right, remedy or
      claim under this Indenture. Each Noteholder and Note Owner, by acceptance of
      a
      Note or, in the case of a Note Owner, a beneficial interest in a Note, consents
      to and agrees to be bound by the terms and conditions of this
      Indenture.

     

    Section
      11.11. Legal
      Holidays.
      In any
      case where the date on which any payment is due shall not be a Business Day,
      then (notwithstanding any other provision of the Notes or this Indenture)
      payment need not be made on such date, but may be made on the next succeeding
      Business Day with the same force and effect as if made on the date on which
      nominally due, and no interest shall accrue for the period from and after any
      such nominal date.

     

    Section
      11.12. Governing
      Law.
      THIS
      INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER
      THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS
      AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
      SUCH LAWS.

     

    Section
      11.13. Counterparts.
      This
      Indenture may be executed in any number of counterparts, each of which so
      executed shall be deemed to be an original, but all such counterparts shall
      together constitute but one and the same instrument.

     

    Section
      11.14. Recording
      of Indenture.
      If this
      Indenture is subject to recording in any appropriate public recording offices,
      such recording is to be effected by the Issuer and at its expense accompanied
      by
      an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
      other counsel reasonably acceptable to the Indenture Trustee) to the effect
      that
      such recording is necessary either for the protection of the Noteholders or
      any
      other Person secured hereunder or for the enforcement of any right or remedy
      granted to the Indenture Trustee under this Indenture.

     

    Section
      11.15. Trust
      Obligations.
      (a) No
      recourse may be taken, directly or indirectly, with respect to the obligations
      of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
      this Indenture or any certificate or other writing delivered in connection
      herewith or therewith, against (i) the Indenture Trustee or the Owner Trustee
      in
      their respective individual capacities, (ii) any owner of a beneficial ownership
      interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
      director, employee or agent of the Indenture Trustee or the Owner Trustee in
      its
      respective individual capacity, any holder of a beneficial ownership interest
      in
      the Issuer, the Owner Trustee or the Indenture Trustee or of any successor
      or
      assign of the Indenture Trustee or the Owner Trustee in its individual capacity,
      except as any such Person may have expressly agreed (it being understood that
      the Indenture Trustee and the Owner Trustee have no such obligations in their
      respective individual capacities) and except that any such partner, owner or
      beneficiary shall be fully liable, to the extent provided by applicable law,
      for
      any unpaid consideration for stock, unpaid capital contribution or failure
      to
      pay any installment or call owing to such entity. For all purposes of this
      Indenture, in the performance of any duties or obligations of the Issuer
      hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
      of, the terms and provisions of Articles V, VI and VII of the Trust
      Agreement.

    
      
         

      

      
        65

        
          

        

      

      
         

      

    

    (b)
      In
      addition, (i) this Indenture is executed and delivered by Wilmington Trust
      Company, not individually or personally but solely as Owner Trustee, in the
      exercise of the powers and authority conferred and vested in it, (ii) each
      of
      the representations, undertakings and agreements herein made on the part of
      the
      Issuer is made and intended not as personal representations, undertakings and
      agreements by Wilmington Trust Company but is made and intended for the purpose
      of binding only the Trust, (iii) nothing herein contained shall be construed
      as
      creating any liability on Wilmington Trust Company, individually or personally,
      to perform any covenant either expressed or implied contained herein, all such
      liability, if any, being expressly waived by the Indenture Trustee and by any
      Person claiming by, through or under the Indenture Trustee, and (iv) under
      no
      circumstances shall Wilmington Trust Company be personally liable for the
      payment of any indebtedness or expenses of the Issuer or be liable for the
      breach or failure of any obligation, representation, warranty or covenant made
      or undertaken by the Issuer under this Indenture or the Operative
      Agreements.

     

    Section
      11.16. No
      Petition.
      The
      Indenture Trustee, by entering into this Indenture, and each Noteholder, by
      accepting a Note or interest therein, hereby covenant and agree that they will
      not at any time institute against the Depositor or the Issuer, or join in any
      institution against the Depositor or the Issuer of, any bankruptcy,
      reorganization, arrangement, insolvency or liquidation proceedings, or other
      proceedings under any United States federal or state bankruptcy or similar
      law
      in connection with any obligations relating to the Notes, this Indenture or
      any
      of the other Operative Agreements; provided,
      however,
      that
      nothing herein shall be deemed to prohibit the Indenture Trustee from filing
      proofs of claim for itself and on behalf of the Noteholders.

     

    Section
      11.17. Inspection.
      The
      Issuer agrees that, on reasonable prior notice, it will permit any
      representative of the Indenture Trustee, during the Issuer’s normal business
      hours, to examine all the books of account, records, reports and other papers
      of
      the Issuer, to make copies and extracts therefrom, to cause such books to be
      audited by Independent certified public accountants, and to discuss the Issuer’s
      affairs, finances and accounts with the Issuer’s officers, employees and
      Independent certified public accountants, all at such reasonable times and
      as
      often as may be reasonably requested. The Indenture Trustee shall, and shall
      cause its representatives to, hold in confidence all such information except
      to
      the extent disclosure may be required by law (and all reasonable applications
      for confidential treatment are unavailing) and except to the extent that the
      Indenture Trustee may reasonably determine that such disclosure is consistent
      with its obligations hereunder.

    
      
         

      

      
        66

        
          

        

      

      
         

      

    

    Section
      11.18. Agreements
      of Noteholders.
      Each
      Noteholder, by accepting a Note, hereby acknowledges and agrees that, to the
      extent that the Noteholders are deemed to have any interest in any assets of
      the
      Depositor that constitute the assets of the trust for any other series of
      securities with respect to which the Depositor acts as depositor:

     

    (a) the
      interest of the Noteholders in such assets is subordinate to claims or rights
      of
      the holders of such other series of securities to such assets; and

     

    (b) this
      Indenture constitutes a subordination agreement for purposes of Section 510(a)
      of the Bankruptcy Code.

     

    
      
         

      

      
        67

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Issuer, the Securities Administrator and the Indenture
      Trustee have caused this Indenture to be duly executed by their respective
      officers, thereunto duly authorized and duly attested, all as of the day and
      year first above written.

     

    

     

    THORNBURG
      MORTGAGE SECURITIES TRUST 2007-2, as Issuer

    

    By:
      WILMINGTON TRUST COMPANY,

    not
      in
      its individual capacity but solely as

    Owner
      Trustee

     

    By:
      _/s/
      Patricia A. Evans________________

    Name:
      Patricia A. Evans

    Title:
      Vice President 

     

    WELLS
      FARGO BANK, N.A., not in its individual capacity but solely as Securities
      Administrator

    

    

    By:
      _/s/
      Carla S. Walker__________________

    Name:
      Carla S. Walker 

    Title:
      Vice President 

    

    LASALLE
      BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as
      Indenture Trustee

    

    

    By:
      _/s/
      Rita Lopez______________________

    Name:
      Rita Lopez

    Title:
      Vice President 

    

    
      
         

      

      
        68

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A-1

     

    FORMS
      OF
      CLASS A NOTES

    

     

    

     

    
      
         

      

      
        A-1-1

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A-2

     

    FORMS
      OF
      PRIVATELY OFFERED NOTES

    

    

    
      
         

      

      
        A-2-1

        
          

        

      

      
         

      

    

     

    EXHIBIT
      B-1

     

    FORM
      OF
      RULE 144A (QIB) INVESTMENT LETTER

    (FOR
      PRIVATELY OFFERED NOTES)

     

                

    date

    Wells
      Fargo Bank, NA

    as
      Note
      Registrar

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

    

    Re:
       Thornburg
      Mortgage Securities Trust 2007-2

    Mortgage
      Backed Notes, [Class [__] Notes] 

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above-referenced Notes (the “Notes”) we
      certify that (a) we understand that the Notes have not been 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 Notes, (c) we have
      had
      the opportunity to ask questions of and receive answers from Structured Asset
      Securities Corporation (the “Depositor”) concerning the purchase of the Notes
      and all matters relating thereto or any additional information deemed necessary
      to our decision to purchase the Notes, (d) we have not, nor has anyone acting
      on
      our behalf, offered, transferred, pledged, sold or otherwise disposed of the
      Notes or any interest in the Notes, or solicited any offer to buy, transfer,
      pledge or otherwise dispose of the Notes or any interest in the Notes from
      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 Notes under the Act or that would render the
      disposition of the Notes a violation of Section 5 of the Act or any state
      securities laws or require registration pursuant thereto, and we will not act,
      or authorize any person to act, in such manner with respect to the Notes, (e)
      we
      are a “qualified institutional buyer” as that term is defined in Rule 144A under
      the Act (“Rule 144A”) and we are aware that the sale to us is being made in
      reliance on Rule 144A and (f) our purchase of the Notes has been duly authorized
      under, and not directly or indirectly in contravention of, any law, charter,
      trust instrument or other operative document, investment guidelines or list
      of
      permissible or impermissible investments applicable to us.

     

    We
      are
      acquiring the Notes for our own account or for resale pursuant to Rule 144A
      and
      understand that such Notes may be resold, pledged or transferred only (1) 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 (2) pursuant to another exemption from registration
      under the Act.

     

    
      
         

      

      
        B-1-1

        
          

        

      

      
         

      

    

    We
      hereby
      acknowledge that, under the terms of the Indenture (the “Indenture”) among
      Thornburg Mortgage Securities Trust 2007-2, as Issuer, Wells Fargo Bank, N.A.,
      as Securities Administrator, and LaSalle Bank National Association, as Indenture
      Trustee, dated as of April 1, 2007, no sale or transfer of any beneficial
      ownership interest in the Notes shall be permitted to be made to any person
      (i)
      except in the case of transfers of Privately Offered Notes, in conjunction
      with
      a simultaneous sale or transfer of an equal Percentage Interest in (x) all
      other
      classes of Privately Offered Notes then outstanding and (y) the Ownership
      Certificates (and any sale or transfer of any beneficial ownership interest
      in
      the Ownership Certificates may only be effectuated in conjunction with a
      simultaneous sale or transfer of an equal Percentage Interest in all classes
      of
      the Privately Offered Notes outstanding) unless we or any prospective transferee
      furnishes to the Note Registrar an opinion of counsel concluding that the
      transfer will not cause the Trust to become subject to federal income tax as
      a
      corporation and (ii) in the case of all Notes, only if the Note Registrar has
      received a certificate from such transferee in the form hereof. We also hereby
      acknowledge that, under the terms of the Indenture, no transfer of less than
      a
      10% Percentage Interest in the Privately Offered Notes shall be
      permitted.

     

    In
      addition, we hereby certify that we are not an employee benefit plan subject
      to
      Section 406 of the Employee Retirement Income Security Act of 1974, as amended
      (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended (the
“Code”) or to any substantially similar law, the trustee of any such plan or a
      person acting on behalf of any such plan nor a person using the assets of any
      such plan.

     

    We
      hereby
      indemnify the Depositor, Indenture Trustee, the Securities Administrator, the
      Note Registrar, the Owner Trustee and the Trust against any liability that
      may
      result to any of them if our transfer or other disposition of any Notes (or
      any
      interest therein) is not exempt from the registration requirements of the Act
      and any applicable state securities laws or is not made in accordance with
      such
      federal and state laws, the provisions of this certificate or the applicable
      provisions of the Indenture.

     

    Very
      truly yours,

     

    ____________________________________

    Print
      Name of Purchaser

     

    By:_________________________________

    Name:

    Title:

    
      
         

      

      
        B-1-2

        
          

        

      

      
         

      

    

    ANNEX
      1
      TO EXHIBIT B-1

     

    

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Buyers Other Than Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows in connection with the Rule 144A
      Investment Representation to which this Certification is attached:

     

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

     

    2. In
      connection with purchases by the Buyer, the Buyer is a “qualified institutional
      buyer” as that term is defined in Rule 144A under the Securities Act of 1933
      (“Rule 144A”) because (i) the Buyer owned and/or invested on a discretionary
      basis $_____________ in securities (except for the excluded securities referred
      to below) as of the end of the Buyer’s most recent fiscal year (such amount
      being calculated in accordance with Rule 144A) and (ii) the Buyer satisfies
      the
      criteria in the category marked below.

     

    ___ CORPORATION,
      ETC. The Buyer is a corporation (other than a bank, savings and loan association
      or similar institution), Massachusetts or similar business trust, partnership,
      or charitable organization described in Section 501(c)(3) of the Internal
      Revenue Code.

     

    ___ 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 units latest annual financial
      statements.

     

    ___ BROKER-DEALER.
      The Buyer is a dealer registered pursuant to Section 15 of the Securities
      Exchange Act of 1934.

     

     

      
        

      

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

      

    

       

      
        
           

        

        
          B-1-3

          
            

          

        

        
           

        

      

    ___ INSURANCE
      COMPANY. The Buyer is an insurance company whose primary and predominant
      business activity is the writing of insurance or the reinsuring of risks
      underwritten by insurance companies and which is subject to supervision by
      the
      insurance commissioner or a similar official or agency of a State or 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 adviser registered under the Investment
      Advisers Act of 1940.

     

    ___ SBIC.
      The
      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. The Buyer is a business development company as defined
      in
      Section 202(a)(22) of the Investment Advisers Act of 1940.

     

    ___ TRUST
      FUND. The Buyer is a trust fund whose trustee is a bank or trust company and
      whose participants are exclusively (a) plans 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, or (b) employee
      benefit plans within the meaning of Title I of the Employee Retirement Income
      Security Act of 1974, but is not a trust fund that includes as participants
      individual retirement accounts of H.R. 10 plans.

     

    3.
      The
      term “Securities” as used herein DOES NOT INCLUDE (i) securities of issuers that
      are affiliated with the Buyer, (ii) securities that are part of an unsold
      allotment to or subscription by the Buyer, if the Buyer is a dealer, (iii)
      bank
      deposit notes and certificates of deposit, (iv) loan participations, (v)
      repurchase agreements, (vi) securities owned but subject to a repurchase
      agreement and (vii) currency, interest rate and commodity swaps.

     

    4. For
      purposes of determining the aggregate amount of securities owned and/or invested
      on a discretionary basis by the Buyer, the Buyer used the cost of such
      securities to the Buyer and did not include any of the securities referred
      to in
      the preceding paragraph. 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 and Exchange Act of 1934.

     

    
      
         

      

      
        B-1-4

        
          

        

      

      
         

      

    

    5. The
      Buyer
      acknowledges that it is familiar with Rule 144A and understands that the seller
      to it and other parties related to the Securities 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.

     

    
      	
               

              ____

              Yes

            	
               

              ____

              No

            	
              Will
                the Buyer be purchasing the Rule 144A Securities only for the Buyer’s own
                account?

            

    

    6. If
      the
      answer to the foregoing question is “no”, the Buyer agrees that, in connection
      with any purchase of securities sold to the Buyer for the account of a third
      party (including any separate account) in reliance on Rule 144A, the Buyer
      will
      only purchase for the account of a third party that at the time is a “qualified
      institutional buyer” within the meaning of Rule 144A. In addition, the Buyer
      agrees that the Buyer will not purchase securities for a third party unless
      the
      Buyer has obtained a current representation letter from such third party or
      taken other appropriate steps contemplated by Rule 144A to conclude that such
      third party independently meets the definition of “qualified institutional
      buyer” set forth in Rule 144A.

     

    7. 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 Rule 144A Securities will constitute a reaffirmation of
      this certification as of the date of such purchase.

     

                            

    Print
      Name of Buyer

     

    By:                         

    Name:

    Title:

     

    Date:                         

    
      
         

      

      
        B-1-5

        
          

        

      

      
         

      

    

    ANNEX
      2
      TO EXHIBIT B-1

     

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Buyers That Are Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows in connection with the Rule 144A
      investment representation to which this certification is attached:

     

    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 (“Rule 144A”) because Buyer is part of a family of investment
      companies (as defined below), is such an officer of the adviser.

     

    2. In
      connection with purchases by Buyer, the Buyer is a “qualified institutional
      buyer” as defined in SEC Rule 144A because (i) the Buyer is an investment
      company registered under the Investment Company Act of 1940, 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 of the Buyer’s family of
      Investment Companies, the cost of such securities was used.

     

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

     

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

     

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

     

    4. The
      term
“Securities” as used herein does not include (i) securities of issuers that are
      affiliated with the Buyer or are part of the Buyer’s Family of Investment
      Companies, (ii) bank deposit notes and certificates of deposit, (iii) loan
      participations, (iv) repurchase agreements, (v) securities owned but subject
      to
      a repurchase agreement and (vi) currency, interest rate and commodity
      swaps.

     

    5. The
      Buyer
      is familiar with Rule 144A and understands that each of the parties to which
      this certification is made 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.

     

    
      
         

      

      
        B-1-6

        
          

        

      

      
         

      

    

    6. The
      undersigned will notify each of the parties to which this certification is
      made
      of any changes in the information and conclusions herein. Until such notice,
      the
      Buyer’s purchase of Rule 144A securities will constitute a reaffirmation of this
      certification by the undersigned as of the date of such purchase.

     

                                

    PRINT
      NAME OF BUYER

     

    BY:                            

    NAME:

    TITLE:

     

    IF
      AN
      ADVISER:

                                

    PRINT
      NAME OF BUYER

     

    DATE:

    
      
         

      

      
        B-1-7

        
          

        

      

      
         

      

    

     

    EXHIBIT
      B-2

     

     

    FORM
      OF
      ACCREDITED INVESTOR INVESTMENT LETTER

    (For
      Privately Offered Notes)

     

                    

    date

    Wells
      Fargo Bank, NA

    as
      Note
      Registrar

    Sixth
      Street and Marquette Avenue

    Minneapolis,
      Minnesota 55479

     

    
      	
              Re:

            	 	Thornburg Mortgage Securities
              Trust 2007-2
              Mortgage
                Backed Notes, [Class [ ]
                Notes] 

            

    

      

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above-referenced Notes (the “Notes”) we
      certify that (a) we understand that the Notes have not been 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 had the
      opportunity to ask questions of and receive answers from Structured Asset
      Securities Corporation (the “Depositor”) concerning the purchase of the Notes
      and all matters relating thereto or any additional information deemed necessary
      to our decision to purchase the Notes, (c) we have not, nor has anyone acting
      on
      our behalf, offered, transferred, pledged, sold or otherwise disposed of the
      Notes or any interest in the Notes, or solicited any offer to buy, transfer,
      pledge or otherwise dispose of the Notes or any interest in the Notes from
      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 Notes under the Act or that would render the
      disposition of the Notes a violation of Section 5 of the Act or any state
      securities laws or require registration pursuant thereto, and we will not act,
      or authorize any person to act, in such manner with respect to the Notes, (d)
      we
      are an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or
      (7) and have such knowledge and experience in financial and business matters
      and, in particular, in such matters related to the Notes, such that we are
      capable of evaluating the merits and risks of an investment in the Notes and
      we
      are aware that the sale to us is being made in reliance on Rule 144A and (e)
      our
      purchase of the Notes has been duly authorized under, and not directly or
      indirectly in contravention of any law, charter, trust instrument or other
      operative document, investment guidelines or list of permissible or
      impermissible investments applicable to us. 

     

    We
      hereby
      acknowledge that, under the terms of the Indenture (the “Indenture”) among
      Thornburg Mortgage Securities Trust 2007-2, as Issuer, Wells Fargo Bank, N.A.,
      as Securities Administrator, and LaSalle Bank National Association, as Indenture
      Trustee, dated as of April 1, 2007, no sale or transfer of any beneficial
      ownership interest in the Notes shall be permitted to be made to any person
      (i)
      except in the case of transfers of Privately Offered Notes, in conjunction
      with
      a simultaneous sale or transfer of an equal Percentage Interest in (x) all
      other
      classes of Privately Offered Notes then outstanding and (y) the Ownership
      Certificates (and any sale or transfer of any beneficial ownership interest
      in
      the Ownership Certificates may only be effectuated in conjunction with a
      simultaneous sale or transfer of an equal Percentage Interest in all classes
      of
      the Privately Offered Notes outstanding) unless we or any prospective transferee
      furnishes to the Note Registrar an opinion of counsel concluding that the
      transfer will not cause the Trust to become subject to federal income tax as
      a
      corporation and (ii) in the case of all Notes, only if the Note Registrar has
      received a certificate from such transferee in the form hereof. We also hereby
      acknowledge that, under the terms of the Indenture, no transfer of less than
      a
      10% Percentage Interest in the Privately Offered Notes shall be
      permitted.

     

    
      
         

      

      
        B-2-1

        
          

        

      

      
         

      

    

    In
      addition, we hereby certify that we are not an employee benefit plan subject
      to
      Section 406 of the Employee Retirement Income Security Act of 1974, as amended
      (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended (the
“Code”) or to any substantially similar law, the trustee of any such plan or a
      person acting on behalf of any such plan nor a person using the assets of any
      such plan.

     

    We
      hereby
      indemnify the Depositor, Indenture Trustee, the Securities Administrator, the
      Note Registrar, the Owner Trustee and the Trust against any liability that
      may
      result to any of them if our transfer or other disposition of any Notes (or
      any
      interest therein) is not exempt from the registration requirements of the Act
      and any applicable state securities laws or is not made in accordance with
      such
      federal and state laws, the provisions of this certificate or the applicable
      provisions of the Indenture.

     

    Very
      truly yours,

     

    ___________________________________

    Print
      Name of Purchaser

     

    By:_________________________________

    Name:

    Title:

    

    
      
         

      

      
        B-2-2

        
          

        

      

      
         

      

    

     

    EXHIBIT
      C

     

     

    FORM
      OF
      ERISA TRANSFER AFFIDAVIT

    FOR
      CLASS
      A NOTES

     

                    

    date

     

    
      
        	STATE OF NEW YORK 	) 	 
	 	) 	ss.: 
	COUNTY OF NEW YORK 	) 	 

      

    

     

    
       

      
        	
                Re:

              	 	Thornburg Mortgage
                Securities
                Trust 2007-2
                Mortgage
                  Backed Notes 

              

      

        

    

    1. The
      undersigned is the ______________________ of (the “Investor”), a [corporation
      duly organized] and existing under the laws of __________, on behalf of which
      he
      makes this affidavit.

     

    2. The
      Investor’s acquisition and holding of the Notes for, or on behalf of, a Benefit
      Plan will not result in a non-exempt prohibited transaction under Section 406
      of
      ERISA or Section 4975 of the Code which is not covered under Prohibited
      Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60,
      PTCE 96-23, the non-fiduciary service provider exemption under Section
      408(b)(17) of ERISA or some other applicable exemption, and will not result
      in a
      non-exempt violation of any Similar Law.

     

    3. The
      Investor hereby acknowledges that under the terms of the Indenture among
      Thornburg Mortgage Securities Trust 2007-2, as Issuer, Wells Fargo Bank, N.A.,
      as Securities Administrator, and LaSalle Bank National Association, as Indenture
      Trustee, dated as of April 1, 2007, no transfer of any Class A Note shall be
      permitted to be made to any person unless the Securities Administrator has
      received an affidavit from such transferee in the form hereof.

     

    
      
         

      

      
        C-1-1

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Investor has caused this instrument to be executed on
      its
      behalf, pursuant to proper authority, by its duly authorized officer, duly
      attested, this ____ day of _______________, 20__.

     

    ________________________________________

    [Investor]

     

    By:_____________________________________

    Name:

    Title:

     

    ATTEST:

     

    ___________________________

     

    
       

      
        
          	STATE OF  	) 	 
	 	) 	ss.: 
	COUNTY OF  	) 	 

        

      

    

     

    Personally
      appeared before me the above-named ___________________, known or proved to
      me to
      be the same person who executed the foregoing instrument and to be the
      _________________ of the Investor, and acknowledged that he executed the same
      as
      his free act and deed and the free act and deed of the Investor.

     

    Subscribed
      and sworn before me this _____ day of ___________ 20___.

     

    __________________________________

    NOTARY
      PUBLIC

     

    My
      commission expires the

    ____
      day
      of __________, 20__.

     

    
      
         

      

      
        C-1-2THORNBURG
      MORTGAGE SECURITIES TRUST 2007-2,

    Issuer

    

    THORNBURG
      MORTGAGE HOME LOANS, INC.,

    Initial
      Seller and Sponsor

    

    THORNBURG
      MORTGAGE FUNDING, INC.,

    Seller
      

    

    STRUCTURED
      ASSET SECURITIES CORPORATION,

    Depositor

    

    WELLS
      FARGO BANK, N.A.,

    Master
      Servicer and

    Securities
      Administrator

    

    and

    

    LASALLE
      BANK NATIONAL ASSOCIATION,

    Indenture
      Trustee and Custodian

    

     

    SALE
      AND
      SERVICING AGREEMENT

     

    Dated
      as
      of April 1, 2007

     

    __________________________________

     

    Thornburg
      Mortgage Securities Trust 2007-2

    Mortgage-Backed
      Notes, Series 2007-2

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Table
      of Contents

     

    Page

     

    
      	
              ARTICLE
                I DEFINITIONS

            	
              4

            
	 	 
	
              SECTION
                1.01. Defined Terms.

            	
              4

            
	
              SECTION
                1.02. Accounting.

            	
              44

            
	 	 
	
              ARTICLE
                II CONVEYANCE OF MORTGAGE LOANS;

            	
              45

            
	 	 
	
              SECTION
                2.01. Conveyance of Mortgage Loans.

            	
              45

            
	
              SECTION
                2.02. Acceptance of the Trust Estate; Review of
                Documentation.

            	
              49

            
	
              SECTION
                2.03. Grant Clause

            	
              50

            
	
              SECTION
                2.04. Repurchase or Substitution of Mortgage Loans by the
                Seller.

            	
              52

            
	
              SECTION
                2.05. Representations and Warranties of the Sellers with Respect
                to the
                Mortgage Loans.

            	
              55

            
	
              SECTION
                2.06. Representations and Warranties of the Depositor.

            	
              57

            
	
              SECTION
                2.07. Representations and Warranties of the Depositor with Respect
                to
                Security Interest in the Mortgage Loans

            	
              58

            
	
              SECTION
                2.08. Representations and Warranties of the Sellers.

            	
              59

            
	
              SECTION
                2.09. Covenants of the Sellers.

            	
              62

            
	 	 
	
              ARTICLE
                III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS

            	
              62

            
	 	 
	
              SECTION
                3.01. Master Servicer to Service and Administer the Mortgage
                Loans.

            	
              63

            
	
              SECTION
                3.02. [Reserved].

            	
              64

            
	
              SECTION
                3.03. Monitoring of Servicers.

            	
              64

            
	
              SECTION
                3.04. Fidelity Bond.

            	
              66

            
	
              SECTION
                3.05. Power to Act; Procedures.

            	
              66

            
	
              SECTION
                3.06. Due-on-Sale Clauses; Assumption Agreements.

            	
              67

            
	
              SECTION
                3.07. Release of Mortgage Files.

            	
              67

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

            	
              68

            
	
              SECTION
                3.09. Standard Hazard Insurance and Flood Insurance
                Policies.

            	
              69

            
	
              SECTION
                3.10. Presentment of Claims and Collection of Proceeds.

            	
              69

            
	
              SECTION
                3.11. Maintenance of the Primary Insurance Policies.

            	
              70

            
	
              SECTION
                3.12. Indenture Trustee to Retain Possession of Certain Insurance
                Policies
                and Documents.

            	
              70

            
	
              SECTION
                3.13. Realization Upon Defaulted Mortgage Loans.

            	
              71

            
	
              SECTION
                3.14. Additional Compensation to the Master Servicer.

            	
              71

            
	
              SECTION
                3.15. REO Property.

            	
              71

            
	
              SECTION
                3.16. Assessments of Compliance and Attestation Reports.

            	
              72

            
	
              SECTION
                3.17. Annual Compliance Statement.

            	
              75

            
	
              SECTION
                3.18. Sarbanes-Oxley Certification.

            	
              75

            
	
              SECTION
                3.19. Reports Filed with Securities and Exchange
                Commission.

            	
              76

            
	
              SECTION
                3.20. Additional Information.

            	
              82

            

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

     

    
      	
              SECTION
                3.21. Intention of the Parties and Interpretation.

            	
              82

            
	
              SECTION
                3.22. Indemnification.

            	
              82

            
	
              SECTION
                3.23. Amendments to Master Servicing Guide and Correspondent Sellers
                Guide.

            	
              83

            
	
              SECTION
                3.24. Uniform Commercial Code.

            	
              83

            
	
              SECTION
                3.25. Optional and Required Purchases of Certain Mortgage
                Loans.

            	
              84

            
	
              SECTION
                3.26. Realization upon Troubled Mortgage Loans.

            	
              85

            
	
              SECTION
                3.27. Closing Certificate and Opinion.

            	
              85

            
	
              SECTION
                3.28. Liabilities of the Master Servicer.

            	
              85

            
	
              SECTION
                3.29. Merger or Consolidation of the Master Servicer.

            	
              85

            
	
              SECTION
                3.30. Indemnification of the Initial Seller, the Seller, the Indenture
                Trustee, the Owner Trustee, the Master Servicer and the Securities
                Administrator.

            	
              86

            
	
              SECTION
                3.31. Limitations on Liability of the Master Servicer and Others;
                Indemnification of Indenture Trustee and Others.

            	
              87

            
	
              SECTION
                3.32. Master Servicer Not to Resign.

            	
              88

            
	
              SECTION
                3.33. Successor Master Servicer.

            	
              88

            
	
              SECTION
                3.34. Sale and Assignment of Master Servicing.

            	
              89

            
	 	 
	
              ARTICLE
                IV ACCOUNTS

            	
              89

            
	 	 
	
              SECTION
                4.01. Servicing Accounts.

            	
              89

            
	
              SECTION
                4.02. Collection Account.

            	
              91

            
	
              SECTION
                4.03. Permitted Withdrawals and Transfers from the Collection
                Account.

            	
              93

            
	
              SECTION
                4.04. The Note Payment Account.

            	
              95

            
	
              SECTION
                4.05. The Certificate Distribution Account

            	
              96

            
	
              SECTION
                4.06. The Reserve Fund

            	
              96

            
	
              SECTION
                4.07. Control of the Trust Accounts

            	
              97

            
	 	 
	
              ARTICLE
                V FLOW OF FUNDS

            	
              100

            
	 	 
	
              SECTION
                5.01. Payments.

            	
              100

            
	
              SECTION
                5.02. [Reserved].

            	
              104

            
	
              SECTION
                5.03. Allocation of Realized Losses.

            	
              104

            
	
              SECTION
                5.04. Statements.

            	
              105

            
	
              SECTION
                5.05. Remittance Reports; Advances.

            	
              108

            
	
              SECTION
                5.06. Compensating Interest Payments.

            	
              109

            
	
              SECTION
                5.07. [Reserved].

            	
              109

            
	
              SECTION
                5.08. [Reserved].

            	
              109

            
	
              SECTION
                5.09. Yield Maintenance Accounts.

            	
              109

            
	
              SECTION
                5.10. Subsequent Recoveries.

            	
              110

            
	 	 
	
              ARTICLE
                VI [RESERVED]

            	
              111

            
	 	 
	
              ARTICLE
                VII DEFAULT

            	
              111

            
	 	 
	
              SECTION
                7.01. Event of Default.

            	
              111

            
	
              SECTION
                7.02. Indenture Trustee to Act.

            	
              113

            

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

     

    
      	
              SECTION
                7.03. Waiver of Event of Default.

            	
              114

            
	
              SECTION
                7.04. Notification to Securityholders.

            	
              115

            
	
              SECTION
                7.05. Action Upon Master Servicer Event of Default.

            	
              115

            
	
              SECTION
                7.06. Additional Remedies of Indenture Trustee Upon Event of
                Default.

            	
              115

            
	 	 
	
              ARTICLE
                VIII THE INDENTURE TRUSTEE AND THE SECURITIES
                ADMINISTRATOR

            	
              116

            
	 	 
	
              SECTION
                8.01. Duties of Indenture Trustee and Securities
                Administrator.

            	
              116

            
	
              SECTION
                8.02. Certain Matters Affecting the Indenture Trustee and the Securities
                Administrator.

            	
              118

            
	
              SECTION
                8.03. Indenture Trustee and the Securities Administrator Not Liable
                for
                Securities, Mortgage Loans or Additional Collateral.

            	
              119

            
	
              SECTION
                8.04. Owner Trustee, Master Servicer and Securities Administrator
                May Own
                Notes.

            	
              120

            
	
              SECTION
                8.05. Indenture Trustee’s, Custodian’s Owner Trustee’s and Securities
                Administrator’s Fees and Expenses.

            	
              120

            
	
              SECTION
                8.06. Eligibility Requirements for Indenture Trustee and Securities
                Administrator.

            	
              121

            
	
              SECTION
                8.07. Resignation or Removal of the Indenture Trustee or the Securities
                Administrator.

            	
              121

            
	
              SECTION
                8.08. Successor Securities Administrator.

            	
              123

            
	
              SECTION
                8.09. Merger or Consolidation of Indenture Trustee or Securities
                Administrator.

            	
              123

            
	
              SECTION
                8.10. [Reserved].

            	
              124

            
	
              SECTION
                8.11. [Reserved].

            	
              124

            
	
              SECTION
                8.12. Trustee May Enforce Claims Without Possession of
                Notes.

            	
              124

            
	
              SECTION
                8.13. Suits for Enforcement.

            	
              125

            
	
              SECTION
                8.14. Waiver of Bond Requirements.

            	
              125

            
	
              SECTION
                8.15. Waiver of Inventory, Accounting and Appraisal
                Requirement.

            	
              125

            
	
              SECTION
                8.16. Appointment of Custodian.

            	
              125

            
	
              SECTION
                8.17. Auction Administration Agreement; Auction Swap
                Agreement.

            	
              126

            
	
              SECTION
                8.18. Yield Maintenance Counterparty Tax Form.

            	
              126

            
	 	 
	
              ARTICLE
                IX [RESERVED]

            	
              126

            
	 	 
	
              ARTICLE
                X TERMINATION

            	
              126

            
	 	 
	
              SECTION
                10.01. Termination; Clean-Up Call.

            	
              126

            
	
              SECTION
                10.02. [Reserved].

            	
              128

            
	
              SECTION
                10.03. Optional Purchase of Notes.

            	
              128

            
	 	 
	
              ARTICLE
                XI [RESERVED]

            	
              129

            
	 	 
	
              ARTICLE
                XII MISCELLANEOUS PROVISIONS

            	
              129

            
	 	 
	
              SECTION
                12.01. Amendment.

            	
              129

            

    

     

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

     

    
      	
              SECTION
                12.02. Recordation of Agreement; Counterparts.

            	
              131

            
	
              SECTION
                12.03. [Reserved].

            	
              131

            
	
              SECTION
                12.04. Governing Law; Jurisdiction.

            	
              131

            
	
              SECTION
                12.05. Notices.

            	
              131

            
	
              SECTION
                12.06. Severability of Provisions.

            	
              132

            
	
              SECTION
                12.07. Article and Section References.

            	
              132

            
	
              SECTION
                12.08. Notice to the Rating Agencies.

            	
              132

            
	
              SECTION
                12.09. Further Assurances.

            	
              134

            
	
              SECTION
                12.10. Benefits of Agreement.

            	
              134

            
	
              SECTION
                12.11. [Reserved].

            	
              134

            
	
              SECTION
                12.12. Successors and Assigns.

            	
              134

            
	
              SECTION
                12.13. [Reserved].

            	
              134

            
	
              SECTION
                12.14. Execution by the Issuer.

            	
              134

            

    

    

    EXHIBITS
      AND SCHEDULES:

    

      
        	
                Exhibit
                  A

              	
                [Reserved]

              	
                A-1

              
	
                Exhibit
                  B

              	
                [Reserved]

              	
                B-2

              
	
                Exhibit
                  C

              	
                [Reserved]

              	
                C-1

              
	
                Exhibit
                  D

              	
                [Reserved]

              	
                D-1

              
	
                Exhibit
                  E

              	
                [Reserved]

              	
                E-1

              
	
                Exhibit
                  F

              	
                Request
                  for Release

              	
                F-1

              
	
                Exhibit
                  G-1

              	
                Form
                  of Receipt of Mortgage Note

              	
                G-1-1

              
	
                Exhibit
                  G-2

              	
                Form
                  of Interim Certificate of Indenture Trustee

              	
                G-2-1

              
	
                Exhibit
                  G-3

              	
                Form
                  of Final Certification of Indenture Trustee

              	
                G-3-1

              
	
                Exhibit
                  H

              	
                Form
                  of Lost Note Affidavit

              	
                H-1

              
	
                Exhibit
                  I

              	
                [Reserved]

              	
                I-1

              
	
                Exhibit
                  J-1

              	
                [Reserved]

              	
                J-1-1

              
	
                Exhibit
                  J-2

              	
                [Reserved]

              	
                J-2-1

              
	
                Exhibit
                  K

              	
                [Reserved]

              	
                K-1

              
	
                Exhibit
                  L

              	
                [Reserved]

              	
                L-1

              
	
                Exhibit
                  M

              	
                Form
                  of Certificate of Trust

              	
                M-1

              
	
                Exhibit
                  N

              	
                List
                  of Servicers and Servicing Agreements

              	
                N-1

              
	
                Exhibit
                  O

              	
                Notice
                  of Exercise of Optional Notes Purchase Right

              	
                O-1

              
	
                Exhibit
                  P

              	
                [Reserved]

              	
                P-1

              
	
                Exhibit
                  Q

              	
                Servicing
                  Criteria

              	
                Q-1

              
	
                Exhibit
                  R

              	
                Additional
                  Form 10-D Disclosure

              	
                R-1

              
	
                Exhibit
                  S

              	
                Additional
                  Form 10-K Disclosure

              	
                S-1

              
	
                Exhibit
                  T

              	
                Form
                  8-K Disclosure Information

              	
                T-1

              
	
                Exhibit
                  U

              	
                Form
                  of Additional Disclosure Notification

              	
                U-1

              
	 	 	 
	Schedule
                I	Mortgage
                Loan
                Schedule	 

      

    

     

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

     

     

    This
      SALE
      AND SERVICING AGREEMENT, dated as of April 1, 2007 (the “Agreement”),
      is by
      and among THORNBURG MORTGAGE SECURITIES TRUST 2007-2, a Delaware statutory
      trust, as issuer (the “Issuer”),
      THORNBURG MORTGAGE HOME LOANS, INC., a Delaware corporation, as initial seller
      (the “Initial
      Seller”)
      and
      sponsor (the “Sponsor”),
      THORNBURG MORTGAGE FUNDING, INC., a Delaware corporation, as seller (the
“Seller”),
      STRUCTURED ASSET SECURITIES CORPORATION, a Delaware corporation, as depositor
      (the “Depositor”),
      WELLS
      FARGO BANK, N.A., a national banking association, as master servicer (in such
      capacity, the “Master
      Servicer”)
      and as
      securities administrator (in such capacity, the “Securities
      Administrator”)
      and
      LASALLE BANK NATIONAL ASSOCIATION, a national banking association, as indenture
      trustee (the “Indenture Trustee”)
      and
      custodian (“Custodian”).

     

    PRELIMINARY
      STATEMENT:

     

    WHEREAS,
      on or prior to the Closing Date the Seller has acquired all of the rights,
      title
      and interest of the Initial Seller in and to certain residential mortgage loans
      identified in Schedule I hereto, the related mortgages and other related assets
      (the “Mortgage
      Loans”),
      together with certain contractual rights under agreements set forth in Exhibit
      N
      hereto relating to the servicing of the Mortgage Loans (collectively, the
“Contractual
      Rights”)
      and
      rights with respect to the enforcement of certain representations and warranties
      made by the Initial Seller in the TMFI Mortgage Loan Purchase Agreement relating
      to the Mortgage Loans (the “TMFI Contractual
      Rights”),
      and
      on or prior to the Closing Date is the owner of the Mortgage Loans, the
      Contractual Rights and the TMFI Contractual Rights;

     

    WHEREAS,
      the Depositor has acquired all of the rights, title and interest of the Seller
      in and to the Mortgage Loans, the Contractual Rights and the TMFI Contractual
      Rights pursuant to the SASCO Mortgage Loan Purchase Agreement, and, at the
      Closing Date is the owner of the Mortgage Loans, the Contractual Rights and
      the
      TMFI Contractual Rights being conveyed by the Depositor to the Issuer for
      inclusion in the Trust Estate;

     

    WHEREAS,
      the Depositor has duly authorized the execution and delivery of this Agreement
      to provide for the conveyance to the Issuer of the Mortgage Loans, the
      Contractual Rights, the TMFI Contractual Rights and certain other property
      constituting the Trust Estate, and to provide for master servicing of the
      Mortgage Loans by the Master Servicer;

     

    WHEREAS,
      on the Closing Date, the Depositor will acquire the Notes and the Ownership
      Certificates from the Issuer as consideration for its transfer to the Issuer
      of
      the Mortgage Loans, the Contractual Rights, the TMFI Contractual Rights and
      certain other property constituting the Trust Estate; 

     

    WHEREAS,
      pursuant to the Indenture, the Issuer will pledge the Mortgage Loans, the
      Contractual Rights, the TMFI Contractual Rights, the Yield Maintenance
      Agreements and certain other property constituting the Trust Estate to the
      Indenture Trustee as security for the Notes;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    WHEREAS,
      the Master Servicer shall be obligated under this Agreement, among other things,
      to monitor the servicing of the Mortgage Loans by the Servicers on behalf of
      the
      Issuer as provided herein;

     

    WHEREAS,
      the Issuer desires to have the Securities Administrator perform certain duties
      consistent with the terms of this Agreement; and

     

    WHEREAS,
      the Securities Administrator has the capacity to provide the services required
      hereby and is willing to perform such services on the terms set forth
      herein.

     

    NOW,
      THEREFORE, in consideration of the mutual agreements herein contained, the
      parties hereto agree as follows:

     

    The
      following table sets forth (or describes) the Class designation, Note Interest
      Rate, Initial Class Principal Amount (or Class Notional Amount) and minimum
      denomination for each Class of Notes issued pursuant to the
      Indenture:

    

      
        	
                 

                Class

                Designation

              	
                 

              	
                 

                Note
                  Interest Rate

              	
                 

              	
                Initial

                Class
                  Principal Amount or Class Notional Amount

              	
                 

              	
                 

                Minimum

                Denominations

              	
                 

              
	
                Class
                  A-1

              	
                 

              	
                 

              	
                (1)

              	
                 

              	
                $

              	
                144,131,000

              	
                 

              	
                $

              	
                25,000

              	
                 

              
	
                Class
                  A-2A

              	
                 

              	
                 

              	
                (2)

              	
                 

              	
                $

              	
                559,989,000

              	
                 

              	
                $

              	
                25,000

              	
                 

              
	
                Class
                  A-2B

              	
                 

              	
                 

              	
                (2)

              	
                 

              	
                $

              	
                62,221,000

              	
                 

              	
                $

              	
                25,000

              	
                 

              
	
                Class
                  A-3A

              	
                 

              	
                 

              	
                (3)

              	
                 

              	
                $

              	
                450,249,000

              	
                 

              	
                $

              	
                25,000

              	
                 

              
	
                Class
                  A-3B

              	
                 

              	
                 

              	
                (3)

              	
                 

              	
                $

              	
                50,027,000

              	
                 

              	
                $

              	
                25,000

              	
                 

              
	
                Class
                  A-X

              	
                 

              	
                 

              	
                (4)

              	
                 

              	
                $

              	
                1,266,617,000

              	
                (6)

              	
                $

              	
                100,000

              	
                 

              
	
                Class
                  B-1

              	
                 

              	
                 

              	
                (5)

              	
                 

              	
                $

              	
                19,041,000

              	
                 

              	
                $

              	
                100,000

              	
                 

              
	
                Class
                  B-2

              	
                 

              	
                 

              	
                (5)

              	
                 

              	
                $

              	
                9,192,000

              	
                 

              	
                $

              	
                100,000

              	
                 

              
	
                Class
                  B-3

              	
                 

              	
                 

              	
                (5)

              	
                 

              	
                $

              	
                5,252,000

              	
                 

              	
                $

              	
                100,000

              	
                 

              
	
                Class
                  B-4

              	
                 

              	
                 

              	
                (5)

              	
                 

              	
                $

              	
                5,909,000

              	
                 

              	
                $

              	
                100,000

              	
                 

              
	
                Class
                  B-5

              	
                 

              	
                 

              	
                (5)

              	
                 

              	
                $

              	
                4,596,000

              	
                 

              	
                $

              	
                100,000

              	
                 

              
	
                Class
                  B-6

              	
                 

              	
                 

              	
                (5)

              	
                 

              	
                $

              	
                2,630,886

              	
                 

              	
                $

              	
                100,000

              	
                 

              

      

      _______________

    

     

    
      	
              (1)

            	
              On
                or before the Auction Payment Date, the Note Interest Rate with respect
                to
                any Payment Date (and related Accrual Period) with respect to the
                Class
                A-1 Notes will be an annual rate equal to the sum of One-Month LIBOR
                and
                0.140%. After the Auction Payment Date, the Note Interest Rate with
                respect to any Payment Date (and related Accrual Period) with respect
                to
                the Class A-1 Notes will be an annual rate equal to the least of
                (i)
                One-Year LIBOR plus 1.250%, (ii) 11.050% and (iii) the related Class
                A
                Available Funds Cap Rate. 

            

    

     

    
      	
              (2)

            	
              On
                or before the Auction Payment Date, the Note Interest Rate with respect
                to
                any Payment Date (and related Accrual Period) with respect to the
                Class
                A-2A Notes and Class A-2B Notes will be an annual rate equal to the
                sum of
                One-Month LIBOR and 0.130% (in the case of the Class A-2A Notes)
                and
                One-Month LIBOR plus 0.170% (in the case of the Class A-2B Notes).
                After
                the Auction Payment Date and up to and including the Payment Date
                in March
                2014, the Note Interest Rate with respect to any Payment Date (and
                related
                Accrual Period) with respect to the Class A-2A Notes and Class A-2
                B Notes
                will be an annual rate equal to the lesser of (i) 5.750% and (ii)
                the
                related Class A Available Funds Cap Rate. After the Payment Date
                in March
                2014, the Note Interest Rate with respect to any Payment Date (and
                related
                Accrual Period) for the Class A-2A and Class A-2B Notes will be an
                annual
                rate equal to the least of (i) One-Year LIBOR plus 1.250%, (ii) 10.700%
                and (iii) the related Available Funds Cap Rate.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    

     

    
      	
              (3)

            	
              On
                or before the Auction Payment Date, the Note Interest Rate with respect
                to
                any Payment Date (and related Accrual Period) for the Class A-3A
                Notes and
                Class A-3B Notes will be an annual rate equal to the sum of One-Month
                LIBOR plus 0.130% (in the case of the Class A-3A Notes) and One-Month
                LIBOR plus 0.170% (in the case of the Class A-3B Notes). After the
                Auction
                Payment Date up to and including the Payment Date in March 2017,
                the Note
                Interest Rate with respect to any Payment Date (and related Accrual
                Period) for the Class A-3A Notes and Class A-3B Notes will be an
                annual
                rate equal to the lesser of (i) 5.750% and (ii) the related Class
                A
                Available Funds Cap Rate. After the Payment Date in March 2017, the
                Note
                Interest Rate with respect to any Payment Date (and related Accrual
                Period) for the Class A-3A and Class A-3B Notes will be an annual
                rate
                equal to the least of (i) One-Year LIBOR plus 1.200%, (ii) 10.700%
                and
                (ii) the related Class A Available Funds Cap
                Rate.

            

    

     

    
      	
              (4)

            	
              The
                Note Interest Rate of the Class A-X Notes on any Payment Date (and
                related
                Accrual Period) will equal an annual rate (not less than zero) calculated
                as (A) the product of (i) the excess, if any, of (x) the weighted
                average of the Class A Available Funds Cap Rates of the Group 1 Notes,
                Group 2 Notes and Group 3 Notes for such Payment Date, weighted based
                on
                the relative aggregate Class Principal Amounts of the Group 1 Notes,
                Group
                2 Notes and Group 3 Notes immediately before such Payment Date, over
                (y)
                the weighted average of the Note Interest Rates of Group 1 Notes,
                Group 2
                Notes and Group 3 Notes for such Payment Date, weighted based on
                the
                relative aggregate Class Principal Amounts of the Group 1 Notes,
                Group 2
                Notes and Group 3 Notes immediately before such Payment Date multiplied
                by
                (ii) the quotient of the actual number of days in the related Accrual
                Period divided by 30 minus (B) the product of (I) the sum of
                (1) the Class A Deferred Amounts for such Payment Date and
                (2) the Class A Available Funds Cap Shortfalls for such Payment Date
                and (II) 12, divided by the Class Notional Amount of the Class A-X
                Notes.

            

    

     

    
      	
              (5)

            	
              On
                or before the Auction Payment Date, the Note Interest Rates with
                respect
                to any Payment Date (and related Accrual Period) with respect to
                the Class
                B-1 Notes, Class B-2 Notes, Class B-3 Notes, Class B-4 Notes, Class
                B-5
                Notes and Class B-6 Notes will be equal to the weighted average of
                the
                Available Funds Cap Rate applicable to each Mortgage Loan Group,
                weighted
                based on the Subordinate Component of each such Mortgage Loan Group.
                After
                the Auction Payment Date, the Note Interest Rates with respect to
                any
                Payment Date (and related Accrual Period) with respect to the Class
                B-1
                Notes, Class B-2 Notes, Class B-3 Notes, Class B-4 Notes, Class B-5
                Notes
                and Class B-6 Notes will equal the excess, if any, of (a) the weighted
                average of the Available Funds Cap Rate applicable to each Mortgage
                Loan
                Group, weighted based on the Subordinate Component of each such Mortgage
                Loan Group over (b) an annual rate equal to the aggregate of (i)
                the
                product of any remaining Class A Available Funds Cap Shortfalls for
                such
                Payment Date after taking into account the reduction in the Class
                A-X Note
                Interest Rate by any Class A Available Funds Cap Shortfalls, multiplied
                by
                12 and divided by (ii) the aggregate of the Class Principal Amounts
                of the
                Class B-1 Notes, Class B-2 Notes, Class B-3 Notes, Class B-4 Notes,
                Class
                B-5 Notes and Class B-6 Notes immediately before such Payment
                Date.

            

    

     

    
      	
              (6)

            	
              The
                Class A-X Notes are interest-only Notes which accrue interest at
                the
                applicable Note Interest Rate (as described in footnote (4) of this
                table)
                based on a Class Notional Amount for any Payment Date equal to the
                aggregate Class Principal Amount of the Offered
                Notes.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    ARTICLE
      I

     

    DEFINITIONS

     

    SECTION
      1.01. Defined
      Terms.

     

    Whenever
      used in this Agreement or in the Preliminary Statement, the following words
      and
      phrases, unless the context otherwise requires, shall have the meanings
      specified in this Article. 

     

    “10%
      Clean-Up Call Date”:
      As
      defined in Section 10.01(a).

     

    “10%
      Clean-Up Call Right”:
      The
      option of Thornburg or its assignee to call the Notes on the 10% Clean-Up Call
      Date.

     

    “10-K
      Filing Deadline”:
      As
      defined in Section 3.19(b).

     

    “1-Month
      LIBOR”:
      With
      respect to the Mortgage Loans, the average of interbank offered rates for one
      month U.S. dollar deposits in the London market based on quotations of major
      banks.

     

    “1-Month
      LIBOR Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of 1-Month LIBOR.

     

    “1-Year
      CMT”:
      With
      respect to the Mortgage Loans, the weekly average yield on United States
      Treasury securities adjusted to a constant maturity of one year as published
      by
      the Federal Reserve Board in Statistical Release H.15(519).

     

    “1-Year
      CMT Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of 1-Year CMT. 

     

    “1-Year
      LIBOR”:
      With
      respect to the Mortgage Loans, the average of interbank offered rates for
      one-year U.S. dollar deposits in the London market based on quotations of major
      banks.

     

    “1-Year
      LIBOR Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of 1-Year LIBOR.

     

    “6-Month
      LIBOR”:
      With
      respect to the Mortgage Loans, the average of interbank offered rates for
      six-month U.S. dollar deposits in the London market based on quotations of
      major
      banks.

     

    “6-Month
      LIBOR Indexed”:
      Indicates a Mortgage Loan that has an adjustable Loan Rate calculated on the
      basis of 6-Month LIBOR.

     

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

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    “Accrual
      Period”:
      With
      respect to each Payment Date and each Class of Offered Notes, the period
      beginning on the prior Payment Date (or the Closing Date, in the case of the
      first Payment Date) and ending on the day immediately preceding such Payment
      Date. Interest for such Classes will be calculated based upon a 360-day year
      and
      the actual number of days in each Accrual Period. With respect to each Payment
      Date and any Class A-X Notes and each Class of Subordinate Notes, the calendar
      month prior to the month of such Payment Date. Interest for such Classes will
      be
      calculated based upon a 360-day year consisting of twelve 30-day
      months.

     

    “Additional
      Collateral”:
      With
      respect to any Additional Collateral Mortgage Loan, the marketable securities
      or
      other assets subject to a security interest pursuant to the related pledge
      agreement.

     

    “Additional
      Collateral Mortgage Loan”:
      Each
      Mortgage Loan identified as such in the Mortgage Loan Schedule and as to which
      Additional Collateral is then required to be provided as security
      therefor.

     

    “Additional
      Disclosure Notification”:
      As
      defined in Section 3.19(a).

     

    “Additional
      Form 10-D Disclosure”:
      As
      defined in Section 3.19(a).

     

    “Additional
      Form 10-K Disclosure”:
      As
      defined in Section 3.19(b).

     

    “Adjustment
      Date”:
      With
      respect to each Mortgage Loan, each adjustment date on which the related Loan
      Rate changes pursuant to the related Mortgage Note. The first Adjustment Date
      following the Cut-Off Date as to each Mortgage Loan is set forth in the Mortgage
      Loan Schedule.

     

    “Administration
      Agreement”.
      The
      Administration Agreement dated as of April 1, 2007 among the Issuer, the Owner
      Trustee, the Depositor and the Securities Administrator.

     

    “Advance”:
      As to
      any Mortgage Loan or REO Property, any advance made by the Master Servicer
      (including the Indenture Trustee in its capacity as successor Master Servicer)
      in respect of any Payment Date pursuant to Section 5.05.

     

    “Affiliate”:
      With
      respect to any Person, any other Person controlling, controlled by or under
      common control with such Person. For purposes of this definition, “control”
means the power to direct the management and policies of a Person, directly
      or
      indirectly, whether through ownership of voting securities, by contract or
      otherwise and “controlling” and “controlled” shall have meanings correlative to
      the foregoing.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    “Aggregate
      Subordinate Percentage”:
      As to
      any Payment Date, the percentage equivalent of a fraction, the numerator of
      which is the aggregate of the Class Principal Amounts of the Classes of
      Subordinate Notes and the denominator of which is the sum of (i) the Pool
      Balance for such Payment Date and (ii) amounts, if any, on deposit in the
      Reserve Fund for such Payment Date.

     

    “Agreement”:
      This
      Sale and Servicing Agreement, dated as of April 1, 2007, as amended,
      supplemented and otherwise modified from time to time.

     

    “Applicable
      Credit Support Percentage”:
      As
      defined in Section 5.01(e).

     

    “Assignment”:
      As to
      any Mortgage, an assignment of mortgage, notice of transfer or equivalent
      instrument, in recordable form, which is sufficient, under the laws of the
      jurisdiction in which the related Mortgaged Property is located, to reflect
      or
      record the sale of such Mortgage.

     

    “Auction
      Administrator”:
      As
      defined in Section 8.17. 

     

    “Auction
      Administration Agreement”:
      The
      Auction Administration Agreement dated as of April 27, 2007 between the Auction
      Swap Counterparty and the Auction Administrator.

     

    “Auction
      Notes”:
      The
      Offered Notes.

     

    “Auction
      Payment Date”:
      The
      Payment Date in April 2012.

     

    “Auction
      Proceeds Account”:
      The
      account maintained by the Auction Administrator pursuant to the Auction
      Administration Agreement.

     

    “Auction
      Swap Agreement”:
      The
      swap agreement by and between the Auction Swap Counterparty and the Auction
      Administrator, including the ISDA Master Agreement, the schedule thereto, the
      related confirmation (External ID: 9396004/Risk ID: 571150061), each dated
      as of
      April 27, 2007.

     

    “Auction
      Swap Counterparty”:
      Credit
      Suisse International.

     

    “Available
      Funds”:
      With
      respect to any Payment Date and any Mortgage Loan Group, the sum of the Interest
      Distribution Amount for such Payment Date and the Principal Distribution Amount
      for such Payment Date.

     

    “Available
      Funds Cap Rate”:
      With
      respect to any Payment Date and any Mortgage Loan Group, the per annum rate
      equal to the product of (1) the fraction, expressed as a percentage, the
      numerator of which is the Interest Distribution Amount for that Mortgage Loan
      Group for the related Due Period and the denominator of which is the sum of
      the
      Class Principal Amounts of the Offered Notes related to such Mortgage Loan
      Group
      and the Subordinate Component related to such Mortgage Loan Group immediately
      prior to such Payment Date, and (2) 12.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

     

    “Back-Up
      Certification”:
      As
      defined in Section 3.18.

     

    “Base
      Value”:
      With
      respect to any Mortgage Loan for which Additional Collateral has been pledged,
      the value of the Additional Collateral as determined with respect to that
      Mortgage Loan in accordance with the applicable underwriting
      guidelines.

     

    “Book-Entry
      Notes”:
      As
      defined in the Indenture.

     

    “Business
      Day”:
      Any
      day other than a Saturday, a Sunday or a day on which banking or savings
      institutions in the State of Minnesota, the State of Maryland, the State of
      Illinois, the State of New York or in the city in which the Corporate Trust
      Office of the Indenture Trustee is located are authorized or obligated by law
      or
      executive order to be closed.

     

    “Certificateholder”:
      The
      holder of Ownership Certificates.

     

    “Certificate
      Distribution Account”:
      The
      account maintained by or on behalf of the Securities Administrator pursuant
      to
      Section 4.05 for the benefit of the Issuer and the
      Certificateholders.

     

    “Certificate
      of Trust”:
      The
      certificate of trust filed with the Delaware Secretary of State on April 20,
      2007 in respect of the Issuer pursuant to Section 3810 of the Delaware Trust
      Statute.

     

    “Certificate
      Register”:
      As
      defined in the Trust Agreement.

     

    “Certifying
      Person”:
      As
      defined in Section 3.18.

     

    “Class”:
      Collectively, Notes that have the same priority of payment and bear the same
      class designation and the form of which is identical except for variation in
      the
      Percentage Interest evidenced thereby.

     

    “Class
      A-1 Margin”:
      0.140%

     

    “Class
      A-2A Margin”:
      0.130%

     

    “Class
      A-2B Margin”:
      0.170%

     

    “Class
      A-3A Margin”:
      0.130%

     

    “Class
      A-3B Margin”:
      0.170%

     

    “Class
      A-1 Note”:
      Any of
      the Class A-1 Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-1 of the Indenture.

     

    “Class
      A-2A Note”:
      Any of
      the Class A-2A Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-1 of the Indenture.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

     

    “Class
      A-2B Note”:
      Any of
      the Class A-2B Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-1 of the Indenture.

     

    “Class
      A-3A Note”:
      Any of
      the Class A-3A Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-1 of the Indenture.

     

    “Class
      A-3B Note”:
      Any of
      the Class A-3B Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-1 of the Indenture.

     

    “Class
      A Available Funds Cap Rate”:
      With
      respect to any Payment Date and any Class of Offered Notes, a per annum rate
      equal to the product of (1) the Available Funds Cap Rate of the related Mortgage
      Loan Group and (2) 30 divided by the actual number of days in the related
      Accrual Period.

     

    “Class
      A Available Funds Cap Shortfalls”:
      With
      respect to any Payment Date and any Class of Offered Notes, an amount, if any,
      equal to the sum of (i) the excess of the amount of interest that would have
      accrued on that Class of Offered Notes for the related Accrual Period had the
      applicable Note Interest Rate been determined without regard to the applicable
      Class A Available Funds Cap Rate over the amount of interest actually accrued
      on
      such Class of Offered Notes for such Accrual Period, (ii) any amounts described
      in clause (i) above for prior Payment Dates that remain unpaid, and (iii)
      interest on the amount described in clause (ii) at the applicable Note Interest
      Rate determined without regard to the applicable Class A Available Funds Cap
      Rate.

     

    “Class
      A Deferred Amount”:
      For
      each Payment Date and for each Class of Offered Notes, the amount by which
      (x)
      the aggregate of any Realized Losses previously applied in reduction of the
      Class Principal Amount thereof exceeds (y) the sum of (1) the aggregate of
      amounts previously distributed in reimbursement thereof and (2) the amount
      by
      which the Class Principal Amount of such Class has been increased due to any
      Subsequent Recovery.

     

    “Class
      A-X Note”:
      Any of
      the Class A-X Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-2 of the Indenture.

     

    “Class
      B-1 Note”:
      Any of
      the Class B-1 Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-2 of the Indenture.

     

    “Class
      B-2 Note”:
      Any of
      the Class B-2 Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-2 of the Indenture.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

     

    “Class
      B-3 Note”:
      Any of
      the Class B-3 Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-2 of the Indenture.

     

    “Class
      B-4 Note”:
      Any of
      the Class B-4 Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-2 of the Indenture.

     

    “Class
      B-5 Note”:
      Any of
      the Class B-5 Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-2 of the Indenture.

     

    “Class
      B-6 Note”:
      Any of
      the Class B-6 Notes as designated on the face thereof, executed by the Issuer
      and authenticated and delivered by the Securities Administrator, substantially
      in the form annexed as Exhibit A-2 of the Indenture.

     

    “Class
      Notional Amount”:
      With
      respect to the Class A-X Notes and any Payment Date, the sum of the Class
      Principal Amounts of the Offered Notes immediately before such Payment
      Date.

     

    “Class
      Principal Amount”:
      As to
      any Payment Date, with respect to any Class of Notes (other than the Class
      A-X
      Notes), the initial Class Principal Amount as set forth in the table in the
      Preliminary Statement hereto as reduced by the sum of (x) all amounts actually
      distributed in respect of principal of that Class on all prior Payment Dates,
      (y) all Realized Losses, if any, actually allocated to that Class on all prior
      Payment Dates and (z) any applicable Writedown Amount; provided,
      however,
      that
      pursuant to Section 5.10, the Class Principal Amount of a Class of Notes may
      be
      increased up to the amount of Realized Losses previously allocated to such
      Class, in the event that there is a Subsequent Recovery on a Mortgage Loan,
      and
      the Note Principal Amount of any individual Note of such Class will be increased
      by its pro
      rata
      share of
      the increase to such Class.

     

    “Class
      Subordination Percentage”:
      With
      respect to each Class of Subordinate Notes and any Payment Date, the percentage
      equivalent of a fraction the numerator of which is the Class Principal Amount
      of
      such Class immediately before such Payment Date and the denominator of which
      is
      the aggregate of the Class Principal Amounts of all Classes of Notes immediately
      before such Payment Date.

     

    “Clean-Up
      Call Date”:
      As
      defined in Section 10.01(a).

     

    “Clean-Up
      Call Purchase Price”:
      As
      defined in Section 10.01(a).

     

    “Clean-Up
      Call Right”:
      Either
      the Master Servicer Clean-Up Call Right or the 10% Clean-Up Call Right, as
      applicable.

     

    “Close
      of Business”:
      As
      used herein, with respect to any Business Day and location, 5:00 p.m. at such
      location.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

     

    “Closing
      Date”:
      April
      27, 2007.

     

    “Code”:
      The
      Internal Revenue Code of 1986, as amended.

     

    “Collection
      Account”:
      The
      trust account or accounts created and maintained by the Securities Administrator
      pursuant to Section 4.02 hereof which shall be entitled “Collection Account,
      Wells Fargo Bank, N.A., as Securities Intermediary for LaSalle Bank National
      Association, as Indenture Trustee, in trust for the registered Noteholders
      of
      Thornburg Mortgage Securities Trust 2007-2, Mortgage-Backed Notes, Series
      2007-2” and which must be an Eligible Account.

     

    “Commission”:
      U.S.
      Securities and Exchange Commission.

     

    “Compensating
      Interest Payment”:
      With
      respect to any Payment Date, an
      amount equal to the amount, if any, by which (x) the aggregate
      amount of any Interest Shortfalls (excluding for such purpose all shortfalls
      as
      a result of Relief Act Reductions) required to be paid by the Servicers pursuant
      to the related Servicing Agreement with respect to such Payment Date, exceeds
      (y) the aggregate amount actually paid by the Servicers in respect of such
      shortfalls; provided,
      that
      such amount, to the extent payable by the Master Servicer, shall not exceed
      the
      aggregate Master Servicing Fee that would be payable to the Master Servicer
      in
      respect of such Payment Date without giving effect to any Compensating Interest
      Payment.
      

     

    “Contractual
      Rights”:
      As
      defined in the Preliminary Statement.

     

    “Control”:
      The
      meaning specified in Section 8-106 of the New York UCC.

     

    “Converted
      Mortgage Loan”:
      Any
      Mortgage Loan as to which the Mortgagor thereunder has exercised its right
      under
      the related Mortgage Note to convert the adjustable Loan Rate thereon to a
      fixed
      Loan Rate.

     

    “Converted
      Mortgage Loan Schedule”:
      With respect to each Payment Date, a schedule prepared by the Master Servicer
      pursuant to Section 3.25(c) listing each Convertible Mortgage Loan that has
      become a Converted Mortgage Loan during the immediately preceding Due Period,
      and the Purchase Price for each such Converted Mortgage Loan.

     

    “Convertible
      Mortgage Loan”:
      Any Mortgage Loan which, at the option of the Mortgagor and in accordance with
      the terms of the related Mortgage Note, may have the related Mortgage Rate
      converted from an adjustable rate to a fixed rate.

     

    “Cooperative
      Corporation”:
      The
      entity that holds title (fee or an acceptable leasehold estate) to the real
      property and improvements constituting the Cooperative Property and which
      governs the Cooperative Property, which Cooperative Corporation must qualify
      as
      a Cooperative Housing Corporation under Section 216 of the Code.

     

    “Cooperative
      Loan”:
      Any
      Mortgage Loan secured by Cooperative Shares and a Proprietary
      Lease.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    “Cooperative
      Loan Documents”:
      As to
      any Cooperative Loan, (i) the Cooperative Shares, together with a stock power
      in
      blank; (ii) the original or a copy of the executed Security Agreement and the
      assignment of the Security Agreement in blank; (iii) the original or a copy
      of
      the executed Proprietary Lease and the original assignment of the Proprietary
      Lease endorsed in blank; (iv) the original, if available, or a copy of the
      executed Recognition Agreement and, if available, the original assignment of
      the
      Recognition Agreement (or a blanket assignment of all Recognition Agreements)
      endorsed in blank; (v) the executed UCC-1 financing statement with evidence
      of
      recording thereon, which has been filed in all places required to perfect the
      security interest in the Cooperative Shares and the Proprietary Lease; and
      (vi)
      executed UCC Amendments (or copies thereof) or other appropriate UCC financing
      statements required by state law, evidencing a complete and unbroken line from
      the mortgagee to the Trustee with evidence of recording thereon (or in a form
      suitable for recordation).

     

    “Cooperative
      Property”:
      The
      real property and improvements owned by the Cooperative Corporation, that
      includes the allocation of individual dwelling units to the holders of the
      Cooperative Shares of the Cooperative Corporation.

     

    “Cooperative
      Shares”:
      Shares
      issued by a Cooperative Corporation.

     

    “Cooperative
      Unit”:
      A
      single family dwelling located in a Cooperative Property.

     

    “Corporate
      Trust Office”:
      With
      respect to the Indenture Trustee, the principal corporate trust office of the
      Indenture Trustee at which at any particular time its corporate trust business
      in connection with this Agreement shall be administered, which office at the
      date of the execution of this instrument is located at 135 South LaSalle Street,
      Suite 1511, Chicago, IL 60603, Attention: Global Securities and Trust Services,
      Thornburg 2007-2, or at such other address as the Indenture Trustee may
      designate from time to time by notice to the Noteholders, the Depositor and
      the
      Seller. With respect to the Securities Administrator and the Note Registrar
      and
      (i) presentment of Notes for registration of transfer, exchange or final
      payment, Wells Fargo Bank, National Association, Sixth Street and Marquette
      Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust, Thornburg
      Mortgage Securities Trust 2007-2, and (ii) for all other purposes, P.O. Box
      98,
      Columbia, Maryland 21046 (or for overnight deliveries, 9062 Old Annapolis Road,
      Columbia, Maryland 21045), Attention: Corporate Trust, Thornburg Mortgage
      Securities Trust 2007-2.

     

    “Correspondent
      Sellers Guide”:
      The
      Initial Seller’s Correspondent Sellers Guide, revised June 5, 2006, as amended
      by Regulation AB Amendment dated December 1, 2005, and as revised and/or amended
      from time to time.

     

    “Current
      Interest”:
      On
      each Payment Date, the amount of interest which each Class of Notes is entitled
      to receive (to the extent of funds available) for the related Accrual Period,
      which is equal to (a) interest at the applicable Note Interest Rate on the
      Class
      Principal Amount or Class Notional Amount, as applicable, immediately prior
      to
      such Payment Date, of that Class plus (b) unpaid interest amounts consisting
      of
      the excess of all amounts calculated in accordance with clause (a) above on
      all
      prior Payment Dates over the amount actually distributed as interest on the
      prior Payment Dates.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

     

    “Custodian”:
      LaSalle and its successors acting as custodian of the Mortgage
      Files.

     

    “Cut-Off
      Date”:
      With
      respect to any Mortgage Loan other than a Qualified Substitute Mortgage Loan,
      the Close of Business in New York City on April 1, 2007. With respect to any
      Qualified Substitute Mortgage Loan, the date designated as such on the Mortgage
      Loan Schedule (as amended).

     

    “Cut-Off
      Date Aggregate Principal Balance”:
      The
      aggregate of the Cut-Off Date Principal Balances of the Mortgage
      Loans.

     

    “Cut-Off
      Date Principal Balance”:
      With
      respect to any Mortgage Loan, the principal balance thereof remaining to be
      paid, after application of all scheduled principal payments due on or before
      the
      Cut-Off Date whether or not received as of the Cut-Off Date (or as of the
      applicable date of substitution with respect to a Qualified Substitute Mortgage
      Loan).

     

    “Definitive
      Notes”:
      As
      defined in the Indenture.

     

    “Delaware
      Trust Statute”:
      Chapter 38 of Title 12 of the Delaware Code, 12 Dec. C. Section 3801
et.
      seq.
      as the
      same may be amended from time to time.

     

    “Deleted
      Mortgage Loan”:
      A
      Mortgage Loan replaced or to be replaced by one or more Qualified Substitute
      Mortgage Loans pursuant to Section 2.04.

     

    “Delinquent”:
      Any
      Mortgage Loan with respect to which the Monthly Payment due on a Due Date is
      not
      made by the succeeding Due Date.

     

    “Deposit
      Date”:
      The
      day in each calendar month on which the Securities Administrator is required
      to
      remit payments from the Collection Account to the Note Payment Account, which
      is
      the 24th
      day of
      each calendar month no later than 1:00 p.m. (New York City time) (or, if such
      24th
      day is
      not a Business Day, the immediately preceding Business Day).

     

    “Depositor”:
      Structured Asset Securities Corporation, a Delaware corporation, having its
      principal place of business in New York, or its successor in
      interest.

     

    “Determination
      Date”:
      For
      any Payment Date and each Mortgage Loan, the date each month, as set forth
      in
      the related Servicing Agreement, on which the related Servicer determines the
      amount of all funds required to be remitted to the Master Servicer on the
      Servicer Remittance Date with respect to the Mortgage Loans it is servicing.
      

     

    “Due
      Date”:
      With
      respect to each Mortgage Loan and any Payment Date, the first day of the
      calendar month in which such Payment Date occurs on which the Monthly Payment
      for such Mortgage Loan was due, exclusive of any days of grace.

     

    “Due
      Period”:
      With
      respect to any Payment Date, the period commencing on the second day of the
      month preceding the month in which such Payment Date occurs and ending on the
      first day of the month in which such Payment Date occurs.

     

    
      
         

      

      
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    “Eligible
      Account”:
      Any of

     

    (i) an
      account or accounts maintained with a federal or state chartered depository
      institution or trust company the short-term unsecured debt obligations of which
      (or, in the case of a depository institution or trust company that is the
      principal subsidiary of a holding company, the short-term unsecured debt
      obligations of such holding company) are rated in the highest short term rating
      category of each Rating Agency at the time any amounts are held on deposit
      therein;

     

    (ii) an
      account or accounts the deposits in which are fully insured by the FDIC (to
      the
      limits established by it), the uninsured deposits in which account are otherwise
      secured such that, as evidenced by an Opinion of Counsel delivered to the
      Securities Administrator and the Indenture Trustee and to each Rating Agency,
      the Indenture Trustee on behalf of Noteholders will have a claim with respect
      to
      the funds in the account or a perfected first priority security interest against
      the collateral (which shall be limited to Permitted Investments) securing those
      funds that is superior to claims of any other depositors or creditors of the
      depository institution with which such account is maintained;

     

    (iii) a
      trust
      account or accounts maintained with the trust department of a federal or state
      chartered depository institution, national banking association or trust company
      acting in its fiduciary capacity; or 

     

    (iv) an
      account otherwise acceptable to each Rating Agency without reduction or
      withdrawal of its then current ratings of the Notes as evidenced by a letter
      from such Rating Agency to the Securities Administrator and the Indenture
      Trustee. Eligible Accounts may bear interest.

     

    “Employee
      Loan”:
      Any
      Mortgage Loan identified as such in the Mortgage Loan Schedule and which was
      originated by the Initial Seller, which provides for an increase in the Loan
      Rate thereof in the event of the change of employment of the Mortgagor
      thereunder.

     

    “Entitlement
      Order”:
      The
      meaning specified in Section 8-102(a)(8) of the New York UCC (i.e.,
      generally, orders directing the transfer or redemption of any Financial
      Asset).

     

    “Event
      of Default”:
      In
      respect of the Master Servicer, one or more of the events (howsoever described)
      set forth in Section 7.01 hereof as an event or events upon the occurrence
      and
      continuation of which the Master Servicer may be terminated.

     

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

     

    “Expense
      Fee”:
      With
      respect to any Mortgage Loan, the sum of (w) the Retained Interest, if any,
      (x)
      the Master Servicing Fee and (y) the related Servicing Fee with respect to
      the
      related Servicer.

     

    “Expense
      Fee Rate”:
      With
      respect to any Mortgage Loan, the per annum rate at which the Expense Fee
      accrues for such Mortgage Loan as set forth in the Mortgage Loan
      Schedule.

     

    
      
         

      

      
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    “Fannie
      Mae”:
      The
      Federal National Mortgage Association or any successor thereto.

     

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

     

    “Final
      Recovery Determination”:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by the Initial Seller, the Seller,
      TMI
      or Wells Fargo Bank, N.A., pursuant to or contemplated by Section 2.03, 3.25
      and
      10.01), a determination made by the related Servicer that all Insurance
      Proceeds, Liquidation Proceeds and other payments or recoveries which it expects
      to be finally recoverable in respect thereof have been so recovered.

     

    “Financial
      Asset”:
      The
      meaning specified in Section 8-102(a) of the New York UCC.

     

    “Five-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans identified as such and as set forth on Schedule I
      hereto.

     

    “Form
      8-K Disclosure Information”:
      As
      defined in Section 3.19(c).

     

    “Freddie
      Mac”:
      The
      Federal Home Loan Mortgage Corporation or any successor thereto.

     

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

     

    “Group
      1 Mortgage Loans”:
       A Mortgage
      Loan that is identified as such on the Mortgage Loan Schedule.

     

    “Group
      1 Notes”:
       The
      Class
      A-1 Notes.

     

    “Group
      1 Percentage”: For
      any
      Payment Date, the fraction, expressed as a percentage, the numerator of which
      is
      the aggregate Scheduled Principal Balance of the Group 1 Mortgage Loans for
      such
      Payment Date and the denominator of which is the Pool Balance for such Payment
      Date.

     

    “Group
      1 Yield Maintenance Agreement”:
      The
      interest rate cap agreement by and between the Yield Maintenance Counterparty
      and the Securities Administrator, on behalf of the Issuer, including the ISDA
      Master Agreement and Schedule to the Master Agreement, the related confirmation
      (Ref No. IRG16263225.2A) and credit support annex, each dated as of April 27,
      2007, relating to the Group 1 Notes.

     

    “Group
      2 Mortgage Loans”: A Mortgage
      Loan that is identified as such on the Mortgage Loan Schedule.

     

    “Group
      2 Notes”: The
      Class
      A-2A and Class A-2B Notes.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

     

    “Group
      2 Percentage”: For
      any
      Payment Date, the fraction, expressed as a percentage, the numerator of which
      is
      the aggregate Scheduled Principal Balance of the Group 2 Mortgage Loans for
      such
      Payment Date and the denominator of which is the Pool Balance for such Payment
      Date.

     

    “Group
      2 Yield Maintenance Agreement”:
      The
      interest rate cap agreement by and between the Yield Maintenance Counterparty
      and the Securities Administrator, on behalf of the Issuer, including the ISDA
      Master Agreement and Schedule to the Master Agreement, the related confirmation
      (Ref No. IRG16263344.2A) and credit support annex, each dated as of April 27,
      2007, relating to the Group 2 Certificates.

     

    “Group
      3 Mortgage Loans”
      : A Mortgage
      Loan that is identified as such on the Mortgage Loan Schedule.

     

    “Group
      3 Notes”: The
      Class
      A-3A and Class A-3B Notes.

     

    “Group
      3 Percentage”: For
      any
      Payment Date, the fraction, expressed as a percentage, the numerator of which
      is
      the aggregate Scheduled Principal Balance of the Group 3 Mortgage Loans for
      such
      Payment Date and the denominator of which is the Pool Balance for such Payment
      Date.

     

    “Group
      3 Yield Maintenance Agreement”:
      The
      interest rate cap agreement by and between the Yield Maintenance Counterparty
      and the Securities Administrator, on behalf of the Issuer, including the ISDA
      Master Agreement and Schedule to the Master Agreement, the related confirmation
      (Ref No. IRG16263345.2A) and credit support annex, each dated as of April 27,
      2007, relating to the Group 3 Certificates.

     

    “Holder”
or
      “Securityholder”:
      The
      registered holder of any Note or Ownership Certificates as recorded on the
      books
      of the Note Registrar or the Certificate Registrar except that, solely for
      the
      purposes of taking any action or giving any consent pursuant to this Agreement,
      any Notes or Ownership Certificates registered in the name of the Depositor,
      the
      Master Servicer, the Securities Administrator, the Indenture Trustee or the
      Owner Trustee or any Affiliate thereof (unless any such Person owns 100% of
      such
      Class or a 100% beneficial ownership in the Ownership Certificate) shall be
      deemed not to be outstanding in determining whether the requisite percentage
      necessary to effect any such consent has been obtained, except that, in
      determining whether the Indenture Trustee and the Securities Administrator
      shall
      be protected in relying upon any such consent, only Notes and Ownership
      Certificates which a Responsible Officer of the Indenture Trustee or the
      Securities Administrator has actual knowledge to be so held shall be
      disregarded. The Indenture Trustee and the Securities Administrator may request
      and conclusively rely on certifications by the Depositor
      in
      determining whether any Notes or Ownership Certificates are registered to an
      Affiliate of the Depositor.

     

    “Indemnified
      Persons”:
      The
      Issuer, the Indenture Trustee (individually in its corporate capacity and in
      its
      capacity as Indenture Trustee), the Custodian, the Owner Trustee (individually
      in its corporate capacity and in its capacity as Owner Trustee), the Master
      Servicer, the Initial Seller, the Seller, the Depositor and the Securities
      Administrator (in all capacities hereunder) and their officers, directors,
      agents and employees and, with respect to the Indenture Trustee, any separate
      co-trustee and its officers, directors, agents and employees.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

     

    “Indenture”:
      The
      Indenture dated as of April 1, 2007, among the Issuer, the Indenture Trustee
      and
      the Securities Administrator, as such may be amended or supplemented from time
      to time.

     

    “Indenture
      Trustee”:
      LaSalle Bank National Association, not in its individual capacity but solely
      as
      Indenture Trustee, or any successor in interest which accepts its appointment
      as
      Indenture Trustee hereunder and agrees to act in such capacity in accordance
      herewith.

     

    “Indenture
      Trustee Fee”:
      The
      annual ongoing fee of the Indenture Trustee payable by the Master Servicer
      on
      behalf of the Issuer as provided in Section 8.05 and pursuant to the terms
      of a
      separate fee letter between the Indenture Trustee and Thornburg.

     

    “Independent”:
      When
      used with respect to any accountants, a Person who is “independent” within the
      meaning of Rule 2-01 of the Securities and Exchange Commission’ Regulation S.X.
      When used with respect to any other specified Person, any such Person who (a)
      is
      in fact independent of the Depositor and its Affiliates, (b) does not have
      any
      direct financial interest in or any material indirect financial interest in
      the
      Depositor or any Affiliate thereof, (c) is not connected with the Depositor
      or
      any Affiliate thereof as an officer, employee, promoter, underwriter, trustee,
      partner, director or Person performing similar functions and (d) is not a member
      of the immediate family of a Person defined in clause (b) or (c)
      above.

     

    “Index”:
      With
      respect to each Mortgage Loan and each Adjustment Date, the index specified
      in
      the related Mortgage Note.

     

    “Initial
      Note Principal Amount”:
      With
      respect to any Notes (other than the Class A-X Notes), the amount designated
      “Original Principal Amount of this Note” on the face thereof.

     

    “Initial
      Note Notional Amount”:
      With
      respect to the Class A-X Notes, the amount designated “Original Notional Amount
      of this Note” on the face thereof.

     

    “Initial
      One-Month LIBOR Rate”:
      5.320%

     

    “Initial
      Mortgage Loan Group 1 Balance”:
      $149,436,398.18.

    

    “Initial
      Mortgage Loan Group 2 Balance”:
      $645,111,612.23.

    

    “Initial
      Mortgage Loan Group 3 Balance”:
      $518,689,876.04.

     

    “Initial
      Seller”:
      Thornburg, in its capacity as seller under the TMFI Mortgage Loan Purchase
      Agreement.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

     

    “Insurance
      Proceeds”:
      With
      respect to any Mortgage Loan, proceeds of any title policy, hazard policy or
      other insurance policy covering a Mortgage Loan or related Mortgaged Property,
      to the extent such proceeds are not to be applied to the restoration of the
      related Mortgaged Property or released to the related Mortgagor in accordance
      with the related Servicing Agreement.

     

    “Interest
      Distribution Amount”:
      With
      respect to any Payment Date and any Mortgage Loan Group, an amount equal to
      the
      sum of the following for each Mortgage Loan in that Mortgage Loan Group: (1)
      all
      interest received or advanced by the Servicer of the Mortgage Loan or the Master
      Servicer in the related Due Period and available in the Note Payment Amount
      on
      that Payment Date, less any related Servicing Fees, Master Servicing Fees and
      Retained Interest; (2) all Compensating Interest Payments paid with respect
      to
      the Mortgage Loan, if the Mortgage Loan was prepaid during the related
      Prepayment Period and (3) the portion of any Purchase Price or other amount
      paid
      with respect to the Mortgage Loans allocable to interest; minus
      the
      Group 1 Percentage, Group 2 Percentage or Group 3 Percentage, as applicable,
      of
      any fees or other amounts reimbursable to the Master Servicer (other than the
      Master Servicer Fee), the Servicer (other than Servicing Fees), the Securities
      Administrator, the Indenture Trustee (other than its Indenture Trustee Fee),
      the
      Custodian (other than its fees) and the Owner Trustee (other than its Owner
      Trustee Fee) pursuant to the Operative Agreements.

     

    “Interest
      Shortfall”:
      With
      respect to any Payment Date and each Mortgage Loan that during the related
      Prepayment Period was the subject of a Principal Prepayment or a reduction
      of
      its Monthly Payment under the Relief Act or similar state or local law, an
      amount determined as follows:

     

    (a) Principal
      Prepayments in part received during the relevant Prepayment Period: the
      difference between (i) one month’s interest at the applicable Net Loan Rate on
      the amount of such prepayment and (ii) the amount of interest for the calendar
      month of such prepayment (adjusted to the applicable Net Loan Rate) received
      at
      the time of such prepayment; and

     

    (b) Principal
      Prepayments in full received during the relevant Prepayment Period: the
      difference between (i) one month’s interest at the applicable Net Loan Rate on
      the Scheduled Principal Balance of such Mortgage Loan immediately prior to
      such
      prepayment and (ii) the amount of interest for the calendar month of such
      prepayment (adjusted to the applicable Net Loan Rate) received at the time
      of
      such prepayment; and

     

    (c) any
      Relief Act Reductions for such Payment Date.

     

    “Issuer”:
      Thornburg Mortgage Securities Trust 2007-2.

     

    “Item
      1122 Responsible Party”:
      As
      defined in Section 3.22.

     

    “LaSalle”:
      LaSalle Bank National Association.

     

    “LIBOR
      Business Day”:
      Any
      day on which banks in London, England and The City of New York are open and
      conducting transactions in foreign currency and exchange.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

     

    “LIBOR
      Determination Date”:
      The
      second LIBOR Business Day immediately preceding the commencement of each Accrual
      Period for each Class of Offered Notes.

     

    “Liquidated
      Mortgage Loan”:
      As to
      any Payment Date, any Mortgage Loan in respect of which the related Servicer
      or
      the Master Servicer has determined, in accordance with the servicing procedures
      specified herein, as of the end of the related Prepayment Period, that all
      Liquidation Proceeds that it expects to recover with respect to the liquidation
      of such Mortgage Loan or disposition of the related REO Property have been
      recovered.

     

    “Liquidation
      Event”:
      With
      respect to any Mortgage Loan, any of the following events: (i) such Mortgage
      Loan is paid in full; (ii) a Final Recovery Determination is made as to such
      Mortgage Loan; or (iii) such Mortgage Loan is removed from the Trust Estate
      by
      reason of its being purchased, sold or replaced pursuant to or as contemplated
      hereunder. With respect to any REO Property, either of the following events:
      (i)
      a Final Recovery Determination is made as to such REO Property; or (ii) such
      REO
      Property is removed from the Trust Estate by reason of its being sold or
      purchased pursuant to Section 10.01 hereof or the applicable provisions of
      the
      related Servicing Agreement.

     

    “Liquidation
      Expenses”:
      With
      respect to a Mortgage Loan in liquidation, unreimbursed expenses paid or
      incurred by or for the account of the Master Servicer or the related Servicers,
      such expenses including (a) property protection expenses, (b) property sales
      expenses, (c) foreclosure and sale costs, including court costs and reasonable
      attorneys’ fees, and (d) similar expenses reasonably paid or incurred in
      connection with liquidation. 

     

    “Liquidation
      Proceeds”:
      With
      respect to any Mortgage Loan, the amount (other than amounts received in respect
      of the rental of any REO Property prior to REO Disposition) received by the
      related Servicer as proceeds from the liquidation of such Mortgage Loan, as
      determined in accordance with the applicable provisions of the related Servicing
      Agreement, other than Subsequent Recoveries; provided
      that (i)
      with respect to any Mortgage Loan or REO Property repurchased, substituted
      or
      sold pursuant to or as contemplated hereunder, or pursuant to the applicable
      provisions of the related Servicing Agreement, “Liquidation Proceeds” shall also
      include amounts realized in connection with such repurchase, substitution or
      sale and (ii) with respect to a defaulted Additional Collateral Mortgage Loan,
      “Liquidation Proceeds” shall also include the amount realized on the related
      Additional Collateral, including any amounts paid under any Surety
      Bond.

     

    “Loan
      Rate”:
      With
      respect to each Mortgage Loan, the annual rate at which interest accrues on
      such
      Mortgage Loan from time to time in accordance with the provisions of the related
      Mortgage Note.

     

    “Loan-to-Collateral
      Value Ratio”:
      With
      respect to each Mortgage Loan and any date of determination, a fraction,
      expressed as a percentage, the numerator of which is the Principal Balance
      of
      the Mortgage Loan at such date of determination less the Base Value of any
      related Additional Collateral and the denominator of which is the Value of
      the
      related Mortgaged Property.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

     

    “Loan-to-Value
      Ratio”:
      With
      respect to each Mortgage Loan and any date of determination, a fraction,
      expressed as a percentage, the numerator of which is the Principal Balance
      of
      the Mortgage Loan at such date of determination and the denominator of which
      is
      the Value of the related Mortgaged Property.

     

    “Lost
      Note Affidavit”:
      With
      respect to any Mortgage Loan as to which the original Mortgage Note has been
      lost or destroyed and has not been replaced, an affidavit from the Seller
      certifying that the original Mortgage Note has been lost, misplaced or destroyed
      (together with a copy of the related Mortgage Note and indemnifying the Trust
      against any loss, cost or liability resulting from the failure to deliver the
      original Mortgage Note) in the form of Exhibit H hereto.

     

    “Majority
      Securityholders”:
      Until
      such time as the sum of the Class Principal Amounts of all Classes of Notes
      has
      been reduced to zero, the holder or holders of in excess of 50% of the aggregate
      Class Principal Amount of all Classes of Notes (accordingly, the holder of
      the
      Ownership Certificates shall be excluded from any rights or actions of the
      Majority Securityholders during such period); and thereafter, the holder or
      holders of in excess of 50% of the Percentage Interests of the Ownership
      Certificates.

     

    “Master
      Servicer”:
      Wells
      Fargo Bank, N.A., or any successor Master Servicer appointed as herein
      provided.

     

    “Master
      Servicer Clean-Up Call Date”:
      As
      defined in Section 10.01(a).

     

    “Master
      Servicer Clean-Up Call Right”:
      The
      option of Wells Fargo Bank, N.A., so long as it is acting as Master Servicer,
      to
      purchase the outstanding Mortgage Loans and REO Properties on the Master
      Servicer Clean-Up Call Date.

     

    “Master
      Servicing Fee”:
      As to
      any Payment Date and each related Mortgage Loan, an amount equal to the product
      of the applicable Master Servicing Fee Rate and the outstanding Principal
      Balance of such Mortgage Loan as of the first day of the related Due Period.
      The
      Master Servicing Fee for any Mortgage Loan shall be payable in respect of any
      Payment Date solely from the interest portion of the Monthly Payment or other
      payment or recovery with respect to such Mortgage Loan.

     

    “Master
      Servicing Fee Rate”:
      0.010%
      per annum.

     

    “Master
      Servicing Guide”:
      Wells
      Fargo Conduit and Norwest Conduit Servicing Guide, dated January 1997, as
      amended. 

     

    “Maximum
      Loan Rate”:
      With
      respect to each Mortgage Loan, the percentage set forth in the related Mortgage
      Note as the maximum Loan Rate thereunder.

     

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

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    

     

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

     

    “MERS® System”:
      The
      system of recording transfers of mortgages electronically maintained by
      MERS.

     

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

     

    “Modifiable
      Mortgage Loan”:
      Any
      Mortgage Loan which, at the option of the Mortgagor and in accordance with
      the
      terms of the related Mortgage Note, may have the related Mortgage Rate modified
      to any adjustable rate or hybrid product offered at the time by the related
      originator.

     

    “Modified
      Mortgage Loan”:
      Any
      Modifiable Mortgage Loan as to which the related Mortgagor has exercised the
      right to modify the Mortgage Rate.

     

    “Modified
      Mortgage Loan Schedule”:
      With
      respect to each Payment Date, a schedule prepared by the Master Servicer
      pursuant to Section 3.25(c) listing each Modifiable Mortgage Loan that has
      become a Modified Mortgage Loan during the immediately preceding Due Period,
      and
      the Purchase Price for each such Modified Mortgage Loan.

     

    “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
      Payment”:
      With
      respect to any Mortgage Loan, the scheduled monthly payment of principal and/or
      interest on such Mortgage Loan that is payable by the related Mortgagor from
      time to time under the related Mortgage Note, determined, for the purposes
      of
      this Agreement: (a) after giving effect to any reduction in the amount of
      interest collectible from the related Mortgagor pursuant to the Relief Act
      or
      similar state or local law; (b) without giving effect to any extension granted
      or agreed to by the related Servicer pursuant to the applicable provisions
      of
      the related Servicing Agreement; and (c) on the assumption that all other
      amounts, if any, due under such Mortgage Loan are paid when due.

     

    “Moody’s”:
      Moody’s Investors Service, Inc. or any successor thereto.

     

    “Mortgage”:
      The
      mortgage, deed of trust or other instrument creating a first lien on, or first
      priority security interest in, a Mortgaged 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 required to be added to the Mortgage
      File pursuant to this Agreement.

     

    “Mortgage
      Loan”:
      Each
      mortgage loan (including Cooperative Loans) transferred and assigned to the
      Indenture Trustee for the benefit of the Noteholders pursuant to Section 2.01
      or
      Section 2.03(d) hereof as from time to time held as a part of the Trust Estate,
      the Mortgage Loans so held being identified in the Mortgage Loan Schedule or
      Schedule I hereto.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

     

    “Mortgage
      Loan Group 1”:
      At any
      time, the Group 1 Mortgage Loans in the aggregate and any REO Properties
      acquired in respect thereof.

     

    “Mortgage
      Loan Group 2”:
      At any
      time, the Group 2 Mortgage Loans in the aggregate and any REO Properties
      acquired in respect thereof.

     

    “Mortgage
      Loan Group 3”:
      At any
      time, the Group 3 Mortgage Loans in the aggregate and any REO Properties
      acquired in respect thereof.

     

    “Mortgage Loan
      Group”:
      Any of
      Mortgage Loan Group 1, Mortgage Loan Group 2 or Mortgage Loan Group 3, as the
      context requires.

     

    “Mortgage
      Loan Group Balance”:
      As to
      each Mortgage Loan Group and any Payment Date, the aggregate of the Scheduled
      Principal Balances, as of the Close of Business on the first day of the month
      preceding the month in which such Payment Date occurs, of the Mortgage Loans
      in
      such Mortgage Loan Group that were Outstanding Mortgage Loans on such
      date.

     

    “Mortgage
      Loan Purchase Agreement”:
      Each
      of the TMFI Mortgage Loan Purchase Agreement and the SASCO Mortgage Loan
      Purchase Agreement. References in this Agreement to the “applicable” or
“related” Mortgage Loan Purchase Agreement means the TMFI Mortgage Loan Purchase
      Agreement, in the case of the Initial Seller, and the SASCO Mortgage Loan
      Purchase Agreement, in the case of the Seller.

     

    “Mortgage
      Loan Schedule”:
      As of
      any date, the list of Mortgage Loans included in the Trust Estate on such date,
      attached hereto as Schedule I. The Mortgage Loan Schedule shall be prepared
      by
      the Seller and shall set forth the following information with respect to each
      Mortgage Loan:

     

    
      	 	
              (i)

            	
              the
                Mortgage Loan identifying number;

            

    

     

    
      	 	
              (ii)

            	
              the
                Mortgagor’s name;

            

    

     

    
      	 	
              (iii)

            	
              the
                street address of the Mortgaged Property, including the state and
                five-digit ZIP code;

            

    

     

    
      	 	
              (iv)

            	
              a
                code indicating whether the Mortgaged Property was represented by
                the
                borrower, at the time of origination, as being
                owner-occupied;

            

    

     

    
      	 	
              (v)

            	
              a
                code indicating whether the Residential Dwelling constituting the
                Mortgaged Property is (a) a detached single family dwelling, (b)
                a
                dwelling in a planned unit development, (c) a condominium unit, (d)
                a two-
                to four-unit residential property, (e) a townhouse, (f) a cooperative
                or
                (g) other type of Residential
                Dwelling;

            

    

     

    
      	 	
              (vi)

            	
              if
                the related Mortgage Note permits the borrower to make Monthly Payments
                of
                interest only for a specified period of time, (a) the original number
                of
                such specified Monthly Payments and (b) the remaining number of such
                Monthly Payments as of the Cut-Off
                Date;

            

    

    
       

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      

    

    
      	 	
              (vii)

            	
              the
                original months to maturity;

            

    

     

    
      	 	
              (viii)

            	
              the
                stated remaining months to maturity from the Cut-Off Date based on
                the
                original amortization schedule;

            

    

     

    
      	 	
              (ix)

            	
              the
                Loan-to-Value Ratio at origination;

            

    

     

    
      	 	
              (x)

            	
              the
                value of any Additional Collateral at
                origination;

            

    

     

    
      	 	
              (xi)

            	
              the
                Loan-to-Collateral Value Ratio at
                origination;

            

    

     

    
      	 	
              (xii)

            	
              the
                Loan Rate in effect immediately following the Cut-Off
                Date;

            

    

     

    
      	 	
              (xiii)

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

            

    

     

    
      	 	
              (xiv)

            	
              the
                stated maturity date;

            

    

     

    
      	 	
              (xv)

            	
              the
                Master Servicing Fee Rate and the Servicing Fee Rate, if
                any;

            

    

     

    
      	 	
              (xvi)

            	
              whether
                such loan is an Additional Collateral Mortgage Loan or an Employee
                Loan;

            

    

     

    
      	 	
              (xvii)

            	
              the
                last Due Date on which a Monthly Payment was actually applied to
                the
                unpaid Scheduled Principal Balance;

            

    

     

    
      	 	
              (xviii)

            	
              the
                original principal balance of the Mortgage
                Loan;

            

    

     

    
      	 	
              (xix)

            	
              the
                Scheduled Principal Balance of the Mortgage Loan on the Cut-Off Date
                and a
                code indicating the purpose of the Mortgage Loan (i.e.,
                purchase financing, rate/term refinancing, cash-out
                refinancing);

            

    

     

    
      	 	
              (xx)

            	
              the
                Index and Gross Margin specified in related Mortgage
                Note;

            

    

     

    
      	 	
              (xxi)

            	
              the
                next Adjustment Date, if
                applicable;

            

    

     

    
      	 	
              (xxii)

            	
              the
                Maximum Loan Rate, if applicable;

            

    

     

    
      	 	
              (xxiii)

            	
              the
                Value of the Mortgaged Property;

            

    

     

    
      	 	
              (xxiv)

            	
              the
                sale price of the Mortgaged Property, if
                applicable;

            

    

     

    
      	 	
              (xxv)

            	
              the
                product code;

            

    

     

    
      	 	
              (xxvi)

            	
              the
                Expense Fee Rate therefor;

            

    

    
       

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    
      	 	
              (xxvii)

            	
              the
                Servicer that is servicing such Mortgage Loan and the originator
                of such
                Mortgage Loan; and

            

    

     

    
      	 	
              (xxviii)

            	
              whether
                the Mortgage Loan is an Adjustable Rate Mortgage Loan, a Three-Year
                Hybrid
                Mortgage Loan, a Five-Year Hybrid Mortgage Loan, a Seven-Year Hybrid
                Mortgage Loan or a Ten-Year Hybrid Mortgage Loan.
                

            

    

     

    Information
      set forth in clauses (ii) and (iii) above regarding each Mortgagor and the
      related Mortgaged Property shall be confidential and the Indenture Trustee
      (or
      the Master Servicer) shall not disclose such information except to the extent
      disclosure may be required by any law or regulatory or administrative authority;
      provided,
      however,
      that
      the Trustee may disclose on a confidential basis any such information to its
      agents, attorneys and any auditors in connection with the performance of its
      responsibilities hereunder.

    

    The
      Mortgage Loan Schedule, as in effect from time to time, shall also set forth
      the
      following information with respect to the Mortgage Loans in the aggregate as
      of
      the Cut-Off Date: (1) the number of Mortgage Loans; (2) the current
      Scheduled Principal Balance of the Mortgage Loans; (3) the weighted average
      Loan Rate of the Mortgage Loans; and (4) the weighted average remaining
      months to maturity of the Mortgage Loans. The Mortgage Loan Schedule shall
      be
      amended from time to time by the Seller in accordance with the provisions of
      this Agreement.

     

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

     

    “Mortgaged
      Property”:
      Either
      of (x) the fee simple or leasehold interest in real property, together with
      improvements thereto including any exterior improvements to be completed within
      120 days of disbursement of the related Mortgage Loan proceeds, or (y) in the
      case of a Cooperative Loan, the related Cooperative Shares and Proprietary
      Lease, securing the indebtedness of the Mortgagor under the related Mortgage
      Loan.

     

    “Mortgagor”:
      The
      obligor on a Mortgage Note.

     

    “Net
      Liquidation Proceeds”:
      With
      respect to any Liquidated Mortgage Loan or any other disposition of related
      Mortgaged Property (including REO Property), the related Liquidation Proceeds
      net of Advances, related Servicing Advances, Master Servicing Fee, related
      Servicing Fees and any other accrued and unpaid servicing fees received and
      retained in connection with the liquidation of such Mortgage Loan or Mortgaged
      Property, and any related Retained Interest.

     

    “Net
      Loan Rate”:
      With
      respect to any Mortgage Loan (or the related REO Property), as of any date
      of
      determination, a per annum rate of interest equal to the then applicable Loan
      Rate for such Mortgage Loan minus the related Servicing Fee Rate, Master
      Servicing Fee Rate and Retained Rate, if any.

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

     

    “Nonrecoverable”:
      The
      determination by the Master Servicer or the related Servicer in respect of
      a
      delinquent Mortgage Loan that if it were to make an Advance in respect thereof,
      such amount would not be recoverable from any collections or other recoveries
      (including Liquidation Proceeds) on such Mortgage Loan.

     

    “Note”:
      Any of
      the Class A-1, Class A-2A, Class A-2B, Class A-3A, Class A-3B, Class A-X, Class
      B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6
      Notes.

     

    “Note
      Interest Rate”:
      With respect to each Class of Notes and any Payment Date, the applicable per
      annum rate described in the footnotes to the table in the Preliminary Statement
      hereto:

     

    “Note
      Payment Account”:
      The
      account maintained by the Securities Administrator pursuant to Section 4.04
      hereof which shall be entitled “Note Payment Account, Wells Fargo Bank, N.A., as
      Securities Intermediary for LaSalle Bank National Association, as Indenture
      Trustee, in trust for the registered Noteholders of Thornburg Mortgage
      Securities Trust 2007-2, Mortgage-Backed Notes, Series 2007-2” and which must be
      an Eligible Account.

     

    “Note
      Principal Amount”:
      With respect to each Note of a given Class (other than a Notional Note) and
      any
      date of determination, the product of (i) the Class Principal Amount of such
      Class and (ii) the applicable Percentage Interest of such Note.

     

    “Note
      Register”
and
      “Note
      Registrar”:
      As
      defined in the Indenture.

     

    “Noteholder”
or
      “Holder”:
      As
      defined in the Indenture.

     

    “Notional
      Note”:
      Any
      Class A-X Note.

     

    “Offered
      Notes”:
      Any
      Class A-1, Class A-2A, Class A-2B, Class A-3A and Class A-3B Notes.

     

    “Offering
      Documents”:
      The
      Prospectus Supplement, the Prospectus and the Private Placement
      Memorandum.

     

    “Officer’s
      Certificate”:
      A
      certificate signed by the Chairman of the Board, the Vice Chairman of the Board,
      the President or a vice president (however denominated), or by the Treasurer,
      the Secretary, or one of the assistant treasurers or assistant secretaries
      of
      the Seller, the Master Servicer, the Securities Administrator or the Depositor,
      as applicable.

     

    “One-Month
      LIBOR”:
      In the
      case of the Offered Notes, with respect to the first Accrual Period, the Initial
      One-Month LIBOR
      Rate. With respect to each subsequent Accrual Period, a per annum rate
      determined on the LIBOR Determination Date in the following manner by the
      Securities Administrator on the basis of the “Interest Settlement Rate” set by
      the British Bankers’ Association (“BBA”)
      for
      one-month United States dollar deposits, as such rates appear on the Telerate
      Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination
      Date.

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

     

    (a) If
      on
      such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
      appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
      Telerate Page 3750 is not available on such date, the Securities Administrator
      will obtain such rate from Reuters’ “page LIBOR 01” or Bloomberg’s page “BBAM.”
If such rate is not published for such LIBOR Determination Date,
      One-Month LIBOR
      for
      such date will be the most recently published Interest Settlement Rate. In
      the
      event that the BBA no longer sets an Interest Settlement Rate, the Securities
      Administrator will designate an alternative index that has performed, or that
      the Securities Administrator expects to perform, in a manner substantially
      similar to the BBA’s Interest Settlement Rate. 

     

    (b) The
      establishment of One-Month LIBOR by the Securities Administrator and the
      Securities Administrator’s subsequent calculation of Note Interest Rates
      applicable to the Offered Notes for the relevant Accrual Period, in the absence
      of manifest error, will be final and binding.

     

    “One-Year
      LIBOR”:
      With
      respect to the Offered Notes and any Accrual Period in which the Note Interest
      Rate of a Class of Offered Notes is indexed off of One-Year LIBOR, a per annum
      rate determined on the LIBOR Determination Date in the following manner by
      the
      Securities Administrator on the basis of the “Interest Settlement Rate” set by
      the BBA for one-year United States dollar deposits, as such rates appear on
      the
      Telerate Page 3750, as of 11:00 a.m. (London time) on such LIBOR Determination
      Date.

     

    (a) If
      on
      such a LIBOR Determination Date, the BBA’s Interest Settlement Rate does not
      appear on the Telerate Page 3750 as of 11:00 a.m. (London time), or if the
      Telerate Page 3750 is not available on such date, the Securities Administrator
      will obtain such rate from Reuters’ “page LIBOR 01” or Bloomberg’s page “BBAM.”
If such rate is not published for such LIBOR Determination Date,
      One-Year LIBOR
      for
      such date will be the most recently published Interest Settlement Rate. In
      the
      event that the BBA no longer sets an Interest Settlement Rate, the Securities
      Administrator will designate an alternative index that has performed, or that
      the Securities Administrator expects to perform, in a manner substantially
      similar to the BBA’s Interest Settlement Rate. 

     

    (b) The
      establishment of One-Year LIBOR by the Securities Administrator and the
      Securities Administrator’s subsequent calculation of Note Interest Rates
      applicable to the Offered Notes for the relevant Accrual Period, in the absence
      of manifest error, will be final and binding.

     

    “Operative
      Agreements”:
      The
      Trust Agreement, the Certificate of Trust, this Agreement, the Mortgage Loan
      Purchase Agreements, the Indenture, the Administration Agreement, the Yield
      Maintenance Agreements, the Auction Administration Agreement, the Auction Swap
      Agreement and each other document contemplated by any of the foregoing to which
      the Depositor, the Owner Trustee, the Securities Administrator, the Master
      Servicer, the Indenture Trustee or the Issuer is a party.

     

    “Opinion
      of Counsel”:
      A
      written opinion of counsel, who may, without limitation, be a salaried counsel
      for the Depositor, the Initial Seller, the Seller, the Master Servicer, the
      Securities Administrator or the Indenture Trustee, acceptable to the Indenture
      Trustee or the Securities Administrator, as applicable, but which must be
      Independent outside counsel concerning federal income tax matters.

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    

     

    “Optional
      Notes Purchase Date”:
      As
      defined in the Indenture.

     

    “Optional
      Notes Purchase Right”:
      As
      defined in the Indenture.

     

    “Original
      Applicable Credit Support Percentage”:
      With
      respect to each Class of Subordinate Notes, the corresponding percentage set
      forth below opposite its Class designation:

     

    
      	
              Class
                B-1

            	
              2.10%

            
	
              Class
                B-2

            	
              1.40%

            
	
              Class
                B-3

            	
              1.00%

            
	
              Class
                B-4

            	
              0.55%

            
	
              Class
                B-5

            	
              0.20%

            
	
              Class
                B-6

            	
              0.00%

            

    

     

    “Original
      Class Notional Amount”:
      With
      respect to the Class A-X Notes, the corresponding aggregate notional amount
      set
      forth opposite the Class designation of such Class in the Preliminary
      Statement.

     

    “Original
      Class Principal Amount”:
      With
      respect to each Class of Notes other than the Notional Notes, the corresponding
      aggregate amount set forth opposite the Class designation of such Class in
      the
      Preliminary Statement. 

     

    “Original
      Subordinated Principal Amount”:
      The
      aggregate of the Original Class Principal Amounts of the Classes of Subordinate
      Notes.

     

    “Original
      Trust Agreement”:
      The
      Trust Agreement dated as of April 20, 2007 by and between the Owner Trustee
      and
      the Depositor pursuant to which the Issuer was formed by filing of the
      Certificate of Trust.

     

    “Outstanding
      Mortgage Loan”:
      As of
      any Due Date, a Mortgage Loan with a Scheduled Principal Balance greater than
      zero, that was not the subject of a prepayment in full prior to such Due Date
      and that did not become a Liquidated Mortgage Loan prior to such Due
      Date.

     

    “Overcollateralized
      Group”:
      With
      respect to any Payment Date and any Group 1 Notes, Group 2 Notes or Group 3
      Notes as to which the aggregate Class Principal Amount thereof after giving
      effect to payments pursuant to Section 5.01(a) on such Payment Date, is less
      than the sum of (i) the Scheduled Principal Balances of the related Mortgage
      Loan Group as of the last day of the related Due Period and (ii) amounts, if
      any, on deposit in the Reserve Fund with respect to such Group or Groups of
      Notes for such Payment Date.

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    

     

    “Owner
      Trustee”:
      Wilmington Trust Company, a Delaware banking corporation, not in its individual
      capacity, but solely as owner trustee under the Trust Agreement, or any
      successor in interest which accepts its appointment as Owner Trustee and agrees
      to act in such capacity in accordance with the Trust Agreement.

     

    “Owner
      Trustee Fee”:
      The
      annual on-going fee payable by the Master Servicer on behalf of the Trust to
      the
      Owner Trustee as provided in Section 8.05 and pursuant to the terms of a
      separate fee letter agreement.

     

    “Ownership
      Certificate”:
      A
      certificate representing an undivided beneficial ownership interest in the
      Trust, substantially in the form attached as Exhibit A to the Trust
      Agreement.

     

    “Paying
      Agent”:
      Initially, the Securities Administrator, in its capacity as paying agent for
      the
      Notes under the Indenture and paying agent for the Certificates under the Trust
      Agreement, or any successor to the Securities Administrator in such
      capacity.

     

    “Payment
      Date”:
      The
      25th day of the month, or, if such day is not a Business Day, the next Business
      Day commencing in May 2007.

     

    “Payment
      Date Statement”:
      As
      defined in Section 5.04(a) hereof.

     

    “PCAOB”:
      The
      Public Company Accounting Oversight Board.

     

    “Percentage
      Interest”:
      With
      respect to any Note, a fraction, expressed as a percentage, the numerator of
      which is the Initial Note Principal Amount or Initial Note Notional Amount,
      as
      applicable, represented by such Note and the denominator of which is the
      Original Class Principal Amount or Original Class Notional Amount, as
      applicable, of the related Class. With respect to any Ownership Certificate,
      the
      Percentage Interest noted on the face of such certificate.

     

    “Permitted
      Investments”:
      Any
      one or more of the following obligations or securities acquired at a purchase
      price of not greater than par, regardless of whether issued or managed by the
      Depositor, the Securities Administrator, the Master Servicer, the Indenture
      Trustee, the Owner Trustee or any of their respective Affiliates or for which
      an
      Affiliate of the Depositor, the Indenture Trustee, the Owner Trustee, the
      Securities Administrator or the Master Servicer serves as an
      advisor:

     

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

     

    (ii) (A)
      demand and time deposits in, certificates of deposit of, bankers’ acceptances
      issued by or federal funds sold by any depository institution or trust company
      (including the Indenture Trustee, the Owner Trustee, the Master Servicer or
      the
      Securities Administrator or their agents acting in their respective commercial
      capacities) incorporated under the laws of the United States of America or
      any
      state thereof and subject to supervision and examination by federal and/or
      state
      authorities, so long as, at the time of such investment or contractual
      commitment providing for such investment, such depository institution or trust
      company or its ultimate parent has a short-term uninsured debt rating in one
      of
      the two highest available rating categories of each Rating Agency and (B) any
      other demand or time deposit or deposit which is fully insured by the
      FDIC;

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    

     

    (iii) repurchase
      obligations with respect to any security described in clause (i) above and
      entered into with a depository institution or trust company (acting as
      principal) rated A or higher by the Rating Agencies;

     

    (iv) securities
      bearing interest or sold at a discount that are issued by any corporation
      incorporated under the laws of the United States of America, the District of
      Columbia or any State thereof and that are rated by each Rating Agency in its
      highest long-term unsecured rating categories at the time of such investment
      or
      contractual commitment providing for such investment;

     

    (v) commercial
      paper (including both non-interest-bearing discount obligations and
      interest-bearing obligations) that is rated by each Rating Agency in its highest
      short-term unsecured debt rating available at the time of such
      investment;

     

    (vi) units
      of
      money market funds (which may be 12b-1 funds, as contemplated by the Commission
      under the Investment Company Act of 1940) registered under the Investment
      Company Act of 1940 including funds managed or advised by the Indenture Trustee,
      the Owner Trustee, the Master Servicer or the Securities Administrator or an
      affiliate thereof having the highest applicable rating from each Rating Agency;
      and

     

    (vii) if
      previously confirmed in writing to the Indenture Trustee or the Securities
      Administrator, any other demand, money market or time deposit, or any other
      obligation, security or investment, as may be acceptable to each Rating Agency
      in writing as a permitted investment of funds backing securities having ratings
      equivalent to its highest initial rating of the Offered Notes;

     

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

     

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

     

    “Pool
      Balance”:
      As to
      any Payment Date, the aggregate of the Scheduled Principal Balances, as of
      the
      Close of Business on the first day of the month preceding the month in which
      such Payment Date occurs, of the Mortgage Loans that were Outstanding Mortgage
      Loans on such date.

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    

     

    “Prepayment
      Penalty Amount”:
      With
      respect to any Mortgage Loan and each Payment Date, all premiums or charges,
      if
      any, paid by Mortgagors under the related Mortgage Notes as a result of full
      or
      partial Principal Prepayments collected by the applicable Servicer during the
      immediately preceding Prepayment Period, but only to the extent required to
      be
      remitted to the Master Servicer on the applicable Servicer Remittance Date
      under
      the terms of the related Servicing Agreement.

     

    “Prepayment
      Period”:
      With
      respect to any Payment Date, the calendar month preceding the month in which
      such Payment Date occurs.

     

    “Primary
      Insurance Policy”:
      Mortgage guaranty insurance, if any, on an individual Mortgage Loan, as
      evidenced by a policy or certificate.

     

    “Principal
      Balance”:
      As to
      any Mortgage Loan, other than a Liquidated Mortgage Loan, and any day, the
      related Cut-Off Date Principal Balance, minus
      all
      collections credited against the Principal Balance of such Mortgage Loan after
      the Cut-Off Date. For purposes of this definition, a Liquidated Mortgage Loan
      shall be deemed to have a Principal Balance equal to the Principal Balance
      of
      the related Mortgage Loan as of the final recovery of related Liquidation
      Proceeds and a Principal Balance of zero thereafter. As to any REO Property
      and
      any day, the Principal Balance of the related Mortgage Loan immediately prior
      to
      such Mortgage Loan becoming REO Property.

     

    “Principal
      Deficiency Amount”:
      For
      any Payment Date and for any Undercollateralized Group, the excess, if any,
      of
      the aggregate Class Principal Amount of such Undercollateralized Group for
      such
      Payment Date, after giving effect to payments pursuant to Section 5.01(a) on
      such date over the sum of (i) the Scheduled Principal Balances of the Mortgage
      Loans in the related Mortgage Loan Group as of the Close of Business on the
      last
      day in the related Due Period and (ii) amounts, if any, on deposit in the
      Reserve Fund with respect to the related Undercollateralized Group or Groups
      for
      such Payment Date.

     

    “Principal
      Distribution Amount”:
      With
      respect to any Payment Date and any Mortgage Loan Group, an amount equal to
      the
      sum of the following for each Mortgage Loan in that Mortgage Loan Group:
      (a) each Monthly Payment of principal collected or advanced on the Mortgage
      Loans by the related Servicer or the Master Servicer in respect of the related
      Due Period, (b) that portion of the Purchase Price, representing principal
      of any repurchased or purchased Mortgage Loan, deposited to the Collection
      Account during the related Prepayment Period, (c) the principal portion of
      any Substitution Adjustments deposited in the Collection Account during the
      related Prepayment Period, (d) the principal portion of all Insurance
      Proceeds received during the related Prepayment Period with respect to Mortgage
      Loans that are not yet Liquidated Mortgage Loans, (e) the principal portion
      of all Net Liquidation Proceeds received during the related Prepayment Period
      with respect to Liquidated Mortgage Loans (other than Subsequent Recoveries),
      (f) all Principal Prepayments in part or in full on Mortgage Loans applied
      by the Servicers or the Master Servicer during the related Prepayment Period,
      (g) all Subsequent Recoveries received during the related Prepayment Period
      and
      (h) on the Payment Date on which the Trust is to be terminated pursuant to
      Section 10.01 hereof, that portion of the Clean-Up Call Purchase Price in
      respect of principal.

     

    
      
         

      

      
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    “Principal
      Prepayment”:
      Any
      payment of principal made by the Mortgagor on a Mortgage Loan that is received
      in advance of its scheduled Due Date and that is not accompanied by an amount
      of
      interest representing the full amount of scheduled interest due on any Due
      Date
      in any month or months subsequent to the month of prepayment.

     

    “Privately
      Offered Notes”:
      Collectively, the Class A-X Notes and the Subordinate Notes.

     

    “Private
      Placement Memorandum”:
      The
      Confidential Private Placement Memorandum dated April 25, 2007 relating to
      the
      Privately Offered Notes.

     

    “Pro
      Rata
      Share”:
      As to
      any Payment Date and any Class of Subordinate Notes, the portion of the
      Subordinate Principal Distribution Amount allocable to such Class, equal to
      the
      product of the (a) Subordinate Principal Distribution Amount on such date and
      (b) a fraction, the numerator of which is the Class Principal Amount of that
      Class and the denominator of which is the aggregate of the Class Principal
      Amounts of all Classes of Subordinate Notes.

     

    “Proprietary
      Lease”:
      With
      respect to any Cooperative Unit, a lease or occupancy agreement between a
      Cooperative Corporation and a holder of related Cooperative Shares.

     

    “Prospectus”:
      The
      Prospectus Supplement, together with the accompanying prospectus, dated March
      26, 2007, relating to the Offered Notes.

     

    “Prospectus
      Supplement”:
      That
      certain Prospectus Supplement, dated April 25, 2007, relating to the initial
      sale of the Offered Notes.

     

    “Purchase
      Price”:
      With
      respect to any Mortgage Loan or REO Property to be purchased pursuant to or
      as
      contemplated by Section 2.04, Section 3.25 or Section 10.01 hereof, and as
      confirmed by an Officers’ Certificate from the Initial Seller or the Seller, as
      applicable, to the Indenture Trustee, an amount equal to the sum of
      (i) 100% of the Principal Balance thereof as of the date of purchase (or
      such other price as is provided in Section 10.01), plus (ii) in the case of
      (x) a Mortgage Loan, accrued interest on such Principal Balance at the
      applicable Loan Rate from the Due Date as to which interest was last covered
      by
      a payment by the Mortgagor through the end of the calendar month in which the
      purchase is to be effected, and (y) an REO Property, the sum of
      (1) accrued interest on such Principal Balance at the applicable Loan Rate
      from the Due Date as to which interest was last covered by a payment by the
      Mortgagor plus (2) REO Imputed Interest for such REO Property for each calendar
      month commencing with the calendar month in which such REO Property was acquired
      and ending with the calendar month in which such purchase is to be effected,
      net
      of the total of all net rental income, Insurance Proceeds and Liquidation
      Proceeds that as of the date of purchase had been distributed as or to cover
      REO
      Imputed Interest, plus (iii) any unreimbursed Servicing Advances and any
      unpaid Expense Fees allocable to such Mortgage Loan or REO Property, plus
      (iv) in the case of a Mortgage Loan required to be purchased pursuant to
      Section 2.04 hereof, any costs and damages incurred by the Indenture Trustee
      in
      respect of a breach or defect giving rise to the purchase obligations or by
      the
      Issuer in connection with any violation by such Mortgage Loan of any predatory-
      or abusive-lending laws.

     

    
      
         

      

      
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    “Qualified
      Substitute Mortgage Loan”:
      A
      mortgage loan substituted for a Deleted Mortgage Loan pursuant to the terms
      of
      this Agreement which must, on the date of such substitution, (i) have an
      outstanding principal balance, after application of all Monthly Payments of
      principal and interest due during or prior to the month of substitution, not
      in
      excess of, and not more than 5% less than, the Principal Balance of the Deleted
      Mortgage Loan as of the Due Date in the calendar month during which the
      substitution occurs, (ii) have a maximum loan rate not less than the
      Maximum Loan Rate of the Deleted Mortgage Loan, (iii)  have a gross margin
      equal to or greater than the Gross Margin of the Deleted Mortgage Loan, (iv)
      have the same Index as the Deleted Mortgage Loan, (v) have its next adjustment
      date not more than two months after the next Adjustment Date 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) be
      current as of the date of substitution, (viii) have a Loan-to-Value Ratio
      and a Loan-to-Collateral Value Ratio as of the date of substitution equal to
      or
      lower than the Loan-to-Value Ratio and the Loan-to-Collateral Value Ratio,
      respectively, of the Deleted Mortgage Loan as of such date, (ix) have been
      underwritten or re-underwritten in accordance with the same or substantially
      similar underwriting criteria and guidelines as the Deleted Mortgage Loan,
      (x)
      is of the same or better credit quality as the Deleted Mortgage Loan and
      (xi) conform to each representation and warranty set forth in Section 2.05
      hereof applicable to the Deleted Mortgage Loan. In the event that one or more
      mortgage loans are substituted for one or more Deleted Mortgage Loans, the
      amounts described in clause (i) hereof shall be determined on the basis of
      aggregate principal balances, the terms described in clause (vi) hereof
      shall be determined on the basis of weighted average remaining term to maturity,
      the Loan-to-Value Ratio and Loan-to-Collateral Value Ratio described in clause
      (viii) hereof shall be satisfied as to each such mortgage loan and, except
      to the extent otherwise provided in this sentence, the representations and
      warranties described in clause (x) hereof must be satisfied as to each
      Qualified Substitute Mortgage Loan or in the aggregate, as the case may
      be.

     

    “Rating
      Agency”:
      Each
      of Moody’s and S&P and any respective successors thereto. If Moody’s,
      S&P or their respective successors shall no longer be in existence, “Rating
      Agency” shall include such nationally recognized statistical rating agency or
      agencies, or other comparable Person or Persons, as shall have been designated
      by the Depositor, notice of which designation shall be given to the Indenture
      Trustee, the Securities Administrator and the Master Servicer.

     

    “Realized
      Loss”:
      With
      respect to any Liquidated Mortgage Loan, the amount of loss realized equal
      to
      the portion of the Principal Balance remaining unpaid after application of
      all
      Net Liquidation Proceeds in respect of such Liquidated Mortgage
      Loan.

     

    
      
         

      

      
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    “Recognition
      Agreement”:
      With
      respect to any Cooperative Loan, an agreement between the related Cooperative
      Corporation and the originator of such Mortgage Loan to establish the rights
      of
      such originator in the related Cooperative Property.

     

    “Record
      Date”:
      With
      respect to each Payment Date and the Offered Notes, the Business Day preceding
      the applicable Payment Date so long as such Offered Notes remain Book-Entry
      Notes and otherwise the Record Date shall be same as for the Privately Offered
      Notes. For each Class of Privately Offered Notes, the last Business Day of
      the
      calendar month preceding the month in which such Payment Date occurs.

     

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

     

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

     

    “Relevant
      Servicing Criteria”:
      The
      Servicing Criteria applicable to each party, as set forth on Exhibit Q attached
      hereto and any similar exhibit set forth in each Servicing Agreement in respect
      of each Servicer. Multiple parties can have responsibility for the same Relevant
      Servicing Criteria. With respect to a Servicing Function Participant engaged
      by
      the Master Servicer, the Securities Administrator, the Indenture Trustee (in
      its
      capacity as Custodian) or each Servicer, the term “Relevant Servicing Criteria”
may refer to a portion of the Relevant Servicing Criteria applicable to such
      parties.

     

    “Relief
      Act”:
      The
      Servicemembers Civil Relief Act, as amended.

     

    “Relief
      Act Reductions”:
      With
      respect to any Payment Date and any Mortgage Loan as to which there has been
      a
      reduction in the amount of interest collectible thereon for the most recently
      ended Due Period as a result of the application of the Relief Act or similar
      state or local law, the amount, if any, by which (i) interest collectible on
      that Mortgage Loan during such Due Period is less than (ii) one month’s interest
      on the Scheduled Principal Balance of such Mortgage Loan at the Loan Rate for
      such Mortgage Loan before giving effect to the application of the Relief Act
      or
      similar state or local law.

     

    “Remittance
      Report”:
      The
      Master Servicer’s Remittance Report to the Securities Administrator providing
      information with respect to each Mortgage Loan which is provided no later than
      the second Business Day following each Determination Date and which shall
      contain such information as may be agreed upon by the Master Servicer and the
      Securities Administrator and which shall be sufficient to enable the Securities
      Administrator to prepare the related Payment Date Statement.

     

    
      
         

      

      
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    “REO
      Account”:
      The
      account or accounts maintained by a Servicer in respect of an REO Property
      pursuant to the related Servicing Agreement.

     

    “REO
      Disposition”:
      The
      sale or other disposition of an REO Property on behalf of the
      Trust.

     

    “REO
      Imputed Interest”:
      As to
      any REO Property, for any calendar month during which such REO Property was
      at
      any time part of the Trust Estate, one month’s interest at the applicable Net
      Loan Rate on the Principal Balance of such REO Property (or, in the case of
      the
      first such calendar month, of the related Mortgage Loan if appropriate) as
      of
      the Close of Business on the Due Date in such calendar month.

     

    “REO
      Principal Amortization”:
      With
      respect to any REO Property, for any calendar month, the excess, if any, of
      (a)
      the aggregate of all amounts received in respect of such REO Property during
      such calendar month, whether in the form of rental income, sale proceeds
      (including, without limitation, that portion of the Clean-Up Call Purchase
      Price
      paid in connection with a purchase of all of the Mortgage Loans and REO
      Properties pursuant to Section 10.01 hereof that is allocable to such REO
      Property) or otherwise, net of any portion of such amounts (i) payable pursuant
      to the applicable provisions of the related Servicing Agreement in respect
      of
      the proper operation, management and maintenance of such REO Property or (ii)
      payable or reimbursable to the applicable Servicer pursuant to the applicable
      provisions of the related Servicing Agreement for unpaid Master Servicing Fees
      and Servicing Fees in respect of the related Mortgage Loan and unreimbursed
      Servicing Advances and Advances in respect of such REO Property or the related
      Mortgage Loan, over (b) the REO Imputed Interest in respect of such REO
      Property for such calendar month.

     

    “REO
      Property”:
      A
      Mortgaged Property acquired by the applicable Servicer on behalf of the Issuer
      through foreclosure or deed-in-lieu of foreclosure in accordance with the
      applicable provisions of the related Servicing Agreement.

     

    “Reportable
      Event”:
      As
      defined in Section 3.19(c).

     

    “Reporting
      Servicer”:
      As
      defined in Section 3.19(b).

     

    “Request
      for Release”:
      A
      release signed by a Servicing Officer, in the form of Exhibit F attached
      hereto.

     

    “Reserve
      Fund”:
      The
      reserve fund created and maintained by the Securities Administrator pursuant
      to
      Section 4.06 which shall be entitled “Reserve Fund, Wells Fargo Bank, N.A., as
      Securities Intermediary for LaSalle Bank National Association, as Indenture
      Trustee, in trust for the Holders of the Thornburg Mortgage Securities Trust
      2007-2 Mortgage-Backed Notes Series 2007-2, and which must be an Eligible
      Account.

     

    “Residential
      Dwelling”:
      Any
      one of the following: (i) a detached one-family dwelling, (ii) a two-
      to four-family dwelling, (iii) a one-family dwelling unit in a condominium
      project, (iv) a manufactured home, (v) a cooperative unit or (vi) a detached
      one-family dwelling in a planned unit development, none of which is a mobile
      home.

     

    
      
         

      

      
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    “Responsible
      Officer”:
      When
      used with respect to the Indenture Trustee or the Securities Administrator,
      any
      director, any vice president, any assistant vice president, any associate
      assigned to the Corporate Trust Office (or similar group) or any other officer
      of the Indenture Trustee or Securities Administrator, as applicable, customarily
      performing functions similar to those performed by any of the above designated
      officers, in each case, having direct responsibilities for the administration
      of
      the Operative Agreements to which the Indenture Trustee or the Securities
      Administrator is a party and, with respect to a particular matter, to whom
      such
      matter is referred because of such officer’s knowledge of and familiarity with
      the particular subject.

     

    “Restricted
      Classes”:
      As
      defined in Section 5.01(e).

     

    “Retained
      Interest”:
      As to
      any Employee Loans originated by Thornburg and each Payment Date, interest
      accrued on the Principal Balance thereof at the Retained Rate.

     

    “Retained
      Interest Holder”:
      With
      respect to each Employee Loan, the Initial Seller or any successor in interest
      by assignment or otherwise.

     

    “Retained
      Rate”:
      As of
      the Cut-off Date, and for each Due Period thereafter, 0.00% per annum;
provided,
      however,
      if the
      related Mortgagor of the Employee Loan ceases to be an employee or a director
      of
      Thornburg or its Affiliates, the amount of the increase in the per annum rate
      set forth in the related Mortgage Note.

     

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

     

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

     

    
      
         

      

      
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    “SASCO
      Mortgage Loan Purchase Agreement”:
      The
      mortgage loan purchase agreement between the Seller and the Depositor, dated
      as
      of April 1, 2007 regarding the sale of the Mortgage Loans, the Contractual
      Rights and the TMFI Contractual Rights by the Seller to the
      Depositor.

     

    “Scheduled Principal
      Balance”:
      With
      respect to any Mortgage Loan: (a) as of the Payment Date in May 2007, the
      Cut-Off Date Principal Balance of such Mortgage Loan,  (b) thereafter as of
      any date of determination up to and including the Payment Date on which the
      proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan
      would be distributed, the outstanding principal balance of such Mortgage Loan
      as
      of the Cut-Off Date, as shown in the Mortgage Loan Schedule, minus,
      in the
      case of each Mortgage Loan, the sum of (i) the principal portion of each
      Monthly Payment due on a Due Date subsequent to the Cut-Off Date, whether or
      not
      received, (ii) all Principal Prepayments received after the Cut-Off Date,
      to the extent distributed pursuant to Section 5.01 before such date of
      determination and (iii) all Liquidation Proceeds and Insurance Proceeds
      applied by the applicable Servicer as recoveries of principal in accordance
      with
      the applicable provisions of the related Servicing Agreement, to the extent
      distributed pursuant to Section 5.01 before such date of determination; and
      (c) as of any date of determination subsequent to the Payment Date on which
      the proceeds, if any, of a Liquidation Event with respect to such Mortgage
      Loan
      would be distributed, zero. With respect to any REO Property: (x) as of any
      date of determination up to and including the Payment Date on which the
      proceeds, if any, of a Liquidation Event with respect to such REO Property
      would
      be distributed, an amount (not less than zero) equal to the Scheduled Principal
      Balance of the related Mortgage Loan as of the date on which such REO Property
      was acquired on behalf of the Trust, minus the aggregate amount of REO Principal
      Amortization in respect of such REO Property for all previously ended calendar
      months, to the extent distributed pursuant to Section 5.01 before such date
      of determination; and (y) as of any date of determination subsequent to the
      Payment Date on which the proceeds, if any, of a Liquidation Event with respect
      to such REO Property would be distributed, zero.

     

    “Securities”:
      Collectively, the Notes and the Ownership Certificates.

     

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

     

    “Securities
      Administrator”:
      Wells
      Fargo Bank, N.A., or its successor in interest, or any successor securities
      administrator appointed as herein provided.

     

    “Securities
      Intermediary”:
      The
      Person acting as Securities Intermediary under this Agreement (which is Wells
      Fargo Bank, N.A.), its successor in interest, and any successor Securities
      Intermediary appointed pursuant to Section 4.07.

     

    “Security
      Agreement”:
      With
      respect to any Cooperative Loan, the agreement between the owner of the related
      Cooperative Shares and the originator of the related Mortgage Note that defines
      the terms of the security interest in such Cooperative Shares and the related
      Proprietary Lease.

     

    
      
         

      

      
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    “Security
      Entitlement”:
      The
      meaning specified in Section 8-102(a)(17) of the New York UCC. 

     

    “Seller”:
      TMFI,
      in its capacity as seller under the SASCO Mortgage Loan Purchase Agreement
      and
      this Agreement.

     

    “Sellers”:
      The
      Initial Seller and the Seller.

     

    “Senior
      Credit Support Depletion Date”:
      The
      date on which the Class Principal Amount of each Class of Subordinate Notes
      has
      been reduced to zero.

     

    “Senior
      Percentage”:
      With
      respect to any Payment Date and a Mortgage Loan Group, the percentage equivalent
      of a fraction (which shall not be greater than 100%) the numerator of which
      is
      the aggregate of the Class Principal Amount of the Class or Classes of Offered
      Notes relating to that Mortgage Loan Group immediately prior to such Payment
      Date and the denominator of which is the Scheduled Principal Balance of all
      Mortgage Loans in that Mortgage Loan Group for that Payment Date; provided, however,
      that on
      any Payment Date after a Senior Termination Date has occurred with respect
      to a
      Mortgage Loan Group, the Senior Percentage for such Mortgage Loan Group will
      be
      equal to 0%; and, provided,
      further,
      that on
      any Payment Date after a Senior Termination Date has occurred with respect
      to
      two Mortgage Loan Groups, the Senior Percentage of the remaining Offered Notes
      is the percentage equivalent of a fraction, the numerator of which is the
      aggregate of the Class Principal Amounts of the remaining Class or Classes
      of
      Offered Notes immediately prior to such date and the denominator of which is
      the
      aggregate of the Class Principal Amounts of all Classes of Notes, immediately
      prior to such date.

     

    “Senior
      Prepayment Percentage”:
      For
      each Mortgage Loan Group and any Payment Date occurring before May 2014, 100%.
      Except as provided herein, the Senior Prepayment Percentage for each Mortgage
      Loan Group and any Payment Date occurring on or after the seventh anniversary
      of
      the first Payment Date will be as follows: (i) from May 2014 through April
      2015, the related Senior Percentage plus 70% of the related Subordinate
      Percentage for such Payment Date; (ii) from May 2015 through April 2016,
      the related Senior Percentage plus 60% of the related Subordinate Percentage
      for
      such Payment Date; (iii) from May 2016 through April 2017, the related
      Senior Percentage plus 40% of the related Subordinate Percentage for such
      Payment Date; (iv) from May 2017 through April 2018, the related Senior
      Percentage plus 20% of the related Subordinate Percentage for such Payment
      Date;
      and (v) from and after May 2018, the related Senior Percentage for such
      Payment Date; provided,
      however, that
      there shall be no reduction in the Senior Prepayment Percentage for any Mortgage
      Loan Group on a Payment Date, unless the Step Down Conditions are satisfied
      with
      respect to such Payment Date; and provided,
      further,
      that if
      on any Payment Date occurring on or after the Payment Date in May 2014, the
      Senior Percentage for such Mortgage Loan Group exceeds the initial Senior
      Percentage for such Mortgage Loan Group, the Senior Prepayment Percentage for
      each Mortgage Loan Group for such Payment Date will again equal
      100%.

     

    Notwithstanding
      the above, (i) if on any Payment Date prior to May 2010 the Two Times Test
      is
      satisfied, the Senior Prepayment Percentage for each Mortgage Loan Group will
      equal the related Senior Percentage for such Payment Date plus 50% of an amount
      equal to the Subordinate Percentage for such Payment Date and (ii) if
      on any
      Payment Date in or after May 2010 the Two Times Test is satisfied, the Senior
      Prepayment Percentage for each Mortgage Loan Group will equal the Senior
      Percentage for such Payment Date; provided,
      however,
      on any
      Payment Date after a Senior Termination Date has occurred with respect to a
      Mortgage Loan Group, the Servicer Prepayment Percentage will equal 0% for the
      related Mortgage Loan Group.

     

    
      
         

      

      
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    “Senior
      Principal Distribution Amount”:
      For
      each Mortgage Loan Group and any Payment Date, the sum of: 

     

    (1) the
      product of (a) the related Senior Percentage and (b) the principal portion
      of
      each Monthly Payment on each Mortgage Loan in the related Mortgage Loan Group
      due during the related Due Period;

     

    (2) the
      product of (a) the related Senior Prepayment Percentage and (b) each of the
      following amounts: (i) the principal portion of each full and partial Principal
      Prepayment made by a borrower on a Mortgage Loan in the related Mortgage Loan
      Group during the related Prepayment Period, (ii) each other unscheduled
      collection, including any Subsequent Recovery, Insurance Proceeds and Net
      Liquidation Proceeds (other than with respect to any Mortgage Loan in the
      related Mortgage Loan Group that was finally liquidated during the related
      Prepayment Period), representing or allocable to recoveries of principal of
      Mortgage Loans received during the related Prepayment Period and (iii) the
      principal portion of all proceeds of the purchase (or, in the case of a
      Qualified Substitution Mortgage Loan, amounts representing a Substitution
      Adjustment) of any Mortgage Loan in the related Mortgage Loan Group actually
      received by the Securities Administrator during the related Prepayment
      Period;

     

    (3) with
      respect to unscheduled recoveries allocable to principal of any Mortgage Loan
      in
      the related Mortgage Loan Group that was finally liquidated during the related
      Prepayment Period, the lesser of (a) the related Net Liquidation Proceeds
      allocable to principal and (b) the product of the related Senior Prepayment
      Percentage for that date and the remaining Scheduled Principal Balance of such
      Mortgage Loan at the time of liquidation; and

     

    (4) any
      amounts described in clauses (1) through (3) for any previous Payment Date
      that
      remain unpaid.

     

    “Senior
      Termination Date”:
      For
      any Mortgage Loan Group, the date on which the aggregate Class Principal Amount
      of the related Class or Classes of Offered Notes is reduced to
      zero.

     

    “Servicer”:
      Each
      of the several primary servicers of the Mortgage Loans as set forth in Exhibit
      N
      hereto and any successors thereto or replacement therefor. 

     

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    

     

    “Servicer
      Remittance Date”:
      With
      respect to each Mortgage Loan, the 18th day of each month, or the next Business
      Day if such 18th day is not a Business Day or if provided in the related
      Servicing Agreement, the preceding Business Day if such 18th
      day is
      not a Business Day.

     

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

     

    “Servicing
      Account”:
      Any
      account established and maintained for the benefit of the Master Servicer or
      the
      Trust by a Servicer with respect to the related Mortgage Loans and any REO
      Property, pursuant to the terms of the respective Servicing
      Agreement.

     

    “Servicing
      Advances”:
      With
      respect to any Servicer or the Master Servicer (including the Indenture Trustee
      in its capacity as successor Master Servicer), all customary, reasonable and
      necessary “out of pocket” costs and expenses (including reasonable attorneys’
fees and expenses) incurred by any Servicer or the Master Servicer in the
      performance of its servicing obligations hereunder, including, but not limited
      to, the cost of (i) the preservation, restoration, inspection and protection
      of
      the Mortgaged Property, (ii) any enforcement or judicial proceedings, including
      foreclosures, (iii) the management and liquidation of the REO Property and
      (iv)
      compliance with the obligations under Article III hereof or the related
      Servicing Agreements.

     

    “Servicing
      Agreement”:
      The
      servicing agreements relating to the Mortgage Loans as set forth in Exhibit
      N
      hereto, servicing arrangements for any Mortgage Loans under the Seller’s
      Correspondent Sellers Guide, and any other servicing agreement entered into
      between a successor servicer and the Seller or the Indenture Trustee on behalf
      of the Trust pursuant to the terms hereof.

     

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

     

    “Servicing
      Fee”:
      With
      respect to each Servicer and each Mortgage Loan serviced by such Servicer and
      for any calendar month, the fee payable to such Servicer determined pursuant
      to
      the related Servicing Agreement.

     

    “Servicing
      Fee Rate”:
      With
      respect to each Mortgage Loan, the per annum servicing fee rate set forth on
      the
      Mortgage Loan Schedule.

     

    “Servicing
      Function Participant”:
      Any
      Sub-Servicer or Subcontractor, other than each Servicer, the Master Servicer,
      the Trustee, the Custodian and the Securities Administrator, in each case that
      is participating in the servicing function within the meaning of Regulation
      AB.

     

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

     

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    

     

    “Seven-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans identified as such on Schedule I hereto.

     

    “Significant
      Modification”:
      As
      defined in Section 3.25.

     

    “Significant
      Modification Loan”:
      As
      defined in Section 3.25.

     

    “S&P”:
      Standard & Poor’s Rating Services (a division of The McGraw-Hill Companies,
      Inc.).

     

    “Stated
      Maturity Date”:
      As
      defined in the Indenture.

     

    “Step
      Down Conditions”:
      As of
      any Payment Date on which any decrease in any Senior Prepayment Percentage
      may
      apply, (i) the outstanding Principal Balance of all Mortgage Loans 60 days
      or
      more Delinquent (including Mortgage Loans in REO and foreclosure), averaged
      over
      the preceding six month period, as a percentage of the aggregate of the Class
      Principal Amount of the Classes of Subordinate Notes on such Payment Date,
      does
      not equal or exceed 50% and (ii) cumulative Realized Losses with respect to
      all of the Mortgage Loans do not exceed:

     

    
      	 	
              ·

            	
              for
                any Payment Date on or after the seventh anniversary until the eighth
                anniversary of the first Payment Date, 30% of the aggregate Class
                Principal Amounts of the Subordinate Notes as of the Closing
                Date,

            

    

     

    
      	 	
              ·

            	
              for
                any Payment Date on or after the eighth anniversary until the ninth
                anniversary of the first Payment Date, 35% of the aggregate Class
                Principal Amounts of the Subordinate Notes as of the Closing
                Date,

            

    

     

    
      	 	
              ·

            	
              for
                any Payment Date on or after the ninth anniversary until the tenth
                anniversary of the first Payment Date, 40% of the aggregate Class
                Principal Amounts of the Subordinate Notes as of the Closing
                Date,

            

    

     

    
      	 	
              ·

            	
              for
                any Payment Date on or after the tenth anniversary until the eleventh
                anniversary of the first Payment Date, 45% of the aggregate Class
                Principal Amounts of the Subordinate Notes as of the Closing Date,
                and

            

    

     

    
      	 	
              ·

            	
              for
                any Payment Date on or after the eleventh anniversary of the first
                Payment
                Date, 50% of the aggregate Class Principal Amounts of the Subordinate
                Notes as of the Closing Date.

            

    

     

    “Strike
      Rate”:
      For
      the Yield Maintenance Agreement relating to the Class A-1 Notes, the excess
      of
      (i) the related Class A Available Funds Cap Rate over (ii) the Class A-1
      Margin.

     

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    

     

    For
      the
      Yield Maintenance Agreement relating to the Group 2 Notes, the excess of (i)
      the
      related Class A Available Funds Cap Rate over (ii) the weighted average of
      the
      Class A-2A Margin and Class A-2B Margin (weighted on the basis of the related
      Notes’ Class Principal Amounts for the immediately preceding Payment Date, after
      giving effect to distributions and allocations of Realized Losses and Subsequent
      Recoveries on such Payment Date, or as of the Closing Date for the first Payment
      Date).

     

    For
      the
      Yield Maintenance Agreement relating to the Group 3 Notes, the excess of (i)
      the
      related Class A Available Funds Cap Rate over (ii) the weighted average of
      the
      Class A-3A Margin and Class A-3B Margin (weighted on the basis of the related
      Notes’ Class Principal Amounts for the immediately preceding Payment Date, after
      giving effect to distributions and allocations of Realized Losses and Subsequent
      Recoveries on such Payment Date, or as of the Closing Date for the first Payment
      Date).

     

    “Subcontractor”:
      Any
      vendor, subcontractor or other Person that is not responsible for the overall
      servicing of Mortgage Loans but performs one or more discrete functions
      identified in Item 1122(d) of Regulation AB with respect to Mortgage Loans
      under
      the direction or authority of any Servicer (or a Sub-Servicer of any Servicer),
      the Master Servicer, the Trustee or the Securities Administrator.

     

    “Subordinate
      Component”:
      For
      any Payment Date and with respect to any Mortgage Loan Group, the product of
      (a)
      the excess, if any, of the aggregate Scheduled Principal Balances of the
      Mortgage Loans in the related Mortgage Loan Group, as of the first day of the
      related Due Period, plus
      any
      amounts on deposit in the Reserve Fund attributable to such Mortgage Loan Group,
      as of such Payment Date over
      the
      aggregate Class Principal Amount of the related Offered Notes immediately prior
      to such Payment Date multiplied by (b) the quotient of (i) the aggregate Class
      Principal Amount of the Subordinate Notes immediately prior to such Payment
      Date
      and (ii) the sum of the amounts described in clause (a) for each Mortgage Loan
      Group.

     

    “Subordinate
      Note”:
      Any
      one of the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 or Class B-6
      Notes.

     

    “Subordinate
      Percentage”:
      For
      each Mortgage Loan Group and any Payment Date, the difference between 100%
      and
      the related Senior Percentage for such Payment Date; provided,
      however, that
      on
      any Payment Date after a Senior Termination Date has occurred with respect
      to
      two Mortgage Loan Groups, the Subordinate Percentage will represent the entire
      interest of the Subordinate Notes in the Mortgage Loans and will be equal to
      the
      difference between 100% and the related Senior Percentage for such Payment
      Date.

     

    “Subordinate
      Prepayment Percentage”:
      For
      each Mortgage Loan Group and any Payment Date, the difference between 100%
      and
      the Senior Prepayment Percentage for such Mortgage Loan Group for such Payment
      Date.

     

    “Subordinate
      Principal Distribution Amount”:
      For
      each Mortgage Loan Group and any Payment Date, an amount equal to the sum
      of:

     

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    

     

    (1) the
      product of (a) the related Subordinate Percentage and (b) the principal portion
      of each Monthly Payment on each Mortgage Loan in the related Mortgage Loan
      Group
      due during the related Due Period;

     

    (2) the
      product of (a) the related Subordinate Prepayment Percentage and (b) each of
      the
      following amounts: (i) the principal portion of each full and partial Principal
      Prepayment made by a borrower on a Mortgage Loan in the related Mortgage Loan
      Group during the related Prepayment Period, (ii) each other unscheduled
      collection, including any Subsequent Recovery, Insurance Proceeds and Net
      Liquidation Proceeds (other than with respect to any related Mortgage Loan
      that
      was finally liquidated during the related Prepayment Period), representing
      or
      allocable to recoveries of principal of Mortgage Loans received during the
      related Prepayment Period and (iii) the principal portion of all proceeds of
      the
      purchase (or, in the case of a Qualified Substitute Mortgage Loan, amounts
      representing a Substitution Adjustment) of any Mortgage Loan in the related
      Mortgage Loan Group actually received by the Securities Administrator with
      respect to the related Prepayment Period;

     

    (3) with
      respect to unscheduled recoveries allocable to principal of any Mortgage Loan
      in
      the related Mortgage Loan Group that was finally liquidated during the related
      Prepayment Period, the related Net Liquidation Proceeds allocable to principal
      (to the extent not distributed pursuant to subsection (3) of the definition
      of
      Senior Principal Distribution Amount for the related Mortgage Loan Group);
      and

     

    (4) any
      amounts described in clauses (1) through (3) for any previous Payment Date
      that
      remain unpaid.

     

    “Sub-Servicer”:
      Any
      Person that (i) services Mortgage Loans on behalf of any Servicer, the Master
      Servicer, the Securities Administrator, the Trustee or the Custodian and (ii)
      is
      responsible for the performance (whether directly or through sub-servicers
      or
      Subcontractors) of Servicing functions required to be performed under this
      Agreement, any related Servicing Agreement or any sub-servicing agreement that
      are identified in Item 1122(d) of Regulation AB.

     

    “Subsequent Recovery”:
      With
      respect to any Payment Date and a Mortgage Loan that became a Liquidated
      Mortgage Loan in a month preceding the related Prepayment Period to such Payment
      Date and with respect to which the related Realized Loss was allocated to one
      or
      more Classes of Notes, an amount received in respect of such Liquidated Mortgage
      Loan during the related Prepayment Period, net of any reimbursable
      expenses.

     

    “Substitution
      Adjustment”:
      As
      defined in Section 2.04(d) hereof.

     

    “Surety
      Bond”:
      Not
      applicable.

     

    “Swap
      Proceeds Account”:
      The
      account maintained by the Auction Administrator pursuant to the Auction
      Administration Agreement.

     

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    

     

    “Telerate
      Page 3750”:
      The
      display currently so designated as “Page 3750” on the Dow Jones Telerate Service
      (or such other page selected by the Master Servicer as may replace Page 3750
      on
      that service for the purpose of displaying daily comparable rates on
      prices).

     

    “Ten-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans identified as such on Schedule I hereto.

     

    “Thornburg”:
      Thornburg Mortgage Home Loans, Inc., a Delaware corporation, and its successors
      and assigns.

     

    “Three-Year
      Hybrid Mortgage Loans”:
      The
      Mortgage Loans identified as such on Schedule I hereto.

     

    “TMFI”:
      Thornburg Mortgage Funding, Inc., a Delaware corporation, and its successors
      and
      assigns.

     

    “TMFI
      Contractual Rights”:
      As
      defined in the Preliminary Statement.

     

    “TMFI
      Mortgage Loan Purchase Agreement”:
      The
      mortgage loan purchase agreement between the Initial Seller and TMFI dated
      as of
      April 1, 2007, regarding the transfer of the Mortgage Loans by Initial Seller
      to
      TMFI including the Initial Seller’s rights and interest in the Servicing
      Agreements listed in Exhibit N hereto.

     

    “TMI”:
      Thornburg Mortgage, Inc., a Maryland corporation, and its successors and
      assigns.

     

    “Trust”:
      The
      Issuer. 

     

    “Trust Account”:
      The
      Collection Account, the Note Payment Account, each Servicing Account, the Swap
      Proceeds Account, the Auction Proceeds Account and the Reserve Fund, as the
      context requires.

     

    “Trust
      Account Property”:
      The
      Trust Accounts, the Certificate Distribution Account, all amounts and
      investments held from time to time in the Trust Accounts, the Certificate
      Distribution Account (whether in the form of deposit accounts, physical
      property, book-entry securities, uncertificated securities, securities
      entitlements, investment property or otherwise) and all proceeds of the
      foregoing.

     

    “Trust
      Agreement”: The
      Original Trust Agreement as amended and restated by the Amended and Restated
      Trust Agreement dated April 27, 2007 by and among the Depositor, the Owner
      Trustee and the Securities Administrator.

     

    “Trust
      Estate”:
      The
      assets subject to this Agreement and the Indenture, (including those transferred
      by the Depositor to the Issuer) and pledged by the Issuer to the Indenture
      Trustee, which assets consist of all accounts, accounts receivable, contract
      rights, general intangibles, chattel paper, instruments, documents, money,
      deposit accounts, certificates of deposit, goods, notes, drafts, letters of
      credit, advices of credit, investment property, uncertificated securities and
      rights to payment of any and every kind consisting of, arising from or relating
      to any of the following: (i) such Mortgage Loans as from time to time are
      subject to this Agreement, together with the Mortgage Files relating thereto,
      together with all collections thereon (including any Insurance Proceeds,
      Liquidation Proceeds or other recoveries) and proceeds thereof (but not
      including any Prepayment Penalty Amounts), (ii) any REO Property, together
      with
      all collections thereon (including any Insurance Proceeds, Liquidation Proceeds
      or other recoveries) and proceeds thereof, (iii) the Indenture Trustee’s rights
      with respect to the Mortgage Loans under all insurance policies required to
      be
      maintained pursuant to this Agreement and any proceeds thereof, (iv) the
      Depositor’s rights under the Mortgage Loan Purchase Agreements (including any
      security interest created thereby); (v) the Trust Accounts (subject to the
      last
      sentence of this definition), any REO Account and such assets that are deposited
      therein from time to time and any investments thereof, together with any and
      all
      income, proceeds and payments with respect thereto, (vi) all right, title and
      interest of the Issuer in and to each security or pledge agreement or guarantee
      in respect of Additional Collateral (including any Surety Bond supporting any
      Additional Collateral Mortgage Loan, the Issuer’s security interest in and to
      any Additional Collateral and the Issuer’s rights to require payment in any
      Additional Collateral Mortgage Loan pursuant to the related Servicing
      Agreement), (vii) all right, title and interest of the Issuer in and to
      each of the Servicing Agreements, (viii) all right, title and interest of the
      Issuer under the Administration Agreement and the Yield Maintenance Agreements
      and (ix) all proceeds of the foregoing. Notwithstanding the foregoing, however,
      the Trust Fund specifically excludes (1) all payments and other collections
      of
      interest and principal due on the Mortgage Loans on or before the Cut-Off Date
      and principal received before the Cut-Off Date (except any principal collected
      as part of a payment due after the Cut-Off Date), (2) all income and gain
      realized from Permitted Investments of funds on deposit in the Collection
      Account and the Note Payment Account, (3) any Prepayment Penalty Amounts and
      (4)
      any Retained Interest.

     

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    

     

    “Two
      Times Test”:
      As to
      any Payment Date, (i) the Aggregate Subordinate Percentage is at least two
      times
      the Aggregate Subordinate Percentage as of the Closing Date; (ii) the aggregate
      of the Principal Balances of all Mortgage Loans Delinquent 60 days or more
      (including Mortgage Loans in REO and foreclosure), averaged over the preceding
      six-month period, as a percentage of the aggregate of the Class Principal
      Amounts of the Subordinate Notes, does not equal or exceed 50%; and (iii) on
      or
      after the Payment Date in May 2010, cumulative Realized Losses do not exceed
      30%
      of the Original Subordinated Principal Amount, or prior to the Payment Date
      in
      March 2010, cumulative Realized Losses do not exceed 20% of the Original
      Subordinated Principal Amount.

     

    “Undercollateralized
      Group”:
      With
      respect to any Payment Date, any Group 1 Notes, Group 2 Notes or Group 3 Notes
      as to which the aggregate Class Principal Amount thereof, after giving effect
      to
      distributions pursuant to Section 5.01(a) on such Payment Date, is greater
      than
      the sum of (i) the Scheduled Principal Balances of the related Mortgage Loan
      Group as of the last day of the related Due Period and (ii) amounts, if any,
      then on deposit in the Reserve Fund with respect to such Group or Groups of
      Notes for such Payment Date. 

     

    “Undercollateralization
      Payment”:
      As
      defined in Section 5.01(f)(ii).

     

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    

     

    “Uniform
      Commercial Code”:
      The
      Uniform Commercial Code as in effect in any applicable jurisdiction from time
      to
      time.

     

    “Uninsured
      Cause”:
      Any
      cause of damage to a Mortgaged Property such that the complete restoration
      of
      such property is not fully reimbursable by the hazard insurance policies
      required to be maintained on such Mortgaged Property.

     

    “Value”:
      With
      respect to any Mortgage Loan and the related Mortgaged Property, the lesser
      of:

     

    (i) the
      value
      of such Mortgaged Property as determined by an appraisal, or an automated
      valuation model (AVM) in lieu of an appraisal, made for the originator of the
      Mortgage Loan at the time of origination of the Mortgage Loan by an appraiser
      who met the minimum requirements of Title XI of the Financial Institution
      Reform, Recovery and Enforcement Act of 1989 and the regulations promulgated
      thereunder; and 

     

    (ii) the
      purchase price paid for the related Mortgaged Property by the Mortgagor with
      the
      proceeds of the Mortgage Loan; 

     

    provided,
      however,
      that in
      the case of a Refinancing Mortgage Loan, such value of the Mortgaged Property
      is
      generally based solely upon the value determined by an appraisal made for the
      originator of such Refinancing Mortgage Loan at the time of origination by
      an
      appraiser who met the minimum requirements of Title XI of the Financial
      Institution Reform, Recovery and Enforcement Act of 1989 and the regulations
      promulgated thereunder.

     

    “Voting
      Rights”:
      The
      portion of the voting rights of all of the Notes which is allocated to such
      Note. 99% of the voting rights shall be allocated among the Classes of Notes
      (other than the Class A-X Notes), pro
      rata,
      based
      on a fraction, expressed as a percentage, the numerator of which is the Class
      Principal Amount of such Class and the denominator of which is the aggregate
      of
      the Class Principal Amounts then outstanding and 1% of the voting rights shall
      be allocated to the Holders of the Class A-X Notes. The voting rights allocated
      to a Class of Notes shall be allocated among all Holders of such Class,
pro
      rata,
      based
      on a fraction the numerator of which is the Note Principal Amount or Note
      Notional Amount of each Note of such Class and the denominator of which is
      the
      Class Principal Amount or Class Notional Amount of such Class; provided,
      however,
      that
      any Note registered in the name of the Depositor, the Master Servicer, the
      Securities Administrator, the Indenture Trustee, the Owner Trustee or any of
      their respective affiliates shall not be included in the calculation of Voting
      Rights.

     

    “Writedown
      Amount”:
      The
      reduction described in Section 5.03(c).

     

    “Yield
      Maintenance Agreement”:
      Any of
      the Group 1 Yield Maintenance Agreement, the Group 2 Yield Maintenance Agreement
      or the Group 3 Yield Maintenance Agreement, as applicable. 

     

    “Yield
      Maintenance Amount”:
      For
      any Payment Date, the amount, if any, to be paid by the Yield Maintenance
      Counterparty to the Securities Administrator pursuant to a Yield Maintenance
      Agreement, as calculated by the Yield Maintenance Counterparty based on
      information in the Payment Date Statement delivered to it pursuant to Section
      5.04.

     

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    

     

    “Yield
      Maintenance Counterparty”:
      The
      Royal Bank of Scotland plc.

     

    SECTION
      1.02. Accounting.

     

    Unless
      otherwise specified herein, for the purpose of any definition or calculation,
      whenever amounts are required to be netted, subtracted or added or any
      distributions are taken into account such definition or calculation and any
      related definitions or calculations shall be determined without duplication
      of
      such functions.

     

    ARTICLE
      II

     

    CONVEYANCE
      OF MORTGAGE LOANS;

     

    SECTION
      2.01. Conveyance
      of Mortgage Loans.

     

    In
      consideration of the Issuer’s delivery of the Notes and the Ownership
      Certificates to the Depositor or its designee, and concurrently with the
      execution and delivery of this Agreement, the Depositor does hereby transfer,
      assign, set over and otherwise convey to the Issuer without recourse, subject
      to
      Sections 2.02, 2.03, 2.04 and 2.05, all of the right, title and interest of
      the
      Depositor in and to the Trust Estate. To facilitate the pledge of the Trust
      Estate to the Indenture Trustee pursuant to the Indenture, the Issuer hereby
      directs the Depositor to assign and deliver the Trust Estate directly to the
      Indenture Trustee. The Indenture Trustee declares that, subject to the review
      provided for in Section 2.02, it has received and shall hold the Trust Estate,
      as Indenture Trustee, in trust, for the benefit and use of the Securityholders
      and for the purposes and subject to the terms and conditions set forth in this
      Agreement and the Indenture. Concurrently with such receipt, the Issuer has
      issued and delivered the Securities to or upon the order of the Depositor,
      in
      exchange for the Trust Estate.

     

    The
      foregoing sale, transfer, assignment, set-over, deposit and conveyance does
      not
      and is not intended to result in creation or assumption by the Issuer or the
      Indenture Trustee of any obligation of the Depositor, the Sellers or any other
      Person in connection with the Mortgage Loans or any other agreement or
      instrument relating thereto except as specifically set forth herein. Upon the
      issuance of the Notes, ownership in the Trust Estate shall be vested in the
      Issuer, subject to the lien created by the Indenture in favor of the Indenture
      Trustee, for the benefit of the Noteholders. 

     

    For
      purposes of complying with the requirements of the Asset-Backed Securities
      Facilitation Act of the State of Delaware, 6 Del. C. § 2701A, et seq. (the
“Securitization
      Act”),
      each
      of the parties hereto hereby agrees that:

     

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (i)

            	
              any
                property, assets or rights purported to be transferred, in whole
                or in
                part, by the Depositor pursuant to this Agreement shall be deemed
                to no
                longer be the property, assets or rights of the
                Depositor;

            

    

     

    
      	 	
              (ii)

            	
              none
                of the Depositor, its creditors or, in any insolvency proceeding
                with
                respect to the Depositor or the Depositor’s property, a bankruptcy
                trustee, receiver, debtor, debtor in possession or similar person,
                to the
                extent the issue is governed by Delaware law, shall have any rights,
                legal
                or equitable, whatsoever to reacquire (except pursuant to a provision
                of
                this Agreement), reclaim, recover, repudiate, disaffirm, redeem or
                recharacterize as property of the Depositor any property, assets
                or rights
                purported to be transferred, in whole or in part, by the Depositor
                pursuant to this Agreement (including the
                Assignment);

            

    

     

    
      	 	
              (iii)

            	
              in
                the event of a bankruptcy, receivership or other insolvency proceeding
                with respect to the Depositor or the Depositor’s property, to the extent
                the issue is governed by Delaware law, such property, assets and
                rights
                shall not be deemed to be part of the Depositor’s property, assets, rights
                or estate; and

            

    

     

    
      	 	
              (iv)

            	
              the
                transaction contemplated by this Agreement shall constitute a
                “securitization transaction” as such term is used in the Securitization
                Act.

            

    

     

    In
      connection with such transfer and assignment, the Initial Seller, on behalf
      of
      the Seller, the Depositor and the Issuer, does hereby deliver on the Closing
      Date, unless otherwise specified in this Section 2.01, to, and deposit with
      the
      Indenture Trustee, or the Custodian as its designated agent, the following
      documents or instruments with respect to each Mortgage Loan (a “Mortgage
      File”)
      so
      transferred and assigned:

     

    
      	 	
              (i)

            	
              the
                original Mortgage Note, endorsed either on its face or by allonge
                attached
                thereto in blank or in the following form: “Pay to the order of LaSalle
                Bank National Association, as Indenture Trustee for Thornburg Mortgage
                Securities Trust 2007-2, without recourse” or in blank, or with respect to
                any lost Mortgage Note, an original Lost Note Affidavit stating that
                the
                original mortgage note was lost, misplaced or destroyed, together
                with a
                copy of the related mortgage note; provided,
                however,
                that such substitutions of Lost Note Affidavits for original Mortgage
                Notes may occur only with respect to Mortgage Loans the aggregate
                Cut-Off
                Date Principal Balance of which is less than or equal to 2% of the
                Cut-Off
                Date Aggregate Principal Balance;

            

    

     

    
      	 	
              (ii)

            	
              originals
                or copies of any guarantee, security agreement or pledge agreement
                relating to any Additional Collateral, if applicable, and executed
                in
                connection with the Mortgage Note, assigned to the Indenture Trustee
                on
                behalf of the Issuer;

            

    

     

    
      	 	
              (iii)

            	
              except
                as provided below, for each Mortgage Loan that is not a MERS Mortgage
                Loan, the original Mortgage or a copy thereof certified by the public
                recording office in which such Mortgage has been recorded, and in
                the case
                of each MERS Mortgage Loan, the original Mortgage or a copy thereof
                certified by the public recording office in which such Mortgage has
                been
                recorded, noting the presence of the MIN for that Mortgage Loan and
                either
                language indicating that the Mortgage Loan is a MOM Loan if the Mortgage
                Loan is a MOM Loan, or if such Mortgage Loan was not a MOM Loan at
                origination, the original Mortgage or a copy thereof certified by
                the
                public recording office in which such Mortgage has been recorded
                and the
                assignment to MERS, in each case with evidence of recording thereon,
                and
                the original recorded power of attorney or a copy thereof certified
                by the
                public recording office in which such power of attorney has been
                recorded,
                if the Mortgage was executed pursuant to a power of attorney, with
                evidence of recording thereon or, if such Mortgage or power of attorney
                has been submitted for recording but has not been returned from the
                applicable public recording office, an Initial Seller certified copy
                of
                such Mortgage or power of attorney, as the case may be, a notation
                that
                the original of such unrecorded Mortgage or power of attorney, as
                applicable, has been forwarded to the public recording office, or,
                in the
                case of an unrecorded Mortgage or power of attorney, as applicable,
                that
                has been lost, a copy thereof (certified as provided for under the
                laws of
                the appropriate jurisdiction) and a written Opinion of Counsel (delivered
                at the Initial Seller’s expense) acceptable to the Indenture Trustee and
                the Depositor that an original recorded Mortgage is not required
                to
                enforce the Indenture Trustee’s interest in the Mortgage
                Loan;

            

    

     

    
      
         

      

      
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              (iv)

            	
              the
                original or a copy of each assumption, modification or substitution
                agreement, if any, relating to the Mortgage Loans, or, as to any
                assumption, modification or substitution agreement which cannot be
                delivered on or prior to the Closing Date because of a delay caused
                by the
                public recording office where such assumption, modification or
                substitution agreement has been delivered for recordation, a photocopy
                of
                such assumption, modification or substitution agreement, pending
                delivery
                of the original thereof, together with an Officer’s Certificate of the
                Initial Seller certifying that the copy of such assumption, modification
                or substitution agreement delivered to the Indenture Trustee (or
                its
                custodian) on behalf of the Issuer is a true copy and that the original
                of
                such agreement has been forwarded to the public recording
                office;

            

    

     

    
      	 	
              (v)

            	
              in
                the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                an
                original Assignment of Mortgage, in form and substance acceptable
                for
                recording. The Mortgage shall be assigned to “LaSalle Bank National
                Association, as Indenture Trustee for Thornburg Mortgage Securities
                Trust
                2007-2, without recourse” or in
                blank;

            

    

     

    
      	 	
              (vi)

            	
              in
                the case of each Mortgage Loan that is not a MERS Mortgage Loan,
                a copy of
                any intervening Assignment of Mortgage showing a complete chain of
                assignments, or, in the case of an intervening Assignment of Mortgage
                that
                has been lost, a written Opinion of Counsel (delivered at the Initial
                Seller’s expense) acceptable to the Indenture Trustee that such original
                intervening Assignment of Mortgage is not required to enforce the
                Indenture Trustee’s interest in the Mortgage
                Loans;

            

    

     

    
      
         

      

      
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              (vii)

            	
              the
                original or a copy of the lender’s title insurance policy;
                and

            

    

     

    
      	 	
              (viii)

            	
              with
                respect to any Cooperative Loan, the Cooperative Loan
                Documents.

            

    

     

    In
      connection with the assignment of any MERS Mortgage Loan, the Initial Seller
      agrees that it will take (or shall cause the applicable Servicer to take),
      at
      the expense of the Initial Seller (with the cooperation of the Depositor, the
      Seller, the Issuer, the Indenture Trustee and the Master Servicer), such actions
      as are necessary to cause the MERS® System to indicate that such Mortgage Loans
      have been assigned to the Indenture Trustee in accordance with this Agreement
      for the benefit of the Securityholders by including (or deleting, in the case
      of
      Mortgage Loans that are repurchased in accordance with this Agreement) in such
      computer files the information required by the MERS® System to identify the
      series of the Notes issued in connection with the transfer of such Mortgage
      Loans to the Thornburg Mortgage Securities Trust 2007-2.

     

    With
      respect to each Cooperative Loan the Initial Seller, on behalf of the Seller
      and
      the Depositor does hereby deliver to the Indenture Trustee (or Custodian) the
      related Cooperative Loan Documents and the Initial Seller will take (or shall
      cause the applicable Servicer to take), at the expense of the Initial Seller
      (with the cooperation of the Depositor, the Indenture Trustee and the Master
      Servicer) such actions as are necessary under applicable law (including but
      not
      limited to the Uniform Commercial Code) in order to perfect the interest of
      the
      Indenture Trustee in the related Mortgaged Property.

     

    Assignments
      of each Mortgage with respect to each Mortgage Loan that is not a MERS Mortgage
      Loan (other than a Cooperative Loan) shall be recorded; provided,
      however,
      that
      such assignments need not be recorded if, in the Opinion of Counsel (which
      must
      be from Independent Counsel and not at the expense of the Issuer or the
      Indenture Trustee) acceptable to the Indenture Trustee, each Rating Agency
      and
      the Master Servicer, recording in such states is not required to protect the
      Indenture Trustee’s interest in the related Mortgage Loans; provided,
      however,
      notwithstanding the delivery of any Opinion of Counsel, each assignment of
      Mortgage shall be submitted for recording by the Initial Seller (or the Initial
      Seller will cause the applicable Servicer to submit each such assignment for
      recording), at the cost and expense of the Initial Seller, in the manner
      described above, at no expense to the Issuer or Indenture Trustee, upon the
      earliest to occur of (1) reasonable direction by the Majority Securityholders,
      (2) the occurrence of a bankruptcy or insolvency relating to the Initial Seller,
      the Seller or the Depositor, or (3) with respect to any one Assignment of
      Mortgage, the occurrence of a bankruptcy, insolvency or foreclosure relating
      to
      the Mortgagor under the related Mortgage. Subject to the preceding sentence,
      as
      soon as practicable after the Closing Date (but in no event more than three
      months thereafter except to the extent delays are caused by the applicable
      recording office), the Initial Seller shall properly record (or the Initial
      Seller will cause the applicable Servicer to properly record), at the expense
      of
      the Initial Seller (with the cooperation of the Depositor, the Indenture Trustee
      and the Master Servicer), in each public recording office where the related
      Mortgages are recorded, each assignment referred to in Section 2.01(v) above
      with respect to a Mortgage Loan that is not a MERS Mortgage Loan.

     

    
      
         

      

      
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    LaSalle
      agrees to execute and deliver to the Depositor and the Issuer on or prior to
      the
      Closing Date an acknowledgment of receipt of the original Mortgage Note (with
      any exceptions noted), substantially in the form attached as Exhibit G-1
      hereto.

     

    If
      the
      original lender’s title insurance policy, or a copy thereof, was required to be
      but was not delivered pursuant to Section 2.01(vii) above, the Initial Seller
      shall deliver or cause to be delivered to the Indenture Trustee the original
      or
      a copy of a written commitment or interim binder or preliminary report of title
      issued by the title insurance or escrow company, with the original or a copy
      thereof to be delivered to the Indenture Trustee, promptly upon receipt thereof,
      but in any case within 175 days of the Closing Date. The Initial Seller shall
      deliver or cause to be delivered to the Indenture Trustee, promptly upon receipt
      thereof, any other documents constituting a part of a Mortgage File received
      with respect to any Mortgage Loan sold to the Depositor by the Seller and
      required to be delivered to the Indenture Trustee, including, but not limited
      to, any original documents evidencing an assumption or modification of any
      Mortgage Loan. 

     

    For
      Mortgage Loans (if any) that have been prepaid in full after the Cut-off Date
      and prior to the Closing Date, the Initial Seller, in lieu of delivering the
      above documents, herewith delivers to the Indenture Trustee, or to the Custodian
      on behalf of the Indenture Trustee, an Officer’s Certificate which shall include
      a statement to the effect that all amounts received in connection with such
      prepayment that are required to be deposited in the Collection Account have
      been
      so deposited. All original documents that are not delivered to the Indenture
      Trustee on behalf of the Issuer shall be held by the Master Servicer or the
      applicable Servicer in trust for the Indenture Trustee, for the benefit of
      the
      Issuer and the Securityholders.

     

    Upon
      discovery or receipt of notice of any materially defective document in, or
      that
      a document is missing from, a Mortgage File, the Initial Seller shall have
      90
      days to cure such defect or deliver such missing document to the Indenture
      Trustee. If the Initial Seller does not cure such defect or deliver such missing
      document within such time period, the Initial Seller shall either repurchase
      or
      substitute for such Mortgage Loan in accordance with Section 2.04
      hereof.

     

    The
      Depositor herewith delivers to the Indenture Trustee executed copies of the
      Mortgage Loan Purchase Agreements.

     

    SECTION
      2.02. Acceptance
      of the Trust Estate; Review of Documentation.

     

    Subject
      to the provisions of Section 2.01, the Owner Trustee, on behalf of the Issuer,
      acknowledges receipt of the assets transferred by the Depositor and included
      in
      the Trust Estate and has directed that the documents referred to in Section
      2.01
      and all other assets included in the definition of “Trust Estate” be delivered
      to the Indenture Trustee (or the Custodian) on its behalf.

     

    The
      Indenture Trustee hereby accepts its appointment as Custodian hereunder and
      acknowledges the receipt, subject to the provisions of Section 2.01 and subject
      to the review described below and any exceptions noted on the exception report
      described in the next paragraph below, of the documents referred to in Section
      2.01 above and all other assets included in the definition of “Trust Estate” and
      declares that, in its capacity as Custodian, it holds and will hold such
      documents and the other documents delivered to it constituting a Mortgage File,
      and that it holds or will hold all such assets and such other assets included
      in
      the definition of “Trust Estate” in trust for the exclusive use and benefit of
      all present and future Securityholders.

     

    
      
         

      

      
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    The
      Indenture Trustee further agrees, for the benefit of the Securityholders, to
      review each Mortgage File delivered to it and to certify and deliver to the
      Depositor, the Issuer, the Sellers and each Rating Agency an interim
      certification in substantially the form attached hereto as Exhibit G-2, within
      90 days after the Closing Date (or, with respect to any document delivered
      after
      the Closing Date, within 45 days of receipt and with respect to any Qualified
      Substitute Mortgage, within five Business Days after the assignment thereof)
      that, as to each Mortgage Loan listed in the Mortgage Loan Schedule (other
      than
      any Mortgage Loan paid in full or any Mortgage Loan specifically identified
      in
      the exception report annexed thereto as not being covered by such
      certification), (i) all documents required to be delivered to it pursuant
      to Section 2.01 of this Agreement are in its possession, (ii) such
      documents have been reviewed by it and have not been mutilated, damaged or
      torn
      and relate to such Mortgage Loan and (iii) based on its examination and
      only as to the foregoing, the information set forth in the Mortgage Loan
      Schedule that corresponds to items (i), (ii), (iii), (xiii), (xiv) and (xviii)
      of the Mortgage Loan Schedule (to the extent such items are required to be
      delivered to it as part of the Mortgage Files pursuant to Section 2.01)
      accurately reflects information set forth in the Mortgage File. It is herein
      acknowledged that, in conducting such review, the Indenture Trustee is under
      no
      duty or obligation to inspect, review or examine any such documents,
      instruments, certificates or other papers to determine that they are genuine,
      enforceable, or appropriate for the represented purpose or that they have
      actually been recorded or that they are other than what they purport to be
      on
      their face.

     

    No
      later
      than 180 days after the Closing Date, the Indenture Trustee shall deliver to
      the
      Issuer, the Depositor and the Sellers a final certification in the form annexed
      hereto as Exhibit G-3 evidencing the completeness of the Mortgage Files, with
      any applicable exceptions noted thereon.

     

    If,
      in
      the process of reviewing the Mortgage Files and making or preparing, as the
      case
      may be, the certifications referred to above, the Indenture Trustee finds any
      document or documents constituting a part of a Mortgage File to be missing
      or
      not conforming to the requirements set forth herein, at the conclusion of its
      review the Indenture Trustee (or the Custodian as its designated agent) shall
      promptly notify the Sellers, the Depositor and the Master Servicer. In addition,
      upon the discovery by the Issuer, the Initial Seller, the Seller or the
      Depositor (or upon receipt by the Indenture Trustee of written notification
      of
      such breach) of a breach of any of the representations and warranties made
      by
      either the Initial Seller or the Seller in the related Mortgage Loan Purchase
      Agreement in respect of any Mortgage Loan that materially adversely affects
      such
      Mortgage Loan or the interests of the related Securityholders in such Mortgage
      Loan, the party discovering such breach shall give prompt written notice to
      the
      other parties to this Agreement.

     

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    

     

    Nothing
      in this Agreement shall be construed to constitute an assumption by the Trust
      Estate, the Indenture Trustee, any Custodian or the Securityholders of any
      unsatisfied duty, claim or other liability on any Mortgage Loan or to any
      Mortgagor.

     

    Upon
      execution of this Agreement, the Depositor hereby delivers to the Indenture
      Trustee, and the Indenture Trustee acknowledges receipt of, the Mortgage Loan
      Purchase Agreements and each Servicing Agreement.

     

    SECTION
      2.03. Grant
      Clause 

     

    (a) It
      is
      intended that the conveyance by the Depositor to the Issuer of the Mortgage
      Loans and other assets in the Trust Estate, as provided for in Section 2.01
      be
      construed as a sale by the Depositor to the Issuer of the Mortgage Loans and
      other assets in the Trust Estate for the benefit of the Securityholders.
      Further, it is not intended that any such conveyance be deemed to be a pledge
      of
      the Mortgage Loans and other assets in the Trust Estate by the Depositor to
      the
      Issuer to secure a debt or other obligation of the Depositor. However, in the
      event that the Mortgage Loans and other assets in the Trust Estate are held
      to
      be property of the Depositor or if for any reason this Agreement is held or
      deemed to create a security interest in the Mortgage Loans and other assets
      in
      the Trust Estate, then it is intended that (a) this Agreement shall also be
      deemed to be a security agreement within the meaning of Articles 8 and 9 of
      the
      New York UCC (or the Uniform Commercial Code if not the New York UCC); (b)
      the
      conveyances provided for in Section 2.01 shall be deemed to be (1) a grant
      by
      the Depositor to the Issuer of a security interest in all of the Depositor’s
      right (including the power to convey title thereto), title and interest, whether
      now owned or hereafter acquired, in and to (A) the Mortgage Loans, including
      the
      Mortgage Notes, the Mortgages, any related insurance policies and all other
      documents in the related Mortgage Files, (B) all amounts payable pursuant to
      the
      Mortgage Loans in accordance with the terms thereof and (C) any and all general
      intangibles consisting of, arising from or relating to any of the foregoing,
      and
      all proceeds of the conversion, voluntary or involuntary, of the foregoing
      into
      cash, instruments, securities or other property, including without limitation
      all Liquidation Proceeds, all Insurance Proceeds, all amounts from time to
      time
      held or invested in the Trust Accounts, whether in the form of cash,
      instruments, securities or other property and (2) an assignment by the Depositor
      to the Issuer for the transfer to the Indenture Trustee of any security interest
      in any and all of the Depositor’s right (including the power to convey title
      thereto), title and interest, whether now owned or hereafter acquired, in and
      to
      the property described in the foregoing clauses (1)(A) through (C); (c) the
      possession by the Indenture Trustee or any other agent of the Issuer of Mortgage
      Notes, and such other items of property as constitute instruments, money,
      negotiable documents or chattel paper shall be deemed to be “possession by the
      secured party,” or possession by a purchaser or a person designated by such
      secured party, for purposes of perfecting the security interest pursuant to
      the
      New York UCC and any other Uniform Commercial Code (including, without
      limitation, Section 9-313, 8-313 or 8-321 thereof); and (d) notifications to
      persons holding such property, and acknowledgments, receipts or confirmations
      from persons holding such property, shall be deemed notifications to, or
      acknowledgments, receipts or confirmations from, financial intermediaries,
      bailees or agents (as applicable) of the Issuer for the purpose of perfecting
      such security interest under applicable law.

     

    
      
         

      

      
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    (b) The
      Depositor and, at the Depositor’s direction, the Sellers and the Issuer shall,
      to the extent consistent with this Agreement, take such reasonable actions
      as
      may be necessary to ensure that, if this Agreement were deemed to create a
      security interest in the Mortgage Loans and the other property of the Trust
      Estate, such security interest would be deemed to be a perfected security
      interest of first priority under applicable law and will be maintained as such
      throughout the term of this Agreement. Without limiting the generality of the
      foregoing, the Depositor shall prepare and deliver to the Issuer, and the Issuer
      shall forward for filing, or shall cause to be forwarded for filing, at the
      expense of the Depositor, all filings necessary to maintain the effectiveness
      of
      any original filings necessary under the Uniform Commercial Code to perfect
      the
      Issuer’s security interest in or lien on the Mortgage Loans as evidenced by an
      Officer’s Certificate of the Depositor, including without limitation (x)
      continuation statements, and (y) such other statements as may be occasioned
      by
      (1) any change of name of the Initial Seller, the Seller, the Depositor or
      the
      Issuer, (2) any change of location of the place of business or the chief
      executive office of the Initial Seller, the Seller or the Depositor or (3)
      any
      transfer of any interest of the Initial Seller, the Seller or the Depositor
      in
      any Mortgage Loan.

     

    (c) Neither
      the Depositor nor the Issuer shall organize under the law of any jurisdiction
      other than the State under which each is organized as of the Closing Date
      (whether changing its jurisdiction of organization or organizing under an
      additional jurisdiction) without giving 30 days prior written notice of such
      action to its immediate transferee, including the Indenture Trustee. Before
      effecting such change, each of the Depositor or the Issuer proposing to change
      its jurisdiction of organization shall prepare and file in the appropriate
      filing office any financing statements or other statements necessary to continue
      the perfection of the interests of its immediate transferees, including the
      Indenture Trustee, in the Mortgage Loans. In connection with the transactions
      contemplated by this Agreement and the Indenture, each of the Depositor and
      the
      Issuer authorizes its immediate transferee, including the Indenture Trustee
      (or
      the Securities Administrator acting on behalf of the Indenture Trustee), to
      file
      in any filing office any initial financing statements, any amendments to
      financing statements, any continuation statements, or any other statements
      or
      filings described in Section 2.03(b) and this Section 2.03(c).

     

    (d) The
      Depositor shall not take any action inconsistent with the sale by the Depositor
      of all of its right, title and interest in and to the Trust Estate and shall
      indicate or shall cause to be indicated in its records and records held on
      its
      behalf that ownership of each Mortgage Loan and the other property of the Issuer
      is held by the Issuer. In addition, the Depositor shall respond to any inquiries
      from third parties with respect to ownership of a Mortgage Loan or any other
      property of the Trust Estate by stating that it is not the owner of such
      Mortgage Loan and that ownership of such Mortgage Loan or other property of
      the
      Trust Estate is held by the Issuer on behalf of the Noteholders.

     

    SECTION
      2.04. Repurchase
      or Substitution of Mortgage Loans by the Seller.

     

    (a) Upon
      discovery or receipt of written notice that a document does not comply with
      the
      requirements of Section 2.01 hereof, or that a document is missing from, a
      Mortgage File or of the breach by the Initial Seller or the Seller of any
      representation, warranty or covenant under its

     

    
      
         

      

      
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    related
      Mortgage Loan Purchase Agreement or in Section 2.05 or Section 2.08 herein
      in respect of any Mortgage Loan which materially adversely affects the value
      of
      that Mortgage Loan or the interest therein of the Securityholders, (i) in the
      case of Mortgage Loan documentation that is not in compliance with Section
      2.01
      or is missing, the Indenture Trustee (or the Custodian as its designated agent)
      shall promptly notify the Initial Seller of such noncompliance or missing
      document and request that the Initial Seller deliver such missing document
      or
      cure such noncompliance within 90 days from the date that the Initial Seller
      was
      notified of such missing document or noncompliance, and if the Initial Seller
      does not deliver such missing document or cure such noncompliance in all
      material respects during such period, the Indenture Trustee shall enforce the
      Initial Seller’s obligation under the TMFI Mortgage Loan Purchase Agreement and
      cause the Initial Seller to repurchase that Mortgage Loan from the Trust Estate
      at the Purchase Price on or prior to the Determination Date following the
      expiration of such 90 day period or (ii) in the case of a breach of a
      representation, warranty or covenant with respect to a Mortgage Loan, the party
      discovering such breach shall notify the Initial Seller or the Seller, as
      applicable, and the Indenture Trustee of such breach (with a copy of such notice
      provided to the other parties hereto) of its representation, warranty or
      covenant made under the related Mortgage Loan Purchase Agreement, and request
      that the Initial Seller or the Seller, as applicable, cure such breach within
      90
      days from the date it was notified of the breach and if the Initial Seller
      or
      the Seller, as applicable, which caused the breach does not cure such breach
      in
      all material respects during such period, the Indenture Trustee shall enforce
      the obligation of the Initial Seller or Seller, as applicable, which caused
      the
      breach under its related Mortgage Loan Purchase Agreement and cause it to
      repurchase the Mortgage Loans from the Trust Estate at the Purchase Price on
      or
      prior to the Determination Date following the expiration of such 90 day period;
      provided,
      however,
      that, in
      connection with any such breach that could not reasonably have been cured within
      such 90 day period, if either the Initial Seller or the Seller, as applicable,
      shall have commenced to cure such breach within such 90 day period, the Initial
      Seller or the Seller, as applicable shall be permitted to proceed thereafter
      diligently and expeditiously to cure the same within the additional period
      provided under the applicable Mortgage Loan Purchase Agreement; and,
provided
      further,
      that,
      in the case of the breach of any representation, warranty or covenant made
      by
      either the Initial Seller or the Seller in Schedule III of the related Mortgage
      Loan Purchase Agreement, the Initial Seller or the Seller, as applicable, shall
      be obligated to cure such breach or purchase the affected Mortgage Loans for
      the
      Purchase Price or, if the Mortgage Loan or the related Mortgaged Property
      acquired with respect thereto has been sold, then the Initial Seller or the
      Seller, as applicable, shall pay, in lieu of the Purchase Price, any excess
      of
      the Purchase Price over the Net Liquidation Proceeds received upon such sale.
      The Purchase Price for the repurchased Mortgage Loan or such other amount due
      shall be deposited in the Collection Account on or prior to the next
      Determination Date after the obligation of the Initial Seller or Seller, as
      applicable, to repurchase such Mortgage Loan arises. The Indenture Trustee,
      upon
      receipt of written certification from the Securities Administrator of the
      related deposit in the Collection Account, shall cause the Custodian to release
      to the Initial Seller or the Seller, as applicable, the related Mortgage File
      and shall execute and deliver such instruments of transfer or assignment, in
      each case without recourse, as the Initial Seller or the Seller, as applicable,
      shall furnish to it and as shall be necessary to vest in the Initial Seller
      or
      the Seller, as applicable, any Mortgage Loan released pursuant hereto and the
      Indenture Trustee shall have no further responsibility with regard to such
      Mortgage File (it being understood that the Indenture Trustee shall have no
      responsibility for determining the sufficiency of such assignment for its
      intended purpose). In lieu of repurchasing any such Mortgage Loan as provided
      above, the Initial Seller or the Seller, as applicable, which caused the breach
      may cause such Mortgage Loan to be removed from the Trust Estate (in which
      case
      it shall become a Deleted Mortgage Loan) and substitute one or more Qualified
      Substitute Mortgage Loans in the manner and subject to the limitations set
      forth
      in Section 2.04(d) below. It is understood and agreed that the obligation of
      the
      Initial Seller or the Seller, as applicable, to cure or to repurchase (or to
      substitute for) any Mortgage Loan as to which a document is missing, a material
      defect in a constituent document exists or as to which such a breach has
      occurred and is continuing shall constitute the sole remedy against the Initial
      Seller or the Seller, as applicable, respecting such omission, defect or breach
      available to the Indenture Trustee on behalf of the
      Securityholders.

     

    
      
         

      

      
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    The
      Indenture Trustee on behalf of the Issuer shall enforce the obligations of
      the
      Initial Seller and the Seller under the related Mortgage Loan Purchase Agreement
      including, without limitation, any obligation of the Initial Seller to purchase
      a Mortgage Loan on account of missing or defective documentation or any such
      obligation of the Initial Seller or the Seller, as applicable, on account of
      a
      breach of a representation, warranty or covenant as described in this Section
      2.04(a).

     

    Any
      costs
      and expenses (including reasonable attorneys’ fees and expenses) incurred by the
      Indenture Trustee enforcing the obligations of the Initial Seller and the Seller
      under this Section 2.04(a) shall be reimbursable to the Indenture Trustee from
      amounts on deposit in the Collection Account.

     

    (b) If
      pursuant to the provisions of Section 2.04(a), the Initial Seller or the Seller
      repurchases or otherwise removes from the Trust Estate a Mortgage Loan that
      is a
      MERS Mortgage Loan, the Initial Seller or the Seller, as applicable, will take
      (or shall cause the applicable Servicer to take), at the expense of the Initial
      Seller or the Seller, as applicable (with the cooperation of the Depositor,
      the
      Indenture Trustee and the Master Servicer), such actions as are necessary to
      either (i) cause MERS to execute and deliver an Assignment of Mortgage in
      recordable form to transfer the Mortgage from MERS to the Initial Seller or
      the
      Seller, as applicable, and shall cause such Mortgage to be removed from
      registration on the MERS® System in accordance with MERS’ rules and regulations
      or (ii) cause MERS to designate on the MERS® System the Initial Seller or the
      Seller, as applicable, or its designee as the beneficial holder of such Mortgage
      Loan.

     

    (c) [Reserved].

     

    (d) As
      to any
      Deleted Mortgage Loan for which the Initial Seller or the Seller, as applicable,
      substitutes a Qualified Substitute Mortgage Loan or Mortgage Loans, such
      substitution shall be effected by the Initial Seller or the Seller, as
      applicable, delivering to the Indenture Trustee, for such Qualified Substitute
      Mortgage Loan or Mortgage Loans, the Mortgage Note, the Mortgage, the Assignment
      to the Indenture Trustee (or the Custodian on its behalf), and such other
      documents and agreements, with all necessary endorsements thereon, as are
      required by Section 2.01 hereof (subject to the exceptions provided therein),
      together with an Officers’ Certificate stating that each such Qualified
      Substitute Mortgage Loan satisfies the definition thereof and specifying the
      Substitution Adjustment (as described below), if any, in connection with such
      substitution; provided,
      however,
      that, in
      the case of any Qualified Substitute Mortgage Loan that is a MERS Mortgage
      Loan,
      the Initial Seller or the Seller, as applicable, shall provide such documents
      and take such other action with respect to such Qualified Substitute Mortgage
      Loans as are required pursuant to Section 2.01 hereof. The Indenture Trustee
      (or
      the Custodian on its behalf) shall acknowledge receipt for such Qualified
      Substitute Mortgage Loan or Loans and, within five Business Days thereafter,
      shall review such documents as specified in Section 2.02 hereof and deliver
      to
      the related Servicer, with respect to such Qualified Substitute Mortgage Loan
      or
      Loans, a certification substantially in the form attached hereto as Exhibit
      G-2,
      with any exceptions noted thereon. Within 180 days of the date of substitution,
      the Indenture Trustee (or the Custodian on its behalf) shall deliver to the
      Initial Seller or the Seller, as applicable, and the Master Servicer a
      certification substantially in the form of Exhibit G-3 hereto with respect
      to
      such Qualified Substitute Mortgage Loan or Loans, with any exceptions noted
      thereon. Monthly Payments due with respect to Qualified Substitute Mortgage
      Loans in the month of substitution are not part of the Trust Estate and will
      be
      retained by the Initial Seller or the Seller, as applicable,. For the month
      of
      substitution, payments to Securityholders will reflect the collections and
      recoveries in respect of such Deleted Mortgage Loan in the Due Period preceding
      the month of substitution and the Depositor or the Initial Seller or the Seller,
      as applicable, as the case may be, shall thereafter be entitled to retain all
      amounts subsequently received in respect of such Deleted Mortgage Loan. The
      Initial Seller or the Seller, as applicable, shall give or cause to be given
      written notice to the Securityholders that such substitution has taken place,
      shall amend the Mortgage Loan Schedule to reflect the removal of such Deleted
      Mortgage Loan from the terms of this Agreement and the substitution of the
      Qualified Substitute Mortgage Loan or Loans and shall deliver a copy of such
      amended Mortgage Loan Schedule to the Indenture Trustee. Upon such substitution,
      such Qualified Substitute Mortgage Loan or Loans shall constitute part of the
      Trust Estate and shall be subject in all respects to the terms of this Agreement
      and, in the case of a substitution effected by the Initial Seller or the Seller,
      the related Mortgage Loan Purchase Agreement, including, in the case of a
      substitution effected by the Initial Seller or the Seller, all representations
      and warranties thereof included in the related Mortgage Loan Purchase Agreement
      and all representations and warranties thereof set forth in Section 2.05 hereof,
      in each case as of the date of substitution.

     

    
      
         

      

      
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    For
      any
      month in which the Initial Seller or the Seller, as applicable, substitutes
      one
      or more Qualified Substitute Mortgage Loans for one or more Deleted Mortgage
      Loans, the Initial Seller or the Seller, as applicable, shall determine, and
      provide written certification to the Indenture Trustee as to the amount (each,
      a
“Substitution
      Adjustment”),
      if
      any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans
      exceeds the aggregate, as to each such Qualified Substitute Mortgage Loan,
      of
      the principal balance thereof as of the date of substitution, together with
      one
      month’s interest on such principal balance at the applicable Net Loan Rate. On
      or prior to the next Determination Date after the Initial Seller’s or the
      Seller’s obligation to repurchase the related Deleted Mortgage Loan arises, the
      Initial Seller or the Seller, as applicable, will deliver or cause to be
      delivered to the Securities Administrator for deposit in the Collection Account
      an amount equal to the related Substitution Adjustment, if any, and the
      Indenture Trustee, upon receipt of the related Qualified Substitute Mortgage
      Loan or Loans and an acknowledgment from the Securities Administrator of its
      receipt of the deposit to the Collection Account, shall release to the Initial
      Seller or the Seller, as applicable, the related Mortgage File or Files and
      shall execute and deliver such instruments of transfer or assignment, in each
      case without recourse, as the Initial Seller or the Seller, as applicable,
      shall
      deliver to it and as shall be necessary to vest therein any Deleted Mortgage
      Loan released pursuant hereto.

     

    
      
         

      

      
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    SECTION
      2.05. Representations
      and Warranties of the Sellers with Respect to the Mortgage
      Loans.

     

    Each
      of
      the Initial Seller and the Seller hereby represents and warrants to the
      Indenture Trustee for the benefit of the Securityholders that the
      representations and warranties made by it pursuant to Schedule III to the
      related Mortgage Loan Purchase Agreement are hereby being made to the Indenture
      Trustee for the benefit of the Securityholders and are true and correct as
      of
      the Closing Date.

     

    With
      respect to the representations and warranties incorporated in this Section
      2.05
      that are made to the best of the Initial Seller’s or the Seller’s knowledge or
      as to which either the Initial Seller or the Seller has no knowledge, if it
      is
      discovered by the Depositor, the Initial Seller, the Seller, the Master Servicer
      or the Indenture Trustee that the substance of such representation and warranty
      made by the Initial Seller or the Seller, as applicable, is inaccurate and
      such
      inaccuracy materially and adversely affects the value of the related Mortgage
      Loan or the interest therein of the Securityholders then, notwithstanding the
      Initial Seller’s or the Seller’s, as applicable, lack of knowledge with respect
      to the substance of such representation and warranty made by it being inaccurate
      at the time the representation or warranty was made, such inaccuracy shall
      be
      deemed a breach of the applicable representation or warranty.

     

    Within
      90
      days of its discovery or its receipt of notice of any such missing or materially
      defective documentation, the Initial Seller shall promptly deliver such missing
      document or cure such defect in all material respects or, in the event such
      defect cannot be cured, the Initial Seller shall repurchase the affected
      Mortgage Loan or cause the removal of such Mortgage Loan from the Trust Estate
      and substitute for it one or more Qualified Substitute Mortgage Loans in
      accordance with Section 2.04 hereof. Within 90 days of either the Initial
      Seller’s or the Seller’s discovery of its receipt of notice of any such breach
      of a representation, warranty or covenant under the related Mortgage Loan
      Purchase Agreement, the Initial Seller or the Seller, as applicable, shall
      either cure such breach in all material respects or, in the event such breach
      can not be cured, the Initial Seller or the Seller, as applicable, shall
      repurchase the affected Mortgage Loan or cause the removal of such Mortgage
      Loan
      from the Trust Estate and substitute for it one or more Qualified Substituted
      Mortgage Loans in accordance with Section 2.04 hereof.

     

    It
      is
      understood and agreed that the representations and warranties incorporated
      in
      this Section 2.05 shall survive delivery of the Mortgage Files to the Indenture
      Trustee and shall inure to the benefit of the Securityholders notwithstanding
      any restrictive or qualified endorsement or assignment. Upon discovery by any
      of
      the Depositor, the Initial Seller, the Seller, the Master Servicer or the
      Indenture Trustee of a breach of any of the foregoing representations and
      warranties which materially and adversely affects the value of any Mortgage
      Loan
      or the interests therein of the Securityholders, the party discovering such
      breach shall give prompt written notice to the other parties, and in no event
      later than two Business Days from the date of such discovery. It is understood
      and agreed that the obligations of the Initial Seller and the Seller set forth
      in Section 2.04(a) hereof to cure, substitute for or repurchase a related
      Mortgage Loan pursuant to the related Mortgage Loan Purchase Agreement
      constitute the sole remedies available to the Securityholders or to the
      Indenture Trustee on their behalf respecting a breach of the representations
      and
      warranties incorporated in this Section 2.05.

     

    
      
         

      

      
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    SECTION
      2.06. Representations
      and Warranties of the Depositor.

     

    The
      Depositor represents and warrants to the Issuer, on behalf of the
      Certificateholders, the Indenture Trustee on behalf of the Noteholders, the
      Securities Administrator and the Master Servicer as follows:

     

    (i) this
      agreement constitutes a legal, valid and binding obligation of the Depositor,
      enforceable against the Depositor in accordance with its terms, except as
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws now or hereafter in effect
      affecting the enforcement of creditors’ rights in general an except as such
      enforceability may be limited by general principles of equity (whether
      considered in a proceeding at law or in equity);

     

    (ii) immediately
      prior to the sale and assignment by the Depositor to the Indenture Trustee
      on
      behalf of the Issuer of each Mortgage Loan, the Depositor had good and
      marketable title to each Mortgage Loan (insofar as such title was conveyed
      to it
      by the Seller) subject to no prior lien, claim, participation interest,
      mortgage, security interest, pledge, charge or other encumbrance or other
      interest of any nature;

     

    (iii) as
      of the
      Closing Date, the Depositor has transferred all right, title and interest in
      the
      Mortgage Loans to the Issuer;

     

    (iv) the
      Depositor has not transferred the Mortgage Loans to the Issuer with any intent
      to hinder, delay or defraud any of its creditors; 

     

    (v) the
      Depositor has been duly incorporated and is validly existing as a corporation
      in
      good standing under the laws of Delaware, with full corporate power and
      authority to own its assets and conduct its business as presently being
      conducted;

     

    (vi) the
      Depositor is not in violation of its certificate of incorporation or by-laws
      or
      in default in the performance or observance of any material obligation,
      agreement, covenant or condition contained in any contract, indenture, mortgage,
      loan agreement, note, lease or other instrument to which the Depositor is a
      party or by which it or its properties may be bound, which default might result
      in any material adverse changes in the financial condition, earnings, affairs
      or
      business of the Depositor or which might materially and adversely affect the
      properties or assets, taken as a whole, of the Depositor;

     

    (vii) the
      execution, delivery and performance of this Agreement by the Depositor, and
      the
      consummation of the transactions contemplated hereby, do not and will not result
      in a material breach or violation of any of the terms or provisions of, or,
      to
      the knowledge of the Depositor, constitute a default under, any indenture,
      mortgage, deed of trust, loan agreement or other agreement or instrument to
      which the Depositor is a party or by which the Depositor is bound or to which
      any of the property or assets of the Depositor is subject, nor will such actions
      result in any violation of the provisions of the certificate of incorporation
      or
      by-laws of the Depositor or, to the best of the Depositor’s knowledge without
      independent investigation, any statute or any order, rule or regulation of
      any
      court or governmental agency or body having jurisdiction over the Depositor
      or
      any of its properties or assets (except for such conflicts, breaches, violations
      and defaults as would not have a material adverse effect on the ability of
      the
      Depositor to perform its obligations under this Agreement);

     

    
      
         

      

      
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    (viii) to
      the
      best of the Depositor’s knowledge without any independent investigation, no
      consent, approval, authorization, order, registration or qualification of or
      with any court or governmental agency or body of the United States or any other
      jurisdiction is required for the consummation by the Depositor of the
      transactions contemplated by this Agreement, except such consents, approvals,
      authorizations, registrations or qualifications as (a) have been previously
      obtained or (b) the failure of which to obtain would not have a material adverse
      effect on the performance by the Depositor of its obligations under, or the
      validity or enforceability of, this Agreement; and

     

    (ix) there
      are
      no actions, proceedings or investigations pending before or, to the Depositor’s
      knowledge, threatened by any court, administrative agency or other tribunal
      to
      which the Depositor is a party or of which any of its properties is the subject:
      (a) which if determined adversely to the Depositor would have a material adverse
      effect on the business, results of operations or financial condition of the
      Depositor; (b) asserting the invalidity of this Agreement or the Securities;
      (c)
      seeking to prevent the issuance of the Securities or the consummation by the
      Depositor of any of the transactions contemplated by this Agreement, as the
      case
      may be; or (d) which might materially and adversely affect the performance
      by
      the Depositor of its obligations under, or the validity or enforceability of,
      this Agreement.

     

    SECTION
      2.07. Representations
      and Warranties of the Depositor with Respect to Security Interest in the
      Mortgage Loans.
      

     

    (a)
      With
      respect to the Mortgage Notes, the Depositor represents and warrants
      that:

     

    (i) This
      Agreement creates a valid and continuing security interest (as defined in the
      Uniform Commercial Code in the Mortgage Notes in favor of the Issuer, which
      security interest is prior to all other liens, and is enforceable as such
      against creditors of and purchasers from the Issuer;

     

    (ii) The
      Mortgage Notes constitute “instruments” within the meaning of the applicable
      Uniform Commercial Code;

     

    (iii) The
      Depositor owns and has good title to the Mortgage Notes free and clear of any
      lien, claim or encumbrance of any Person;

     

    
      
         

      

      
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    (iv) The
      Depositor has received all consents and approvals required by the terms of
      the
      Mortgage Notes to the pledge of the Mortgage Notes hereunder to the
      Issuer;

     

    (v) All
      original executed copies of each Mortgage Note have been or will be delivered
      to
      the Custodian, as set forth in this Agreement;

     

    (vi) The
      Depositor has received a written acknowledgement from the Custodian that it
      is
      holding the Mortgage Notes solely on behalf and for the benefit of the Indenture
      Trustee;

     

    (vii) Other
      than the security interest granted to the Issuer pursuant to this Agreement,
      to
      cover the possibility that the transfer of the Mortgage Loans is not deemed
      to
      be a sale, the Depositor has not pledged, assigned, sold, granted a security
      interest in, or otherwise conveyed any of the Mortgage Notes. The Depositor
      has
      not authorized the filing of and is not aware of any financing statements
      against the Depositor that include a description of the collateral covering
      the
      Mortgage Notes other than a financing statement relating to the security
      interest granted to the Issuer hereunder or that has been terminated. The
      Depositor is not aware of any judgment or tax lien filings against the
      Depositor; and

     

    (viii) None
      of
      the Mortgage Notes has any marks or notations indicating that they have been
      pledged, assigned or otherwise conveyed to any Person other than the
      Issuer.

     

    (b) The
      representations and warranties set forth in this Section 2.07 shall survive
      the
      Closing Date and shall not be waived.

     

    SECTION
      2.08. Representations
      and Warranties of the Sellers.

     

    (a)
      The
      Initial Seller hereby represents and warrants to the Issuer on behalf of the
      Certificateholders and the Indenture Trustee on behalf of the Noteholders,
      the
      Securities Administrator and the Master Servicer that, as of the Closing Date
      or
      as of such date specifically provided herein:

     

    (i) the
      Initial Seller is duly organized, validly existing and in good standing as
      a
      corporation under the laws of the State of Delaware and is and will remain
      in
      compliance with the laws of each state in which any Mortgaged Property is
      located to the extent necessary to fulfill its obligations
      hereunder;

     

    (ii) the
      Initial Seller has the power and authority to hold each Mortgage Loan, to sell
      each Mortgage Loan, to execute, deliver and perform, and to enter into and
      consummate, all transactions contemplated by this Agreement. The Initial Seller
      has duly authorized the execution, delivery and performance of this Agreement,
      has duly executed and delivered this Agreement and this Agreement, assuming
      due
      authorization, execution and delivery by the other parties hereto, constitutes
      a
      legal, valid and binding obligation of the Initial Seller, enforceable against
      it in accordance with its terms except as the enforceability thereof may be
      limited by bankruptcy, insolvency or reorganization or other similar laws in
      relation to the rights of creditors generally;

     

    
      
         

      

      
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    (iii) the
      execution and delivery of this Agreement by the Initial Seller and the
      performance of and compliance with the terms of this Agreement will not violate
      the Initial Seller’s certificate of incorporation or by-laws or constitute a
      default under or result in a material breach or acceleration of, any material
      contract, agreement or other instrument to which the Initial Seller is a party
      or which may be applicable to the Initial Seller or its assets;

     

    (iv) the
      Initial Seller is not in violation of, and the execution and delivery of this
      Agreement by the Initial Seller and its performance and compliance with the
      terms of this Agreement will not constitute a violation with respect to, any
      order or decree of any court or any order or regulation of any federal, state,
      municipal or governmental agency having jurisdiction over the Initial Seller
      or
      its assets, which violation might have consequences that would materially and
      adversely affect the condition (financial or otherwise) or the operation of
      the
      Initial Seller or its assets or might have consequences that would materially
      and adversely affect the performance of its obligations and duties
      hereunder;

     

    (v) the
      Initial Seller does not believe, nor does it have any reason or cause to
      believe, that it cannot perform each and every one of its covenants contained
      in
      this Agreement;

     

    (vi) the
      Initial Seller had good, marketable and indefeasible title to the Mortgage
      Loans, free and clear of any and all liens, pledges, charges or security
      interests of any nature encumbering the Mortgage Loans and upon the payment
      of
      the purchase price under the TMFI Mortgage Loan Purchase Agreement by the
      Seller, the Seller acquired good and marketable title to the Mortgage Notes
      and
      Mortgage Loans, free and clear of all liens or encumbrances;

     

    (vii) the
      Mortgage Loans were not transferred by the Initial Seller with any intent to
      hinder, delay or defraud any creditors of the Initial Seller;

     

    (viii) there
      are
      no actions or proceedings against, or investigations known to it before any
      court, administrative or other tribunal (A) that might prohibit its entering
      into this Agreement, (B) seeking to prevent the sale of the Mortgage Loans
      to
      the Seller or the consummation of the transactions contemplated by this
      Agreement or (C) that might prohibit or materially and adversely affect the
      performance by the Initial Seller of its obligations under, or validity or
      enforceability of, this Agreement;

     

    (ix) no
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Initial
      Seller of, or compliance by the Initial Seller with, this Agreement or the
      consummation of the transactions contemplated by this Agreement, except for
      such
      consents, approvals, authorizations or orders, if any, that have been obtained;
      and

     

    (x) the
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Initial Seller, and the transfer, assignment
      and conveyance of the Mortgage Notes and the Mortgages by the Initial Seller
      to
      the Seller pursuant to the TMFI Mortgage Loan Purchase Agreement are not subject
      to the bulk transfer or any similar statutory provisions.

     

    
      
         

      

      
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    (b)
      The
      Seller hereby represents and warrants to the Issuer on behalf of the
      Certificateholders, the Indenture Trustee on behalf of the Noteholders, the
      Securities Administrator and the Master Servicer that, as of the Closing Date
      or
      as of such date specifically provided herein:

     

    (i) the
      Seller is duly organized, validly existing and in good standing as a corporation
      under the laws of the State of Delaware and is and will remain in compliance
      with the laws of each state in which any Mortgaged Property is located to the
      extent necessary to fulfill its obligations hereunder;

     

    (ii) the
      Seller has the power and authority to hold each Mortgage Loan, to sell each
      Mortgage Loan, to execute, deliver and perform, and to enter into and
      consummate, all transactions contemplated by this Agreement. The Seller has
      duly
      authorized the execution, delivery and performance of this Agreement, has duly
      executed and delivered this Agreement and this Agreement, assuming due
      authorization, execution and delivery by the other parties hereto, constitutes
      a
      legal, valid and binding obligation of the Seller, enforceable against it in
      accordance with its terms except as the enforceability thereof may be limited
      by
      bankruptcy, insolvency or reorganization or other similar laws in relation
      to
      the rights of creditors generally;

     

    (iii) the
      execution and delivery of this Agreement by the Seller and the performance
      of
      and compliance with the terms of this Agreement will not violate the Seller’s
      certificate of incorporation or by-laws or constitute a default under or result
      in a material breach or acceleration of, any material contract, agreement or
      other instrument to which the Seller is a party or which may be applicable
      to
      the Seller or its assets;

     

    (iv) the
      Seller is not in violation of, and the execution and delivery of this Agreement
      by the Seller and its performance and compliance with the terms of this
      Agreement will not constitute a violation with respect to, any order or decree
      of any court or any order or regulation of any federal, state, municipal or
      governmental agency having jurisdiction over the Seller or its assets, which
      violation might have consequences that would materially and adversely affect
      the
      condition (financial or otherwise) or the operation of the Seller or its assets
      or might have consequences that would materially and adversely affect the
      performance of its obligations and duties hereunder;

     

    (v) the
      Seller does not believe, nor does it have any reason or cause to believe, that
      it cannot perform each and every covenant contained in this
      Agreement;

     

    (vi) the
      Seller had good, marketable and indefeasible title to the Mortgage Loans, free
      and clear of any and all liens, pledges, charges or security interests of any
      nature encumbering the Mortgage Loans and upon the payment of the purchase
      price
      under the SASCO Mortgage Loan Purchase Agreement by the Depositor, the Depositor
      will have acquired good and marketable title to the Mortgage Notes and Mortgage
      Loans, free and clear of all liens or encumbrances;

     

    
      
         

      

      
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    (vii) the
      Mortgage Loans were not being transferred by the Seller with any intent to
      hinder, delay or defraud any creditors of the Seller;

     

    (viii) there
      are
      no actions or proceedings against, or investigations known to it before any
      court, administrative or other tribunal (A) that might prohibit its entering
      into this Agreement, (B) seeking to prevent the sale of the Mortgage Loans
      to
      the Depositor or the consummation of the transactions contemplated by this
      Agreement or (C) that might prohibit or materially and adversely affect the
      performance by the Seller of its obligations under, or validity or
      enforceability of, this Agreement;

     

    (ix) no
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Seller
      of,
      or compliance by the Seller with, this Agreement or the consummation of the
      transactions contemplated by this Agreement, except for such consents,
      approvals, authorizations or orders, if any, that have been obtained;
      and

     

    (x) the
      consummation of the transactions contemplated by this Agreement are in the
      ordinary course of business of the Seller, and the transfer, assignment and
      conveyance of the Mortgage Notes and the Mortgages by the Seller to the
      Depositor pursuant to the SASCO Mortgage Loan Purchase Agreement are not subject
      to the bulk transfer or any similar statutory provisions.

     

    The
      representations and warranties of the Initial Seller and the Seller set forth
      in
      this Section 2.08 shall survive the Closing Date and shall not be
      waived.

     

    SECTION
      2.09. Covenants
      of the Sellers.

     

    The
      Initial Seller and the Seller each hereby covenants that, except for the
      transfer contemplated under the related Mortgage Loan Purchase Agreement and
      the
      security interest granted thereunder to the respective purchaser in the event
      that the respective transfer is not deemed to be a sale, it will not sell,
      pledge, assign or transfer to any other Person, or grant, create, incur, assume
      or suffer to exist any lien on any Mortgage Loan, or any interest therein;
      it
      will notify the Issuer, the Indenture Trustee and the Master Servicer of the
      existence of any lien on any Mortgage Loan immediately upon discovery thereof,
      and it will defend the right, title and interest of the Issuer, in, to and
      under
      the Mortgage Loans, against all claims of third parties claiming through or
      under it; provided,
      however,
      that
      nothing in this Section 2.09 shall prevent or be deemed to prohibit either
      the
      Initial Seller or the Seller from suffering to exist upon any of the Mortgage
      Loans any liens for municipal or other local taxes and other governmental
      charges if such taxes or governmental charges shall not at the time be due
      and
      payable or if the Initial Seller or the Seller, as applicable, shall currently
      be contesting the validity thereof in good faith by appropriate proceedings
      and
      shall have set aside on its books adequate reserves with respect
      thereto.

     

    
      
         

      

      
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    ARTICLE
      III

     

    ADMINISTRATION
      AND SERVICING

    OF
      THE MORTGAGE LOANS

     

    SECTION
      3.01. Master
      Servicer to Service and Administer the Mortgage Loans. 

     

    The
      Master Servicer shall supervise, monitor and oversee the obligation of the
      Servicers to service and administer their respective Mortgage Loans in
      accordance with the terms of the applicable Servicing Agreement and, where
      applicable, the Correspondent Sellers Guide and the Master Servicing Guide,
      and
      shall have full power and authority to do any and all things which it may deem
      necessary or desirable in connection with such master servicing and
      administration. In performing its obligations hereunder, the Master Servicer
      shall act in a manner consistent with Accepted Master Servicing Practices and,
      where applicable, the Master Servicing Guide. Furthermore, the Master Servicer
      shall oversee and consult with each Servicer as necessary from time-to-time
      to
      carry out the Master Servicer’s obligations hereunder, shall receive, review and
      evaluate all reports, information and other data provided to the Master Servicer
      by each Servicer and shall cause each Servicer to perform and observe the
      covenants, obligations and conditions to be performed or observed by such
      Servicer under the applicable Servicing Agreement. The Master Servicer shall
      independently and separately monitor each Servicer’s servicing activities with
      respect to each related Mortgage Loan, reconcile the results of such monitoring
      with such information provided in the previous sentence on a monthly basis
      and
      coordinate corrective adjustments to the Servicers’ and the Master Servicer’s
      records, and based on such reconciled and corrected information, provide
      information to the Securities Administrator to permit the Securities
      Administrator to prepare the statements specified in Section 5.04 and any other
      information and statements required hereunder. The Master Servicer shall
      reconcile the results of its Mortgage Loan monitoring with the actual
      remittances of the Servicers to the related Servicing Accounts pursuant to
      the
      applicable Servicing Agreements.

     

    The
      Indenture Trustee shall furnish the Servicers and the Master Servicer with
      any
      limited powers of attorney and other documents in form acceptable to the
      Indenture Trustee, necessary or appropriate to enable the Servicers and the
      Master Servicer to service and administer the related Mortgage Loans and REO
      Property, which limited powers of attorney shall provide that the Indenture
      Trustee will not be liable for the actions or omissions of the Servicers or
      Master Servicer in exercising such powers. 

     

    The
      Master Servicer shall not without either the Issuer’s or the Indenture
      Trustee’s, as applicable, written consent (i) initiate any action, suit or
      proceeding solely under the Issuer’s or Indenture Trustee’s name without
      indicating the Master Servicer’s representative capacity or (ii) take any action
      with the intent to cause, and which actually does cause, the Indenture Trustee
      to be registered to do business in any state. The Master Servicer shall
      indemnify the Issuer and the Indenture Trustee for any and all costs,
      liabilities and expenses incurred by them in connection with the negligent
      or
      willful misuse of such powers of attorney by the Master Servicer.

     

    
      
         

      

      
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    The
      Indenture Trustee shall provide access to the records and documentation in
      possession of the Indenture Trustee (including in its capacity as Custodian
      hereunder) regarding the related Mortgage Loans and REO Property and the
      servicing thereof to the Securityholders, the FDIC, and the supervisory agents
      and examiners of the FDIC, such access being afforded only upon reasonable
      prior
      written request and during normal business hours at the office of the Indenture
      Trustee; provided,
      however,
      that,
      unless otherwise required by law, the Indenture Trustee shall not be required
      to
      provide access to such records and documentation if the provision thereof would
      violate the legal right to privacy of any Mortgagor. The Indenture Trustee
      shall
      allow representatives of the above entities to photocopy any of the records
      and
      documentation and shall provide equipment for that purpose at a charge that
      covers the Indenture Trustee’s actual costs.

     

    The
      Indenture Trustee, upon the written request of the Master Servicer, shall
      execute and deliver to the related Servicer and the Master Servicer any court
      pleadings, requests for trustee’s sale or other documents necessary or desirable
      to (i) the foreclosure or trustee’s sale with respect to a Mortgaged Property;
      (ii) any legal action brought to obtain judgment against any Mortgagor on the
      Mortgage Note or Mortgage; (iii) obtain a deficiency judgment against the
      Mortgagor; or (iv) enforce any other rights or remedies provided by the Mortgage
      Note or Mortgage or otherwise available at law or equity.

     

    SECTION
      3.02. [Reserved].

     

    SECTION
      3.03. Monitoring
      of Servicers.

     

    (a) The
      Master Servicer shall be responsible for reporting to the Indenture Trustee
      (on
      behalf of the Issuer) and the Depositor the compliance by each Servicer with
      its
      duties under the related Servicing Agreement. In the review of each Servicer’s
      activities, the Master Servicer may rely upon an officer’s certificate of the
      Servicer with regard to such Servicer’s compliance with the terms of its
      Servicing Agreement. In the event that the Master Servicer, in its judgment,
      determines that a Servicer should be terminated in accordance with its Servicing
      Agreement, or that a notice should be sent pursuant to such Servicing Agreement
      with respect to the occurrence of an event that, unless cured, would constitute
      grounds for such termination, the Master Servicer shall notify the Depositor
      and
      the Indenture Trustee thereof and the Master Servicer shall issue such notice
      of
      termination or take such other action as it deems appropriate.

     

    (b) The
      Master Servicer, for the benefit of the Issuer and the Securityholders, shall
      (acting as agent of the Issuer when enforcing the Issuer’s rights under each
      Servicing Agreement) (i) enforce the obligations of each Servicer under the
      related Servicing Agreement, and (ii) in the event that a Servicer fails to
      perform its obligations in accordance with the related Servicing Agreement,
      subject to the preceding paragraph, terminate the rights and obligations of
      such
      Servicer thereunder and act as servicer of the related Mortgage Loans or enter
      into a new Servicing Agreement with a successor Servicer selected by the Master
      Servicer which the Master Servicer shall cause the Indenture Trustee to
      acknowledge; provided,
      however,
      it is
      understood and acknowledged by the parties hereto that there will be a period
      of
      transition (not to exceed 90 days) before the actual servicing functions can
      be
      fully transferred to such successor Servicer. Such enforcement, including,
      without limitation, the legal prosecution of claims, termination of Servicing
      Agreements and the pursuit of other appropriate remedies, shall be in such
      form
      and carried out to such an extent and at such time as the Master Servicer,
      in
      its good faith business judgment, would require were it the owner of the related
      Mortgage Loans. The Master Servicer shall pay the costs of such enforcement
      at
      its own expense except as provided in paragraph (c) below, provided that the
      Master Servicer shall not be required to prosecute or defend any legal action
      except to the extent that the Master Servicer shall have received reasonable
      indemnity for its costs and expenses in pursuing such action. 

     

    
      
         

      

      
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    (c) To
      the
      extent that the costs and expenses of the Master Servicer related to any
      termination of a Servicer, appointment of a successor Servicer or the transfer
      and assumption of servicing by the Master Servicer with respect to any Servicing
      Agreement (including, without limitation, (i) all legal costs and expenses
      and
      all due diligence costs and expenses associated with an evaluation of the
      potential termination of the Servicer as a result of an event of default by
      such
      Servicer and (ii) all costs and expenses associated with the complete transfer
      of servicing, including all servicing files and all servicing data and the
      completion, correction or manipulation of such servicing data as may be required
      by the successor servicer to correct any errors or insufficiencies in the
      servicing data or otherwise to enable the successor servicer to service the
      Mortgage Loans in accordance with the related Servicing Agreement) are not
      fully
      and timely reimbursed by the terminated Servicer, the Master Servicer shall
      be
      entitled to reimbursement of such costs and expenses from the Collection
      Account.

     

    (d) The
      Master Servicer shall require each Servicer to comply with the remittance
      requirements and other obligations set forth in the related Servicing
      Agreement.

     

    (e) If
      the
      Master Servicer acts as a Servicer, it will not assume liability for the
      representations and warranties of the Servicer, if any, that it
      replaces.

     

    (f) With
      respect to Additional Collateral Mortgage Loans, the Master Servicer shall
      have
      no duty or obligation to supervise, monitor or oversee the activities of each
      Servicer under its Servicing Agreement with respect to Additional Collateral,
      except (a) with respect to any instances where a Servicer, in the course of
      fulfilling its obligations under the related Servicing Agreement seeks
      directions, instructions, consents or waivers from the Master Servicer with
      respect to any item of Additional Collateral, or (b) upon the occurrence of
      the
      following events (i) in the case of a final liquidation of any Mortgaged
      Property secured by Additional Collateral, the Master Servicer shall enforce
      the
      obligation of the Servicer under the related Servicing Agreement to liquidate
      such Additional Collateral as required by such Servicing Agreement, and (ii)
      if
      the Master Servicer assumes the obligations of such Servicer as successor
      Servicer under the related Servicing Agreement pursuant to this Section 3.03,
      as
      successor Servicer, it shall be bound to service and administer the Additional
      Collateral in accordance with the provisions of such Servicing
      Agreement.

     

    (g) If
      a
      Servicing Agreement requires the approval of the Master Servicer for a
      modification to a Mortgage Loan, the Master Servicer shall approve such
      modification if, based upon its receipt of written notification from the related
      Servicer outlining the terms of such modification and appropriate supporting
      documentation, the Master Servicer determines that the modification is permitted
      under the terms of the related Servicing Agreement and that any conditions
      to
      such modification set forth in related Servicing Agreement have been satisfied.
      

     

    
      
         

      

      
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    (h) If
      a
      Servicing Agreement requires the oversight and monitoring of loss mitigation
      measures with respect to the related Mortgage Loans, the Master Servicer will
      monitor any loss mitigation procedure or recovery action related to a defaulted
      Mortgage Loan (to the extent it receives notice of such from the related
      Servicer) and confirm that such loss mitigation procedure or recovery action
      is
      initiated, conducted and concluded in accordance with any timeframes and any
      other requirements set forth in the related Servicing Agreement, and the Master
      Servicer shall notify the Depositor in any case in which the Master Servicer
      believes that the related Servicer is not complying with such timeframes and/or
      other requirements.

     

    SECTION
      3.04. Fidelity
      Bond.

     

    The
      Master Servicer, at its expense, shall maintain in effect a blanket fidelity
      bond and an errors and omissions insurance policy, affording coverage with
      respect to all directors, officers, employees and other Persons acting on such
      Master Servicer’s behalf, and covering errors and omissions in the performance
      of the Master Servicer’s obligations hereunder. The errors and omissions
      insurance policy and the fidelity bond shall be in such form and amount
      generally acceptable for entities serving as master servicers or
      trustees.

     

    SECTION
      3.05. Power
      to Act; Procedures.

     

    The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority to do any and all things that it may deem necessary or
      desirable in connection with the master servicing and administration of the
      Mortgage Loans, including but not limited to the power and authority (i) to
      execute and deliver, on behalf of the Securityholders, the Issuer and the
      Indenture Trustee, customary consents or waivers and other instruments and
      documents, (ii) to consent to transfers of any Mortgaged Property and
      assumptions of the Mortgage Notes and related Mortgages, (iii) to collect any
      Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries and (iv)
      to
      effectuate, in its own name, on behalf of the Issuer or the Indenture Trustee,
      as applicable, or in the name of the Issuer or the Indenture Trustee, as
      applicable, foreclosure or other conversion of the ownership of the Mortgaged
      Property securing any Mortgage Loan, in each case, in accordance with the
      provisions of this Agreement and the related Servicing Agreement, as applicable.
      The Indenture Trustee shall furnish the Master Servicer, upon written request
      from a Servicing Officer, with any limited powers of attorney empowering the
      Master Servicer or any Servicer to execute and deliver instruments of
      satisfaction or cancellation, or of partial or full release or discharge, and
      to
      foreclose upon or otherwise liquidate Mortgaged Property, and to appeal,
      prosecute or defend in any court action relating to the Mortgage Loans or the
      Mortgaged Property, in accordance with the applicable Servicing Agreement and
      this Agreement, and the Indenture Trustee shall execute and deliver such other
      documents, as the Master Servicer may request, to enable the Master Servicer
      to
      master service and administer the Mortgage Loans and carry out its duties
      hereunder, in each case in accordance with Accepted Master Servicing Practices
      (and the Indenture Trustee shall have no liability for misuse of any such powers
      of attorney by the Master Servicer or any Servicer). In instituting foreclosures
      or similar proceedings, the Master Servicer shall institute such proceedings
      either in its own name on behalf of the Issuer or the Indenture Trustee or
      in
      the name of the Issuer or the Indenture Trustee (or cause the related Servicer,
      pursuant to the related Servicing Agreement, to institute such proceedings
      either in the name of such Servicer on behalf of the Issuer or the Indenture
      Trustee or in the name of the Issuer or the Indenture Trustee), unless otherwise
      required by law or otherwise appropriate. If the Master Servicer or the
      Indenture Trustee has been advised that it is likely that the laws of the state
      in which action is to be taken prohibit such action if taken in the name of
      the
      Issuer or the Indenture Trustee on its behalf or that the Issuer or the
      Indenture Trustee, as applicable, would be adversely affected under the “doing
      business” or tax laws of such state if such action is taken in its name, the
      Master Servicer shall join with the Indenture Trustee, on behalf of the Issuer,
      in the appointment of a co-trustee pursuant to Section 6.10 of the Indenture.
      In
      the performance of its duties hereunder, the Master Servicer shall be an
      independent contractor and shall not, except in those instances where it is
      taking action in the name of the Indenture Trustee, be deemed to be the agent
      of
      the Indenture Trustee on behalf of the Issuer.

     

    
      
         

      

      
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    SECTION
      3.06. Due-on-Sale
      Clauses; Assumption Agreements.

     

    To
      the
      extent provided in the applicable Servicing Agreement and to the extent Mortgage
      Loans contain enforceable due-on-sale clauses, the Master Servicer shall cause
      the Servicers to enforce such clauses in accordance with the applicable
      Servicing Agreement. If applicable law prohibits the enforcement of a
      due-on-sale clause or such clause is otherwise not enforced in accordance with
      the applicable Servicing Agreement, and, as a consequence, a Mortgage Loan
      is
      assumed, the original Mortgagor may be released from liability in accordance
      with the applicable Servicing Agreement.

     

    SECTION
      3.07. Release
      of Mortgage Files.

     

    (a) Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by
      any Servicer of a notification that payment in full has been escrowed in a
      manner customary for such purposes for payment to Securityholders on the next
      Payment Date, the Servicer will, if required under the applicable Servicing
      Agreement, promptly furnish to the Custodian, on behalf of the Indenture
      Trustee, two copies of a certification substantially in the form of Exhibit
      F
      hereto signed by a Servicing Officer or in a mutually agreeable electronic
      format which will, in lieu of a signature on its face, originate from a
      Servicing Officer (which certification shall include a statement to the effect
      that all amounts received in connection with such payment that are required
      to
      be deposited in the related Servicing Account maintained by the applicable
      Servicer pursuant to Section 4.01 or by the applicable Servicer pursuant to
      its
      Servicing Agreement have been or will be so deposited) and shall request that
      the Indenture Trustee (or the Custodian, on behalf of the Indenture Trustee)
      deliver to the applicable Servicer the related Mortgage File. Upon receipt
      of
      such certification and request, the Indenture Trustee (or the Custodian, on
      behalf of the Indenture Trustee), shall promptly release the related Mortgage
      File to the applicable Servicer and the Indenture Trustee (and the Custodian,
      if
      applicable) shall have no further responsibility with regard to such Mortgage
      File. Upon any such payment in full, each Servicer is authorized, to give,
      as
      agent for the Indenture Trustee, as the mortgagee under the Mortgage that
      secured the Mortgage Loan, an instrument of satisfaction (or assignment of
      mortgage without recourse) regarding the Mortgaged Property subject to the
      Mortgage, which instrument of satisfaction or assignment, as the case may be,
      shall be delivered to the Person or Persons entitled thereto against receipt
      therefor of such payment, it being understood and agreed that no expenses
      incurred in connection with such instrument of satisfaction or assignment,
      as
      the case may be, shall be chargeable to the related Servicing
      Account.

     

    
      
         

      

      
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    (b) From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan
      and in accordance with the applicable Servicing Agreement, the Indenture Trustee
      shall execute such documents as shall be prepared and furnished to the Indenture
      Trustee by a Servicer or the Master Servicer (in form reasonably acceptable
      to
      the Indenture Trustee) and as are necessary to the prosecution of any such
      proceedings. The Indenture Trustee (or the Custodian, on behalf of the Indenture
      Trustee), shall, upon the request of a Servicer or the Master Servicer, and
      delivery to the Indenture Trustee (the Custodian, on behalf of the Indenture
      Trustee), of two copies of a Request For Release signed by a Servicing Officer
      substantially in the form of Exhibit F (or in a mutually agreeable electronic
      format which will, in lieu of a signature on its face, originate from a
      Servicing Officer), release the related Mortgage File held in its possession
      or
      control to the Servicer or the Master Servicer, as applicable. Such trust
      receipt shall obligate the Servicer or the Master Servicer to return the
      Mortgage File to the Indenture Trustee (or the Custodian on behalf of the
      Indenture Trustee) when the need therefor by the Servicer or the Master Servicer
      no longer exists unless the Mortgage Loan shall be liquidated, in which case,
      upon receipt of a certificate of a Servicing Officer similar to that hereinabove
      specified, the Mortgage File shall be released by the Indenture Trustee (or
      the
      Custodian on behalf of the Indenture Trustee), to the Servicer or the Master
      Servicer.

     

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

     

    (a) The
      Master Servicer shall transmit and each Servicer (to the extent required by
      the
      related Servicing Agreement) shall transmit to the Indenture Trustee (or
      Custodian) such documents and instruments coming into the possession of the
      Master Servicer or such Servicer from time to time as are required by the terms
      hereof, or in the case of the Servicers, the applicable Servicing Agreement,
      to
      be delivered to the Indenture Trustee (or Custodian). Any funds received by
      the
      Master Servicer or by a Servicer in respect of any Mortgage Loan or which
      otherwise are collected by the Master Servicer or by a Servicer as Liquidation
      Proceeds, Insurance Proceeds or Subsequent Recoveries in respect of any Mortgage
      Loan shall be held for the benefit of the Indenture Trustee and the
      Securityholders subject to the Master Servicer’s right to retain or withdraw
      from the Collection Account the Master Servicing Fee, any additional
      compensation pursuant to Section 3.14 and any other amounts provided in this
      Agreement, and to the right of each Servicer to retain its Servicing Fee and
      any
      other amounts as provided in the applicable Servicing Agreement. The Master
      Servicer shall, and shall cause each Servicer to (to the extent provided in
      the
      applicable Servicing Agreement), provide access to information and documentation
      regarding the Mortgage Loans to the Indenture Trustee, its agents and
      accountants at any time upon reasonable request and during normal business
      hours, and to Securityholders that are savings and loan associations, banks
      or
      insurance companies, the Office of Thrift Supervision, the FDIC and the
      supervisory agents and examiners of such Office and Corporation or examiners
      of
      any other federal or state banking or insurance regulatory authority if so
      required by applicable regulations of the Office of Thrift Supervision or other
      regulatory authority, such access to be afforded without charge but only upon
      reasonable request in writing and during normal business hours at the offices
      of
      the Master Servicer designated by it. In fulfilling such a request the Master
      Servicer shall not be responsible for determining the sufficiency of such
      information.

     

    
      
         

      

      
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    (b) 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, Insurance
      Proceeds or Subsequent Recoveries, shall be held by the Master Servicer for
      and
      on behalf of the Indenture Trustee and the Securityholders and shall be and
      remain the sole and exclusive property of the Issuer; provided,
      however,
      that
      the Master Servicer and each Servicer shall be entitled to setoff against,
      and
      deduct from, any such funds any amounts that are properly due and payable to
      the
      Master Servicer or such Servicer under this Agreement or the applicable
      Servicing Agreement.

     

    SECTION
      3.09. Standard
      Hazard Insurance and Flood Insurance Policies.

     

    (a) For
      each
      Mortgage Loan (other than a Cooperative Loan), the Master Servicer shall enforce
      any obligation of the Servicers under the related Servicing Agreements to
      maintain or cause to be maintained standard fire and casualty insurance and,
      where applicable, flood insurance, all in accordance with the provisions of
      the
      related Servicing Agreements. It is understood and agreed that such insurance
      shall be with insurers meeting the eligibility requirements set forth in the
      applicable Servicing Agreement and that no earthquake or other additional
      insurance is to be required of any Mortgagor or to be maintained on property
      acquired in respect of a defaulted loan, other than pursuant to such applicable
      laws and regulations as shall at any time be in force and as shall require
      such
      additional insurance.

     

    (b) Pursuant
      to Section 4.01 and 4.02, any amounts collected by the Servicers or the Master
      Servicer, or by any Servicer, under any insurance policies (other than amounts
      to be applied to the restoration or repair of the Mortgaged Property or released
      to the Mortgagor in accordance with the applicable Servicing Agreement) shall
      be
      deposited into the Collection Account, subject to withdrawal pursuant to Section
      4.02 and 4.03. Any cost incurred by the Master Servicer or any Servicer in
      maintaining any such insurance if the Mortgagor defaults in its obligation
      to do
      so shall be added to the amount owing under the Mortgage Loan where the terms
      of
      the Mortgage Loan so permit; provided,
      however,
      that
      the addition of any such cost shall not be taken into account for purposes
      of
      calculating the payments to be made to Securityholders and shall be recoverable
      by the Master Servicer or such Servicer pursuant to Section 4.02 and
      4.03.

     

    SECTION
      3.10. Presentment
      of Claims and Collection of Proceeds.

     

    The
      Master Servicer shall (to the extent provided in the applicable Servicing
      Agreement) cause the related Servicer to, prepare and present on behalf of
      the
      Indenture Trustee, the Issuer and the Securityholders all claims under the
      Insurance Policies and take such actions (including the negotiation, settlement,
      compromise or enforcement of the insured’s claim) as shall be necessary to
      realize recovery under such policies. Any proceeds disbursed to the Master
      Servicer (or disbursed to a Servicer and remitted to the Master Servicer) in
      respect of such policies, bonds or contracts shall be promptly deposited in
      the
      Collection Account upon receipt, except that any amounts realized that are
      to be
      applied to the repair or restoration of the related Mortgaged Property as a
      condition precedent to the presentation of claims on the related Mortgage Loan
      to the insurer under any applicable Insurance Policy need not be so deposited
      (or remitted).

     

    
      
         

      

      
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    SECTION
      3.11. Maintenance
      of the Primary Insurance Policies.

     

    (a) The
      Master Servicer shall not take, or permit any Servicer (to the extent such
      action is prohibited under the applicable Servicing Agreement) to take, any
      action that would result in noncoverage under any applicable Primary Insurance
      Policy of any loss which, but for the actions of such Master Servicer or
      Servicer, would have been covered thereunder. The Master Servicer shall use
      its
      best reasonable efforts to cause each Servicer (to the extent required under
      the
      related Servicing Agreement) to keep in force and effect (to the extent that
      the
      Mortgage Loan requires the Mortgagor to maintain such insurance), a Primary
      Insurance Policy applicable to each Mortgage Loan (including any lender-paid
      Primary Insurance Policy) in accordance with the provisions of this Agreement
      and the related Servicing Agreement, as applicable. The Master Servicer shall
      not, and shall not permit any Servicer (to the extent required under the related
      Servicing Agreement) to, cancel or refuse to renew any such Primary Insurance
      Policy that is in effect at the date of the initial issuance of the Mortgage
      Note and is required to be kept in force hereunder except in accordance with
      the
      provisions of this Agreement and the related Servicing Agreement, as
      applicable.

     

    (b) The
      Master Servicer agrees to cause each Servicer (to the extent required under
      the
      related Servicing Agreement) to present, on behalf of the Indenture Trustee,
      the
      Issuer and the Securityholders, claims to the insurer under any Primary
      Insurance Policies and, in this regard, to take such reasonable action as shall
      be necessary to permit recovery under any Primary Insurance Policies respecting
      defaulted Mortgage Loans. Pursuant to Section 4.01 and 4.02, any amounts
      collected by the Servicer under any Primary Insurance Policies shall be
      deposited in the Collection Account, subject to withdrawal pursuant to Section
      4.03.

     

    SECTION
      3.12. Indenture
      Trustee to Retain Possession of Certain Insurance Policies and
      Documents.

     

    The
      Indenture Trustee (or the Custodian, as directed by the Indenture Trustee),
      shall retain possession and custody of the originals (to the extent available
      and delivered) of any Primary Insurance Policies, or certificate of insurance
      if
      applicable and available, and any certificates of renewal as to the foregoing
      as
      may be issued from time to time as contemplated by this Agreement and which
      come
      into its possession. Until all amounts distributable in respect of the Notes
      have been distributed in full and the Master Servicer otherwise has fulfilled
      its obligations under this Agreement, the Indenture Trustee (or its Custodian,
      if any, as directed by the Indenture Trustee) shall also retain possession
      and
      custody of each Mortgage File in accordance with and subject to the terms and
      conditions of this Agreement. The Master Servicer shall promptly deliver or
      cause to be delivered to the Indenture Trustee (or the Custodian, as directed
      by
      the Indenture Trustee), upon the execution or receipt thereof the originals
      of
      any Primary Insurance Policies, any certificates of renewal, and such other
      documents or instruments that constitute portions of the Mortgage File that
      come
      into the possession of the Master Servicer from time to time.

     

    
      
         

      

      
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    SECTION
      3.13. Realization
      Upon Defaulted Mortgage Loans.

     

    The
      Master Servicer shall cause each Servicer (to the extent required under the
      related Servicing Agreement) to foreclose upon, repossess or otherwise
      comparably convert the ownership of Mortgaged Properties securing such of the
      Mortgage Loans as come into and continue in default and as to which no
      satisfactory arrangements can be made for collection of delinquent payments,
      all
      in accordance with the applicable Servicing Agreement.

     

    SECTION
      3.14. Additional
      Compensation to the Master Servicer. 

     

    Pursuant
      to Section 4.02(c), certain income and gain realized from any investment of
      funds in the Collection Account shall be for the benefit of the Master Servicer
      as additional compensation. Servicing compensation in the form of assumption
      fees, if any, late payment charges, as collected, if any, or otherwise (but,
      unless otherwise specifically permitted in a Servicing Agreement, not including
      any Prepayment Penalty Amounts) shall be retained by the applicable Servicer,
      or
      the Master Servicer, and shall not be deposited in the related Servicing Account
      or Collection Account. The
      Master Servicer shall be required to pay all expenses incurred by it in
      connection with its activities hereunder and shall not be entitled to
      reimbursement therefor except as provided in this Agreement. The amount of
      the
      aggregate compensation payable as set forth in this Section 3.14 plus the Master
      Servicing Fee due to the Master Servicer in respect of any Payment Date shall
      be
      reduced in accordance with Section 5.06.

     

    SECTION
      3.15. REO
      Property.

     

    (a) In
      the
      event the Issuer (or the Indenture Trustee on its behalf) acquires ownership
      of
      any REO Property in respect of any related Mortgage Loan, the deed or
      certificate of sale shall be issued to the Issuer, or if required under
      applicable law, to the Indenture Trustee, or to its nominee, on behalf of the
      Issuer. The Master Servicer shall, to the extent provided in the applicable
      Servicing Agreement, cause the applicable Servicer to sell, any REO Property
      as
      expeditiously as possible and in accordance with the provisions of this
      Agreement and the related Servicing Agreement, as applicable. Pursuant to its
      efforts to sell such REO Property, the Master Servicer shall cause the
      applicable Servicer to protect and conserve, such REO Property in the manner
      and
      to the extent required by the applicable Servicing Agreement.

     

    (b) The
      Master Servicer shall, to the extent required by the related Servicing
      Agreement, cause the applicable Servicer to deposit all funds collected and
      received in connection with the operation of any REO Property in the related
      Servicing Account.

     

    
      
         

      

      
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    (c) The
      Master Servicer and the applicable Servicer, upon the final disposition of
      any
      REO Property, shall be entitled to reimbursement for any related unreimbursed
      Advances and other unreimbursed advances as well as any unpaid Servicing Fees
      from Liquidation Proceeds received in connection with the final disposition
      of
      such REO Property; provided, that any such unreimbursed Advances as well as
      any
      unpaid Servicing Fees may be reimbursed or paid, as the case may be, prior
      to
      final disposition, out of any net rental income or other net amounts derived
      from such REO Property.

     

    (d) To
      the
      extent provided in the related Servicing Agreement, the Liquidation Proceeds
      from the final disposition of the REO Property, net of any payment to the Master
      Servicer and the applicable Servicer as provided above shall be deposited in
      the
      related Servicing Account on or prior to the applicable Determination Date
      in
      the month following receipt thereof and be remitted by wire transfer in
      immediately available funds to the Master Servicer for deposit into the
      Collection Account on the next succeeding Servicer Remittance Date.

     

    SECTION
      3.16. Assessments
      of Compliance and Attestation Reports.

     

    (a) Assessments
      of Compliance.

     

    (i) By
      March
      10 (with a 5 calendar day cure period) of each year (subject to the later date
      referred to in Section 3.16(a)(iii)), commencing in March 2008, the Master
      Servicer, the Securities Administrator and the Custodian, each at its own
      expense, shall furnish, and each such party shall cause any Servicing Function
      Participant engaged by it (unless such party has elected to take responsibility
      for assessing compliance with the Relevant Servicing Criteria and providing
      the
      related attestation for any such Subcontractor engaged by it in accordance
      with
      Regulation AB Telephone Interpretation 17.06) to furnish, each at its own
      expense, to the Securities Administrator and the Depositor, a report on an
      assessment of compliance with the Relevant Servicing Criteria that contains
      (A)
      a statement by such party of its responsibility for assessing compliance with
      the Relevant Servicing Criteria, (B) a statement that such party used the
      Servicing Criteria to assess compliance with the Relevant Servicing Criteria,
      (C) such party’s assessment of compliance with the Relevant Servicing Criteria
      as of and for the fiscal year covered by the Form 10-K required to be filed
      pursuant to Section 3.19(b) and for each fiscal year thereafter, whether or
      not
      a Form 10-K is required to be filed, including, if there has been any material
      instance of noncompliance with the Relevant Servicing Criteria, a discussion
      of
      each such failure and the nature and status thereof, and (D) a statement that
      a
      registered public accounting firm has issued an attestation report on such
      party’s assessment of compliance with the Relevant Servicing Criteria as of and
      for such period. 

    

    (ii) No
      later
      than the end of each fiscal year for the Issuer for which a Form 10-K is
      required to be filed, the Master Servicer and the Custodian, shall each forward
      to the Securities Administrator and the Depositor the name of each Servicing
      Function Participant engaged by it and what Relevant Servicing Criteria will
      be
      addressed in the report on assessment of compliance prepared by such Servicing
      Function Participant (provided, however, that the Master Servicer need not
      provide such information to the Securities Administrator so long as the Master
      Servicer and the Securities Administrator are the same Person). When the Master
      Servicer, the Custodian, and the Securities Administrator submit their
      assessments to the Securities Administrator, such parties will also at such
      time
      include the assessment (and attestation pursuant to subsection (b) of this
      Section 3.16) of each Servicing Function Participant engaged by
      it.

    
      
         

      

      
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    (iii) Promptly
      after receipt of each such report on assessment of compliance, (i) the Depositor
      shall review each such report and each comparable report submitted by a Servicer
      and, if applicable, consult with the Master Servicer, the Securities
      Administrator, the Custodian, the Servicers and any Servicing Function
      Participant engaged by such parties as to the nature of any material instance
      of
      noncompliance with the Relevant Servicing Criteria by each such party, and
      (ii)
      the Securities Administrator shall confirm that the assessments, taken as a
      whole, address all of the Servicing Criteria and taken individually address
      the
      Relevant Servicing Criteria for each party as set forth on Exhibit Q and on
      any
      similar exhibit set forth in each Servicing Agreement in respect of each
      Servicer and notify the Depositor of any exceptions. None of such parties shall
      be required to deliver any such assessments until March 30 in any given year
      so
      long as it has received written confirmation from the Depositor that a Form
      10-K
      is not required to be filed in respect of the Issuer for the preceding calendar
      year which, if the circumstances apply, the Depositor agrees to provide prior
      to
      March 1 of the applicable year; provided that the Custodian shall only be
      required to deliver such an assessment of compliance with respect to any fiscal
      year for which a Form 10-K is required to be filed in respect of the Issuer.
      The
      Master Servicer shall include all annual reports on assessment of compliance
      received by it with its own assessment of compliance to be submitted to the
      Securities Administrator pursuant to this Section.

    

    In
      the
      event the Master Servicer, the Securities Administrator, the Custodian, any
      Servicer or any Servicing Function Participant engaged by any such party is
      terminated, assigns its rights and obligations under, or resigns pursuant to,
      the terms of this Agreement, or any applicable custodial agreement, Servicing
      Agreement or sub-servicing agreement, as the case may be, such party (in the
      case of a Servicer, to the extent required under the applicable Servicing
      Agreement) shall provide or shall cause such Servicing Function Participant
      to
      provide for the applicable period preceding such assignment and termination
      a
      report on assessment of compliance pursuant to this Section 3.16(a) or to such
      other applicable agreement, notwithstanding any such termination, assignment
      or
      resignation.

    

    (b) Attestation
      Reports.

     

    (i) By
      March
      10 (with a 5 calendar day cure period) of each year (subject to the later date
      referred to in Section 3.16(b)(ii)), commencing in March 2008, the Master
      Servicer, the Securities Administrator, the Custodian, each at its own expense,
      shall cause, and each such party shall cause any Servicing Function Participant
      engaged by it to cause (unless such party has elected to take responsibility
      for
      assessing compliance with the Relevant Servicing Criteria and providing the
      related attestation with respect to such Relevant Servicing Criteria for such
      Subcontractor engaged by it in accordance with Regulation AB Telephone
      Interpretation 17.06), each at its own expense, a registered public accounting
      firm (which may also render other services to the Master Servicer, the Indenture
      Trustee, in its capacity as Custodian, the Securities Administrator, or such
      other Servicing Function Participants, as the case may be) and that is a member
      of the American Institute of Certified Public Accountants to furnish a report
      to
      the Securities Administrator and the Depositor, to the effect that (i) it has
      obtained a representation regarding certain matters from the management of
      such
      party, which includes an assertion that such party has complied with the
      Relevant Servicing Criteria, and (ii) on the basis of an examination conducted
      by such firm in accordance with standards for attestation engagements issued
      or
      adopted by the PCAOB, it is expressing an opinion as to whether such party’s
      compliance with the Relevant Servicing Criteria was fairly stated in all
      material respects, or it cannot express an overall opinion regarding such
      party’s assessment of compliance with the Relevant Servicing Criteria. 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. 

    
      
         

      

      
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    (ii) Promptly
      after receipt of such report from the Master Servicer, the Indenture Trustee,
      in
      its capacity as Custodian, the Securities Administrator, a Servicer or any
      Servicing Function Participant engaged by such parties, (i) the Depositor shall
      review the report and, if applicable, consult with such parties as to the nature
      of any defaults by such parties, in the fulfillment of any of each such party’s
      obligations hereunder or under any other applicable agreement, and (ii) the
      Securities Administrator shall confirm that each assessment submitted pursuant
      to subsection (a) of this Section 3.16 is coupled with an attestation meeting
      the requirements of this Section and notify the Depositor of any exceptions.
      None of the Master Servicer, the Securities Administrator, the Custodian or
      any
      Servicing Function Participant engaged by such parties shall be required to
      deliver or cause the delivery of such reports until March 30 in any given year
      for so long as it has received written confirmation from the Depositor that
      a
      Form 10-K is not required to be filed in respect of the Issuer for the preceding
      calendar or fiscal year which, if the circumstances apply, the Depositor agrees
      to provide prior to March 1 of the applicable year; provided that the Custodian
      shall only be required to deliver or cause to be delivered such report with
      respect to any fiscal year for which a Form 10-K is required to be filed by
      the
      Issuer. The Master Servicer shall include each such attestation furnished to
      it
      with its own attestation to be submitted to the Securities Administrator
      pursuant to this Section.

     

    In
      the
      event the Master Servicer, the Securities Administrator, the Custodian, any
      Servicer or any Servicing Function Participant engaged by any such party is
      terminated, assigns its rights and duties under, or resigns pursuant to the
      terms of this Agreement, or any applicable custodial agreement, Servicing
      Agreement or sub-servicing agreement, as the case may be, such party (in the
      case of a Servicer, to the extent required under the applicable Servicing
      Agreement) shall cause a registered public accounting firm to provide an
      attestation pursuant to this Section 3.16(b) or to such other applicable
      agreement, for the applicable period immediately preceding such termination,
      assignment or resignation, notwithstanding any such termination, assignment
      or
      resignation.

     

    
      
         

      

      
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    SECTION
      3.17. Annual
      Compliance Statement.

     

    The
      Master Servicer and the Securities Administrator shall deliver (and the Master
      Servicer and Securities Administrator shall cause any Servicing Function
      Participant engaged by it to deliver) to the Depositor and the Securities
      Administrator on or before March 10 (with a 5 calendar day cure period) of
      each
      year, commencing in March 2008, an Officer’s Certificate stating, as to the
      signer thereof, that (A) a review of such party’s activities during the
      preceding calendar year or portion thereof and of such party’s performance under
      this Agreement, or such other applicable agreement in the case of any Servicing
      Function Participant, has been made under such officer’s supervision and (B) to
      the best of such officer’s knowledge, based on such review, such party has
      fulfilled all its obligations under this Agreement, or such other applicable
      agreement in the case of any Servicing Function Participant, in all material
      respects throughout such year or portion thereof, or, if there has been a
      failure to fulfill any such obligation in any material respect, specifying
      each
      such failure known to such officer and the nature and status thereof. Promptly
      after receipt of each such Officer’s Certificate, the Depositor shall review
      such Officer’s Certificate and, if applicable, consult with each such party, as
      applicable, as to the nature of any failures by such party, in the fulfillment
      of any of such party’s obligations hereunder or, in the case of any Servicing
      Function Participant, under such other applicable agreement. The Master Servicer
      shall include all annual statements of compliance received by it from each
      Servicer with its own annual statement of compliance to be submitted to the
      Securities Administrator pursuant to this Section. In the event the Master
      Servicer, the Securities Administrator or any Servicing Function Participant
      engaged by any such party is terminated or resigns pursuant to the terms of
      this
      Agreement, or any applicable agreement in the case of a Servicing Function
      Participant, as the case may be, such party shall provide an Officer’s
      Certificate pursuant to this Section 3.17 or to such applicable agreement,
      as
      the case may be, notwithstanding any such termination, assignment or
      resignation.

     

    SECTION
      3.18. Sarbanes-Oxley
      Certification.

     

    Each
      Form
      10-K shall include a Sarbanes-Oxley Certification, required to be included
      therewith pursuant to the Sarbanes-Oxley Act. The Master Servicer and the
      Securities Administrator shall provide, and each such party shall cause any
      Servicing Function Participant engaged by it to provide, to the Person who
      signs
      the Sarbanes-Oxley Certification (the “Certifying
      Person”),
      by
      March 1 (with a ten-calendar day cure period), (or by such other date and cure
      period specified in the applicable Servicing Agreement), of each year in which
      the Issuer is subject to the reporting requirements of the Exchange Act and
      otherwise within a reasonable period of time upon request, a certification,
      if
      applicable in the form provided by the related Servicing Agreement (each, a
      “Back-Up
      Certification”),
      upon
      which the Certifying Person, the entity for which the Certifying Person acts
      as
      an officer, and such entity’s officers, directors and Affiliates can reasonably
      rely. The senior officer of the Master Servicer in charge of the master
      servicing function shall serve as the Certifying Person on behalf of the Issuer.
      Such officer of the Certifying Person can be contacted by e-mail at cts.sec.notifications@wellsfargo.com
      or by
      facsimile at (410) 715-2380. In the event any such party or any Servicing
      Function Participant engaged by such party is terminated or resigns pursuant
      to
      the terms of this Agreement, or any applicable sub-servicing agreement, as
      the
      case may be, such party shall provide a Back-Up Certification to the Certifying
      Person pursuant to this Section 3.18 with respect to the period of time it
      was
      subject to this Agreement or any applicable sub-servicing agreement, as the
      case
      may be. Notwithstanding the foregoing, (i) the Master Servicer and the
      Securities Administrator shall not be required to deliver a Back-Up
      Certification to each other if both are the same Person and the Master Servicer
      is the Certifying Person and (ii) the Master Servicer shall not be obligated
      to
      sign the Sarbanes-Oxley Certification in the event that it does not receive
      any
      Back-Up Certification required to be furnished to it pursuant to this section
      or
      any Servicing Agreement or custodial agreement.

     

    
      
         

      

      
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    SECTION
      3.19. Reports
      Filed with Securities and Exchange Commission.

     

    (a) Reports
      Filed on Form 10-D. 

     

    (i) Within
      15
      days after each Payment Date (subject to permitted extensions under the Exchange
      Act), the Securities Administrator shall prepare and file on behalf of the
      Issuer any Form 10-D required by the Exchange Act, in form and substance as
      required by the Exchange Act. The Securities Administrator shall file each
      Form
      10-D with a copy of the related Payment Date Statement attached thereto. Any
      disclosure in addition to the Payment Date Statement that is required to be
      included on Form 10-D (“Additional
      Form 10-D Disclosure”)
      shall
      be reported by the parties set forth on Exhibit R to the Depositor and the
      Securities Administrator and directed and approved by the Depositor pursuant
      to
      the following paragraph and the Securities Administrator will have no duty
      or
      liability for any failure hereunder to determine or prepare any Additional
      Form
      10-D Disclosure, except as set forth in the next two paragraphs. 

    

    (ii) As
      set
      forth on Exhibit R hereto, within 5 calendar days after the related Payment
      Date, (i) the parties to the Thornburg Mortgage Securities Trust 2007-2
      transaction shall be required to provide to the Securities Administrator and
      the
      Depositor, to the extent known by a responsible officer thereof, in
      EDGAR-compatible form (which may be Word or Excel documents easily convertible
      to EDGAR format), or in such other form as otherwise agreed upon by the
      Securities Administrator and such party, the form and substance of any
      Additional Form 10-D Disclosure, if applicable, together with an Additional
      Disclosure Notification in the form of Exhibit U hereto (an “Additional
      Disclosure Notification”),
      and
      (ii) the Depositor will approve, as to form and substance, or disapprove, as
      the
      case may be, the inclusion of the Additional Form 10-D Disclosure on Form 10-D.
      The Initial Seller will be responsible for any reasonable fees and expenses
      assessed or incurred by the Securities Administrator in connection with
      including any Additional Form 10-D Disclosure in Form 10-D pursuant to this
      paragraph, provided that if the Additional Form 10-D Disclosure relates solely
      to the Depositor, such fees and expenses shall be paid by the
      Depositor.

    
      
         

      

      
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    (iii) After
      preparing the Form 10-D, the Securities Administrator shall forward upon request
      electronically a copy of the Form 10-D to the Depositor (provided that such
      Form
      10-D includes any Additional Form 10-D Disclosure). Within two Business Days
      after receipt of such copy, but no later than the 12th
      calendar
      day after the Payment Date, the Depositor shall notify the Securities
      Administrator in writing (which may be furnished electronically) of any changes
      to or approval of such Form 10-D. In the absence of receipt of any written
      changes or approval, or if the Depositor does not request a copy of a Form
      10-D,
      the Securities Administrator shall be entitled to assume that such Form 10-D
      is
      in final form and the Securities Administrator may proceed with the execution
      and filing of the Form 10-D. A duly authorized representative of the Master
      Servicer shall sign each Form 10-D. If a Form 10-D cannot be filed on time
      or if
      a previously filed Form 10-D needs to be amended, the Securities Administrator
      will follow the procedures set forth in subsection (d)(ii) of this Section
      3.19.
      Promptly (but no later than 1 Business Day) after filing with the Commission,
      the Securities Administrator will make available on its internet website a
      final
      executed copy of each Form 10-D filed by the Securities Administrator. Each
      party to this Agreement acknowledges that the performance by the Master Servicer
      and the Securities Administrator of their respective duties under this Section
      3.19(a) related to the timely preparation, execution and filing of Form 10-D
      is
      contingent upon such parties strictly observing all applicable deadlines in
      the
      performance of their duties under this Section 3.19(a). Neither the Master
      Servicer nor the Securities Administrator shall have any liability for any
      loss,
      expense, damage, claim arising out of or with respect to any failure to properly
      prepare, execute and/or timely file such Form 10-D, where such failure results
      from the Securities Administrator’s inability or failure to obtain or receive,
      on a timely basis, any information from any other party hereto needed to
      prepare, arrange for execution or file such Form 10-D, not resulting from its
      own negligence, bad faith or willful misconduct.

    

    (iv) Form
      10-D
      requires the registrant to indicate (by checking “yes” or “no”) that it (1) has
      filed all reports required to be filed by Section 13 or 15(d) of the Exchange
      Act during the preceding 12 months (or for such shorter period that the
      registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past 90 days.” The Depositor hereby represents to
      the Securities Administrator that the Depositor has filed all such required
      reports during the preceding 12 months and that it has been subject to such
      filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than the fifth calendar day after
      the related Payment Date with respect to the filing of a report on Form 10-D
      if
      the answer to the questions should be “no.” The Securities Administrator shall
      be entitled to rely on such representations in preparing, executing and/or
      filing any such report

    

    (b) Reports
      Filed on Form 10-K.

     

    (i) On
      or
      prior to the 90th
      day
      after the end of each fiscal year of the Issuer in which a Form 10-K is required
      to be filed or such earlier date as may be required by the Exchange Act (the
      “10-K
      Filing Deadline”)
      (it
      being understood that the fiscal year for the Issuer ends on December
      31st
      of each
      year), commencing in March 2008, the Securities Administrator shall prepare
      and
      file on behalf of the Issuer a Form 10-K, in form and substance as required
      by
      the Exchange Act. Each such Form 10-K shall include the following items, in
      each
      case to the extent they have been delivered to the Securities Administrator
      within the applicable time frames set forth in this Agreement and the related
      Servicing Agreement, (i) an annual compliance statement for each Servicer,
      the
      Master Servicer, the Securities Administrator and any Servicing Function
      Participant engaged by such parties (each, a “Reporting
      Servicer”)
      as
      described under Section 3.17, (ii)(A) the annual reports on assessment of
      compliance with servicing criteria for each Reporting Servicer, as described
      under Section 3.16(a), and (B) if each Reporting Servicer’s report on assessment
      of compliance with servicing criteria described under Section 3.16(a) identifies
      any material instance of noncompliance, disclosure identifying such instance
      of
      noncompliance, or if each Reporting Servicer’s report on assessment of
      compliance with servicing criteria described under Section 3.16(a) is not
      included as an exhibit to such Form 10-K, disclosure that such report is not
      included and an explanation why such report is not included, (iii)(A) the
      registered public accounting firm attestation report for each Reporting
      Servicer, as described under Section 3.16(b), and (B) if any registered public
      accounting firm attestation report described under Section 3.16(b) identifies
      any material instance of noncompliance, disclosure identifying such instance
      of
      noncompliance, or if any such registered public accounting firm attestation
      report is not included as an exhibit to such Form 10-K, disclosure that such
      report is not included and an explanation why such report is not included,
      and
      (iv) a Sarbanes-Oxley Certification as described in Section 3.18 (provided,
      however,
      that
      the Securities Administrator, at its discretion, may omit from the Form 10-K
      any
      annual compliance statement, assessment of compliance or attestation report
      that
      is not required to be filed with such Form 10-K pursuant to Regulation AB).
      Any
      disclosure or information in addition to (i) through (iv) above that is required
      to be included on Form 10-K (“Additional
      Form 10-K Disclosure”)
      shall
      be determined and prepared by and at the direction of the Depositor pursuant
      to
      the following paragraph and the Securities Administrator will have no duty
      or
      liability for any failure hereunder to determine or prepare any Additional
      Form
      10-K Disclosure, except as set forth in the next two paragraphs.

    
      
         

      

      
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    (ii) As
      set
      forth on Exhibit S hereto, no later than March 10 (with a 5 calendar day cure
      period) of each year that the Issuer is subject to the Exchange Act reporting
      requirements, commencing in 2008, (i) the parties to the Thornburg Mortgage
      Securities Trust 2007-2 transaction shall be required to provide to the
      Securities Administrator and the Depositor, to the extent known by a responsible
      officer thereof, in EDGAR-compatible form (which may be Word or Excel documents
      easily convertible to EDGAR format), or in such other form as otherwise agreed
      upon by the Securities Administrator and such party, the form and substance
      of
      any Additional Form 10-K Disclosure, if applicable, together with an Additional
      Disclosure Notification and (ii) the Depositor will approve, as to form and
      substance, or disapprove, as the case may be, the inclusion of the Additional
      Form 10-K Disclosure on Form 10-K. The Initial Seller will be responsible for
      any reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-K Disclosure
      in Form 10-K pursuant to this paragraph, provided that if the Additional Form
      10-K Disclosure relates solely to the Depositor, such fees and expenses shall
      be
      paid by the Depositor.

    
      
         

      

      
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    (iii) After
      preparing the Form 10-K, the Securities Administrator shall forward upon request
      electronically a copy of the Form 10-K to the Depositor. Within three Business
      Days after receipt of such copy, but no later than March 25th, the Depositor
      shall notify the Securities Administrator in writing (which may be furnished
      electronically) of any changes to or approval of such Form 10-K. In the absence
      of receipt of any written changes or approval, or if the Depositor does not
      request a copy of a Form 10-K, the Securities Administrator shall be entitled
      to
      assume that such Form 10-K is in final form and the Securities Administrator
      may
      proceed with the execution and filing of the Form 10-K. A senior officer of
      the
      Master Servicer in charge of the master servicing function shall sign the Form
      10-K. If a Form 10-K cannot be filed on time or if a previously filed Form
      10-K
      needs to be amended, the Securities Administrator will follow the procedures
      set
      forth in subsection (d)(ii) of this Section 3.19. Promptly (but no later than
      1
      Business Day) after filing with the Commission, the Securities Administrator
      will make available on its internet website a final executed copy of each Form
      10-K filed by the Securities Administrator. The parties to this Agreement
      acknowledge that the performance by the Master Servicer and the Securities
      Administrator of its duties under this Section 3.19(b) related to the timely
      preparation, execution and filing of Form 10-K is contingent upon such parties
      (the Custodian and any Servicing Function Participant) strictly observing all
      applicable deadlines in the performance of their duties under this Section
      3.19(b), Section 3.18, Section 3.17, Section 3.16(a) and Section 3.16(b).
      Neither the Master Servicer nor the Securities Administrator shall have any
      liability for any loss, expense, damage or claim arising out of or with respect
      to any failure to properly prepare, execute and/or timely file such Form 10-K,
      where such failure results from the Securities Administrator’s inability or
      failure to obtain or receive, on a timely basis, any information from any other
      party hereto needed to prepare, arrange for execution or file such Form 10-K,
      not resulting from its own negligence, bad faith or willful
      misconduct.

    

    (iv) Form
      10-K
      requires the registrant to indicate (by checking "yes" or "no") that it “(1) has
      filed all reports required to be filed by Section 13 or 15(d) of the Exchange
      Act during the preceding 12 months (or for such shorter period that the
      registrant was required to file such reports), and (2) has been subject to
      such
      filing requirements for the past 90 days.” The Depositor hereby represents to
      the Securities Administrator that the Depositor has filed all such required
      reports during the preceding 12 months and that it has been subject to such
      filing requirement for the past 90 days. The Depositor shall notify the
      Securities Administrator in writing, no later than March 15th with respect
      to
      the filing of a report on Form 10-K, if the answer to the questions should
      be
“no.” The Securities Administrator shall be entitled to rely on such
      representations in preparing, executing and/or filing any such
      report.

    

    (c) Reports
      Filed on Form 8-K.

     

    
      
         

      

      
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    (i) Within
      four (4) Business Days after the occurrence of an event requiring disclosure
      on
      Form 8-K (each such event, a “Reportable
      Event”),
      and
      if requested by the Depositor, the Securities Administrator shall prepare and
      file on behalf of the Issuer a Form 8-K, as required by the Exchange Act,
provided
      that the
      Depositor shall file the initial Form 8-K in connection with the issuance of
      the
      Offered Notes. Any disclosure or information related to a Reportable Event
      or
      that is otherwise required to be included in Form 8-K (“Form
      8-K Disclosure Information”)
      shall
      be reported by the parties set forth on Exhibit T to the Depositor and the
      Securities Administrator and directed and approved by the Depositor pursuant
      to
      the following paragraph and the Securities Administrator will have no duty
      or
      liability for any failure hereunder to determine or prepare any Form 8-K
      Disclosure Information or any Form 8-K, except as set forth in the next two
      paragraphs. 

    

    (ii) As
      set
      forth on Exhibit T hereto, for so long as the Issuer is subject to the Exchange
      Act reporting requirements, no later than close of business (New York City
      time)
      on the 2nd Business Day after the occurrence of a Reportable Event (i) the
      parties to the Thornburg Mortgage Securities Trust 2007-2 transaction shall
      be
      required to provide to the Securities Administrator and Depositor, to the extent
      known by a responsible officer thereof, in EDGAR-compatible form (which may
      be
      Word or Excel documents easily convertible to EDGAR format), or in such other
      form as otherwise agreed upon by the Securities Administrator and such party,
      the form and substance of any Form 8-K Disclosure Information, if applicable,
      together with an Additional Disclosure Notification and (ii) the Depositor
      will
      approve, as to form and substance, or disapprove, as the case may be, the
      inclusion of the Form 8-K Disclosure Information. The Initial Seller will be
      responsible for any reasonable fees and expenses assessed or incurred by the
      Securities Administrator in connection with including any Form 8-K Disclosure
      Information in Form 8-K pursuant to this paragraph, provided that if the
      Additional Form 8-K Disclosure Information relates solely to the Depositor,
      such
      fees and expenses shall be paid by the Depositor. 

    

    (iii) After
      preparing the Form 8-K, the Securities Administrator shall forward upon request
      electronically a copy of the Form 8-K to the Depositor. Promptly, but no later
      than the close of business on the third Business Day after the Reportable Event,
      the Depositor shall notify the Securities Administrator in writing (which may
      be
      furnished electronically) of any changes to or approval of such Form 8-K. In
      the
      absence of receipt of any written changes or approval, or if the Depositor
      does
      not request a copy of a Form 8-K, the Securities Administrator shall be entitled
      to assume that such Form 8-K is in final form and the Securities Administrator
      may proceed with the execution and filing of the Form 8-K. A duly authorized
      representative of the Master Servicer shall sign each Form 8-K filed by the
      Securities Administrator. If a Form 8-K cannot be filed on time or if a
      previously filed Form 8-K needs to be amended, the Securities Administrator
      will
      follow the procedures set forth in subsection (d)(ii) of this Section 3.19.
      Promptly (but no later than 1 Business Day) after filing with the Commission,
      the Securities Administrator will, make available on its internet website a
      final executed copy of each Form 8-K filed by the Securities Administrator
      or
      filed by the Depositor and provided to the Securities Administrator for that
      purpose. The parties to this Agreement acknowledge that the performance by
      the
      Master Servicer and the Securities Administrator of their respective duties
      under this Section 3.19(c) related to the timely preparation, execution and
      filing of Form 8-K is contingent upon such parties strictly observing all
      applicable deadlines in the performance of their duties under this Section
      3.19(c). Neither the Securities Administrator nor the Master Servicer shall
      have
      any liability for any loss, expense, damage, claim arising out of or with
      respect to any failure to properly prepare, execute and/or timely file such
      Form
      8-K, where such failure results from the Securities Administrator’s inability or
      failure to obtain or receive, on a timely basis, any information from any other
      party hereto needed to prepare, arrange for execution or file such Form 8-K,
      not
      resulting from its own negligence, bad faith or willful
      misconduct.

    
      
         

      

      
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    (d) Delisting;
      Amendments; Late Filings.

     

    (i) On
      or
      prior to January 30 of the first year in which the Securities Administrator
      is
      able to do so under applicable law, unless otherwise directed by the Depositor,
      the Securities Administrator shall prepare and file a Form 15 relating to the
      automatic suspension of reporting in respect of the Issuer under the Exchange
      Act. 

     

    (ii) In
      the
      event that the Securities Administrator is unable to timely file with the
      Commission all or any required portion of any Form 8-K, 10-D or 10-K required
      to
      be filed by this Agreement because required disclosure information was either
      not delivered to it or delivered to it after the delivery deadlines set forth
      in
      this Agreement or for any other reason, the Securities Administrator will
      promptly notify electronically the Depositor. In the case of Form 10-D and
      10-K,
      the parties to this Agreement and each Servicer will cooperate to prepare and
      file a Form 12b-25 and a 10-D/A and 10-K/A, as applicable, pursuant to Rule
      12b-25 of the Exchange Act. In the case of Form 8-K, the Securities
      Administrator will, upon receipt of all required Form 8-K Disclosure Information
      and upon the approval and direction of the Depositor, include such disclosure
      information on the next Form 10-D. In the event that any previously filed Form
      8-K, 10-D or 10-K needs to be amended, and such amendment includes any
      Additional Form 10-D Disclosure, any Additional Form 10-K Disclosure or any
      Form
      8-K Disclosure Information or any amendment to such disclosure, the Securities
      Administrator will promptly notify electronically the Depositor and such parties
      will cooperate to prepare any necessary 8-KA, 10-D/A or 10-K/A. Any Form 15,
      Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be signed by a
      duly
      authorized representative or a senior officer in charge of master servicing,
      as
      applicable, of the Master Servicer. The parties to this Agreement acknowledge
      that the performance by the Master Servicer and the Securities Administrator
      of
      their respective duties under this Section 3.19(d) related to the timely
      preparation, execution and filing of Form 15, a Form 12b-25 or any amendment
      to
      Form 8-K, 10-D or 10-K is contingent upon each such party performing its duties
      under this Section. Neither the Master Servicer nor the Securities Administrator
      shall have any liability for any loss, expense, damage, claim arising out of
      or
      with respect to any failure to properly prepare, execute and/or timely file
      any
      such Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, where
      such failure results from the Securities Administrator’s inability or failure to
      obtain or receive, on a timely basis, any information from any other party
      hereto needed to prepare, arrange for execution or file such Form 15, Form
      12b-25 or any amendments to Forms 8-K, 10-D or 10-K, not resulting from its
      own
      negligence, bad faith or willful misconduct.

    
      
         

      

      
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    SECTION
      3.20. Additional
      Information.

     

    Each
      of
      the parties agrees to provide to the Securities Administrator such additional
      information related to such party as the Securities Administrator may reasonably
      request, including evidence of the authorization of the person signing any
      certification or statement, financial information and reports, and such other
      information related to such party or its performance hereunder. 

     

    SECTION
      3.21. Intention
      of the Parties and Interpretation.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Section 3.16 through
      Section 3.20 of this Agreement is to facilitate compliance by the Securities
      Administrator and the Depositor with the provisions of Regulation AB promulgated
      by the Commission under the Exchange Act, as such may be amended from time
      to
      time and subject to such clarification and interpretive advice as may be issued
      by the staff of the Commission from time to time. Therefore, each of the parties
      agrees that (a) the obligations of the parties hereunder shall be interpreted
      in
      such a manner as to accomplish that purpose, (b) the parties’ obligations
      hereunder will be supplemented and modified as necessary to be consistent with
      any such amendments, interpretive advice or guidance, convention or consensus
      among active participants in the asset-backed securities markets, advice of
      counsel, or otherwise in respect of the requirements of Regulation AB, (c)
      the
      parties shall comply with the reasonable requests made by the Securities
      Administrator or the Depositor for delivery of such additional or different
      information as the Securities Administrator or the Depositor may determine
      in
      good faith is necessary to comply with the provisions of Regulation AB, which
      information is available to such party without unreasonable effort or expense
      and within such timeframe as may be reasonably requested, and (d) no amendment
      of this Agreement shall be required to effect any such changes in the parties’
obligations as are necessary to accommodate evolving interpretations of the
      provisions of Regulation AB.

     

    SECTION
      3.22. Indemnification.
      

     

    Each
      party required to deliver an assessment of compliance and attestation report
      pursuant to Section 3.16 (each, an “Item
      1122 Responsible Party”)
      shall
      indemnify and hold harmless the Securities Administrator, the Master Servicer,
      the Depositor, the Initial Seller and the Seller and each of their directors,
      officers, employees, agents, and affiliates from and against any and all claims,
      losses, damages, penalties, fines, forfeitures, reasonable legal fees and
      related costs, judgments and other costs and expenses arising out of or based
      upon (a) any breach by such Item 1122 Responsible Party of any of its
      obligations hereunder relating to its obligations as an Item 1122 Responsible
      Party, including particularly its obligations to provide any assessment of
      compliance, attestation report or compliance statement required under Section
      3.16(a), 3.16(b) or 3.17, respectively, or any information, data or materials
      required to be included in any Exchange Act report, (b) any material
      misstatement or material omission in any information, data or materials provided
      by such Item 1122 Responsible Party (or, in the case of the Securities
      Administrator or Master Servicer, any material misstatement or material omission
      in (x) any compliance certificate delivered by it, or by any Servicing Function
      Participant engaged by it, pursuant to this Agreement, (y) any assessment or
      attestation delivered by or on behalf of it, or by any Servicing Function
      Participant engaged by it, pursuant to this Agreement, or (z) any
      Additional Form 10-D Disclosure, Additional Form 10-K Disclosure or Form 8-K
      Disclosure Information concerning the Securities Administrator or the Master
      Servicer and provided by either of them), or (c) the negligence, bad faith
      or
      willful misconduct of such Item 1122 Responsible Party in connection with its
      performance hereunder relating to its obligations as an Item 1122 Responsible
      Party. If the indemnification provided for herein is unavailable or insufficient
      to hold harmless the Securities Administrator, the Depositor, the Initial Seller
      or the Seller, then each Item 1122 Responsible Party agrees that it shall
      contribute to the amount paid or payable by the Securities Administrator, the
      Master Servicer, the Depositor, the Initial Seller or the Seller as a result
      of
      any claims, losses, damages or liabilities incurred by the Securities
      Administrator, the Master Servicer, the Depositor, the Initial Seller or the
      Seller in such proportion as is appropriate to reflect the relative fault of
      the
      Securities Administrator, the Master Servicer, the Depositor, the Initial Seller
      or the Seller on the one hand and such Item 1122 Responsible Party on the other.
      This indemnification shall survive the termination of this Agreement or the
      termination of any party to this Agreement.

     

    
      
         

      

      
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    SECTION
      3.23. Amendments
      to Master Servicing Guide and Correspondent Sellers Guide. 

     

    The
      Initial Seller and the Master Servicer hereby agree not to amend the Master
      Servicing Guide or the Correspondent Sellers Guide with respect to the Mortgage
      Loans (which are Securitized Loans (as defined therein)) which amendment would
      (i) change the Servicer Remittance Date or date for remittance of any servicer
      reports or monthly remittance advices, (ii) change the manner in which any
      Servicer makes Advances, servicing advances or amounts to compensate for
      Interest Shortfalls or (iii) otherwise have a material adverse effect on the
      Issuer or the Securityholders unless such changes are made pursuant to the
      provisions of Section 12.01 hereof. 

     

    SECTION
      3.24. Uniform
      Commercial Code.

     

    The
      Securities Administrator agrees to file continuation statements for any Uniform
      Commercial Code financing statements identifying the Issuer as debtor which
      the
      Depositor has informed the Securities Administrator in writing were filed on
      the
      Closing Date in connection with the Issuer, provided that the Securities
      Administrator receives the related filing information on a timely basis. The
      Depositor shall file any financing statements or amendments thereto required
      by
      any change in the Uniform Commercial Code.

     

    
      
         

      

      
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    SECTION
      3.25. Optional
      and Required Purchases of Certain Mortgage Loans.

     

    (a) Thornburg,
      in its capacity as a Servicer of a portion of the Mortgage Loans, shall have
      the
      right to purchase from the Issuer any Mortgage Loan which as of the first day
      of
      a calendar quarter is delinquent in payment by 90 days or more or is an REO
      Property, at a price equal to the Purchase Price; provided,
      however
      (i) that
      such Mortgage Loan is still 90 days or more delinquent or is an REO Property
      as
      of the date of such purchase and (ii) this purchase option, if not theretofore
      exercised, shall terminate on the date prior to the last day of the related
      calendar quarter. This purchase option, if not exercised, shall not be
      thereafter reinstated unless the delinquency is cured and the Mortgage Loan
      thereafter again becomes 90 days or more delinquent or becomes an REO Property,
      in which case the option shall again become exercisable as of the first day
      of
      the related calendar quarter. 

     

    (b)
      The
      Seller, may, but is not required to, repurchase any Mortgage Loan as to which
      the Mortgagor has requested a Significant Modification that is not then
      permitted under the related Mortgage Note if such Mortgagor has a satisfactory
      payment history under such Mortgage Loan and meets the credit standards of
      Thornburg for the loan program selected (a “Significant
      Modification Loan”).
      A
“Significant
      Modification”
shall
      mean any modification to the interest rate of the greater of (i) 0.25% added
      or
      subtracted from the existing rate and (ii) a change equal to the product of
      (a)
      5% and (b) the annual existing interest rate thereon, which is not provided
      for
      in the related Mortgage Note. The purchase price for any repurchase pursuant
      to
      this Section 3.25(b) shall be the applicable Purchase Price. In order to
      exercise its repurchase rights hereunder, the Seller shall deliver to the Master
      Servicer and the Indenture Trustee an Officer’s Certificate identifying the
      Mortgage Loan to be repurchased and certifying that (i) such Mortgage Loan
      is a
      Significant Modification Loan, and (ii) that the Significant Modification Loan
      will be entered into on the date of such repurchase.

     

    (c)
      No
      later than the fourth Business Day prior to each Payment Date, Thornburg will
      provide to the Master Servicer a list identifying all Mortgage Loans that became
      Converted Mortgage Loans or Modified Mortgage Loans during the related Due
      Period. On the third Business Day prior to each Payment Date, provided that
      it
      has received such list from Thornburg, the Master Servicer shall prepare and
      provide to TMI a Converted Mortgage Loan Schedule and a Modified Mortgage Loan
      Schedule with respect to such Due Period. No later than 1:00 PM Eastern Time
      on
      the second Business Day prior to each Payment Date, TMI shall purchase each
      Converted Mortgage Loan and Modified Mortgage Loan, to the extent specified
      in a
      Converted Mortgage Loan Schedule or Modified Mortgage Loan Schedule delivered
      to
      it by the Master Servicer for such Payment Date, at the applicable Purchase
      Price for each such Converted Mortgage Loan or Modified Mortgage Loan, as
      applicable, and shall remit such Purchase Price to the Master Servicer for
      deposit in the Collection Account.

     

    (d) If
      at any
      time Thornburg, the Seller or TMI, as applicable, remits to the Master Servicer
      a payment for deposit in the Collection Account covering the amount of the
      Purchase Price for a Mortgage Loan of the type set forth in clauses (a), (b)
      or
      (c) above, as applicable, and Thornburg, the Seller, or TMI, as applicable,
      provides to the Indenture Trustee a certification signed by a Servicing Officer
      stating that the amount of such payment has been deposited in the Collection
      Account, then the Indenture Trustee shall execute the assignment of such
      Mortgage Loan at the request of Thornburg, the Seller or TMI without recourse
      to
      Thornburg, the Seller or TMI, as applicable, which shall succeed to all the
      Issuer’s and/or the Indenture Trustee’s right, title and interest in and to such
      Mortgage Loan, and all security and documents relative thereto. Such assignment
      shall be an assignment outright and not for security. Thornburg, the Seller
      or
      TMI, as applicable, will thereupon own such Mortgage Loan, and all such security
      and documents, free of any further obligation to the Issuer, the Indenture
      Trustee or the Securityholders with respect thereto.

     

    
      
         

      

      
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    SECTION
      3.26. Realization
      upon Troubled Mortgage Loans.

     

    The
      Master Servicer shall have the right to cause a Servicer to sell or work out
      any
      Mortgage Loan as to which the Master Servicer reasonably believes that default
      in payment is likely, provided,
      however,
      that,
      with respect to any such sale of a Mortgage Loan by a Servicer, the related
      sale
      price shall be no less than the Scheduled Principal Balance of such Mortgage
      Loan as of the last day of the Due Period immediately preceding the date of
      such
      sale plus accrued interest thereon through such sale date. Any and all proceeds
      from such a sale shall be deemed to be Liquidation Proceeds hereunder and any
      such Mortgage Loan which has been sold shall be deemed a Liquidated Mortgage
      Loan hereunder.

     

    SECTION
      3.27. Closing
      Certificate and Opinion.

     

    On
      or
      before the Closing Date, the Master Servicer shall cause to be delivered to
      the
      Depositor, the Initial Seller, the Seller, the Issuer and the Indenture Trustee,
      and Lehman Brothers, Inc. an Opinion of Counsel, dated the Closing Date, in
      form
      and substance reasonably satisfactory to the Depositor, Lehman Brothers, Inc.,
      the Initial Seller and the Seller as to the due authorization, execution and
      delivery of this Agreement by the Master Servicer and the enforceability
      thereof. 

     

    SECTION
      3.28. Liabilities
      of the Master Servicer.

     

    The
      Master Servicer shall be liable in accordance herewith only to the extent of
      the
      obligations specifically imposed upon and undertaken by it herein.

     

    SECTION
      3.29. Merger
      or Consolidation of the Master Servicer.

     

    (a) The
      Master Servicer will keep in full force and effect its existence, rights and
      franchises as a corporation under the laws of the state of its incorporation,
      and will obtain and preserve its qualification to do business as a foreign
      corporation in each jurisdiction in which such qualification is or shall be
      necessary to protect the validity and enforceability of this Agreement, the
      Securities or any of the Mortgage Loans and to perform its duties under this
      Agreement.

     

    
      
         

      

      
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    (b) Any
      Person into which the Master Servicer may be merged or consolidated, or any
      corporation resulting from any merger or consolidation to which the Master
      Servicer shall be a party, or any Person succeeding to the business of the
      Master Servicer, shall be the successor of the Master Servicer hereunder,
      without the execution or filing of any paper or further act on the part of
      any
      of the parties hereto, anything herein to the contrary
      notwithstanding.

     

    
      	
            	SECTION3.30.	
              Indemnification
                of the Initial Seller, the Seller, the Indenture Trustee, the Owner
                Trustee, the Master Servicer and the Securities
                Administrator.

            

    

     

    (a) In
      addition to any indemnity required pursuant to Section 3.22 hereof, the Master
      Servicer agrees to indemnify the Indemnified Persons for, and to hold them
      harmless against, any loss, liability or expense (except as otherwise provided
      herein with respect to expenses) (including reasonable legal fees and
      disbursements of counsel) incurred on their part that may be sustained in
      connection with, arising out of, or relating to this Agreement or the Securities
      (i) related to the Master Servicer’s failure to perform its duties in compliance
      with this Agreement (except as any such loss, liability or expense shall be
      otherwise reimbursable pursuant to this Agreement) or (ii) incurred by reason
      of
      the Master Servicer’s willful misfeasance, bad faith or gross negligence in the
      performance of duties hereunder or by reason of reckless disregard of
      obligations and duties hereunder, provided, in each case, that with respect
      to
      any such claim or legal action (or pending or threatened claim or legal action),
      an Indemnified Person shall have given the Master Servicer and the Depositor
      written notice thereof promptly after such Indemnified Person shall have with
      respect to such claim or legal action knowledge thereof. The Indemnified
      Person’s failure to give such notice shall not affect the Indemnified Person’s
      right to indemnification hereunder. This indemnity shall survive the resignation
      or removal of the Indenture Trustee, the Owner Trustee, the Master Servicer
      or
      the Securities Administrator and the termination of this Agreement.

     

    (b) The
      Issuer will indemnify any Indemnified Person for any loss, liability or expense
      of any Indemnified Person not otherwise indemnified by the Master Servicer
      as
      referred to in Subsection (a) above.

     

    (c) In
      addition to any indemnity required pursuant to Section 3.22 hereof, the
      Securities Administrator agrees to indemnify the Indemnified Persons (other
      than
      the Securities Administrator) for, and to hold them harmless against, any loss,
      liability or expense (except as otherwise provided herein with respect to
      expenses) (including reasonable legal fees and disbursements of counsel)
      incurred on their part (i) in connection with, arising out of, or relating
      to
      the Securities Administrator’s failure to file any Exchange Act report which the
      Securities Administrator is responsible for filing in accordance with Section
      3.19, (ii) by reason of the Securities Administrator’s negligence or willful
      misconduct in the performance of such obligations pursuant to Section 3.19
      or
      (iii) by reason of the Securities Administrator’s reckless disregard of such
      obligations pursuant to Section 3.19, provided, in each case, that with respect
      to any such claim or legal action (or pending or threatened claim or legal
      action), an Indemnified Person shall have given the Securities Administrator
      written notice thereof promptly after such Indemnified Person shall have with
      respect to such claim or legal action knowledge thereof. The Indemnified
      Person’s failure to give such notice shall not affect the Indemnified Person’s
      right to indemnification hereunder. This indemnity shall survive the resignation
      or removal of the Indenture Trustee, the Owner Trustee, the Master Servicer
      or
      the Securities Administrator and the termination of this Agreement.

     

    
      
         

      

      
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    SECTION
      3.31. Limitations
      on Liability of the Master Servicer and Others; Indemnification of Indenture
      Trustee and Others.

     

    Subject
      to the obligation of the Master Servicer to indemnify the Indemnified Persons
      pursuant to Section 3.30:

     

    (a) Neither
      the Master Servicer nor any of the directors, officers, employees or agents
      of
      the Master Servicer shall be under any liability to the Indemnified Persons,
      the
      Depositor, the Issuer or the Securityholders for taking any action or for
      refraining from taking any action in good faith pursuant to this Agreement,
      or
      for errors in judgment; provided,
      however,
      that
      this provision shall not protect the Master Servicer or any such Person against
      any breach of warranties or representations made herein or any liability which
      would otherwise be imposed by reason of such Person’s willful misfeasance, bad
      faith or gross negligence in the performance of duties or by reason of reckless
      disregard of obligations and duties hereunder.

     

    (b) The
      Master Servicer and any director, officer, employee or agent of the Master
      Servicer may rely in good faith on any document of any kind prima facie properly
      executed and submitted by any Person respecting any matters arising
      hereunder.

     

    (c) The
      Master Servicer, the Owner Trustee (in its individual capacity and as Owner
      Trustee), the Indenture Trustee (in its individual corporate capacity and as
      Indenture Trustee), the Custodian (including for such purpose, the Indenture
      Trustee acting in its capacity as Custodian) and any director, officer, employee
      or agent of the Master Servicer, the Owner Trustee, the Indenture Trustee or
      the
      Custodian shall be indemnified by the Issuer and held harmless thereby against
      any loss, liability or expense (except as otherwise provided herein with respect
      to expenses) (including reasonable legal fees and disbursements of counsel)
      incurred on their part that may be sustained in connection with, arising out
      of,
      or relating to, this Agreement, the Securities or any Servicing Agreement or
      the
      transactions contemplated hereby or thereby (except, with respect to the Master
      Servicer, to the extent that the Master Servicer is indemnified by the Servicer
      thereunder), other than (i) with respect to the Master Servicer only, any such
      loss, liability or expense related to the Master Servicer’s failure to perform
      its duties in compliance with this Agreement or (ii) with respect to the Master
      Servicer or Custodian only, any such loss, liability or expense incurred by
      reason of the Master Servicer’s or the Custodian’s willful misfeasance, bad
      faith or gross negligence in the performance of its own duties hereunder or
      by
      reason of reckless disregard of its own obligations and duties hereunder or
      under a custodial agreement.

     

    (d) The
      Master Servicer shall not be under any obligation to appear in, prosecute or
      defend any legal action that is not incidental to its duties under this
      Agreement and that in its opinion may involve it in any expense or liability;
      provided,
      however,
      the
      Master Servicer may in its discretion, undertake any such action which it may
      deem necessary or desirable with respect to this Agreement and the rights and
      duties of the parties hereto and the interests of the Issuer and the
      Securityholders 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 Issuer, and the Master Servicer shall be entitled to be
      reimbursed therefor out of the Collection Account as provided by Section 4.03.
      Nothing in this Subsection 3.31(d) shall affect the Master Servicer’s obligation
      to supervise, or to take such actions as are necessary to ensure, the servicing
      and administration of the Mortgage Loans pursuant to Subsection
      3.01(a).

     

    
      
         

      

      
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    (e) In
      taking
      or recommending any course of action pursuant to this Agreement, unless
      specifically required to do so pursuant to this Agreement, the Master Servicer
      shall not be required to investigate or make recommendations concerning
      potential liabilities which the Issuer might incur as a result of such course
      of
      action by reason of the condition of the Mortgaged Properties but shall give
      notice to the Indenture Trustee if it has notice of such potential
      liabilities.

     

    (f) The
      Master Servicer shall not be liable for any acts or omissions of any Servicer,
      except as otherwise expressly provided herein.

     

    SECTION
      3.32. Master
      Servicer Not to Resign. 

     

    Except
      as
      provided in Section 3.34, the Master Servicer shall not resign from the
      obligations and duties hereby imposed on it except upon a determination that
      any
      such duties hereunder are no longer permissible under applicable law and such
      impermissibility cannot be cured. Any such determination permitting the
      resignation of the Master Servicer shall be evidenced by an Independent Opinion
      of Counsel (delivered at the expense of the Master Servicer) to such effect
      delivered to the Indenture Trustee. No such resignation by the Master Servicer
      shall become effective until the Indenture Trustee or a successor to the Master
      Servicer reasonably satisfactory to the Indenture Trustee shall have assumed
      the
      responsibilities and obligations of the Master Servicer in accordance with
      Section 7.02 hereof. The Indenture Trustee shall notify each Rating Agency
      of
      the resignation of the Master Servicer.

     

    SECTION
      3.33. Successor
      Master Servicer.

     

    In
      connection with the appointment of any successor master servicer or the
      assumption of the duties of the Master Servicer, the Indenture Trustee may
      make
      such arrangements for the compensation of such successor master servicer out
      of
      payments on the Mortgage Loans as the Indenture Trustee and such successor
      master servicer shall agree which in no case shall exceed the Master Servicing
      Fee, plus the portion of investment income on amounts on deposit in the
      Collection Account to which the Master Servicer is entitled hereunder. If the
      successor master servicer does not agree that the proposed compensation is
      fair,
      such successor master servicer shall obtain two quotations of market
      compensation from third parties actively engaged in the servicing of
      single-family mortgage loans; provided,
      however,
      that
      Thornburg, as a Servicer of a portion of the Mortgage Loans, shall have the
      right, but not the obligation, to be appointed successor master servicer in
      the
      event that the Indenture Trustee, in its sole discretion, decides not to assume
      the duties of the Master Servicer itself; and provided,
      further,
      that
      each Rating Agency shall confirm in writing that any appointment of a successor
      Master Servicer (other than the Indenture Trustee) will not result in a
      downgrade in the then current rating of any Class of Notes. 

     

    
      
         

      

      
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    SECTION
      3.34. Sale
      and Assignment of Master Servicing.

     

    The
      Master Servicer may sell and assign its rights and delegate its duties and
      obligations in their entirety as Master Servicer under this Agreement, with
      the
      written consent of Thornburg in its capacity as a Servicer of a portion of
      the
      Mortgage Loans, to be given in its sole discretion, and provided further that:
      (i) the purchaser or transferee accepting such assignment and delegation (a)
      shall be a Person which shall be qualified to service mortgage loans for Fannie
      Mae or Freddie Mac; (b) shall have a net worth of not less than $10,000,000
      (unless otherwise approved by each Rating Agency pursuant to clause (ii) below);
      (c) shall be reasonably satisfactory to Thornburg and the Indenture Trustee
      (as
      evidenced in writing signed by Thornburg and the Indenture Trustee); and (d)
      shall execute and deliver to the Indenture Trustee an agreement, in form and
      substance reasonably satisfactory to the Indenture Trustee, which contains
      an
      assumption by such Person of the due and punctual performance and observance
      of
      each covenant and condition to be performed or observed by it as master servicer
      under this Agreement, any custodial agreement from and after the effective
      date
      of such agreement; (ii) each Rating Agency shall be given prior written notice
      of the identity of the proposed successor to the Master Servicer and each Rating
      Agency’s ratings of the Notes in effect immediately prior to such assignment,
      sale and delegation will not be downgraded, qualified or withdrawn as a result
      of such assignment, sale and delegation, as evidenced by a letter to such effect
      delivered to the Master Servicer and the Indenture Trustee; and (iii) the Master
      Servicer assigning and selling the master servicing shall deliver to the
      Indenture Trustee an Officer’s Certificate and an Independent Opinion of
      Counsel, (delivered at the Master Servicer’s expense) each stating that all
      conditions precedent to such action under this Agreement have been completed
      and
      such action is permitted by and complies with the terms of this Agreement.
      No
      such assignment or delegation shall affect any liability of the Master Servicer
      arising prior to the effective date thereof.

     

    ARTICLE
      IV

     

    ACCOUNTS

     

    SECTION
      4.01. Servicing
      Accounts.

     

    (a) The
      Master Servicer shall enforce the obligation of each Servicer to establish
      and
      maintain one or more custodial accounts (the “Servicing
      Accounts”)
      in
      accordance with the applicable Servicing Agreement, with records to be kept
      with
      respect thereto on a Mortgage Loan by Mortgage Loan basis, into which accounts
      shall be deposited within 48 hours (or as of such other time specified in the
      related Servicing Agreement) of receipt all collections of principal and
      interest on any Mortgage Loan and with respect to any REO Property received
      by a
      Servicer, including Principal Prepayments, Insurance Proceeds, Liquidation
      Proceeds, Subsequent Recoveries and advances made from the Servicer’s own funds
      (less, in the case of each Servicer, the applicable servicing compensation,
      in
      whatever form and amounts as permitted by the applicable Servicing Agreement)
      and all other amounts to be deposited in each such Servicing Account. The
      Servicer is hereby authorized to make withdrawals from and deposits to the
      related Servicing Account for purposes required or permitted by this Agreement
      and the applicable Servicing Agreement. For the purposes of this Agreement,
      Servicing Accounts shall also include such other accounts as the Servicer
      maintains for the escrow of certain payments, such as taxes and insurance,
      with
      respect to certain Mortgaged Properties. Each Servicing Agreement sets forth
      the
      criteria for the segregation, maintenance and investment of each related
      Servicing Account, the contents of which are acceptable to the parties hereto
      as
      of the date hereof and changes to which shall not be made unless such changes
      are made in accordance with the provisions of Section 12.01 hereof.

     

    
      
         

      

      
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    (b) [Reserved];

     

    (c) To
      the
      extent provided in the related Servicing Agreement and subject to this Article
      IV, on or before each Servicer Remittance Date, each Servicer shall withdraw
      or
      shall cause to be withdrawn from the related Servicing Accounts and shall
      immediately deposit or cause to be deposited in the Collection Account amounts
      representing the following collections and payments (other than with respect
      to
      principal of or interest on the Mortgage Loans due on or before the Cut-off
      Date) with respect to each of the Mortgage Loans it is servicing:

     

    (i) Monthly
      Payments on the Mortgage Loans received or any related portion thereof advanced
      by the Servicers pursuant to the Servicing Agreements which were due on or
      before the related Due Date but net of the amount thereof comprising the
      Servicing Fees;

     

    (ii) Principal
      Prepayments in full and any Liquidation Proceeds received by the Servicers
      with
      respect to such Mortgage Loans in the related Prepayment Period, with interest
      to the date of prepayment or liquidation, net of the amount thereof comprising
      the Servicing Fees and any Subsequent Recoveries received in the related
      Prepayment Period;

     

    (iii) Principal
      Prepayments in part received by the Servicers for such Mortgage Loans in the
      related Prepayment Period; 

     

    (iv) Prepayment
      Penalty Amounts, if any, and only if required under the related Servicing
      Agreement; and

     

    (v) any
      amount to be used as a delinquency advance or to pay any Interest Shortfalls,
      in
      each case, as required to be paid under the related Servicing Agreement.

     

    (d) Withdrawals
      may be made from a Servicing Account only to make remittances as provided in
      Section 4.01(c), 4.02 and 4.03; to reimburse the Master Servicer or a Servicer
      for Advances which have been recovered by subsequent collection from the related
      Mortgagor; to remove amounts deposited in error; to remove fees, charges or
      other such amounts deposited on a temporary basis; or to clear and terminate
      the
      account at the termination of this Agreement in accordance with Section 10.01.
      As provided in Sections 4.01(c) and 4.02(b), certain amounts otherwise due
      to
      the Servicers may be retained by them and need not be deposited in the
      Collection Account. 

     

    
      
         

      

      
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    Notwithstanding
      anything herein to the contrary, the Master Servicer shall not be responsible
      for verifying the accuracy of any Prepayment Penalty.

     

    SECTION
      4.02. Collection
      Account. 

     

    (a) The
      Securities Administrator shall establish and maintain in the name of the
      Securities Intermediary for the benefit of the Indenture Trustee and the
      Securityholders, the Collection Account as a segregated account or accounts,
      each of which shall be an Eligible Account. If an existing Collection Account
      ceases to be an Eligible Account, the Securities Administrator shall establish
      a
      new Collection Account that is an Eligible Account within ten (10) days and
      transfer all funds and investment property on deposit in such existing
      Collection Account into the new Collection Account. So long as Wells Fargo
      shall
      act as both the Master Servicer and the Securities Administrator, the Collection
      Account may be a sub-account of the Note Payment Account. To the extent that
      the
      Collection Account is not a sub-account of the Note Payment Account, on each
      Deposit Date, the Securities Administrator shall withdraw from the Collection
      Account and remit to the Note Payment Account the Available Funds for the
      related Payment Date, to the extent received by it or required to be funded
      by
      the Master Servicer. The Collection Account shall constitute an account of
      the
      Indenture Trustee segregated on the books of the Securities Intermediary and
      held by the Securities Administrator in trust in its Corporate Trust Office,
      and
      the Collection Account and the funds deposited therein shall not be subject
      to,
      and shall be protected from, all claims, liens, and encumbrances of any
      creditors or depositors of the Issuer, the Indenture Trustee, the Securities
      Administrator, the Securities Intermediary or the Master Servicer (whether
      made
      directly, or indirectly through a liquidator or receiver of the Issuer, the
      Indenture Trustee, the Securities Administrator, the Securities Intermediary
      or
      the Master Servicer). The amount at any time credited to the Collection Account
      shall be (i) fully insured by the FDIC to the maximum coverage provided thereby
      or (ii) invested by the Securities Administrator, in Permitted Investments,
      in
      accordance with Section 4.02(c). All Permitted Investments shall mature or
      be
      subject to redemption or withdrawal on or before, and shall be held until,
      the
      immediately succeeding Deposit Date. With respect to the Collection Account
      and
      the funds deposited therein, the Securities Administrator shall take such action
      as may be necessary to ensure that the Issuer and the Securityholders shall
      be
      entitled to the priorities afforded to such an account (in addition to a claim
      against the estate of the Securities Administrator, the Securities Intermediary
      or the Indenture Trustee) as provided by 12 U.S.C. § 92a(e), and applicable
      regulations pursuant thereto, if applicable, or any applicable comparable state
      statute applicable to state chartered banking corporations, if applicable.
      The
      Securities Administrator, the Indenture Trustee or their affiliates are
      permitted to receive additional compensation that could be deemed to be in
      the
      their economic self-interest for (i) serving as investment adviser,
      administrator, servicing agent, custodian or sub-custodian with respect to
      certain of the Permitted Investments, (ii) using affiliates to effect
      transactions in certain Permitted Investments and (iii) effecting transactions
      in certain Permitted Investments. The Master Servicer and the Securities
      Administrator will deposit in the Collection Account as identified by the Master
      Servicer or the Securities Administrator and as received by the Master Servicer
      or the Securities Administrator, the following amounts:

     

    
      
         

      

      
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    (i) any
      amounts withdrawn from a Servicing Account pursuant to Section
      4.01(c);

     

    (ii) any
      Advance and any Compensating Interest Payments required to be made by the Master
      Servicer to the extent required but not made by a Servicer; 

     

    (iii) any
      Insurance Proceeds, Liquidation Proceeds or Subsequent Recoveries received
      by or
      on behalf of the Master Servicer or which were not deposited in a Servicing
      Account; 

     

    (iv) the
      Purchase Price with respect to any Mortgage Loans purchased by the Initial
      Seller or the Seller pursuant to Section 2.04 of this Agreement, any
      Substitution Adjustments pursuant to Section 2.04 of this Agreement, the
      Purchase Price with respect to any Mortgage Loans purchased by Thornburg, the
      Initial Seller or TMI pursuant to Section 3.25, and all proceeds of any Mortgage
      Loans or property acquired with respect thereto repurchased by Thornburg (or
      its
      assignee) or the Master Servicer pursuant to Section 10.01;

     

    (v) any
      amounts required to be deposited with respect to losses on investments of
      deposits in the Collection Account; and

     

    (vi) any
      other
      amounts received by or on behalf of the Master Servicer or the Securities
      Administrator and required to be deposited in the Collection Account pursuant
      to
      this Agreement.

     

    (b) All
      amounts deposited to the Collection Account shall be held by the Securities
      Intermediary in the name of the Indenture Trustee in trust for the benefit
      of
      the Indenture Trustee and the Securityholders in accordance with the terms
      and
      provisions of this Agreement. The requirements for crediting the Collection
      Account shall be exclusive, it being understood and agreed that, without
      limiting the generality of the foregoing, payments in the nature of (i) late
      payment charges or assumption, tax service, statement account or payoff,
      substitution, satisfaction, release and other like fees and charges (but
      including, in the case of Thornburg, all Prepayment Penalty Amounts) and (ii)
      the items enumerated in Subsections 4.03(a)(i), (ii), (iii), (iv), (vi), (vii),
      (ix) and (x) and with respect to the Securities Administrator item (xi), need
      not be credited by the Master Servicer or the related Servicer to the Collection
      Account. In the event that the Master Servicer shall deposit or cause to be
      deposited to the Collection Account any amount not required to be credited
      thereto, the Securities Intermediary , upon receipt of a written request
      therefor signed by a Servicing Officer of the Master Servicer, shall promptly
      transfer such amount to the Master Servicer, any provision herein to the
      contrary notwithstanding.

     

    (c) The
      amount
      at any time credited to the Collection Account shall be invested, in the name
      of
      the Securities Intermediary, or its nominee, for the benefit of the Indenture
      Trustee and the Securityholders, in Permitted Investments as follows. All net
      earnings on Permitted Investments shall be for the benefit of Thornburg, in
      its
      capacity as Servicer, except that to the extent the Collection Account is
      treated as a sub-account of the Note Payment Account, the investment income
      with
      respect to investment of the funds in the Collection Account on the Business
      Day
      prior to each Payment Date shall be for the benefit of the Master Servicer.
      All
      Permitted Investments made for the benefit of Thornburg shall be made at the
      written direction of Thornburg to the Securities Administrator (or, if no such
      written direction is received, in investments of the type specified in clause
      (vi) of the definition of Permitted Investments), shall mature or be subject
      to
      redemption or withdrawal on or before, and shall be held until, the Business
      Day
      prior to the next succeeding Deposit Date. Any and all investment earnings
      from
      such Permitted Investments shall be paid to Thornburg, and the risk of loss
      of
      moneys resulting from such investments shall be borne by and be the risk of
      Thornburg. Thornburg shall deposit the amount of any such loss in the Collection
      Account within two Business Days of receipt of notification of such loss but
      not
      later than the next succeeding Payment Date.

     

    
      
         

      

      
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    SECTION
      4.03. Permitted
      Withdrawals and Transfers from the Collection Account.

     

    (a) The
      Securities Administrator will, from time to time on demand of a Servicer, the
      Master Servicer, or for its own account as set forth below, make or cause to
      be
      made such withdrawals or transfers from the Collection Account, in the case
      of a
      demand by a Servicer, as the applicable Servicer has designated for such
      transfer or withdrawal pursuant to the applicable Servicing Agreement, or in
      the
      case of the Master Servicer as set forth below in this Section 4.03, or as
      the
      Securities Administrator has determined to be appropriate in accordance
      herewith, for the following purposes:

     

    (i) to
      reimburse the Master Servicer or any Servicer for any Advance of its own funds
      or of such Servicer’s own funds, the right of the Master Servicer or a Servicer
      to reimbursement pursuant to this subclause (i) being limited to amounts
      received on a particular Mortgage Loan (including, for this purpose, the
      Purchase Price therefor, Insurance Proceeds and Liquidation Proceeds) which
      represent late payments or recoveries of the principal of or interest on such
      Mortgage Loan respecting which such Advance was made;

     

    (ii) to
      reimburse the Master Servicer or any Servicer from Insurance Proceeds or
      Liquidation Proceeds relating to a particular Mortgage Loan for amounts expended
      by the Master Servicer or such Servicer in good faith in connection with the
      restoration of the related Mortgaged Property which was damaged by an Uninsured
      Cause or in connection with the liquidation of such Mortgage Loan;

     

    (iii) to
      reimburse the Master Servicer or any Servicer from Insurance Proceeds relating
      to a particular Mortgage Loan for insured expenses incurred with respect to
      such
      Mortgage Loan and to reimburse the Master Servicer or such Servicer from
      Liquidation Proceeds from a particular Mortgage Loan for Liquidation Expenses
      incurred with respect to such Mortgage Loan; 

     

    (iv) to
      pay
      the Master Servicer or any Servicer, as appropriate, from Liquidation Proceeds
      or Insurance Proceeds received in connection with the liquidation of any
      Mortgage Loan, the amount which it or such Servicer would have been entitled
      to
      receive under subclause (viii) of this Subsection 4.03(a) as servicing
      compensation on account of each defaulted Monthly Payment on such Mortgage
      Loan
      if paid in a timely manner by the related Mortgagor;

     

    
      
         

      

      
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    (v) to
      pay
      the Master Servicer or any Servicer from the Purchase Price for any Mortgage
      Loan, the amount which it or such Servicer would have been entitled to receive
      under subclause (viii) of this Subsection (a) as servicing
      compensation;

     

    (vi) to
      reimburse the Master Servicer or any Servicer for servicing related advances
      of
      funds, the right to reimbursement pursuant to this subclause being limited
      to
      amounts received on the related Mortgage Loan (including, for this purpose,
      the
      Purchase Price therefor, Insurance Proceeds and Liquidation Proceeds) which
      represent late recoveries of the payments for which such servicing advances
      were
      made;

     

    (vii) to
      reimburse the Master Servicer or any Servicer for any Advance or advance, after
      a Realized Loss has been allocated with respect to the related Mortgage Loan if
      the Advance or advance has not been reimbursed pursuant to clauses (i) and
      (vi);

     

    (viii) to
      pay
      the Master Servicer its monthly Master Servicing Fee and any investment income
      and other additional servicing compensation payable pursuant to Section
      3.14;

     

    (ix) to
      reimburse the Master Servicer or the Securities Administrator for any expenses
      recoverable by the Master Servicer or the Securities Administrator pursuant
      to
      Sections 3.03 and 3.31;

     

    (x) to
      pay
      Thornburg, as a Servicer, any Prepayment Penalty Amounts and any earnings
      payable pursuant to Section 4.02(c), and to reimburse or pay any Servicer any
      such amounts as are due thereto under the applicable Servicing Agreement and
      have not been retained by or paid to the Servicer, to the extent provided in
      the
      related Servicing Agreement;

     

    (xi) to
      reimburse the Indenture Trustee, the Owner Trustee and the Securities
      Administrator for expenses, costs and liabilities incurred by or reimbursable
      to
      it from funds of the Issuer pursuant to Sections 3.30, 3.31 or 8.05 (including
      those related to the Custodian, to the extent not paid by Thornburg), and to
      reimburse the Indenture Trustee for any fees, costs and expenses costs incurred
      by or reimbursable to it pursuant to Section 2.03(a), 7.01(b), 8.02, 8.05 or
      8.07, to the extent not otherwise reimbursed to it;

     

    (xii) to
      make
      distributions of Retained Interest to the Retained Interest Holder on each
      Payment Date;

     

    (xiii) to
      pay to
      Thornburg (in its capacity as a Servicer) all investment earnings on amounts
      on
      deposit in the Collection Account to which it is entitled under Section
      4.02(c);

     

    (xiv) to
      remove
      amounts deposited in error; and 

     

    (xv) to
      clear
      and terminate the Collection Account pursuant to Section 10.01. 

     

    
      
         

      

      
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    (b) In
      addition, on or before the Business Day immediately preceding each Deposit
      Date,
      the Master Servicer shall deposit in the Collection Account (or remit to the
      Securities Administrator for deposit therein) any Advances or Compensating
      Interest Payments, to the extent required but not made by the related Servicer
      and required to be made by the Master Servicer with respect to the Mortgage
      Loans.

     

    (c) The
      Securities Administrator or the Master Servicer shall keep and maintain separate
      accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of
      accounting for any payments or reimbursements from the Collection Account
      pursuant to subclauses (i) through (vii), inclusive, (ix) and (x) or with
      respect to any such amounts which would have been covered by such subclauses
      had
      the amounts not been retained by the Master Servicer without being deposited
      in
      the Collection Account under Section 4.02(b).

     

    (d) In
      order
      to comply with its duties under the USA PATRIOT Act of 2001, the Securities
      Administrator shall obtain and verify certain information and documentation
      from
      the other parties hereto, including, but not limited to, each such party's
      name,
      address and other identifying information.

     

    SECTION
      4.04. The
      Note Payment Account.

     

    The
      Securities Administrator shall establish and maintain in the name of the
      Securities Intermediary for the benefit of the Indenture Trustee and the
      Noteholders, the Note Payment Account which shall be an Eligible Account. On
      each Deposit Date, to the extent that the Collection Account is not a
      sub-account of the Note Payment Account, the Securities Administrator shall
      withdraw, on behalf of the Indenture Trustee, from the Collection Account the
      aggregate Available Funds for the related Payment Date for deposit into the
      Note
      Payment Account. The Securities Administrator shall also deposit into the Note
      Payment Account all amounts received on behalf of the Issuer under the Yield
      Maintenance Agreements.

     

    In
      the
      event that the Securities Administrator shall remit into the Note Payment
      Account any amount not required to be remitted by it, it may at any time
      withdraw such amount from the Note Payment Account, any provision herein to
      the
      contrary notwithstanding. All funds deposited in the Note Payment Account shall
      be held by the Securities Intermediary in trust for the Noteholders, until
      disbursed in accordance with this Agreement or withdrawn in accordance with
      Section 5.01.

     

    If
      the
      Note Payment Account ceases to be an Eligible Account, the Securities
      Administrator shall establish a new Note Payment Account that is an Eligible
      Account within 10 days and transfer all funds and investment property on deposit
      in such existing Note Payment Account into such new Note Payment
      Account.

     

    All
      funds
      on deposit in the Note Payment Account may be invested as directed by the
      Securities Administrator in Permitted Investments in the name of the Securities
      Intermediary for the benefit of the Indenture Trustee and the Noteholders which
      shall mature no later than the Payment Date, provided that such Permitted
      Investment is an obligation of the Securities Administrator or otherwise managed
      or advised by the Securities Administrator or an affiliate thereof. All income
      and gain net of realized losses on such investments shall be paid to the Master
      Servicer as additional master servicing compensation except to the extent that
      the Collection Account is treated as a sub-account of the Note Payment Account,
      in which case only investment income earned on the Business Day prior to each
      Payment Date shall be paid to the Master Servicer as additional servicing
      compensation and any remaining investment income shall be paid to Thornburg
      in
      its capacity as Servicer as specified in Section 4.02(c). The amount of any
      realized losses in the Note Payment Account in respect of such investments
      shall
      promptly be deposited therein by the Master Servicer. 

     

    
      
         

      

      
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    The
      Indenture Trustee in its fiduciary capacity shall not be liable for the amount
      of loss incurred in respect of any investment or lack of investment of funds
      held in the Collection Account or the Note Payment Account.

     

    SECTION
      4.05. The
      Certificate Distribution Account

     

    The
      Securities Administrator, for the benefit of the Certificateholders, shall
      establish and maintain in the name of the Issuer an account (the “Certificate
      Distribution Account”)
      entitled “Certificate Distribution Account, Wells Fargo Bank, N.A., as
      Securities Administrator, in trust for the holders of the Thornburg Mortgage
      Securities Trust 2007-2 Ownership Certificates. The Certificate Distribution
      Account shall be an Eligible Account. If an existing Certificate Distribution
      Account ceases to be an Eligible Account, the Securities Administrator shall
      establish a new Certificate Distribution Account that is an Eligible Account
      within 10 days and transfer all funds and investment property on deposit in
      such
      existing Certificate Distribution Account into such new Certificate Distribution
      Account.

     

    On
      each
      Payment Date, the Securities Administrator shall withdraw from the Note Payment
      Account all amounts required to be deposited in the Certificate Distribution
      Account pursuant to Section 5.01(a)(iv)(P) and deposit such amounts into the
      Certificate Distribution Account. On each Payment Date, the Securities
      Administrator, on behalf of the Issuer, shall distribute all amounts on deposit
      in the Certificate Distribution Account in accordance with the provisions of
      the
      Trust Agreement. On the Payment Date on which the aggregate Class Principal
      Amount of the Notes is reduced to zero, the Securities Administrator shall
      distribute all amounts remaining on deposit in the Certificate Distribution
      Account in accordance with the provisions of the Trust Agreement in order to
      clear and terminate the Certificate Distribution Account in connection with
      the
      termination of this Agreement.

     

    SECTION
      4.06. The
      Reserve Fund

     

    The
      Securities Administrator shall establish and maintain in the name of the
      Securities Intermediary for the benefit of the Indenture Trustee and the
      Noteholders the Reserve Fund which shall be an Eligible Account. Amounts
      deposited into the Reserve Fund pursuant to Section 5.01(f)(i) may be invested
      in Permitted Investments for the benefit of the Securityholders at the written
      direction of Thornburg to the Securities Administrator (or, if no such written
      direction is received, in investments of the type specified in clause (vi)
      of
      the definition of Permitted Investments (which investments shall mature on
      or
      before, and shall be held until, the next succeeding Payment Date). Any risk
      of
      loss of moneys resulting from such Permitted Investments shall be borne by,
      and
      be the risk of Thornburg and Thornburg shall deposit the amount of any such
      loss
      in the Reserve Fund within two Business Days of receipt of notification of
      such
      loss from the Securities Administrator, but not later than the Business Day
      prior to the next succeeding Payment Date. The Securities Administrator will
      keep records by Mortgage Loan Group of the source of deposits made into the
      Reserve Fund pursuant to Section 5.01(f)(i). Amounts on deposit in the Reserve
      Fund will be applied in accordance with Section 5.01(f)(i).

     

    
      
         

      

      
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    SECTION
      4.07. Control
      of the Trust Accounts

     

    (a) The
      Depositor, the Issuer and the Indenture Trustee (is hereby directed to and
      does)
      hereby appoint Wells Fargo Bank, N.A., as Securities Intermediary with respect
      to each of the Trust Accounts, and the Issuer has, pursuant to the Indenture,
      granted to the Indenture Trustee, for the benefit of the Noteholders, a security
      interest to secure all amounts due Noteholders hereunder in and to the Trust
      Accounts and the Security Entitlements to all Financial Assets credited to
      the
      Trust Accounts, including without limitation all amounts, securities,
      investments, Financial Assets, investment property and other property from
      time
      to time deposited in or credited to the Trust Accounts and all proceeds thereof.
      Amounts held from time to time in the Trust Accounts will continue to be held
      by
      the Securities Intermediary for the benefit of the Indenture Trustee, as
      collateral agent, for the benefit of the Noteholders. Upon the termination
      of
      the Issuer or the discharge of the Indenture, the Securities Administrator
      on
      behalf of the Indenture Trustee shall inform the Securities Intermediary of
      such
      termination. By acceptance of their Securities or interests therein, the
      Securityholders shall be deemed to have appointed Wells Fargo Bank N.A. as
      Securities Intermediary. Wells Fargo Bank N.A. hereby accepts such appointment
      as Securities Intermediary;

     

    (b) With
      respect to the Trust Account Property credited to the Trust Accounts, the
      Securities Intermediary agrees that:

     

    (i) with
      respect to any Trust Account Property that is held in deposit accounts, each
      such deposit account shall be subject to the exclusive custody and control
      of
      the Securities Intermediary, and the Securities Intermediary shall have sole
      signature authority with respect thereto;

     

    (ii) all
      assets in the Trust Accounts are agreed by the Securities Intermediary to be
      treated as Financial Assets; and

     

    (iii) any
      such
      Trust Account Property that is, or is treated as, a Financial Asset shall be
      physically delivered (accompanied by any required endorsements) to, or credited
      to an account in the name of, the Securities Intermediary or other eligible
      institution maintaining any Trust Accounts in accordance with the Securities
      Intermediary’s customary procedures such that the Securities Intermediary or
      such other institution establishes a Security Entitlement in favor of the
      Indenture Trustee with respect thereto over which the Securities Intermediary
      or
      such other institution has Control,

     

    
      
         

      

      
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    (c) The
      Securities Intermediary hereby confirms that (A) each Trust Account is an
      account to which Financial Assets are or may be credited, and the Securities
      Intermediary shall, subject to the terms of this Agreement, treat the Indenture
      Trustee, as collateral agent, and the Securities Administrator on behalf of
      the
      Indenture Trustee as entitled to exercise the rights that comprise any Financial
      Asset credited to any Trust Account, (B) all Trust Account Property in respect
      of any Trust Account will be promptly credited by the Securities Intermediary
      to
      the applicable account, and (C) all securities or other property underlying
      any
      Financial Assets credited to any Trust Account shall be registered in the name
      of the Securities Intermediary, endorsed to the Securities Intermediary or
      in
      blank or credited to another securities account maintained in the name of the
      Securities Intermediary and in no case will any Financial Asset credited to any
      Trust Account be registered in the name of the Issuer, payable to the order
      of
      the Issuer or specially endorsed to the Issuer, except to the extent the
      foregoing have been specially endorsed to the Securities Intermediary or in
      blank.

     

    (d) The
      Securities Intermediary hereby agrees that each item of property (whether
      investment property, Financial Asset, security, instrument or cash) credited
      to
      any Trust Account shall be treated as a Financial Asset.

     

    (e) If
      at any
      time the Securities Intermediary shall receive an Entitlement Order from the
      Indenture Trustee or from the Securities Administrator on its behalf directing
      transfer or redemption of any Financial Asset relating to any Trust Account,
      the
      Securities Intermediary shall comply with such Entitlement Order without further
      consent by the Issuer, the Securities Administrator or any other Person. If
      at
      any time the Indenture Trustee or Securities Administrator on its behalf
      notifies the Securities Intermediary in writing that the Issuer has been
      terminated or the Indenture discharged in accordance herewith and with the
      Trust
      Agreement or the Indenture, as applicable, and the security interest granted
      pursuant to the Indenture has been released, then thereafter if the Securities
      Intermediary shall receive any order from the Issuer directing transfer or
      redemption of any Financial Asset relating to any Trust Account, the Securities
      Intermediary shall comply with such Entitlement Order without further consent
      by
      the Indenture Trustee or any other Person.

     

    (f) In
      the
      event that the Securities Intermediary has or subsequently obtains by agreement,
      operation of law or otherwise a security interest in any Trust Account or any
      Financial Asset credited thereto, the Securities Intermediary hereby agrees
      that
      such security interest shall be subordinate to the security interest of the
      Indenture Trustee. The Financial Assets credited to the Trust Accounts will
      not
      be subject to deduction, set-off, banker’s lien, or any other right in favor of
      any Person other than the Indenture Trustee (except that the Securities
      Intermediary may set-off the face amount of any checks which have been credited
      to any Trust Account but are subsequently returned unpaid because of uncollected
      or insufficient funds).

     

    (g) There
      are
      no other agreements entered into between the Securities Intermediary in such
      capacity and the Depositor or the Issuer with respect to any Trust Account.
      In
      the event of any conflict between this Agreement (or any provision of this
      Agreement) and any other agreement now existing or hereafter entered into,
      the
      terms of this Agreement shall prevail.

     

    
      
         

      

      
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    (h) The
      rights and powers granted under the Indenture and herein to the Indenture
      Trustee and the Securities Administrator on behalf of the Indenture Trustee
      have
      been granted in order to perfect its security interest in the Trust Accounts
      and
      the Security Entitlements to the Financial Assets credited thereto, and are
      powers coupled with an interest and will neither be affected by the bankruptcy
      of the Issuer nor by the lapse of time. The obligations of the Securities
      Intermediary hereunder shall continue in effect until the security interest
      of
      the Indenture Trustee in the Trust Accounts, and in such Security Entitlements,
      has been terminated pursuant to the terms of this Agreement and the Securities
      Administrator on behalf of the Indenture Trustee has notified the Securities
      Intermediary of such termination in writing.

     

    (i) Notwithstanding
      anything else contained herein, the Issuer agrees that the Trust Accounts will
      be established only with the Securities Intermediary or another institution
      meeting the requirements of this Section, which by acceptance of its appointment
      as Securities Intermediary agrees substantially as follows: (1) it will comply
      with Entitlement Orders related to the Trust Accounts issued by the Indenture
      Trustee, as collateral agent, or the Securities Administrator acting on its
      behalf, without further consent by the Issuer; (2) until termination of the
      Issuer or discharge of the Indenture, it will not enter into any other agreement
      related to such accounts pursuant to which it agrees to comply with Entitlement
      Orders of any Person other than the Indenture Trustee, as collateral agent
      with
      respect to the Trust Accounts or the Securities Administrator acting on its
      behalf; and (3) all assets delivered or credited to it in connection with such
      Trust Accounts and all investments thereof will be promptly credited to the
      applicable account.

     

    (j) Notwithstanding
      the foregoing, the Issuer shall have the power to instruct the Indenture Trustee
      and the Securities Administrator, as applicable, to make withdrawals and
      distributions from the Trust Accounts for the purpose of permitting the
      Indenture Trustee and the Securities Administrator, as applicable, to carry
      out
      its duties under the Indenture.

     

    (k) The
      Issuer agrees to take or cause to be taken such further actions, to execute,
      deliver and file or cause to be executed, delivered and filed such further
      documents and instruments (including, without limitation, any financing
      statements under the Uniform Commercial Code or this Agreement) as may be
      necessary to perfect the interests created by this Section in favor of the
      Indenture Trustee and otherwise fully to effectuate the purposes, terms and
      conditions of this Section. The Issuer shall promptly execute and deliver to
      the
      Securities Administrator for filing any financing statements, amendments,
      continuation statements, assignments, certificates and other documents with
      respect to such interests and perform all such other acts as may be necessary
      in
      order to perfect or to maintain the perfection of the Indenture Trustee’s
      security interest in the Trust Account Property. 

     

    In
      connection with the transactions contemplated by the Operative Agreements
      relating to the Trust Account Property, the Issuer authorizes the Securities
      Administrator on behalf of the Indenture Trustee, to file in any filing office
      any initial financing statements, any amendments to financing statements, any
      continuation statements, or any other statements or filings described in this
      Section 5.09.

     

    
      
         

      

      
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    None
      of
      the Securities Intermediary or any director, officer, employee or agent of
      the
      Securities Intermediary shall be under any liability to the Indenture Trustee
      or
      the Noteholders or any other person or for any action taken, or not taken,
      in
      good faith pursuant to this Agreement, or for errors in judgment; provided,
      however,
      that
      this provision shall not protect the Securities Intermediary against any
      liability to the Indenture Trustee, the Issuer or the Noteholders which would
      otherwise be imposed by reason of the Securities Intermediary’s willful
      misconduct, bad faith or negligence in the performance of its obligations or
      duties hereunder. The Securities Intermediary and any director, officer,
      employee or agent of the Securities Intermediary may rely in good faith on
      any
      document of any kind which, prima facie, is properly executed and submitted
      by
      any Person respecting any matters arising hereunder. The Securities Intermediary
      shall be under no duty to inquire into or investigate the validity, accuracy
      or
      content of such document. The Issuer shall indemnify the Securities Intermediary
      for and hold it harmless against any loss, liability or expense arising out
      of
      or in connection with this Agreement and carrying out its duties hereunder,
      including the costs and expenses of defending itself against any claim of
      liability, except in those cases where the Securities Intermediary has been
      guilty of bad faith, negligence or willful misconduct. The foregoing
      indemnification shall survive any termination of this Agreement or the
      resignation or removal of the Securities Intermediary.

     

    The
      Securities Intermediary shall be entitled to all of the protections, immunities,
      benefits and indemnities afforded to the Indenture Trustee under Articles VII
      and VIII of the Indenture.

     

    ARTICLE
      V

     

    FLOW
      OF FUNDS

     

    SECTION
      5.01. Payments.

     

    (a) On
      each
      Payment Date, the Securities Administrator shall withdraw funds on deposit
      in
      the Note Payment Account to the extent of Available Funds for each Mortgage
      Loan
      Group for such Payment Date and, based on the Payment Date Statement, make
      the
      following disbursements and transfers in the following order of
      priority:

     

    (i) from
      the
      Available Funds for Mortgage Loan Group 1 and amounts received from the Group
      1
      Yield Maintenance Agreement the following shall be paid on each Payment Date
      in
      the following order of priority to the Holders of the Class A-1 Notes:

     

    
      	 	
              (A)

            	
              Current
                Interest for such date; and

            

    

     

    
      	 	
              (B)

            	
              principal
                in an amount up to the Senior Principal Distribution Amount for Mortgage
                Loan Group 1 for that Payment Date, until the Class Principal Amount
                of
                such Class is reduced to zero;

            

    

    

    (ii) from
      the
      Available Funds for Mortgage Loan Group 2 and amounts received under the Group
      2
      Yield Maintenance Agreement the following shall be paid on each Payment Date
      in
      the following order of priority to the Holders of the Class A-2A Notes, Class
      A-2B Notes:

     

    
      
         

      

      
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              (A)

            	
              Current
                Interest on such Classes, pro
                rata
                (based on the amount of Current Interest to which each such Class
                is
                entitled); and

            

    

    

    
      	 	
              (B)

            	
              principal
                in an amount up to the Senior Principal Distribution Amount for Mortgage
                Loan Group 2 for that Payment Date, to the Holders of such Classes,
                pro
                rata,
                in proportion to their respective Class Principal Amounts, until
                the Class
                Principal Amount of each such Class is reduced to
                zero;

            

    

    

    (iii) from
      the
      Available Funds for Mortgage Loan Group 3 and amounts received under the Group
      3
      Yield Maintenance Agreement the following shall be paid on each Payment Date
      in
      the following order of priority to the Holders of the Class A-3A Notes and
      Class
      A-3B Notes:

     

    
      	 	
              (A)

            	
              Current
                Interest on such Classes, pro
                rata
                (based on the amount of Current Interest to which each such Class
                is
                entitled); and

            

    

     

    
      	 	
              (B)

            	
              principal
                in an amount up to the Senior Principal Distribution Amount for Mortgage
                Loan Group 3 for that Payment Date, to the Holders of such Classes,
                pro
                rata,
                in proportion to their respective Class Principal Amounts, until
                the Class
                Principal Amount of each such Class is reduced to zero;
                

            

    

     

    

    (iv) from
      amounts remaining after giving effect to the payments specified in subsections
      (i) through (iii) above, the following amounts shall be paid to the
      Securityholders in the following order of priority:

     

    
      	 	
              (A)

            	
              to
                the Holders of the Class A-X Notes, Current Interest for that
                date;

            

    

     

    
      	 	
              (B)

            	
              to
                the Holders of the Class B-1 Notes, Current Interest for that
                date;

            

    

     

    
      	 	
              (C)

            	
              to
                the Holders of the Class B-1 Notes, an amount allocable to principal
                equal
                to its Pro
                Rata
                Share for such Payment Date until the Class Principal Amount of such
                Class
                is reduced to zero;

            

    

     

    
      	 	
              (D)

            	
              to
                the Holders of the Class B-2 Notes, Current Interest for that
                date;

            

    

     

    
      
         

      

      
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              (E)

            	
              to
                the Holders of the Class B-2 Notes, an amount allocable to principal
                equal
                to its Pro
                Rata
                Share for such Payment Date until the Class Principal Amount of such
                Class
                is reduced to zero;

            

    

     

    
      	 	
              (F)

            	
              to
                the Holders of the Class B-3 Notes, Current Interest for that
                date;

            

    

     

    
      	 	
              (G)

            	
              to
                the Holders of the Class B-3 Notes, an amount allocable to principal
                equal
                to its Pro
                Rata
                Share for such Payment Date until the Class Principal Amount of such
                Class
                is reduced to zero;

            

    

     

    
      	 	
              (H)

            	
              to
                the Holders of the Class B-4 Notes, Current Interest for that
                date;

            

    

     

    
      	 	
              (I)

            	
              to
                the Holders of the Class B-4 Notes, an amount allocable to principal
                equal
                to its Pro
                Rata
                Share for such Payment Date until the Class Principal Amount of such
                Class
                is reduced to zero;

            

    

    

    
      	 	
              (J)

            	
              to
                the Holders of the Class B-5 Notes Current Interest for that
                date;

            

    

    

    
      	 	
              (K)

            	
              to
                the Holders of the Class B-5 Notes, an amount allocable to principal
                equal
                to its Pro
                Rata
                Share for such Payment Date until the Class Principal Amount of such
                Class
                is reduced to zero;

            

    

    

    
      	 	
              (L)

            	
              to
                the Holders of the Class B-6 Notes, Current Interest for that
                date;

            

    

    

    
      	 	
              (M)

            	
              to
                the Holders of the Class B-6 Notes, an amount allocable to principal
                equal
                to its Pro
                Rata
                Share for such Payment Date until the Class Principal Amount of such
                Class
                is reduced to zero; 

            

    

    

    
      	 	
              (N)

            	
              to
                the Holders of the Class A-1, Class A-2A, Class A-2B, Class A-3A
                and Class
                A-3B Notes, on a pro
                rata
                basis (based on the Class A Available Funds Cap Shortfalls to which
                each
                such Class is entitled), any Class A Available Funds Shortfalls with
                respect to each such Class;

            

    

     

    
      	 	
              (O)

            	
              to
                the Holders of the Class A-1, Class A-2A, Class A-2B, Class A-3A
                and Class
                A-3B Notes, on a pro
                rata
                basis (based on the Class A Deferred Amounts to which each such Class
                is
                entitled), the Class A Deferred Amounts with respect to each such
                Class;
                and

            

    

     

    
      	 	
              (P)

            	
              to
                the Securities Administrator for deposit into the Certificate Distribution
                Account for distribution to Certificateholders in accordance with
                the
                Trust Agreement, any Available Funds then
                remaining,

            

    

     

    
      
         

      

      
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    (b) Amounts
      to be paid to the Holders of a Class of Notes shall be payable with respect
      to
      all Notes of that Class, pro
      rata,
      based
      on the Note Principal Amount or Note Notional Amount, as applicable, of each
      Note of that Class.

     

    (c) [Reserved].

     

    (d) [Reserved].

     

    (e) Notwithstanding
      the priority and allocation set forth in Section 5.01(a)(iv) above, if with
      respect to any Class of Subordinate Notes on any Payment Date the sum of the
      related Class Subordination Percentages of all Classes of Subordinate Notes
      which have a higher numerical Class designation than such Class (the
“Applicable
      Credit Support Percentage”)
      is
      less than the Original Applicable Credit Support Percentage for such Class,
      no
      payment of Principal Prepayments or Subsequent Recoveries will be made to any
      such Classes (the “Restricted
      Classes”)
      and
      the amount of such Principal Prepayment otherwise distributable to the
      Restricted Classes shall be distributed to the remaining Classes of Subordinate
      Notes, pro
      rata,
      based
      on the Class Principal Amounts of the respective Classes immediately prior
      to
      such Payment Date and shall be distributed in the sequential order provided
      in
      Section 5.01(a)(iv) above.

     

    (f) (i)
      Notwithstanding the priority and allocation set forth in Section 5.01(a)(i)
      through (iv) above, on each Payment Date prior to the Senior Credit Support
      Depletion Date but after the date on which the aggregate Class Principal Amount
      of the Offered Notes related to a Mortgage Loan Group has been reduced to zero,
      if either (i) the Aggregate Subordinate Percentage on that Payment Date is
      less
      than 200% of the Aggregate Subordinate Percentage as of the Closing Date or
      (ii)
      the outstanding principal balance of all Mortgage Loans delinquent 60 days
      or
      more (including Mortgage Loans in foreclosure and REO Property) averaged over
      the prior six months, as a percentage of the aggregate Class Principal Amount
      of
      the Subordinate Notes, is greater than or equal to 50%, 100% of the amounts
      payable to the Subordinate Notes (as provided under clauses (2) and (3) of
      the
      definition of Subordinate Principal Distribution Amount with respect to the
      Mortgage Loans in the Mortgage Loan Group related to such retired Class of
      Offered Notes) otherwise distributable to each Class of Subordinate Notes
      pursuant to Section 5.01(a)(iv), in reverse order of priority, shall instead
      be
      deposited into the Reserve Fund. Amounts on deposit in the Reserve Fund
      (including all net investment earnings from amounts invested in Permitted
      Investments) will be applied on future Payment Dates to make principal payments
      on the Offered Notes related to an Undercollateralized Group in the same amounts
      and manner described in subsection (f)(ii) of this Section 5.01. If any amounts
      remain in the Reserve Fund after the Class Principal Amounts of all of the
      Offered Notes have been reduced to zero, such amounts shall be allocated to
      the
      Subordinate Notes in the same priorities that the Subordinate Principal
      Distribution Amount is distributed to such Classes pursuant to Section
      5.01(a)(iv) above; provided,
      however,
      if after
      making such payments, the aggregate Class Principal Amount of the Subordinate
      Notes exceeds the Pool Balance, the Class Principal Amount of the Subordinate
      Notes will be reduced by the amount of such excess in inverse order of priority
      (i.e.,
      beginning with the Class of Subordinate Notes then outstanding with the highest
      numerical Class designation) in accordance with Section 5.03(c).

     

    
      
         

      

      
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    (ii) On
      any
      Payment Date on which any of the Group 1 Notes, Group 2 Notes or Group 3 Notes
      constitutes an Undercollateralized Group (or Groups), all amounts otherwise
      distributable as principal on the Subordinate Notes, in reverse order of
      priority (or, following the Senior Credit Support Depletion Date, such other
      amounts described in the immediately following sentence), will be paid as
      principal to the Offered Notes of such Undercollateralized Group pursuant to
      Section 5.01(a) first,
      up to
      the Principal Deficiency Amount for the Undercollateralized Group (such
      distribution, an “Undercollateralization
      Payment”)
      and
second,
      to pay
      to the Subordinate Notes and the Ownership Certificates in the same order and
      priority as provided in Section 5.01(a)(iv). In the event that any of the Group
      1 Notes, Group 2 Notes or Group 3 Notes constitutes an Undercollateralized
      Group
      (or Groups) on any Payment Date following the Senior Credit Support Depletion
      Date, an Undercollateralization Payment will be made from the excess of the
      Available Funds from the Overcollateralized Group (or Groups) remaining after
      all required amounts have been paid to the related Class or Classes of Offered
      Notes of such Overcollateralized Group. In the event there are two
      Undercollateralized Groups, any amounts paid from the Overcollateralized Group
      will be allocated in proportion to the amount of undercollateralization for
      each
      such Undercollateralized Group. All such payments shall be made in accordance
      with the priorities set forth in Section 5.01(a) above.

     

    (g) 
      [Reserved]

     

    (h) [Reserved].

     

    SECTION
      5.02. [Reserved].
      

     

    SECTION
      5.03. Allocation
      of Realized Losses.

     

    (a) On
      or
      prior to each Determination Date, the Securities Administrator shall aggregate
      the loan-level information provided by the Master Servicer with respect to
      the
      total amount of Realized Losses, if any, with respect to the Mortgage Loans
      in
      each Mortgage Loan Group for the related Payment Date and include such
      information in the Payment Date Statement.

     

    (b) Realized
      Losses with respect to each Mortgage Loan Group shall be allocated on any
      Payment Date as follows:

     

    first,
      to the
      Subordinate Notes in reverse order of their respective numerical Class
      designations (beginning with the Class of Subordinate Notes with the highest
      numerical Class designation) until the Class Principal Amount of each such
      Class
      is reduced to zero; and

     

    second,
      but only
      to the extent that any Realized Losses remaining after the allocations in clause
      first
      exceeds
      amounts then on deposit in the Reserve Fund for such Payment Date;

     

    
      
         

      

      
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    (A) with
      respect to Mortgage Loan Group 1, to the Class A-1 Notes, until the Class
      Principal Amount of such Class is reduced to zero; 

     

    (B) with
      respect to Mortgage Loan Group 2, to the Class A-2A and Class A-2B Notes,
pro
      rata, until
      the
      Class Principal Amount of each such Class is reduced to zero; provided,
      however,
      the
      amount of any Realized Losses to be so allocated to the Class A-2A Notes shall
      instead be allocated to the Class A-2B Notes until the Class Principal Amount
      of
      the Class A-2B Notes has been reduced to zero; and

     

    (C) with
      respect to Mortgage Loan Group 3, to the Class A-3A and Class A-3B Notes,
pro
      rata, until
      the
      Class Principal Amount of each such Class is reduced to zero; provided,
      however,
      the
      amount of any Realized Losses to be so allocated to the Class A-3A Notes, shall
      instead be allocated to the Class A-3B Notes until the Class A-3B Notes has
      been
      reduced to zero.

     

    (c) The
      Class
      Principal Amount of the Class of Subordinate Notes then outstanding with the
      highest numerical Class designation shall be reduced on each Payment Date by
      the
      amount, if any, by which the aggregate of the Class Principal Amounts of all
      outstanding Classes of Notes (after giving effect to the payments of principal
      and the allocation of Realized Losses on such Payment Date) exceeds the
      aggregate of the sum of (i) the Scheduled Principal Balances of all the Mortgage
      Loans for the following Payment Date and (ii) amounts then on deposit in the
      Reserve Fund.

     

    (d) Any
      Realized Loss allocated to a Class of Notes or any reduction in the Class
      Principal Amount of a Class of Notes pursuant to Section 5.03(b) or (c) shall
      be
      allocated among the Notes of such Class, pro
      rata,
      in
      proportion to their respective Note Principal Amounts.

     

    (e) Any
      allocation of Realized Losses to a Note or any reduction in the Note Principal
      Amount of a Note pursuant to Section 5.03(b) or (c) shall be accomplished by
      reducing the Note Principal Amount thereof immediately following the payments
      made on the related Payment Date in accordance with the definition of “Note
      Principal Amount.”

     

    SECTION
      5.04. Statements.

     

    (a) Two
      Business Days prior to the Auction Payment Date, the Securities Administrator
      shall make available to the Auction Administrator, and concurrently with each
      payment to Noteholders, the Securities Administrator shall make available to
      each Noteholder, the Seller, the Initial Seller, the Master Servicer, the
      Indenture Trustee, the Yield Maintenance Counterparty and the Rating Agencies,
      a
      statement based, as applicable, on loan-level information provided to it by
      the
      Master Servicer and the Servicers (the “Payment
      Date Statement”)
      as to
      the payments to be made or made, as applicable, on such Payment Date.
      Information in the Payment Date Statement relating to or based on amounts to
      be
      received under the Yield Maintenance Agreements shall be based on information
      provided by the Yield Maintenance Counterparty regarding any Yield Maintenance
      Amounts required to be paid by the Yield Maintenance Counterparty for the
      related Payment Date pursuant to the Yield Maintenance Agreements. The Payment
      Date Statement shall include the following:

     

    
      
         

      

      
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    (i) the
      amount of the payment made on such Payment Date to the Holders of each Class
      of
      Notes allocable to principal;

     

    (ii) the
      amount of the payment made on such Payment Date to the Holders of each Class
      of
      Notes allocable to interest;

     

    (iii) the
      Senior Percentage, Senior Prepayment Percentage, Subordinate Percentage and
      Subordinate Prepayment Percentage with respect to each Mortgage Loan Group
      for
      the following Payment Date;

     

    (iv) the
      aggregate amount of Advances for the related Due Period and the amount of
      unreimbursed Advances;

     

    (v) each
      Mortgage Loan Group Balance and related Available Funds Cap for each Mortgage
      Loan Group at the Close of Business at the end of the related Due
      Period;

     

    (vi) the
      aggregate Principal Balance of the 1-Year CMT Indexed Mortgage Loans at the
      Close of Business at the end of the related Due Period;

     

    (vii) the
      aggregate Principal Balance of the 6-Month LIBOR Indexed, 1-Month LIBOR Indexed
      and 1-Year LIBOR Indexed Mortgage Loans at the Close of Business at the end
      of
      the related Due Period;

     

    (viii) the
      amount of the Master Servicer Fees paid to or retained by the Master
      Servicer;

     

    (ix) the
      aggregate amount of Servicer Fees paid to or retained by the
      Servicers;

     

    (x) to
      the
      extent such amounts are paid out of any Trust Account, the amount of fees,
      expenses or indemnification amounts paid by the Issuer with an identification
      of
      the general purpose of such amounts and the party receiving such
      amounts;

     

    (xi) for
      each
      Mortgage Loan Group, the number, weighted average remaining term to maturity,
      weighted average life and weighted average Mortgage Rate of the related Mortgage
      Loans as of the related Due Date;

     

    (xii) the
      number and aggregate unpaid principal balance of Mortgage Loans, in the
      aggregate and for each Mortgage Loan Group, using the “MBA” method (a) 30
      to 59 days Delinquent, (b) 60 to 89 days Delinquent, (c) 90 or more days
      Delinquent, (d) as to which foreclosure proceedings have been commenced and
      (e)
      in bankruptcy, in each case as of the close of business on the last day of
      the
      preceding calendar month;

     

    (xiii) the
      rolling six-month delinquency rate for that Payment Date;

     

    
      
         

      

      
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    (xiv) the
      total
      number and cumulative principal balance of all REO Properties in each Mortgage
      Loan Group as of the Close of Business of the last day of the preceding Due
      Period;

     

    (xv) the
      aggregate amount of Principal Prepayments and Prepayment Penalty Amounts with
      respect to each Mortgage Loan Group made during the related Prepayment
      Period;

     

    (xvi) the
      aggregate amount of Realized Losses for each Mortgage Loan Group and Subsequent
      Recoveries incurred during the related Due Period and the cumulative amount
      of
      Realized Losses and Subsequent Recoveries as of such Payment Date;

     

    (xvii) the
      cumulative amount of Realized Losses for each Mortgage Loan Group;

     

    (xviii) the
      Realized Losses and Subsequent Recoveries, if any, allocated to each Class
      of
      Notes on the related Payment Date;

     

    (xix) the
      Class
      Principal Amount of each Class of Notes after giving effect to any distributions
      made thereon, on such Payment Date;

     

    (xx) the
      Current Interest in respect of each Class of Notes, for such Payment Date and
      the respective portions thereof, if any, remaining unpaid following the payments
      made in respect of such Notes on such Payment Date;

     

    (xxi) the
      Available Funds with respect to each Mortgage Loan Group;

     

    (xxii) the
      Note
      Interest Rate for each Class of Notes for such Payment Date and the level of
      One-Month LIBOR or One-Year LIBOR, as applicable, used to determine the
      applicable Interest Rate; 

     

    (xxiii) the
      aggregate Principal Balance of Mortgage Loans purchased hereunder by the Initial
      Seller, the Seller or TMI during the related Due Period, and indicating the
      Section of this Agreement requiring or allowing the purchase of each such
      Mortgage Loan; 

     

    (xxiv) the
      amount of any Principal Deficiency Amounts or Accrued Interest Amounts paid
      to
      an Undercollateralized Group or amounts paid pursuant to Section
      5.01(f)(i);

     

    (xxv) (A)
      the
      amounts paid to each Class of Offered Notes from Yield Maintenance Amounts
      received from the Yield Maintenance Counterparty for such period, expressed
      as a
      dollar amount and (B) the Yield Maintenance Amount and applicable Strike Rate
      for each Yield Maintenance Agreement for such Payment Date; 

     

    (xxvi) on
      the
      Auction Payment Date, the Par Price (as defined in the Auction Administration
      Agreement) for each Class of Auction Notes as reported to the Master Servicer
      by
      the Securities Administrator;

     

    
      
         

      

      
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    (xxvii) the
      total
      number of Mortgage Loans in the aggregate and the aggregate Scheduled Principal
      Balance in the aggregate and separately for the Group 1 Mortgage Loans (also
      separately stating such information for the Three-Year Hybrid Mortgage Loans
      and
      the Five-Year Hybrid Mortgage Loans), the Group 2 Mortgage Loans and the Group
      3
      Mortgage Loans, in each case at the close of business at the end of the related
      Due Period; and

     

    (xxviii) the
      amount, if any, remaining on deposit in the Reserve Fund.

     

    The
      Securities Administrator will make the Payment Date Statement (and, at its
      option, any additional files containing the same information in an alternative
      format) available each month to Securityholders and the other parties to this
      Agreement via the Securities Administrator’s internet website. The Securities
      Administrator’s internet website shall initially be located at “www.ctslink.com.”
      Assistance in using the website can be obtained by calling the Securities
      Administrator’s customer service desk at (301) 815-6600. Parties that are unable
      to use the above distribution option are entitled to have a paper copy mailed
      to
      them via first class mail by calling the customer service desk and indicating
      such. The Securities Administrator shall have the right to change the way such
      reports are distributed in order to make such distribution more convenient
      and/or more accessible to the parties, and the Securities Administrator shall
      provide timely and adequate notification to all parties regarding any such
      change.

     

    In
      the
      case of information furnished pursuant to subclauses (i) and (ii) above, the
      amounts shall be expressed in a separate section of the report as a dollar
      amount for each Class for each $1,000 original dollar amount as of the Cut-Off
      Date.

     

    (b) Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall, upon written request, furnish to each Person who at any
      time during the calendar year was a Noteholder, if requested in writing by
      such
      Person, such information as is reasonably necessary to provide to such Person
      a
      statement containing the information set forth in subclauses (i) and (ii) above,
      aggregated for such calendar year or applicable portion thereof during which
      such Person was a Noteholder and such other customary information which a
      Securityholder reasonably requests to prepare its tax returns. Such obligation
      of the Securities Administrator shall be deemed to have been satisfied to the
      extent that substantially comparable information shall be prepared and furnished
      by the Securities Administrator to Securityholders pursuant to any requirements
      of the Code as are in force from time to time.

     

    (c) On
      each
      Payment Date, the Securities Administrator shall supply an electronic tape
      to
      Bloomberg Financial Markets, Inc. in a format acceptable to Bloomberg Financial
      Markets, Inc. on a monthly basis, and shall supply an electronic tape to Loan
      Performance and Intex Solutions in a format acceptable to Loan Performance
      and
      Intex Solutions on a monthly basis.

     

    
      
         

      

      
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    SECTION
      5.05. Remittance
      Reports; Advances. 

     

    (a) No
      later
      than the second Business Day following each Determination Date, the Master
      Servicer shall deliver to the Securities Administrator by telecopy or electronic
      mail (or by such other means as the Master Servicer and the Securities
      Administrator may agree from time to time) the Remittance Report with respect
      to
      the related Payment Date. Not later than the Close of Business New York time
      three Business Days prior to the related Payment Date, the Master Servicer
      shall
      deliver or cause to be delivered to the Securities Administrator in addition
      to
      the information provided on the Remittance Report, such other loan-level
      information reasonably available to it with respect to the Mortgage Loans as
      the
      Securities Administrator may reasonably require to perform the calculations
      necessary to make the payments contemplated by Section 5.01. 

     

    (b) If
      the
      Monthly Payment on a Mortgage Loan that was due on a related Due Date and is
      delinquent, other than as a result of application of the Relief Act or similar
      state or local law, and for which the related Servicer was required to make
      an
      advance pursuant to the related Servicing Agreement exceeds the amount deposited
      in the Collection Account which will be used for an advance with respect to
      such
      Mortgage Loan, the Master Servicer will deposit in the Collection Account not
      later than the Business Day immediately preceding the related Payment Date
      an
      amount equal to such deficiency, net of the Servicing Fee and the Master
      Servicing Fee, for such Mortgage Loan except to the extent the Master Servicer
      determines any such Advance to be Nonrecoverable from Liquidation Proceeds,
      Insurance Proceeds or future payments on the Mortgage Loan for which such
      Advance was made. Subject to the foregoing, the Master Servicer shall continue
      to make such Advances through the date that the related Servicer is required
      to
      do so under its Servicing Agreement. If applicable, on the Business Day
      immediately preceding the related Payment Date, the Master Servicer shall
      present an Officer’s Certificate to the Securities Administrator and the
      Indenture Trustee (i) stating that the Master Servicer elects not to make a
      Advance in a stated amount and (ii) detailing the reason it deems the advance
      to
      be Nonrecoverable.

     

    SECTION
      5.06. Compensating
      Interest Payments.

     

    The
      amount of the Master Servicing Fee payable to the Master Servicer in respect
      of
      any Payment Date shall be reduced (but not below zero) by the amount of any
      Compensating Interest Payment for such Payment Date, but only to the extent
      that
      Interest Shortfalls relating to such Payment Date are required to be paid but
      are not actually paid by the related Servicers on the applicable Servicer
      Remittance Date. Such amount shall not be treated as an Advance and shall not
      be
      reimbursable to the Master Servicer.

     

    
      
         

      

      
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    SECTION
      5.07. [Reserved].

     

    SECTION
      5.08. [Reserved].

     

    SECTION
      5.09. Yield
      Maintenance Accounts.

     

    (a) The
      Securities Administrator is hereby directed by the Depositor to execute and
      deliver the Yield Maintenance Agreements on behalf of the Issuer, for the
      benefit of the Class A-1 Notes (the “Group
      1 Yield Maintenance Agreement”),
      and
      the Class A-2A and Class A-2B Notes (the “Group
      2 Yield Maintenance Agreement”)
      and
      for the benefit of the Class A-3A and Class A-3B Notes (the Group
      3 Yield Maintenance Agreement”),
      in
      the forms presented to it by the Depositor and shall have no responsibility
      for
      the contents, adequacy or sufficiency of the Yield Maintenance Agreements,
      including, without limitation, the representations and warranties contained
      therein. Each Holder of an Offered Note is deemed, by acceptance of such Note,
      to authorize the Securities Administrator to execute and deliver the Yield
      Maintenance Agreements.

     

    (b) Pursuant
      to each Yield Maintenance Agreement, the Yield Maintenance Counterparty shall
      have provided the Securities Administrator, the Indenture Trustee and the Master
      Servicer with notice of the Yield Maintenance Amount, if any, to be paid by
      the
      Yield Maintenance Counterparty to the Securities Administrator for the account
      of the Issuer pursuant to such Yield Maintenance Agreement for each Payment
      Date. Any Yield Maintenance Amount received by the Securities Administrator
      pursuant to any Yield Maintenance Agreement in connection with each such Payment
      Date shall be deposited into the Note Payment Account and shall be applied
      on
      each Payment Date, together with Available Funds for such date with respect
      to
      each Mortgage Loan Group, in accordance with the priorities set forth in Section
      5.01(a).

     

    SECTION
      5.10. Subsequent
      Recoveries.

     

    (a) The
      Class
      Principal Amount of any Class of Notes to which a Realized Loss has been
      allocated (including any such Class for which the related Class Principal Amount
      has been reduced to zero) will be increased up to the amount of Subsequent
      Recoveries for such Payment Date as follows:

     

    (i) first,
      to
      increase the Class Principal Amount of each such Class of Offered Notes of
      the
      related Mortgage Loan Group, pro
      rata,
      up to
      the amount of Realized Losses previously allocated to reduce the Class Principal
      Amount for each such Class, and

     

    (ii) second,
      to
      increase the Class Principal Amount of each such Class of Subordinate Notes,
      in
      order of seniority, up to the amount of Realized Losses previously allocated
      to
      reduce the Class Principal Amount for each such Class.

     

    
      
         

      

      
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    (b) Any
      increase to the Class Principal Amount of a Class of Notes shall increase the
      Note Principal Amount of each Note of the related Class pro
      rata
      in
      accordance with the applicable Percentage Interest.

     

    ARTICLE
      VI

     

    [Reserved]

     

    ARTICLE
      VII

     

    DEFAULT

     

    SECTION
      7.01. Event
      of Default. 

     

    (a) If
      any
      one of the following events (each, an “Event
      of Default”)
      shall
      occur and be continuing: 

     

    (i) the
      failure by the Master Servicer to (A) make any Advance on the Business Day
      immediately preceding the related Payment Date or (B) to deposit in the
      Collection Account any deposit required to be made under the terms of this
      Agreement, and in either case such failure continues unremedied for a period
      of
      three Business Days after the date upon which written notice of such failure,
      requiring the same to be remedied, shall have been given to the Master Servicer
      (or, if applicable, such shorter time period as is provided in the penultimate
      sentence of Section 7.01(c)); or

     

    (ii) the
      failure by the Master Servicer duly to observe or perform, in any material
      respect, any other covenants, obligations or agreements of the Master Servicer
      as set forth in this Agreement, which failure continues unremedied for a period
      of 60 days, in each case after the date (A) on which written notice of such
      failure, requiring the same to be remedied, shall have been given to the Master
      Servicer by the Indenture Trustee or to the Master Servicer and the Indenture
      Trustee by Noteholders evidencing at least 25% of the Voting Rights or (B)
      on
      which a Servicing Officer of the Master Servicer has actual knowledge of such
      failure (or, in the case of a breach of its obligation beyond any applicable
      cure period to provide an assessment of compliance, an attestation report or
      a
      Sarbanes-Oxley Certification pursuant to Sections 3.16 and 3.18, respectively);
      or

     

    (iii) the
      entry
      against the Master Servicer of a decree or order by a court or agency or
      supervisory authority having jurisdiction in the premises for the appointment
      of
      a trustee, conservator, receiver or liquidator in any insolvency,
      conservatorship, receivership, readjustment of debt, marshalling of assets
      and
      liabilities or similar proceedings, or for the winding up or liquidation of
      its
      affairs, and the continuance of any such decree or order unstayed and in effect
      for a period of 60 days; or 

     

    (iv) the
      Master Servicer shall voluntarily go into liquidation, consent to the
      appointment of a conservator or receiver or liquidator or similar person in
      any
      insolvency, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings of or relating to the Master Servicer or of or relating
      to
      all or substantially all of its property; or a decree or order of a court or
      agency or supervisory authority having jurisdiction in the premises for the
      appointment of a conservator, receiver, liquidator or similar person 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, unbonded or unstayed for a period of 60
      days; or the Master Servicer shall admit in writing its inability to pay its
      debts generally as they become due, file a petition to take advantage of any
      applicable insolvency or reorganization statute, make an assignment for the
      benefit of its creditors or voluntarily suspend payment of its
      obligations;

     

    
      
         

      

      
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    (b) then,
      and
      in each and every such case, so long as an Event of Default shall not have
      been
      remedied within the applicable grace period, the Indenture Trustee shall, at
      the
      written direction of the Majority Securityholders, or at its option may, with
      the consent of Thornburg (not to be unreasonably withheld), by notice then
      given
      in writing to the Master Servicer, terminate all of the rights and obligations
      of the Master Servicer as master servicer under this Agreement. Any such notice
      to the Master Servicer shall also be given to each Rating Agency, the Depositor,
      the Owner Trustee and the Sellers. On or after the receipt by the Master
      Servicer (and by the Indenture Trustee if such notice is given by the Holders)
      of such written notice, all authority and power of the Master Servicer under
      this Agreement, whether with respect to the Notes or the Mortgage Loans or
      otherwise, shall pass to and be vested in the Indenture Trustee and the
      Indenture 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 of each Mortgage
      Loan and related documents or otherwise. The Master Servicer agrees to cooperate
      with the Indenture Trustee in effecting the termination of the responsibilities
      and rights of the Master Servicer hereunder, including, without limitation,
      the
      delivery to the Indenture Trustee of all documents and records requested by
      it
      to enable it to assume the Master Servicer's functions under this Agreement
      within ten Business Days subsequent to such notice and the transfer within
      one
      Business Day subsequent to such notice to the Indenture Trustee for the
      administration by it of all cash amounts that shall at the time be held by
      the
      Master Servicer and to be deposited by it in the Collection Account, any REO
      Account or any Servicing Account or that have been deposited by the Master
      Servicer in such accounts or thereafter received by the Master Servicer with
      respect to the Mortgage Loans or any REO Property received by the Master
      Servicer. All reasonable costs and expenses (including attorneys’ fees) incurred
      in connection with transferring the Master Servicer’s duties and the Mortgage
      Files to the successor Master Servicer and amending this Agreement to reflect
      such succession as Master Servicer pursuant to this Section shall be paid by
      the
      predecessor Master Servicer (or if the predecessor Master Servicer is the
      Indenture Trustee, the initial Master Servicer) upon presentation of reasonable
      documentation of such costs and expenses. The termination of the rights and
      obligations of the Master Servicer shall not affect any liability it may have
      incurred prior to such termination. To the extent that such costs and expenses
      of the Indenture Trustee are not fully and timely reimbursed by the predecessor
      Master Servicer, the Indenture Trustee shall be entitled to reimbursement of
      such costs and expenses from the Collection Account.

     

    
      
         

      

      
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    (c) The
      Securities Administrator shall not later than the close of business on the
      Business Day immediately preceding the related Payment Date notify the Indenture
      Trustee in writing of the Master Servicer’s failure to make any Advance required
      to be made under this Agreement on such date and the amount of such Advance.
      By
      no later than 10:00 A.M. (Chicago time) on the relevant Payment Date, the
      Securities Administrator shall notify the Indenture Trustee of the continuance
      of such failure or that the Master Servicer has made the Advance, as the case
      may be. Notwithstanding the terms of the Event of Default described in clause
      (i)(A) of Section 7.01(a), the Indenture Trustee, upon receipt of written notice
      on the Payment Date from the Securities Administrator of the continuance of
      the
      failure of the Master Servicer to make an Advance, shall, by notice in writing
      to the Master Servicer, which may be delivered by telecopy, immediately suspend
      all of the rights and obligations of the Master Servicer thereafter arising
      under this Agreement, but without prejudice to any rights it may have as a
      Securityholder or to reimbursement of outstanding Advances or other amounts
      for
      which the Master Servicer was entitled to reimbursement as of the date of
      suspension, and the Indenture Trustee, subject to the cure provided for in
      this
      paragraph, if available, shall act as provided in Section 7.02 to carry out
      the
      duties of the Master Servicer, including the obligation to make any Advance
      the
      nonpayment of which is described in clause (i)(A) of Section 7.01(a). Any such
      action taken by the Indenture Trustee must be prior to the payment on the
      relevant Payment Date, and shall have all of the rights incidental thereto.
      If
      the Master Servicer shall within two Business Days following such suspension
      remit to the Indenture Trustee the amount of any Advance the nonpayment of
      which
      by the Master Servicer is described in clause (i)(A) of Section 7.01(a),
      together with all other amounts necessary to reimburse the Indenture Trustee
      for
      actual, necessary and reasonable costs incurred by the Indenture Trustee because
      of action taken pursuant to this subsection (including interest on any Advance
      or other amounts paid by the Indenture Trustee (from and including the
      respective dates thereof) at a per annum rate equal to the prime rate for U.S.
      money center commercial banks as published in the Wall Street Journal), then
      the
      Indenture Trustee, subject to the last two sentences of this paragraph, shall
      permit the Master Servicer to resume its rights and obligations as Master
      Servicer hereunder. If the Master Servicer shall fail to remit such amounts
      to
      the Indenture Trustee within such two Business Days after the Payment Date,
      then
      an Event of Default shall occur and such notice of suspension shall be deemed
      to
      be a notice of termination without any further action on the part of the
      Indenture Trustee. The Master Servicer agrees that if it fails to make a
      required Advance by 10:00 A.M. (Chicago time) on the related Payment Date on
      more than two occasions in any 12 month period, the Indenture Trustee shall
      be
      under no obligation to permit the Master Servicer to resume its rights and
      obligations as Master Servicer hereunder, and notwithstanding the cure period
      provided in Section 7.01(a)(i)(A), an Event of Default shall be deemed to have
      occurred on the relevant Payment Date. 

     

    SECTION
      7.02. Indenture
      Trustee to Act.

     

    (a) From
      and
      after the date the Master Servicer (and the Indenture Trustee, if notice is
      sent
      by the Holders) receives a notice of termination pursuant to Section 7.01,
      the
      Indenture Trustee shall be the successor in all respects to the Master Servicer
      in its capacity as master 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 arising on and after its succession. As compensation
      therefor, the Indenture Trustee shall be entitled to such compensation as the
      Master Servicer would have been entitled to hereunder if no such notice of
      termination had been given. Notwithstanding the above, (i) if the Indenture
      Trustee is unwilling to act as successor Master Servicer or (ii) if the
      Indenture Trustee is legally unable so to act, subject to the rights of
      Thornburg under Section 3.33 hereof, the Indenture Trustee shall appoint or
      petition a court of competent jurisdiction to appoint, any established housing
      and home finance institution, bank or other mortgage loan or home equity loan
      servicer having a net worth of not less than $15,000,000 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;
      provided, that the appointment of any such successor Master Servicer shall
      not
      result in the qualification, reduction or withdrawal of the ratings assigned
      to
      the Notes by each Rating Agency as evidenced by a letter to such effect from
      each Rating Agency. Pending appointment of a successor to the Master Servicer
      hereunder, unless the Indenture Trustee is prohibited by law from so acting,
      the
      Indenture Trustee shall act in such capacity as hereinabove provided. In
      connection with such appointment and assumption, the successor shall be entitled
      to receive compensation out of payments on Mortgage Loans in an amount equal
      to
      the compensation which the Master Servicer would otherwise have received
      pursuant to Section 3.19. The appointment of a successor Master Servicer shall
      not affect any liability of the predecessor Master Servicer which may have
      arisen under this Agreement prior to its termination as Master Servicer to
      pay
      any deductible under an insurance policy pursuant to Section 3.14 or to
      indemnify the Indenture Trustee pursuant to Section 8.05, nor shall any
      successor Master Servicer be liable for any acts or omissions of the predecessor
      Master Servicer or for any breach by such Master Servicer of any of its
      representations or warranties contained herein or in any related document or
      agreement. The Indenture Trustee and such successor shall take such action,
      consistent with this Agreement, as shall be necessary to effectuate any such
      succession.

     

    
      
         

      

      
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    (b) Any
      successor, including the Indenture Trustee, to the Master Servicer as Master
      Servicer shall during the term of its service as Master Servicer continue to
      service and administer the Mortgage Loans for the benefit of Securityholders,
      and maintain in force a policy or policies of insurance covering errors and
      omissions in the performance of its obligations as Master Servicer hereunder
      and
      a Fidelity Bond in respect of its officers, employees and agents to the same
      extent as the Master Servicer is so required pursuant to Section
      3.04.

     

    (c) Notwithstanding
      anything else herein to the contrary, in no event shall the Indenture Trustee
      be
      liable for any servicing fee or for any differential in the amount of the
      servicing fee paid hereunder and the amount necessary to induce any successor
      Master Servicer to act as successor Master Servicer under this Agreement and
      the
      transactions set forth or provided for herein.

     

    
      
         

      

      
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    SECTION
      7.03. Waiver
      of Event of Default.

     

    The
      Majority Securityholders may, on behalf of all Securityholders, by notice in
      writing to the Indenture Trustee, direct the Indenture Trustee to waive any
      events permitting removal of any Master Servicer under this Agreement,
provided,
      however,
      that
      the Majority Securityholders may not waive an event that results in a failure
      to
      make any required payment on a Note without the consent of the Holder of such
      Note. Upon any waiver of an Event of Default, such event shall cease to exist
      and any Event of Default arising therefrom shall be deemed to have been remedied
      for every purpose of this Agreement. No such waiver shall extend to any
      subsequent or other event or impair any right consequent thereto except to
      the
      extent expressly so waived. Notice of any such waiver shall be given by the
      Indenture Trustee to each Rating Agency.

     

    SECTION
      7.04. Notification
      to Securityholders.

     

    (a) Upon
      any
      termination or appointment of a successor to any Master Servicer pursuant to
      this Article VII or Section 3.34, the Note Registrar or the Indenture Trustee,
      if the Master Servicer is also the Note Registrar and Securities Administrator,
      shall give prompt written notice thereof to the Noteholders at their respective
      addresses appearing in the Note Register and to each Rating Agency.

     

    (b) No
      later
      than 60 days after the occurrence of any event which constitutes or which,
      with
      notice or a lapse of time or both, would constitute an Event of Default of
      which
      a Responsible Officer of the Indenture Trustee becomes aware of the occurrence
      of such an event, the Indenture Trustee shall transmit by mail to all
      Noteholders notice of such occurrence unless such Event of Default shall have
      been waived or cured.

     

    SECTION
      7.05. Action
      Upon Master Servicer Event of Default.

     

    If
      an
      Event of Default has occurred (which has not been cured or waived) of which
      a
      Responsible Officer has actual knowledge, the Indenture 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 man would exercise
      or
      use under the circumstances in the conduct of his own affairs, unless the
      Indenture Trustee is acting as successor Master Servicer, in which case it
      shall
      use the same degree of care and skill as the Master Servicer hereunder with
      respect to the exercise of the rights and powers of the Master Servicer
      hereunder; provided,
      however,
      the
      Indenture Trustee shall not be charged with knowledge of any Event of Default
      or
      any other event or matter that may require it to take action or omit to take
      action hereunder unless a Responsible Officer of the Indenture Trustee at the
      Corporate Trust Office obtains actual knowledge of such failure or the Indenture
      Trustee receives written notice of such Event of Default.

     

    SECTION
      7.06. Additional
      Remedies of Indenture Trustee Upon Event of Default.

     

    In
      case
      an Event of Default or a default by the Depositor hereunder shall occur and
      be
      continuing, the Indenture Trustee may proceed to protect and enforce its rights
      and the rights of the Noteholders under this Agreement, as the case may be,
      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 Indenture
      Trustee, being advised by counsel, and subject to the foregoing, shall deem
      most
      effectual to protect and enforce any of the rights of the Indenture Trustee
      and
      the Noteholders.

    
      
         

      

      
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    ARTICLE
      VIII

     

    THE
      INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

     

    SECTION
      8.01. Duties
      of Indenture Trustee and Securities Administrator.

     

    The
      Indenture Trustee and the Securities Administrator, upon receipt of all
      resolutions, certificates, statements, opinions, reports, documents, orders
      or
      other instruments furnished to the Indenture Trustee and the Securities
      Administrator, which are specifically required to be furnished pursuant to
      any
      provision of this Agreement, shall examine them to determine whether they
      conform to the requirements of this Agreement; provided,
      however,
      that
      neither the Indenture Trustee nor the Securities Administrator will be
      responsible for the accuracy or content of any such resolutions, certificates,
      statements, opinions, reports, documents or other instruments. If any such
      instrument is found not to conform to the requirements of this Agreement in
      a
      material manner the Indenture Trustee and the Securities Administrator shall
      take such action as it deems appropriate to have the instrument
      corrected.

     

    On
      each
      Payment Date, the Securities Administrator shall make monthly payments to the
      Noteholders from funds in the Note Payment Account and to the Certificateholders
      from funds in the Certificate Distribution Account, in each case as provided
      in
      Sections 5.01, 5.09 and 10.01 hereof based on the report of the Securities
      Administrator.

     

    No
      provision of this Agreement shall be construed to relieve the Indenture Trustee
      or the Securities Administrator from liability for its own negligent action,
      its
      own negligent failure to act or its own willful misconduct; provided,
      however,
      that:

     

    (i) prior
      to
      the occurrence of an Event of Default, and after the curing of all such Events
      of Default which may have occurred, the duties and obligations of the Indenture
      Trustee and the Securities Administrator shall be determined solely by the
      express provisions of this Agreement and the Indenture, in the case of the
      Indenture Trustee, and this Agreement, the Indenture, the Trust Agreement and
      the Administration Agreement, in the case of the Securities Administrator,
      neither the Indenture Trustee nor the Securities Administrator shall be liable
      except for the performance of such of its duties and obligations as are
      specifically set forth in this those agreements, no implied covenants or
      obligations shall be read into such agreements against the Indenture Trustee
      or
      the Securities Administrator and, in the absence of bad faith on the part of
      the
      Indenture Trustee or the Securities Administrator, respectively, the Indenture
      Trustee or the Securities Administrator 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 Indenture Trustee or the
      Securities Administrator, respectively, and conforming to the requirements
      of
      this Agreement or such other agreements, as applicable;

     

    
      
         

      

      
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    (ii) neither
      the Indenture Trustee nor the Securities Administrator shall be liable for
      an
      error of judgment made in good faith by a Responsible Officer of the Indenture
      Trustee or an officer of the Securities Administrator, respectively, unless
      it
      shall be proved that the Indenture Trustee or the Securities Administrator,
      respectively, was negligent in ascertaining or investigating the facts related
      thereto; and

     

    (iii) neither
      the Indenture Trustee nor the Securities Administrator shall be personally
      liable with respect to any action taken, suffered or omitted to be taken by
      it
      in good faith in accordance with the consent or at the direction of
      Securityholders as provided herein relating to the time, method and place of
      conducting any remedy pursuant to this Agreement, or exercising or omitting
      to
      exercise any trust or power conferred upon the Indenture Trustee or the
      Securities Administrator, respectively, under this Agreement; 

     

    The
      Securities Administrator shall pay any and all tax related expenses (not
      including taxes) of the Issuer, including but not limited to any professional
      fees or expenses related to audits or any administrative or judicial proceedings
      with respect to the Issuer that involve the Internal Revenue Service or state
      tax authorities, but only to the extent that (i) such expenses are ordinary
      or
      routine expenses, including expenses of a routine audit but not expenses of
      litigation (except as described in (ii)); or (ii) such expenses or liabilities
      (including taxes and penalties) are attributable to the negligence or willful
      misconduct of the Securities Administrator in fulfilling its duties hereunder
      (including the Securities Administrator’s duties as tax return
      preparer).

     

    The
      Securities Administrator shall prepare and file, and the Owner Trustee shall
      sign the tax returns of the Issuer, to the extent that a tax return is required
      to be filed by the Issuer. The expenses of preparing and filing such tax returns
      shall be borne by the Securities Administrator. Notwithstanding the foregoing,
      the Securities Administrator shall have no obligation to prepare, file or
      otherwise deal with partnership tax information or returns. In the event that
      partnership tax information or returns are required by the Internal Revenue
      Service, the Initial Seller, at its own cost and expense, will prepare and
      file
      all necessary returns. 

     

    The
      Securities Administrator shall perform on behalf of the Issuer all reporting
      and
      other tax compliance duties that are the responsibility of the Issuer under
      the
      Code or other compliance guidance issued by the Internal Revenue Service or
      any
      state or local taxing authority. Among its other duties, if required by the
      Code
      or other such guidance, the Securities Administrator shall provide to the
      Securityholders such information or reports as are required by the Code.

     

    Neither
      the Indenture Trustee nor the Securities Administrator shall be required to
      expend or risk its own funds or otherwise incur financial or other liability
      in
      the performance of any of its duties hereunder, or in the exercise of any of
      its
      rights or powers, if there is reasonable ground for believing that the repayment
      of such funds or indemnity satisfactory to it against such risk or liability
      is
      not assured to it, and none of the provisions contained in this Agreement shall
      in any event require the Indenture Trustee or the Securities Administrator
      to
      perform, or be responsible for the manner of performance of, any of the
      obligations of the Master Servicer under this Agreement, except during such
      time, if any, as the Indenture Trustee shall be the successor to, and be vested
      with the rights, duties, powers and privileges of, the Master Servicer in
      accordance with the terms of this Agreement.

     

    
      
         

      

      
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    SECTION
      8.02. Certain
      Matters Affecting the Indenture Trustee and the Securities
      Administrator.

     

    Except
      as
      otherwise provided in Section 8.01 hereof:

     

    (i) the
      Indenture Trustee and the Securities Administrator may request and conclusively
      rely upon, and shall be fully protected in acting or refraining from acting
      upon, any resolution, Officers’ Certificate, certificate of auditors or any
      other certificate, statement, instrument, opinion, report, notice, request,
      consent, order, appraisal, bond or other paper or document reasonably believed
      by it to be genuine and to have been signed or presented by the proper party
      or
      parties, and the manner of obtaining consents and of evidencing the
      authorization of the execution thereof by Securityholders shall be subject
      to
      such reasonable regulations as the Indenture Trustee and the Securities
      Administrator may prescribe;

     

    (ii) the
      Indenture Trustee and the Securities Administrator may consult with counsel
      and
      any advice of its counsel or 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 advice or
      Opinion of Counsel;

     

    (iii) neither
      the Indenture Trustee nor the Securities Administrator shall be under any
      obligation to exercise any of the rights or powers vested in it by this
      Agreement, or to institute, conduct or defend any litigation hereunder or in
      relation hereto, at the request, order or direction of any of the
      Securityholders, pursuant to the provisions of this Agreement, unless such
      Securityholders shall have offered to the Indenture Trustee or the Securities
      Administrator, respectively, reasonable security or indemnity satisfactory
      to it
      against the costs, expenses and liabilities which may be incurred therein or
      thereby; the right of the Indenture Trustee or the Securities Administrator
      to
      perform any discretionary act enumerated in this Agreement shall not be
      construed as a duty, and the Indenture Trustee shall not be answerable for
      other
      than its negligence or willful misconduct in the performance of any such
      act;

     

    (iv) neither
      the Indenture Trustee nor the Securities Administrator shall be personally
      liable for any action taken, suffered or omitted by it in good faith and
      believed by it to be authorized or within the discretion or rights or powers
      conferred upon it by this Agreement;

     

    (v) prior
      to
      the occurrence of an Event of Default and after the curing or waiver of all
      Events of Default which may have occurred, the Indenture Trustee shall not
      be
      bound to make any investigation into the facts or matters stated in any
      resolution, certificate, statement, instrument, opinion, report, notice,
      request, consent, order, approval, bond or other paper or documents, unless
      requested in writing to do so Holders of the Notes representing not less than
      25% of the Outstanding Balance of the Notes; provided,
      however,
      that if
      the payment within a reasonable time to the Indenture 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 Indenture Trustee, not reasonably
      assured to the Indenture Trustee by the security afforded to it by the terms
      of
      this Agreement, the Indenture Trustee may require reasonable indemnity against
      such cost, expense or liability as a condition to such proceeding. If the Master
      Servicer fails to reimburse the Indenture Trustee in respect of the reasonable
      expense of every such examination relating to the Master Servicer, the Indenture
      Trustee shall be reimbursed by the Trust Estate;

     

    
      
         

      

      
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    (vi) the
      Indenture Trustee shall not be accountable, shall have no liability and makes
      no
      representation as to any acts or omissions hereunder of the Owner Trustee,
      the
      Securities Administrator or the Master Servicer until such time as the Indenture
      Trustee may be required to act as the Master Servicer pursuant to Section 7.02
      hereof and thereupon only for the acts or omissions of the Indenture Trustee
      as
      a successor Master Servicer; and

     

    (vii) the
      Indenture Trustee and the Securities Administrator may execute any of the trusts
      or powers hereunder or perform any duties hereunder either directly or by or
      through agents, nominees, attorneys or a custodian, and shall not be responsible
      for any willful misconduct or negligence on the part of any agent, nominee,
      attorney or custodian appointed by the Indenture Trustee or the Securities
      Administrator in good faith.

     

    SECTION
      8.03. Indenture
      Trustee and the Securities Administrator Not Liable for Securities, Mortgage
      Loans or Additional Collateral.

     

    The
      recitals contained herein and in the Securities (other than the authentication
      of the Securities Administrator on the Securities) shall be taken as the
      statements of the Depositor or the Sellers, and the neither the Indenture
      Trustee nor the Securities Administrator assumes responsibility for the
      correctness of the same. Neither the Indenture Trustee nor the Securities
      Administrator makes representations or warranties as to the validity or
      sufficiency of this Agreement or of the Securities (other than the signature
      and
      authentication of the Securities Administrator on the Securities) or of any
      Mortgage Loan or related document or of MERS or the MERS System. The Indenture
      Trustee shall not be accountable for the use or application by the Master
      Servicer, or for the use or application of any funds paid to the Master Servicer
      in respect of related Mortgage Loans or deposited in or withdrawn from the
      Collection Account by the Master Servicer or the Securities Administrator.
      Neither the Indenture Trustee nor the Securities Administrator shall at any
      time
      have any responsibility or liability for or with respect to the legality,
      validity and enforceability of any Mortgage or any Mortgage Loan, or the
      perfection and priority of any Mortgage or the maintenance of any such
      perfection and priority, or for or with respect to the sufficiency of the Issuer
      or its ability to generate the payments to be paid to Securityholders under
      this
      Agreement, including, without limitation: the existence, condition and ownership
      of any Mortgaged Property; the existence and enforceability of any hazard
      insurance thereon (other than if the Indenture Trustee shall assume the duties
      of the Master Servicer pursuant to Section 7.02 hereof); the validity of the
      assignment of any Mortgage Loan to the Indenture Trustee or of any intervening
      assignment; the completeness of any Mortgage Loan; the performance or
      enforcement of any Mortgage Loan (other than if the Indenture Trustee shall
      assume the duties of the Master Servicer pursuant to Section 7.02 hereof);
      the
      compliance by the Depositor or the Sellers with any warranty or representation
      made under this Agreement or in any related document or the accuracy of any
      such
      warranty or representation prior to the Indenture Trustee’s receipt of notice or
      other discovery of any non-compliance therewith or any breach thereof; any
      investment of monies by or at the direction of the Master Servicer or in the
      case of the Indenture Trustee the Securities Administrator or any loss resulting
      therefrom, it being understood that the Indenture Trustee shall remain
      responsible for any Issuer property that it may hold in its individual capacity
      and the Securities Administrator shall remain responsible for any Issuer
      property that it may hold in its individual capacity; the acts or omissions
      of
      the Master Servicer (other than as to the Securities Administrator, if it is
      also the Master Servicer, and as to the Indenture Trustee, if the Indenture
      Trustee shall assume the duties of the Master Servicer pursuant to Section
      7.02
      hereof, and then only for the acts or omissions of the Indenture Trustee as
      the
      successor Master Servicer), or any acts or omissions of any Servicer or any
      Mortgagor; any action of the Master Servicer (other than as to the Securities
      Administrator, if it is also the Master Servicer, and as to the Indenture
      Trustee, if the Indenture Trustee shall assume the duties of the Master Servicer
      pursuant to Section 7.02 hereof), or in the case of the Indenture Trustee the
      Securities Administrator or any Servicer taken in the name of the Indenture
      Trustee; the failure of the Master Servicer or any Servicer to act or perform
      any duties required of it as agent or on behalf of the Indenture Trustee or
      the
      Issuer hereunder; or any action by the Indenture Trustee taken at the
      instruction of the Master Servicer (other than if the Indenture Trustee shall
      assume the duties of the Master Servicer pursuant to Section 7.02 hereof, and
      then only for the actions of the Indenture Trustee as the successor Master
      Servicer); provided,
      however,
      that
      the foregoing shall not relieve the Indenture Trustee of its obligation to
      perform its duties under this Agreement, including, without limitation, the
      Indenture Trustee’s duty to review the Mortgage Files, if so required pursuant
      to Section 2.01 of this Agreement.

     

    
      
         

      

      
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    SECTION
      8.04. Owner
      Trustee, Master Servicer and Securities Administrator May Own
      Notes.

     

    The
      Owner
      Trustee, the Master Servicer and the Securities Administrator in their
      respective individual capacities, or in any capacity other than as Owner
      Trustee, Master Servicer or Securities Administrator hereunder, may become
      the
      owner or pledgee of any Notes with the same rights they would have if they
      were
      not Owner Trustee, Master Servicer or Securities Administrator, as applicable,
      and may otherwise deal with the parties hereto.

     

    SECTION
      8.05. Indenture
      Trustee’s, Custodian’s, Owner Trustee’s and Securities Administrator’s Fees and
      Expenses.

     

    The
      Indenture Trustee shall be compensated by the Master Servicer for its services
      hereunder on behalf of the Issuer, including payment of the Indenture Trustee
      Fee. The Owner Trustee shall be compensated by the Master Servicer for its
      services hereunder, including payment o the Owner Trustee Fee. The Securities
      Administrator shall be compensated by the Master Servicer for its services
      hereunder from a portion of the Master Servicing Fee. The fees and expenses
      of
      the Custodian will be paid by the Initial Seller. In addition, the Indenture
      Trustee (as Indenture Trustee and in its individual corporate capacity), the
      Owner Trustee and the Securities Administrator will be entitled to recover
      from
      the Collection Account pursuant to Section 4.05(a) all reasonable out-of-pocket
      expenses, disbursements and advances and the expenses of the Indenture Trustee
      (including for such purpose, any fees and expenses relating to its capacity
      as
      Custodian hereunder to the extent not paid by the Initial Seller), the Owner
      Trustee, and the Securities Administrator, respectively, including without
      limitation, in connection with any Event of Default, any breach of this
      Agreement or any claim or legal action (including any pending or threatened
      claim or legal action) incurred or made by the Owner Trustee, the Indenture
      Trustee or the Securities Administrator, respectively, in the performance of
      its
      duties or the administration of the trusts hereunder or under the Yield
      Maintenance Agreements or the Auction Swap Agreement (including the reasonable
      compensation, expenses and disbursements of its counsel) except any such
      expense, disbursement or advance as may arise from its negligence (or in the
      case of the Owner Trustee, gross negligence) or intentional misconduct or which
      is specifically designated herein as the responsibility of the Depositor, the
      Sellers, the Master Servicer, the Securityholders, the Owner Trustee or the
      Issuer hereunder or thereunder. If funds in the Collection Account are
      insufficient therefor, the Indenture Trustee, the Owner Trustee, the Custodian
      and the Securities Administrator shall recover such expenses from future
      collections on the Mortgage Loans or as otherwise agreed by such parties and
      the
      Securityholders. Such compensation and reimbursement obligation shall not be
      limited by any provision of law in regard to the compensation of a trustee
      of an
      express trust.

     

    
      
         

      

      
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    SECTION
      8.06. Eligibility
      Requirements for Indenture Trustee and Securities
      Administrator.

     

    The
      eligibility requirements for the Indenture Trustee are set forth in Section
      6.11
      of the Indenture. The Securities Administrator hereunder shall at all times
      be
      an entity duly organized and validly existing under the laws of the United
      States of America or any state thereof, authorized under such laws to exercise
      corporate trust powers, having a combined capital and surplus of at least
      $50,000,000 and a minimum long-term debt rating in the third highest rating
      category by each Rating Agency and in each Rating Agency’s two highest
      short-term rating categories, and subject to supervision or examination by
      federal or state authority. If such entity 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 entity shall be deemed to be its
      combined capital and surplus as set forth in its most recent report of condition
      so published. In case at any time the Securities Administrator shall cease
      to be
      eligible in accordance with the provisions of this Section 8.06, the Securities
      Administrator shall resign immediately in the manner and with the effect
      specified in Section 8.07 hereof.

     

    
      
         

      

      
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    SECTION
      8.07. Resignation
      or Removal of the Indenture Trustee or the Securities
      Administrator.

     

    The
      circumstances causing resignation and removal of the Indenture Trustee are
      set
      forth in Sections 6.08 and 6.09 of the Indenture. The Securities Administrator
      may at any time resign and be discharged from the trusts hereby created by
      giving written notice thereof to the Depositor, the Sellers, the Master Servicer
      and each Rating Agency. Upon receiving such notice of resignation of the
      Securities Administrator, the Indenture Trustee shall promptly appoint a
      successor Securities Administrator that meets the requirements in Section 8.06
      by written instrument, in duplicate, one copy of which instrument shall be
      delivered to each of the resigning Securities Administrator and one copy to
      the
      successor Securities Administrator. If no successor Securities Administrator
      shall have been so appointed and having accepted appointment within 30 days
      after the giving of such notice of resignation, the resigning Securities
      Administrator may petition any court of competent jurisdiction for the
      appointment of a successor Securities Administrator.

     

    If
      at any
      time the Securities Administrator shall cease to be eligible in accordance
      with
      the provisions of Section 8.06 hereof or if at any time the Securities
      Administrator shall be legally unable to act, or shall be adjudged a bankrupt
      or
      insolvent, or a receiver of the Securities Administrator or of its property
      shall be appointed, or any public officer shall take charge or control of the
      Securities Administrator or of its property or affairs for the purpose of
      rehabilitation, conservation or liquidation, or if the Securities Administrator
      fails to provide an assessment of compliance or an attestation report required
      under Section 3.16 within 15 calendar days of March 1 of each calendar year
      in
      which Exchange Act reports are required then the Indenture Trustee may remove
      the Securities Administrator. If the Indenture Trustee removes the Securities
      Administrator, under the authority of the immediately preceding sentence, the
      Initial Seller or the Indenture Trustee shall promptly appoint a successor
      Securities Administrator that meets the requirements of Section 8.06 by written
      instrument, in triplicate, one copy of which instrument shall be delivered
      to
      the Securities Administrator so removed, one copy to the successor Securities
      Administrator and one copy to the Master Servicer.

     

    The
      Majority Securityholders may at any time remove the Securities Administrator
      by
      written instrument or instruments delivered to the Indenture Trustee; the
      Initial Seller shall thereupon use its best efforts to appoint a successor
      Securities Administrator in accordance with this Section. 

     

    Any
      resignation or removal of the Securities Administrator and appointment of a
      successor Securities Administrator, pursuant to any of the provisions of this
      Section 8.07 shall not become effective until acceptance of appointment by
      the
      successor Securities Administrator as provided in Section 8.08 hereof. If the
      Securities Administrator is removed pursuant to this Section 8.07, it shall
      be
      reimbursed any outstanding and unpaid fees and expenses, and if removed under
      the authority of the immediately preceding paragraph, the Securities
      Administrator shall also be reimbursed any outstanding and unpaid costs and
      expenses.

     

    Notwithstanding
      anything to the contrary contained herein, in the event that the Master Servicer
      resigns or is removed as Master Servicer hereunder, the Securities Administrator
      shall have the right to resign immediately as Securities Administrator by giving
      written notice to the Sellers and the Indenture Trustee, with a copy to each
      Rating Agency; provided that such resignation shall not become effective until
      acceptance of appointment by a successor Securities Administrator.
      Notwithstanding anything to the contrary herein, in the event that the
      Securities Administrator resigns or is removed as Securities Administrator
      hereunder, the Master Servicer shall have the right to resign immediately as
      Master Servicer by giving written notice to the Sellers and the Indenture
      Trustee, with a copy to each Rating Agency; provided that such resignation
      shall
      not become effective until acceptance of appointment by a successor Master
      Servicer.

     

    
      
         

      

      
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    SECTION
      8.08. Successor
      Securities Administrator.

     

    Any
      successor Securities Administrator appointed as provided in Section 8.07 hereof
      shall execute, acknowledge and deliver to the Depositor, the Sellers and the
      Master Servicer and to its predecessor Securities Administrator an instrument
      accepting such appointment hereunder, and thereupon the resignation or removal
      of the Securities Administrator shall become effective, and such successor
      Securities Administrator, without any further act, deed or conveyance, shall
      become fully vested with all the rights, powers, duties and obligations of
      its
      predecessor hereunder (including, without limitation, its rights, powers, duties
      and obligations as Auction Administrator under the Auction Administration
      Agreement), with like effect as if originally named Securities Administrator.
      The Depositor, the Sellers, the Master Servicer and the predecessor Securities
      Administrator shall execute and deliver such instruments and do such other
      things as may reasonably be required for fully and certainly vesting and
      confirming in the successor Securities Administrator, as applicable, all such
      rights, powers, duties and obligations.

     

    No
      successor Securities Administrator shall accept appointment as provided in
      this
      Section 8.08 unless at the time of such acceptance such successor Securities
      Administrator shall be eligible under the provisions of Section 8.06 hereof
      and
      the appointment of such successor Securities Administrator shall not result
      in a
      downgrading of the Offered Notes by either Rating Agency, as evidenced by a
      letter from each Rating Agency.

     

    Upon
      acceptance of appointment by a successor Securities Administrator as provided
      in
      this Section 8.08, the successor Securities Administrator shall mail notice
      of
      the appointment of a successor Securities Administrator hereunder to all
      Securityholders at their addresses as shown in the Certificate Register or
      the
      Note Register, as applicable, and to each Rating Agency.

     

    SECTION
      8.09. Merger
      or Consolidation of Indenture Trustee or Securities
      Administrator.

     

    The
      consequences of merger or consolidation of the Indenture Trustee are set forth
      in Section 6.09 of the Indenture. Any entity into which the Securities
      Administrator may be merged or converted or with which it may be consolidated,
      or any entity resulting from any merger, conversion or consolidation to which
      the Securities Administrator shall be a party, or any entity succeeding to
      the
      corporate trust business of the Securities Administrator, shall be the successor
      of the Securities Administrator, as applicable, hereunder, provided such entity
      shall be eligible under the provisions of Section 8.06 and 8.08 hereof, 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.

     

    
      
         

      

      
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    SECTION
      8.10. [Reserved].

     

    SECTION
      8.11. [Reserved].

     

    SECTION
      8.12. Trustee
      May Enforce Claims Without Possession of Notes.

     

    (a) All
      rights of action and claims under this Agreement or the Notes may be prosecuted
      and enforced by the Indenture Trustee without the possession of any of the
      Notes
      or the production thereof in any proceeding relating thereto, and such
      proceeding instituted by the Indenture Trustee shall be brought in its own
      name
      or in its capacity as Indenture Trustee for the benefit of all Holders of such
      Notes, subject to the provisions of this Agreement and the Indenture. Any
      recovery of judgment shall, after provision for the payment of the reasonable
      compensation, expenses, disbursement and advances of the Indenture Trustee
      (for
      the avoidance of doubt, in its individual capacity and as Indenture Trustee
      on
      behalf of the Issuer), its agents and counsel, be for the ratable benefit or
      the
      Noteholders in respect of which such judgment has been recovered.

     

    (b) The
      Indenture Trustee shall afford the Sellers, the Depositor and each
      Securityholder upon reasonable notice during normal business hours at its
      Corporate Trust Office or other office designated by the Indenture Trustee,
      access to all records maintained by the Indenture Trustee in respect of its
      duties hereunder and access to officers of the Indenture Trustee responsible
      for
      performing such duties. The Indenture Trustee shall cooperate fully with the
      Sellers, the Depositor and such Securityholder and shall, subject to the first
      sentence of this Section 8.12(b), make available to the Sellers, the Depositor
      and such Securityholder for review and copying such books, documents or records
      as may be requested with respect to the Indenture Trustee’s duties hereunder.
      The Sellers, the Depositor and the Securityholders shall not have any
      responsibility or liability for any action or failure to act by the Indenture
      Trustee and are not obligated to supervise the performance of the Indenture
      Trustee under this Agreement or otherwise.

     

    (c) The
      Securities Administrator shall afford the Sellers, the Depositor, the Indenture
      Trustee and each Securityholder upon reasonable notice during normal business
      hours at its offices at 9062 Old Annapolis Road, Columbia, Maryland 21045 or
      other office designated by the Securities Administrator, access to all records
      maintained by the Securities Administrator in respect of its duties hereunder
      and access to officers of the Securities Administrator responsible for
      performing such duties. Upon request, the Securities Administrator shall furnish
      the Depositor and any requesting Securityholder with its most recent audited
      financial statements. The Securities Administrator shall cooperate fully with
      the Sellers, the Depositor, the Indenture Trustee and such Securityholder and
      shall, subject to the first sentence of this Section 8.12(c), make available
      to
      the Sellers, the Depositor and such Securityholder for review and copying such
      books, documents or records as may be requested with respect to the Securities
      Administrator’s duties hereunder. The Sellers, the Depositor, the Indenture
      Trustee and the Securityholders shall not have any responsibility or liability
      for any action or failure to act by the Securities Administrator and are not
      obligated to supervise the performance of the Securities Administrator under
      this Agreement or otherwise.

     

    
      
         

      

      
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    SECTION
      8.13. Suits
      for Enforcement.

     

    In
      case
      an Event of Default or a default by the Depositor hereunder shall occur and
      be
      continuing, the Indenture Trustee may proceed to protect and enforce its rights
      and the rights of the Securityholders under this Agreement, as the case may
      be,
      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
      Indenture Trustee, being advised by counsel, and subject to the foregoing,
      shall
      deem most effectual to protect and enforce any of the rights of the Indenture
      Trustee and the Securityholders.

     

    SECTION
      8.14. Waiver
      of Bond Requirements.

     

    The
      Indenture Trustee shall be relieved of, and each Securityholder hereby waives,
      any requirement of any jurisdiction in which the Trust Estate, or any part
      thereof, may be located that the Indenture Trustee post a bond or other surety
      with any court, agency or body whatsoever.

     

    SECTION
      8.15. Waiver
      of Inventory, Accounting and Appraisal Requirement.

     

    The
      Owner
      Trustee shall be relieved of, and each Securityholder hereby waives, any
      requirement of any jurisdiction in which the Issuer, or any part thereof, may
      be
      located that the Owner Trustee file any inventory, accounting or appraisal
      of
      the Issuer with any court, agency or body at any time or in any manner
      whatsoever.

     

    SECTION
      8.16. Appointment
      of Custodian.

     

    LaSalle
      Bank is hereby appointed Custodian of the Mortgage Files. The Indenture Trustee
      shall have the right upon prior written notice to the Issuer and the Master
      Servicer, to appoint one or more sub-custodians to hold all or a portion of
      the
      related Mortgage Files as agent for the Indenture Trustee, by entering into
      a
      custodial agreement. If the Indenture Trustee is removed or becomes ineligible
      to serve as Indenture Trustee pursuant to the provisions of the Indenture,
      it
      shall also resign its appointment as Custodian. Any sub-custodian may at any
      time be terminated and a substitute sub-custodian appointed therefor by the
      Indenture Trustee. The Indenture Trustee agrees to enforce the terms and
      provisions of any custodial agreement against the sub-custodian for the benefit
      of the Noteholders having an interest in any Mortgage File held by such
      sub-custodian. Each Custodian or sub-custodian shall be a depository institution
      or trust company subject to supervision by federal or state authority, shall
      have combined capital and surplus of at least $15,000,000 and shall be qualified
      to do business in the jurisdiction in which it holds any Mortgage File. The
      Initial Seller shall pay from its own funds, without any right to reimbursement,
      the fees, costs and expenses of each custodian (including the costs of
      Custodian’s counsel). The Custodian shall have the same rights, protections and
      immunities which are afforded to the Indenture Trustee under Article VI of
      the
      Indenture.

     

    
      
         

      

      
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    SECTION
      8.17. Auction
      Administration Agreement; Auction Swap Agreement.

     

    (a) Concurrently
      with the execution and delivery hereof, at the direction of the Depositor,
      the
      Securities Administrator, acting solely as an agent (the “Auction
      Administrator”)
      for
      the Holders of the Auction Notes and not on behalf of the Issuer, shall execute
      and deliver the Auction Administration Agreement and the Auction Swap Agreement
      in the forms presented by the Auction Swap Counterparty. The Securities
      Administrator shall have no duty to review or otherwise determine the adequacy
      of the Auction Administration Agreement or the Auction Swap
      Agreement.

     

    (b) Each
      Holder of an Auction Note is deemed, by acceptance of such Note, (i) to
      authorize the Securities Administrator to execute and deliver the Auction
      Administration Agreement and the Auction Swap Agreement as their agent and
      (ii)
      to acknowledge and accept and agree to be bound by the provisions of the Auction
      Administration Agreement and the Auction Swap Agreement. The Securities
      Administrator, as Auction Administrator, agrees not to consent to any amendments
      to the Auction Administration Agreement or Auction Swap Agreement without the
      consent of 100% of the Auction Notes, except in the case where such amendment
      is
      to cure any ambiguity in either agreement, to correct or supplement any
      provision therein which may be inconsistent with other provisions in such
      agreements or the other Operative Agreements, or to cause the provisions in
      such
      agreements to conform or be consistent with the statements made with respect
      to
      such agreements in the Offering Documents. 

     

    SECTION
      8.18. Yield
      Maintenance Counterparty Tax Form.

     

    The
      Depositor hereby directs the Security Administrator to enter into the Yield
      Maintenance Agreements. The Securities Administrator agrees that so long as
      the
      Yield Maintenance Agreement remains in effect, it shall request that the Yield
      Maintenance Counterparty provide to it an Internal Revenue Service Form W-8ECI
      (or any successor form) at the end of each three year period following the
      Closing Date as provided for in the Yield Maintenance Agreements.

     

    
      
         

      

      
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    ARTICLE
      IX

     

    [Reserved]

     

    ARTICLE
      X

     

    TERMINATION

     

    SECTION
      10.01. Termination;
      Clean-Up Call.

     

    (a) The
      respective obligations and responsibilities of the Seller, the Depositor, the
      Master Servicer, the Securities Administrator, the Owner Trustee and the
      Indenture Trustee created hereby (other than the obligation of the Securities
      Administrator to make certain payments to Noteholders after the final Payment
      Date and the obligation of the Master Servicer to send certain notices as
      hereinafter set forth) shall terminate upon notice to the Indenture Trustee
      and
      the Securities Administrator upon the earliest of (i) the Payment Date on
      which the Class Principal Amount (or Class Notional Amount in the case of the
      Class A-X Notes) of each Class of Notes has been reduced to zero, (ii) the
      final payment or other liquidation of the last Mortgage Loan, (iii) the
      optional purchase of the Mortgage Loans as described in the following paragraphs
      and (iv) the Stated Maturity Date.

     

    Thornburg
      (solely in its capacity as a Servicer of the Mortgage Loans) may, at its option
      (which option is assignable), terminate this Agreement on any Payment Date
      on
      which the aggregate amount of the Scheduled Principal Balances of the Mortgage
      Loans as of the end of the immediately preceding Due Period is equal to or
      less
      than 10% of the Cut-Off Date Aggregate Principal Balance (such Payment Date,
      the
“10%
      Clean-Up Call Date”),
      by
      purchasing, on such Payment Date, all of the outstanding Mortgage Loans and
      REO
      Properties at a price equal to the sum of (i) the outstanding Scheduled
      Principal Balances of the Mortgage Loans (other than in respect of REO
      Properties), (ii) the lesser of (x) the appraised value of any REO Property
      as
      determined by the higher of two appraisals completed by two independent
      appraisers approved by the Depositor and at the expense of the Person exercising
      the Clean-Up Call Option less the good faith estimate of the Master Servicer
      or
      the related Servicer, as applicable, of Liquidation Expenses to be incurred
      in
      connection with its disposal and (y) the Principal Balance of each Mortgage
      Loan
      related to any REO Property and (iii) in all cases, accrued and unpaid interest
      thereon at the applicable Loan Rate through the end of the Due Period preceding
      the final Payment Date, plus unreimbursed Servicing Advances and Advances and
      any unpaid Master Servicing Fees and Servicing Fees allocable to such Mortgage
      Loans and REO Properties, plus all amounts, if any, then due and owing to the
      Indenture Trustee, the Master Servicer and the Securities Administrator (the
      “Clean-Up
      Call Purchase Price”).

     

    In
      addition, Wells Fargo Bank, N.A. (solely in its capacity as the Master Servicer)
      may, at its option, terminate this Agreement on any Payment Date on which the
      aggregate amount of the Scheduled Principal Balances of the Mortgage Loans
      as of
      the end of the immediately preceding Due Period is equal to or less than 5%
      of
      the Cut-Off Date Aggregate Principal Balance (such Payment Date, the
“Master Servicer
      Clean-Up Call Date”;
      and
      each of the Master Servicer Clean-Up Call Date and the 10% Clean-Up Call Date
      individually, a “Clean-Up
      Call Date”),
      by
      purchasing, on such Master Servicer Clean-Up Call Date, all of the outstanding
      Mortgage Loans and REO Properties at a price equal to the Clean-Up Call Purchase
      Price; provided,
      that
      the Master Servicer Clean-Up Call Right shall be exercisable only if the 10%
      Clean-Up Call Right is not exercised on or before such date.

     

    
      
         

      

      
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    (b) Notice
      of
      any termination pursuant to the second or third paragraphs of
      Section 10.01(a), specifying the Clean-Up Call Date (which shall be a date
      that would otherwise be a Payment Date) upon which the Noteholders may surrender
      their Notes to the Securities Administrator for payment of the final
      distribution and cancellation, shall be given by the Securities Administrator
      to
      the Noteholders pursuant to Section 10.02 of the Indenture and to the Owner
      Trustee promptly upon the Securities Administrator receiving notice of such
      Clean-Up Call Date from Thornburg or Wells Fargo Bank, N.A., as
      applicable.

     

    (c) Upon
      presentation and surrender of the Notes, the Securities Administrator shall
      cause to be distributed to the Holders of the Notes on the Payment Date for
      such
      final distribution, in proportion to the Percentage Interests of their
      respective Class and to the extent that funds are available for such purpose,
      an
      amount equal to the amount required to be distributed to such Holders in
      accordance with the provisions of Section 5.01 hereof for such Payment
      Date.

     

    (d) In
      the
      event that all Noteholders shall not surrender their Notes for final payment
      and
      cancellation on or before such final Payment Date, the Securities Administrator
      shall promptly following such date cause all funds in the Collection Account
      to
      which Noteholders are entitled and not distributed in final distribution to
      Noteholders to be withdrawn therefrom and credited to the remaining Noteholders
      by depositing such funds in a separate account for the benefit of such
      Noteholders, and the Securities Administrator shall give a second written notice
      to the remaining Noteholders to surrender their Notes for cancellation and
      receive the final distribution with respect thereto. If within nine months
      after
      the second notice all the Notes shall not have been surrendered for
      cancellation, the Certificateholders shall be entitled to all unclaimed funds
      and other assets which remain subject hereto, and the Securities Administrator
      upon transfer of such funds to the Certificate Distribution Account for payment
      to the Certificateholders in accordance with the provisions of the Trust
      Agreement shall be discharged of any responsibility for such funds.

     

    SECTION
      10.02. [Reserved].

     

    SECTION
      10.03. Optional
      Purchase of Notes.

     

    (a) All
      but
      not less than all of the Notes are subject to purchase by TMI, at its option,
      on
      any Payment Date on or after the Optional Notes Purchase Date from the then
      Holders thereof. The purchase price for each Note (other than the Class A-X
      Notes) shall be equal to the sum of (i) the Note Principal Amount of such
      Note and (ii) any accrued but unpaid interest thereon at the applicable
      Note Interest Rate with respect thereto for such Payment Date. The purchase
      price for the Class A-X Notes shall be an amount equal to the sum of (x) any
      Current Interest due (after taking into account payments made on such date
      from
      Current Interest) on the Class A-X Notes, and (y) the present value, as of
      the
      date of such termination, of the remaining payments scheduled to be made on
      the
      Class A-X Notes (such present value to be based on a discount rate that will
      approximate the expected yield to maturity of the Class A-X Notes). In order
      to
      exercise the Optional Notes Purchase Right, TMI must, no later than the eighth
      Business Day prior to the applicable Payment Date, deliver to the Securities
      Administrator (with copies to the Rating Agencies and the Master Servicer)
      written notice, in the form of Exhibit O hereto, of its intent to purchase
      the
      Notes and of the Payment Date on which it intends to do so and the Securities
      Administrator will verify in writing to TMI the cash amount required of TMI
      to
      effect such purchase no later than the third Business Day prior to the Payment
      Date on which such purchase is scheduled to occur. The Securities Administrator
      shall furnish notice of the exercise of the Optional Notes Purchase Right to
      the
      applicable Noteholders in compliance with Section 10.02 of the Indenture.
      On the day prior to the Payment Date on which the Optional Notes Purchase Right
      will be exercised, TMI shall deposit the appropriate amount in cash with the
      Securities Administrator. Such amount shall be deposited by the Securities
      Administrator into the Note Payment Account. Such amounts shall be paid by
      the
      Securities Administrator to Holders of the applicable Notes as provided in
      Section 10.03(c).

     

    
      
         

      

      
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    (b) In
      the
      case of an exercise of the Optional Notes Purchase Right, TMI shall be solely
      responsible for the costs and expenses of the Indenture Trustee, the Securities
      Administrator and the Master Servicer.

     

    (c) The
      Notes
      shall, following notice to Noteholders as required by Section 10.03(a), be
      purchased on the applicable Payment Date by TMI at the price specified in
      Section 10.03(a), and (unless TMI shall default in the payment of such amount)
      no interest shall accrue on such amount for any period after the date to which
      accrued interest is calculated for purposes of calculating such
      amount.

     

    (d) Subsequent
      to the purchase of the Notes following exercise of the Optional Notes Purchase
      Right, TMI shall be the sole Holder of the Notes. TMI may subsequently transfer
      some or all of the Notes acquired by it in accordance with the provisions of
      the
      Indenture. All Notes issued to the Noteholders prior to exercise of the Optional
      Securities Purchase Right shall be deemed cancelled (other than those Notes
      held
      by TMI).

     

     

    ARTICLE
      XI

     

    [Reserved]

     

    
      
         

      

      
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    ARTICLE
      XII

     

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      12.01. Amendment.

     

    This
      Agreement may be amended from time to time by the Initial Seller, the Seller,
      the Depositor, the Master Servicer, the Securities Administrator, the Owner
      Trustee and the Indenture Trustee, and without the consent of any of the
      Securityholders, (i) to cure any ambiguity, (ii) to correct or
      supplement any provisions herein which may be defective or inconsistent with
      any
      other provisions herein, (iii) to make any other provisions with respect to
      matters or questions arising under this Agreement, which shall not be
      inconsistent with the provisions of this Agreement or (iv) to cause the
      provisions herein to conform to or be consistent with or in furtherance of
      the
      statements made with respect to the Securities, the Issuer or this Agreement
      in
      any Offering Document, or to correct or supplement any provision herein which
      may be inconsistent with any other provisions herein or in any other Operative
      Agreement; provided,
      however,
      that
      any such action shall not adversely affect in any material respect the interest
      of any Noteholder; provided,
      further, that
      any
      such action listed in clauses (i) through (iv) above shall be deemed
      not to adversely affect in any material respect the interests of any
      Securityholder, if evidenced by (i) written notice to the Indenture Trustee
      from each Rating Agency that such action will not result in the reduction or
      withdrawal of the rating of any outstanding Class of Notes with respect to
      which
      it is a Rating Agency or (ii) an Opinion of Counsel stating that such
      amendment shall not adversely affect in any material respect the interests
      of
      any Securityholder, is permitted by the Agreement and all the conditions
      precedent, if any have been complied with, delivered to the Master Servicer,
      the
      Securities Administrator and the Indenture Trustee.

     

    In
      addition, this Agreement may be amended from time to time by the Initial Seller,
      the Seller, the Depositor, the Master Servicer, the Securities Administrator,
      the Owner Trustee and the Indenture Trustee and with the consent of a majority
      in interest of the Certificateholders and a majority in interest of each Class
      of Notes affected by such amendment 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 Securities;
provided,
      however,
      that no
      such amendment or waiver shall (x) reduce in any manner the amount of, or
      delay the timing of, payments on the Notes or Ownership Certificates that are
      required to be made on any such Note or Ownership Certificate without the
      consent of the Holder of such Security, (y) adversely affect in any
      material respect the interests of the Holders of any Class of Notes or Ownership
      Certificates in a manner other than as described in clause (x) above, without
      the consent of the Holders of Notes of such Class or Ownership Certificates
      evidencing at least a 662⁄3% Percentage Interest in such Class of Notes or the
      Ownership Certificates, or (z) reduce the percentage of Voting Rights
      required by clause (y) above without the consent of the Holders of all
      Notes of such Class then outstanding. Upon approval of an amendment, a copy
      of
      such amendment shall be sent to each Rating Agency.

     

    
      
         

      

      
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    Notwithstanding
      any provision of this Agreement to the contrary, neither the Indenture Trustee
      nor the Securities Administrator shall consent to any amendment to this
      Agreement unless it shall have first received an Opinion of Counsel, delivered
      by and at the expense of the Person seeking such Amendment (unless such Person
      is the Indenture Trustee or the Securities Administrator, in which case the
      Indenture Trustee or the Securities Administrator shall be entitled to be
      reimbursed for such expenses by the Issuer pursuant to Section 8.05 hereof),
      to
      the effect that such amendment will not result in the imposition of federal
      income tax on the Issuer and that the amendment is being made in accordance
      with
      the terms hereof, such amendment is permitted by this Agreement and all
      conditions precedent, if any, have been complied with.

     

    Promptly
      after the execution of any such amendment the Securities Administrator shall
      furnish, at the expense of the Person that requested the amendment if such
      Person is the Initial Seller or the Seller (but in no event at the expense
      of
      the Indenture Trustee or the Securities Administrator), otherwise at the expense
      of the Issuer, a copy of such amendment and the Opinion of Counsel referred
      to
      in the immediately preceding paragraph to the Master Servicer and each Rating
      Agency.

     

    It
      shall
      not be necessary for the consent of Securityholders under this
      Section 12.01 to approve the particular form of any proposed amendment;
      instead 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 Securityholders shall be subject
      to
      such reasonable regulations as the Securities Administrator may
      prescribe.

     

    The
      Indenture Trustee and Securities Administrator may, but shall not be obligated
      to, enter into any amendment pursuant to this 12.01 Section that affects
      its rights, duties and immunities under this Agreement or
      otherwise.

     

    SECTION
      12.02. Recordation
      of Agreement; Counterparts.

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all the counties
      or
      other comparable jurisdictions in which any or all of the Mortgaged Properties
      are situated, and in any other appropriate public recording office or elsewhere,
      such recordation to be effected by the Indenture Trustee at the expense of
      the
      Issuer, but only upon direction of Noteholders accompanied by an Opinion of
      Counsel to the effect that such recordation materially and beneficially affects
      the interests of the Noteholders.

     

    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 together constitute but one and the same
      instrument.

     

    
      
         

      

      
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    SECTION
      12.03. [Reserved].

     

    SECTION
      12.04. Governing
      Law; Jurisdiction.

     

    THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER
      THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS
      AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
      SUCH LAWS.

     

    SECTION
      12.05. Notices.

     

    All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given if personally delivered at or mailed by first
      class mail, postage prepaid, or by express delivery service or delivered via
      telecopy, to (a) in the case of the Initial Seller, to Thornburg Mortgage
      Home Loans, Inc., 150 Washington Avenue, Suite 302, Santa Fe, New Mexico 87501,
      Attention: Deborah Burns (telecopy number (505) 954-5300), or such other
      address or telecopy number as may hereafter be furnished to the Seller, the
      Depositor, the Master Servicer, the Securities Administrator, the Indenture
      Trustee and the Owner Trustee in writing by the Initial Seller, (b) in the
      case
      of the Seller, Thornburg Mortgage Funding, Inc., 150 Washington Avenue, Suite
      302, Santa Fe, New Mexico 87501, Attention: Deborah Burns (telecopy number
      (505) 954-5300), or such other address or telecopy number as may hereafter
      be furnished to the Initial Seller, the Depositor, the Master Servicer, the
      Securities Administrator, the Indenture Trustee and the Owner Trustee in writing
      by the Seller, (c) in the case of the Indenture Trustee, to the Corporate Trust
      Office or such other address or telecopy number as may hereafter be furnished
      to
      the Initial Seller, the Seller, the Depositor, the Master Servicer, the
      Securities Administrator and the Owner Trustee in writing by the Indenture
      Trustee, (d) in the case of the Depositor, to Structured Asset Securities
      Corporation, 745 Seventh Avenue, Seventh Floor, New York, New York 10019,
      Attention: Mortgage Backed Finance, or such other address or telecopy number
      as
      may be furnished to the Initial Seller, the Seller, the Master Servicer, the
      Owner Trustee and the Indenture Trustee in writing by the Depositor, (e) in
      the
      case of the Owner Trustee, Wilmington Trust Company, Rodney Square North, 1100
      North Market Street, Wilmington, Delaware 19890, Attention: Thornburg 2007-2
      or
      such other address or telecopy number as may hereinafter be furnished to the
      Initial Seller, the Seller, the Depositor, the Master Servicer, the Securities
      Administrator, and the Indenture Trustee in writing by the Owner Trustee; and
      (f) in the case of the Master Servicer or Securities Administrator, for
      certificate transfer purposes, at its Corporate Trust Office and for all other
      purposes at P.O. Box 98, Columbia, Maryland 21046, or for overnight delivery,
      at
      9062 Old Annapolis Road, Columbia, Maryland 21045 (Attention: Thornburg 2007-2),
      Facsimile no: (410) 715-2380, or such other address or telecopy number as may
      be
      furnished to the Depositor, the Seller, the Initial Seller, the Owner Trustee
      and the Indenture Trustee in writing by the Master Servicer or the Securities
      Administrator. Any notice required or permitted to be mailed to a Securityholder
      shall be given by first class mail, postage prepaid, at the address of such
      Holder as shown in the Note Register or Certificate Register, as applicable.
      Notice of any Event of Default shall be given by telecopy and by certified
      mail.
      Any notice so mailed within the time prescribed in this Agreement shall be
      conclusively presumed to have duly been given when mailed, whether or not the
      Securityholder receives such notice. A copy of any notice required to be
      telecopied hereunder shall also be mailed to the appropriate party in the manner
      set forth above.

     

    
      
         

      

      
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    SECTION
      12.06. Severability
      of Provisions.

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall for any reason whatsoever be 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 Notes or the Ownership Certificate or the rights of the Noteholders
      or
      the Certificateholders.

     

    SECTION
      12.07. Article
      and Section References.

     

    All
      article and section references used in this Agreement, unless otherwise
      provided, are to articles and sections in this Agreement.

     

    SECTION
      12.08. Notice
      to the Rating Agencies.

     

    (a) The
      Securities Administrator shall be obligated to use its best reasonable efforts
      promptly to provide notice to the Rating Agencies with respect to each of the
      following of which a Responsible Officer of the Securities Administrator has
      actual knowledge:

     

    (i) any
      material change or amendment to this Agreement;

     

    (ii) the
      occurrence of any Event of Default that has not been cured or
      waived;

     

    (iii) the
      resignation or termination of the Master Servicer, the Securities Administrator
      or the Indenture Trustee;

     

    (iv) the
      final
      payment to Holders of the Notes of any Class; and

     

    (v) any
      change in the location of any Account.

     

    (b) In
      addition, the Securities Administrator shall promptly furnish to the Rating
      Agencies copies of each Statement to Securityholders described in Section 5.04
      hereof; if the Indenture Trustee is acting as a successor Master Servicer
      pursuant to Section 7.02 hereof, the Indenture Trustee shall notify the Rating
      Agencies of any event that would result in the inability of the Indenture
      Trustee to make Advances and the Master Servicer shall promptly furnish to
      each
      Rating Agency copies of the following:

     

    (i) each
      annual statement as to compliance described in Section 3.17 hereof;

     

    
      
         

      

      
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    (ii) each
      annual assessment of compliance and attestation report described in Section
      3.16
      hereof; and

     

    (iii) each
      notice delivered pursuant to Section 5.05(b) hereof which relates to the fact
      that the Master Servicer has not made an Advance.

     

    (c) All
      notices to the Rating Agencies provided for in this Agreement shall be in
      writing and sent by first class mail, telecopy or overnight courier, as
      follows:

     

    If
      to
      Moody’s, to:

    

    Moody’s
      Investors Service, Inc.

    99
      Church
      Street 

    New
      York,
      New York 10007

    Attention:
      Residential Mortgages

    

    If
      to
      S&P, to:

    

    55
      Water
      Street

    New
      York,
      New York 10041

    Attention:
      Residential Mortgages 

     

    SECTION
      12.09. Further
      Assurances.

     

    Notwithstanding
      any other provision of this Agreement, neither the Securityholders nor the
      Indenture Trustee shall have any obligation to consent to any amendment or
      modification of this Agreement unless they have been provided reasonable
      security or indemnity against their out-of-pocket expenses (including reasonable
      attorneys’ fees) to be incurred in connection therewith.

     

    SECTION
      12.10. Benefits
      of Agreement.

     

    Nothing
      in this Agreement or in the Securities, expressed or implied, shall give to
      any
      Person, other than the Securityholders and the parties hereto and their
      successors hereunder, any benefit or any legal or equitable right, remedy or
      claim under this Agreement.

     

    SECTION
      12.11. [Reserved].

     

    SECTION
      12.12. Successors
      and Assigns.

     

    The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the respective successors and assigns of the parties hereto.

     

    
      
         

      

      
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    SECTION
      12.13. [Reserved].

     

    SECTION
      12.14. Execution
      by the Issuer.

     

    It
      is
      expressly understood and agreed by the parties hereto that (a) this Agreement
      is
      executed and delivered by Wilmington Trust Company, not individually or
      personally but solely as Owner Trustee of the Issuer, in the exercise of the
      powers and authority conferred and vested in it as trustee, (b) each of the
      representations, undertakings and agreements herein made on the part of the
      Issuer is made and intended not as personal representations, undertakings and
      agreements by Wilmington Trust Company but is made and intended for the purpose
      of binding only the Issuer, (c) nothing herein contained shall be construed
      as
      creating any liability on Wilmington Trust Company, individually or personally,
      to perform any covenant either expressed or implied contained herein, all such
      liability, if any, being expressly waived by the parties hereto and by any
      person claiming by, through or under the parties hereto and (d) under no
      circumstances shall Wilmington Trust Company be personally liable for the
      payment of any indebtedness or expenses of the Issuer or be liable for the
      breach or failure of any obligation, representation, warranty or covenant made
      or undertaken by the Issuer under this Agreement or any other
      document.

     

    
      
         

      

      
        135

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto
      by their respective officers thereunto duly authorized, all as of the day and
      year first above written.

     

    THORNBURG
      MORTGAGE SECURITIES TRUST 2007-2

     

     

    By:
      WILMINGTON TRUST COMPANY, not in its individual capacity but solely as
Owner
      Trustee

     

     

    By: 
      /s/ Patricia A.
      Evans                

          
      Name: Patricia A. Evans 

          
      Title: Vice President 

     

     

    STRUCTURED
      ASSET SECURITIES 

    CORPORATION,
      as
      Depositor

     

     

    By: /s/
      Mary C.
      Stone                      

          
      Name: Mary C. Stone

          
      Title: Vice President 

     

     

    LASALLE
      BANK NATIONAL ASSOCIATION, 

    as
      Indenture Trustee and Custodian

     

    By: 
      /s/ Rita
      Lopez                          
 

          
      Name: Rita Lopez

          
      Title: Vice President 

     

     

    WELLS
      FARGO BANK, N.A., 

    as
      Master Servicer

     

     

    By: /s/
      Carla S.
      Walker                     

          
      Name: Carla S. Walker 

          
      Title: Vice President 

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    WELLS
      FARGO BANK, N.A., 

    as
      Securities Administrator

     

     

    By: /s/
      Carla S.
      Walker                     

          
      Name: Carla S. Walker

          
      Title: Vice President 

     

     

    THORNBURG
      MORTGAGE HOME LOANS, 

    INC.,
      as
      Initial Seller

     

     

    By: /s/
      Deborah J.
      Burns                 

          
      Name: Deborah J. Burns

          
      Title: Senior Vice President

     

     

    THORNBURG
      MORTGAGE FUNDING, 

    INC.,
      as
      Seller

     

     

    By: /s/
      Nathan
      Fellers                      

          
      Name: Nathan Fellers

          
      Title: Senior Vice President

     

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Solely
      for the purposes of Section 3.25,

    accepted
      and agreed to by:

    

    

    THORNBURG
      MORTGAGE, INC.

    

    

    By:/s/
      Deborah J.
      Burns                            

         
      Name: Deborah J. Burns

          Title:
      Senior Vice President

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              STATE
                OF NEW
                YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            

    

     

     

    On
      the
      ___ day of April 2007, before me, a notary public in and for said State,
      personally appeared Mary A. Stone, known to me to be a Vice President of
      Structured Asset Securities Corporation, a Delaware corporation, that executed
      the within instrument, and also known to me to be the person who executed it
      on
      behalf of said corporation, and acknowledged to me that such corporation
      executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      ___________________________________

    

    Notary
      Public

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              STATE
                OF NEW MEXICO

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF SANTA FE

            	
              )

            

    

     

     

    On
      the
      ___ day of April 2007, before me, a notary public in and for said State,
      personally appeared Deborah J. Burns known to me to be a Senior Vice President
      of Thornburg Mortgage Home Loans, Inc., a Delaware corporation, that executed
      the within instrument, and also known to me to be the person who executed it
      on
      behalf of said corporation, and acknowledged to me that such corporation
      executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

    
       

      
        ___________________________________

      

      Notary
        Public

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              STATE
                OF NEW MEXICO

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF SANTA FE

            	
              )

            

    

     

     

    On
      the
      ___ day of April 2007, before me, a notary public in and for said State,
      personally appeared Nathan Fellers_____________ known to me to be a
      ______________ of Thornburg Mortgage Funding, Inc., a Delaware corporation,
      that
      executed the within instrument, and also known to me to be the person who
      executed it on behalf of said corporation, and acknowledged to me that such
      corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

    
       

      
        ___________________________________

      

      Notary
        Public

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              STATE
                OF ILLINOIS

            	
              )

            	 
	 	
              )
                ss.:

            	 
	
              COUNTY
                OF COOK

            	
              )

            	 

    

     

     

    On
      the
      ___ day of April 2007, before me, a notary public in and for said State,
      personally appeared Rita Lopez____________ known to me to be ______________
      of
      LaSalle Bank National Association that executed the within instrument, and
      also
      known to me to be the person who executed it on behalf of said corporation,
      and
      acknowledged to me that such corporation executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

    
       

      
        ___________________________________

      

      Notary
        Public

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	
              STATE
                OF DELAWARE

            	
              )

            	 
	 	
              )
                ss.:

            	 
	
              COUNTY
                OF WILMINGTON

            	
              )

            	 

    

     

     

    On
      the
      ___ day of April 2007, before me, a notary public in and for said State,
      personally appeared Patricia A. Evans__________, known to me to be ___________
      of Wilmington Trust Company, a national banking association that executed the
      within instrument, and also known to me to be the person who executed it on
      behalf of said corporation, and acknowledged to me that such corporation
      executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      ___________________________________

    

    Notary
      Public

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	
              STATE
                OF MARYLAND

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF HOWARD

            	
              )

            

    

     

     

    On
      the
      ___ day of April 2007, before me, a notary public in and for said State,
      personally appeared Carla S. Walker_______________, known to me to be a
      _________ of Wells Fargo Bank, N.A., and also known to me to be the person
      who
      executed it on behalf of said corporation, and acknowledged to me that such
      corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

    
       

      
        ___________________________________

      

      Notary
        Public

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
      I

    

    MORTGAGE
      LOAN SCHEDULE

    

    To
      be
      retained in a separate closing binder entitled “Thornburg 2007-2 Mortgage Loan

    Schedule”
      at the New York, New York offices of McKee Nelson LLP

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