Structured Asset Mortgage Investments II Inc., HomeBanc Mortgage Trust 2004-2 – ‘8-K/A’ for 12/9/04 – EX-99.1

On:  Thursday, 12/9/04, at 12:17pm ET   ·   For:  12/9/04   ·   Accession #:  882377-4-2551   ·   File #:  333-115122-23

in

this entire Filing. an “Entity” Search.

Show

Documents searched

and

each “hit”. the 1st “hit”.

↓↑Hints

Amendment to Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K/A       Structured Asset Mortgage Investments Ii Inc           5     18K 
 2: EX-3.1      Amended and Restated Trust Agreement                  68    230K 
 3: EX-4.1      Indenture                                            127    540K 
 4: EX-99.1     Sale and Servicing Agreement                          96    354K 
 5: EX-99.2     Administration Agreement                              13     45K 

EX-99.1   —   Sale and Servicing Agreement
Exhibit Table of Contents

EX-99.1
1st Page of 96
TOC
↑Top
Previous
Next
↓Bottom
Just 1st
 
EXHIBIT 99.1      

EX-99.1
2nd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 2nd
STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.,
As Depositor

 HOMEBANC MORTGAGE TRUST 2004-2,
 as Issuer

 U.S. BANK NATIONAL ASSOCIATION,
as Indenture Trustee

 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as Master Servicer and Securities Administrator

 and

 EMC MORTGAGE CORPORATION,
 as Seller and Company

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

SALE AND SERVICING AGREEMENT

Dated as of October 29, 2004

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

 Structured Asset Mortgage Investments II Inc.
 HomeBanc Mortgage Trust 2004-2,
Mortgage-Backed Notes, Series 2004-2

EX-99.1
3rd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 3rd
                                                        [Enlarge/Download Table]

                                TABLE OF CONTENTS                                                                  

                                                                                                               Page

ARTICLE I                                                                                                          

Definitions                                                                                                        

                                                                                                                   
Section 1.01       Definitions....................................................................................2

Section 1.02       Other Definitional Provisions..................................................................2

ARTICLE II                                                                                                         

Conveyance of Mortgage Loans                                                                                       

Section 2.01       Conveyance of Mortgage Loans to Issuer.........................................................3

Section 2.02       Acceptance of Mortgage Loans by the Issuer.....................................................5

Section 2.03       Assignment of Interest in the Mortgage Loan Purchase Agreement.................................7

Section 2.04       Substitution of Mortgage Loans.................................................................8

Section 2.05       Representations and Warranties Concerning the Depositor........................................9

Section 2.06       Representations and Warranties Regarding the Master Servicer..................................10

Section 2.07       Assignment of Agreement.......................................................................11

ARTICLE III                                                                                                        

Administration and Servicing of Mortgage Loans                                                                     

Section 3.01       Master Servicer...............................................................................13

Section 3.02       [Reserved]....................................................................................14

Section 3.03       Monitoring of Servicer........................................................................14

Section 3.04       Fidelity Bond.................................................................................15

Section 3.05       Power to Act; Procedures......................................................................15

Section 3.06       Due-on-Sale Clauses; Assumption Agreements....................................................16

Section 3.07       Release of Mortgage Files.....................................................................16

Section 3.08       Documents,  Records and Funds in Possession of Master  Servicer To Be Held for Issuer           
                    and Indenture Trustee........................................................................17

Section 3.09       Standard Hazard Insurance and Flood Insurance Policies........................................18

Section 3.10       Presentment of Claims and Collection of Proceeds..............................................18

Section 3.11       Maintenance of the Primary Mortgage Insurance Policies........................................18

Section 3.12       Indenture Trustee to Retain Possession of Certain Insurance Policies and Documents............19

Section 3.13       Realization Upon Defaulted Mortgage Loans.....................................................19

Section 3.14       Compensation for the Master Servicer..........................................................20

Section 3.15       REO Property..................................................................................20

Section 3.16       Annual Officer's Certificate as to Compliance.................................................20

Section 3.17       Annual Independent Accountant's Servicing Report..............................................21

Section 3.18       Reports Filed with Securities and Exchange Commission.........................................21

                                       i                                                                           

EX-99.1
4th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 4th
Section 3.19       The Company...................................................................................22

Section 3.20       UCC...........................................................................................22

Section 3.21       Optional Purchase of Defaulted Mortgage Loans.................................................22

Section 3.22       Monthly Advances..............................................................................23

Section 3.23       Compensating Interest Payments................................................................23

ARTICLE IV                                                                                                         

Accounts                                                                                                           

Section 4.01       Protected Accounts............................................................................24

Section 4.02       Master Servicer Collection Account............................................................25

Section 4.03       Permitted Withdrawals and Transfers from the Master Servicer Collection Account...............26

Section 4.04       Payment Account...............................................................................27

Section 4.05       Permitted Withdrawals and Transfers from the Payment Account..................................28

ARTICLE V                                                                                                          

The Master Servicer                                                                                                

Section 5.01       Liabilities of the Master Servicer............................................................30

Section 5.02       Merger or Consolidation of the Master Servicer................................................30

Section 5.03       Indemnification  of the Indenture  Trustee,  Owner Trustee,  the Master  Servicer and           
                    the Securities Administrator.................................................................30

Section 5.04       Limitations on Liability of the Master Servicer and Others....................................31

Section 5.05       Master Servicer Not to Resign.................................................................32

Section 5.06       Successor Master Servicer.....................................................................32

Section 5.07       Sale and Assignment of Master Servicing.......................................................32

ARTICLE VI                                                                                                         

Default                                                                                                            

Section 6.01       Master Servicer Events of Default.............................................................34

Section 6.02       Indenture Trustee to Act; Appointment of Successor............................................36

Section 6.03       Notification to Noteholders...................................................................37

Section 6.04       Waiver of Defaults............................................................................37

ARTICLE VII                                                                                                        

Miscellaneous Provisions                                                                                           

Section 7.01       Amendment.....................................................................................38

Section 7.02       Recordation of Agreement......................................................................39

Section 7.03       Governing Law.................................................................................39

Section 7.04       Notices.......................................................................................39

Section 7.05       Severability of Provisions....................................................................40

                                       ii                                                                          

EX-99.1
5th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 5th
Section 7.06       Successors and Assigns........................................................................40

Section 7.07       Article and Section Headings..................................................................40

Section 7.08       Counterparts..................................................................................40

Section 7.09       Notice to Rating Agencies.....................................................................40

Section 7.10       Termination...................................................................................40

Section 7.11       No Petition...................................................................................41

Section 7.12       No Recourse...................................................................................41

Section 7.13       Additional Terms Regarding Indenture..........................................................41

EXHIBITS

Exhibit A      -     Mortgage Loan Schedule                                     
Exhibit B      -     Request for Release of Documents                           
Exhibit C      -     HomeBanc Servicing Agreement                               
Exhibit D      -     Assignment Agreement                                       
Exhibit E      -     Mortgage Loan Purchase Agreement                           
Exhibit F      -     Special Servicing Agreement                                

iii 

EX-99.1
6th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 6th
SALE AND SERVICING AGREEMENT

Sale and Servicing Agreement dated as of October 29, 2004 (the
"Agreement"), among Structured Asset Mortgage Investments II Inc., a Delaware   
corporation, as depositor (the "Depositor"), HomeBanc Mortgage Trust 2004-2, a  
Delaware statutory trust, as issuer (the "Issuer"), U.S. Bank National          
Association, a national banking association, not in its individual capacity but 
solely as indenture trustee (the "Indenture Trustee"), Wells Fargo Bank,        
National Association, as master servicer (in such capacity, the "Master         
Servicer") and as securities administrator (in such capacity, the "Securities   
Administrator"), and EMC Mortgage Corporation, as seller (in such capacity, the 
"Seller") and as company (in such capacity, the "Company").                     

 PRELIMINARY STATEMENT

      On or prior to the Closing Date, the Depositor acquired the Mortgage
Loans from the Seller pursuant to the Mortgage Loan Purchase Agreement. Prior to
the Closing Date, pursuant to a Trust Agreement, as amended and restated on the 
Closing Date, the Depositor created HomeBanc Mortgage Trust 2004-2, a Delaware  
statutory trust, for the purpose of holding the Mortgage Loans and issuing the  
Trust Certificates (the "Certificates"), pursuant to the Trust Agreement, and   
the Notes, pursuant to the Indenture. Pursuant to this Agreement, on the Closing
Date, the Depositor will sell the Mortgage Loans and certain other property to  
the Issuer and pursuant to the Indenture, the Issuer will pledge all of its     
right, title and interest in and to the Mortgage Loans and other property       
acquired from the Depositor pursuant to this Agreement to the Indenture Trustee 
to secure the Notes issued pursuant to the Indenture. In consideration for the  
Mortgage Loans and other property conveyed pursuant to this Agreement, the      
Depositor will receive from the Issuer the Certificates evidencing the entire   
beneficial ownership interest in the Issuer and the Notes representing          
indebtedness of the Issuer.                                                     

         The Mortgage Loans will have an Outstanding Principal Balance as of the
Cut-off Date, after deducting all Scheduled Principal due on or before the      
Cut-off Date, of $897,891,120.                                                  

         In consideration of the mutual agreements herein contained, each of the
Depositor, the Issuer, the Master Servicer, the Securities Administrator, the   
Seller, the Company and the Indenture Trustee undertakes and agrees to perform  
their respective duties hereunder as follows:                                   

EX-99.1
7th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 7th
ARTICLE I 

 Definitions

         Section 1.01 Definitions. For all purposes of this Agreement, except as
otherwise expressly provided herein or unless the context otherwise requires,   
capitalized terms not otherwise defined herein shall have the meanings assigned 
to such terms in the Definitions contained in Appendix A to the Indenture which 
is incorporated by reference herein. All other capitalized terms used herein    
shall have the meanings specified herein.                                       

Section 1.02 Other Definitional Provisions.                   

         (a) All terms defined in this Agreement shall have the defined meanings
when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein.                                               

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

    (c) The words "hereof," "herein," "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and 
not to any particular provision of this Agreement; Section and Exhibit          
references contained in this Agreement are references to Sections and Exhibits  
in or to this Agreement unless otherwise specified; and the term "including"    
shall mean "including without limitation".                                      

       (d) The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well 
as the feminine and neuter genders of such terms.                               

        (e) 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.                        

EX-99.1
8th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 8th
ARTICLE II

 Conveyance of Mortgage Loans;

        Section 2.01 Conveyance of Mortgage Loans to Issuer. (a) The Depositor
concurrently with the execution and delivery of this Agreement, sells, transfers
and assigns to the Issuer without recourse all its right, title and interest in 
and to (i) the Mortgage Loans identified in the Mortgage Loan Schedule,         
including all interest and principal due with respect to the Mortgage Loans     
after the Cut-off Date, but excluding any payments of principal and interest due
on or prior to the Cut-off Date; (ii) such assets as shall from time to time be 
credited or are required by the terms of this Agreement to be credited to the   
Master Servicer Collection Account, (iii) such assets relating to the Mortgage  
Loans as from time to time may be held by the Servicer in the Protected Account,
the Master Servicer in the Master Servicer Collection Account and the Indenture 
Trustee in the Payment Account, (iv) any REO Property, (v) the Required         
Insurance Policies and any amounts paid or payable by the insurer under any     
Insurance Policy (to the extent the mortgagee has a claim thereto), (vi) the    
Mortgage Loan Purchase Agreement to the extent provided in Subsection 2.03(a),  
(vii) the rights with respect to the HomeBanc Servicing Agreement as assigned to
the Issuer by the Assignment Agreement, (viii) the Corridor Contracts and (ix)  
any proceeds of the foregoing. Although it is the intent of the Depositor and   
the Issuer that the conveyance of the Depositor's right, title and interest in  
and to the Mortgage Loans and other assets in the Trust Estate to the Issuer    
pursuant to this Agreement shall constitute a purchase and sale and not a loan, 
in the event that such conveyance is deemed to be a loan, it is the intent of   
the parties to this Agreement that the Depositor shall be deemed to have granted
to the Issuer a first priority perfected security interest in all of the        
Depositor's right, title and interest in, to and under the Mortgage Loans and   
other assets in the Trust Estate, and that this Agreement shall constitute a    
security agreement under applicable law.                                        

         (b) In connection with the above transfer and assignment, the Depositor
hereby delivers to the Custodian, on behalf of the Issuer, with respect to each 
Mortgage Loan:                                                                  

                (i) the original Mortgage Note, endorsed without recourse in
        blank or to the order of the Indenture Trustee and showing an unbroken
 chain of endorsements from the originator thereof to the Person
 endorsing it in blank or to the Indenture Trustee, or lost note
affidavit together with a copy of the related Mortgage Note;  

                (ii) the original Mortgage and, if the related Mortgage Loan
       is a MOM Loan, noting the presence of the MIN and language indicating
       that such Mortgage Loan is a MOM Loan, which shall have been recorded
      (or if the original is not available, a copy), with evidence of such
    recording indicated thereon (or if clause (w) in the proviso below
applies, shall be in recordable form);                        

                  (iii) unless the Mortgage Loan is a MOM Loan, a certified copy
        of the assignment (which may be in the form of a blanket assignment if
  permitted in the jurisdiction in which the Mortgaged Property is
       located) in blank or to "U.S. Bank National Association, as Indenture
         Trustee, on behalf of the Noteholders", with evidence of recording with
    respect to each Mortgage Loan in the name of the Indenture Trustee
        thereon (or if clause (w) in the proviso below applies or for Mortgage
       Loans with respect to which the related Mortgaged Property is located
  in a state other than Maryland or an Opinion of Counsel has been
       provided as set forth in this Section 2.01(b), shall be in recordable
form);                                                        

                (iv) all intervening assignments of the Security Instrument,
      if applicable and only to the extent available to the Depositor with
evidence of recording thereon;                                

              (v) the original or a copy of the policy or certificate of
       primary mortgage guaranty insurance, to the extent available, if any;

                (vi) the original or a copy of the policy of title insurance
       or mortgagee's certificate of title insurance or commitment or binder
for title insurance; and                                      

                 (vii) originals of all modification agreements, if applicable
and available;                                                

provided, however, that in lieu of the foregoing, the Depositor may deliver to  
the Custodian, the following documents, under the circumstances set forth below:
(w) in lieu of the original Security Instrument (including the Mortgage),       
assignments to the Indenture Trustee or intervening assignments thereof which   
have been delivered, are being delivered or will, upon receipt of recording     
information relating to such documents required to be included thereon, be      
delivered to recording offices for recording and have not been returned to the  
Depositor in time to permit their delivery as specified above, the Depositor may
deliver a true copy thereof with a certification by the Servicer, or its agent  
on its behalf, substantially to the effect that such copy is a true and correct 
copy of the original; (x) in lieu of the Security Instrument, assignment in     
blank or to the Indenture Trustee or intervening assignments thereof, if the    
applicable jurisdiction retains the originals of such documents (as evidenced by
a certification from the Depositor to such effect) the Depositor may deliver    
photocopies of such documents containing an original certification by the       
judicial or other governmental authority of the jurisdiction where such         
documents were recorded or from the Depositor's agent, escrow agent or closing  
attorney; (y) in lieu of the Mortgage Notes relating to the Mortgage Loans      
identified on Exhibit 5 to the Mortgage Loan Purchase Agreement, the Depositor  
may deliver lost note affidavits from the Seller; and (z) the Depositor shall   
not be required to deliver intervening assignments or Mortgage Note endorsements
between the Underlying Seller and the Seller, between the Seller and the        
Depositor, between the Depositor and the Issuer, and between the Issuer and the 
Indenture Trustee; and provided, further, however, that in the case of Mortgage 
Loans which have been prepaid in full after the Cut-off Date and prior to the   
Closing Date, the Depositor, in lieu of delivering the above documents, may     
deliver to the Indenture Trustee, a certification to such effect and shall      
deposit all amounts paid in respect of such Mortgage Loans in the Master        
Servicer Collection Account on the Closing Date. The Depositor shall deliver    
such original documents (including any original documents as to which certified 
copies had previously been delivered) to the Custodian, promptly after they are 
received. The Depositor shall cause the Seller, at its expense, to cause each   
assignment of the Security Instrument to the Indenture Trustee to be recorded   
not later than 180 days after the Closing Date, unless (a) such recordation is  
not required by the Rating Agencies as evidenced in writing or an Opinion of    
Counsel addressed to the Indenture Trustee has been provided to the Indenture   
Trustee and the Issuer which states that recordation of such Security Instrument
is not required to protect the interests of the Noteholders in the related      
Mortgage Loans or (b) MERS is identified on the Mortgage or                     

EX-99.1
9th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 9th
on a properly recorded assignment of the Mortgage as the mortgagee of record    
solely as nominee for the Seller and its successor and assigns; provided,       
however, notwithstanding the foregoing, each assignment shall be submitted for  
recording by the Seller in the manner described above, at no expense to the     
Issuer or the Indenture Trustee, upon the earliest to occur of: (i) reasonable  
direction by the Holders of Notes aggregating at least 25% of the Note Principal
Balance of the Notes, (ii) the occurrence of a Master Servicer Event of Default 
or an Event of Default, (iii) the occurrence of a bankruptcy, insolvency or     
foreclosure relating to the Seller and (iv) the occurrence of a servicing       
transfer as described in Section 6.02 hereof. Notwithstanding the foregoing, if 
the Seller fails to pay the cost of recording the assignments, such expense will
be paid by the Indenture Trustee and the Indenture Trustee shall be reimbursed  
for such expenses by the Trust Estate in accordance with Section 6.07 of the    
Indenture.                                                                      

         Section 2.02 Acceptance of Mortgage Loans and the Corridor Contracts by
the Issuer. (a) The Issuer acknowledges the sale, transfer and assignment of the
Trust Estate to it by the Depositor and receipt of, subject to further review by
the Custodian, on its behalf, and the exceptions which may be noted by the      
Custodian, on its behalf, pursuant to the procedures described below, and the   
Issuer will cause the Custodian to hold, the documents (or certified copies     
thereof) delivered to the Custodian, pursuant to Section 2.01, and any          
amendments, replacements or supplements thereto and all other assets of the     
Trust Estate delivered to it, in trust for the use and benefit of all present   
and future Holders of the Notes issued pursuant to the Indenture. On the Closing
Date, in accordance with the Custodial Agreement, the Custodian shall           
acknowledge with respect to each Mortgage Loan by delivery to the Depositor, the
Seller, the Indenture Trustee and the Issuer of an Initial Certification,       
receipt of the Mortgage File, but without review of such Mortgage File, except  
to the extent necessary to confirm that such Mortgage File contains the related 
Mortgage Note or lost note affidavit. No later than 90 days after the Closing   
Date (or, with respect to any Substitute Mortgage Loan, within five Business    
Days after the receipt by the Custodian thereof), the Custodian, in accordance  
with the Custodial Agreement, shall review each Mortgage File delivered to it   
and shall execute and deliver to the Depositor, the Seller, the Indenture       
Trustee and Issuer an Interim Certification. In conducting such review, the     
Custodian will ascertain whether all documents required to be reviewed by it    
have been executed and received, and based on the Mortgage Loan Schedule,       
whether the Mortgage Notes relate, determined on the basis of the Mortgagor     
name, original principal balance and loan number, to the Mortgage Loans it has  
received, as identified in the Mortgage Loan Schedule. In performing any such   
review, the Custodian may conclusively rely on the purported due execution and  
genuineness of any such document and on the purported genuineness of any        
signature thereon. If the Custodian finds any document constituting part of the 
Mortgage File has not been executed or received, or is unrelated, determined on 
the basis of the Mortgagor name, original principal balance and loan number, to 
the Mortgage Loans identified in Exhibit A or does not conform on its face to   
the review criteria specified in this Section (a "Material Defect"), the        
Custodian shall notify the Seller and the Indenture Trustee of such Material    
Defect in writing. In accordance with the Mortgage Loan Purchase Agreement, the 
Seller shall correct or cure any such Material Defect within ninety (90) days   
from the date of notice from the Indenture Trustee of the defect and if the     
Seller fails to correct or cure the Material Defect within such period, the     
Indenture Trustee shall enforce the Seller's obligation under the Mortgage Loan 
Purchase Agreement to, within 90 days from the Indenture Trustee's notification,
provide a Substitute Mortgage Loan or purchase such Mortgage Loan at the        
Repurchase Price; provided, however, that if such Material Defect relates solely
to the inability                                                                

EX-99.1
10th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 10th
of the Seller to deliver the original Security Instrument or intervening        
assignments thereof, or a certified copy because the originals of such          
documents, or a certified copy have not been returned by the applicable         
jurisdiction, the Seller shall not be required to purchase such Mortgage Loan if
the Seller delivers such original documents or certified copy promptly upon     
receipt, but in no event later than 360 days after the Closing Date. The        
foregoing repurchase obligation shall not apply in the event that the Seller    
cannot deliver such original or copy of any document submitted for recording to 
the appropriate recording office in the applicable jurisdiction because such    
document has not been returned by such office; provided that the Seller shall   
instead deliver a recording receipt of such recording office or, if such receipt
is not available, a certificate confirming that such documents have been        
accepted for recording, and delivery to the Custodian shall be effected by the  
Seller within thirty days of its receipt of the original recorded document.     

      (b) No later than 180 days after the Closing Date, the Custodian, in
accordance with the Custodial Agreement, will review, for the benefit of the    
Noteholders, the Mortgage Files delivered to it and will execute and deliver or 
cause to be executed and delivered to the Depositor, the Seller, the Indenture  
Trustee and the Issuer a Final Certification. In conducting such review, the    
Custodian will ascertain whether an original of each document required to be    
recorded has been returned from the recording office with evidence of recording 
thereon or a certified copy has been obtained from the recording office. If the 
Custodian finds a Material Defect, the Custodian shall promptly notify the      
Seller and the Indenture Trustee in writing (provided, however, that with       
respect to those documents described in subsections (b)(iv), (v) and (vii) of   
Section 2.01, the Custodian's obligations shall extend only to the documents    
actually delivered to the Custodian pursuant to such subsections). In accordance
with the Mortgage Loan Purchase Agreement, the Seller shall correct or cure any 
such Material Defect within 90 days from the date of notice from the Custodian  
or the Indenture Trustee of the Material Defect and if the Seller is unable to  
cure such Material Defect within such period, and if such Material Defect       
materially and adversely affects the interests of the Noteholders in the related
Mortgage Loan, the Indenture Trustee shall enforce the Seller's obligation under
the Mortgage Loan Purchase Agreement to, within 90 days from the Custodian's or 
Indenture Trustee's notification, provide a Substitute Mortgage Loan or purchase
such Mortgage Loan at the Repurchase Price; provided, however, that if such     
defect relates solely to the inability of the Seller to deliver the original    
Security Instrument or intervening assignments thereof, or a certified copy,    
because the originals of such documents or a certified copy, have not been      
returned by the applicable jurisdiction, the Seller shall not be required to    
purchase such Mortgage Loan, if the Seller delivers such original documents or  
certified copy promptly upon receipt, but in no event later than 360 days after 
the Closing Date. The foregoing repurchase obligation shall not apply in the    
event that the Seller cannot deliver such original or copy of any document      
submitted for recording to the appropriate recording office in the applicable   
jurisdiction because such document has not been returned by such office;        
provided that the Seller shall instead deliver a recording receipt of such      
recording office or, if such receipt is not available, a certificate confirming 
that such documents have been accepted for recording, and delivery to the       
Indenture Trustee shall be effected by the Seller within thirty days of its     
receipt of the original recorded document.                                      

     (c) In the event that a Mortgage Loan is purchased by the Seller in
accordance with Subsections 2.02(a) or (b) above, the Seller shall remit to the 
Master Servicer the Repurchase Price for deposit in the Master Servicer         
Collection Account and the Seller shall provide to the                          

EX-99.1
11th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 11th
Securities Administrator and the Indenture Trustee written notification         
detailing the components of the Repurchase Price. Upon deposit of the Repurchase
Price in the Master Servicer Collection Account, the Depositor shall notify the 
Indenture Trustee and the Custodian and, the Indenture Trustee (upon receipt of 
a Request for Release in the form of Exhibit B attached hereto with respect to  
such Mortgage Loan and certification that the Repurchase Price has been         
deposited in the Master Servicer Collection Account), shall cause the Custodian 
to release to the Seller the related Mortgage File and the Indenture Trustee    
shall execute and deliver all instruments of transfer or assignment, without    
recourse, representation or warranty, furnished to it by the Seller, as are     
necessary to vest in the Seller title to and rights under the Mortgage Loan.    
Such purchase shall be deemed to have occurred on the date on which the         
Repurchase Price in available funds is deposited in the Master Servicer         
Collection Account. The Master Servicer shall amend the Mortgage Loan Schedule, 
which was previously delivered to it by the Depositor in a form agreed to       
between the Depositor, the Indenture Trustee and the Custodian, to reflect such 
repurchase and shall promptly deliver to the Rating Agencies, the Indenture     
Trustee, the Custodian and the Issuer a copy of such amendment. The obligation  
of the Seller to repurchase or substitute for any Mortgage Loan a Substitute    
Mortgage Loan as to which such a Material Defect in a constituent document      
exists shall be the sole remedy respecting such Material Defect available to the
Issuer, the Noteholders or to the Indenture Trustee on their behalf.            

(d) The Indenture Trustee acknowledges receipt of the Corridor
Contracts and declares that it holds and will continue to hold these documents  
and any amendments, replacements or supplements thereto and all other assets of 
the Trust Estate as Indenture Trustee in trust for the use and benefit of all   
present and future Holders of the Notes. The Indenture Trustee shall enforce the
Corridor Contracts in accordance with their terms.                              

   Section 2.03 Assignment of Interest in the Mortgage Loan Purchase
Agreement. (a) The Depositor hereby assigns to the Issuer, all of its right,    
title and interest in the Mortgage Loan Purchase Agreement, including but not   
limited to the Depositor's rights and obligations pursuant to the HomeBanc      
Servicing Agreement (noting that the Seller has retained the right in the event 
of breach of the representations, warranties and covenants, if any, with respect
to the Mortgage Loans of the Servicer under the HomeBanc Servicing Agreement to 
enforce the provisions thereof and to seek all or any available remedies). The  
Depositor hereby acknowledges that such right, title and interest in the        
Mortgage Loan Purchase Agreement, will be pledged by the Issuer to the Indenture
Trustee pursuant to the Indenture. The obligations of the Seller to substitute  
or repurchase, as applicable, a Mortgage Loan shall be the Issuer's, the        
Indenture Trustee's and the Noteholders' sole remedy for any breach thereof. At 
the request of the Issuer or the Indenture Trustee, the Depositor shall take    
such actions as may be necessary to enforce the above right, title and interest 
on behalf of the Issuer, the Indenture Trustee and the Noteholders and shall    
execute such further documents as the Issuer or the Indenture Trustee may       
reasonably require in order to enable the Indenture Trustee to carry out such   
enforcement.                                                                    

       (b) If the Depositor, the Securities Administrator, the Issuer or the
Indenture Trustee discovers a breach of any of the representations and          
warranties set forth in the Mortgage Loan Purchase Agreement, which breach      
materially and adversely affects the value of the interests of the Issuer, the  
Noteholders or the Indenture Trustee in the related Mortgage Loan, the party    
discovering the breach shall give prompt written notice of the breach to the    
other parties. Any breach of a representation or warranty contained in clauses  
(xviii) or (xxvi) through (xxx) of                                              

EX-99.1
12th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 12th
Section 7 of the Mortgage Loan Purchase Agreement in respect of a Group I Loan, 
shall be deemed to materially adversely affect the interests of the Noteholders.
The Seller, within 90 days of its discovery or receipt of notice that such      
breach has occurred (whichever occurs earlier), shall cure the breach in all    
material respects or, subject to the Mortgage Loan Purchase Agreement and       
Section 2.04 of this Agreement, shall purchase the Mortgage Loan or any property
acquired with respect thereto from the Issuer; provided, however, that if there 
is a breach of any representation set forth in the Mortgage Loan Purchase       
Agreement, and the Mortgage Loan or the related property acquired with respect  
thereto has been sold, then the Seller shall pay, in lieu of the Repurchase     
Price, any excess of the Repurchase Price over the Net Liquidation Proceeds     
received upon such sale. If the Net Liquidation Proceeds exceed the Repurchase  
Price, any excess shall be paid to the Seller to the extent not required by law 
to be paid to the borrower. Any such purchase by the Seller shall be made by    
providing an amount equal to the Repurchase Price to the Master Servicer for    
deposit in the Master Servicer Collection Account and written notification      
detailing the components of such Repurchase Price. The Depositor shall submit to
the Indenture Trustee and the Custodian a Request for Release, and the Indenture
Trustee shall cause the Custodian to release, upon receipt of certification from
the Master Servicer that the Repurchase Price has been deposited in the Master  
Servicer Collection Account, to the Seller the related Mortgage File and the    
Indenture Trustee shall execute and deliver all instruments of transfer or      
assignment furnished to it by the Seller, without recourse, representation or   
warranty as are necessary to vest in the Seller title to and rights under the   
Mortgage Loan or any property acquired with respect thereto. Such purchase shall
be deemed to have occurred on the date on which the Repurchase Price in         
available funds is deposited in the Master Servicer Collection Account. The     
Master Servicer shall amend the Mortgage Loan Schedule to reflect such          
repurchase and shall promptly deliver to the Issuer, Indenture Trustee, the     
Custodian and the Rating Agencies a copy of such amendment. Enforcement of the  
obligation of the Seller to purchase (or substitute a Substitute Mortgage Loan  
for) any Mortgage Loan or any property acquired with respect thereto (or pay the
Repurchase Price as set forth in the above proviso) as to which a breach has    
occurred and is continuing shall constitute the sole remedy respecting such     
breach available to the Issuer, the Noteholders or the Indenture Trustee on     
their behalf.                                                                   

       Section 2.04 Substitution of Mortgage Loans. Notwithstanding anything
to the contrary in this Agreement, in lieu of purchasing a Mortgage Loan        
pursuant to the Mortgage Loan Purchase Agreement or Sections 2.02 or 2.03 of    
this Agreement, the Seller may, no later than the date by which such purchase by
the Seller would otherwise be required, tender to the Indenture Trustee a       
Substitute Mortgage Loan accompanied by a certificate of an authorized officer  
of the Seller that such Substitute Mortgage Loan conforms to the requirements   
set forth in the definition of "Substitute Mortgage Loan" in this Agreement. The
Indenture Trustee shall cause the Custodian to examine the Mortgage File for any
Substitute Mortgage Loan in the manner set forth in Section 2.02(a) and the     
Indenture Trustee shall cause the Custodian to notify the Seller, in writing,   
within five Business Days after receipt, whether or not the documents relating  
to the Substitute Mortgage Loan satisfy the requirements of the fifth sentence  
of Subsection 2.02(a). Within two Business Days after such notification, the    
Seller shall provide to the Master Servicer for deposit in the Master Servicer  
Collection Account the amount, if any, by which the Outstanding Principal       
Balance as of the next preceding Due Date of the Mortgage Loan for which        
substitution is being made, after giving effect to the Scheduled Principal due  
on such date, exceeds the Outstanding Principal Balance as of such date of the  
Substitute Mortgage Loan, after                                                 

EX-99.1
13th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 13th
giving effect to Scheduled Principal due on such date, which amount shall be    
treated for the purposes of this Agreement as if it were the payment by the     
Seller of the Repurchase Price for the purchase of a Mortgage Loan by the       
Seller. After such notification to the Seller and, if any such excess exists,   
upon receipt of certification from the Master Servicer that such excess has been
deposited in the Master Servicer Collection Account, the Indenture Trustee shall
accept such Substitute Mortgage Loan which shall thereafter be deemed to be a   
Mortgage Loan hereunder. In the event of such a substitution, accrued interest  
on the Substitute Mortgage Loan for the month in which the substitution occurs  
and any Principal Prepayments made thereon during such month shall be the       
property of the Trust Estate and accrued interest for such month on the Mortgage
Loan for which the substitution is made and any Principal Prepayments made      
thereon during such month shall be the property of the Seller. The Scheduled    
Principal on a Substitute Mortgage Loan due on the Due Date in the month of     
substitution shall be the property of the Seller and the Scheduled Principal on 
the Mortgage Loan for which the substitution is made due on such Due Date shall 
be the property of the Trust Estate. Upon acceptance of the Substitute Mortgage 
Loan (and delivery to the Indenture Trustee and the Custodian of a Request for  
Release for such Mortgage Loan), the Indenture Trustee shall cause the Custodian
to release to the Seller the related Mortgage File related to any Mortgage Loan 
released pursuant to the Mortgage Loan Purchase Agreement or Section 2.04 of    
this Agreement, as applicable, and shall execute and deliver all instruments of 
transfer or assignment, without recourse, representation or warranty in form as 
provided to it as are necessary to vest in the Seller title to and rights under 
any Mortgage Loan released pursuant to the Mortgage Loan Purchase Agreement or  
Section 2.04 of this Agreement, as applicable. The Seller shall deliver to the  
Custodian the documents related to the Substitute Mortgage Loan in accordance   
with the provisions of the Mortgage Loan Purchase Agreement and Subsections     
2.01(b) and 2.02(b) of this Agreement, as applicable, with the date of          
acceptance of the Substitute Mortgage Loan deemed to be the Closing Date for    
purposes of the time periods set forth in those Subsections. The representations
and warranties set forth in the Mortgage Loan Purchase Agreement shall be deemed
to have been made by the Seller with respect to each Substitute Mortgage Loan as
of the date of acceptance of such Mortgage Loan by the Indenture Trustee. The   
Master Servicer shall amend the Mortgage Loan Schedule to reflect such          
substitution and shall provide a copy of such amended Mortgage Loan Schedule to 
the Issuer, the Indenture Trustee, the Custodian and the Rating Agencies.       

       Section 2.05 Representations and Warranties Concerning the Depositor.
The Depositor hereby represents and warrants to the Issuer, the Indenture       
Trustee, the Master Servicer and the Securities Administrator as follows:       

                  (i) the Depositor (a) is a corporation duly organized, validly
       existing and in good standing under the laws of the State of Delaware
       and (b) is qualified and in good standing as a foreign corporation to
         do business in each jurisdiction where such qualification is necessary,
         except where the failure so to qualify would not reasonably be expected
  to have a material adverse effect on the Depositor's business as
      presently conducted or on the Depositor's ability to enter into this
   Agreement and to consummate the transactions contemplated hereby;

          (ii) the Depositor has full corporate power to own its
        property, to carry on its business as presently conducted and to enter
into and perform its obligations under this Agreement;        

EX-99.1
14th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 14th
             (iii) the execution and delivery by the Depositor of this
       Agreement have been duly authorized by all necessary corporate action
         on the part of the Depositor; and neither the execution and delivery of
 this Agreement, nor the consummation of the transactions herein
        contemplated, nor compliance with the provisions hereof, will conflict
      with or result in a breach of, or constitute a default under, any of
     the provisions of any law, governmental rule, regulation, judgment,
   decree or order binding on the Depositor or its properties or the
     articles of incorporation or by-laws of the Depositor, except those
        conflicts, breaches or defaults which would not reasonably be expected
       to have a material adverse effect on the Depositor's ability to enter
     into this Agreement and to consummate the transactions contemplated
hereby;                                                       

                 (iv) the execution, delivery and performance by the Depositor
         of this Agreement and the consummation of the transactions contemplated
        hereby do not require the consent or approval of, the giving of notice
         to, the registration with, or the taking of any other action in respect
   of, any state, federal or other governmental authority or agency,
   except those consents, approvals, notices, registrations or other
actions as have already been obtained, given or made;         

                  (v) this Agreement has been duly executed and delivered by the
      Depositor and, assuming due authorization, execution and delivery by
         the other parties hereto, constitutes a valid and binding obligation of
   the Depositor enforceable against it in accordance with its terms
         (subject to applicable bankruptcy and insolvency laws and other similar
       laws affecting the enforcement of the rights of creditors generally);

                  (vi) there are no actions, suits or proceedings pending or, to
   the knowledge of the Depositor, threatened against the Depositor,
before or by any court, administrative agency, arbitrator or  
governmental body (i) with respect to any of the transactions 
         contemplated by this Agreement or (ii) with respect to any other matter
        which in the judgment of the Depositor will be determined adversely to
 the Depositor and will if determined adversely to the Depositor
       materially and adversely affect the Depositor's ability to enter into
         this Agreement or perform its obligations under this Agreement; and the
     Depositor is not in default with respect to any order of any court,
 administrative agency, arbitrator or governmental body so as to
       materially and adversely affect the transactions contemplated by this
Agreement; and                                                

                 (vii) immediately prior to the transfer and assignment to the
     Issuer, each Mortgage Note and each Mortgage were not subject to an
       assignment or pledge, and the Depositor had good and marketable title
      to and was the sole owner thereof and had full right to transfer and
sell such Mortgage Loan to the Issuer free and clear of any   
        encumbrance, equity, lien, pledge, charge, claim or security interest.

  Section 2.06 Representations and Warranties Regarding the Master
Servicer. The Master Servicer represents and warrants to the Issuer, the        
Depositor, the Seller and the Indenture Trustee for the benefit of the          
Noteholders, as follows:                                                        

                  (i) The Master Servicer is a national banking association duly
        organized, validly existing and in good standing under the laws of the
Untied States of America and                                  

EX-99.1
15th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 15th
        has the corporate power to own its assets and to transact the business
         in which it is currently engaged. The Master Servicer is duly qualified
         to do business as a foreign corporation and is in good standing in each
         jurisdiction in which the character of the business transacted by it or
     properties owned or leased by it requires such qualification and in
         which the failure to so qualify would have a material adverse effect on
        the business, properties, assets, or condition (financial or other) of
the Master Servicer or the validity or enforceability of this 
Agreement;                                                    

                 (ii) The Master Servicer has the power and authority to make,
         execute, deliver and perform this Agreement and all of the transactions
contemplated under this Agreement, and has taken all necessary
       corporate action to authorize the execution, delivery and performance
     of this Agreement. When executed and delivered, this Agreement will
  constitute the legal, valid and binding obligation of the Master
Servicer enforceable in accordance with its terms, except as  
       enforcement of such terms may be limited by bankruptcy, insolvency or
       similar laws affecting the enforcement of creditors' rights generally
and by the availability of equitable remedies;                

           (iii) The Master Servicer is not required to obtain the
  consent of any other Person or any consent, license, approval or
authorization from, or registration or declaration with, any  
 governmental authority, bureau or agency in connection with the
      execution, delivery, performance, validity or enforceability of this
         Agreement, except for such consent, license, approval or authorization,
       or registration or declaration, as shall have been obtained or filed,
as the case may be;                                           

             (iv) The execution and delivery of this Agreement and the
   performance of the transactions contemplated hereby by the Master
Servicer will not violate any provision of any existing law or
         regulation or any order or decree of any court applicable to the Master
         Servicer or any provision of the certificate of incorporation or bylaws
of the Master Servicer, or constitute a material breach of any
      mortgage, indenture, contract or other agreement to which the Master
       Servicer is a party or by which the Master Servicer may be bound; and

               (v) No litigation or administrative proceeding of or before
      any court, tribunal or governmental body is currently pending (other
        than litigation with respect to which pleadings or documents have been
       filed with a court, but not served on the Master Servicer), or to the
 knowledge of the Master Servicer threatened, against the Master
        Servicer or any of its properties or with respect to this Agreement or
     the Notes or the Certificates which, to the knowledge of the Master
  Servicer, has a reasonable likelihood of resulting in a material
    adverse effect on the transactions contemplated by this Agreement.

The foregoing representations and warranties shall survive any
termination of the Master Servicer hereunder.                                   

         Section 2.07 Assignment of Agreement. The Seller, the Depositor and the
Master Servicer hereby acknowledge and agree that the Issuer may assign its     
interest under this Agreement to the Indenture Trustee, for the benefit of the  
Noteholders, as may be required to                                              

EX-99.1
16th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 16th
effect the purposes of the Indenture, without further notice to, or consent     
of, the Seller, the Depositor or the Master Servicer, and the Indenture Trustee 
shall succeed to such of the rights of the Issuer hereunder as shall be so      
assigned. The Issuer shall, pursuant to the Indenture, assign all of its right, 
title and interest in and to the Mortgage Loans and its right to exercise the   
remedies created by Article II of this Agreement for breaches of the            
representations, warranties, agreements and covenants of the Seller contained in
the Mortgage Loan Purchase Agreement, to the Indenture Trustee, for the benefit 
of the Noteholders. The Seller agrees that, upon such assignment to the         
Indenture Trustee, such representations, warranties, agreements and covenants   
will run to and be for the benefit of the Indenture Trustee and the Indenture   
Trustee may enforce, without joinder of the Depositor or the Issuer, the        
repurchase obligations of the Seller set forth herein and in the Mortgage Loan  
Purchase Agreement with respect to breaches of such representations, warranties,
agreements and covenants. Any such assignment to the Indenture Trustee shall not
be deemed to constitute an assignment to the Indenture Trustee of any           
obligations or liabilities of the Issuer under this Agreement.                  

EX-99.1
17th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 17th
ARTICLE III 

Administration and Servicing of Mortgage Loans

    Section 3.01 Master Servicer. The Master Servicer shall supervise,
monitor and oversee the obligations of the Servicer to service and administer   
the Mortgage Loans in accordance with the terms of the Servicing Agreement and  
shall have full power and authority to do any and all things which it may deem  
necessary or desirable in connection with such master servicing and             
administration. In performing its obligations hereunder, the Master Servicer    
shall act in a manner consistent with Accepted Master Servicing Practices.      
Furthermore, the Master Servicer shall oversee and consult with the Servicer as 
necessary from time-to-time to carry out the Master Servicer's obligations      
hereunder, shall receive, review and evaluate all reports, information and other
data provided to the Master Servicer by the Servicer and shall cause the        
Servicer to perform and observe the covenants, obligations and conditions to be 
performed or observed by such Servicer under the Servicing Agreement. The Master
Servicer shall independently and separately monitor the Servicer's servicing    
activities with respect to the Mortgage Loans, reconcile the results of such    
monitoring with such information provided in the previous sentence on a monthly 
basis and coordinate corrective adjustments to the Servicer's and Master        
Servicer's records, and based on such reconciled and corrected information, the 
Master Servicer shall provide such information to the Securities Administrator  
as shall be necessary in order for it to prepare the statements specified in    
Section 7.03 of the Indenture, and prepare any other information and statements 
required to be forwarded by the Master Servicer hereunder. The Master Servicer  
shall reconcile the results of its Mortgage Loan monitoring with the actual     
remittances of the Servicer pursuant to the Servicing Agreement.                

 The Indenture Trustee shall furnish the Servicer and the Master
Servicer with any powers of attorney and other documents in form as provided to 
it necessary or appropriate to enable the Servicer and the Master Servicer to   
service and administer the related Mortgage Loans and REO Property. The         
Indenture Trustee shall not be liable for the Servicer's or the Master          
Servicer's use or misuse of such powers of attorney.                            

The Indenture Trustee shall provide access to the records and 
documentation in possession of the Indenture Trustee regarding the related      
Mortgage Loans and REO Property and the servicing thereof to the Noteholders,   
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 to the Noteholders 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 shall execute and deliver to the Servicer or the
Master Servicer, as applicable based on the requesting party, any court         
pleadings, requests for trustee's sale or other documents necessary or          
reasonably 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 Security Instrument; (iii) obtain a deficiency
judgment against the                                                            

EX-99.1
18th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 18th
Mortgagor; or (iv) enforce any other rights or remedies provided by the Mortgage
Note or Security Instrument or otherwise available at law or equity.            

Section 3.02 [Reserved]                                       

       Section 3.03 Monitoring of Servicer. (a) The Master Servicer shall be
responsible for reporting to the Issuer, the Indenture Trustee and the Depositor
the compliance by the Servicer with its duties under the Servicing Agreement. In
the review of the Servicer's activities, the Master Servicer may rely upon an   
officer's certificate of the Servicer (or similar document signed by an officer 
of the Servicer) with regard to such Servicer's compliance with the terms of the
Servicing Agreement. In the event that the Master Servicer, in its judgment,    
determines that the Servicer should be terminated in accordance with the        
Servicing Agreement, or that a notice should be sent pursuant to the 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, the Issuer and the Indenture Trustee thereof and the Master Servicer 
shall issue such notice or take such other action as it deems appropriate.      

       (b) The Master Servicer, for the benefit of the Issuer, the Indenture
Trustee and the Noteholders, shall enforce the obligations of the Servicer under
the Servicing Agreement, and shall, in the event that the Servicer fails to     
perform its obligations in accordance with the Servicing Agreement, subject to  
the preceding paragraph, terminate the rights and obligations of the Servicer   
thereunder and act as servicer of the related Mortgage Loans or cause the Issuer
and the Indenture Trustee to enter in to a new Servicing Agreement with a       
successor Servicer selected by the Master Servicer; provided, however, it is    
understood and acknowledged by the parties hereto that there will be a period of
transition (not to exceed 90 days) before the actual servicing functions can be 
fully transferred to such successor Servicer. Such enforcement, including,      
without limitation, the legal prosecution of claims, termination of the         
Servicing Agreement 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, 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.                                               

      (c) To the extent that the costs and expenses of the Master Servicer
related to any termination of the Servicer, appointment of a successor Servicer 
or the transfer and assumption of servicing by the Master Servicer with respect 
to the 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 the 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      
service to service the Mortgage Loans in accordance with the 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 Master Servicer Collection Account.                                    

EX-99.1
19th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 19th
       (d) The Master Servicer shall require the Servicer to comply with the
remittance requirements and other obligations set forth in the Servicing        
Agreement.                                                                      

 (e) If the Master Servicer acts as Servicer, it will not assume
liability for the representations and warranties of the Servicer, if any, that  
it replaces.                                                                    

(f) In accordance with Section 10.02 of the HomeBanc Servicing
Agreement and the provisions of the Special Servicing Agreement, upon the       
occurrence of a Servicing Termination Trigger, the Master Servicer shall        
terminate the Servicer as servicer with respect to each Mortgage Loan that is   
(i) 60 or more days delinquent, (ii) in bankruptcy and 60 or more days          
delinquent, (iii) in foreclosure and 60 or more days delinquent or (iv) an REO  
Property, and each Mortgage Loan which becomes 60 or more days delinquent on any
future Payment Date (each such Mortgage Loan, a "Specially Serviced Mortgage    
Loan") and shall cause the Servicer to transfer the servicing with respect to   
each such Mortgage Loan to the Special Servicer in accordance with the terms of 
the Special Servicing Agreement. Anything to the contrary in this Agreement     
notwithstanding, from and after the Effective Date (as defined in the Special   
Servicing Agreement) with respect to the first occurrence of a transfer of      
servicing of any Specially Serviced Mortgage Loan, all references in this       
Agreement to (x) "the Servicer" shall be deemed to include each of HomeBanc     
Corp. as servicer under the HomeBanc Servicing Agreement and the Special        
Servicer, as servicer under the Special Servicing Agreement, (y) "the Servicing 
Agreement" shall refer to each of the HomeBanc Servicing Agreement and the      
Special Servicing Agreement and (z) the "Mortgage Loans" shall mean, with       
respect to the Servicer, the Mortgage Loans other than the Specially Serviced   
Mortgage Loans, and with respect to the Special Servicer, the Specially Serviced
Mortgage Loans; with the result that the Master Servicer shall master service in
accordance with the provisions of this Agreement, the servicing of the Mortgage 
Loans, other than the Specially Serviced Mortgage Loans, by the Servicer and the
servicing of the Specially Serviced Mortgage Loans by the Special Servicer.     

        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 Issuer,    
Noteholders 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 and Liquidation Proceeds, and (iv) to effectuate 
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 Servicing Agreement, as applicable. The Indenture Trustee
shall furnish the Master Servicer, upon written request from a Servicing        
Officer, with any powers of attorney empowering the Master Servicer or the      
Servicer to execute                                                             

EX-99.1
20th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 20th
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 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 use  
or misuse of any such powers of attorney by the Master Servicer or the          
Servicer). 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 Indenture Trustee or that the Indenture 
Trustee would be adversely affected under the "doing business" or tax laws of   
such state if such action is taken in its name, the Master Servicer shall join  
with the Indenture Trustee 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 Issuer or the      
Indenture Trustee, be deemed to be the agent of the Issuer or the Indenture     
Trustee.                                                                        

        Section 3.06 Due-on-Sale Clauses; Assumption Agreements. To the extent
provided in the Servicing Agreement, to the extent Mortgage Loans contain       
enforceable due-on-sale clauses, the Master Servicer shall cause the Servicer to
enforce such clauses in accordance with the 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 Servicing Agreement, and, as a    
consequence, a Mortgage Loan is assumed, the original Mortgagor may be released 
from liability in accordance with the 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 the Servicer of a       
notification that payment in full has been escrowed in a manner customary for   
such purposes for payment to Noteholders on the next Payment Date, the Servicer 
will, if required under the Servicing Agreement, promptly furnish to the        
Indenture Trustee two copies of a certification substantially in the form of    
Exhibit B 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 Protected Account maintained by the Servicer pursuant to the
Servicing Agreement have been so deposited) and shall request that the Indenture
Trustee deliver or cause the Custodian to deliver to the Servicer the related   
Mortgage File. Upon receipt of such certification and request, the Indenture    
Trustee shall promptly release or cause the Custodian to release the related    
Mortgage File to the Servicer and the Indenture Trustee shall have no further   
responsibility with regard to such Mortgage File. Upon any such payment in full,
the Servicer is authorized, to give, as agent for the 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      
Protected Account.                                                              

EX-99.1
21st Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 21st
(b) From time to time and as appropriate for the servicing or 
foreclosure of any Mortgage Loan and in accordance with the Servicing Agreement,
the Indenture Trustee shall execute such documents as shall be prepared and     
furnished to the Indenture Trustee by the 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 shall, upon the      
request of the Servicer or the Master Servicer, and delivery to the Indenture   
Trustee, of two copies of a request for release signed by a Servicing Officer   
substantially in the form of Exhibit B (or in a mutually agreeable electronic   
format which will, in lieu of a signature on its face, originate from a         
Servicing Officer), release or cause the Custodian to release the related       
Mortgage File held in its or the Custodian's possession or control to the       
Servicer or the Master Servicer, as applicable. The Servicer or the Master      
Servicer shall be obligated to return the Mortgage File to the Indenture Trustee
or the Custodian when the need therefor by the Servicer or the Master Servicer, 
as it reasonably determines, 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 to the Servicer or the Master Servicer.  

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

        (a) The Master Servicer shall transmit and the Servicer (to the extent
required by the Servicing Agreement) shall transmit to the Indenture Trustee    
such documents and instruments coming into the possession of the Master Servicer
or the Servicer from time to time as are required by the terms hereof, or in the
case of the Servicer, the Servicing Agreement, to be delivered to the Indenture 
Trustee. Any funds received by the Master Servicer or by the Servicer in respect
of any Mortgage Loan or which otherwise are collected by the Master Servicer or 
by the Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any 
Mortgage Loan shall be held for the benefit of the Issuer and the Indenture     
Trustee subject to the Master Servicer's right to retain or withdraw from the   
Master Servicer Collection Account the Master Servicing Compensation and other  
amounts provided in this Agreement and the right of the Servicer to retain its  
Servicing Fee (and, if the Special Servicer is servicing such Mortgage Loan, the
Special Servicing Fee) and other amounts as provided in the Servicing Agreement.
The Master Servicer shall, and (to the extent provided in the Servicing         
Agreement) shall cause the Servicer to, provide access to information and       
documentation regarding the Mortgage Loans to the Issuer, the Indenture Trustee,
and their respective agents and accountants at any time upon reasonable request 
and during normal business hours, and to Noteholders 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.                                                

     (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  
or Insurance Proceeds, shall be held by the                                     

EX-99.1
22nd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 22nd
Master Servicer for and on behalf of the Issuer, the Indenture Trustee and the  
Noteholders and shall be and remain the sole and exclusive property of the      
Issuer, subject to the pledge to the Indenture Trustee; provided, however, that 
the Master Servicer and the Servicer shall be entitled to setoff against, and   
deduct from, any such funds any amounts that are properly due and payable to the
Master Servicer or the Servicer under this Agreement or the Servicing Agreement.

      Section 3.09 Standard Hazard Insurance and Flood Insurance Policies.

For each Mortgage Loan, the Master Servicer shall enforce any 
obligation of the Servicer under the Servicing Agreement to maintain or cause to
be maintained standard fire and casualty insurance and, where applicable, flood 
insurance, all in accordance with the provisions of the Servicing Agreement. It 
is understood and agreed that such insurance shall be with insurers meeting the 
eligibility requirements set forth in the 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.                           

     (a) Pursuant to Section 4.01 and 4.02, any amounts collected by the
Servicer or the Master Servicer, under any insurance policies (other than       
amounts to be applied to the restoration or repair of the property subject to   
the related Mortgage or released to the Mortgagor in accordance with the        
Servicing Agreement) shall be deposited into the Master Servicer Collection     
Account, subject to withdrawal pursuant to Section 4.02 and 4.03. Any cost      
incurred by the Master Servicer or the 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 distributions to be made to        
Noteholders 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 Servicing Agreement) cause 
the Servicer to prepare and present on behalf of the Issuer, the Indenture      
Trustee and the Noteholders 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 the    
Servicer and remitted to the Master Servicer) in respect of such policies, bonds
or contracts shall be promptly deposited in the Master Servicer 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).                                                                      

      Section 3.11 Maintenance of the Primary Mortgage Insurance Policies.

        (a) The Master Servicer shall not take, or permit the Servicer (to the
extent such action is prohibited under the Servicing Agreement) to take, any    
action that would result in noncoverage under any applicable Primary Mortgage   
Insurance Policy of any loss which, but for the actions of the Master Servicer  
or the Servicer, would have been covered thereunder. The                        

EX-99.1
23rd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 23rd
Master Servicer shall use its best reasonable efforts to cause the Servicer (to 
the extent required under the Servicing Agreement) to keep in force and effect  
(to the extent that the Mortgage Loan requires the Mortgagor to maintain such   
insurance), primary mortgage insurance applicable to each Mortgage Loan in      
accordance with the provisions of this Agreement and the Servicing Agreement, as
applicable. The Master Servicer shall not, and shall not permit the Servicer (to
the extent required under the Servicing Agreement) to, cancel or refuse to renew
any such Primary Mortgage Insurance Policy that is in effect at the date of the 
initial issuance of the Mortgage Note and is required to be kept in force       
hereunder except in accordance with the provisions of this Agreement and the    
Servicing Agreement, as applicable.                                             

         (b) The Master Servicer agrees to present, or to cause the Servicer (to
the extent required under the Servicing Agreement) to present, on behalf of the 
Issuer, the Indenture Trustee and the Noteholders, claims to the insurer under  
any Primary Mortgage Insurance Policies and, in this regard, to take such       
reasonable action as shall be necessary to permit recovery under any Primary    
Mortgage Insurance Policies respecting defaulted Mortgage Loans. Pursuant to    
Section 4.01 and 4.02, any amounts collected by the Master Servicer or the      
Servicer under any Primary Mortgage Insurance Policies shall be deposited in the
Master Servicer Collection Account, subject to withdrawal pursuant to Sections  
4.02 and 4.03.                                                                  

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

    The Indenture Trustee shall retain or shall cause the Custodian to
retain possession and custody of the originals (to the extent available) of any 
Primary Mortgage Insurance Policies, or certificate of insurance if applicable, 
and any certificates of renewal as to the foregoing as may be issued from time  
to time as contemplated by this Agreement. Until all amounts distributable in   
respect of the Notes have been distributed in full and the Indenture has been   
satisfied and discharged in accordance with Section 4.10 of the Indenture, the  
Indenture Trustee shall also retain, or shall cause the Custodian to 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 upon the execution or 
receipt thereof the originals of any Primary Mortgage Insurance Policies, any   
certificates of renewal, and such other documents or instruments that constitute
portions of the Mortgage File that come into the possession of the Master       
Servicer from time to time.                                                     

  Section 3.13 Realization Upon Defaulted Mortgage Loans. For each
Mortgage Loan that comes into and continues in default and as to which no       
satisfactory arrangements can be made for collection of delinquent payments, the
Master Servicer shall cause the Servicer (to the extent required under the      
Servicing Agreement) to either (i) foreclose upon, repossess or otherwise       
comparably convert the ownership of Mortgaged Properties securing such Mortgage 
Loans, all in accordance with the Servicing Agreement or (ii) as an alternative 
to foreclosure, sell such defaulted Mortgage Loans at fair market value to      
third-parties, if the Servicer reasonably believes that such sale would maximize
proceeds to the Trust (on a present value basis) with respect to those Mortgage 
Loans. The Servicer shall be responsible for all costs and expenses incurred by 
it in any such proceedings or sale; provided, however, that such costs and      
expenses will be recoverable as servicing advances by the Servicer as           
contemplated in Section 4.05.                                                   

EX-99.1
24th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 24th
Section 3.14 Compensation for the Master Servicer.            

         On each Payment Date the Master Servicer will be entitled to all income
and gain realized from any investment of funds in the Master Servicer Collection
Account and the Payment Account, pursuant to Article IV, for the performance of 
its activities hereunder (the "Master Servicer Compensation"). Servicing        
compensation in the form of assumption fees, if any, late payment charges, as   
collected, if any, or otherwise (but not including any prepayment premium or    
penalty) shall be retained by the Servicer and shall not be deposited in the    
Protected 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.        

Section 3.15 REO Property.                                    

 (a) In the event the Trust Estate acquires ownership of any REO
Property in respect of any related Mortgage Loan, the deed or certificate of    
sale shall be issued to the Indenture Trustee, or to its nominee, on behalf of  
the Noteholders. The Master Servicer shall, to the extent provided in the       
Servicing Agreement, cause the Servicer to sell any REO Property as             
expeditiously as possible and in accordance with the provisions of the Servicing
Agreement, as applicable. Pursuant to its efforts to sell such REO Property, the
Master Servicer shall cause the Servicer to protect and conserve, such REO      
Property in the manner and to the extent required by the Servicing Agreement.   

        (b) The Master Servicer shall, to the extent required by the Servicing
Agreement, cause the Servicer to deposit all funds collected and received in    
connection with the operation of any REO Property in the Protected Account.     

         (c) The Master Servicer and the Servicer, upon the final disposition of
any REO Property, shall be entitled to reimbursement for any related            
unreimbursed Monthly Advances and other unreimbursed advances as well as any    
unpaid Servicing Fees (and, in the case of the Special Servicer, the Special    
Servicing Fees, if any) from Liquidation Proceeds received in connection with   
the final disposition of such REO Property; provided, that any such unreimbursed
Monthly Advances as well as any unpaid Servicing Fees (and, in the case of the  
Special Servicer, the Special Servicing Fees, if any) 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 Servicing Agreement, the Liquidation
Proceeds from the final disposition of the REO Property, net of any payment to  
the Master Servicer and the Servicer as provided above shall be deposited in the
Protected Account on or prior to the 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 related Master Servicer Collection  
Account on the next succeeding Servicer Remittance Date.                        

Section 3.16 Annual Officer's Certificate as to Compliance.   

    (a) The Master Servicer shall deliver to the Issuer, the Indenture
Trustee and the Rating Agencies on or before March 1 of each year, commencing on
March 1, 2005, an Officer's                                                     

EX-99.1
25th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 25th
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  
Master Servicer during the preceding calendar year or portion thereof and its   
performance under this Agreement, (ii) to the best of such Servicing Officer's  
knowledge, based on such review, such Master Servicer has performed and         
fulfilled its duties, responsibilities and obligations under this Agreement 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 Servicer has failed to perform  
any of its duties, responsibilities and obligations under the Servicing         
Agreement 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.                            

        (b) Copies of such statements shall be provided to any Noteholder upon
request, by the Master Servicer or by the Indenture Trustee at the Master       
Servicer's expense if the Master Servicer failed to provide such copies (unless 
(i) the Master Servicer shall have failed to provide the Indenture Trustee with 
such statement or (ii) the Indenture Trustee shall be unaware of the Master     
Servicer's failure to provide such statement).                                  

       Section 3.17 Annual Independent Accountant's Servicing Report. If the
Master Servicer has, during the course of any fiscal year, directly serviced any
of the Mortgage Loans, then the Master Servicer at its expense shall cause a    
nationally recognized firm of independent certified public accountants to       
furnish a statement to the Issuer, the Indenture Trustee, the Rating Agencies   
and the Depositor on or before March 1 of each year, commencing on March 1, 2005
to the effect that, with respect to the most recently ended fiscal year, such   
firm has examined certain records and documents relating to the Master          
Servicer's performance of its servicing obligations under this Agreement and    
pooling and servicing and trust agreements in material respects similar to this 
Agreement and to each other and that, on the basis of such examination conducted
substantially in compliance with the audit program for mortgages serviced for   
Freddie Mac or the Uniform Single Attestation Program for Mortgage Bankers, such
firm is of the opinion that the Master Servicer's activities have been conducted
in compliance with this Agreement, or that such examination has disclosed no    
material items of noncompliance except for (i) such exceptions as such firm     
believes to be immaterial, (ii) such other exceptions as are set forth in such  
statement and (iii) such exceptions that the Uniform Single Attestation Program 
for Mortgage Bankers or the Audit Program for Mortgages Serviced by Freddie Mac 
requires it to report. Copies of such statements shall be provided to any       
Noteholder upon request by the Master Servicer, or by the Indenture Trustee at  
the expense of the Master Servicer if the Master Servicer shall fail to provide 
such copies. If such report discloses exceptions that are material, the Master  
Servicer shall advise the Indenture Trustee whether such exceptions have been or
are susceptible of cure, and will take prompt action to do so.                  

     Section 3.18 Reports Filed with Securities and Exchange Commission.
Within 15 days after each Payment Date, the Securities Administrator shall, in  
accordance with industry standards, file with the Commission via the Electronic 
Data Gathering and Retrieval System ("EDGAR"), a Form 8-K (or other comparable  
Form containing the same or comparable information or other information mutually
agreed upon) with a copy of the statement to the                                

EX-99.1
26th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 26th
Noteholders for such Payment Date as an exhibit thereto. Prior to January 30 in 
any year, the Securities Administrator shall, in accordance with industry       
standards and only if instructed by the Depositor, file a Form 15 Suspension    
Notice with respect to the Trust Estate, if applicable. Prior to (i) March 15,  
2005 and (ii) unless and until a Form 15 Suspension Notice shall have been      
filed, prior to March 15 of each year thereafter, the Master Servicer shall     
provide the Securities Administrator with a Master Servicer Certification,      
together with a copy of the annual independent accountant's servicing report and
annual statement of compliance of the Servicer, in each case, required to be    
delivered pursuant to the Servicing Agreement, and, if applicable, the annual   
independent accountant's servicing report and annual statement of compliance to 
be delivered by the Master Servicer pursuant to Sections 3.16 and 3.17. Prior to
(i) March 31, 2005, or such earlier filing date as may be required by the       
Commission, and (ii) unless and until a Form 15 Suspension Notice shall have    
been filed, March 31 of each year thereafter, or such earlier filing date as may
be required by the Commission, the Securities Administrator shall file a Form   
10-K, in substance conforming to industry standards, with respect to the Trust. 
Such Form 10-K shall include the Master Servicer Certification and other        
documentation provided by the Master Servicer pursuant to the second preceding  
sentence. The Depositor hereby grants to the Securities Administrator a limited 
power of attorney to execute and file each such document on behalf of the       
Depositor. Such power of attorney shall continue until either the earlier of (i)
receipt by the Securities Administrator from the Depositor of written           
termination of such power of attorney and (ii) the termination of the Trust     
Estate. The Depositor agrees to promptly furnish to the Securities              
Administrator, from time to time upon request, such further information, reports
and financial statements within its control related to this Agreement and the   
Mortgage Loans as the Securities Administrator reasonably deems appropriate to  
prepare and file all necessary reports with the Commission. The Securities      
Administrator shall have no responsibility to file any items other than those   
specified in this Section 3.18; provided, however, the Securities Administrator 
will cooperate with the Depositor and the Issuer in connection with any         
additional filings with respect to the Trust Estate as the Depositor deems      
necessary under the Securities Exchange Act of 1934, as amended (the "Exchange  
Act"). Fees and expenses incurred by the Securities Administrator in connection 
with this Section 3.18 shall not be reimbursable from the Trust Estate.         

         Section 3.19 The Company. On the Closing Date, the Company will receive
from the Depositor a payment of $5,000.                                         

       Section 3.20 UCC. The Depositor shall inform the Indenture Trustee in
writing of any Uniform Commercial Code financing statements that were filed on  
the Closing Date in connection with the Trust Estate with stamped recorded      
copies of such financing statements to be delivered to the Indenture Trustee    
promptly upon receipt by the Depositor. If directed by the Depositor in writing,
the Indenture Trustee will execute any continuation statements and deliver them 
as directed solely at the expense of the Depositor. The Depositor shall file any
financing statements or amendments thereto required by any change in the Uniform
Commercial Code.                                                                

Section 3.21 Optional Purchase of Defaulted Mortgage Loans.   

      (a) With respect to 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, the Servicer (which, notwithstanding Section 3.03(f), for purposes of 
this Section shall only refer to HomeBanc and                                   

EX-99.1
27th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 27th
not the Special Servicer) shall have the right to purchase such Mortgage Loan   
from the Trust Estate at a price equal to the Repurchase 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) If at any time the Servicer remits to the Master Servicer a payment
for deposit in the Master Servicer Collection Account covering the amount of the
Repurchase Price for such a Mortgage Loan, and the Master Servicer provides to  
the Indenture Trustee a certification signed by a Servicing Officer stating that
the amount of such payment has been deposited in the Master Servicer Collection 
Account, then the Indenture Trustee shall execute the assignment of such        
Mortgage Loan to the Servicer, without recourse, representation or warranty and 
the Servicer shall succeed to all of 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.  
The Servicer will thereupon own such Mortgage, and all such security and        
documents, free of any further obligation to the Issuer, the Indenture Trustee  
or the Noteholders with respect thereto.                                        

       Section 3.22 Monthly Advances. If the Scheduled Payment on a Mortgage
Loan that was due on a related Due Date is delinquent other than as a result of 
application of the Relief Act and for which the Servicer was required to make an
advance pursuant to the Servicing Agreement exceeds the amount deposited in the 
Master Servicer Collection Account which will be used for an advance with       
respect to such Mortgage Loan, the Master Servicer will deposit in the Master   
Servicer Collection Account not later than the Payment Account Deposit Date     
immediately preceding the related Payment Date an amount equal to such          
deficiency, net of the Servicing Fee (and, if the Special Servicer is servicing 
such Mortgage Loan, the Special Servicing Fee) for such Mortgage Loan except to 
the extent the Master Servicer determines any such advance to be a              
Nonrecoverable Advance. Subject to the foregoing, the Master Servicer shall     
continue to make such advances through the date that the Servicer is required to
do so under the Servicing Agreement. If the Master Servicer deems an advance to 
be a Nonrecoverable Advance, on the Payment Account Deposit Date, the Master    
Servicer shall present an Officer's Certificate to the Indenture Trustee (i)    
stating that the Master Servicer elects not to make a Monthly Advance in a      
stated amount and (ii) detailing the reason it deems the advance to be a        
Nonrecoverable Advance.                                                         

        Section 3.23 Compensating Interest Payments. The Master Servicer shall
deposit in the Master Servicer Collection Account not later than each Payment   
Account Deposit Date an amount equal to the lesser of (i) the sum of the        
aggregate amounts required to be paid by the Servicer under the Servicing       
Agreement with respect to subclauses (a) and (b) of the definition of Interest  
Shortfalls with respect to the Mortgage Loans for the related Prepayment Period,
and not so paid by the Servicer and (ii) the Master Servicer Compensation for   
such Payment Date (such amount, the "Compensating Interest Payment"). The Master
Servicer shall not be entitled to any reimbursement of any Compensating Interest
Payment.                                                                        

EX-99.1
28th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 28th
ARTICLE IV

Accounts

        Section 4.01 Protected Accounts. (a) The Master Servicer shall enforce
the obligation of the Servicer to establish and maintain a Protected Account in 
accordance with the Servicing Agreement, with records to be kept with respect   
thereto on a Mortgage Loan by Mortgage Loan basis, into which account shall be  
deposited within 48 hours (or as of such other time specified in the Servicing  
Agreement) of receipt, all collections of principal and interest on any Mortgage
Loan and any REO Property received by the Servicer, including Principal         
Prepayments, Insurance Proceeds, Liquidation Proceeds, and advances made from   
the Servicer's own funds (less servicing compensation as permitted by the       
Servicing Agreement in the case of the Servicer) and all other amounts to be    
deposited in the Protected Account. The Servicer is hereby authorized to make   
withdrawals from and deposits to the Protected Account for purposes required or 
permitted by this Agreement. To the extent provided in the Servicing Agreement, 
the Protected Account shall be held by a Designated Depository Institution and  
segregated on the books of such institution in the name of the Indenture Trustee
for the benefit of the Noteholders.                                             

   (b) To the extent provided in the Servicing Agreement, amounts on
deposit in the Protected Account may be invested in Permitted Investments in the
name of the Indenture Trustee for the benefit of Noteholders and, except as     
provided in the preceding paragraph, not commingled with any other funds. Such  
Permitted Investments shall mature, or shall be subject to redemption or        
withdrawal, no later than the date on which such funds are required to be       
withdrawn for deposit in the Master Servicer Collection Account, and shall be   
held until required for such deposit. The income earned from Permitted          
Investments made pursuant to this Section 4.01 shall be paid to the Servicer    
under the Servicing Agreement, and the risk of loss of moneys required to be    
distributed to the Noteholders resulting from such investments shall be borne by
and be the risk of the Servicer. The Servicer (to the extent required by the    
Servicing Agreement) shall deposit the amount of any such loss in the Protected 
Account within two Business Days of receipt of notification of such loss but not
later than the second Business Day prior to the Payment Date on which the moneys
so invested are required to be distributed to the Noteholders.                  

      (c) To the extent required by the Servicing Agreement and subject to
this Article IV, on or before each Servicer Remittance Date, the Servicer shall 
withdraw or shall cause to be withdrawn from its Protected Account and shall    
immediately deposit or cause to be deposited in the Master Servicer 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):                                                              

                (i) Scheduled Payments on the Mortgage Loans received or any
  related portion thereof advanced by the Servicer pursuant to the
       Servicing Agreement which were due on or before the related Due Date,
     net of the amount thereof comprising the Servicing Fee (and, if the
         Special Servicer is servicing such Mortgage Loan, the Special Servicing
   Fee) or any fees with respect to any lender-paid primary mortgage
insurance policy;                                             

EX-99.1
29th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 29th
          (ii) Principal Prepayments in full and any Liquidation
         Proceeds received by the Servicer with respect to the Mortgage Loans in
        the related Prepayment Period, with interest to the date of prepayment
        or liquidation, net of the amount thereof comprising the Servicing Fee
    (and, if the Special Servicer is servicing such Mortgage Loan, the
Special Servicing Fee);                                       

                (iii) Principal Prepayments in part received by the Servicer
for the Mortgage Loans in the related Prepayment Period; and  

    (iv) Any amount to be used as a Monthly Advance.

     (d) Withdrawals may be made from the Protected Account only to make
remittances as provided in Section 4.01(c), 4.02 and 4.03; to reimburse the     
Master Servicer or the Servicer for Monthly Advances which have been recovered  
by subsequent collections 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 7.10. As provided in Sections 4.01(a) 
and 4.02(b) certain amounts otherwise due to the Servicer may be retained by it 
and need not be deposited in the Master Servicer Collection Account.            

 Section 4.02 Master Servicer Collection Account. (a) The Master
Servicer shall establish and maintain in the name of the Indenture Trustee, for 
the benefit of the Noteholders, the Master Servicer Collection Account as a     
segregated trust account or accounts. The Master Servicer Collection Account    
shall be an Eligible Account. The Master Servicer will deposit in the Master    
Servicer Collection Account as identified by the Master Servicer and as received
by the Master Servicer, the following amounts:                                  

         (i) Any amounts withdrawn from the Protected Account;

          (ii) Any Monthly Advance and any Compensating Interest
Payments;                                                     

            (iii) Any Insurance Proceeds or Net Liquidation Proceeds
   received by or on behalf of the Master Servicer or which were not
deposited in the Protected Account;                           

                (iv) The Repurchase Price with respect to any Mortgage Loans
purchased by the Seller pursuant to the Mortgage Loan Purchase
        Agreement or Sections 2.02 or 2.03 hereof, any amounts which are to be
        treated pursuant to Section 2.04 of this Agreement as the payment of a
         Repurchase Price in connection with the tender of a Substitute Mortgage
 Loan by the Seller and the Repurchase Price with respect to any
    Mortgage Loans purchased by the Servicer pursuant to Section 3.21;

            (v) Any amounts required to be deposited with respect to
     losses on investments of deposits in the Master Servicer Collection
Account or Payment Account; and                               

                 (vi) Any other amounts received by or on behalf of the Master
         Servicer and required to be deposited in the Master Servicer Collection
Account pursuant to this Agreement.                           

EX-99.1
30th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 30th
     (b) All amounts deposited to the Master Servicer Collection Account
shall be held by the Master Servicer in the name of the Indenture Trustee in    
trust for the benefit of the Noteholders in accordance with the terms and       
provisions of this Agreement and the Indenture. The requirements for crediting  
the Master Servicer Collection Account or the Payment Account shall be          
exclusive, it being understood and agreed that, without limiting the generality 
of the foregoing, payments in the nature of (i) prepayment or late payment      
charges or assumption, tax service, statement account or payoff, substitution,  
satisfaction, release and other like fees and charges and (ii) the items        
enumerated in Subsections 4.05(a)(i), (ii), (iii), (iv), (vi), (vii), (viii),   
(ix), (x), (xi) and (xii), need not be credited by the Master Servicer or the   
Servicer to the Master Servicer Collection Account or remitted by the Master    
Servicer or Servicer to the Indenture Trustee for deposit in the Payment        
Account, as applicable. In the event that the Master Servicer shall remit or    
cause to be remitted to the Indenture Trustee for deposit to the Payment Account
any amount not required to be credited thereto, the Indenture Trustee, 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 Master Servicer Collection
Account may be invested, in the name of the Indenture Trustee, or its nominee,  
for the benefit of the Noteholders, in Permitted Investments as directed by     
Master Servicer. All Permitted Investments shall mature or be subject to        
redemption or withdrawal on or before, and shall be held until, the next        
succeeding Payment Account Deposit Date. Any and all investment earnings on     
amounts on deposit in the Master Servicer Account from time to time shall be for
the account of the Master Servicer. The Master Servicer from time to time shall 
be permitted to withdraw or receive distribution of any and all investment      
earnings from the Master Servicer Account. The risk of loss of moneys required  
to be distributed to the Noteholders resulting from such investments shall be   
borne by and be the risk of the Master Servicer. The Master Servicer shall      
deposit the amount of any such loss in the Master Servicer Collection Account   
within two Business Days of receipt of notification of such loss but not later  
than the second Business Day prior to the Payment Date on which the moneys so   
invested are required to be distributed to the Noteholders.                     

  Section 4.03 Permitted Withdrawals and Transfers from the Master
Servicer Collection Account. (a) The Master Servicer will, from time to time on 
demand of the Servicer or the Securities Administrator, make or cause to be made
such withdrawals or transfers from the Master Servicer Collection Account as the
Master Servicer has designated for such transfer or withdrawal pursuant to this 
Agreement and the Servicing Agreement. The Master Servicer may clear and        
terminate the Master Servicer Collection Account pursuant to Section 7.10 and   
remove amounts from time to time deposited in error.                            

      (b) On an ongoing basis, the Master Servicer shall withdraw from the
Master Servicer Collection Account (i) any expenses, costs and liabilities      
recoverable by the Master Servicer or the Securities Administrator pursuant to  
Sections 3.03 and 5.04 hereof and Section 6.07 of the Indenture and (ii) any    
amounts payable to the Master Servicer as set forth in Section 3.14; provided   
however, that the Master Servicer shall be obligated to pay from its own funds  
any amounts which it is required to pay under Section 5.03(a).                  

EX-99.1
31st Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 31st
      (c) In addition, on or before each Payment Account Deposit Date, the
Master Servicer shall deposit in the Payment Account any Monthly Advances       
required to be made by the Master Servicer with respect to the Mortgage Loans.  

   (d) No later than 3:00 p.m. New York time on each Payment Account
Deposit Date, the Securities Administrator will transfer all Available Funds on 
deposit in the Master Servicer Collection Account with respect to the related   
Payment Date to the Indenture Trustee for deposit in the Payment Account.       

         Section 4.04 Payment Account. (a) The Indenture Trustee shall establish
and maintain in the name of the Indenture Trustee, for the benefit of the       
Noteholders, the Payment Account as a segregated trust account or accounts.     

       (b) All amounts deposited to the Payment Account shall be held by the
Indenture Trustee in the name of the Indenture Trustee in trust for the benefit 
of the Noteholders in accordance with the terms and provisions of this          
Agreement.                                                                      

       (c) The Payment Account shall constitute a non-interest bearing trust
account of the Trust Estate segregated on the books of the Indenture Trustee and
held by the Indenture Trustee in trust, and the Payment 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 Indenture 
Trustee (whether made directly, or indirectly through a liquidator or receiver  
of the Indenture Trustee). The Payment Account shall be an Eligible Account. The
amount at any time credited to the Payment Account shall be held in cash and    
fully insured by the FDIC to the maximum coverage provided thereby.             

         (d) The amount at any time credited to the Payment Account shall be (i)
held in cash and fully insured by the FDIC to the maximum coverage provided     
thereby or (ii) invested, in the name of the Indenture Trustee, for the benefit 
of the Noteholders, in Permitted Investments as directed by Master Servicer. All
Permitted Investments shall mature or be subject to redemption or withdrawal on 
or before, and shall be held until, the next succeeding Payment Date if the     
obligor for such Permitted Investment is the Indenture Trustee, or if such      
obligor is any other Person, the Business Day preceding such Payment Date. All  
investment earnings on amounts on deposit in the Payment Account or benefit from
funds uninvested therein from time to time shall be for the account of the      
Master Servicer. The Indenture Trustee shall remit all investment earnings from 
the Payment Account to the Master Servicer on each Payment Date. If there is any
loss on a Permitted Investment, the Master Servicer shall remit the amount of   
the loss to the Indenture Trustee who shall deposit such amount in the Payment  
Account.                                                                        

      (e) The Indenture Trustee or its Affiliates are permitted to receive
additional compensation that could be deemed to be in the Indenture Trustee's   
economic self-interest for (i) servicing as investment advisor, administrator,  
shareholder, 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. Such compensation shall not be considered an amount that 
is reimbursable or payable pursuant to Section 4.05.                            

EX-99.1
32nd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 32nd
   Section 4.05 Permitted Withdrawals and Transfers from the Payment
Account. (a) The Indenture Trustee will, from time to time on demand of the     
Master Servicer or the Securities Administrator, make or cause to be made such  
withdrawals or transfers from the Payment Account as the Master Servicer has    
designated for such transfer or withdrawal pursuant to this Agreement and the   
Servicing Agreement or as the Securities Administrator has instructed hereunder 
for the following purposes (limited in the case of amounts due the Master       
Servicer to those not withdrawn from the Master Servicer Collection Account as  
certified by the Securities Administrator in accordance with the terms of this  
Agreement but not in any order of priority):                                    

                (i) to reimburse the Master Servicer or the Servicer for any
       Monthly Advance of its own funds, the right of the Master Servicer or
    the Servicer to reimbursement pursuant to this subclause (i) being
       limited to amounts received on a particular Mortgage Loan (including,
         for this purpose, the Repurchase 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 Monthly Advance was made;                                

              (ii) to reimburse the Master Servicer or the Servicer from
     Insurance Proceeds or Liquidation Proceeds relating to a particular
   Mortgage Loan for amounts expended by the Master Servicer 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 the Servicer from
       Insurance Proceeds relating to a particular Mortgage Loan for insured
       expenses incurred with respect to such Mortgage Loan and to reimburse
      the Master Servicer or the Servicer from Liquidation Proceeds from a
         particular Mortgage Loan for Liquidation Expenses incurred with respect
       to such Mortgage Loan; provided that the Master Servicer shall not be
      entitled to reimbursement for Liquidation Expenses with respect to a
       Mortgage Loan to the extent that (i) any amounts with respect to such
    Mortgage Loan were paid as Excess Liquidation Proceeds pursuant to
       clause (viii) of this Subsection 4.05 (a) to the Master Servicer; and
        (ii) such Liquidation Expenses were not included in the computation of
such Excess Liquidation Proceeds;                             

             (iv) to reimburse the Master Servicer or the Servicer for
      advances of funds (other than Monthly Advances) made with respect to
     the Mortgage Loans, and the right to reimbursement pursuant to this
     subclause being limited to amounts received on the related Mortgage
   Loan (including, for this purpose, the Repurchase Price therefor,
   Insurance Proceeds and Liquidation Proceeds) which represent late
recoveries of the payments for which such advances were made; 

                (v) to reimburse the Master Servicer or the Servicer for any
      Monthly Advance or advance, after a Realized Loss has been allocated
     with respect to the related Mortgage Loan if the Monthly Advance or
   advance has not been reimbursed pursuant to clauses (i) and (iv);

                 (vi) to pay the Master Servicer as set forth in Section 3.14;

EX-99.1
33rd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 33rd
                  (vii) to reimburse the Master Servicer for expenses, costs and
     liabilities incurred by and reimbursable to it pursuant to Sections
       3.03, 5.04(c) and (d), to the extent that the Master Servicer has not
     already reimbursed itself for such amounts from the Master Servicer
Collection Account;                                           

                 (viii) to pay to the Master Servicer, as additional servicing
 compensation, any Excess Liquidation Proceeds to the extent not
retained by the Servicer;                                     

                 (ix) to reimburse or pay the Servicer any such amounts as are
         due thereto under the Servicing Agreement and have not been retained by
  or paid to the Servicer, to the extent provided in the Servicing
Agreement;                                                    

                 (x) to reimburse the Indenture Trustee, the Owner Trustee and
  the Securities Administrator for expenses, costs and liabilities
   incurred by or reimbursable to it pursuant to this Agreement, the
        Indenture and the Trust Agreement, to the extent such amounts have not
        already been paid or reimbursed to such party from the Master Servicer
Collection Account;                                           

  (xi) to remove amounts deposited in error; and

                (xii) to clear and terminate the Payment Account pursuant to
Section 7.10.                                                 

         (b) The Master Servicer shall keep and maintain separate accounting, on
a Mortgage Loan by Mortgage Loan basis, for the purpose of accounting for any   
reimbursement from the Payment Account pursuant to subclauses (i) through (iv)  
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 Payment Account under Section 4.02(b).                   

      (c) On each Payment Date, pursuant to Section 3.05 of the Indenture,
the Indenture Trustee shall distribute the Available Funds to the extent on     
deposit in the Payment Account to the Holders of the Notes, in accordance with  
payment instructions provided to it by the Securities Administrator no later    
than two Business Days prior to such Payment Date, and determined by the        
Securities Administrator in accordance with Section 3.03 of the Indenture.      

EX-99.1
34th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 34th
ARTICLE V 

 The Master Servicer

      Section 5.01 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 5.02 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 Notes or any of the Mortgage Loans and to perform its duties under this     
Agreement.                                                                      

(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.                                                                

       Section 5.03 Indemnification of the Indenture Trustee, Owner Trustee,
the Master Servicer and the Securities Administrator. The Master Servicer agrees
to indemnify the Indenture Trustee, Owner Trustee and Securities Administrator  
(each an "Indemnified Person") for, and to hold them harmless against, any loss,
liability or expense (including reasonable legal fees and disbursements of      
counsel) incurred on their part that may be sustained in connection with,       
arising out of, or relating to, any claim or legal action (including any pending
or threatened claim or legal action) relating to this Agreement, the Indenture, 
the Servicing Agreement, the Assignment Agreement or the Notes or the powers of 
attorney delivered by the Indenture Trustee hereunder (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), the 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 Master Servicer's failure to receive any    
such notice shall not affect an Indemnified Persons' right to indemnification   
hereunder, except to the extent the Master Servicer is materially prejudiced by 
such failure to give notice. This indemnity shall survive the resignation or    
removal of the Indenture Trustee, Owner Trustee, Master Servicer and the        
Securities Administrator and the termination of this Agreement. The Seller      
agrees to indemnify the Owner Trustee for any loss, liability or expense for    
which the Depositor is required to indemnify the Owner Trustee pursuant to      
Section 7.02 of the Trust Agreement, other than (x) any loss liability or       
expense required to be covered by the Master Servicer pursuant to this          

EX-99.1
35th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 35th
Section 5.03 (y) and any loss, liability or expense already paid by the         
Depositor in accordance with Section 7.02 of the Trust Agreement.               

  Section 5.04 Limitations on Liability of the Master Servicer and
Others. Subject to the obligation of the Master Servicer to indemnify the       
Indemnified Persons pursuant to Section 5.03:                                   

     (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 Trust Estate or the Noteholders 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 and any director, officer, employee or agent of
the Master Servicer shall be indemnified by the Trust Estate and held harmless  
thereby against any loss, liability or expense (including reasonable legal fees 
and disbursements of counsel) incurred on their part that may be sustained in   
connection with, arising out of, or related to, any claim or legal action       
(including any pending or threatened claim or legal action) relating to this    
Agreement, the Indenture, the Notes or the Servicing Agreement (except to the   
extent that the Master Servicer is indemnified by the Servicer thereunder),     
other than (i) any such loss, liability or expense 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) any such loss, liability or expense        
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.                                  

         (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 or the Indenture and the rights and duties of the parties     
hereto and the interests of the Noteholders hereunder and thereunder. In such   
event, the legal expenses and costs of such action and any liability resulting  
therefrom shall be expenses, costs and liabilities of the Trust Estate, and the 
Master Servicer shall be entitled to be reimbursed therefor out of the Master   
Servicer Collection Account as provided by Section 4.03. Nothing in this        
Subsection 5.04(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).            

     (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                                                    

EX-99.1
36th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 36th
required to investigate or make recommendations concerning potential liabilities
which the Trust Estate might incur as a result of such course of action by      
reason of the condition of the Mortgaged Properties but shall give written      
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 the Servicer, except as otherwise expressly provided herein.                 

   Section 5.05 Master Servicer Not to Resign. Except as provided in
Section 5.07, 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 Opinion of Counsel  
addressed to the Indenture Trustee and the Issuer to such effect delivered to   
the Indenture Trustee and the Issuer. No such resignation by the Master Servicer
shall become effective until the Company or 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 6.02 hereof. The Indenture Trustee shall notify the     
Rating Agencies of the resignation of the Master Servicer.                      

Section 5.06 Successor Master Servicer. In connection with the
appointment of any successor master servicer or the assumption of the duties of 
the Master Servicer, the Company or the Indenture Trustee may make such         
arrangements for the compensation of such successor master servicer out of      
payments on the Mortgage Loans as the Company or the Indenture Trustee and such 
successor master servicer shall agree. If the successor master servicer does not
agree that such market value is a fair price, such successor master servicer    
shall obtain two quotations of market value from third parties actively engaged 
in the servicing of single-family mortgage loans. Notwithstanding the foregoing,
the compensation payable to a successor master servicer may not exceed the      
compensation which the Master Servicer would have been entitled to retain if the
Master Servicer had continued to act as Master Servicer hereunder.              

  Section 5.07 Sale and Assignment of Master Servicing. The Master
Servicer may sell and assign its rights and delegate its duties and obligations 
in its entirety as Master Servicer under this Agreement and the Company may     
terminate the Master Servicer without cause and select a new Master Servicer;   
provided, however, that: (i) the purchaser or transferee accepting such         
assignment and delegation (a) shall be a Person which shall be qualified (or    
have an Affiliate that is 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 the Indenture Trustee (as evidenced in a    
writing signed by the Indenture Trustee); and (d) shall execute and deliver to  
the Indenture Trustee an agreement, in form and substance reasonably            
satisfactory to the Issuer and 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; (ii) each Rating Agency shall be given prior written      
notice of the identity of the proposed successor to the Master Servicer and each
Rating Agency's rating of the 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                                            

EX-99.1
37th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 37th
and delegation, as evidenced by a letter to such effect delivered to the Master 
Servicer, the Issuer and the Indenture Trustee; (iii) the Master Servicer       
assigning and selling the master servicing shall deliver to the Issuer and the  
Indenture Trustee an Officer's Certificate and an Opinion of Counsel addressed  
to the Issuer and the Indenture Trustee, 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; and (iv)  
in the event the Master Servicer is terminated without cause by the Company, the
Company shall pay the terminated Master Servicer a termination fee equal to     
0.25% of the aggregate Scheduled Principal Balance of the Mortgage Loans at the 
time the master servicing of the Mortgage Loans is transferred to the successor 
Master Servicer. No such assignment or delegation shall affect any liability of 
the Master Servicer arising prior to the effective date thereof.                

EX-99.1
38th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 38th
ARTICLE VI

 Default

        Section 6.01 Master Servicer Events of Default. "Master Servicer Event
of Default," wherever used herein, means any one of the following events        
(whatever the reason for such Master Servicer 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) and only with respect to the        
defaulting Master Servicer:                                                     

                 (i) The Master Servicer fails to cause to be deposited in the
         Payment Account any amount so required to be deposited pursuant to this
      Agreement (other than a Monthly Advance), and 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    

               (ii) The Master Servicer fails to observe or perform in any
        material respect any other material covenants and agreements set forth
         in this Agreement to be performed by it, which covenants and agreements
         materially affect the rights of Noteholders, and such failure continues
    unremedied for a period of 60 days after the date on which written
     notice of such failure, properly 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 the Holders of
     Notes aggregating at least 25% of the Note Principal Balance of the
Notes; or                                                     

                  (iii) There is entered against the Master Servicer a decree or
         order by a court or agency or supervisory authority having jurisdiction
   in the premises for the appointment of a conservator, receiver or
   liquidator in any insolvency, readjustment of debt, marshaling 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 is unstayed and in effect for a period of 60 consecutive days, or
        an involuntary case is commenced against the Master Servicer under any
         applicable insolvency or reorganization statute and the petition is not
 dismissed within 60 days after the commencement of the case; or

             (iv) The Master Servicer consents to the appointment of a
       conservator or receiver or liquidator in any insolvency, readjustment
         of debt, marshaling of assets and liabilities or similar proceedings of
or relating to the Master Servicer or substantially all of its
         property; or the Master Servicer admits in writing its inability to pay
  its debts generally as they become due, files a petition to take
         advantage of any applicable insolvency or reorganization statute, makes
         an assignment for the benefit of its creditors, or voluntarily suspends
payment of its obligations;                                   

              (v) The Master Servicer assigns or delegates its duties or
rights under this Agreement in contravention of the provisions
       permitting such assignment or delegation under Sections 5.05 or 5.07;
or                                                            

EX-99.1
39th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 39th
             (vi) The Master Servicer fails to deposit, or cause to be
     deposited, in the Payment Account any Monthly Advance (other than a
        Nonrecoverable Advance) by 5:00 p.m. New York City time on the Payment
Account Deposit Date.                                         

       In each and every such case, so long as such Master Servicer Event of
Default with respect to the Master Servicer shall not have been remedied, either
the Indenture Trustee or the Holders of Notes aggregating at least 51% of the   
Note Principal Balance of the Notes, by notice in writing to the Master Servicer
(and to the Indenture Trustee if given by such Noteholders), with a copy to the 
Rating Agencies, and with the consent of the Company, may terminate all of the  
rights and obligations (but not the liabilities) of the Master Servicer under   
this Agreement and in and to the Mortgage Loans and/or the REO Property serviced
by the Master Servicer and the proceeds thereof. Upon the receipt by the Master 
Servicer of the written notice, all authority and power of the Master Servicer  
under this Agreement, whether with respect to the Notes, the Mortgage Loans, REO
Property or under any other related agreements (but only to the extent that such
other agreements relate to the Mortgage Loans or related REO Property) shall,   
subject to Section 6.02, automatically and without further action pass to and be
vested in the Indenture Trustee pursuant to this Section 6.01; and, without     
limitation, the Trustee is hereby authorized and empowered to execute and       
deliver, on behalf of the Master Servicer as attorney-in-fact or otherwise, any 
and all documents and other instruments and to do or accomplish all other acts  
or things necessary or appropriate to effect the purposes of such notice of     
termination, whether to complete the transfer and endorsement or assignment of  
the Mortgage Loans and related documents, or otherwise. The Master Servicer     
agrees to cooperate with the Indenture Trustee in effecting the termination of  
the Master Servicer's rights and obligations hereunder, including, without      
limitation, the transfer to the Indenture Trustee of (i) the property and       
amounts which are then or should be part of the Trust Estate or which thereafter
become part of the Trust Estate; and (ii) originals or copies of all documents  
of the Master Servicer reasonably requested by the Indenture Trustee to enable  
it to assume the Master Servicer's duties thereunder. In addition to any other  
amounts which are then, or, notwithstanding the termination of its activities   
under this Agreement, may become payable to the Master Servicer under this      
Agreement, the Master Servicer shall be entitled to receive, out of any amount  
received on account of a Mortgage Loan or related REO Property, that portion of 
such payments which it would have received as reimbursement under this Agreement
if notice of termination had not been given. The termination of the rights and  
obligations of the Master Servicer shall not affect any obligations incurred by 
the Master Servicer prior to such termination.                                  

    Notwithstanding the foregoing, if an Event of Default described in
clause (vi) of this Section 6.01 shall occur of which a Responsible Officer of  
the Indenture Trustee has received written notice or has actual knowledge, the  
Indenture Trustee shall, by notice in writing to the Master Servicer, which may 
be delivered by telecopy, immediately terminate 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 Noteholder or to reimbursement 
of Monthly Advances and other advances of its own funds, and the Indenture      
Trustee shall thereupon become the successor Master Servicer as provided in     
Section 6.02 and carry out the duties of the Master Servicer, including the     
obligation to make any Monthly Advance the nonpayment of which was an Event of  
Default described in clause (vi) of this Section 6.01. Any such action taken by 
the Indenture Trustee must be prior to the distribution on the relevant Payment 
Date.                                                                           

EX-99.1
40th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 40th
      Section 6.02 Indenture Trustee to Act; Appointment of Successor. (a)
Upon the receipt by the Master Servicer of a notice of termination pursuant to  
Section 6.01 or an Opinion of Counsel pursuant to Section 5.05 to the effect    
that the Master Servicer is legally unable to act or to delegate its duties to a
Person which is legally able to act, the Indenture Trustee shall automatically  
become the successor in all respects to the Master Servicer in its capacity     
under this Agreement and the transactions set forth or provided for herein and  
shall thereafter be subject to all the responsibilities, duties, liabilities and
limitations on liabilities relating thereto placed on the Master Servicer by the
terms and provisions hereof; provided, however, that the Seller shall have the  
right to either (a) immediately assume the duties of the Master Servicer or (b) 
select a successor Master Servicer; provided further, however, that the         
Indenture Trustee shall have no obligation whatsoever with respect to any       
liability (including advances deemed recoverable and not previously made with   
respect to the relevant Payment Date giving rise to the Master Servicer Event of
Default which shall be made by such successor Master Servicer ) incurred by the 
Master Servicer at or prior to the time of termination. As compensation         
therefor, but subject to Section 5.06, the Indenture Trustee shall be entitled  
to compensation which the Master Servicer would have been entitled to retain if 
the Master Servicer had continued to act hereunder, except for those amounts due
the Master Servicer as reimbursement permitted under this Agreement for advances
previously made or expenses previously incurred. Notwithstanding the above, the 
Indenture Trustee may, if it shall be unwilling so to act, or shall, if it is   
legally unable so to act, appoint or petition a court of competent jurisdiction 
to appoint, any established housing and home finance institution which is a     
Fannie Mae- or Freddie Mac-approved servicer, and with respect to a successor to
the Master Servicer only, having a net worth of not less than $10,000,000, 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 Indenture Trustee shall obtain a letter from each 
Rating Agency that the ratings, if any, on each of the Notes will not be lowered
as a result of the selection of the successor to the Master Servicer. Pending   
appointment of a successor to the Master Servicer hereunder, the Indenture      
Trustee shall be the successor and act in such capacity as hereinabove provided.
In connection with such appointment and assumption, the Indenture Trustee may   
make such arrangements for the compensation of such successor out of payments on
the Mortgage Loans as it and such successor shall agree; provided, however, that
the provisions of Section 5.06 shall apply, the compensation shall not be in    
excess of that which the Master Servicer would have been entitled to if the     
Master Servicer had continued to act hereunder, and that such successor shall   
undertake and assume the obligations of the Master Servicer to pay compensation 
to any third Person acting as an agent or independent contractor in the         
performance of master servicing responsibilities hereunder. The Indenture       
Trustee and such successor shall take such action, consistent with this         
Agreement, as shall be necessary to effectuate any such succession.             

        (b) If the Indenture Trustee shall succeed to any duties of the Master
Servicer respecting the Mortgage Loans as provided herein, it shall do so in a  
separate capacity and not in its capacity as Indenture Trustee and, accordingly,
the provisions of Article VI of the Indenture shall be inapplicable to the      
Indenture Trustee in its duties as the successor to the Master Servicer in the  
servicing of the Mortgage Loans (although such provisions shall continue to     
apply to the Indenture Trustee in its capacity as Indenture Trustee); the       
provisions of Article V, however, shall apply to it in its capacity as successor
master servicer.                                                                

EX-99.1
41st Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 41st
   Section 6.03 Notification to Noteholders. Upon any termination or
appointment of a successor to the Master Servicer, the Indenture Trustee shall  
give prompt written notice thereof to Noteholders at their respective addresses 
appearing in the Note Register and to the Rating Agencies.                      

       Section 6.04 Waiver of Defaults. The Indenture Trustee shall transmit
by mail to all Noteholders, within 60 days after the occurrence of any Master   
Servicer Event of Default of which a Responsible Officer of the Indenture       
Trustee received written notice or has actual knowledge, unless such Master     
Servicer Event of Default shall have been cured, notice of each such Master     
Servicer Event of Default. The Holders of Notes aggregating at least 51% of the 
Note Principal Balance of the Notes may, on behalf of all Noteholders, waive any
default by the Master Servicer in the performance of its obligations hereunder  
and the consequences thereof, except a default in the making of or the causing  
to be made any required distribution on the Notes, which default may only be    
waived by Holders of Notes aggregating 100% of the Note Principal Balance of the
Notes. Upon any such waiver of a past default, such default shall be deemed to  
cease to exist, and any Master Servicer Event of Default arising therefrom shall
be deemed to have been timely remedied for every purpose of this Agreement. No  
such waiver shall extend to any subsequent or other default or impair any right 
consequent thereon except to the extent expressly so waived. The Indenture      
Trustee shall give notice of any such waiver to the Rating Agencies.            

EX-99.1
42nd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 42nd
 ARTICLE VII

Miscellaneous Provisions

        Section 7.01 Amendment. (a) This Agreement may be amended from time to
time by the Issuer, the Company, the Depositor, the Master Servicer, the        
Securities Administrator and the Indenture Trustee, without notice to or the    
consent of any of the Noteholders, to cure any ambiguity, to correct or         
supplement any provisions herein or therein that may be defective or            
inconsistent with any other provisions herein or therein, to comply with any    
changes in the Code or to make any other provisions with respect to matters or  
questions arising under this Agreement which shall not be inconsistent with the 
provisions of this Agreement; provided, however, that such action shall not, as 
evidenced by an Opinion of Counsel, addressed to the Indenture Trustee,         
adversely affect in any material respect the interests of any Noteholder.       

         (b) This Agreement may also be amended from time to time by the Issuer,
the Company, the Master Servicer, the Depositor, the Securities Administrator   
and the Indenture Trustee, with the consent of the Holders of Notes aggregating 
at least 51% of Note Principal Balance of the Notes, for the purpose of adding  
any provisions to or changing in any manner or eliminating any of the provisions
of this Agreement or of modifying in any manner the rights of the Noteholders;  
provided, however, that no such amendment shall (i) reduce in any manner the    
amount of, or delay the timing of, payments received on Mortgage Loans which are
required to be distributed on any Note without the consent of the Holder of such
Note or (ii) reduce the aforesaid percentage of Notes the Holders of which are  
required to consent to any such amendment, without the consent of the Holders of
all Notes then outstanding. Notwithstanding any other provision of this         
Agreement, for purposes of the giving or withholding of consents pursuant to    
this Section 7.01(b), Notes registered in the name of or held for the benefit of
the Issuer, the Depositor, the Securities Administrator, the Master Servicer, or
the Indenture Trustee or any Affiliate thereof shall be entitled to vote their  
Percentage Interests with respect to matters affecting such Notes.              

       (c) Promptly after the execution of any such amendment, the Indenture
Trustee shall furnish a copy of such amendment or written notification of the   
substance of such amendment to each Noteholder, with a copy to the Rating       
Agencies.                                                                       

    (d) In the case of an amendment under Subsection 7.01(b) above, it
shall not be necessary for the Noteholders to approve the particular form of    
such an amendment. Rather, it shall be sufficient if the Noteholders approve the
substance of the amendment. The manner of obtaining such consents and of        
evidencing the authorization of the execution thereof by Noteholders shall be   
subject to such reasonable regulations as the Indenture Trustee may prescribe.  

    (e) Prior to the execution of any amendment to this Agreement, the
Indenture Trustee shall be entitled to receive and rely upon an Opinion of      
Counsel addressed to the Indenture Trustee stating that the execution of such   
amendment is authorized or permitted by this Agreement. The Indenture Trustee,  
the Master Servicer and the Securities Administrator may, but shall not be      
obligated to, enter into any such amendment which affects its own respective    
rights, duties or immunities under this Agreement.                              

EX-99.1
43rd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 43rd
   Section 7.02 Recordation of Agreement. 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. The Depositor    
shall effect such recordation, at the expense of the Trust Estate upon the      
request in writing of a Noteholder, but only if such direction is accompanied by
an Opinion of Counsel (provided at the expense of the Noteholder requesting     
recordation) to the effect that such recordation would materially and           
beneficially affect the interests of the Noteholders or is required by law.     

   Section 7.03 Governing Law. THIS AGREEMENT AND THE NOTES SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE
TO ITS CONFLICT OF LAWS RULES (OTHER THAN SECTION 5-1401 OF THE GENERAL         
OBLIGATIONS LAW, WHICH THE PARTIES HERETO EXPRESSLY RELY UPON IN THE CHOICE OF  
SUCH LAW AS THE GOVERNING LAW HEREUNDER) AND THE OBLIGATIONS, RIGHTS AND        
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH   
LAWS.                                                                           

     Section 7.04 Notices. All demands and notices hereunder shall be in
writing and shall be deemed given when delivered at (including delivery by      
facsimile) or mailed by registered mail, return receipt requested, postage      
prepaid, or by recognized overnight courier, to (i) in the case of the          
Depositor, 383 Madison Avenue, New York, New York 10179, Attention: Vice        
President-Servicing, telecopier number: (212) 272-5591, or to such other address
as may hereafter be furnished to the other parties hereto in writing; (ii) in   
the case of the Indenture Trustee, at the Corporate Trust Office or such other  
address as may hereafter be furnished to the other parties hereto in writing;   
(iii) in the case of the Company, 383 Madison Avenue, New York, New York 10179, 
Attention: Vice President-Servicing, telecopier number: (212) 272-5591, or to   
such other address as may hereafter be furnished to the other parties hereto in 
writing; (iv) in the case of the Master Servicer or Securities Administrator,   
Wells Fargo Bank, National Association, P.O. Box 98, Columbia Maryland 21046    
(or, in the case of overnight deliveries, 9062 Old Annapolis Road, Columbia,    
Maryland 21045) (Attention: Corporate Trust Services - HomeBanc 2004-2),        
facsimile no.: (410) 715-2380, or such other address as may hereafter be        
furnished to the other parties hereto in writing; or (v) in the case of the     
Issuer, to HomeBanc Mortgage Trust 2004-2 c/o Wilmington Trust Company, Rodney  
Square North, 1100 North Market Street, Wilmington, Delaware 19890, Attention:  
Corporate Trust Administration, or such other address as may hereafter be       
furnished to the other parties hereto in writing; (vi) in the case of the Owner 
Trustee, to Wilmington Trust Company, Rodney Square North, 1100 North Market    
Street, Wilmington, Delaware 19890, Attention: Corporate Trust Administration,  
or such other address as may hereafter be furnished to the other parties hereto 
in writing; and (vii) in the case of the Rating Agencies, Standard & Poor's, a  
division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York
10041 and Moody's Investors Service, Inc., 99 Church Street, New York, New York 
10007. Any notice delivered to the Depositor, the Master Servicer, the          
Securities Administrator, the Indenture Trustee, the Issuer or the Owner Trustee
under this Agreement shall be effective only upon receipt. Any notice required  
or permitted to be mailed to a Noteholder, unless otherwise provided herein,    
shall be given by first-class mail, postage prepaid, at the address of such     
Noteholder as shown in the Note Register. Any notice so mailed                  

EX-99.1
44th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 44th
within the time prescribed in this Agreement shall be conclusively presumed to  
have been duly given when mailed, whether or not the Noteholder receives such   
notice.                                                                         

    Section 7.05 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any   
reason whatsoever held invalid, then such covenants, agreements, provisions or  
terms shall be deemed severed 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 
rights of the Noteholders thereof.                                              

       Section 7.06 Successors and Assigns. The provisions of this Agreement
shall be binding upon the parties hereto, the Noteholders and their respective  
successors and assigns. The Indenture Trustee shall have the right to exercise  
all rights of the Issuer under this Agreement.                                  

    Section 7.07 Article and Section Headings. The article and section
headings herein are for convenience of reference only, and shall not limit or   
otherwise affect the meaning hereof.                                            

     Section 7.08 Counterparts. This Agreement may be executed in two or
more counterparts each of which when so executed and delivered shall be an      
original but all of which together shall constitute one and the same instrument.

     Section 7.09 Notice to Rating Agencies. The Indenture Trustee shall
promptly provide notice to each Rating Agency with respect to each of the       
following of which a Responsible Officer of the Indenture Trustee has actual    
knowledge:                                                                      

          1. Any material change or amendment to this Agreement;

                  2. The occurrence of any Master Servicer Event of Default that
has not been cured;                                           

                 3. The resignation or termination of the Master Servicer, the
Indenture Trustee or the Securities Administrator; and        

        4. Any change in the location of the Master Servicer
Collection Account or the Payment Account.                    

Section 7.10 Termination. The respective obligations and      
responsibilities of the parties hereto created hereby shall terminate upon the  
satisfaction and discharge of the Indenture pursuant to Section 4.10 thereof    
and, if applicable, the optional redemption of the Notes pursuant to Section    
8.07 thereof. In the event that this Agreement is terminated by reason of the   
payment or liquidation of all Mortgage Loans or the disposition of all property 
acquired with respect to all Mortgage Loans under this Section, the Master      
Servicer shall deliver to the Indenture Trustee for deposit in the Payment      
Account all distributable amounts remaining in the Master Servicer Collection   
Account. Upon the presentation and surrender of the Notes, the Indenture Trustee
shall distribute to the remaining Noteholders, pursuant to the written direction
of the Securities Administrator and in accordance with their respective         
interests, all distributable amounts remaining in the Payment Account. Upon     
deposit by the Master Servicer of such distributable amounts, and following such
final Payment Date, the Indenture Trustee shall, or shall cause the             

EX-99.1
45th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 45th
Custodian to, release promptly to the Issuer or its designee the Mortgage Files 
for the remaining Mortgage Loans, and the Master Servicer Collection Account and
the Payment Account shall terminate, subject to the Indenture Trustee's         
obligation to hold any amounts payable to the Noteholders in trust without      
interest pending final distributions pursuant to the Indenture.                 

         Section 7.11 No Petition. Each party to this Agreement by entering into
this Agreement, hereby covenants and agrees that it will not at any time        
institute against the Issuer, or join in any institution against the Issuer, any
bankruptcy proceedings under any United States federal or state bankruptcy or   
similar law in connection with any obligations of the Issuer. This section shall
survive the termination of this Agreement by one year.                          

    Section 7.12 No Recourse. The Master Servicer acknowledges that no
recourse may be had against the Issuer, except as may be expressly set forth in 
this Agreement.                                                                 

  Section 7.13 Additional Terms Regarding Indenture. The Indenture
Trustee shall have only such duties and obligations under this Agreement as are 
expressly set forth herein, and no implied duties on its part shall be read into
this Agreement. In entering into and acting under this Agreement, the Indenture 
Trustee shall be entitled to all of the rights, immunities, indemnities and     
other protections set forth in Article VI of the Indenture.                     

EX-99.1
46th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 46th
 IN WITNESS WHEREOF, the Depositor, the Issuer, the Company, the
Indenture Trustee, the Master Servicer and the Securities Administrator have    
caused their names to be signed hereto by their respective officers thereunto   
duly authorized as of the day and year first above written.                     

                     STRUCTURED ASSET MORTGAGE INVESTMENTS II INC., as
Depositor                   

By:    /s/ Sara Bonesteel   
                            --------------------------------------------------
Name:  Sara Bonesteel       
Title: Vice President       

HOMEBANC MORTGAGE TRUST     
2004-2, as Issuer           

                       By: WILMINGTON TRUST COMPANY, not in its individual
         capacity, but solely as Owner Trustee

  By:    /s/  Heather Williamson
                            --------------------------------------------------
Name:  Heather L. Williamson
     Title: Financial Services Officer

U.S. BANK NATIONAL          
     ASSOCIATION, as Indenture Trustee

By:  /s/ Vaneta Bernard     
                             ---------------------------------------------------
Name:    Vaneta I. Bernard  
Title:   Vice President     

EMC MORTGAGE CORPORATION    

By:    /s/ Dana Dillard     
                            --------------------------------------------------

Name:   Dana Dillard        
 Title:  Senior Vice President

EX-99.1
47th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 47th
                     WELLS FARGO BANK, NATIONAL ASSOCIATION, as Master
Servicer                    

By:    /s/ Stacey Taylor    
                            --------------------------------------------------
Name:  Stacey Taylor        
   Title: Assistant Vice President

                         WELLS FARGO BANK, NATIONAL ASSOCIATION, as Securities
Administrator               

By:    /s/ Stacey Taylor    
                           -------------------------------------------------
Name:  Stacey Taylor        
   Title: Assistant Vice President

EX-99.1
48th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 48th
STATE OF NEW YORK                   )                                           
) ss.:  
COUNTY OF NEW YORK                  )                                           

        On the 29th day of October, 2004 before me, a notary public in and for
said State, personally appeared Baron Silverstein, known to me to be a Vice     
President of Structured Asset Mortgage Investments II Inc., the 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

[Notarial Seal]                                                                 

EX-99.1
49th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 49th
STATE OF DELAWARE            )                                                  
) ss.:                
COUNTY OF WILMINGTON         )                                                  

        On the 29th day of October, 2004 before me, a notary public in and for
said State, personally appeared Heather L. Maier, known to me to be a Financial 
Services Officer of Wilmington Trust Company, the entity that executed the      
within instrument, and also known to me to be the person who executed it on     
behalf of said entity, and acknowledged to me that such entity executed the     
within instrument.                                                              

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.                  

               -------------------------------------
         Notary Public

[Notarial Seal]                                                                 

EX-99.1
50th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 50th
STATE OF MASSACHUSETTS        )                                                 
) ss.:              
COUNTY OF SUFFOLK             )                                                 

        On the 29th day of October, 2004 before me, a notary public in and for
said State, personally appeared Vaneta I. Bernard, known to me to be a Vice     
President of U.S. Bank National Association, the entity that executed the within
instrument, and also known to me to be the person who executed it on behalf of  
said entity, and acknowledged to me that such entity executed the within        
instrument.                                                                     

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.                  

               -------------------------------------
         Notary Public

[Notarial Seal]                                                                 

EX-99.1
51st Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 51st
STATE OF MARYLAND    )                                                          
) ss.:                                
COUNTY OF HOWARD     )                                                          

        On the 29th day of October, 2004 before me, a notary public in and for
said State, personally appeared Stacey Taylor, known to me to be an Assistant   
Vice President of Wells Fargo Bank, National Association, the entity that       
executed the within instrument, and also known to me to be the person who       
executed it on behalf of said entity, and acknowledged to me that such entity   
executed the within instrument.                                                 

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.                  

               -------------------------------------
         Notary Public

[Notarial Seal]                                                                 

EX-99.1
52nd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 52nd
STATE OF MARYLAND        )                                                      
) ss.:                        
COUNTY OF HOWARD         )                                                      

        On the 29th day of October, 2004 before me, a notary public in and for
said State, personally appeared Stacey Taylor, known to me to be an Assistant   
Vice President of Wells Fargo Bank, National Association, the entity that       
executed the within instrument, and also known to me to be the person who       
executed it on behalf of said entity, and acknowledged to me that such entity   
executed the within instrument.                                                 

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.                  

               -------------------------------------
         Notary Public

[Notarial Seal]                                                                 

EX-99.1
53rd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 53rd
STATE OF TEXAS             )                                                    
) ss.:                    
COUNTY OF DALLAS           )                                                    

        On the 29th day of October, 2004 before me, a notary public in and for
said State, personally appeared Dana Dillard, known to me to be an Senior Vice  
President of EMC Mortgage Corporation, the 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

[Notarial Seal]                                                                 

EX-99.1
54th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 54th
                                                               EXHIBIT A

MORTGAGE LOAN SCHEDULE

 [Provided Upon Request]

 A-1

EX-99.1
55th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 55th
                                                             EXHIBIT B

REQUEST FOR RELEASE OF DOCUMENTS

To:      U.S. Bank National Association (the "Indenture Trustee")               
One Federal Street, 3rd Floor                                 
Boston, Massachusetts 02110                                   

JPMorgan Chase Bank (the "Custodian")                         
1111 Fannin Street, 12th Floor                                
Houston, Texas 77002                                          

RE:      Sale and Servicing Agreement, dated as of October 29, 2004 (the "Sale  
      and Servicing Agreement"), among HomeBanc Mortgage Loan Trust 2004-2
as Issuer, Structured Asset Mortgage Investments II Inc., as  
        Depositor, U.S. Bank National Association, as Indenture Trustee, Wells
    Fargo Bank, National Associations, as Securities Administrator and
Master Servicer and EMC Mortgage Corporation, as Seller.      

         In connection with the administration of the Mortgage Loans held by the
Custodian for the benefit of the Indenture Trustee pursuant to the              
above-captioned Sale and Servicing Agreement, we request the release, and hereby
acknowledge receipt, of the Mortgage File for the Mortgage Loan described below,
for the reason indicated.                                                       

Mortgage Loan Number:                                                           
---------------------                                                           

Mortgagor Name, Address & Zip Code:                                             
-----------------------------------                                             

Reason for Requesting Documents (check one):                                    
--------------------------------------------                                    

_____      1.  Mortgage Paid in Full and proceeds have been deposited into the  
Master Servicer Collection Account                

_____      2.  Foreclosure                                                      

_____      3.  Substitution                                                     

_____      4.  Other Liquidation                                                

_____      5.  Nonliquidation                Reason:                            
                                                ------------------------

_____      6.  California Mortgage Loan paid in full                            

 B-1

EX-99.1
56th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 56th
By:                   
                             -------------------------------------------
               (authorized signer)

Issuer:               
                                  --------------------------------------
Address:              
                                   -------------------------------------
Date:                 
                              ------------------------------------------

 B-2

EX-99.1
57th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 57th
                                                                       EXHIBIT C

HOMEBANC SERVICING AGREEMENT

 [Provided Upon Request]

 C-1

EX-99.1
58th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 58th
                                                                       EXHIBIT D

ASSIGNMENT AGREEMENT

 [Provided Upon Request]

 D-1

EX-99.1
59th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 59th
                                                                       EXHIBIT E

MORTGAGE LOAN PURCHASE AGREEMENT

MORTGAGE LOAN PURCHASE AGREEMENT

 between

EMC MORTGAGE CORPORATION

 as Mortgage Loan Seller

 and

 STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.

as Purchaser

 Dated as of

October 29, 2004

 E-1

EX-99.1
60th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 60th
                                                        [Enlarge/Download Table]


                                TABLE OF CONTENTS                                                                  

                                                                                                             Page  
                                                                                                                   
Section 1.Definitions.............................................................................................2

Section 2.Purchase and Sale of the Mortgage Loans and Related Rights..............................................4

Section 3.Mortgage Loan Schedules.................................................................................5

Section 4.Mortgage Loan Transfer..................................................................................5

Section 5.Examination of Mortgage Files...........................................................................6

Section 6.Recordation of Assignments of Mortgage..................................................................9

Section 7.Representations and Warranties of Mortgage Loan Seller Concerning the Mortgage Loans...................10

Section 8.Representations and Warranties Concerning the Mortgage Loan Seller.....................................14

Section 9.Representations and Warranties Concerning the Purchaser................................................15

Section 10.Conditions to Closing.................................................................................17

Section 11.Fees and Expenses.....................................................................................19

Section 12.Accountants' Letters..................................................................................19

Section 13.Indemnification.......................................................................................20

Section 14.Notices...............................................................................................22

Section 15.Transfer of Mortgage Loans............................................................................22

Section 16.Termination...........................................................................................22

Section 17.Representations, Warranties and Agreements to Survive Delivery........................................23

Section 18.Severability..........................................................................................23

Section 19.Counterparts..........................................................................................23

Section 20.Amendment.............................................................................................23

Section 21.GOVERNING LAW.........................................................................................23

Section 22.Further Assurances....................................................................................23

                                       E-2                                                                         

EX-99.1
61st Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 61st
Section 23.Successors and Assigns................................................................................23

Section 24.The Mortgage Loan Seller..............................................................................24

Section 25.Entire Agreement......................................................................................24

Section 26.No Partnership........................................................................................24

EXHIBITS AND SCHEDULE TO
MORTGAGE LOAN PURCHASE AGREEMENT

Exhibit 1.........Contents of Mortgage File                                     
Exhibit 2.........Mortgage Loan Schedule Information                            
Exhibit 3.........Mortgage Loan Seller's Information                            
Exhibit 4.........Purchaser's Information                                       
Exhibit 5.........Schedule of Lost Notes                                        
Exhibit 6.........Standard & Poor's Levels Glossary, Version 5.6 Revised,       
Appendix E                                  
Schedule A........Required Ratings for Each Class of Notes                      
Schedule B........Mortgage Loan Schedule                                        

 E-3

EX-99.1
62nd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 62nd
MORTGAGE LOAN PURCHASE AGREEMENT

             MORTGAGE LOAN PURCHASE AGREEMENT, dated as of October 29,
2004, as amended and supplemented by any and all amendments hereto              
(collectively, the "Agreement"), by and between EMC MORTGAGE CORPORATION, a     
Delaware corporation (the "Mortgage Loan Seller") and STRUCTURED ASSET MORTGAGE 
INVESTMENTS II INC., a Delaware corporation (the "Purchaser").                  

        Upon the terms and subject to the conditions of this
Agreement, the Mortgage Loan Seller agrees to sell, and the Purchaser agrees to 
purchase, certain conventional, first lien mortgage loans secured primarily by  
one- to four-family residential properties and individual condominium units     
(collectively, the "Mortgage Loans") as described herein and the rights with    
respect to each of the Corridor Contracts. The Purchaser has established        
HomeBanc Mortgage Trust 2004-2, a Delaware statutory trust (the "Issuer")       
pursuant to a Trust Agreement, dated as of October 21, 2004, as amended and     
restated on October 29, 2004, among the Purchaser, the Issuer and U.S. Bank     
National Association, as certificate registrar and certificate paying agent. The
Purchaser intends to sell the Mortgage Loans to the Issuer pursuant to a Sale   
and Servicing Agreement, dated as of October 29, 2004 among the Purchaser, the  
Issuer, the Mortgage Loan Seller, U.S. Bank National Association, as indenture  
trustee (the "Indenture Trustee") and Wells Fargo Bank, National Association, as
securities administrator (in such capacity the "Securities Administrator") and  
as master servicer (in such capacity the "Master Servicer"). The Issuer,        
pursuant to an Indenture, dated as of October 29, 2004 (the "Indenture") among  
the Issuer, the Indenture Trustee and the Securities Administrator, intends to  
pledge the Mortgage Loans to the Indenture Trustee and, issue and transfer to   
the Purchaser the HomeBanc Mortgage Trust 2004-2, Mortgage-Backed Notes, Series 
2004-2 and the Certificates issued pursuant to the Trust Agreement (the         
"Certificates"). The Certificates will be transferred by the Purchaser to the   
Mortgage Loan Seller as partial consideration for the sale of the Mortgage      
Loans. The Master Servicer will master service the Mortgage Loans on behalf of  
the Issuer, pursuant to the Sale and Servicing Agreement. Primary servicing of  
the Mortgage Loans will be provided by HomeBanc Corp. (the "Servicer") pursuant 
to a Purchase, Warranties and Servicing Agreement, dated as of July 1, 2004 (the
"HomeBanc Servicing Agreement") between the Mortgage Loan Seller, the Servicer  
and HMB Acceptance Corp., which (other than with respect to certain rights of   
the Mortgage Loan Seller against the Servicer) will be assigned to the Issuer on
the Closing Date.                                                               

            The Purchaser has filed with the Securities and Exchange
Commission (the "Commission") a registration statement on Form S-3 (Number      
333-115122) relating to its Mortgage-Backed Notes and the offering of certain   
series thereof (including certain classes of the Notes) from time to time in    
accordance with Rule 415 under the Securities Act of 1933, as amended, and the  
rules and regulations of the Commission promulgated thereunder (the "Securities 
Act"). Such registration statement, when it became effective under the          
Securities Act, and the prospectus relating to the public offering of certain   
classes of the Notes by the Purchaser (the "Public Offering"), as each may be   
amended or supplemented from time to time pursuant to the Securities Act or     
otherwise, are referred to herein as the "Registration Statement" and the       
"Prospectus," respectively. The "Prospectus Supplement" shall mean that         
supplement, dated October 27, 2004 to the Prospectus, dated May 14, 2004,       
relating to certain classes of the Notes. With respect to the Public Offering of
certain classes of the Notes, the Purchaser, Bear, Stearns                      

E-4 

EX-99.1
63rd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 63rd
& Co. Inc. ("Bear Stearns") and J.P. Morgan Securities Inc. ("J.P. Morgan";     
together with Bear Stearns, the "Underwriters") have entered into a terms       
agreement dated as of October 27, 2004 to an underwriting agreement dated       
December 30, 2003, between the Purchaser and Bear Stearns (collectively, the    
"Underwriting Agreement").                                                      

            Now, therefore, in consideration of the premises and the
mutual agreements set forth herein, the parties hereto agree as follows:        

             Section 1. Definitions. Certain terms are defined herein.
Capitalized terms used herein but not defined herein shall have the meanings    
specified in Appendix A to the Indenture. The following other terms are defined 
as follows:                                                                     

               Acquisition Price: Cash in an amount equal to $______ (plus
$______ in accrued interest) .                                                  

Bear Stearns: Bear, Stearns & Co. Inc.      

Closing Date: October 29, 2004.             

Custodian: JPMorgan Chase Bank.             

Cut-off Date: October 1, 2004.              

Cut-off Date Balance: $897,891,120.         

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

                  Due Date: With respect to each Mortgage Loan, the date in each
month on which its scheduled payment is due if such due date is the first day of
a month and otherwise is deemed to be the first day of the following month or   
such other date specified in the HomeBanc Servicing Agreement.                  

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

              FHLMC:  The Federal Home Loan Mortgage Corporation, or any
successor thereto.                                                              

J.P. Morgan: J.P. Morgan Securities Inc.    

            Master Servicer: Wells Fargo Bank, National Association.

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

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

E-5 

EX-99.1
64th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 64th
                  Moody's: Moody's Investors Service, Inc., or its successors in
interest.                                                                       

               Mortgage:  The  mortgage or deed of trust  creating a first
lien on an  interest  in real  property securing a Mortgage Note.               

                Mortgage File: The items referred to in Exhibit 1 pertaining
to a particular Mortgage Loan and any additional documents required to be added 
to such documents pursuant to this Agreement.                                   

                  Mortgage Interest Rate: The annual rate of interest borne by a
Mortgage Note as stated therein.                                                

 Mortgagor: The obligor(s) on a Mortgage Note.

                Net Rate: For each Mortgage Loan, the Mortgage Interest Rate
for such Mortgage Loan less the sum of (x) the Servicing Fee Rate and (y) the   
Special Servicing Fee Rate, if any, in each case expressed as a per annum rate. 

                Opinion of Counsel: A written opinion of counsel, who may be
counsel for the Mortgage Loan Seller or the Purchaser, reasonably acceptable to 
the Indenture Trustee.                                                          

       Person: Any legal person, including any individual,
corporation, partnership, joint venture, association, joint stock company,      
trust, unincorporated organization or government or any agency or political     
subdivision thereof.                                                            

             Purchase Price: With respect to any Mortgage Loan (or any
property acquired with respect thereto) required to be repurchased by the       
Mortgage Loan Seller pursuant to this Agreement, an amount equal to the sum of  
(i)(a) 100% of the Outstanding Principal Balance of such Mortgage Loan as of the
date of repurchase (or if the related Mortgaged Property was acquired with      
respect thereto, 100% of the Outstanding Principal Balance at the date of the   
acquisition), plus (b) accrued but unpaid interest on the Outstanding Principal 
Balance at the related Mortgage Interest Rate, through and including the last   
day of the month of repurchase, plus (c) any unreimbursed Monthly Advances and  
servicing advances payable to the Servicer with respect to such Mortgage Loan   
and (ii) any costs and damages (if any) incurred by the Trust in connection with
any violation of such Mortgage Loan of any predatory lending laws.              

          Rating Agencies: Standard & Poor's and Moody's, each a
"Rating Agency."                                                                

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

              Security Instrument: A written instrument creating a valid
first lien on a Mortgaged Property securing a Mortgage Note, which may be any   
applicable form of mortgage, deed of trust, deed to secure debt or security     
deed, including any riders or addenda thereto.                                  

           Standard & Poor's: Standard & Poor's, a division of The
McGraw-Hill Companies, Inc. or its successors in interest.                      

E-6 

EX-99.1
65th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 65th
               Substitute Mortgage Loan: A mortgage loan substituted for a
Deleted Mortgage Loan, which is tendered to the Indenture Trustee or the        
Custodian on its behalf pursuant to this Agreement and Section 2.04 of the Sale 
and Servicing Agreement, (i) which has an Outstanding Principal Balance not     
greater nor materially less than the Mortgage Loan for which it is to be        
substituted; (ii) which has a Mortgage Interest Rate and Net Rate not less than,
and not materially greater than, such Mortgage Loan; (iii) which has a maturity 
date not materially earlier or later than such Mortgage Loan and not later than 
the latest maturity date of any Mortgage Loan; (iv) which is of the same        
property type and occupancy type as such Mortgage Loan; (v) which has a         
Loan-to-Value Ratio not greater than the Loan-to-Value Ratio of such Mortgage   
Loan; (vi) which is current in payment of principal and interest as of the date 
of substitution; (vii) as to which the payment terms do not vary in any material
respect from the payment terms of the Mortgage Loan for which it is to be       
substituted and (viii) which has a Gross Margin, Periodic Rate Cap and Maximum  
Lifetime Mortgage Rate no less than those of such Mortgage Loan, has the same   
Index and interval between Interest Adjustment Dates as such Mortgage Loan, and 
a Minimum Lifetime Mortgage Rate no lower than that of such Mortgage Loan. Upon 
such substitution, such mortgage loan shall be a "Mortgage Loan" hereunder.     

             Value: The value of the Mortgaged Property at the time of
origination of the related Mortgage Loan, such value being the lesser of (i) the
value of such property set forth in an appraisal accepted by the applicable     
originator of the Mortgage Loan or (ii) the sales price of such property at the 
time of origination.                                                            

                  Section 2. Purchase and Sale of the Mortgage Loans and Related
Rights. (a) Upon satisfaction of the conditions set forth in Section 10 hereof, 
the Mortgage Loan Seller agrees to sell, and the Purchaser agrees to purchase   
Mortgage Loans having an aggregate outstanding principal balance as of the      
Cut-off Date equal to the Cut-off Date Balance and each of the Corridor         
Contracts.                                                                      

             (b) The closing for the purchase and sale of the Mortgage
Loans and the Corridor Contracts and the closing for the issuance of the Notes  
will take place on the Closing Date at the office of the Purchaser's counsel in 
New York, New York or such other place as the parties shall agree.              

            (c) Upon the satisfaction of the conditions set forth in
Section 10 hereof, on the Closing Date, the Purchaser shall pay to the Mortgage 
Loan Seller the Acquisition Price for the Mortgage Loans and the Corridor       
Contracts in immediately available funds by wire transfer to such account or    
accounts as shall be designated by the Mortgage Loan Seller and shall deliver   
the Certificates to, or at the direction of, the Mortgage Loan Seller.          

             (d) In addition to the foregoing, on the Closing Date the
Mortgage Loan Seller assigns to the Purchaser all of its right, title and       
interest in the HomeBanc Servicing Agreement (other than its right to enforce   
the representations and warranties set forth therein).                          

                Section 3. Mortgage Loan Schedules. The Mortgage Loan Seller
agrees to provide to the Purchaser as of the date hereof a preliminary listing  
of the Mortgage Loans (the "Preliminary Mortgage Loan Schedule") setting forth  
the information listed on Exhibit 2 to this Agreement with respect to each of   
the Mortgage Loans being sold by the Mortgage Loan Seller.                      

E-7 

EX-99.1
66th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 66th
If there are changes to the Preliminary Mortgage Loan Schedule, the Mortgage    
Loan Seller shall provide to the Purchaser as of the Closing Date a final       
schedule (the "Final Mortgage Loan Schedule") setting forth the information     
listed on Exhibit 2 to this Agreement with respect to each of the Mortgage Loans
being sold by the Mortgage Loan Seller to the Purchaser. The Final Mortgage Loan
Schedule shall be delivered to the Purchaser on the Closing Date, shall be      
attached to an amendment to this Agreement to be executed on the Closing Date by
the parties hereto and shall be in form and substance mutually agreed to by the 
Mortgage Loan Seller and the Purchaser (the "Amendment"). If there are no       
changes to the Preliminary Mortgage Loan Schedule, the Preliminary Mortgage Loan
Schedule shall be the Final Mortgage Loan Schedule for all purposes hereof.     

Section 4.        Mortgage Loan Transfer.   

                (a) The Purchaser will be entitled to all scheduled payments
of principal and interest on the Mortgage Loans due after the Cut-off Date      
(regardless of when actually collected) and all payments thereon, other than    
scheduled principal and interest due on or before the Cut-off Date but received 
after the Cut-off Date. The Mortgage Loan Seller will be entitled to all        
scheduled payments of principal and interest on the Mortgage Loans due on or    
before the Cut-off Date (including payments collected after the Cut-off Date)   
and all payments thereon, other than scheduled principal and interest due after 
the Cut-off Date but received on or before the Cut-off Date. Such principal     
amounts and any interest thereon belonging to the Mortgage Loan Seller as       
described above will not be included in the aggregate outstanding principal     
balance of the Mortgage Loans as of the Cut-off Date as set forth on the Final  
Mortgage Loan Schedule.                                                         

         (b) Pursuant to the Sale and Servicing Agreement, the
Purchaser will sell, assign and transfer on the Closing Date all of its right,  
title and interest in and to the Mortgage Loans to the Issuer and, pursuant to  
the Indenture, the Issuer will assign all of its right, title and interest to   
the Mortgage Loans to the Indenture Trustee for the benefit of the              
Securityholders, to secure the Notes issued pursuant to the Indenture. In       
connection with such transfers and assignments of the Mortgage Loans, the       
Mortgage Loan Seller has delivered or will deliver or cause to be delivered to  
the Indenture Trustee, or the Custodian on its behalf, by the Closing Date or   
such later date as is agreed to by the Purchaser and the Mortgage Loan Seller   
(each of the Closing Date and such later date is referred to as a "Mortgage File
Delivery Date"), the items of each Mortgage File, provided, however, that in    
lieu of the foregoing, the Mortgage Loan Seller may deliver the following       
documents, under the circumstances set forth below: (w) in lieu of the original 
Security Instrument (including the Mortgage), assignments to the Indenture      
Trustee or intervening assignments thereof which have been delivered, are being 
delivered or will, upon receipt of recording information relating to such       
documents required to be included thereon, be delivered to recording offices for
recording and have not been returned to the Mortgage Loan Seller in time to     
permit their delivery as specified above, the Mortgage Loan Seller may deliver a
true copy thereof with a certification by the Mortgage Loan Seller, or its agent
on its behalf, substantially to the effect that such copy is a true and correct 
copy of the original; (x) in lieu of the Security Instrument, assignments to the
Indenture Trustee or intervening assignments thereof, if the applicable         
jurisdiction retains the originals of such documents (as evidenced by a         
certification from the Mortgage Loan Seller to such effect) the Mortgage Loan   
Seller may deliver photocopies of such documents containing an original         
certification by the judicial or other governmental authority of the            
jurisdiction where such                                                         

E-8 

EX-99.1
67th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 67th
documents were recorded; (y) in lieu of the Mortgage Notes relating to the      
Mortgage Loans, each identified in the list delivered by the Purchaser to the   
Indenture Trustee on the Closing Date and attached hereto as Exhibit 5, the     
Mortgage Loan Seller may deliver lost note affidavits and indemnities of the    
Mortgage Loan Seller; and (z) the Mortgage Loan Seller shall not be required to 
deliver intervening assignments or Mortgage Note endorsements between the       
related Underlying Seller and the Mortgage Loan Seller, between the Mortgage    
Loan Seller and the Depositor, between the Depositor and the Issuer and between 
the Issuer and the Indenture Trustee; and provided further, however, that in the
case of Mortgage Loans which have been prepaid in full after the Cut-off Date   
and prior to the Closing Date, the Mortgage Loan Seller, in lieu of delivering  
the above documents, may deliver to the Indenture Trustee and the Custodian a   
certification by the Mortgage Loan Seller or the Master Servicer to such effect 
and shall deposit all amounts paid in respect of such Mortgage Loans in the     
Master Servicer Collection Account on the Closing Date. The Mortgage Loan Seller
shall deliver such original documents (including any original documents as to   
which certified copies had previously been delivered) or such certified copies  
to the Indenture Trustee promptly after they are received. The Mortgage Loan    
Seller shall cause the Mortgage and intervening assignments, if any, and the    
assignment of the Security Instrument to be recorded not later than 180 days    
after the Closing Date, unless such assignment is not required to be recorded   
under the terms set forth in Section 6(a) hereof.                               

              (c) In connection with the assignment of any Mortgage Loan
registered on the MERS(R) System, the Mortgage Loan Seller further agrees that  
it will cause, at the Mortgage Loan Seller's own expense, within 30 days after  
the Closing Date, the MERS(R) System to indicate that such Mortgage Loans have  
been assigned by the Mortgage Loan Seller to the Purchaser, by the Purchaser to 
the Issuer and by the Issuer to the Indenture Trustee in accordance with this   
Agreement for the benefit of the Noteholders by including (or deleting, in the  
case of Mortgage Loans which are repurchased in accordance with this Agreement) 
in such computer files (a) the code in the field which identifies the specific  
Indenture Trustee and (b) the code in the field "Pool Field" which identifies   
the series of the Notes issued in connection with such Mortgage Loans. The      
Mortgage Loan Seller further agrees that it will not, and will not permit any   
Servicer or the Master Servicer to, and the Master Servicer agrees that it will 
not, alter the codes referenced in this paragraph with respect to any Mortgage  
Loan during the term of the Indenture unless and until such Mortgage Loan is    
repurchased in accordance with the terms of the Sale and Servicing Agreement.   

              (d) The Mortgage Loan Seller and the Purchaser acknowledge
hereunder that all of the Mortgage Loans and the related servicing will         
ultimately be assigned to U.S. Bank National Association, as Indenture Trustee  
on behalf of the Noteholders, on the date hereof.                               

    Section 5.        Examination of Mortgage Files.

                  (a) On or before the Mortgage File Delivery Date, the Mortgage
Loan Seller will have made the Mortgage Files available to the Purchaser or its 
agent for examination which may be at the offices of the Indenture Trustee or   
the Mortgage Loan Seller and/or the Mortgage Loan Seller's custodian. The fact  
that the Purchaser or its agent has conducted or has failed to conduct any      
partial or complete examination of the Mortgage Files shall not affect the      
Purchaser's rights to demand cure, repurchase, substitution or other relief as  
provided in this Agreement. In furtherance of the foregoing, the Mortgage Loan  
Seller shall make the Mortgage                                                  

E-9 

EX-99.1
68th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 68th
Files available to the Purchaser or its agent from time to time so as to permit 
the Purchaser to confirm the Mortgage Loan Seller's compliance with the delivery
and recordation requirements of this Agreement and the Sale and Servicing       
Agreement. In addition, upon request of the Purchaser, the Mortgage Loan Seller 
agrees to provide to the Purchaser, the Underwriters and to any investors or    
prospective investors in the Notes information regarding the Mortgage Loans and 
their servicing, to make the Mortgage Files available to the Purchaser, the     
Underwriters and to such investors or prospective investors (which may be at the
offices of the Mortgage Loan Seller and/or the Mortgage Loan Seller's custodian)
and to make available personnel knowledgeable about the Mortgage Loans for      
discussions with the Purchaser, the Underwriters and such investors or          
prospective investors, upon reasonable request during regular business hours,   
sufficient to permit the Purchaser, the Underwriters and such investors or      
potential investors to conduct such due diligence as any such party reasonably  
believes is appropriate.                                                        

                (b) Pursuant to the Custodial Agreement, on the Closing Date
the Custodian, on behalf of the Indenture Trustee, for the benefit of the       
Noteholders, will acknowledge receipt of each Mortgage Loan, by delivery to the 
Mortgage Loan Seller, the Purchaser and the Issuer of an initial certification  
in the form attached as Exhibit One to the Custodial Agreement.                 

                  (c) Pursuant to the Custodial Agreement, within 90 days of the
Closing Date (or, with respect to any Substitute Mortgage Loan, within five     
Business Days after the receipt by the Indenture Trustee or Custodian thereof), 
the Custodian will review items of the Mortgage Files as set forth on Exhibit 1 
and will deliver to the Mortgage Loan Seller, the Purchaser and the Indenture   
Trustee an interim certification substantially in the form of Exhibit Two to the
Custodial Agreement. If the Indenture Trustee or Custodian, as its agent, finds 
any document listed on Exhibit 1 has not been executed or received, or is       
unrelated, determined on the basis of the Mortgagor name, original principal    
balance and loan number, to the Mortgage Loans identified in the Final Mortgage 
Loan Schedule does not conform on its face to review criteria specified in      
Section 2.01 of the Sale and Servicing Agreement (a "Material Defect"), the     
Indenture Trustee in accordance with the Sale and Servicing Agreement or the    
Custodian, as its agent, shall promptly notify the Mortgage Loan Seller of such 
Material Defect. The Mortgage Loan Seller shall correct or cure any such        
Material Defect within 90 days from the date of notice from the Indenture       
Trustee or the Custodian, as its agent, of the Material Defect and if the       
Mortgage Loan Seller fails to correct or cure such Material Defect within such  
period and such defect materially and adversely affects the interests of the    
Noteholders in the related Mortgage Loan, the Mortgage Loan Seller will, in     
accordance with the terms of the Sale and Servicing Agreement, within 90 days of
the date of notice, provide the Indenture Trustee with a Substitute Mortgage    
Loan or purchase the related Mortgage Loan at the applicable Purchase Price;    
provided, however, that if such Material Defect relates solely to the inability 
of the Mortgage Loan Seller to deliver the original Security Instrument or      
intervening assignments thereof, or a certified copy because the originals of   
such documents, or a certified copy, have not been returned by the applicable   
jurisdiction, the Mortgage Loan Seller shall not be required to purchase such   
Mortgage Loan if the Mortgage Loan Seller delivers such original documents or   
certified copy promptly upon receipt, but in no event later than 360 days after 
the Closing Date. The foregoing repurchase obligation shall not apply in the    
event that the Mortgage Loan Seller cannot deliver such original or copy of any 
document submitted for recording to the appropriate recording office in the     
applicable jurisdiction because such document has not been returned by such     
office; provided that the Mortgage Loan Seller shall instead deliver a recording
receipt of                                                                      

E-10

EX-99.1
69th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 69th
such recording office or, if such receipt is not available, a certificate       
confirming that such documents have been accepted for recording, and delivery to
the Indenture Trustee or the Custodian, as its agent, shall be effected by the  
Mortgage Loan Seller within thirty days of its receipt of the original recorded 
document.                                                                       

               (d) Pursuant to the Custodial Agreement, within 180 days of
the Closing Date (or, with respect to any Substitute Mortgage Loan, within five 
Business Days after the receipt by the Indenture Trustee or Custodian thereof)  
the Custodian will review items of the Mortgage Files as set forth on Exhibit 1 
and will deliver to the Mortgage Loan Seller, the Purchaser, the Issuer and the 
Indenture Trustee a final certification substantially in the form of Exhibit    
Three to the Custodial Agreement. If the Indenture Trustee or Custodian, as its 
agent, finds a Material Defect, the Indenture Trustee or the Custodian, as its  
agent, shall promptly notify the Mortgage Loan Seller of such Material Defect.  
The Mortgage Loan Seller shall correct or cure any such Material Defect within  
90 days from the date of notice from the Indenture Trustee or the Custodian, as 
its agent, of the Material Defect and if the Mortgage Loan Seller fails to      
correct or cure such Material Defect within such period and such defect         
materially and adversely affects the interests of the Noteholders in the related
Mortgage Loan, the Mortgage Loan Seller will, in accordance with the terms of   
the Sale and Servicing Agreement, within 90 days of the date of notice, provide 
the Indenture Trustee with a Substitute Mortgage Loan or purchase the related   
Mortgage Loan at the applicable Purchase Price; provided, however, that if such 
Material Defect relates solely to the inability of the Mortgage Loan Seller to  
deliver the original Security Instrument or intervening assignments thereof, or 
a certified copy because the originals of such documents, or a certified copy,  
have not been returned by the applicable jurisdiction, the Mortgage Loan Seller 
shall not be required to purchase such Mortgage Loan if the Mortgage Loan Seller
delivers such original documents or certified copy promptly upon receipt, but in
no event later than 360 days after the Closing Date. The foregoing repurchase   
obligation shall not apply in the event that the Mortgage Loan Seller cannot    
deliver such original or copy of any document submitted for recording to the    
appropriate recording office in the applicable jurisdiction because such        
document has not been returned by such office; provided that the Mortgage Loan  
Seller shall instead deliver a recording receipt of such recording office or, if
such receipt is not available, a certificate confirming that such documents have
been accepted for recording, and delivery to the Indenture Trustee or the       
Custodian, as its agent, shall be effected by the Mortgage Loan Seller within   
thirty days of its receipt of the original recorded document.                   

                 (e) At the time of any substitution, the Mortgage Loan Seller
shall deliver or cause to be delivered the Substitute Mortgage Loan, the related
Mortgage File and any other documents and payments required to be delivered in  
connection with a substitution pursuant to the Sale and Servicing Agreement. At 
the time of any purchase or substitution, the Indenture Trustee in accordance   
with the terms of the Sale and Servicing Agreement shall (i) assign to the      
Mortgage Loan Seller and cause the Custodian to release the documents           
(including, but not limited to, the Mortgage, Mortgage Note and other contents  
of the Mortgage File) in the possession of the Custodian relating to the Deleted
Mortgage Loan and (ii) execute and deliver such instruments of transfer or      
assignment, in each case without recourse, as shall be necessary to vest in the 
Mortgage Loan Seller title to such Deleted Mortgage Loan.                       

             Section 6.        Recordation of Assignments of Mortgage.

E-11

EX-99.1
70th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 70th
               (a) The Mortgage Loan Seller shall cause each assignment of
the Security Instrument from the Mortgage Loan Seller to the Indenture Trustee  
to be recorded not later than 180 days after the Closing Date, unless (a) such  
recordation is not required by the Rating Agencies or an Opinion of Counsel has 
been provided to the Indenture Trustee (with a copy to the Custodian) which     
states that the recordation of such assignments is not necessary to protect the 
interests of the Noteholders in the related Mortgage Loans or (b) MERS is       
identified on the Mortgage or a properly recorded assignment of the Mortgage, as
the Mortgagee of record solely as nominee for the Mortgage Loan Seller and its  
successors and assigns; provided, however, notwithstanding the foregoing, each  
assignment shall be submitted for recording by the Mortgage Loan Seller in the  
manner described above, at no expense to the Issuer or the Indenture Trustee,   
upon the earliest to occur of (i) reasonable direction by the Holders of Notes  
aggregating at least 25% of the Note Principal Balance of the Notes, (ii) the   
occurrence of a Master Servicer Event of Default or an Event of Default, (iii)  
the occurrence of a bankruptcy, insolvency or foreclosure relating to the       
Mortgage Loan Seller and (iv) the occurrence of a servicing transfer as         
described in Section 6.02 of the Sale and Servicing Agreement.                  

                While each such Mortgage or assignment is being recorded, if
necessary, the Mortgage Loan Seller shall leave or cause to be left with the    
Indenture Trustee a certified copy of such Mortgage or assignment. All customary
recording fees and reasonable expenses relating to the recordation of the       
assignments of mortgage to the Indenture Trustee or the Opinion of Counsel, as  
the case may be, shall be borne by the Mortgage Loan Seller.                    

               (b) It is the express intent of the parties hereto that the
conveyance of the Mortgage Loans by the Mortgage Loan Seller to the Purchaser,  
as contemplated by this Agreement be, and be treated as, a sale. It is, further,
not the intention of the parties that such conveyance be deemed a pledge of the 
Mortgage Loans by the Mortgage Loan Seller to the Purchaser to secure a debt or 
other obligation of the Mortgage Loan Seller. However, in the event that,       
notwithstanding the intent of the parties, the Mortgage Loans are held by a     
court to continue to be property of the Mortgage Loan Seller, then (a) this     
Agreement shall also be deemed to be a security agreement within the meaning of 
Articles 8 and 9 of the applicable Uniform Commercial Code; (b) the transfer of 
the Mortgage Loans provided for herein shall be deemed to be a grant by the     
Mortgage Loan Seller to the Purchaser of a security interest in all of the      
Mortgage Loan Seller's right, title and interest in and to the Mortgage Loans   
and all amounts payable to the holders of the Mortgage Loans in accordance with 
the terms thereof and all proceeds of the conversion, voluntary or involuntary, 
of the foregoing into cash, instruments, securities or other property, to the   
extent the Purchaser would otherwise be entitled to own such Mortgage Loans and 
proceeds pursuant to Section 4 hereof, including all amounts, other than        
investment earnings, from time to time held or invested in any accounts created 
pursuant to the Indenture or the Sale and Servicing Agreement, whether in the   
form of cash, instruments, securities or other property; (c) the possession by  
the Purchaser, the Issuer or the Indenture Trustee 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" for    
purposes of perfecting the security interest pursuant to Section 9-313 (or      
comparable provision) of the applicable Uniform Commercial Code; 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 Purchaser for the      
purpose of                                                                      

E-12

EX-99.1
71st Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 71st
perfecting such security interest under applicable law. Any assignment of the   
interest of the Purchaser pursuant to any provision hereof or pursuant to the   
Sale and Servicing Agreement and any subsequent assignment pursuant to the      
Indenture shall also be deemed to be an assignment of any security interest     
created hereby. The Mortgage Loan Seller and the Purchaser shall, to the extent 
consistent with this Agreement, take such actions as may be reasonably necessary
to ensure that, if this Agreement were deemed to create a security interest in  
the Mortgage Loans, such security interest would be deemed to be a perfected    
security interest of first priority under applicable law and will be maintained 
as such throughout the term of the Indenture.                                   

              Section 7. Representations and Warranties of Mortgage Loan
Seller Concerning the Mortgage Loans. The Mortgage Loan Seller hereby represents
and warrants to the Purchaser as of the Closing Date or such other date as may  
be specified below with respect to each Mortgage Loan being sold by it:         

               (i) the information set forth in the Mortgage Loan Schedule
hereto is true and correct in all material respects and the information provided
to the Rating Agencies, including the Mortgage Loan level detail, is true and   
correct according to the Rating Agencies' requirements;                         

                (ii) immediately prior to the transfer to the Purchaser, the
Mortgage Loan Seller was the sole owner of beneficial title and holder of each  
Mortgage and Mortgage Note relating to the Mortgage Loans and is conveying the  
same free and clear of any and all liens, claims, encumbrances, participation   
interests, equities, pledges, charges or security interests of any nature and   
the Mortgage Loan Seller has full right and authority to sell or assign the same
pursuant to this Agreement;                                                     

                (iii) Each Mortgage Loan at the time it was made complied in
all material respects with all applicable laws and regulations, including,      
without limitation, usury, equal credit opportunity, disclosure and recording   
laws and all predatory lending laws; and each Mortgage Loan has been serviced in
all material respects in accordance with all applicable laws and regulations,   
including, without limitation, usury, equal credit opportunity, disclosure and  
recording laws and all predatory lending laws and the terms of the related      
Mortgage Note, the Mortgage and other loan documents;                           

                 (iv) there is no monetary default existing under any Mortgage
or the related Mortgage Note and there is no material event which, with the     
passage of time or with notice and the expiration of any grace or cure period,  
would constitute a default, breach or event of acceleration; and neither the    
Mortgage Loan Seller, any of its affiliates nor any servicer of any related     
Mortgage Loan has taken any action to waive any default, breach or event of     
acceleration; no foreclosure action is threatened or has been commenced with    
respect to the Mortgage Loan;                                                   

                (v) the terms of the Mortgage Note and the Mortgage have not
been impaired, waived, altered or modified in any respect, except by written    
instruments, (i) if required by law in the jurisdiction where the Mortgaged     
Property is located, or (ii) to protect the interests of the Indenture Trustee  
on behalf of the Noteholders;                                                   

E-13

EX-99.1
72nd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 72nd
          (vi) no selection procedure reasonably believed by the
Mortgage Loan Seller to be adverse to the interests of the Noteholders was      
utilized in selecting the Mortgage Loans;                                       

                (vii) each Mortgage is a valid and enforceable first lien on
the property securing the related Mortgage Note and each Mortgaged Property is  
owned by the Mortgagor in fee simple (except with respect to common areas in the
case of condominiums, PUDs and de minimis PUDs) or by leasehold for a term      
longer than the term of the related Mortgage, subject only to (i) the lien of   
current real property taxes and assessments, (ii) covenants, conditions and     
restrictions, rights of way, easements and other matters of public record as of 
the date of recording of such Mortgage, such exceptions being acceptable to     
mortgage lending institutions generally or specifically reflected in the        
appraisal obtained in connection with the origination of the related Mortgage   
Loan or referred to in the lender's title insurance policy delivered to the     
originator of the related Mortgage Loan and (iii) other matters to which like   
properties are commonly subject which do not materially interfere with the      
benefits of the security intended to be provided by such Mortgage;              

                  (viii) there is no mechanics' lien or claim for work, labor or
material affecting the premises subject to any Mortgage which is or may be a    
lien prior to, or equal with, the lien of such Mortgage except those which are  
insured against by the title insurance policy referred to in (xiii) below;      

                 (ix) as of the Closing Date, to the best of the Mortgage Loan
Seller's knowledge, there was no delinquent tax or assessment lien against the  
property subject to any Mortgage, except where such lien was being contested in 
good faith and a stay had been granted against levying on the property;         

                (x) there is no valid offset, defense or counterclaim to any
Mortgage Note or Mortgage, including the obligation of the Mortgagor to pay the 
unpaid principal and interest on such Mortgage Note;                            

             (xi) to the best of the Mortgage Loan Seller's knowledge,
except to the extent insurance is in place which will cover such damage, the    
physical property subject to any Mortgage is free of material damage and is in  
good repair and there is no proceeding pending or threatened for the total or   
partial condemnation of any Mortgaged Property;                                 

                  (xii) to the best of the Mortgage Loan Seller's knowledge, the
Mortgaged Property and all improvements thereon comply with all requirements of 
any applicable zoning and subdivision laws and ordinances;                      

                (xiii) a lender's title insurance policy (on an ALTA or CLTA
form) or binder, or other assurance of title customary in the relevant          
jurisdiction therefor in a form acceptable to Fannie Mae or Freddie Mac, was    
issued on the date that each Mortgage Loan was created by a title insurance     
company which, to the best of the Mortgage Loan Seller's knowledge, was         
qualified to do business in the jurisdiction where the related Mortgaged        
Property is located, insuring the Mortgage Loan Seller and its successors and   
assigns that the Mortgage is a first priority lien on the related Mortgaged     
Property in the original principal amount of the Mortgage Loan. The Mortgage    
Loan Seller is the sole insured under such lender's title insurance policy,     

E-14

EX-99.1
73rd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 73rd
and such policy, binder or assurance is valid and remains in full force and     
effect, and each such policy, binder or assurance shall contain all applicable  
endorsements including a negative amortization endorsement, if applicable;      

                 (xiv) at the time of origination, each Mortgaged Property was
the subject of an appraisal which conformed to the underwriting requirements of 
the originator of the Mortgage Loan and, the appraisal is in a form acceptable  
to Fannie Mae or FHLMC;                                                         

         (xv) as of the Closing Date, the improvements on each
Mortgaged Property securing a Mortgage Loan is insured (by an insurer which is  
acceptable to the Mortgage Loan Seller) against loss by fire and such hazards as
are covered under a standard extended coverage endorsement in the locale in     
which the Mortgaged Property is located, in an amount which is not less than the
lesser of the maximum insurable value of the improvements securing such Mortgage
Loan or the outstanding principal balance of the Mortgage Loan, but in no event 
in an amount less than an amount that is required to prevent the Mortgagor from 
being deemed to be a co insurer thereunder; if the improvement on the Mortgaged 
Property is a condominium unit, it is included under the coverage afforded by a 
blanket policy for the condominium project; if upon origination of the related  
Mortgage Loan, the improvements on the Mortgaged Property were in an area       
identified as a federally designated flood area, a flood insurance policy is in 
effect in an amount representing coverage not less than the least of (i) the    
outstanding principal balance of the Mortgage Loan, (ii) the restorable cost of 
improvements located on such Mortgaged Property or (iii) the maximum coverage   
available under federal law; and each Mortgage obligates the Mortgagor          
thereunder to maintain the insurance referred to above at the Mortgagor's cost  
and expense;                                                                    

                  (xvi) none of the Mortgage Loans are secured by an interest in
a leasehold estate;                                                             

               (xvii) each Mortgage Loan was originated or funded by (a) a
savings and loan association, savings bank, commercial bank, credit union,      
insurance company or similar institution which is supervised and examined by a  
federal or state authority (or originated by (i) a subsidiary of any of the     
foregoing institutions which subsidiary is actually supervised and examined by  
applicable regulatory authorities or (ii) a mortgage loan correspondent of any  
of the foregoing and that was originated pursuant to the criteria established by
any of the foregoing) or (b) a mortgagee approved by the Secretary of Housing   
and Urban Development pursuant to sections 203 and 211 of the National Housing  
Act, as amended;                                                                

                  (xviii) none of the Mortgage Loans are (a) loans subject to 12
CFR Part 226.31, 12 CFR Part 226.32 or 12 CFR Part 226.34 of Regulation Z, the  
regulation implementing TILA, which implements the Home Ownership and Equity    
Protection Act of 1994, as amended or (b) classified and/or defined as a "high  
cost home loan" under any federal, state or local law, including, but not       
limited to, the States of Georgia or North Carolina;                            

        (xix) the information set forth in Schedule A of the
Prospectus Supplement with respect to the Mortgage Loans is true and correct in 
all material respects;                                                          

E-15

EX-99.1
74th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 74th
                 (xx) no Mortgage Loan is a High Cost Loan or Covered Loan, as
applicable (as such terms are defined in Standard & Poor's LEVELS(R) Glossary,  
Version 5.6 Revised, Appendix E, attached hereto as Exhibit 6) and no Mortgage  
Loan originated on or after October 1, 2002 through March 6, 2003 is governed by
the "Georgia Fair Lending Act";                                                 

                  (xxi) each Mortgage Loan was originated in accordance with the
underwriting guidelines of the related originator;                              

                (xxii) each original Mortgage has been recorded or is in the
process of being recorded in accordance with the requirements of Section 2.01 of
the Sale and Servicing Agreement in the appropriate jurisdictions wherein such  
recordation is required to perfect the lien thereof for the benefit of the Trust
Fund;                                                                           

          (xxiii) the related Mortgage File contains each of the
documents and instruments listed in Section 2.01 of the Sale and Servicing      
Agreement, subject to any exceptions, substitutions and qualifications as are   
set forth in such Section;                                                      

             (xxiv) the Mortgage Loans are currently being serviced in
accordance with accepted servicing practices;                                   

                 (xxv) at the time of origination, each Mortgaged Property was
the subject of an appraisal which conformed to the underwriting requirements of 
the originator of the Mortgage Loan, and the appraisal is in a form which was   
acceptable to Fannie Mae or FHLMC at the time of origination;                   

            (xxvi) None of the Mortgage Loans originated on or after
October 1, 2002 and before March 7, 2003 was secured by property located in the 
State of Georgia; and                                                           

                (xxvii) No Mortgage Loan originated prior to October 1, 2002
will impose prepayment penalties.                                               

            It is understood and agreed that the representations and
warranties set forth in this Section 7 will inure to the benefit of the         
Purchaser, its successors and assigns, notwithstanding any restrictive or       
qualified endorsement on any Mortgage Note or assignment of Mortgage or the     
examination of any Mortgage File. Upon any substitution for a Mortgage Loan, the
representations and warranties set forth above shall be deemed to be made by the
Mortgage Loan Seller as to any Substitute Mortgage Loan as of the date of       
substitution.                                                                   

            Upon discovery or receipt of notice by the Mortgage Loan
Seller, the Purchaser, the Issuer or the Indenture Trustee of a breach of any   
representation or warranty of the Mortgage Loan Seller set forth in this Section
7 which materially and adversely affects the value of the interests of the      
Purchaser, the Issuer, the Noteholders or the Indenture Trustee in any of the   
Mortgage Loans delivered to the Purchaser pursuant to this Agreement, the party 
discovering or receiving notice of such breach shall give prompt written notice 
to the others. In the case of any such breach of a representation or warranty   
set forth in this Section 7, within 90 days from the date of discovery by the   
Mortgage Loan Seller, or the date the Mortgage Loan Seller is notified by the   
party discovering or receiving notice of such breach (whichever occurs earlier),
the Mortgage Loan Seller will (i) cure such breach in all material respects,    
(ii) purchase the affected                                                      

E-16

EX-99.1
75th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 75th
Mortgage Loan at the applicable Purchase Price or (iii) substitute a qualifying 
Substitute Mortgage Loan in exchange for such Mortgage Loan. The obligations of 
the Mortgage Loan Seller to cure, purchase or substitute a qualifying Substitute
Mortgage Loan shall constitute the Purchaser's, the Issuer's, the Indenture     
Trustee's and the Noteholder's sole and exclusive remedy under this Agreement or
otherwise respecting a breach of representations or warranties hereunder with   
respect to the Mortgage Loans, except for the obligation of the Mortgage Loan   
Seller to indemnify the Purchaser for such breach as set forth in and limited by
Section 13 hereof.                                                              

           Any cause of action against the Mortgage Loan Seller or
relating to or arising out of a breach by the Mortgage Loan Seller of any       
representations and warranties made in this Section 7 shall accrue as to any    
Mortgage Loan upon (i) discovery of such breach by the Mortgage Loan Seller or  
notice thereof by the party discovering such breach and (ii) failure by the     
Mortgage Loan Seller to cure such breach, purchase such Mortgage Loan or        
substitute a qualifying Substitute Mortgage Loan pursuant to the terms hereof.  

            Section 8. Representations and Warranties Concerning the
Mortgage Loan Seller. As of the date hereof and as of the Closing Date, the     
Mortgage Loan Seller represents and warrants to the Purchaser as to itself in   
the capacity indicated as follows:                                              

          (a) the Mortgage Loan Seller (i) is a corporation duly
organized, validly existing and in good standing under the laws of the State of 
Delaware and (ii) is qualified and in good standing to do business in each      
jurisdiction where such qualification is necessary, except where the failure so 
to qualify would not reasonably be expected to have a material adverse effect on
the Mortgage Loan Seller's business as presently conducted or on the Mortgage   
Loan Sellers ability to enter into this Agreement and to consummate the         
transactions contemplated hereby;                                               

          (b) the Mortgage Loan Seller has full power to own its
property, to carry on its business as presently conducted and to enter into and 
perform its obligations under this Agreement;                                   

                 (c) the execution and delivery by the Mortgage Loan Seller of
this Agreement have been duly authorized by all necessary action on the part of 
the Mortgage Loan Seller; and neither the execution and delivery of this        
Agreement, nor the consummation of the transactions herein contemplated, nor    
compliance with the provisions hereof, will conflict with or result in a breach 
of, or constitute a default under, any of the provisions of any law,            
governmental rule, regulation, judgment, decree or order binding on the Mortgage
Loan Seller or its properties or the charter or by-laws of the Mortgage Loan    
Seller, except those conflicts, breaches or defaults which would not reasonably 
be expected to have a material adverse effect on the Mortgage Loan Seller's     
ability to enter into this Agreement and to consummate the transactions         
contemplated hereby;                                                            

               (d) the execution, delivery and performance by the Mortgage
Loan Seller of this Agreement and the consummation of the transactions          
contemplated hereby do not require the consent or approval of, the giving of    
notice to, the registration with, or the taking of any other action in respect  
of, any state, federal or other governmental authority or agency, except those  
consents, approvals, notices, registrations or other actions as have already    
been obtained, given                                                            

E-17

EX-99.1
76th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 76th
or made and, in connection with the recordation of the Mortgages, powers of     
attorney or assignments of Mortgages not yet completed;                         

                  (e) this Agreement has been duly executed and delivered by the
Mortgage Loan Seller and, assuming due authorization, execution and delivery by 
the Purchaser, constitutes a valid and binding obligation of the Mortgage Loan  
Seller enforceable against it in accordance with its terms (subject to          
applicable bankruptcy and insolvency laws and other similar laws affecting the  
enforcement of the rights of creditors generally);                              

                 (f) there are no actions, suits or proceedings pending or, to
the knowledge of the Mortgage Loan Seller, threatened against the Mortgage Loan 
Seller, before or by any court, administrative agency, arbitrator or            
governmental body (i) with respect to any of the transactions contemplated by   
this Agreement or (ii) with respect to any other matter which in the judgment of
the Mortgage Loan Seller will be determined adversely to the Mortgage Loan      
Seller and will if determined adversely to the Mortgage Loan Seller materially  
and adversely affect the Mortgage Loan Seller's ability to perform its          
obligations under this Agreement; and the Mortgage Loan Seller is not in default
with respect to any order of any court, administrative agency, arbitrator or    
governmental body so as to materially and adversely affect the transactions     
contemplated by this Agreement; and                                             

             (g) the Mortgage Loan Seller's Information (as defined in
Section 13(a) hereof) does not include any untrue statement of a material fact  
or omit to state a material fact necessary in order to make the statements made,
in light of the circumstances under which they were made, not misleading.       

            Section 9. Representations and Warranties Concerning the
Purchaser. As of the date hereof and as of the Closing Date, the Purchaser      
represents and warrants to the Mortgage Loan Seller as follows:                 

                  (a) the Purchaser (i) is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and (ii)  
is qualified and in good standing as a foreign corporation to do business in    
each jurisdiction where such qualification is necessary, except where the       
failure to so qualify would not reasonably be expected to have a material       
adverse effect on the Purchaser's business as presently conducted or on the     
Purchaser's ability to enter into this Agreement and to consummate the          
transactions contemplated hereby;                                               

         (b) the Purchaser has full corporate power to own its
property, to carry on its business as presently conducted and to enter into and 
perform its obligations under this Agreement;                                   

           (c) the execution and delivery by the Purchaser of this
Agreement have been duly authorized by all necessary corporate action on the    
part of the Purchaser; and neither the execution and delivery of this Agreement,
nor the consummation of the transactions herein contemplated, nor compliance    
with the provisions hereof, will conflict with or result in a breach of, or     
constitute a default under, any of the provisions of any law, governmental rule,
regulation, judgment, decree or order binding on the Purchaser or its properties
or the articles of incorporation or by-laws of the Purchaser, except those      
conflicts, breaches or defaults which                                           

E-18

EX-99.1
77th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 77th
would not reasonably be expected to have a material adverse effect on the       
Purchaser's ability to enter into this Agreement and to consummate the          
transactions contemplated hereby;                                               

                (d) the execution, delivery and performance by the Purchaser
of this Agreement and the consummation of the transactions contemplated hereby  
do not require the consent or approval of, the giving of notice to, the         
registration with, or the taking of any other action in respect of, any state,  
federal or other governmental authority or agency, except those consents,       
approvals, notices, registrations or other actions as have already been         
obtained, given or made;                                                        

                  (e) this Agreement has been duly executed and delivered by the
Purchaser and, assuming due authorization, execution and delivery by the        
Mortgage Loan Seller, constitutes a valid and binding obligation of the         
Purchaser enforceable against it in accordance with its terms (subject to       
applicable bankruptcy and insolvency laws and other similar laws affecting the  
enforcement of the rights of creditors generally);                              

                 (f) there are no actions, suits or proceedings pending or, to
the knowledge of the Purchaser, threatened against the Purchaser, before or by  
any court, administrative agency, arbitrator or governmental body (i) with      
respect to any of the transactions contemplated by this Agreement or (ii) with  
respect to any other matter which in the judgment of the Purchaser will be      
determined adversely to the Purchaser and will if determined adversely to the   
Purchaser materially and adversely affect the Purchaser's ability to perform its
obligations under this Agreement; and the Purchaser is not in default with      
respect to any order of any court, administrative agency, arbitrator or         
governmental body so as to materially and adversely affect the transactions     
contemplated by this Agreement; and                                             

                (g) the Purchaser's Information (as defined in Section 13(b)
hereof) does not include any untrue statement of a material fact or omit to     
state a material fact necessary in order to make the statements made, in light  
of the circumstances under which they were made, not misleading.                

Section 10.       Conditions to Closing.    

                  (a) The obligations of the Purchaser under this Agreement will
be subject to the satisfaction, on or prior to the Closing Date, of the         
following conditions:                                                           

           (1) Each of the obligations of the Mortgage Loan Seller
required to be performed at or prior to the Closing Date pursuant to the terms  
of this Agreement shall have been duly performed and complied with in all       
material respects; all of the representations and warranties of the Mortgage    
Loan Seller under this Agreement shall be true and correct as of the date or    
dates specified in all material respects; and no event shall have occurred      
which, with notice or the passage of time, would constitute a default under this
Agreement or the Sale and Servicing Agreement; and the Purchaser shall have     
received certificates to that effect signed by authorized officers of the       
Mortgage Loan Seller.                                                           

              (2) The Purchaser shall have received all of the following
closing documents, in such forms as are agreed upon and reasonably acceptable to
the Purchaser, duly executed by all signatories (other than the Purchaser) as   
required pursuant to the respective terms thereof:                              

E-19

EX-99.1
78th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 78th
               (i) If required pursuant to Section 3 hereof, the Amendment
dated as of the Closing Date and any documents referred to therein;             

            (ii) If required pursuant to Section 3 hereof, the Final
Mortgage Loan Schedule containing the information set forth on Exhibit 2 hereto,
one copy to be attached to each counterpart of the Amendment;                   

               (iii) The Trust Agreement, in form and substance reasonably
satisfactory to the Purchaser, and all documents required thereby duly executed 
by all signatories;                                                             

                (iv) The Sale and Servicing Agreement, in form and substance
reasonably satisfactory to the Indenture Trustee, the Issuer and the Purchaser, 
and all documents required thereby duly executed by all signatories;            

       (v) The Indenture, in form and substance reasonably
satisfactory to the Indenture Trustee, the Issuer and the Purchaser, and all    
documents required thereby duly executed by all signatories;                    

                (vi) A certificate of an officer of the Mortgage Loan Seller
dated as of the Closing Date, in a form reasonably acceptable to the Purchaser, 
and attached thereto the resolutions of the Mortgage Loan Seller authorizing the
transactions contemplated by this Agreement, together with copies of the charter
and by-laws of the Mortgage Loan Seller;                                        

                (vii) One or more opinions of counsel from the Mortgage Loan
Seller's counsel otherwise in form and substance reasonably satisfactory to the 
Purchaser, the Issuer, the Indenture Trustee and each Rating Agency;            

                (viii) A letter from each of the Rating Agencies giving each
Class of Notes set forth on Schedule A the rating set forth on Schedule A; and  

                 (ix) Such other documents, certificates (including additional
representations and warranties) and opinions as may be reasonably necessary to  
secure the intended ratings from each Rating Agency for the Notes.              

                (3) The Notes to be sold to the Underwriters pursuant to the
Underwriting Agreement shall have been issued and sold to the Underwriters.     

            (4) The Mortgage Loan Seller shall have furnished to the
Purchaser such other certificates of its officers or others and such other      
documents and opinions of counsel to evidence fulfillment of the conditions set 
forth in this Agreement and the transactions contemplated hereby as the         
Purchaser and its counsel may reasonably request.                               

              (b) The obligations of the Mortgage Loan Seller under this
Agreement shall be subject to the satisfaction, on or prior to the Closing Date,
of the following conditions:                                                    

                 (1) The obligations of the Purchaser required to be performed
by it on or prior to the Closing Date pursuant to the terms of this Agreement   
shall have been duly performed and complied with in all material respects, and  
all of the representations and warranties of the                                

E-20

EX-99.1
79th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 79th
Purchaser under this Agreement shall be true and correct in all material        
respects as of the date hereof and as of the Closing Date, and no event shall   
have occurred which would constitute a breach by it of the terms of this        
Agreement, and the Mortgage Loan Seller shall have received a certificate to    
that effect signed by an authorized officer of the Purchaser.                   

                  (2) The Mortgage Loan Seller shall have received copies of all
of the following closing documents, in such forms as are agreed upon and        
reasonably acceptable to the Mortgage Loan Seller, duly executed by all         
signatories other than the Mortgage Loan Seller as required pursuant to the     
respective terms thereof:                                                       

               (i) If required pursuant to Section 3 hereof, the Amendment
dated as of the Closing Date and any documents referred to therein;             

              (ii) The Trust Agreement, in form and substance reasonably
satisfactory to the Mortgage Loan Seller, and all documents required thereby    
duly executed by all signatories;                                               

                 (iii) The Sale and Servicing Agreement, in form and substance
reasonably satisfactory to the Mortgage Loan Seller, and all documents required 
thereby duly executed by all signatories;                                       

        (iv) The Indenture, in form and substance reasonably
satisfactory to the Mortgage Loan Seller, and all documents required thereby    
duly executed by all signatories;                                               

                (v) A certificate of an officer of the Purchaser dated as of
the Closing Date, in a form reasonably acceptable to the Mortgage Loan Seller,  
and attached thereto the resolutions of the Purchaser authorizing the           
transactions contemplated by this Agreement and the Sale and Servicing          
Agreement, together with copies of the Purchaser's articles of incorporation,   
and evidence as to the good standing of the Purchaser dated as of a recent date;

             (vi) One or more opinions of counsel from the Purchaser's
counsel in form and substance reasonably satisfactory to the Mortgage Loan      
Seller; and                                                                     

                  (vii) Such other documents, certificates (including additional
representations and warranties) and opinions as may be reasonably necessary to  
secure the intended rating from each Rating Agency for the Notes;               

            (3) The  Certificates  shall have been  transferred  to,
or at the  direction of, the Mortgage Loan Seller.                              

                Section 11. Fees and Expenses. Subject to Section 16 hereof,
the Mortgage Loan Seller shall pay on the Closing Date or such later date as may
be agreed to by the Purchaser (i) the fees and expenses of the Mortgage Loan    
Seller's attorneys and the reasonable fees and expenses of the Purchaser's      
attorneys, (ii) the fees and expenses of Deloitte & Touche LLP, (iii) the fee   
for the use of Purchaser's Registration Statement based on the aggregate        
original principal amount of the Certificates and the filing fee of the         
Commission as in effect on the date on which the Registration Statement was     
declared effective, (iv) the fees and expenses including counsel's fees and     
expenses in connection with any "blue sky" and legal investment matters, (v) the
fees and expenses of the Indenture Trustee which shall include without          
limitation the fees                                                             

E-21

EX-99.1
80th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 80th
and expenses of the Indenture Trustee (and the fees and disbursements of its    
counsel) with respect to (A) legal and document review of this Agreement, the   
Trust Agreement, the Indenture, the Sale and Servicing Agreement, the Notes and 
related agreements, (B) attendance at the Closing and (C) review of the Mortgage
Loans to be performed by the Custodian, (vi) the expenses for printing or       
otherwise reproducing the Notes, the Prospectus and the Prospectus Supplement,  
(vii) the fees and expenses of each Rating Agency (both initial and ongoing),   
(viii) the fees and expenses relating to the preparation and recordation of     
mortgage assignments (including intervening assignments, if any and if          
available, to evidence a complete chain of title from the originator to the     
Indenture Trustee) from the Mortgage Loan Seller to the Indenture Trustee or the
expenses relating to the Opinion of Counsel referred to in Section 6(a) hereof, 
as the case may be, and (ix) Mortgage File due diligence expenses and other     
out-of-pocket expenses incurred by the Purchaser in connection with the purchase
of the Mortgage Loans and by Bear Stearns in connection with the sale of the    
Notes. The Mortgage Loan Seller additionally agrees to pay directly to any third
party on a timely basis the fees provided for above which are charged by such   
third party and which are billed periodically.                                  

Section 12.       Accountants' Letters.     

                  (a) Deloitte & Touche LLP will review the characteristics of a
sample of the Mortgage Loans described in the Final Mortgage Loan Schedule and  
will compare those characteristics to the description of the Mortgage Loans     
contained in the Prospectus Supplement under the captions "Summary of Prospectus
Supplement--The Mortgage Loans" and "The Mortgage Pool" and in Schedule A       
thereto. The Mortgage Loan Seller will cooperate with the Purchaser in making   
available all information and taking all steps reasonably necessary to permit   
such accountants to complete the review and to deliver the letters required of  
them under the Underwriting Agreement. Deloitte & Touche LLP will also confirm  
certain calculations as set forth under the caption "Yield On The Notes" in the 
Prospectus Supplement.                                                          

                 (b) To the extent statistical information with respect to the
Master Servicer's or a Servicer's servicing portfolio is included in the        
Prospectus Supplement under the caption "The Master Servicer and the Servicer," 
a letter from the certified public accountant for the Master Servicer and such  
Servicer or Servicers will be delivered to the Purchaser dated the date of the  
Prospectus Supplement, in the form previously agreed to by the Mortgage Loan    
Seller and the Purchaser, with respect to such statistical information.         

Section 13.       Indemnification.          

                  (a) The Mortgage Loan Seller shall indemnify and hold harmless
the Purchaser and its directors, officers and controlling persons (as defined in
Section 15 of the Securities Act) from and against any loss, claim, damage or   
liability or action in respect thereof, to which they or any of them may become 
subject, under the Securities Act or otherwise, insofar as such loss, claim,    
damage, liability or action arises out of, or is based upon (i) any untrue      
statement of a material fact contained in the Mortgage Loan Seller's Information
as identified in Exhibit 3, the omission to state in the Prospectus Supplement  
or Prospectus (or any amendment thereof or supplement thereto approved by the   
Mortgage Loan Seller and in which additional Mortgage Loan Seller's Information 
is identified), in reliance upon and in conformity with Mortgage Loan Seller's  
Information a material fact required to be stated therein or necessary to       

E-22

EX-99.1
81st Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 81st
make the statements therein in light of the circumstances in which they were    
made, not misleading, (ii) any representation or warranty assigned or made by   
the Mortgage Loan Seller in Section 7 or Section 8 hereof being, or alleged to  
be, untrue or incorrect, or (iii) any failure by the Mortgage Loan Seller to    
perform its obligations under this Agreement; and the Mortgage Loan Seller shall
reimburse the Purchaser and each other indemnified party for any legal and other
expenses reasonably incurred by them in connection with investigating or        
defending or preparing to defend against any such loss, claim, damage, liability
or action.                                                                      

           The foregoing indemnity agreement is in addition to any
liability which the Mortgage Loan Seller otherwise may have to the Purchaser or 
any other such indemnified party.                                               

           (b) The Purchaser shall indemnify and hold harmless the
Mortgage Loan Seller and its respective directors, officers and controlling     
persons (as defined in Section 15 of the Securities Act) from and against any   
loss, claim, damage or liability or action in respect thereof, to which they or 
any of them may become subject, under the Securities Act or otherwise, insofar  
as such loss, claim, damage, liability or action arises out of, or is based upon
(i) any untrue statement of a material fact contained in the Purchaser's        
Information as identified in Exhibit 4, the omission to state in the Prospectus 
Supplement or Prospectus (or any amendment thereof or supplement thereto        
approved by the Purchaser and in which additional Purchaser's Information is    
identified), in reliance upon and in conformity with the Purchaser's            
Information, a material fact required to be stated therein or necessary to make 
the statements therein in light of the circumstances in which they were made,   
not misleading, (ii) any representation or warranty made by the Purchaser in    
Section 9 hereof being, or alleged to be, untrue or incorrect, or (iii) any     
failure by the Purchaser to perform its obligations under this Agreement; and   
the Purchaser shall reimburse the Mortgage Loan Seller, and each other          
indemnified party for any legal and other expenses reasonably incurred by them  
in connection with investigating or defending or preparing to defend any such   
loss, claim, damage, liability or action. The foregoing indemnity agreement is  
in addition to any liability which the Purchaser otherwise may have to the      
Mortgage Loan Seller, or any other such indemnified party,                      

            (c) Promptly after receipt by an indemnified party under
subsection (a) or (b) above of notice of the commencement of any action, such   
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under such subsection, notify each party against whom        
indemnification is to be sought in writing of the commencement thereof (but the 
failure so to notify an indemnifying party shall not relieve it from any        
liability which it may have under this Section 13 except to the extent that it  
has been prejudiced in any material respect by such failure or from any         
liability which it may have otherwise). In case any such action is brought      
against any indemnified party, and it notifies an indemnifying party of the     
commencement thereof, the indemnifying party will be entitled to participate    
therein and, to the extent it may elect by written notice delivered to the      
indemnified party promptly (but, in any event, within 30 days) after receiving  
the aforesaid notice from such indemnified party, to assume the defense thereof 
with counsel reasonably satisfactory to such indemnified party. Notwithstanding 
the foregoing, the indemnified party or parties shall have the right to employ  
its or their own counsel in any such case, but the fees and expenses of such    
counsel shall be at the expense of such indemnified party or parties unless (i) 
the employment of such counsel shall have been authorized in writing by one of  
the indemnifying parties in connection with the defense of such action, (ii) the
indemnifying parties shall not have employed counsel to have                    

E-23

EX-99.1
82nd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 82nd
charge of the defense of such action within a reasonable time after notice of   
commencement of the action, or (iii) such indemnified party or parties shall    
have reasonably concluded that there is a conflict of interest between itself or
themselves and the indemnifying party in the conduct of the defense of any claim
or that the interests of the indemnified party or parties are not substantially 
co-extensive with those of the indemnifying party (in which case the            
indemnifying parties shall not have the right to direct the defense of such     
action on behalf of the indemnified party or parties), in any of which events   
such fees and expenses shall be borne by the indemnifying parties; provided,    
however, that the indemnifying party shall be liable only for the fees and      
expenses of one counsel in addition to one local counsel in the jurisdiction    
involved. Anything in this subsection to the contrary notwithstanding, an       
indemnifying party shall not be liable for any settlement or any claim or action
effected without its written consent; provided, however, that such consent was  
not unreasonably withheld.                                                      

                 (d) If the indemnification provided for in paragraphs (a) and
(b) of this Section 13 shall for any reason be unavailable to an indemnified    
party in respect of any loss, claim, damage or liability, or any action in      
respect thereof, referred to in Section 13, then the indemnifying party shall in
lieu of indemnifying the indemnified party contribute to the amount paid or     
payable by such indemnified party as a result of such loss, claim, damage or    
liability, or action in respect thereof, in such proportion as shall be         
appropriate to reflect the relative benefits received by the Mortgage Loan      
Seller on the one hand and the Purchaser on the other from the purchase and sale
of the Mortgage Loans, the transfer of the Certificates to the Mortgage Loan    
Seller, the offering of the Notes and the other transactions contemplated       
hereunder. No person found liable for a fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to            
contribution from any person who is not also found liable for such fraudulent   
misrepresentation.                                                              

                (e) The parties hereto agree that reliance by an indemnified
party on any publicly available information or any information or directions    
furnished by an indemnifying party shall not constitute negligence, bad faith or
willful misconduct by such indemnified party.                                   

                Section 14. Notices. All demands, notices and communications
hereunder shall be in writing but may be delivered by facsimile transmission    
subsequently confirmed in writing. Notices to the Mortgage Loan Seller shall be 
directed to EMC Mortgage Corporation, Mac Arthur Ridge II, 909 Hidden Ridge     
Drive, Suite 200, Irving, Texas 75038 (Telecopy: (972-444-2880)), and notices to
the Purchaser shall be directed to Structured Asset Mortgage Investments II     
Inc., 383 Madison Avenue, New York, New York 10179 (Telecopy: (212-272-7206)),  
Attention: Baron Silverstein; or to any other address as may hereafter be       
furnished by one party to the other party by like notice. Any such demand,      
notice or communication hereunder shall be deemed to have been received on the  
date received at the premises of the addressee (as evidenced, in the case of    
registered or certified mail, by the date noted on the return receipt) provided 
that it is received on a business day during normal business hours and, if      
received after normal business hours, then it shall be deemed to be received on 
the next business day.                                                          

                 Section 15. Transfer of Mortgage Loans. The Purchaser retains
the right to assign the Mortgage Loans and any or all of its interest under this
Agreement to the Issuer, with the understanding that the Issuer will then assign
such rights to the Indenture Trustee pursuant to                                

E-24

EX-99.1
83rd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 83rd
the Indenture, without the consent of the Mortgage Loan Seller, and, upon such  
assignment, the Indenture Trustee, as the ultimate assignee, shall succeed to   
the applicable rights and obligations of the Purchaser hereunder; provided,     
however, the Purchaser shall remain entitled to the benefits set forth in       
Sections 11, 13 and 17 hereto and as provided in Section 2(a). Notwithstanding  
the foregoing, the sole and exclusive right and remedy of the Issuer or the     
Indenture Trustee with respect to a breach of representation or warranty of the 
Mortgage Loan Seller shall be the purchase or substitution obligations of the   
Mortgage Loan Seller contained in Sections 5 and 7 hereof.                      

                 Section 16. Termination. This Agreement may be terminated (a)
by the mutual consent of the parties hereto prior to the Closing Date, (b) by   
the Purchaser, if the conditions to the Purchaser's obligation to close set     
forth under Section 10(a) hereof are not fulfilled as and when required to be   
fulfilled or (c) by the Mortgage Loan Seller, if the conditions to the Mortgage 
Loan Seller's obligation to close set forth under Section 10(b) hereof are not  
fulfilled as and when required to be fulfilled. In the event of termination     
pursuant to clause (b), the Mortgage Loan Seller shall pay, and in the event of 
termination pursuant to clause (c), the Purchaser shall pay, all reasonable     
out-of-pocket expenses incurred by the other in connection with the transactions
contemplated by this Agreement. In the event of a termination pursuant to clause
(a), each party shall be responsible for its own expenses.                      

             Section 17. Representations, Warranties and Agreements to
Survive Delivery. All representations, warranties and agreements contained in   
this Agreement, or contained in certificates of officers of the Mortgage Loan   
Seller submitted pursuant hereto, shall remain operative and in full force and  
effect and shall survive delivery of the Mortgage Loans to the Purchaser,       
delivery by the Purchaser to the Issuer and the pledge by the Issuer to the     
Indenture Trustee on behalf of the Noteholders. Subsequent to the delivery of   
the Mortgage Loans to the Purchaser, the Mortgage Loan Seller's representations 
and warranties contained herein with respect to the Mortgage Loans shall be     
deemed to relate to the Mortgage Loans actually delivered to the Purchaser and  
included in the Final Mortgage Loan Schedule and any Substitute Mortgage Loan   
and not to those Mortgage Loans deleted from the Preliminary Mortgage Loan      
Schedule pursuant to Section 3 hereof prior to the Closing.                     

                Section 18. Severability. If any provision of this Agreement
shall be prohibited or invalid under applicable law, the Agreement shall be     
ineffective only to such extent, without invalidating the remainder of this     
Agreement.                                                                      

               Section 19. Counterparts. This Agreement may be executed in
counterparts, each of which will be an original, but which together shall       
constitute one and the same agreement.                                          

              Section 20. Amendment. This Agreement cannot be amended or
modified in any manner without the prior written consent of each party.         

                Section 21. GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO
HAVE BEEN MADE AND PERFORMED IN THE STATE OF NEW YORK AND SHALL BE INTERPRETED  
IN ACCORDANCE WITH THE LAWS OF SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS   
PRINCIPLES OF SUCH STATE.                                                       

E-25

EX-99.1
84th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 84th
                 Section 22. Further Assurances. Each of the parties agrees to
execute and deliver such instruments and take such actions as another party may,
from time to time, reasonably request in order to effectuate the purpose and to 
carry out the terms of this Agreement including any amendments hereto which may 
be required by each of the Rating Agencies.                                     

                 Section 23. Successors and Assigns. This Agreement shall bind
and inure to the benefit of and be enforceable by the Mortgage Loan Seller and  
the Purchaser and their permitted successors and assigns and, to the extent     
specified in Section 13 hereof, Bear Stearns, and their directors, officers and 
controlling persons (within the meaning of federal securities laws). The        
Mortgage Loan Seller acknowledges and agrees that the Purchaser may assign its  
rights under this Agreement (including, without limitation, with respect to the 
Mortgage Loan Seller's representations and warranties respecting the Mortgage   
Loans) to Issuer and that the Issuer may further assign such rights to the      
Indenture Trustee. Any person into which the Mortgage Loan Seller may be merged 
or consolidated (or any person resulting from any merger or consolidation       
involving the Mortgage Loan Seller), any person resulting from a change in form 
of the Mortgage Loan Seller or any person succeeding to the business of the     
Mortgage Loan Seller, shall be considered the "successor" of the Mortgage Loan  
Seller hereunder and shall be considered a party hereto without the execution or
filing of any paper or any further act or consent on the part of any party      
hereto. Except as provided in the two preceding sentences, this Agreement cannot
be assigned, pledged or hypothecated by either party hereto without the written 
consent of the other parties to this Agreement and any such assignment or       
purported assignment shall be deemed null and void.                             

                  Section 24. The Mortgage Loan Seller. The Mortgage Loan Seller
will keep in full effect all rights as are necessary to perform their respective
obligations under this Agreement.                                               

             Section 25. Entire Agreement. This Agreement contains the
entire agreement and understanding between the parties with respect to the      
subject matter hereof, and supersedes all prior and contemporaneous agreements, 
understandings, inducements and conditions, express or implied, oral or written,
of any nature whatsoever with respect to the subject matter hereof.             

                 Section 26. No Partnership. Nothing herein contained shall be
deemed or construed to create a partnership or joint venture between the parties
hereto.                                                                         

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

E-26

EX-99.1
85th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 85th
      IN WITNESS WHEREOF, the parties hereto have caused their names to be
signed hereto by their respective duly authorized officers as of the date first 
above written.                                                                  

            EMC MORTGAGE CORPORATION

By:         
                           ---------------------------------
         Name:    Dana Dillard
                  Title:   Senior Vice President

                                 STRUCTURED ASSET MORTGAGE INVESTMENTS II INC.

By:         
                           ---------------------------------
              Name:    Baron Silverstein
           Title:   Vice President

E-27

EX-99.1
86th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 86th
 EXHIBIT 1

 CONTENTS OF MORTGAGE FILE

     With respect to each Mortgage Loan, the Mortgage File shall include
each of the following items, which shall be available for inspection by the     
Purchaser or its designee, and which shall be delivered to the Purchaser or its 
designee pursuant to the terms of the Agreement.                                

(a)  with respect to each Mortgage Loan:                      

   1. The original Mortgage Note, endorsed without recourse in blank
or to the order of the Indenture Trustee and showing an unbroken chain of       
endorsements from the originator thereof to the Person endorsing it in blank or 
to the Indenture Trustee, or a lost note affidavit together with a copy of the  
related Mortgage Note;                                                          

 2. The original Mortgage and, if the related Mortgage Loan is a
MOM Loan, noting the presence of the MIN and language indicating that such      
Mortgage Loan is a MOM Loan, which shall have been recorded (or if the original 
is not available, a copy), with evidence of such recording indicated thereon (or
if the original Security Instrument, assignments to the Indenture Trustee or    
intervening assignments thereof which have been delivered, are being delivered  
or will, upon receipt of recording information relating to the Security         
Instrument required to be included thereon, be delivered to recording offices   
for recording and have not been returned to the Seller in time to permit their  
recording as specified in Section 2.01(b) of the Sale and Servicing Agreement,  
shall be in recordable form);                                                   

3. unless the Mortgage Loan is a MOM Loan, a certified copy of
the assignment (which may be in the form of a blanket assignment if permitted in
the jurisdiction in which the Mortgaged Property is located) in blank or to     
"U.S. Bank National Association, as Indenture Trustee", with evidence of        
recording with respect to each Mortgage Loan in the name of the Indenture       
Trustee thereon (or if (A) the original Security Instrument, assignments to the 
Indenture Trustee or intervening assignments thereof which have been delivered, 
are being delivered or will, upon receipt of recording information relating to  
the Security Instrument required to be included thereon, be delivered to        
recording offices for recording and have not been returned to the Seller in time
to permit their delivery as specified in Section 2.01(b) of the Sale and        
Servicing Agreement, the Seller may deliver a true copy thereof with a          
certification by the Seller, on the face of such copy, substantially as follows:
"Certified to be a true and correct copy of the original, which has been        
transmitted for recording" or (B) the related Mortgaged Property is located in a
state other than Maryland and an Opinion of Counsel has been provided as set    
forth in Section 2.01(b) of the Sale and Servicing Agreement, shall be in       
recordable form);                                                               

4. all intervening assignments of the Security Instrument, if 
applicable and only to the extent available to the Mortgage Loan Seller with    
evidence of recording thereon;                                                  

    5.  the original or a copy of the policy or certificate of primary
mortgage guaranty insurance, to the extent available, if any;                   

E-28

EX-99.1
87th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 87th
6. the original or copy of the policy of title insurance or   
mortgagee's certificate of title insurance or commitment or binder for title    
insurance; and                                                                  

7. originals of all modification agreements, if applicable and
available.                                                                      

E-29

EX-99.1
88th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 88th
 EXHIBIT 2

MORTGAGE LOAN SCHEDULE INFORMATION

       The Preliminary and Final Mortgage Loan Schedules shall set forth the
following information with respect to each Mortgage Loan:                       

(a) the loan number;                                                            

(b) the city, state and zip code of the Mortgaged Property;                     

(c) the property type;                                                          

(d) the Mortgage Interest Rate;                                                 

(e) the Servicing Fee Rate;                                                     

(f) the Net Rate;                                                               

(g) the original term to maturity;                                              

(h) the maturity date;                                                          

(i) the stated remaining term to maturity;                                      

(j) the original principal balance;                                             

(k) the first payment date;                                                     

(l) the Monthly Payment in effect as of the Cut-off Date;                       

(m) the Cut-off Date Principal Balance;                                         

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

(o) the paid-through date of the Mortgage Loan;                                 

(p) the insurer of any Primary Mortgage Insurance Policy;                       

(q) the Index and Gross Margin, if applicable;                                  

(r) the Maximum Lifetime Mortgage Rate, if applicable;                          

(s) the Minimum Lifetime Mortgage Rate, if applicable;                          

(t) the Adjustment Date frequency, if applicable; and                           

(u) the number of days delinquent, if any.                                      

E-30

EX-99.1
89th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 89th
Such schedule also shall set forth the total number of Mortgage Loans, the total
of each of the amounts described under (k) and (n) above for all of the Mortgage
Loans, the weighted average by principal balance as of the Cut-off Date of each 
of the rates described under (e), (f) and (g) above for all of the Mortgage     
Loans, and the weighted average remaining term to maturity by unpaid principal  
balance as of the Cut-off Date for all of the Mortgage Loans.                   

E-31

EX-99.1
90th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 90th
 EXHIBIT 3

MORTGAGE LOAN SELLER'S INFORMATION

  All information in the Prospectus Supplement described under the
following Sections: "SUMMARY OF PROSPECTUS SUPPLEMENT -- The Mortgage Loans,"   
"THE MORTGAGE POOL" and "SCHEDULE A -- CERTAIN CHARACTERISTICS OF THE MORTGAGE  
LOANS."                                                                         

E-32

EX-99.1
91st Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 91st
 EXHIBIT 4

 PURCHASER'S INFORMATION

         All information in the Prospectus Supplement and the Prospectus, except
the Mortgage Loan Seller's Information.                                         

E-33

EX-99.1
92nd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 92nd
 EXHIBIT 5

SCHEDULE OF LOST NOTES

Available Upon Request

E-34

EX-99.1
93rd Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 93rd
 EXHIBIT 6

STANDARD & POOR'S LEVELS GLOSSARY,

 VERSION 5.6 REVISED, APPENDIX E

APPENDIX E: Standard & Poor's Predatory Lending Categorization

                                                            REVISED July 7, 2004

Standard & Poor's has categorized loans governed by anti-predatory lending laws 
in the Jurisdictions listed below into three categories based upon a combination
of factors that include (a) the risk exposure associated with the assignee      
liability and (b) the tests and thresholds set forth in those laws. Note that   
certain loans classified by the relevant statute as Covered are included in     
Standard & Poor's High Cost Loan Category because they included thresholds and  
tests that are typical of what is generally considered High Cost by the         
industry.                                                                       

                                                        [Enlarge/Download Table]


---------------------------------------------------------------------------------------------------------------------
       State/Jurisdiction           Name of Anti-Predatory Lending Law/Effective       Category under Applicable     
                                                         Date                          Anti-Predatory Lending Law    
---------------------------------- ------------------------------------------------- --------------------------------
                                                                                                                     
Arkansas                           Arkansas  Home Loan  Protection  Act,  Ark. Code    High Cost Home Loan           
                                   Ann. ss.ss. 23-53-101 et seq.                                                     

                                   Effective July 16, 2003                                                           
---------------------------------- ------------------------------------------------- --------------------------------

Cleveland Heights, OH              Ordinance  No.  72-2003  (PSH),   Mun.  Code        Covered Loan                  
                                   ss.ss. 757.01 et seq.                                                             

                                   Effective June 2, 2003                                                            
---------------------------------- ------------------------------------------------- --------------------------------

Colorado                           Consumer Equity Protection,  Colo. Stat. Ann.       Covered Loan                  
                                   ss.ss. 5-3.5-101 et seq.                                                          

                                   Effective for covered loans offered or entered                                    
                                   into  on  or  after   January  1,  2003.   Other                                  
                                   provisions  of the Act  took  effect  on June 7,                                  
                                   2002                                                                              
---------------------------------- ------------------------------------------------- --------------------------------
Connecticut                        Connecticut  Abusive Home Loan Lending Practices    High Cost Home Loan           
                                   Act, Conn. Gen. Stat. ss.ss. 36a-746 et seq.                                      

                                   Effective October 1, 2001                                                         
---------------------------------- ------------------------------------------------- --------------------------------


E-35

EX-99.1
94th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 94th
SCHEDULE A

REQUIRED RATINGS FOR EACH CLASS OF NOTES

 Notes

                      CLASS            S&P/MOODY'S
     Class A-1..................       AAA/Aaa
     Class A-2..................       AAA/Aaa
    Class M-1..................       AA/Aa2
   Class M-2..................        A/A2
     Class B-1..................      BBB/Baa2

--------------------------------------------------------------------------------
None of the above ratings has been lowered since the respective dates of such   
letters.                                                                        

E-36

EX-99.1
95th Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 95th
SCHEDULE B

MORTGAGE LOAN SCHEDULE

 [Provided upon request]

E-37

EX-99.1
Last Page of 96
TOC
1st
Previous
Next
↓Bottom
Just 96th
                                                                       EXHIBIT F

 SPECIAL SERVICING AGREEMENT

 [Provided Upon Request]

E-38

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘8-K/A’ Filing		Date		First		Last			Other Filings
		3/31/05		26
		3/15/05		26
		3/1/05		24		25
Filed on / For Period End:		12/9/04
		10/29/04		2		63			424B5
		10/27/04		62		63
		10/21/04		62
		10/1/04		63
		7/7/04		93
		7/1/04		62
		5/14/04		62
		12/30/03		63
		7/16/03		93
		6/2/03		93
		3/7/03		74
		3/6/03		74
		1/1/03		93
		10/1/02		74
		6/7/02		93
		10/1/01		93
									List all Filings