POOLING AND SERVICING AGREEMENT

Pooling and Servicing Agreement

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ACE Securities Corp | DB STRUCTURED PRODUCTS, INC | HSBC BANK USA, NATIONAL ASSOCIATION | LITTON LOAN SERVICING LP | Securities Corp, AMACAR GROUP | WELLS FARGO BANK, NA

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Title: POOLING AND SERVICING AGREEMENT
Governing Law: New York Date: 1/11/2005

ACE SECURITIES CORP.

Depositor

LITTON LOAN SERVICING LP

a Servicer

WELLS FARGO BANK, N.A.

Master Servicer and Securities Administrator

HSBC BANK USA, NATIONAL ASSOCIATION

Trustee

POOLING AND SERVICING AGREEMENT

Dated as of December 1, 2004

ACE Securities Corp. Home Equity Loan Trust, Series 2004-RM2

Asset Backed Pass-Through Certificates

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TABLE OF CONTENTS

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Page

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<S> <C>

ARTICLE I DEFINITIONS.................................................................................................4

SECTION 1.01. Defined Terms..............................................................................4

Accepted Master Servicing Practices.............................................................................4

Accepted Servicing Practices....................................................................................4

Account.........................................................................................................4

Accrued Certificate Interest....................................................................................4

Adjustable Rate Mortgage Loan...................................................................................4

Adjustment Date.................................................................................................5

Administration Fees.............................................................................................5

Administration Fee Rate.........................................................................................5

Advance Facility................................................................................................5

Advance Financing Person........................................................................................5

Advance Reimbursement Amounts...................................................................................5

Affiliate.......................................................................................................5

Aggregate Loss Severity Percentage..............................................................................5

Agreement.......................................................................................................5

Allocated Realized Loss Amount..................................................................................5

Amounts Held for Future Distribution............................................................................5

Assignment......................................................................................................5

Assignment Agreement............................................................................................6

Authorized Officers.............................................................................................6

Available Distribution Amount...................................................................................6

Balloon Mortgage Loan...........................................................................................6

Balloon Payment.................................................................................................6

Bankruptcy Code.................................................................................................6

Book-Entry Certificates.........................................................................................7

Book-Entry Custodian............................................................................................7

Business Day....................................................................................................7

Cap Contracts...................................................................................................7

Cash-Out Refinancing............................................................................................7

Certificate.....................................................................................................7

Certificate Factor..............................................................................................7

Certificate Margin..............................................................................................7

Certificateholder...............................................................................................9

Holder..........................................................................................................9

Certificate Owner...............................................................................................9

Certificate Principal Balance...................................................................................9

Certificate Register............................................................................................9

Class...........................................................................................................9

Class A Certificate.............................................................................................9

Class A Principal Distribution Amount..........................................................................10

Class A-1 Principal Loss Amount................................................................................10

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Class B Certificate............................................................................................10

Class M-1 Certificate..........................................................................................10

Class B Principal Distribution Amount..........................................................................10

Class M-1 Certificate..........................................................................................11

Class B Principal Distribution Amount..........................................................................11

Class M-1 Certificate..........................................................................................11

Class B Principal Distribution Amount..........................................................................12

Class M-1 Certificate..........................................................................................12

Class B Principal Distribution Amount..........................................................................12

Class M-1 Certificate..........................................................................................13

Class B Principal Distribution Amount..........................................................................13

Class CE Certificate...........................................................................................14

Class M Certificates...........................................................................................14

Class M-1 Certificate..........................................................................................14

Class M-1 Principal Distribution Amount........................................................................14

Class M-2 Certificate..........................................................................................15

Class M-2 Principal Distribution Amount........................................................................15

Class M-3 Certificate..........................................................................................15

Class M-3 Principal Distribution Amount........................................................................15

Class M-4 Certificate..........................................................................................16

Class M-4 Principal Distribution Amount........................................................................16

Class M-5 Certificate..........................................................................................16

Class M-5 Principal Distribution Amount........................................................................16

Class M-6 Certificate..........................................................................................17

Class M-6 Principal Distribution Amount........................................................................17

Class M-7 Certificate..........................................................................................17

Class M-7 Principal Distribution Amount........................................................................17

Class P Certificate............................................................................................18

Class R Certificates...........................................................................................18

Class R-I Interest.............................................................................................18

Class R-II Interest............................................................................................18

Closing Date...................................................................................................18

Code...........................................................................................................18

Collection Account.............................................................................................18

Commission.....................................................................................................18

Corporate Trust Office.........................................................................................18

Corresponding Certificate......................................................................................19

Credit Enhancement Percentage..................................................................................19

Custodial Account..............................................................................................19

Custodial Agreement............................................................................................19

Custodian......................................................................................................19

Cut-off Date...................................................................................................19

Debt Service Reduction.........................................................................................20

Deficient Valuation............................................................................................20

Definitive Certificates........................................................................................20

Deleted Mortgage Loan..........................................................................................20

Delinquency Percentage.........................................................................................20

Depositor......................................................................................................20

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Depository.....................................................................................................20

Depository Institution.........................................................................................20

Depository Participant.........................................................................................20

Determination Date.............................................................................................20

Directly Operate...............................................................................................21

Disqualified Organization......................................................................................21

Distribution Account...........................................................................................21

Distribution Date..............................................................................................21

Due Date.......................................................................................................21

Due Period.....................................................................................................22

Eligible Account...............................................................................................22

ERISA..........................................................................................................22

Estate in Real Property........................................................................................22

Excess Liquidation Proceeds....................................................................................22

Expense Adjusted Mortgage Rate.................................................................................22

Extraordinary Trust Fund Expense...............................................................................22

Extra Principal Distribution Amount............................................................................22

Fannie Mae.....................................................................................................22

FDIC...........................................................................................................22

Final Maturity Date............................................................................................22

Final Recovery Determination...................................................................................23

Freddie Mac....................................................................................................23

Gross Margin...................................................................................................23

Independent....................................................................................................23

Independent Contractor.........................................................................................23

Index..........................................................................................................24

Institutional Accredited Investor..............................................................................24

Insurance Proceeds.............................................................................................24

Interest Accrual Period........................................................................................24

Interest Carry Forward Amount..................................................................................24

Interest Distribution Amount...................................................................................24

Group I Interest Remittance Amount.............................................................................24

Last Scheduled Distribution Date...............................................................................25

Late Collections...............................................................................................25

Litton Mortgage Loans..........................................................................................25

Liquidation Event..............................................................................................25

Liquidation Proceeds...........................................................................................25

Loan-to-Value Ratio............................................................................................25

London Business Day............................................................................................25

Loss Severity Percentage.......................................................................................26

Marker Rate....................................................................................................26

Master Servicer................................................................................................26

Master Servicer Certification..................................................................................26

Master Servicer Event of Default...............................................................................26

Master Servicer Fee Rate.......................................................................................26

Master Servicing Fee...........................................................................................26

Maximum I-LTZZ Uncertificated Interest Deferral Amount.........................................................27

Maximum Mortgage Rate..........................................................................................27

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MERS...........................................................................................................27

MERS(R) System...................................................................................................27

Mezzanine Certificate..........................................................................................27

MIN............................................................................................................27

Minimum Mortgage Rate..........................................................................................27

MOM Loan.......................................................................................................27

Monthly Payment................................................................................................27

Moody's........................................................................................................28

Mortgage.......................................................................................................28

Mortgage File..................................................................................................28

Mortgage Loan..................................................................................................28

Mortgage Loan Documents........................................................................................28

Mortgage Loan Purchase Agreement...............................................................................28

Mortgage Loan Schedule.........................................................................................28

Mortgage Note..................................................................................................30

Mortgage Rate..................................................................................................30

Mortgaged Property.............................................................................................31

Mortgagor......................................................................................................31

Net Monthly Excess Cashflow....................................................................................31

Net Mortgage Rate..............................................................................................31

Net WAC Pass-Through Rate......................................................................................31

Net WAC Rate Carryover Amount..................................................................................31

New Lease......................................................................................................32

Nonrecoverable P&I Advance.....................................................................................32

Nonrecoverable Servicing Advance...............................................................................32

Non-United States Person.......................................................................................32

Notional Amount................................................................................................32

Offered Certificates...........................................................................................32

Officer's Certificate..........................................................................................32

One-Month LIBOR................................................................................................32

One-Month LIBOR Pass-Through Rate..............................................................................33

Opinion of Counsel.............................................................................................34

Optional Termination Date......................................................................................34

Originators....................................................................................................34

Overcollateralization Amount...................................................................................34

Overcollateralization Increase Amount..........................................................................34

Overcollateralization Reduction Amount.........................................................................34

Ownership Interest.............................................................................................35

P&I Advance....................................................................................................35

Pass-Through Rate..............................................................................................35

Percentage Interest............................................................................................36

Periodic Rate..................................................................................................37

Permitted Investments..........................................................................................37

Permitted Transferee...........................................................................................38

Person.........................................................................................................38

Plan...........................................................................................................39

Prepayment Assumption..........................................................................................39

Prepayment Charge..............................................................................................39

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Prepayment Charge Schedule.....................................................................................39

Prepayment Interest Excess.....................................................................................39

Prepayment Interest Shortfall..................................................................................40

Prepayment Period..............................................................................................40

Principal Prepayment...........................................................................................40

Group I Principal Distribution Amount..........................................................................40

Group I Principal Remittance Amount............................................................................40

Purchase Price.................................................................................................40

QIB............................................................................................................41

Qualified Substitute Mortgage Loan.............................................................................41

Rate/Term Refinancing..........................................................................................42

Rating Agency or Rating Agencies...............................................................................42

Realized Loss..................................................................................................42

Record Date....................................................................................................43

Reference Banks................................................................................................43

Refinanced Mortgage Loan.......................................................................................44

Regular Certificate............................................................................................44

Regular Interest...............................................................................................44

Regulation S Temporary Global Certificate......................................................................44

Regulation S Permanent Global..................................................................................44

Release Date...................................................................................................44

Relief Act.....................................................................................................44

Relief Act Interest Shortfall..................................................................................44

REMIC..........................................................................................................44

REMIC I........................................................................................................44

REMIC I Interest Loss Allocation Amount........................................................................45

REMIC I Overcollateralization..................................................................................45

REMIC I Principal Loss Allocation Amount.......................................................................45

REMIC I Regular Interest.......................................................................................45

REMIC I Regular Interest I-LTAA................................................................................45

REMIC I Regular Interest I-LTA1................................................................................46

REMIC I Regular Interest I-LTB.................................................................................46

REMIC I Regular Interest I-LTM1................................................................................46

REMIC I Regular Interest I-LTM2................................................................................47

REMIC I Regular Interest I-LTM3................................................................................47

REMIC I Regular Interest I-LTM4................................................................................47

REMIC I Regular Interest I-LTM5................................................................................47

REMIC I Regular Interest I-LTM6................................................................................47

REMIC I Regular Interest I-LTM7................................................................................47

REMIC I Regular Interest I-LTP.................................................................................47

REMIC I Regular Interest I-LTZZ................................................................................48

REMIC I Remittance Rate........................................................................................48

REMIC I Required Overcollateralization.........................................................................48

REMIC II.......................................................................................................48

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REMIC II Certificate...........................................................................................48

REMIC II Certificateholder.....................................................................................48

REMIC Provisions...............................................................................................48

REMIC Regular Interest.........................................................................................48

REMIC Remittance Rate..........................................................................................48

Remittance Report..............................................................................................48

Rents from Real Property.......................................................................................48

REO Account....................................................................................................48

REO Disposition................................................................................................49

REO Imputed Interest...........................................................................................49

REO Principal Amortization.....................................................................................49

REO Property...................................................................................................49

Required Overcollateralization.................................................................................49

Reserve Fund...................................................................................................49

Reserve Interest Rate..........................................................................................49

Residential Dwelling...........................................................................................50

Residual Certificate...........................................................................................50

Residual Interest..............................................................................................50

Responsible Officer............................................................................................50

Rule...........................................................................................................50

S&P............................................................................................................50

Scheduled Principal Balance....................................................................................50

Securities.....................................................................................................51

Securities Administrator.......................................................................................51

Seller.........................................................................................................51

Senior Interest Distribution Amount............................................................................51

Servicer.......................................................................................................51

Servicer Event of Default......................................................................................51

Servicer Remittance Date.......................................................................................51

Servicer Report................................................................................................51

Servicing Advance..............................................................................................51

Servicing Agreement............................................................................................52

Servicing Fee..................................................................................................52

Servicing Fee Rate.............................................................................................52

Servicing Officer..............................................................................................52

Servicing Transfer Date........................................................................................52

Single Certificate.............................................................................................52

Startup Day....................................................................................................52

Stated Principal Balance.......................................................................................52

Stepdown Date..................................................................................................53

Subordinate Certificates.......................................................................................53

Subsequent Recoveries..........................................................................................53

Sub-Servicer...................................................................................................53

Sub-Servicing Agreement........................................................................................54

Substitution Shortfall Amount..................................................................................54

Tax Returns....................................................................................................54

Telerate Page..................................................................................................54

Termination Price..............................................................................................54

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Terminator.....................................................................................................54

Transfer.......................................................................................................54

Transferee.....................................................................................................54

Transferor.....................................................................................................54

Trigger Event..................................................................................................54

Trust..........................................................................................................54

Trust Fund.....................................................................................................55

Trust REMIC....................................................................................................55

Trustee........................................................................................................55

Uncertificated Balance.........................................................................................55

Uncertificated Interest........................................................................................55

Uninsured Cause................................................................................................55

United States Person...........................................................................................55

Value..........................................................................................................56

Verification Report............................................................................................56

Voting Rights..................................................................................................56

Wells Fargo....................................................................................................56

SECTION 1.02. Allocation of Certain Interest Shortfalls.................................................56

ARTICLE II CONVEYANCE OF MORTGAGE LOANS;.............................................................................58

SECTION 2.01. Conveyance of the Mortgage Loans..........................................................58

SECTION 2.02. Acceptance of REMIC I by Trustee..........................................................59

SECTION 2.03. Repurchase or Substitution of Mortgage Loans..............................................59

SECTION 2.04. Representations and Warranties of the Master Servicer.....................................62

SECTION 2.05. Representations, Warranties and Covenants of the Servicer.................................63

SECTION 2.06. Issuance of the REMIC I Regular Interests and the Class R-I Interest......................65

SECTION 2.07. Conveyance of the REMIC I Regular Interests; Acceptance of REMIC I by the Trustee.........66

SECTION 2.08. Issuance of Residual Certificates.........................................................66

SECTION 2.09. Establishment of the Trust................................................................66

ARTICLE III ADMINISTRATION AND SERVICING OF THE LITTON MORTGAGE LOANS; ACCOUNTS......................................67

SECTION 3.01. The Servicer to Act as a Servicer.........................................................67

SECTION 3.02. Sub-Servicing Agreements Between the Servicer and Sub-Servicers...........................70

SECTION 3.03. Successor Sub-Servicers...................................................................70

SECTION 3.04. No Contractual Relationship Between Sub-Servicer, Trustee or the Certificateholders.......71

SECTION 3.05. Assumption or Termination of Sub-Servicing Agreement by Successor Servicer................71

SECTION 3.06. Collection of Certain Mortgage Loan Payments..............................................71

SECTION 3.07. Collection of Taxes, Assessments and Similar Items; Servicing Accounts....................72

SECTION 3.08. Collection Account and Distribution Account...............................................73

SECTION 3.09. Withdrawals from the Collection Account and Distribution Account..........................75

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SECTION 3.10. Investment of Funds in the Investment Accounts............................................77

SECTION 3.11. Maintenance of Hazard Insurance, Errors and Omissions and Fidelity Coverage and Primary

Mortgage Insurance........................................................................78

SECTION 3.12. Enforcement of Due-on-Sale Clauses; Assumption Agreements.................................80

SECTION 3.13. Realization Upon Defaulted Mortgage Loans.................................................81

SECTION 3.14. Trustee to Cooperate; Release of Mortgage Files...........................................84

SECTION 3.15. Servicing Compensation....................................................................85

SECTION 3.16. Collection Account Statements.............................................................85

SECTION 3.17. Statement as to Compliance................................................................86

SECTION 3.18. Independent Public Accountants' Servicing Report..........................................86

SECTION 3.19. Annual Certification......................................................................86

SECTION 3.20. Access to Certain Documentation...........................................................87

SECTION 3.21. Title, Management and Disposition of REO Property.........................................87

SECTION 3.22. Obligations of the Servicer in Respect of Prepayment Interest Shortfalls; Relief Act

Interest Shortfalls.......................................................................90

SECTION 3.23. Obligations of the Servicer in Respect of Mortgage Rates and Monthly Payments............91

SECTION 3.24. Reserve Fund..............................................................................91

SECTION 3.25. Advance Facility..........................................................................92

SECTION 3.26. The Servicer Indemnification..............................................................95

ARTICLE IV ADMINISTRATION AND MASTER SERVICING OF THE MORTGAGE LOANS BY THE MASTER SERVICER..........................96

SECTION 4.01. Master Servicer...........................................................................96

SECTION 4.02. REMIC-Related Covenants...................................................................97

SECTION 4.03. Monitoring of Servicer....................................................................97

SECTION 4.04. Fidelity Bond.............................................................................98

SECTION 4.05. Power to Act; Procedures..................................................................98

SECTION 4.06. Due-on-Sale Clauses; Assumption Agreements................................................99

SECTION 4.07. Documents, Records and Funds in Possession of Master Servicer To Be Held for Trustee.....100

SECTION 4.08. Standard Hazard Insurance and Flood Insurance Policies...................................100

SECTION 4.09. Presentment of Claims and Collection of Proceeds.........................................100

SECTION 4.10. Maintenance of Primary Mortgage Insurance Policies.......................................101

SECTION 4.11. Trustee to Retain Possession of Certain Insurance Policies and Documents.................101

SECTION 4.12. Realization Upon Defaulted Mortgage Loans................................................101

SECTION 4.13. Compensation for the Master Servicer.....................................................102

SECTION 4.14. REO Property.............................................................................102

SECTION 4.15. Annual Officer's Certificate as to Compliance............................................102

SECTION 4.16. Annual Independent Accountant's Servicing Report.........................................103

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SECTION 4.17. UCC......................................................................................103

SECTION 4.18. Obligation of the Master Servicer in Respect of Prepayment Interest Shortfalls...........104

ARTICLE V PAYMENTS TO CERTIFICATEHOLDERS............................................................................105

SECTION 5.01. Distributions............................................................................105

SECTION 5.02. Statements to Certificateholders.........................................................117

SECTION 5.03. Servicer Reports; P&I Advances...........................................................120

SECTION 5.04. Allocation of Realized Losses............................................................122

SECTION 5.05. Compliance with Withholding Requirements.................................................125

SECTION 5.06. Reports Filed with Securities and Exchange Commission....................................125

ARTICLE VI THE CERTIFICATES.........................................................................................127

SECTION 6.01. The Certificates.........................................................................127

SECTION 6.02. Registration of Transfer and Exchange of Certificates....................................129

SECTION 6.03. Mutilated, Destroyed, Lost or Stolen Certificates........................................134

SECTION 6.04. Persons Deemed Owners....................................................................135

SECTION 6.05. Certain Available Information............................................................135

ARTICLE VII THE DEPOSITOR, THE SERVICER AND THE MASTER SERVICER.....................................................136

SECTION 7.01. Liability of the Depositor, the Servicer and the Master Servicer.........................136

SECTION 7.02. Merger or Consolidation of the Depositor, the Servicer or the Master Servicer............136

SECTION 7.03. Limitation on Liability of the Depositor, the Servicer, the Master Servicer and Others...136

SECTION 7.04. Limitation on Resignation of the Servicer................................................137

SECTION 7.05. Limitation on Resignation of the Master Servicer.........................................138

SECTION 7.06. Assignment of Master Servicing...........................................................138

SECTION 7.07. Rights of the Depositor in Respect of the Servicer and the Master Servicer...............139

ARTICLE VIII DEFAULT................................................................................................141

SECTION 8.01. Servicer Events of Default...............................................................141

SECTION 8.02. Master Servicer to Act; Appointment of Successor.........................................144

SECTION 8.03. Notification to Certificateholders.......................................................147

SECTION 8.04. Waiver of Servicer Events of Default.....................................................147

ARTICLE IX CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR..................................................148

SECTION 9.01. Duties of Trustee and Securities Administrator...........................................148

SECTION 9.02. Certain Matters Affecting Trustee and Securities Administrator...........................149

SECTION 9.03. Trustee and Securities Administrator not Liable for Certificates or Mortgage Loans.......151

SECTION 9.04. Trustee and Securities Administrator May Own Certificates................................151

SECTION 9.05. Fees and Expenses of Trustee and Securities Administrator................................151

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SECTION 9.06. Eligibility Requirements for Trustee and Securities Administrator........................152

SECTION 9.07. Resignation and Removal of Trustee and Securities Administrator..........................153

SECTION 9.08. Successor Trustee or Securities Administrator............................................154

SECTION 9.09. Merger or Consolidation of Trustee or Securities Administrator...........................154

SECTION 9.10. Appointment of Co-Trustee or Separate Trustee............................................155

SECTION 9.11. Appointment of Office or Agency..........................................................155

SECTION 9.12. Representations and Warranties...........................................................156

ARTICLE X TERMINATION...............................................................................................157

SECTION 10.01. Termination Upon Repurchase or Liquidation of All Mortgage Loans.........................157

SECTION 10.02. Additional Termination Requirements......................................................159

ARTICLE XI REMIC PROVISIONS.........................................................................................160

SECTION 11.01. REMIC Administration.....................................................................160

SECTION 11.02. Prohibited Transactions and Activities...................................................162

SECTION 11.03. Indemnification..........................................................................163

ARTICLE XII MISCELLANEOUS PROVISIONS................................................................................164

SECTION 12.01. Amendment................................................................................164

SECTION 12.02. Recordation of Agreement; Counterparts...................................................165

SECTION 12.03. Limitation on Rights of Certificateholders...............................................165

SECTION 12.04. Governing Law............................................................................166

SECTION 12.05. Notices..................................................................................166

SECTION 12.06. Severability of Provisions...............................................................167

SECTION 12.07. Notice to Rating Agencies................................................................167

SECTION 12.08. Article and Section References...........................................................168

SECTION 12.09. Grant of Security Interest...............................................................168

SECTION 12.10. Survival of Indemnification..............................................................169

SECTION 12.11. Servicing Agreements.....................................................................169

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Exhibits

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Exhibit A-1 Form of Class A Certificate

Exhibit A-2 Form of Class M Certificate

Exhibit A-3 Form of Class B Certificate

Exhibit A-4 Form of Class CE Certificate

Exhibit A-5 Form of Class P Certificate

Exhibit A-6 Form of Class R Certificate

Exhibit B-1 Form of Transferor Representation Letter and Form of

Transferee Representation Letter in Connection with Transfer

of the Class B Certificates, Class P Certificates, Class CE

Certificates and Residual Certificates Pursuant to Rule 144A

Under the 1933 Act

Exhibit B-2 Form of Transferor Representation Letter and Form of

Transferee Representation Letter in Connection with Transfer

of the Class B Certificates, Class P Certificates, Class CE

Certificates and Residual Certificates Pursuant to Rule 501

(a) Under the 1933 Act

Exhibit B-3 Form of Transfer Affidavit and Agreement and Form of

Transferor Affidavit in Connection with Transfer of Residual

Certificates

Exhibit C Form of Servicer Certification

Exhibit D Form of Power of Attorney

Schedule 1 Mortgage Loan Schedule

Schedule 2 Prepayment Charge Schedule

Schedule 3 Reserved.

Schedule 4 Standard File Layout - Delinquency Reporting

Schedule 5 Standard File Layout - Scheduled/Scheduled

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This Pooling and Servicing Agreement, is dated and effective

as of December 1, 2004, among ACE SECURITIES CORP., as Depositor, LITTON LOAN

SERVICING LP, as a Servicer, WELLS FARGO BANK, N.A., as Master Servicer and

Securities Administrator and HSBC BANK USA, NATIONAL ASSOCIATION, as Trustee.

PRELIMINARY STATEMENT:

The Depositor intends to sell pass-through certificates to be

issued hereunder in multiple classes, which in the aggregate will evidence the

entire beneficial ownership interest of the Trust Fund created hereunder. The

Trust Fund will consist of a segregated pool of assets comprised of the Mortgage

Loans and certain other related assets subject to this Agreement.

REMIC I

-------

As provided herein, the Trustee will elect to treat the

segregated pool of assets consisting of the Mortgage Loans and certain other

related assets subject to this Agreement (other than the Reserve Fund) as a

REMIC for federal income tax purposes, and such segregated pool of assets will

be designated as "REMIC I". The Class R-I Interest will be the sole class of

"residual interests" in REMIC I for purposes of the REMIC Provisions (as defined

herein). The following table irrevocably sets forth the designation, the REMIC I

Remittance Rate, the initial Uncertificated Balance and, solely for purposes of

satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible

maturity date" for each of the REMIC I Regular Interests (as defined herein).

None of the REMIC I Regular Interests will be certificated.

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REMIC I INITIAL

REMITTANCE UNCERTIFICATED LATEST POSSIBLE

DESIGNATION RATE BALANCE MATURITY DATE (1)

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

I-LTAA Variable(2) $676,469,411 50 January 25, 2035

I-LTA Variable(2) $ 5,408,300 00 January 25, 2035

I-LTM1 Variable(2) $ 241,600 00 January 25, 2035

I-LTM2 Variable(2) $ 231,240 00 January 25, 2035

I-LTM3 Variable(2) $ 131,150 00 January 25, 2035

I-LTM4 Variable(2) $ 117,350 00 January 25, 2035

I-LTM5 Variable(2) $ 113,900 00 January 25, 2035

I-LTM6 Variable(2) $ 103,540 00 January 25, 2035

I-LTM7 Variable(2) $ 96,640 00 January 25, 2035

I-LTB1 Variable(2) $ 79,380 00 January 25, 2035

I-LTB2 Variable(2) $ 69,030 00 January 25, 2035

I-LTB3 Variable(2) $ 69,030 00 January 25, 2035

I-LTB4 Variable(2) $ 62,120 00 January 25, 2035

I-LTB5 Variable(2) $ 113,900 00 January 25, 2035

I-LTZZ Variable(2) $ 6,968,318 19 January 25, 2035

I-LTP Variable(2) $ 100 00 January 25, 2035

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

(1) For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury

regulations, the Distribution Date immediately following the maturity

date for the Mortgage Loan with the latest maturity date has been

designated as the "latest possible maturity date" for each REMIC I

Regular Interest.

(2) Calculated in accordance with the definition of "REMIC I Remittance

Rate" herein.

REMIC II

--------

As provided herein, the Trustee will elect to treat the

segregated pool of assets consisting of the REMIC I Regular Interests as a REMIC

for federal income tax purposes, and such segregated pool of assets will be

designated as "REMIC II." The Class R-II Interest will evidence the sole class

of "residual interests" in REMIC II for purposes of the REMIC Provisions. The

following table irrevocably sets forth the designation, the Pass-Through Rate,

the initial aggregate Certificate Principal Balance and, solely for purposes of

satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible

maturity date" for the indicated Classes of Certificates.

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INITIAL AGGREGATE

CERTIFICATE PRINCIPAL LATEST POSSIBLE

DESIGNATION PASS-THROUGH RATE BALANCE MATURITY DATE (1)

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

Class A Variable(2) $ 540,830,000 January 25, 2035

Class M-1 Variable(2) $ 24,160,000 January 25, 2035

Class M-2 Variable(2) $ 23,124,000 January 25, 2035

Class M-3 Variable(2) $ 13,115,000 January 25, 2035

Class M-4 Variable(2) $ 11,735,000 January 25, 2035

Class M-5 Variable(2) $ 11,390,000 January 25, 2035

Class M-6 Variable(2) $ 10,354,000 January 25, 2035

Class M-7 Variable(2) $ 9,664,000 January 25, 2035

Class B-1 Variable(2) $ 7,938,000 January 25, 2035

Class B-2 Variable(2) $ 6,903,000 January 25, 2035

Class B-3 Variable(2) $ 6,903,000 January 25, 2035

Class B-4 Variable(2) $ 6,212,000 January 25, 2035

Class B-5 Variable(2) $ 11,390,000 January 25, 2035

Class P N/A(3) $ 100 January 25, 2035

Class CE N/A(4) $ 6,556,910 January 25, 2035

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

(1) For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury

regulations, the Distribution Date immediately following the maturity

date for the Mortgage Loan with the latest maturity date has been

designated as the "latest possible maturity date" for each Class of

Certificates.

(2) Calculated in accordance with the definition of "Pass-Through Rate"

herein. (3) The Class P Certificates will not accrue interest.

(4) The Class CE Certificates will accrue interest at their variable

Pass-Through Rate on the Notional Amount of the Class CE Certificates

outstanding from time to time which shall equal the Uncertificated

Balance of the REMIC I Regular Interests (other than REMIC I Regular

Interest I-LTP). The Class CE Certificates will not accrue interest on

their Certificate Principal Balance.

As of the Cut-off Date, the Mortgage Loans had an aggregate

Scheduled Principal Balance equal to approximately $690,275,010.

In consideration of the mutual agreements herein contained,

the Depositor, the Servicer, the Master Servicer, the Securities Administrator

and the Trustee agree as follows:

<PAGE>

ARTICLE I

DEFINITIONS

SECTION 1.01. Defined Terms.

Whenever used in this Agreement, including, without

limitation, in the Preliminary Statement hereto, the following words and

phrases, unless the context otherwise requires, shall have the meanings

specified in this Article. Unless otherwise specified, all calculations

described herein shall be made on the basis of a 360-day year consisting of

twelve 30-day months.

"Accepted Master Servicing Practices": With respect to any

Mortgage Loan, as applicable, either (x) those customary mortgage master

servicing practices of prudent mortgage servicing institutions that master

service mortgage loans of the same type and quality as such Mortgage Loan in the

jurisdiction where the related Mortgaged Property is located, to the extent

applicable to the Master Servicer (except in its capacity as successor to the

Servicer), or (y) as provided in Section 3.01 hereof, but in no event below the

standard set forth in clause (x).

"Accepted Servicing Practices": As defined in Section 3.01.

"Account": The Collection Account and the Distribution Account

as the context may require.

"Accrued Certificate Interest": With respect to any Class A

Certificate, Mezzanine Certificate, Class B Certificate or Class CE Certificate

and each Distribution Date, interest accrued during the related Interest Accrual

Period at the Pass-Through Rate for such Certificate for such Distribution Date

on the Certificate Principal Balance, in the case of the Class A Certificates,

the Mezzanine Certificates and the Class B Certificates, or on the Notional

Amount in the case of the Class CE Certificates, of such Certificate immediately

prior to such Distribution Date. The Class P Certificates are not entitled to

distributions in respect of interest and, accordingly, will not accrue interest.

All distributions of interest on the Class A Certificates, the Mezzanine

Certificates and the Class B Certificates will be calculated on the basis of a

360-day year and the actual number of days in the applicable Interest Accrual

Period. All distributions of interest on the Class CE Certificates will be based

on a 360-day year consisting of twelve 30-day months. Accrued Certificate

Interest with respect to each Distribution Date, as to any Class A Certificate,

Mezzanine Certificate, Class B Certificate or Class CE Certificate shall be

reduced by an amount equal to the portion allocable to such Certificate pursuant

to Section 1.02 hereof, if any, of the sum of (a) the aggregate Prepayment

Interest Shortfall, if any, for such Distribution Date to the extent not covered

by payments pursuant to Section 3.22 or Section 4.18 of this Agreement or

pursuant to the Servicing Agreement and (b) the aggregate amount of any Relief

Act Interest Shortfall, if any, for such Distribution Date. In addition, Accrued

Certificate Interest with respect to each Distribution Date, as to any Class CE

Certificate, shall be reduced by an amount equal to the portion allocable to

such Class CE Certificate of Realized Losses, if any, pursuant to Section 1.02

and Section 5.04 hereof.

"Adjustable Rate Mortgage Loan": Each of the Mortgage Loans

identified in the Mortgage Loan Schedule as having a Mortgage Rate that is

subject to adjustment.

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"Adjustment Date": With respect to each Adjustable Rate

Mortgage Loan, the first day of the month in which the Mortgage Rate of an

Adjustable Rate Mortgage Loan changes pursuant to the related Mortgage Note. The

first Adjustment Date following the Cut-off Date as to each Adjustable Rate

Mortgage Loan is set forth in the Mortgage Loan Schedule.

"Administration Fees": The sum of (i) the Servicing Fee and

(ii) the Master Servicing Fee.

"Administration Fee Rate": The sum of (i) the Servicing Fee

Rate and (ii) the Master Servicer Fee Rate.

"Advance Facility": As defined in Section 3.25(a).

"Advance Facility Notice": As defined in Section 3.25(b).

"Advance Financing Person": As defined in Section 3.25(a).

"Advance Reimbursement Amounts": As defined in Section

3.25(b).

"Affiliate": With respect to any specified Person, any other

Person controlling or controlled by or under common control with such specified

Person. For the purposes of this definition, "control" when used with respect to

any specified Person means the power to direct the management and policies of

such Person, directly or indirectly, whether through the ownership of voting

securities, by contract or otherwise, and the terms "controlling" and

"controlled" have meanings correlative to the foregoing.

"Aggregate Loss Severity Percentage": With respect to any

Distribution Date, the percentage equivalent of a fraction, the numerator of

which is the aggregate amount of Realized Losses incurred on any Mortgage Loans

from the Cut-off Date to the last day of the preceding calendar month and the

denominator of which is the aggregate principal balance of such Mortgage Loans

immediately prior to the liquidation of such Mortgage Loans.

"Agreement": This Pooling and Servicing Agreement, including

all exhibits and schedules hereto and all amendments hereof and supplements

hereto.

"Allocated Realized Loss Amount": With respect to any Class of

Mezzanine Certificates or Class B Certificates and any Distribution Date, an

amount equal to the sum of any Realized Loss allocated to that Class of

Certificates on the Distribution Date and any Allocated Realized Loss Amount for

that Class remaining unpaid from the previous Distribution Date.

"Amounts Held for Future Distribution": As to any Distribution

Date, the aggregate amount held in the Custodial Accounts and the Collection

Account at the close of business on the immediately preceding Determination Date

on account of (i) all Monthly Payments or portions thereof received in respect

of the Mortgage Loans due after the related Due Period and (ii) Principal

Prepayments and Liquidation Proceeds received in respect of such Mortgage Loans

after the last day of the related Prepayment Period.

"Assignment": An assignment of Mortgage, notice of transfer or

equivalent instrument, in recordable form, which is sufficient under the laws of

the jurisdiction wherein the

<PAGE>

related Mortgaged Property is located to reflect of record the sale of the

Mortgage, which assignment, notice of transfer or equivalent instrument may be

in the form of one or more blanket assignments covering Mortgages secured by

Mortgaged Properties located in the same county, if permitted by law.

"Assignment Agreement": The Assignment, Assumption and

Recognition Agreement, dated as of December 29, 2004, by and among the Seller,

the Depositor, RMC and RMAE evidencing the assignment of the Servicing Agreement

to the Depositor.

"Authorized Officers": A managing director of the whole loan

trading desk and a managing director in global markets.

"Available Distribution Amount": With respect to any

Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the

amounts on deposit in the Custodial Accounts, Collection Account and

Distribution Account as of the close of business on the Servicer Remittance

Date, (b) the aggregate of any amounts deposited in the Distribution Account by

the Servicer or the Master Servicer in respect of Prepayment Interest Shortfalls

for such Distribution Date pursuant to Section 3.22 or Section 4.18 of this

Agreement or by RMC or RMAE pursuant to the Servicing Agreement, (c) the

aggregate of any P&I Advances for such Distribution Date made by the Servicer

pursuant to Section 5.03 of this Agreement or by RMC or RMAE pursuant to the

Servicing Agreement and (d) the aggregate of any P&I Advances made by a

successor Servicer (including the Master Servicer) for such Distribution Date

pursuant to Section 8.02 of this Agreement or pursuant to the Servicing

Agreement, reduced (to not less than zero) by (2) the portion of the amount

described in clause (1)(a) above that represents (i) Amounts Held for Future

Distribution, (ii) Principal Prepayments on the Mortgage Loans received after

the related Prepayment Period (together with any interest payments received with

such Principal Prepayments to the extent they represent the payment of interest

accrued on the Mortgage Loans during a period subsequent to the related

Prepayment Period), (iii) Liquidation Proceeds and Insurance Proceeds received

in respect of the Mortgage Loans after the related Prepayment Period, (iv)

amounts reimbursable or payable to the Depositor, a Servicer, the Trustee, the

Master Servicer, the Securities Administrator or the Custodian pursuant to

Section 3.09 or 9.05 of this Agreement or otherwise payable in respect of

Extraordinary Trust Fund Expenses or reimbursable or payable to RMC or RMAE

under the Servicing Agreement, (v) amounts deposited in the Custodial Account,

the Collection Account or the Distribution Account in error, (vi) the amount of

any Prepayment Charges collected by the Servicer, RMC or RMAE in connection with

the Principal Prepayment of any of the Mortgage Loans and (vii) amounts

reimbursable to a successor Servicer (including the Master Servicer) pursuant to

Section 8.02 of this Agreement or pursuant to the Servicing Agreement.

"Balloon Mortgage Loan": A Mortgage Loan that provides for the

payment of the unamortized principal balance of such Mortgage Loan in a single

payment, that is substantially greater than the preceding monthly payment at the

maturity of such Mortgage Loan.

"Balloon Payment": A payment of the unamortized principal

balance of a Mortgage Loan in a single payment, that is substantially greater

than the preceding Monthly Payment at the maturity of such Mortgage Loan.

"Bankruptcy Code": The Bankruptcy Reform Act of 1978 (Title 11

of the United States Code), as amended.

<PAGE>

"Book-Entry Certificates": The Offered Certificates for so

long as the Certificates of such Class shall be registered in the name of the

Depository or its nominee.

"Book-Entry Custodian": The custodian appointed pursuant to

Section 6.01.

"Business Day": Any day other than a Saturday, a Sunday or a

day on which banking or savings and loan institutions in the States of New York,

Florida, Maryland, Texas, Minnesota or in the city in which the Corporate Trust

Office of the Trustee is located, are authorized or obligated by law or

executive order to be closed.

"Cap Contract": Shall mean the Cap Contract between the

Trustee and the counterparty named thereunder, for the benefit of the Holders of

the Class A Certificates, the Mezzanine Certificates and the Class B

Certificates.

"Cash-Out Refinancing": A Refinanced Mortgage Loan the

proceeds of which are more than a nominal amount in excess of the principal

balance of any existing first mortgage plus any subordinate mortgage on the

related Mortgaged Property and related closing costs.

"Certificate": Any one of ACE Securities Corp., Asset Backed

Pass-Through Certificates, Series 2004-RM2, Class A, Class M-1, Class M-2, Class

M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class B-1, Class B-2, Class

B-3, Class B-4, Class B-5, Class P, Class CE and Class R issued under this

Agreement.

"Certificate Factor": With respect to any Class of

Certificates (other than the Residual Certificates) as of any Distribution Date,

a fraction, expressed as a decimal carried to six places, the numerator of which

is the aggregate Certificate Principal Balance (or Notional Amount, in the case

of the Class CE Certificates) of such Class of Certificates on such Distribution

Date (after giving effect to any distributions of principal and allocations of

Realized Losses resulting in reduction of the Certificate Principal Balance (or

Notional Amount, in the case of the Class CE Certificates) of such Class of

Certificates to be made on such Distribution Date), and the denominator of which

is the initial aggregate Certificate Principal Balance (or Notional Amount, in

the case of the Class CE Certificates) of such Class of Certificates as of the

Closing Date.

"Certificate Margin": With respect to the Class A Certificates

and, for purposes of the definition of "Marker Rate", REMIC I Regular Interest

I-LTA 0.310% in the case of each Distribution Date through and including the

Optional Termination Date and 0.620% in the case of each Distribution Date

thereafter.

With respect to the Class M-1 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTM1, 0.500% in

the case of each Distribution Date through and including the Optional

Termination Date and 0.750% in the case of each Distribution Date thereafter.

With respect to the Class M-2 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTM2, 0.530% in

the case of each Distribution Date through and including the Optional

Termination Date and 0.795% in the case of each Distribution Date thereafter.

<PAGE>

With respect to the Class M-3 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTM3, 0.580% in

the case of each Distribution Date through and including the Optional

Termination Date and 0.870% in the case of each Distribution Date thereafter.

With respect to the Class M-4 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTM4, 0.880% in

the case of each Distribution Date through and including the Optional

Termination Date and 1.320% in the case of each Distribution Date thereafter.

With respect to the Class M-5 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTM5, 0.930% in

the case of each Distribution Date through and including the Optional

Termination Date and 1.395% in the case of each Distribution Date thereafter.

With respect to the Class M-6 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTM6, 1.070% in

the case of each Distribution Date through and including the Optional

Termination Date and 1.605% in the case of each Distribution Date thereafter.

With respect to the Class M-7 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTM7, 1.500% in

the case of each Distribution Date through and including the Optional

Termination Date and 2.250% in the case of each Distribution Date thereafter.

With respect to the Class B-1 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTB1, 1.700% in

the case of each Distribution Date through and including the Optional

Termination Date and 2.550% in the case of each Distribution Date thereafter.

With respect to the Class B-2 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTB2, 2.800% in

the case of each Distribution Date through and including the Optional

Termination Date and 4.200% in the case of each Distribution Date thereafter.

With respect to the Class B-3 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTB3, 3.250% in

the case of each Distribution Date through and including the Optional

Termination Date and 4.875% in the case of each Distribution Date thereafter.

With respect to the Class B-4 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTB4, 3.250% in

the case of each Distribution Date through and including the Optional

Termination Date and 4.875% in the case of each Distribution Date thereafter.

With respect to the Class B-5 Certificates and, for purposes

of the definition of "Marker Rate", REMIC I Regular Interest I-LTB5, 3.250% in

the case of each Distribution Date through and including the Optional

Termination Date and 4.875% in the case of each Distribution Date thereafter.

<PAGE>

"Certificateholder" or "Holder": The Person in whose name a

Certificate is registered in the Certificate Register, except that a

Disqualified Organization or a Non-United States Person shall not be a Holder of

a Residual Certificate for any purposes hereof, and solely for the purposes of

giving any consent pursuant to this Agreement, any Certificate registered in the

name of or beneficially owned by the Depositor, the Seller, the Servicer, the

Master Servicer, the Securities Administrator, the Trustee or any Affiliate

thereof shall be deemed not to be outstanding and the Voting Rights to which it

is entitled shall not be taken into account in determining whether the requisite

percentage of Voting Rights necessary to effect any such consent has been

obtained, except as otherwise provided in Section 12.01. The Trustee and the

Securities Administrator may conclusively rely upon a certificate of the

Depositor, the Seller, the Master Servicer, the Securities Administrator or the

Servicer in determining whether a Certificate is held by an Affiliate thereof.

All references herein to "Holders" or "Certificateholders" shall reflect the

rights of Certificate Owners as they may indirectly exercise such rights through

the Depository and participating members thereof, except as otherwise specified

herein; provided, however, that the Trustee and the Securities Administrator

shall be required to recognize as a "Holder" or "Certificateholder" only the

Person in whose name a Certificate is registered in the Certificate Register.

"Certificate Owner": With respect to a Book-Entry Certificate,

the Person who is the beneficial owner of such Certificate as reflected on the

books of the Depository or on the books of a Depository Participant or on the

books of an indirect participating brokerage firm for which a Depository

Participant acts as agent.

"Certificate Principal Balance": With respect to each Class A

Certificate, Mezzanine Certificate, Class B Certificate or Class P Certificate

as of any date of determination, the Certificate Principal Balance of such

Certificate on the Distribution Date immediately prior to such date of

determination plus any Subsequent Recoveries added to the Certificate Principal

Balance of such Certificate pursuant to Section 5.04, minus all distributions

allocable to principal made thereon and Realized Losses allocated thereto, if

any, on such immediately prior Distribution Date (or, in the case of any date of

determination up to and including the first Distribution Date, the initial

Certificate Principal Balance of such Certificate, as stated on the face

thereof). With respect to each Class CE Certificate as of any date of

determination, an amount equal to the Percentage Interest evidenced by such

Certificate times the excess, if any, of (A) the then aggregate Uncertificated

Balances of the REMIC I Regular Interests over (B) the then aggregate

Certificate Principal Balances of the Class A Certificates, the Mezzanine

Certificates, the Class B Certificates and the Class P Certificates then

outstanding. The aggregate initial Certificate Principal Balance of each Class

of Regular Certificates is set forth in the Preliminary Statement hereto.

"Certificate Register": The register maintained pursuant to

Section 6.02.

"Class": Collectively, all of the Certificates bearing the

same class designation.

"Class A Certificate": Any one of the Class A Certificates

executed and authenticated by the Securities Administrator and delivered by the

Trustee, substantially in the form annexed hereto as Exhibit A-1 and evidencing

a Regular Interest in REMIC II for purposes of the REMIC Provisions.

<PAGE>

"Class A Principal Distribution Amount": With respect to any

Distribution Date on or after the Stepdown Date and on which a Trigger Event is

not in effect, the excess of (x) the Certificate Principal Balance of the Class

A Certificates immediately prior to such Distribution Date over (y) the lesser

of (A) the product of (i) 56.70% and (ii) the aggregate Stated Principal Balance

of the Mortgage Loans as of the last day of the related Due Period (after giving

effect to scheduled payments of principal due during the related Due Period, to

the extent received or advanced and unscheduled collections of principal

received during the related Prepayment Period) and (B) the aggregate Stated

Principal Balance of the Mortgage Loans as of the last day of the related Due

Period (after giving effect to scheduled payments of principal due during the

related Due Period, to the extent received or advanced and unscheduled

collections of principal received during the related Prepayment Period) minus

the product of (i) 0.50% and (ii) the aggregate principal balance of the

Mortgage Loans as of the Cut-off Date.

"Class A Principal Loss Amount": With respect to any

Distribution Date, the amount by which (i) the aggregate Certificate Principal

Balance of the Class A Certificates, after taking into account distributions in

reduction of such aggregate Certificate Principal Balance on such Distribution

Date, exceeds (ii) the aggregate Stated Principal Balance of the Mortgage Loans

as of the last day of the related Due Period (after giving effect to scheduled

payments of principal due during the related Due Period, to the extent received

or advanced, and unscheduled collections of principal received during the

related Prepayment Period).

"Class B Certificates": The Class B-1, Class B-2, Class B-3,

Class B-4 and Class B-5 Certificates.

"Class B-1 Certificate": Any one of the Class B-1 Certificates

executed and authenticated by the Securities Administrator and delivered by the

Trustee, substantially in the form annexed hereto as Exhibit A-3 and evidencing

a Regular Interest in REMIC II for purposes of the REMIC Provisions.

"Class B-1 Principal Distribution Amount": With respect to any

Distribution Date on or after the Stepdown Date and on which a Trigger Event is

not in effect, the excess of (x) the sum of (i) the Certificate Principal

Balance of the Class A Certificates (after taking into account the payment of

the Class A Principal Distribution Amount on such Distribution Date), (ii) the

Certificate Principal Balance of the Class M-1 Certificates (after taking into

account the payment of the Class M-1 Principal Distribution Amount on such

Distribution Date), (iii) the Certificate Principal Balance of the Class M-2

Certificates (after taking into account the payment of the Class M-2 Principal

Distribution Amount on such Distribution Date), (iv) the Certificate Principal

Balance of the Class M-3 Certificates (after taking into account the payment of

the Class M-3 Principal Distribution Amount on such Distribution Date), (v) the

Certificate Principal Balance of the Class M-4 Certificates (after taking into

account the payment of the Class M-4 Principal Distribution Amount on such

Distribution Date), (vi) the Certificate Principal Balance of the Class M-5

Certificates (after taking into account the payment of the Class M-5 Principal

Distribution Amount on such Distribution Date), (vii) the Certificate Principal

Balance of the Class M-6 Certificates (after taking into account the payment of

the Class M-6 Principal Distribution Amount on such Distribution Date), (viii)

the Certificate Principal Balance of the Class M-7 Certificates (after taking

into account the payment of the Class M-7 Principal Distribution Amount on such

Distribution Date), and (ix) the Certificate Principal Balance of the Class B-1

Certificates immediately prior to such Distribution Date over (y) the lesser of

<PAGE>

(A) the product of (i) 89.00% and (ii) the aggregate Stated Principal Balance of

the Mortgage Loans as of the last day of the related Due Period (after giving