POOLING AND SERVICING AGREEMENT

Pooling and Servicing Agreement

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AMACAR GROUP | DB STRUCTURED PRODUCTS, INC | Depositor, ACE Securities Corp | HSBC BANK USA, NATIONAL ASSOCIATION | MURRAYHILL COMPANY | Servicer, Saxon Mortgage Services, Inc | WELLS FARGO BANK, NA

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Title: POOLING AND SERVICING AGREEMENT
Governing Law: New York Date: 3/8/2005

ACE SECURITIES CORP.

Depositor

SAXON MORTGAGE SERVICES, INC.

Servicer

WELLS FARGO BANK, N.A.

Master Servicer and Securities Administrator

HSBC BANK USA, NATIONAL ASSOCIATION

Trustee

POOLING AND SERVICING AGREEMENT

Dated as of February 1, 2005

ACE Securities Corp. Home Equity Loan Trust, Series 2005-RM1

Asset Backed Pass-Through Certificates

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TABLE OF CONTENTS

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 Agreements....................................................6

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

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

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

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

Book-Entry Certificates..................................................6

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

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

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

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

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

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

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

Certificateholde.........................................................9

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

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

Certificate Register....................................................10

Class...................................................................10

Class A Certificate.....................................................10

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

Class A-1 Allocation Percentage.........................................10

Class A-1 Certificate...................................................10

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

Class A-1A Certificate..................................................10

Class A-1B Certificate..................................................10

Class A-2 Allocation Percentage.........................................11

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Class A-2 Certificate...................................................11

Class A-2 Principal Distribution Amount.................................11

Class A-2A Certificate..................................................11

Class A-2B Certificate..................................................11

Class A-2C Certificate..................................................11

Class B Certificate.....................................................11

Class B-1 Certificate...................................................11

Class B-1 Principal Distribution Amount.................................11

Class B-2 Certificate...................................................12

Class B-2 Principal Distribution Amount.................................12

Class B-3 Certificate...................................................13

Class B-3 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...................................................14

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

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

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

Class M-4 Certificate...................................................15

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 M-8 Certificate...................................................18

Class M-8 Principal Distribution Amount.................................18

Class M-9 Certificate...................................................19

Class M-9 Principal Distribution Amount.................................19

Class P Certificate.....................................................19

Class R Certificates....................................................20

Class R-I Interest......................................................20

Class R-II Interest.....................................................20

Closing Date............................................................20

Code....................................................................20

Collection Account......................................................20

Commission..............................................................20

Corporate Trust Office..................................................20

Corresponding Certificate...............................................20

Credit Enhancement Percentage...........................................21

Credit Risk Management Agreements.......................................21

Credit Risk Management Fee..............................................21

Credit Risk Management Fee Rate.........................................21

Credit Risk Manager.....................................................21

Custodial Account.......................................................21

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Custodial Agreement.....................................................21

Custodian...............................................................21

Cut-off Date............................................................21

DBRS....................................................................21

Debt Service Reduction..................................................22

Deficient Valuation.....................................................22

Definitive Certificates.................................................22

Deleted Mortgage Loan...................................................22

Delinquency Percentage..................................................22

Depositor...............................................................22

Depository..............................................................22

Depository Institution..................................................22

Depository Participant..................................................22

Determination Date......................................................22

Directly Operate........................................................23

Disqualified Organization...............................................23

Distribution Account....................................................23

Distribution Date.......................................................23

Due Date................................................................23

Due Period..............................................................23

Eligible Account........................................................24

ERISA...................................................................24

Estate in Real Property.................................................24

Excess Liquidation Proceeds.............................................24

Expense Adjusted Mortgage Rate..........................................24

Extraordinary Trust Fund Expense........................................24

Extra Principal Distribution Amount.....................................24

Fannie Mae..............................................................24

FDIC....................................................................24

Final Maturity Date.....................................................24

Final Recovery Determination............................................24

Freddie Mac.............................................................25

Gross Margin............................................................25

Group I Interest Remittance Amount......................................25

Group I Mortgage Loans..................................................25

Group I Principal Distribution Amount...................................25

Group I Principal Remittance Amount.....................................25

Group II Interest Remittance Amount.....................................25

Group II Mortgage Loans.................................................26

Group II Principal Distribution Amount..................................26

Group II Principal Remittance Amount....................................26

Independent.............................................................26

Independent Contractor..................................................26

Index...................................................................27

Institutional Accredited Investor.......................................27

Insurance Proceeds......................................................27

Interest Accrual Period.................................................27

Interest Carry Forward Amount...........................................27

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Interest Determination Date.............................................27

Interest Distribution Amount............................................28

Interim Servicer........................................................28

Interest Remittance Amount..............................................28

Last Scheduled Distribution Date........................................28

Late Collections........................................................28

Liquidation Event.......................................................28

Liquidation Proceeds....................................................28

Litton..................................................................28

Litton Assignment Agreement.............................................29

Litton Mortgage Loans...................................................29

Litton Servicing Agreement..............................................29

Loan-to-Value Ratio.....................................................29

London Business Day.....................................................29

Loss Severity Percentage................................................29

Marker Rate.............................................................29

Master Servicer.........................................................29

Master Servicer Certification...........................................29

Master Servicer Event of Default........................................30

Master Servicer Fee Rate................................................30

Master Servicing Fee....................................................30

Maximum I-LTZZ Uncertificated Interest Deferral Amount..................30

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

MERS....................................................................30

MERS(R) System..........................................................31

Mezzanine Certificate...................................................31

MIN.....................................................................31

Minimum Mortgage Rate...................................................31

MOM Loan................................................................31

Monthly Payment.........................................................31

Moody's.................................................................31

Mortgage................................................................31

Mortgage File...........................................................31

Mortgage Loan...........................................................31

Mortgage Loan Documents.................................................31

Mortgage Loan Purchase Agreement........................................31

Mortgage Loan Schedule..................................................32

Mortgage Note...........................................................34

Mortgage Rate...........................................................34

Mortgaged Property......................................................34

Mortgagor...............................................................34

Net Monthly Excess Cashflow.............................................34

Net Mortgage Rate.......................................................35

Net WAC Pass-Through Rate...............................................35

Net WAC Rate Carryover Amount...........................................36

New Lease...............................................................36

Nonrecoverable P&I Advance..............................................36

Nonrecoverable Servicing Advance........................................36

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Non-United States Person................................................36

Notional Amount.........................................................36

Offered Certificates....................................................36

Officer's Certificate...................................................37

One-Month LIBOR.........................................................37

One-Month LIBOR Pass-Through Rate.......................................37

Opinion of Counsel......................................................39

Optional Termination Date...............................................39

Originators.............................................................39

Overcollateralization Amount............................................39

Overcollateralization Increase Amount...................................39

Overcollateralization Reduction Amount..................................39

Ownership Interest......................................................39

P&I Advance.............................................................39

Pass-Through Rate.......................................................40

Percentage Interest.....................................................42

Periodic Rate...........................................................42

Permitted Investments...................................................42

Permitted Transferee....................................................43

Person..................................................................44

Plan....................................................................44

Prepayment Assumption...................................................44

Prepayment Charge.......................................................44

Prepayment Charge Schedule..............................................44

Prepayment Interest Excess..............................................45

Prepayment Interest Shortfall...........................................45

Prepayment Period.......................................................45

Principal Prepayment....................................................45

Principal Distribution Amount...........................................45

Principal Remittance Amount.............................................45

Purchase Price..........................................................45

QIB.....................................................................46

Qualified Substitute Mortgage Loan......................................46

Rate/Term Refinancing...................................................47

Rating Agency or Rating Agencies........................................47

Realized Loss...........................................................47

Record Date.............................................................48

Reference Banks.........................................................49

Refinanced Mortgage Loan................................................49

Regular Certificate.....................................................49

Regular Interest........................................................49

Regulation S Temporary Global Certificate...............................49

Regulation S Permanent Global...........................................49

Release Date............................................................49

Relief Act..............................................................49

Relief Act Interest Shortfall...........................................49

REMIC...................................................................49

REMIC I.................................................................49

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REMIC I Interest Loss Allocation Amount.................................50

REMIC I Marker Allocation Percentage....................................50

REMIC I Overcollateralization...........................................50

REMIC I Principal Loss Allocation Amount................................50

REMIC I Regular Interest................................................51

REMIC I Regular Interest I-LTAA.........................................51

REMIC I Regular Interest I-LTA1A........................................51

REMIC I Regular Interest I-LTA1B........................................51

REMIC I Regular Interest I-LTA2A........................................51

REMIC I Regular Interest I-LTA2B........................................51

REMIC I Regular Interest I-LTA2C........................................51

REMIC I Regular Interest I-LTB1.........................................52

REMIC I Regular Interest I-LTB2.........................................52

REMIC I Regular Interest I-LTB3.........................................52

REMIC I Regular Interest I-LTM1.........................................52

REMIC I Regular Interest I-LTM2.........................................52

REMIC I Regular Interest I-LTM3.........................................52

REMIC I Regular Interest I-LTM4.........................................52

REMIC I Regular Interest I-LTM5.........................................53

REMIC I Regular Interest I-LTM6.........................................53

REMIC I Regular Interest I-LTM7.........................................53

REMIC I Regular Interest I-LTM8.........................................53

REMIC I Regular Interest I-LTM9.........................................53

REMIC I Regular Interest I-LTP..........................................53

REMIC I Regular Interest I-LTXX.........................................53

REMIC I Regular Interest I-LTZZ.........................................54

REMIC I Regular Interest I-LT1SUB.......................................54

REMIC I Regular Interest I-LT1GRP.......................................54

REMIC I Regular Interest I-LT2SUB.......................................54

REMIC I Regular Interest I-LT2GRP.......................................54

REMIC I Remittance Rate.................................................54

REMIC I Sub WAC Allocation Percentage...................................55

REMIC I Subordinated Balance Ratio......................................55

REMIC I Required Overcollateralization..................................55

REMIC II................................................................55

REMIC II Certificate....................................................55

REMIC II Certificateholder..............................................55

REMIC Provisions........................................................55

REMIC Regular Interest..................................................55

REMIC Remittance Rate...................................................55

Remittance Report.......................................................55

Rents from Real Property................................................55

REO Account.............................................................55

REO Disposition.........................................................56

REO Imputed Interest....................................................56

REO Principal Amortization..............................................56

REO Property............................................................56

Required Overcollateralization..........................................56

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Reserve Fund............................................................56

Reserve Interest Rate...................................................56

Residential Dwelling....................................................57

Residual Certificate....................................................57

Residual Interest.......................................................57

ResMae Assignment Agreement.............................................57

ResMae Mortgage Loans...................................................57

Responsible Officer.....................................................57

RMAE....................................................................57

RMC.....................................................................57

Rule....................................................................57

Saxon...................................................................57

Saxon Mortgage Loans....................................................57

S&P.....................................................................57

Scheduled Principal Balance.............................................57

Securities..............................................................58

Securities Administrator................................................58

Seller..................................................................58

Senior Interest Distribution Amount.....................................58

Sequential Trigger Event................................................58

Servicer................................................................58

Servicer Event of Default...............................................58

Servicer Remittance Date................................................59

Servicer Report.........................................................59

Servicing Advance.......................................................59

Servicing Agreement.....................................................59

Servicing Fee...........................................................59

Servicing Fee Rate......................................................59

Servicing Officer.......................................................59

Servicing Transfer Date.................................................60

Single Certificate......................................................60

Startup Day.............................................................60

Stated Principal Balance................................................60

Stepdown Date...........................................................61

Subordinate Certificates................................................61

Subsequent Recoveries...................................................61

Sub-Servicer............................................................61

Sub-Servicing Agreement.................................................61

Substitution Shortfall Amount...........................................61

Tax Returns.............................................................61

Telerate Page...........................................................61

Termination Price.......................................................61

Transfer................................................................61

Transferee..............................................................61

Transferor..............................................................62

Trigger Event...........................................................62

Trust...................................................................62

Trust Fund..............................................................62

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Trust REMIC.............................................................62

Trustee.................................................................62

Uncertificated Balance..................................................62

Uncertificated Interest.................................................62

Uninsured Cause.........................................................63

United States Person....................................................63

Value...................................................................63

Verification Report.....................................................64

Voting Rights...........................................................64

Wells Fargo.............................................................64

SECTION 1.02. Allocation of Certain Interest Shortfalls................64

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES 66

SECTION 2.01. Conveyance of the Mortgage Loans.........................66

SECTION 2.02. Acceptance of REMIC I by Trustee.........................67

SECTION 2.03. Repurchase or Substitution of Mortgage Loans.............67

SECTION 2.04. Representations and Warranties of the

Master Servicer..........................................70

SECTION 2.05. Representations, Warranties and Covenants

of the Servicer..........................................71

SECTION 2.06. Issuance of the REMIC I Regular Interests and

the Class R-I Interest...................................73

SECTION 2.07. Conveyance of the REMIC I Regular Interests;

Acceptance of REMIC I by the Trustee.....................74

SECTION 2.08. Issuance of Residual Certificates........................74

SECTION 2.09. Establishment of the Trust...............................74

ARTICLE III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS; ACCOUNTS 75

SECTION 3.01. Servicer to Act as Servicer..............................75

SECTION 3.02. Sub-Servicing Agreements Between the Servicer

and Sub-Servicers........................................77

SECTION 3.03. Successor Sub-Servicers..................................78

SECTION 3.04. No Contractual Relationship Between Sub-Servicer,

Trustee or the Certificateholders........................78

SECTION 3.05. Assumption or Termination of Sub-Servicing Agreement

by Successor Servicer....................................78

SECTION 3.06. Collection of Certain Mortgage Loan Payments.............79

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

Servicing Accounts.......................................79

SECTION 3.08. Collection Account and Distribution Account..............80

SECTION 3.09. Withdrawals from the Collection Accounts and

Distribution Account.....................................83

SECTION 3.10. Investment of Funds in the Investment Accounts...........84

SECTION 3.11. Maintenance of Hazard Insurance, Errors and Omissions

and Fidelity Coverage and Primary Mortgage Insurance.....86

SECTION 3.12. Enforcement of Due-on-Sale Clauses;

Assumption Agreements....................................88

SECTION 3.13. Realization Upon Defaulted Mortgage Loans................89

SECTION 3.14. Trustee to Cooperate; Release of Mortgage Files..........90

SECTION 3.15. Servicing Compensation...................................92

SECTION 3.16. Collection Account Statements............................92

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SECTION 3.17. Statement as to Compliance...............................92

SECTION 3.18. Independent Public Accountants' Servicing Report.........93

SECTION 3.19. Annual Certification.....................................93

SECTION 3.20. Access to Certain Documentation..........................94

SECTION 3.21. Title, Management and Disposition of REO Property........94

SECTION 3.22. Obligations of the Servicer in Respect of Prepayment

Interest Shortfalls; Relief Act Interest Shortfalls......97

SECTION 3.23. Obligations of the Servicer in Respect of Mortgage Rates

and Monthly Payments.....................................98

SECTION 3.24. Reserve Fund.............................................98

SECTION 3.25. Advance Facility.........................................99

SECTION 3.26. Servicer Indemnification................................101

ARTICLE IV ADMINISTRATION AND MASTER SERVICING OF THE MORTGAGE LOANS

BY THE MASTER SERVICER 102

SECTION 4.01. Master Servicer.........................................102

SECTION 4.02. REMIC-Related Covenants.................................103

SECTION 4.03. Monitoring of Servicer..................................103

SECTION 4.04. Fidelity Bond...........................................104

SECTION 4.05. Power to Act; Procedures................................105

SECTION 4.06. Due-on-Sale Clauses; Assumption Agreements..............106

SECTION 4.07. Documents, Records and Funds in Possession of Master

Servicer To Be Held for Trustee.........................106

SECTION 4.08. Standard Hazard Insurance and Flood Insurance Policies..106

SECTION 4.09. Presentment of Claims and Collection of Proceeds........107

SECTION 4.10. Maintenance of Primary Mortgage Insurance Policies......107

SECTION 4.11. Trustee to Retain Possession of Certain Insurance

Policies and Documents..................................107

SECTION 4.12. Realization Upon Defaulted Mortgage Loans...............108

SECTION 4.13. Compensation for the Master Servicer....................108

SECTION 4.14. REO Property............................................108

SECTION 4.15. Annual Officer's Certificate as to Compliance...........109

SECTION 4.16. Annual Independent Accountant's Servicing Report........109

SECTION 4.17. UCC.....................................................110

SECTION 4.18. Obligation of the Master Servicer in Respect of

Prepayment Interest Shortfalls..........................110

SECTION 4.19. Prepayment Penalty Verification.........................110

ARTICLE V PAYMENTS TO CERTIFICATEHOLDERS 112

SECTION 5.01. Distributions...........................................112

SECTION 5.02. Statements to Certificateholders........................127

SECTION 5.03. Servicer Reports; P&I Advances..........................131

SECTION 5.04. Allocation of Realized Losses...........................132

SECTION 5.05. Compliance with Withholding Requirements................135

SECTION 5.06. Reports Filed with Securities and Exchange Commission...135

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ARTICLE VI THE CERTIFICATES 137

SECTION 6.01. The Certificates........................................137

SECTION 6.02. Registration of Transfer and Exchange of Certificates...139

SECTION 6.03. Mutilated, Destroyed, Lost or Stolen Certificates.......144

SECTION 6.04. Persons Deemed Owners...................................145

SECTION 6.05. Certain Available Information...........................145

ARTICLE VII THE DEPOSITOR, THE SERVICER AND THE MASTER SERVICER 146

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

Master Servicer.........................................146

SECTION 7.02. Merger or Consolidation of the Depositor, the

Servicer or the Master Servicer.........................146

SECTION 7.03. Limitation on Liability of the Depositor,

the Servicer, the Master Servicer and Others............146

SECTION 7.04. Limitation on Resignation of the Servicer...............147

SECTION 7.05. Limitation on Resignation of the Master Servicer........148

SECTION 7.06. Assignment of Master Servicing..........................149

SECTION 7.07. Rights of the Depositor in Respect of the Servicer

and the Master Servicer.................................149

SECTION 7.08. Duties of the Credit Risk Manager.......................150

SECTION 7.09. Limitation Upon Liability of the Credit Risk Manager....150

SECTION 7.10. Removal of the Credit Risk Manager......................151

ARTICLE VIII DEFAULT 152

SECTION 8.01. Servicer Events of Default..............................152

SECTION 8.02. Master Servicer to Act; Appointment of Successor........156

SECTION 8.03. Notification to Certificateholders......................157

SECTION 8.04. Waiver of Servicer Events of Default....................157

ARTICLE IX CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR 158

SECTION 9.01. Duties of Trustee and Securities Administrator..........158

SECTION 9.02. Certain Matters Affecting Trustee and

Securities Administrator................................159

SECTION 9.03. Trustee and Securities Administrator not Liable

for Certificates or Mortgage Loans......................161

SECTION 9.04. Trustee and Securities Administrator May

Own Certificates........................................161

SECTION 9.05. Fees and Expenses of Trustee and

Securities Administrator................................161

SECTION 9.06. Eligibility Requirements for Trustee and

Securities Administrator................................162

SECTION 9.07. Resignation and Removal of Trustee and

Securities Administrator................................163

SECTION 9.08. Successor Trustee or Securities Administrator...........164

SECTION 9.09. Merger or Consolidation of Trustee or

Securities Administrator................................164

SECTION 9.10. Appointment of Co-Trustee or Separate Trustee...........165

SECTION 9.11. Appointment of Office or Agency.........................165

SECTION 9.12. Representations and Warranties..........................166

ARTICLE X TERMINATION 167

SECTION 10.01. Termination Upon Repurchase or Liquidation of

All Mortgage Loans......................................167

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SECTION 10.02. Additional Termination Requirements.....................169

ARTICLE XI REMIC PROVISIONS 170

SECTION 11.01. REMIC Administration....................................170

SECTION 11.02. Prohibited Transactions and Activities..................172

SECTION 11.03. Indemnification.........................................173

ARTICLE XII MISCELLANEOUS PROVISIONS 174

SECTION 12.01. Amendment...............................................174

SECTION 12.02. Recordation of Agreement; Counterparts..................175

SECTION 12.03. Limitation on Rights of Certificateholders..............175

SECTION 12.04. Governing Law...........................................176

SECTION 12.05. Notices.................................................176

SECTION 12.06. Severability of Provisions..............................177

SECTION 12.07. Notice to Rating Agencies...............................177

SECTION 12.08. Article and Section References..........................178

SECTION 12.09. Grant of Security Interest..............................178

SECTION 12.10. Survival of Indemnification.............................179

SECTION 12.11. Servicing Agreements....................................179

EXHIBITS

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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Schedule 6 Servicing Advances Incurred Prior to Cut-off Date

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This Pooling and Servicing Agreement, is dated and effective as of

February 1, 2005, among ACE SECURITIES CORP., as Depositor, SAXON MORTGAGE

SERVICES, INC., as 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 Cap Contracts and 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, 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

REMITTANCE INITIAL LATEST POSSIBLE

DESIGNATION RATE UNCERTIFICATED BALANCE MATURITY DATE (1)

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

I-LTAA Variable(2) $ 307,403,452.14 March 25, 2035

I-LTA1A Variable(2) $ 1,518,770.00 March 25, 2035

I-LTA1B Variable(2) $ 379,695.00 March 25, 2035

I-LTA2A Variable(2) $ 338,040.00 March 25, 2035

I-LTA2B Variable(2) $ 107,485.00 March 25, 2035

I-LTA2C Variable(2) $ 80,735.00 March 25, 2035

I-LTM1 Variable(2) $ 125,470.00 March 25, 2035

I-LTM2 Variable(2) $ 103,515.00 March 25, 2035

I-LTM3 Variable(2) $ 62,735.00 March 25, 2035

I-LTM4 Variable(2) $ 58,030.00 March 25, 2035

I-LTM5 Variable(2) $ 50,190.00 March 25, 2035

I-LTM6 Variable(2) $ 50,190.00 March 25, 2035

I-LTM7 Variable(2) $ 45,485.00 March 25, 2035

I-LTM8 Variable(2) $ 34,505.00 March 25, 2035

I-LTM9 Variable(2) $ 31,370.00 March 25, 2035

I-LTB1 Variable(2) $ 31,370.00 March 25, 2035

I-LTB2 Variable(2) $ 48,620.00 March 25, 2035

I-LTB3 Variable(2) $ 34,505.00 March 25, 2035

I-LTZZ Variable(2) $ 3,172,829.00 March 25, 2035

I-LTP Variable(2) $ 100.00 March 25, 2035

I-LT1SUB Variable(2) $ 11,150.00 March 25, 2035

I-LT1GRP Variable(2) $ 49,119.35 March 25, 2035

I-LT2SUB Variable(2) $ 3,090.86 March 25, 2035

I-LT2GRP Variable(2) $ 13,616.00 March 25, 2035

I-LTXX Variable(2) $ 313,600,015.67 March 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, for purposes of satisfying Treasury

regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity date" for

the indicated Classes of Certificates.

<PAGE>

INITIAL AGGREGATE

CERTIFICATE PRINCIPAL LATEST POSSIBLE

DESIGNATION PASS-THROUGH RATE BALANCE MATURITY DATE (1)

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

Class A-1A Variable(2) $ 303,754,000.00 March 25, 2035

Class A-1B Variable(2) $ 75,939,000.00 March 25, 2035

Class A-2A Variable(2) $ 67,608,000.00 March 25, 2035

Class A-2B Variable(2) $ 21,497,000.00 March 25, 2035

Class A-2C Variable(2) $ 16,147,000.00 March 25, 2035

Class M-1 Variable(2) $ 25,094,000.00 March 25, 2035

Class M-2 Variable(2) $ 20,703,000.00 March 25, 2035

Class M-3 Variable(2) $ 12,547,000.00 March 25, 2035

Class M-4 Variable(2) $ 11,606,000.00 March 25, 2035

Class M-5 Variable(2) $ 10,038,000.00 March 25, 2035

Class M-6 Variable(2) $ 10,038,000.00 March 25, 2035

Class M-7 Variable(2) $ 9,097,000.00 March 25, 2035

Class M-8 Variable(2) $ 6,901,000.00 March 25, 2035

Class M-9 Variable(2) $ 6,274,000.00 March 25, 2035

Class B-1 Variable(2) $ 6,274,000.00 March 25, 2035

Class B-2 Variable(2) $ 9,724,000.00 March 25, 2035

Class B-3 Variable(2) $ 6,901,000.00 March 25, 2035

Class P N/A(3) $ 100.00 March 25, 2035

Class CE N/A(4) $ 7,211,983.96 March 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 Group I Mortgage Loans had an aggregate

Scheduled Principal Balance equal to approximately $491,193,454 and the Group II

Mortgage Loans had an aggregate Scheduled Principal Balance equal to

approximately $136,160,629.

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 Agreements 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.

<PAGE>

"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, (ii) the Master

Servicing Fee and (iii) the Credit Risk Management Fee.

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

the Master Servicer Fee Rate and (iii) the Credit Risk Management Fee Rate.

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

"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 Accounts 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 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

<PAGE>

blanket assignments covering Mortgages secured by Mortgaged Properties located

in the same county, if permitted by law.

"Assignment Agreements": The ResMae Assignment Agreement and the Litton

Assignment Agreement.

"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 related 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 the related

Interim Servicer pursuant to the related 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 the related Interim Servicer pursuant to

the related 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

Agreements 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, the 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 the related

Interim Servicer under the related Servicing Agreement, (v) the Credit Risk

Management Fee, (vi) amounts deposited in a Custodial Account, a Collection

Account or the Distribution Account in error, (vii) the amount of any Prepayment

Charges collected by the Servicer or an Interim Servicer in connection with the

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

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

Section 8.02 of this Agreement or pursuant to the related 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.

"Book-Entry Certificates": The Offered Certificates and Class B

Certificates for so long as the Certificates of such Class shall be registered

in the name of the Depository or its nominee.

<PAGE>

"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 Contracts": Shall mean (i) the Cap Contract between the Trustee and

the counterparty named thereunder, for the benefit of the Holders of the Class

A-1 Certificates, the Mezzanine Certificates and the Class B Certificates (the

"Group I Cap Contract") and (ii) the Cap Contract between the Trustee and the

counterparty thereunder, for the benefit of the Class A-2 Certificates, the

Mezzanine Certificates and the Class B Certificates (the "Group II Cap

Contract").

"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 2005-RM1, Class A-1A, Class A-1B, Class A-2A, Class A-2B,

Class A-2C, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,

Class M-7, Class M-8, Class M-9, Class B-1, Class B-2, Class B-3, 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-1A Certificates and,

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

I-LTA1A, 0.24% in the case of each Distribution Date through and including the

Optional Termination Date and 0.48% in the case of each Distribution Date

thereafter.

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

definition of "Marker Rate", REMIC I Regular Interest I-LTA1B, 0.30% in the case

of each Distribution Date through and including the Optional Termination Date

and 0.60% in the case of each Distribution Date thereafter.

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

definition of "Marker Rate", REMIC I Regular Interest I-LTA2A, 0.13% in the case

of each Distribution Date through and including the Optional Termination Date

and 0.26% in the case of each Distribution Date thereafter.

<PAGE>

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

definition of "Marker Rate", REMIC I Regular Interest I-LTA2B, 0.27% in the case

of each Distribution Date through and including the Optional Termination Date

and 0.54% in the case of each Distribution Date thereafter.

With respect to the Class A-2C Certificates and, for purposes of the

definition of "Marker Rate", REMIC I Regular Interest I-LTA2C, 0.37% in the case

of each Distribution Date through and including the Optional Termination Date

and 0.74% 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, 0.46% in the case

of each Distribution Date through and including the Optional Termination Date

and 0.69% 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, 0.50% in the case

of each Distribution Date through and including the Optional Termination Date

and 0.75% in the case of each Distribution Date thereafter.

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

definition of "Marker Rate", REMIC I Regular Interest I-LTM3, 0.53% 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.

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

definition of "Marker Rate", REMIC I Regular Interest I-LTM4, 0.68% in the case

of each Distribution Date through and including the Optional Termination Date

and 1.02% 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, 0.73% in the case

of each Distribution Date through and including the Optional Termination Date

and 1.095% 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, 0.80% in the case

of each Distribution Date through and including the Optional Termination Date

and 1.20% 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, 1.35% in the case

of each Distribution Date through and including the Optional Termination Date

and 2.025% in the case of each Distribution Date thereafter.

With respect to the Class M-8 Certificates and, for purposes of the

definition of "Marker Rate", REMIC I Regular Interest I-LTM8, 1.40% in the case

of each Distribution Date through and including the Optional Termination Date

and 2.10% in the case of each Distribution Date thereafter.

<PAGE>

With respect to the Class M-9 Certificates and, for purposes of the

definition of "Marker Rate", REMIC I Regular Interest I-LTM9, 2.00% in the case

of each Distribution Date through and including the Optional Termination Date

and 3.00% 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, 3.25% 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 B2 Certificates and, for purposes of the

definition of "Marker Rate", REMIC I Regular Interest I-LTB2, 3.25% 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 B3 Certificates and, for purposes of the

definition of "Marker Rate", REMIC I Regular Interest I-LTB3, 3.25% in the case

of each Distribution Date through and including the Optional Termination Date

and 4.825% in the case of each Distribution Date thereafter.

"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

<PAGE>

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 Class A-1A, Class A-1B, Class A-2A, Class A-2B

or Class A-2C Certificate.

"Class A Principal Distribution Amount": The Class A Principal

Distribution Amount is an amount equal to the sum of: (i) the Class A-1

Principal Distribution Amount and (ii) the Class A-2 Principal Distribution

Amount.

"Class A-1 Allocation Percentage": With respect to any Distribution Date

is the percentage equivalent of a fraction, the numerator of which is (x) the

Group I Principal Remittance Amount for such Distribution Date and the

denominator of which is (y) the Principal Remittance Amount for such

Distribution Date.

"Class A-1 Certificate": Any Class A-1A Certificate or Class A-1B

Certificate.

"Class A-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 the Certificate Principal Balances

of the Class A-1A Certificates and Class A-1B Certificates immediately prior to

such Distribution Date over (y) the lesser of (A) the product of (i) 54.60% and

(ii) the aggregate Stated Principal Balance of the Group I 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 Group I

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 Group I Mortgage Loans as of the Cut-off

Date.

"Class A-1A Certificate": Any one of the Class A-1A 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.

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

and authenticated by the Securities Administrator and delivered by the Trustee,

substantially in the

<PAGE>

form annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC II

for purposes of the REMIC Provisions.

"Class A-2 Allocation Percentage": With respect to any Distribution Date

is the percentage equivalent of a fraction, the numerator of which is (x) the

Group II Principal Remittance Amount for such Distribution Date and the

denominator of which is (y) the Principal Remittance Amount for such

Distribution Date.

"Class A-2 Certificate": Any Class A-2A, Class A-2B or Class A-2C

Certificate.

"Class A-2 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 the Certificate Principal Balances

of the Class A-2A, Class A-2B and Class A-2C Certificates immediately prior to

such Distribution Date over (y) the lesser of (A) the product of (i) 54.60% and

(ii) the aggregate Stated Principal Balance of the Group II 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 Group

II 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 Group II Mortgage Loans as of

the Cut-off Date.

"Class A-2A Certificate": Any one of the Class A-2A 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.

"Class A-2B Certificate": Any one of the Class A-2B 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.

"Class A-2C Certificate": Any one of the Class A-2C 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.

"Class B Certificate": Any Class B-1, Class B-2 or Class B-3 Certificate.

"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 aggregate Certificate

Principal Balance of the Class A Certificates (after taking

<PAGE>

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), (ix) the Certificate Principal

Balance of the Class M-8 Certificates (after taking into account the payment of

the Class M-8 Principal Distribution Amount on such Distribution Date), (x) the

Certificate Principal Balance of the Class M-9 Certificates (after taking into

account the payment of the Class M-9 Principal Distribution Amount on such

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

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

(A) the product of (i) 92.40% 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 B-2 Certificate": Any one of the Class B-2 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-2 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 aggregate 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

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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), (ix) the Certificate Principal

Balance of the Class M-8 Certificates (after taking into account the payment of

the Class M-8 Principal Distribution Amount on such Distribution Date), (x) the

Certificate Principal Balance of the Class M-9 Certificates (after taking into

account the payment of the Class M-9 Principal Distribution Amount on such

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

Certificates (after taking into account the payment of the Class B-1 Principal

Distribution Amount on such Distribution Date) and (xii) the Certificate

Principal Balance of the Class B-2 Certificates immediately prior to such

Distribution Date over (y) the lesser of (A) the product of (i) 95.50% 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 B-3 Certificate": Any one of the Class B-3 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-3 Principal Distribution Amount": With respect to any