POOLING AND SERVICING AGREEMENT

Pooling and Servicing Agreement

You are currently viewing:

This Pooling and Servicing Agreement involves

POPULAR ABS MORTGAGE PASS-THROUGH TRUST 2005-D

. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here.

Title: POOLING AND SERVICING AGREEMENT
Governing Law: Delaware Date: 11/30/2005
Law Firm: Stradley Ronon

POOLING AND SERVICING AGREEMENT
, Parties: popular abs mortgage pass-through trust 2005-d

<PAGE>

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

Popular ABS, Inc.

Depositor

Equity One, Inc., a Delaware corporation

A Seller and the Servicer

Popular Financial Funding, LLC

Equity One, Incorporated

Equity One, Inc., a Minnesota corporation

Equity One Consumer Loan Company, Inc.

and

Popular Financial Services, LLC

Sellers

and

JPMorgan Chase Bank, N.A.

Trustee

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

POOLING AND SERVICING AGREEMENT

Dated as of November 1, 2005

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

MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2005-D

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

<PAGE>

TABLE OF CONTENTS

<TABLE>

Page

------

<S> <C>

PRELIMINARY STATEMENT....................... 1

ARTICLE I DEFINITIONS....................... 6

60+ DAY DELINQUENT LOAN.................... 6

ADJUSTABLE RATE CERTIFICATES............... 6

ADJUSTED MORTGAGE RATE..................... 6

ADJUSTED NET MORTGAGE RATE................. 6

ADVANCE.................................... 6

AGGREGATE CLASS B EARLY DISTRIBUTION AMOUNT 6

AGREEMENT.................................. 6

AMOUNT HELD FOR FUTURE DISTRIBUTION........ 6

APPLIED REALIZED LOSS AMOUNT............... 7

AVAILABLE FUNDS............................ 7

BALLOON LOANS.............................. 7

BANKRUPTCY CODE............................ 7

BASIC PRINCIPAL DISTRIBUTION AMOUNT........ 7

BENEFICIAL OWNER........................... 7

BOOK-ENTRY CERTIFICATES.................... 7

BUSINESS DAY............................... 7

CERTIFICATES............................... 7

CERTIFICATE ACCOUNT........................ 7

CERTIFICATE BALANCE........................ 8

CERTIFICATEHOLDER OR HOLDER................ 8

CERTIFICATE REGISTER....................... 8

CERTIFICATE REGISTRAR...................... 8

CLASS...................................... 8

CLASS A-1 CERTIFICATE...................... 8

CLASS A-2 CERTIFICATE...................... 8

CLASS A-3 CERTIFICATE...................... 8

CLASS A-4 CERTIFICATE...................... 8

CLASS A-5 CERTIFICATE...................... 9

CLASS A-6 CERTIFICATE...................... 9

CLASS A-6 LOCKOUT DISTRIBUTION AMOUNT...... 9

CLASS A-6 LOCKOUT PERCENTAGE............... 9

CLASS A-6 PRO RATA DISTRIBUTION AMOUNT..... 9

CLASS B-1 APPLIED REALIZED LOSS AMOUNT..... 9

CLASS B-1 CERTIFICATE...................... 10

CLASS B-1 PRINCIPAL DISTRIBUTION AMOUNT.... 10

CLASS B-1 REALIZED LOSS AMORTIZATION AMOUNT 10

CLASS B-2 APPLIED REALIZED LOSS AMOUNT..... 10

CLASS B-2 CERTIFICATE...................... 10

CLASS B-2 PRINCIPAL DISTRIBUTION AMOUNT.... 10

CLASS B-2 REALIZED LOSS AMORTIZATION AMOUNT 11

CLASS B-3 APPLIED REALIZED LOSS AMOUNT..... 11

CLASS B-3 CERTIFICATE...................... 11

CLASS B-3 PRINCIPAL DISTRIBUTION AMOUNT.... 11

CLASS B-3 REALIZED LOSS AMORTIZATION AMOUNT 12

CLASS B-4 APPLIED REALIZED LOSS AMOUNT..... 12

</TABLE>

<PAGE>

<TABLE>

<S> <C>

CLASS B-4 CERTIFICATE...................... 12

CLASS B-4 PRINCIPAL DISTRIBUTION AMOUNT.... 12

CLASS B-4 REALIZED LOSS AMORTIZATION AMOUNT 12

CLASS CERTIFICATE BALANCE.................. 13

CLASS INTEREST SHORTFALL................... 13

CLASS M-1 APPLIED REALIZED LOSS AMOUNT..... 13

CLASS M-1 CERTIFICATE...................... 13

CLASS M-1 PRINCIPAL DISTRIBUTION AMOUNT.... 13

CLASS M-1 REALIZED LOSS AMORTIZATION AMOUNT 13

CLASS M-2 APPLIED REALIZED LOSS AMOUNT..... 13

CLASS M-2 CERTIFICATE...................... 14

CLASS M-2 PRINCIPAL DISTRIBUTION AMOUNT.... 14

CLASS M-2 REALIZED LOSS AMORTIZATION AMOUNT 14

CLASS M-3 APPLIED REALIZED LOSS AMOUNT..... 14

CLASS M-3 CERTIFICATE...................... 14

CLASS M-3 PRINCIPAL DISTRIBUTION AMOUNT.... 15

CLASS M-3 REALIZED LOSS AMORTIZATION AMOUNT 15

CLASS M-4 APPLIED REALIZED LOSS AMOUNT..... 15

CLASS M-4 CERTIFICATE...................... 15

CLASS M-4 PRINCIPAL DISTRIBUTION AMOUNT.... 15

CLASS M-4 REALIZED LOSS AMORTIZATION AMOUNT 15

CLASS M-5 APPLIED REALIZED LOSS AMOUNT..... 16

CLASS M-5 CERTIFICATE...................... 16

CLASS M-5 PRINCIPAL DISTRIBUTION AMOUNT.... 16

CLASS M-5 REALIZED LOSS AMORTIZATION AMOUNT 16

CLASS M-6 APPLIED REALIZED LOSS AMOUNT..... 16

CLASS M-6 CERTIFICATE...................... 16

CLASS M-6 PRINCIPAL DISTRIBUTION AMOUNT.... 17

CLASS M-6 REALIZED LOSS AMORTIZATION AMOUNT 17

CLASS R CERTIFICATES....................... 17

CLASS UNPAID INTEREST AMOUNTS.............. 17

CLASS X CERTIFICATE........................ 17

CLOSING DATE............................... 17

CLOSING PLACE.............................. 17

CODE....................................... 17

COLLATERAL................................. 17

COLLATERAL VALUE........................... 18

COMBINED LOAN-TO-VALUE RATIO............... 18

CORPORATE TRUST OFFICE..................... 18

CORRESPONDING CLASS........................ 18

COUNTERPARTY............................... 18

CUSTODIAL AGREEMENT........................ 18

CUSTODIAN.................................. 18

CUT-OFF DATE............................... 18

CUT-OFF DATE POOL PRINCIPAL BALANCE........ 18

CUT-OFF DATE PRINCIPAL BALANCE............. 19

DEFECTIVE LOAN............................. 19

DEFICIENT VALUATION........................ 19

DEFINITIVE CERTIFICATES.................... 19

DELETED LOAN............................... 19

DENOMINATION............................... 19

</TABLE>

<PAGE>

<TABLE>

<S> <C>

DEPOSITOR........................................................... 19

DEPOSITORY.......................................................... 19

DEPOSITORY PARTICIPANT.............................................. 19

DETERMINATION DATE.................................................. 19

DISTRIBUTION ACCOUNT................................................ 19

DISTRIBUTION ACCOUNT DEPOSIT DATE................................... 20

DISTRIBUTION DATE................................................... 20

DUE DATE............................................................ 20

DUE PERIOD.......................................................... 20

ELIGIBLE ACCOUNT.................................................... 20

EQUITY ONE-DELAWARE................................................. 20

EQUITY ONE-MINNESOTA................................................ 20

EQUITY ONE-NEW HAMPSHIRE............................................ 20

EQUITY ONE CONSUMER LOAN COMPANY, INC., A NEW HAMPSHIRE CORPORATION. 20

EQUITY ONE-PENNSYLVANIA............................................. 20

ERISA............................................................... 20

ERISA QUALIFYING UNDERWRITING....................................... 21

ERISA-RESTRICTED CERTIFICATE........................................ 21

ESCROW ACCOUNT...................................................... 21

EVENT OF DEFAULT.................................................... 21

EXCESS PROCEEDS..................................................... 21

EXPENSE RATE........................................................ 21

EXTRA PRINCIPAL DISTRIBUTION AMOUNT................................. 21

FDIC................................................................ 21

FHLMC............................................................... 21

FIRREA.............................................................. 21

FIXED RATE CERTIFICATES............................................. 21

FNMA................................................................ 22

HEDGED CERTIFICATES................................................. 22

INDIRECT PARTICIPANT................................................ 22

INITIAL CERTIFICATE ACCOUNT DEPOSIT................................. 22

INSURANCE POLICY.................................................... 22

INSURANCE PROCEEDS.................................................. 22

INSURED EXPENSES.................................................... 22

INTEREST ACCRUAL PERIOD............................................. 22

INTEREST DISTRIBUTION AMOUNT........................................ 22

INTEREST REMITTANCE AMOUNT.......................................... 22

INVESTMENT LETTER................................................... 22

LATEST POSSIBLE MATURITY DATE....................................... 23

LAST SCHEDULED DISTRIBUTION DATE.................................... 23

LIBOR............................................................... 23

LIBOR DETERMINATION DATE............................................ 23

LIQUIDATED LOAN..................................................... 23

LIQUIDATION PROCEEDS................................................ 23

LOANS............................................................... 23

LOAN SCHEDULE....................................................... 23

MAJORITY IN INTEREST................................................ 24

MERS (R)............................................................ 24

MERS (R) SYSTEM..................................................... 24

MIN................................................................. 24

MOM LOAN............................................................ 24

</TABLE>

iii

<PAGE>

<TABLE>

<S> <C>

MONTHLY EXCESS CASHFLOW AMOUNT....................... 24

MONTHLY EXCESS INTEREST AMOUNT....................... 24

MONTHLY STATEMENT.................................... 24

MOODY'S.............................................. 25

MORTGAGE............................................. 25

MORTGAGED PROPERTY................................... 25

MORTGAGE FILE........................................ 25

MORTGAGE NOTE........................................ 25

MORTGAGE RATE........................................ 25

MORTGAGOR............................................ 25

NET PREPAYMENT INTEREST SHORTFALLS................... 25

NET PRINCIPAL SHORTFALL AMOUNT....................... 25

NET REALIZED LOSSES.................................. 25

NET RECOVERY REALIZED LOSSES......................... 25

NET WAC CAP.......................................... 26

NET WAC CAP ACCOUNT.................................. 26

NET WAC CAP CARRYOVER................................ 26

NET WAC CAP DEPOSIT AMOUNT........................... 26

NET WAC RATE......................................... 26

NONRECOVERABLE ADVANCE............................... 26

NOTICE OF FINAL DISTRIBUTION......................... 26

OFFERED CERTIFICATES................................. 26

OFFICER'S CERTIFICATE................................ 27

OPINION OF COUNSEL................................... 27

OPTIONAL TERMINATION DATE............................ 27

OPTIONAL TERMINATION................................. 27

ORIGINAL LOAN........................................ 27

OTS.................................................. 27

OUTSTANDING.......................................... 27

OUTSTANDING LOAN..................................... 27

OVERCOLLATERALIZATION AMOUNT......................... 27

OVERCOLLATERALIZATION DEFICIENCY..................... 27

OVERCOLLATERALIZATION RELEASE AMOUNT................. 28

OWNERSHIP INTEREST................................... 28

PASS-THROUGH RATE.................................... 28

PAYING AGENT......................................... 28

PERCENTAGE INTEREST.................................. 28

PERMITTED INVESTMENTS................................ 28

PERMITTED TRANSFEREE................................. 29

PERSON............................................... 30

PLAN................................................. 30

POOL PRINCIPAL BALANCE............................... 30

POPULAR FINANCIAL.................................... 30

POPULAR FUNDING...................................... 30

POST-STEPDOWN REMAINING PRINCIPAL DISTRIBUTION AMOUNT 30

PRE-STEPDOWN REMAINING PRINCIPAL DISTRIBUTION AMOUNT. 30

PREPAYMENT INTEREST EXCESS........................... 30

PREPAYMENT INTEREST SHORTFALL........................ 30

PREPAYMENT PERIOD.................................... 30

PRIMARY MORTGAGE INSURANCE POLICY.................... 30

PRINCIPAL DISTRIBUTION AMOUNT........................ 31

</TABLE>

<PAGE>

<TABLE>

<S> <C>

PRINCIPAL PREPAYMENT................... 31

PRINCIPAL PREPAYMENT IN FULL........... 31

PRINCIPAL REMITTANCE AMOUNT............ 31

PROSPECTUS SUPPLEMENT.................. 31

PUBLICLY OFFERED CERTIFICATES.......... 31

PURCHASE PRICE......................... 31

PTCE 95-60............................. 32

RATING AGENCY.......................... 32

REALIZED LOSS AMOUNT................... 32

REALIZED LOSSES........................ 32

REALIZED LOSS AMORTIZATION AMOUNT...... 32

RECORD DATE............................ 32

REFERENCE BANKS........................ 33

REFINANCE LOAN......................... 33

RELIEF ACT............................. 33

RELIEF ACT REDUCTIONS.................. 33

REMAINING INTEREST REMITTANCE AMOUNT... 33

REMAINING PRINCIPAL DISTRIBUTION AMOUNT 33

REMIC.................................. 33

REMIC 1................................ 33

REMIC 2................................ 33

REMIC 1 ACCRUAL CLASS.................. 33

REMIC CHANGE OF LAW.................... 33

REMIC PROVISIONS....................... 33

REO PROPERTY........................... 34

REQUEST FOR RELEASE.................... 34

REQUIRED INSURANCE POLICY.............. 34

RESERVE FUND........................... 34

RESPONSIBLE OFFICER.................... 34

RULE 144A LETTER....................... 34

SCHEDULED PAYMENT...................... 34

SECOND LIEN LOAN....................... 34

SECURITIES ACT......................... 34

SELLERS................................ 34

SENIOR CERTIFICATES.................... 34

SENIOR ENHANCEMENT PERCENTAGE.......... 34

SENIOR PRINCIPAL DISTRIBUTION AMOUNT... 35

SENIOR SPECIFIED ENHANCEMENT PERCENTAGE 35

SERVICER............................... 35

SERVICER ADVANCE DATE.................. 35

SERVICING ADVANCES..................... 35

SERVICING AMOUNT....................... 35

SERVICING FEE.......................... 35

SERVICING FEE RATE..................... 35

SERVICING OFFICER...................... 35

S&P.................................... 36

STARTUP DAY............................ 36

STATED PRINCIPAL BALANCE............... 36

STEPDOWN DATE.......................... 36

SUBORDINATE CERTIFICATES............... 36

SUBSERVICER............................ 36

</TABLE>

<PAGE>

<TABLE>

<S> <C>

SUBSTITUTE LOAN........................................................................................... 36

SUBSTITUTION ADJUSTMENT AMOUNT............................................................................ 36

TARGETED OVERCOLLATERALIZATION AMOUNT..................................................................... 36

TAX MATTERS PERSON........................................................................................ 37

TAX MATTERS PERSON CERTIFICATE............................................................................ 37

TERMINATION PRICE......................................................................................... 37

TRANSFER.................................................................................................. 37

TRANSFER AFFIDAVIT........................................................................................ 37

TRANSFEROR CERTIFICATE.................................................................................... 37

TRIGGER EVENT............................................................................................. 37

TRUSTEE................................................................................................... 38

TRUSTEE FEE............................................................................................... 38

TRUSTEE FEE RATE.......................................................................................... 38

TRUST FUND................................................................................................ 39

TRUSTEE PERMITTED WITHDRAWAL AMOUNT....................................................................... 39

UNPAID REALIZED LOSS AMOUNT............................................................................... 39

UNDERWRITER EXEMPTION..................................................................................... 39

UNDERWRITERS.............................................................................................. 39

VOTING RIGHTS............................................................................................. 39

YIELD MAINTENANCE AGREEMENT............................................................................... 39

YIELD MAINTENANCE STATED TERMINATION...................................................................... 40

ARTICLE II CONVEYANCE OF LOANS; REPRESENTATIONS AND WARRANTIES............................................. 40

SECTION 2.01. CONVEYANCE OF LOANS......................................................................... 40

SECTION 2.02. ACCEPTANCE BY TRUSTEE OF THE TRUST FUND..................................................... 43

SECTION 2.03. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SELLERS AND THE SERVICER................... 45

SECTION 2.03A. ADDITIONAL OBLIGATIONS OF EQUITY ONE-DELAWARE.............................................. 47

SECTION 2.04. REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR AS TO THE LOANS............................. 47

SECTION 2.05. DELIVERY OF OPINION OF COUNSEL IN CONNECTION WITH SUBSTITUTIONS............................. 47

SECTION 2.06. EXECUTION AND DELIVERY OF CERTIFICATES...................................................... 48

SECTION 2.07. REMIC MATTERS............................................................................... 48

SECTION 2.08. COVENANTS OF THE SERVICER................................................................... 48

ARTICLE III ADMINISTRATION AND SERVICING OF LOANS.......................................................... 49

SECTION 3.01. SERVICER TO SERVICE LOANS................................................................... 49

SECTION 3.02. SUBSERVICING; ENFORCEMENT OF THE OBLIGATIONS OF SERVICERS................................... 49

SECTION 3.03. RIGHTS OF THE DEPOSITOR AND THE TRUSTEE IN RESPECT OF THE SERVICER.......................... 50

SECTION 3.04. TRUSTEE TO ACT AS SERVICER.................................................................. 50

SECTION 3.05. COLLECTION OF LOAN PAYMENTS; CERTIFICATE ACCOUNT; DISTRIBUTION ACCOUNT...................... 51

SECTION 3.06. PAYMENT OF TAXES, ASSESSMENTS, HAZARD INSURANCE PREMIUMS AND SIMILAR ITEMS; ESCROW ACCOUNTS. 53

SECTION 3.07. ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING THE LOANS......................... 53

SECTION 3.08. PERMITTED WITHDRAWALS FROM THE CERTIFICATE ACCOUNT AND DISTRIBUTION ACCOUNT................. 54

SECTION 3.09. MAINTENANCE OF HAZARD INSURANCE; MAINTENANCE OF PRIMARY INSURANCE POLICIES.................. 55

SECTION 3.10. ENFORCEMENT OF DUE-ON-SALE CLAUSES; ASSUMPTION AGREEMENTS................................... 56

</TABLE>

<PAGE>

<TABLE>

<S> <C>

SECTION 3.11. REALIZATION UPON DEFAULTED LOANS; REPURCHASE AND SALE OF CERTAIN LOANS............ 57

SECTION 3.12. DOCUMENTS, RECORDS AND FUNDS IN POSSESSION OF SERVICER TO BE HELD FOR THE TRUSTEE. 59

SECTION 3.13. SERVICING COMPENSATION............................................................ 60

SECTION 3.14. ACCESS TO CERTAIN DOCUMENTATION................................................... 60

SECTION 3.15. ANNUAL STATEMENT AS TO COMPLIANCE................................................. 60

SECTION 3.16. ANNUAL INDEPENDENT PUBLIC ACCOUNTANTS' SERVICING STATEMENT; FINANCIAL STATEMENTS.. 60

SECTION 3.17. ERRORS AND OMISSIONS INSURANCE; FIDELITY BONDS.................................... 61

SECTION 3.18. RESERVED.......................................................................... 61

SECTION 3.19. DELINQUENT LOANS.................................................................. 61

ARTICLE IIIA RESERVE FUND AND NET WAC CAP ACCOUNT................................................ 62

SECTION 3A.01 RESERVED.......................................................................... 62

SECTION 3A.02 RESERVE FUND AND YIELD MAINTENANCE AGREEMENT...................................... 62

SECTION 3A.03. NET WAC CAP ACCOUNT.............................................................. 63

ARTICLE IV DISTRIBUTIONS AND ADVANCES BY THE SERVICER............................................ 64

SECTION 4.01. ADVANCES.......................................................................... 64

SECTION 4.02. PRIORITIES OF DISTRIBUTION AND ALLOCATION......................................... 64

SECTION 4.02A. RECOVERIES....................................................................... 71

SECTION 4.03. MONTHLY STATEMENTS TO CERTIFICATEHOLDERS.......................................... 72

SECTION 4.04. REPORTING......................................................................... 75

SECTION 5.01. THE CERTIFICATES.................................................................. 75

SECTION 5.02. CERTIFICATE REGISTER; REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES....... 76

SECTION 5.03. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES................................. 80

SECTION 5.04. PERSONS DEEMED OWNERS............................................................. 80

SECTION 5.05. ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND ADDRESSES......................... 80

SECTION 5.06. MAINTENANCE OF OFFICE OR AGENCY................................................... 80

ARTICLE VI THE DEPOSITOR AND THE SERVICER........................................................ 81

SECTION 6.01. RESPECTIVE LIABILITIES OF THE DEPOSITOR AND THE SERVICER.......................... 81

SECTION 6.02. MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE SERVICER.......................... 81

SECTION 6.03. LIMITATION ON LIABILITY OF THE DEPOSITOR, THE SELLERS, THE SERVICER AND OTHERS.... 81

SECTION 6.04. LIMITATION ON RESIGNATION OF SERVICER............................................. 82

SECTION 6.05. INDEMNIFICATION................................................................... 82

ARTICLE VII DEFAULT.............................................................................. 82

SECTION 7.01. EVENTS OF DEFAULT................................................................. 82

SECTION 7.02. TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.......................................... 84

SECTION 7.03. NOTIFICATION TO CERTIFICATEHOLDERS................................................ 85

SECTION 7.04. SURVIVABILITY OF SERVICER LIABILITIES............................................. 85

ARTICLE VIII CONCERNING THE TRUSTEE.............................................................. 86

SECTION 8.01. DUTIES OF TRUSTEE................................................................. 86

SECTION 8.02 CERTAIN MATTERS AFFECTING THE TRUSTEE.............................................. 87

SECTION 8.03. TRUSTEE NOT LIABLE FOR CERTIFICATES OR LOANS...................................... 88

SECTION 8.04. TRUSTEE MAY OWN CERTIFICATES...................................................... 89

</TABLE>

vii

<PAGE>

<TABLE>

<S> <C>

SECTION 8.05. TRUSTEE'S FEES AND EXPENSES................................... 89

SECTION 8.06. ELIGIBILITY REQUIREMENTS FOR TRUSTEE.......................... 89

SECTION 8.07. RESIGNATION AND REMOVAL OF TRUSTEE............................ 90

SECTION 8.08. SUCCESSOR TRUSTEE............................................. 90

SECTION 8.09. MERGER OR CONSOLIDATION OF TRUSTEE............................ 91

SECTION 8.10. APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE................. 91

SECTION 8.11. TAX MATTERS................................................... 92

SECTION 8.12. PERIODIC FILINGS.............................................. 94

SECTION 8.13. APPOINTMENT OF CUSTODIANS..................................... 94

SECTION 8.14. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF CERTIFICATES. 94

SECTION 8.15. SUITS FOR ENFORCEMENT......................................... 95

ARTICLE IX TERMINATION....................................................... 95

SECTION 9.01. TERMINATION UPON LIQUIDATION OR PURCHASE OF ALL LOANS......... 95

SECTION 9.02. FINAL DISTRIBUTION ON THE CERTIFICATES........................ 96

SECTION 9.03. ADDITIONAL TERMINATION REQUIREMENTS........................... 97

ARTICLE X MISCELLANEOUS PROVISIONS........................................... 97

SECTION 10.01. AMENDMENT.................................................... 97

SECTION 10.02. RECORDATION OF AGREEMENT; COUNTERPARTS....................... 98

SECTION 10.03. GOVERNING LAW................................................ 99

SECTION 10.04. INTENTION OF PARTIES......................................... 99

SECTION 10.05. NOTICES...................................................... 100

SECTION 10.06. SEVERABILITY OF PROVISIONS................................... 101

SECTION 10.07. ASSIGNMENT................................................... 102

SECTION 10.08. LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS................... 102

SECTION 10.09. INSPECTION AND AUDIT RIGHTS.................................. 102

SECTION 10.10. CERTIFICATES NONASSESSABLE AND FULLY PAID.................... 103

SECTION 10.11. THE CLOSING.................................................. 103

SECTION 10.12. INTERPRETATION............................................... 103

SECTION 10.13. RESERVED..................................................... 103

SECTION 10.14. NO PARTNERSHIP............................................... 103

SECTION 10.15. PROTECTION OF ASSETS......................................... 103

SECTION 10.16. EXECUTION OF YIELD MAINTENANCE AGREEMENT..................... 104

SCHEDULE I.................................................................. S-I-1

SCHEDULE IIA................................................................ S-IIA-1

SCHEDULE IIB................................................................ S-IIB-1

SCHEDULE IIC................................................................ S-IIC-1

SCHEDULE IID................................................................ S-IID-1

SCHEDULE IIE................................................................ S-IIE-1

SCHEDULE IIF................................................................ S-IIF-1

SCHEDULE IIX................................................................ S-IIX-1

SCHEDULE IIIA.............................................................. S-IIIA-1

SCHEDULE IIIB.............................................................. S-IIIB-1

SCHEDULE IIIC.............................................................. S-IIIC-1

SCHEDULE IIID.............................................................. S-IIID-1

SCHEDULE IIIE.............................................................. S-IIIE-1

SCHEDULE IIIF.............................................................. S-IIIF-1

SCHEDULE IV................................................................ IV-1

SCHEDULE V................................................................. V-1

SCHEDULE VI................................................................ VI-1

SCHEDULE VII............................................................... VII-1

EXHIBIT A-1................................................................ A-1-1

EXHIBIT A-2................................................................ A-2-1

EXHIBIT A-3................................................................ A-3-1

EXHIBIT A-4................................................................ A-4-1

EXHIBIT B-1................................................................ B-1-1

EXHIBIT B-2................................................................ B-2-1

EXHIBIT C.................................................................. C-1

EXHIBIT D.................................................................. D-1

EXHIBIT E.................................................................. E-1

EXHIBIT F.................................................................. F-1

EXHIBIT G.................................................................. G-1

EXHIBIT H.................................................................. H-1

EXHIBIT I.................................................................. I-1

EXHIBIT J.................................................................. J-1

EXHIBIT K.................................................................. K-1

EXHIBIT L.................................................................. L-1

EXHIBIT M....................................................................... M-1

</TABLE>

viii

<PAGE>

THIS POOLING AND SERVICING AGREEMENT, dated as of November 1, 2005, by and

among Popular ABS, Inc., a Delaware corporation, as depositor (the

"DEPOSITOR"), Equity One, Inc., a Delaware corporation, as a seller (in such

capacity, "EQUITY ONE-DELAWARE") and as servicer (in such capacity, the

"SERVICER"), Popular Financial Funding, LLC, a Delaware limited liability

company ("POPULAR FUNDING"), Equity One, Incorporated, a Pennsylvania

corporation ("EQUITY ONE-PENNSYLVANIA"), Popular Financial Services, LLC, a

Delaware limited liability company ("POPULAR FINANCIAL"), Equity One, Inc., a

Minnesota corporation ("EQUITY ONE-MINNESOTA"), Equity One Consumer Loan

Company, Inc., a New Hampshire corporation ("EQUITY ONE-NEW HAMPSHIRE" and,

together with Equity One-Delaware, Popular Funding, Equity One-Pennsylvania,

Popular Financial and Equity One-Minnesota, the "SELLERS"), and JPMorgan Chase

Bank, National Association, a banking association organized under the laws of

the United States, as trustee (the "TRUSTEE").

WITNESSETH THAT

In consideration of the mutual agreements herein contained, the parties

hereto agree as follows:

PRELIMINARY STATEMENT

The Depositor is the owner of the Trust Fund that is hereby conveyed to the

Trustee in return for the Certificates. The Trust Fund (exclusive of the Net WAC

Cap Account, the Reserve Fund and the Yield Maintenance Agreement) for federal

income tax purposes will consist of two REMICs ("REMIC 1" and "REMIC 2"). The

Certificates will represent the entire beneficial ownership interest in the

Trust Fund. The assets of the Trust Fund (exclusive of the Net WAC Cap Account,

the Reserve Fund and the Yield Maintenance Agreement) will constitute the assets

of REMIC 1 and REMIC 1 will issue seventeen uncertificated regular interests

that will be held as the sole assets of REMIC 2. The Class A-1, Class A-2, Class

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

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

Certificates (exclusive of any associated rights to receive payments in the form

of Net WAC Cap Carryover) and the Class X Certificates will represent the

"regular interests" in REMIC 2. The Class M-1, Class M-2, Class M-3, Class M-4,

Class M-5, Class M-6, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates

are subordinate to and provide credit enhancement for the Class A- 1, Class A-2,

Class A-3, Class A-4, Class A-5 and Class A-6 Certificates. The Class M-2, Class

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

B-4 Certificates are subordinate to and provide credit enhancement for the Class

M-1 Certificates. The Class M-3, Class M-4, Class M- 5, Class M-6, Class B-1,

Class B-2, Class B-3 and Class B-4 Certificates are subordinate to and provide

credit enhancement for the Class M-2 Certificates. The Class M-4, Class M-5,

Class M-6, Class B-1, Class B-2, Class B-3 and Class B-4 Certificates are

subordinate to and provide credit enhancement for the Class M-3 Certificates.

The Class M-5, Class M-6, Class B-1, Class B-2, Class B-3 and Class B-4

Certificates are subordinate to and provide credit enhancement for the Class M-4

Certificates. The Class M-6, Class B-1, Class B- 2, Class B-3 and Class B-4

Certificates are subordinate to and provide credit enhancement for the Class M-5

Certificates. The Class B-1, Class B-2, Class B-3 and Class B-4 Certificates are

subordinate to and provide credit enhancement for the Class M-6 Certificates.

The Class B-2, Class B-3 and Class B-4 Certificates are subordinate to and

provide credit enhancement for the Class B- 1 Certificates. The Class B-3 and

Class B-4 Certificates are subordinate to and provide credit enhancement for the

Class B-2 Certificates. The Class B-4 Certificates are subordinate to and

provide credit enhancement for the Class B- 3 Certificates. The Class R-1 and

Class R-2 Interests will be the residual interests in each of REMIC 1 and REMIC

2. All interests created hereby will be retired on or before the Latest Possible

Maturity Date.

<PAGE>

REMIC 1

REMIC 1 will be evidenced by a single uncertificated residual interest,

ownership of which shall be evidenced by the Class R Certificate, and by the

REMIC 1- Accrual Class, and the Class 1-A1, Class 1-A2, Class 1-A3, Class 1-A4,

Class 1-A5, Class 1-A6, Class 1-M1, Class 1-M2, Class 1-M3, Class 1-M4, Class

1-M5, Class 1-M6, Class 1-B1, Class 1-B2, Class 1-B3 and Class 1-B4 Interests,

which will be uncertificated and non-transferable and are hereby designated as

the "regular interests" in REMIC 1 for federal income tax purposes and will

have the following designations, initial principal balances, pass-through

rates, and corresponding Classes of REMIC 2 certificates ("CORRESPONDING

CLASSES"):

<TABLE>

Pass-Through Corresponding

REMIC 1 Interests Initial Balance Rate Class

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

(1/4 Corresponding Class' initial Class

Class 1-A1 Certificate Balance) Net WAC Rate A-1

(1/4 Corresponding Class' initial Class

Class 1-A2 Certificate Balance) Net WAC Rate A-2

(1/4 Corresponding Class' initial Class

Class 1-A3 Certificate Balance) Net WAC Rate A-3

(1/4 Corresponding Class' initial Class

Class 1-A4 Certificate Balance) Net WAC Rate A-4

(1/4 Corresponding Class' initial Class

Class 1-A5 Certificate Balance) Net WAC Rate A-5

(1/4 Corresponding Class' initial Class

Class 1-A6 Certificate Balance) Net WAC Rate A-6

(1/4 Corresponding Class' initial Class

Class 1-M1 Certificate Balance) Net WAC Rate M-1

(1/4 Corresponding Class' initial Class

Class 1-M2 Certificate Balance) Net WAC Rate M-2

(1/4 Corresponding Class' initial Class

Class 1-M3 Certificate Balance) Net WAC Rate M-3

(1/4 Corresponding Class' initial Class

Class 1-M4 Certificate Balance) Net WAC Rate M-4

(1/4 Corresponding Class' initial Class

Class 1-M5 Certificate Balance) Net WAC Rate M-5

(1/4 Corresponding Class' initial Class

Class 1-M6 Certificate Balance) Net WAC Rate M-6

(1/4 Corresponding Class' initial Class

Class 1-B1 Certificate Balance) Net WAC Rate B-1

(1/4 Corresponding Class' initial Class

Class 1-B2 Certificate Balance) Net WAC Rate B-2

(1/4 Corresponding Class' initial Class

Class 1-B3 Certificate Balance) Net WAC Rate B-3

(1/4 Corresponding Class' initial Class

Class 1-B4 Certificate Balance) Net WAC Rate B-4

REMIC 1 Accrual

Class (3/4 Cut-off Date Pool Principal Balance) Net WAC Rate N/A

</TABLE>

<PAGE>

On each Distribution Date, the Interest Remittance Amount shall be

distributed as interest on the regular interests in REMIC 1 at the Pass-Through

Rates shown above, provided, however, that interest that accrues on the REMIC 1

Accrual Class for any Interest Accrual Period shall be deferred and added to

the balance of the REMIC 1 Accrual Class in an amount equal to 25% of the Extra

Principal Distribution Amount for the related Distribution Date.

On each Distribution Date, Available Funds remaining after the distributions

described in the immediately preceding paragraph have been made, shall be

distributed in the following order and priority:

1. Concurrently, to the Class 1-A1, Class 1-A2, Class 1-A3, Class 1-

A4, Class 1-A5, Class 1-A6, Class 1-M1, Class 1-M2, Class 1-M3,

Class 1-M4, Class 1-M5, Class 1-M6, Class 1-B1, Class 1-B2, Class

1-B3 and Class 1-B4 Interests until the balance of each such

Interest equals 25% of the Class Certificate Balance of the

Corresponding Class of Certificates immediately after such

Distribution Date; and

2. To the REMIC 1 Accrual Class until its balance is reduced to zero.

Realized Losses shall be allocated among the regular interests in REMIC 1 in

the same manner in which principal is distributed.

REMIC 2

The following table sets forth characteristics of the Certificates, each of

which, except for the Class R Certificates, is hereby designated a "regular

interest" in REMIC 2, together with the minimum denominations and integral

multiples in excess thereof in which such Classes shall be issuable (except

that one Certificate of each Class of Certificates may be issued in a different

amount and, in addition, one Class R Certificate representing the Tax Matters

Person Certificate may be issued in a different amount):

<PAGE>

<TABLE>

Integral Multiples

Initial Class Minimum in Excess of

Certificate Balance Pass-Through Rate (1) Denomination Minimum

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

Class A-1 $138,712,000 5.361% $25,000 $1

Class A-2 $5,404,000 5.190% $25,000 $1

Class A-3 $42,491,000 5.340% $25,000 $1

Class A-4 $8,788,000 5.636%(2) $25,000 $1

Class A-5 $22,698,000 5.965%(5) $25,000 $1

Class A-6 $12,000,000 5.587%(4) $25,000 $1

Class M-1 $21,828,000 5.820%(5) $25,000 $1

Class M-2 $17,343,000 6.216%(6) $25,000 $1

Class M-3 $3,588,000 LIBOR +0.720%(7) $25,000 $1

Class M-4 $4,485,000 LIBOR +1.400%(8) $25,000 $1

Class M-5 $3,140,000 LIBOR +1.800%(9) $25,000 $1

Class M-6 $2,990,000 LIBOR +2.250%(10) $25,000 $1

Class B-1 $2,990,000 LIBOR + 2.250% $25,000 $1

Class B-2 $2,093,000 LIBOR + 2.250% $25,000 $1

Class B-3 $2,990,000 LIBOR + 2.250% $25,000 $1

Class B-4 $4,784,000 LIBOR + 2.250% $25,000 $1

Class X (11) (12) N/A N/A

Class R $0 N/A N/A N/A

</TABLE>

(1) As to any Distribution Date, this rate shall equal the lesser of (a) the

lesser of (i) the rate per annum set forth above and (ii) 14.00%, and (b)

the applicable Net WAC Cap.

(2) After the Optional Termination Date, this rate will increase to 6.136%.

(3) After the Optional Termination Date, this rate will increase to 6.465%.

(4) After the Optional Termination Date, this rate will increase to 6.087%.

(5) After the Optional Termination Date, this rate will increase to 6.320%.

(6) After the Optional Termination Date, this rate will increase to 6.716%.

(7) After the Optional Termination Date, this rate will increase to LIBOR +

1.080%.

(8) After the Optional Termination Date, this rate will increase to LIBOR +

2.100%.

(9) After the Optional Termination Date, this rate will increase to LIBOR +

2.700%.

(10) After the Optional Termination Date, this rate will increase to LIBOR +

3.375%.

(11) On each Distribution Date, the Class X Certificates will have a notional

balance equal to the Pool Principal Balance.

(12) As to any Distribution Date, the Pass-Through Rate for the Class X

Certificates shall equal the excess of: (a) the Net WAC Rate over (b) the

product of: (i) four and (ii) the weighted average of

<PAGE>

the Pass-Through Rates of the REMIC 1 regular interests, where the REMIC

1 Accrual Class is subject to a cap equal to zero and the Pass-Through

Rate on each other regular interest in REMIC 1 is subject to a cap equal

to the Pass-Through Rate on its Corresponding Class.

All fixed interest rates set forth in this Agreement are calculated based on

a 360-day year consisting of twelve 30-day months (30/360). All adjustable

interest rates set forth in this Agreement are calculated based on a 360-day

year and the actual number of days elapsed in the related Interest Accrual

Period.

<PAGE>

ARTICLE I

DEFINITIONS

Whenever used in this Agreement, the following words and phrases, unless the

context otherwise requires, shall have the following meanings:

60+ Day Delinquent Loan

As of any Distribution Date, each Loan with respect to which any portion of

a Scheduled Payment is, as of the last day of the calendar month immediately

preceding that Distribution Date, 60 days or more contractually past due

(assuming 30 day months), each Loan in foreclosure, all REO Property and each

Loan for which the Mortgagor has filed for bankruptcy after the Closing Date.

Adjustable Rate Certificates

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

B-3 and Class B-4 Certificates.

Adjusted Mortgage Rate

As to each Loan, and at any time, the per annum rate equal to the Mortgage

Rate less the Servicing Fee Rate.

Adjusted Net Mortgage Rate

As to each Loan, and at any time, the per annum rate equal to the Mortgage

Rate less the related Expense Rate.

Advance

The payment required to be made by the Servicer with respect to any

Distribution Date pursuant to Section 4.01, the amount of any such payment

being equal to the aggregate of payments of principal and interest (net of the

Servicing Fee) on the Loans that were due on such Loans' respective Due Dates

in the related Due Period and not received as of the close of business on the

Determination Date in the month of such Distribution Date, other than the

aggregate amount of any such delinquent payments that the Servicer, in its good

faith judgment, has determined would not be recoverable out of Insurance

Proceeds, Liquidation Proceeds or otherwise from the related Loans.

Aggregate Class B Early Distribution Amount

As of any Distribution Date, the aggregate sum of all amounts paid to the

Class B-4, Class B-3, Class B-2 and Class B-1 Certificates on prior

Distribution Dates pursuant to clauses (xxxv), (xxxvi), (xxxvii) and (xxxviii)

of Section 4.02(d).

Agreement

This Pooling and Servicing Agreement, together with all of the exhibits and

schedules hereto, and all amendments or supplements of any of the foregoing.

Amount Held for Future Distribution

As to any Distribution Date and the Offered Certificates, the aggregate

amount held in the Certificate Account at the close of business on the related

Determination Date on account of (a) Principal Prepayments, Liquidation

Proceeds and Recoveries received after the Prepayment Period corresponding to

such Distribution Date and (b) all Scheduled Payments due after the Loans'

respective Due Dates in the related Due Period.

<PAGE>

Applied Realized Loss Amount

With respect to (a) the Class M-1 Certificates, the Class M-1 Applied

Realized Loss Amount, (b) the Class M-2 Certificates, the Class M-2 Applied

Realized Loss Amount, (c) the Class M-3 Certificates, the Class M-3 Applied

Realized Loss Amount, (d) the Class M-4 Certificates, the Class M-4 Applied

Realized Loss Amount, (e) the Class M-5 Certificates, the Class M-5 Applied

Realized Loss Amount, (f) the Class M-6 Certificates, the Class M-6 Applied

Realized Loss Amount, (g) the Class B-1 Certificates, the Class B-1 Applied

Realized Loss Amount, (h) the Class B-2 Certificates, the Class B-2 Applied

Realized Loss Amount, (i) the Class B-3 Certificates, the Class B-3 Applied

Realized Loss Amount and (j) the Class B-4 Certificates, the Class B-4 Applied

Realized Loss Amount.

Available Funds

As to any Distribution Date, the sum of (a) the aggregate amount held in the

Certificate Account at the close of business on the related Determination Date

net of the Amount Held for Future Distribution and net of amounts permitted to

be withdrawn from the Certificate Account pursuant to clauses (i)--(viii),

inclusive, of Section 3.08(a) and amounts permitted to be withdrawn from the

Distribution Account pursuant to clauses (i) and (ii) of Section 3.08(b), (b)

the amount of the related Advance, if any, and (c) the aggregate of the

Purchase Prices and Substitution Adjustment Amounts received on or before the

related Distribution Account Deposit Date and (d) with respect to the initial

Distribution Date, the Initial Certificate Account Deposit.

Balloon Loans

Loans with balloon payments.

Bankruptcy Code

The United States Bankruptcy Reform Act of 1978, as amended, and related

rules promulgated thereunder.

Basic Principal Distribution Amount

With respect to any Distribution Date, the amount by which (a) the Principal

Remittance Amount for that Distribution Date exceeds (b) the

Overcollateralization Release Amount, if any, for that Distribution Date.

Beneficial Owner

With respect to any Book-Entry Certificate, the Person who is the beneficial

owner of such Book-Entry Certificate.

Book-Entry Certificates

The Offered Certificates.

Business Day

Any day other than (a) a Saturday or a Sunday or (b) a day on which banking

institutions in New York City, or in the city where the chief executive office

of the Servicer is located, are authorized or obligated by law or executive

order to be closed.

Certificates

The Offered Certificates, the Class R Certificates and the Class X

Certificates.

Certificate Account

The separate Eligible Account created and maintained by the Servicer

pursuant to Section 3.05 with a depository institution in the name of the

Servicer for the benefit of the Trustee on

<PAGE>

behalf of the Certificateholders and designated "Certificate Account, Equity

One, Inc., as trustee for the registered holders of Popular ABS, Inc., Mortgage

Pass-Through Certificates Series 2005-D."

Certificate Balance

With respect to any Offered Certificate at any time, the maximum dollar

amount of principal to which the Holder thereof is then entitled hereunder,

such amount being equal to the Denomination thereof reduced by the sum of (a)

all amounts previously distributed to that Offered Certificate as payments of

principal, and (b) with respect to any Offered Certificate that is a Class B-4,

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

Class M-2 or Class M-1 Certificate, that Offered Certificate's pro rata share

of the cumulative amount of Applied Realized Loss Amounts with respect to such

Class for all prior Distribution Dates.

Certificateholder or Holder

The person in whose name a Certificate is registered in the Certificate

this Agreement, any Certificate registered in the name of the Depositor or any

affiliate of the Depositor shall be deemed not to be Outstanding and the

Percentage Interest evidenced thereby shall not be taken into account in

determining whether the requisite amount of Percentage Interests necessary to

effect such consent has been obtained; provided, however, that if any such

Person (including the Depositor) owns 100% of the Percentage Interests

evidenced by a Class of Certificates, such Certificates shall be deemed to be

Outstanding for purposes of any provision hereof that requires the consent of

the Holders of Certificates of a particular Class as a condition to the taking

of any action hereunder. The Trustee is entitled to rely conclusively on a

certification of the Depositor or any affiliate of the Depositor in determining

which Certificates are registered in the name of an affiliate of the Depositor.

Certificate Register

The register maintained pursuant to Section 5.02.

Certificate Registrar

JPMorgan Chase Bank, N.A. and its successors and, if a successor certificate

registrar is appointed hereunder, such successor.

Class

All Certificates bearing the same class designation as set forth in the

Preliminary Statement.

Class A-1 Certificate

Any Certificate executed and authenticated by the Trustee substantially in

the form attached hereto as Exhibit A-1 and designated as a Class A-1

Certificate.

Class A-2 Certificate

Any Certificate executed and authenticated by the Trustee substantially in

the form attached hereto as Exhibit A-1 and designated as a Class A-2

Certificate.

Class A-3 Certificate

Any Certificate executed and authenticated by the Trustee substantially in

the form attached hereto as Exhibit A-1 and designated as a Class A-3

Certificate.

Class A-4 Certificate

<PAGE>

Any Certificate executed and authenticated by the Trustee substantially in

the form attached hereto as Exhibit A-1 and designated as a Class A-4

Certificate.

Class A-5 Certificate

Any Certificate executed and authenticated by the Trustee substantially in

the form attached hereto as Exhibit A-1 and designated as a Class A-5

Certificate.

Class A-6 Certificate

Any Certificate executed and authenticated by the Trustee substantially in

the form attached hereto as Exhibit A-1 and designated as a Class A-6

Certificate.

Class A-6 Lockout Distribution Amount

As of any Distribution Date (a) prior to the December 2014 Distribution

Date, will be the lesser of (i) the product of (1) the applicable Class A-6

Lockout Percentage for that Distribution Date and (2) the Class A-6 Pro Rata

Distribution Amount for that Distribution Date and (ii) the Class Certificate

Balance of the Class A-6 Certificates immediately prior to that Distribution

Date, and (b) on or after the December 2014 Distribution Date, will be (1) if

the Stepdown Date has occurred and a Trigger Event is not in effect, the Senior

Principal Distribution Amount or (2) if the Stepdown Date has not occurred or a

Trigger Event is in effect, the Principal Distribution Amount, each for such

Distribution Date.

Class A-6 Lockout Percentage

As of each Distribution Date shall be as follows:

<TABLE>

DISTRIBUTION DATE CLASS A-6 LOCKOUT PERCENTAGE

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

<S> <C>

December 2005 -- November 2008 0%

December 2008 -- November 2010 45%

December 2010 -- November 2011 80%

December 2011 -- November 2012 100%

December 2012 -- November 2014 300%

</TABLE>

Class A-6 Pro Rata Distribution Amount

As of any Distribution Date will be an amount equal to the product of (a) a

fraction, the numerator of which is the Class Certificate Balance of the Class

A-6 Certificates immediately prior to such Distribution Date and the

denominator of which is an amount equal to the sum of the Class Certificate

Balances of all classes of the Senior Certificates immediately prior to such

Distribution Date and (b) (i) if the Stepdown Date has occurred and a Trigger

Event is not in effect, the Senior Principal Distribution Amount or (ii) if the

Stepdown Date has not occurred or a Trigger Event is in effect, the Principal

Distribution Amount, each for such Distribution Date.

Class B-1 Applied Realized Loss Amount

As to the Class B-1 Certificates and as of any Distribution Date, the lesser

of (a) the Class Certificate Balance thereof (after taking into account the

distribution of the Principal Distribution Amount on that Distribution Date,

but prior to the application of the Class B-1 Applied Realized Loss Amount, if

any, on that Distribution Date) and (b) the excess of (i) the Realized Loss

Amount as of that Distribution

<PAGE>

Date over (ii) the sum of the Class B-2 Applied Realized Loss Amount, the Class

B-3 Applied Realized Loss Amount and the Class B-4 Applied Realized Loss

Amount, in each case as of that Distribution Date.

Class B-1 Certificate

Any Certificate executed and authenticated by the Trustee substantially in

the form attached hereto as Exhibit A-4 and designated as a Class B-1

Certificate.

Class B-1 Principal Distribution Amount

As of any Distribution Date on or after the Stepdown Date and as long as a

Trigger Event is not in effect, the excess of (a) the sum of (i) the sum of the

Class Certificate Balances of the Senior Certificates (after taking into

account the payment of the Senior Principal Distribution Amount on that

Distribution Date), (ii) the Class Certificate Balance of the Class M-1

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

Distribution Amount on that Distribution Date), (iii) the Class Certificate

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

the Class M-2 Principal Distribution Amount on that Distribution Date), (iv)

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

account the payment of the Class M-3 Principal Distribution Amount on that

Distribution Date), (v) the Class Certificate Balance of the Class M-4

Certificates (after taking into account the payment of the Class M-4 Principal

Distribution Amount on that Distribution Date), (vi) the Class Certificate

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

the Class M-5 Principal Distribution Amount on that Distribution Date), (vii)

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

account the payment of the Class M-6 Principal Distribution Amount on that

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

Certificates immediately prior to that Distribution Date over (b) the lesser of

(i) the product of (A) 90.20% and (B) the Pool Principal Balance as of the last

day of the related Due Period and (ii) the Pool Principal Balance as of the

last day of the related Due Period minus the product of (A) 0.50% and (B) the

Cut-off Date Pool Principal Balance.

Class B-1 Realized Loss Amortization Amount

As to the Class B-1 Certificates and as of any Distribution Date, the lesser

of (a) the Unpaid Realized Loss Amount for the Class B-1 Certificates as of

that Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow

Amount over (ii) the sum of the amounts described in clauses (i) through

(xxiii) of Section 4.02(d) for that Distribution Date.

Class B-2 Applied Realized Loss Amount

As to the Class B-2 Certificates and as of any Distribution Date, the lesser

of (a) the Class Certificate Balance thereof (after taking into account the

distribution of the Principal Distribution Amount on that Distribution Date,

but prior to the application of the Class B-2 Applied Realized Loss Amount, if

any, on that Distribution Date) and (b) the excess of (i) the Realized Loss

Amount as of that Distribution Date over (ii) the sum of the Class B-3 Applied

Realized Loss Amount and the Class B-4 Applied Realized Loss Amount, in each

case as of that Distribution Date.

Class B-2 Certificate

Any Certificate executed and authenticated by the Trustee substantially in

the form attached hereto as Exhibit A-4 and designated as a Class B-2

Certificate.

Class B-2 Principal Distribution Amount

As of any Distribution Date on or after the Stepdown Date and as long as a

Trigger Event is not in effect, the excess of (a) the sum of (i) the sum of the

Class Certificate Balances of the Senior Certificates (after taking into

account the payment of the Senior Principal Distribution Amount on that

Distribution Date), (ii) the Class Certificate Balance of the Class M-1

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

Distribution Amount on that Distribution Date), (iii) the

<PAGE>

Class Certificate Balance of the Class M-2 Certificates (after taking into

account the payment of the Class M-2 Principal Distribution Amount on that

Distribution Date), (iv) the Class Certificate Balance of the Class M-3

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

Distribution Amount on that Distribution Date), (v) the Class Certificate

Balance of the Class M-4 Certificates (after taking into account the payment of

the Class M-4 Principal Distribution Amount on that Distribution Date), (vi)

the Class Certificate Balance of the Class M-5 Certificates (after taking into

account the payment of the Class M-5 Principal Distribution Amount on that

Distribution Date), (vii) the Class Certificate Balance of the Class M-6

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

Distribution Amount on that Distribution Date), (viii) the Class Certificate

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

the Class B-1 Principal Distribution Amount on that Distribution Date) and (ix)

the Class Certificate Balance of the Class B-2 Certificates immediately prior

to that Distribution Date over (b) the lesser of (i) the product of (A) 91.60%

and (B) the Pool Principal Balance as of the last day of the related Due Period

and (ii) the Pool Principal Balance as of the last day of the related Due

Period minus the product of (A) 0.50% and (B) the Cut-off Date Pool Principal

Balance.

Class B-2 Realized Loss Amortization Amount

As to the Class B-2 Certificates and as of any Distribution Date, the lesser

of (a) the Unpaid Realized Loss Amount for the Class B-2 Certificates as of

that Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow

Amount over (ii) the sum of the amounts described in clauses (i) through (xxvi)

of Section 4.02(d) for that Distribution Date.

Class B-3 Applied Realized Loss Amount

As to the Class B-3 Certificates and as of any Distribution Date, the lesser

of (a) the Class Certificate Balance thereof (after taking into account the

distribution of the Principal Distribution Amount on that Distribution Date,

but prior to the application of the Class B-3 Applied Realized Loss Amount, if

any, on that Distribution Date) and (b) the excess of (i) the Realized Loss

Amount as of that Distribution Date over (ii) the Class B-4 Applied Realized

Loss Amount as of that Distribution Date.

Class B-3 Certificate

Any Certificate executed and authenticated by the Trustee substantially in

the form attached hereto as Exhibit A-4 and designated as a Class B-3

Certificate.

Class B-3 Principal Distribution Amount