Common use of Allocation of Losses Clause in Contracts

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior The Group 1, Group 2, Group 3, Group 4, Group 5, Group B and Class D-P Certificates. Realized Losses on the Group 1, Group 2, Group 3, Group 4 and Group 5 Mortgage Loans with respect to each Determination Dateany Distribution Date shall be allocated by the Trust Administrator to the Classes of Group 1, Group 2, Group 3, Group 4 and Group 5, Group B and Class D-P Certificates as follows: (i) except as provided in the Master Servicer shall determine the amount of parenthetical below, any Realized Loss on a Group 1, Group 2, Group 3, Group 4 or Group 5 Mortgage Loan, other than an Excess Loss, shall be allocated first, to the Group B Certificates in respect decreasing order of their alphanumerical Class designations (beginning with the Class B-8 Certificates), until the respective Class Principal Balance of each such Class is reduced to zero, and second, to the Senior Certificates, or with respect to the Class 2-A-1 and Class 2-A-2 Certificates, the Components (other than the Notional Amount Certificates) related to such Loan Group, pro rata, on the basis of their respective Class Principal Balances (except if the loss is recognized with respect to a Class P Mortgage Loan, in which case the applicable Class P Fraction of such loss will first be allocated to the Class D-P Certificates, as applicable, and the remainder of the loss will be allocated as described above); provided, however, that (A) Realized Losses which would otherwise be allocated to a Component of the Class 2-A-1 Certificates will instead be allocated to a Component of the Class 2-A-2 Certificates related to the same Loan Group, until that occurred during Component Principal Balance related to the immediately preceding calendar monthClass 2-A-2 Certificates is reduced to zero; (B) Realized Losses which would otherwise be allocated to the Class 2-A-4 Certificates will instead be allocated to the Class 2-A-5 Certificates, until the Class Principal Balance of the Class 2-A-5 Certificates is reduced to zero; (C) Realized Losses which would otherwise be allocated to the Class 3-A-4 Certificates will instead be allocated to the Class 3-A-3 Certificates, until the Class Principal Balance of the Class 3-A-3 Certificates is reduced to zero, and (D) Realized Losses which would otherwise be allocated to the Class 3-A-1 Certificates will instead be allocated to the Class 3-A-10 Certificates, until the Class Principal Balance of the Class 3-A-10 Certificates is reduced to zero. (ii) except as provided in parenthetical below, Excess Losses for the Group 1, Group 2, Group 3, Group 4 and Group 5 Mortgage Loans will be allocated among all Classes of Group 1, Group 2, Group 3, Group 4 and Group 5 Certificates (other than the Notional Amount Certificates and the Class P Certificates) and the Group B Certificates, pro rata, based on their respective Class Principal Balances or Component Principal Balance, as applicable (except if the loss is recognized with respect to a Class P Mortgage Loan, in which case the applicable Class P Fraction of such loss will first be allocated to the Class D-P Certificates, as applicable, and the remainder of the loss will be allocated as described above). (b) With The Group 6, Group 7, Group 8, Group 9, Group 10, Group 11, Group 12, Group D-B and Class D-P Certificates. Realized Losses on the Group 6, Group 7, Group 8, Group 9, Group 10, Group 11 and Group 12 Mortgage Loans with respect to any Distribution Date shall be allocated by the Trust Administrator to the Classes of Group 6, Group 7, Group 8, Group 9, Group 10, Group 11, Group 12, Group D-B and Class D-P Certificates as follows: (i) except as provided in the parenthetical below, any Realized Loss on a Group 6, Group 7, Group 8, Group 9, Group 10, Group 11 and Group 12 Mortgage Loan, other than an Excess Loss, shall be allocated first, to the Group D-B Certificates in decreasing order of their alphanumerical Class designations (beginning with the Class D-B-10 Certificates), until the respective Class Principal Balance of each such Class is reduced to zero, and second, to the Senior Certificates related to such Loan Group (other than the Notional Amount Certificates and the Class P Certificates), pro rata, on the basis of their respective Class Principal Balances (except if the loss is recognized with respect to a Class P Mortgage Loan, in which case the applicable Class P Fraction of such loss will first be allocated to the Class D-P Certificates and the remainder for the loss will be allocated as described above); provided, however, that (A) Realized Losses which would otherwise be allocated to the Class 7-A-4 Certificates will instead be allocated to the Class 7-A-3 Certificates, until the Class Principal Balance of the Class 7-A-3 Certificates is reduced to zero; (B) Realized Losses which would otherwise be allocated to the Class 8-A-4 Certificates will instead be allocated to the Class 8-A-10 Certificates, until the Class Principal Balance of the Class 8-A-10 Certificates is reduced to zero; (C) Realized Losses which would otherwise be allocated to the Class 9-A-1 and Class 9-A-4 Certificates, up to an amount equal to 16.02% and 83.98%, respectively, of the Class Principal Balance of the Class 9-A-3 Certificates for such Distribution Date, and up to a maximum of $412,500 and $2,163,000, respectively, will instead be allocated to the Class 9-A-3 Certificates, until the Class Principal Balance of the Class 9-A-3 Certificates is reduced to zero; (D) Realized Losses which would otherwise be allocated to the Class 10-A-4 Certificates will instead be allocated to the Class 10-A-5 Certificates, until the Class Principal Balance of the Class 10-A-5 Certificates is reduced to zero and; (E) Realized Losses which would otherwise be allocated to the Class 11-A-1 Certificates will instead be allocated to the Class 11-A-3 Certificates, until the Class Principal Balance of the Class 11-A-3 Certificates is reduced to zero. (ii) except as provided in the parenthetical below, Excess Losses for the Group 6, Group 7, Group 8, Group 9, Group 10, Group 11 and Group 12 Mortgage Loans will be allocated among all Classes of Group 6, Group 7, Group 8, Group 9, Group 10, Group 11 and Group 12 Certificates (other than the Interest Only Notional Amount Certificates and the Class P Certificates) on any Distribution Date, and the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Group D-B Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon on their respective Current Class Principal Amounts. The principal portion Balances (except if the loss is recognized with respect to a Class P Mortgage Loan, in which case the applicable Class P Fraction of any allocation of Realized Losses on such loss will first be allocated to the Mortgage Loans shall be accomplished by reducing Class D-P Certificates and the Current Principal Amount remainder of the related Certificates on the related Distribution Dateloss will be allocated as described above). (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fc) On each Distribution Date, if the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount sum of (ia) with respect to the Subordinate Certificate Writedown Amountaggregate Class Principal Balance of all Group 1, if prior to the Cross-Over DateGroup 2, the Subordinate CertificatesGroup 3, in the reverse order of their numerical Class designationsGroup 4, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Group 5 and Group B Certificates and (iiib) from the applicable Class P Fraction of each Class P Mortgage Loan in Loan Group 1 exceeds the aggregate Stated Principal Balance of the Group 1, Group 2, Group 3, Group 4 and after the Cross-Over Date, the Senior Certificates Group 5 Mortgage Loans (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made of principal and the allocation of all losses to such Certificates on such Distribution Date), such excess will be deemed a principal loss and shall be allocated by the Trust Administrator to the most junior Class of Group B Certificates then outstanding, in reduction of its Class Principal Balance. On each Distribution Date, if the sum of (a) the aggregate Class Principal Balance of all Group 6, Group 7, Group 8, Group 9, Group 10, Group 11, Group 12 and Group D-B Certificates and (b) the applicable Class P Fraction of each Class P Mortgage Loan in Loan Group 6 exceeds the aggregate Stated Principal Balance of the Group 6, Group 7, Group 8, Group 9, Group 10, Group 11, Group 12 Mortgage Loans (after giving effect to distributions of principal and the allocation of all losses to such Certificates on such Distribution Date), such excess will be deemed a principal loss and shall be allocated by the Trust Administrator to the most junior Class of Group D-B Certificates then outstanding, in reduction of its Class Principal Balance. (gd) Any Net Interest Shortfalls on allocation by the Mortgage Loans will be allocated among the Classes Trust Administrator of Certificates in proportion Realized Losses to the respective amounts of Accrued a Certificate Interest that would have been allocated thereto or any reduction in the absence Certificate Balance of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect a Certificate pursuant to this Section 4.02 shall be accomplished by reducing its Certificate Balance, immediately following the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, distributions made on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interestthe definition of “Certificate Balance.”

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, if such loss is on a Group 1, Group 2, Group 3, Group 4, Group 5, Group 6, Group 7 or Group 8 Mortgage Loan, to each Class of the Group 1, Group 2, Group 3, Group 4, Group 5, Group 6, Group 7 or Group 8 Senior Certificates, respectively; and ninth, to the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and or the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Cross- Over Date, the Current Principal Amounts of the Senior Mezzanine Certificates and Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, designations and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans in any Loan Group will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, if such loss is on (x) a Group I Mortgage Loan, to each Class of the Group I Senior Certificates, (y) a Group II Mortgage Loan, to the Group II Senior Certificates, and (z) a Group III Mortgage Loan, to the Group III Senior Certificates; and ninth, to the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group), on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates of the Classes of such Certificate Group or Certificate Groups as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such the related Loan Group or Loan Groups as of the first day of the month of such Distribution related Due Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, the Group II Mortgage Loans or the Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, the Group II Available Funds or the Group III Available Funds, respectively, Funds on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Group I Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X 2X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Group II Senior Certificates and to Component 3X 2X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of the Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Group III Senior Certificates and to Component 3X 2X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination DateThe Group 1, Group 2, Group 3, Group 4, Group 5 and Group C-B Certificates. Realized Losses on the Master Servicer shall determine the amount of any Realized Loss in respect of each Group 1, Group 2, Group 3, Group 4 and Group 5 Mortgage Loan that occurred during the immediately preceding calendar month. (b) With Loans with respect to any Distribution Date shall be allocated by the Trust Administrator to the Classes of Group 1, Group 2, Group 3, Group 4, Group 5 and Group C-B Certificates as follows: (other than i) except as provided in the Interest Only Certificates) on parenthetical below, any Distribution Date, the principal portion of each Realized Loss on a Group 1, Group 2, Group 3, Group 4 or Group 5 Mortgage Loan Loan, other than an Excess Loss, shall be allocated as follows: first, to the Group C-B Certificates in decreasing order of their alphanumerical Class designations (beginning with the Class C-B-6 Certificates Certificates), until the Current respective Class Principal Amount thereof has been Balance of each such Class is reduced to zero; , and second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Notional Amount Certificates) in the related Certificate to such Loan Group, pro rata based upon rata, on the basis of their respective Current Class Principal Amounts. Balances; provided, however, that (cA) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall Losses which would otherwise be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates allocated to the extent that such allocation would result in Class 1-A-1 Certificates, will instead be allocated to the reduction of Class 1-A-2 Certificates, until the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Class Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Class 1-A-2 Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been is reduced to zero, the principal portion of (B) Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will which would otherwise be allocated to the Senior Certificate Class 1-A-3 Certificates, will instead be allocated to the Class 1-A-6 Certificates, until the Class Principal Balance of the other Certificate GroupsClass 1-A-6 Certificates is reduced to zero, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of (C) Realized Losses on which would otherwise be allocated to the Mortgage Loans shall Class 2-A-2 Certificates, will instead be accomplished by reducing allocated to the Current Class 2-A-5 Certificates, until the Class Principal Amount Balance of the related Class 2-A-5 Certificates on is reduced to zero, (D) Realized Losses which would otherwise be allocated to the related Distribution DateClass 3-A-1 Certificates, will instead be allocated to the Class 3-A-3 Certificates, until the Class Principal Balance of the Class 3-A-3 Certificates is reduced to zero, (E) Realized Losses which would otherwise be allocated to the Class 4-A-2 Certificates, will instead be allocated to the Class 4-A-3 Certificates, until the Class Principal Balance of the Class 4-A-3 Certificates is reduced to zero and (F) Realized Losses which would otherwise be allocated to the Class 5-A-2 Certificates, will instead be allocated to the Class 5-A-3 Certificates, until the Class Principal Balance of the Class 5-A-3 Certificates is reduced to zero. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on Excess Losses for the Mortgage Loans will be allocated among the all Classes of Senior Certificates in proportion (other than the Notional Amount Certificates) and Group C-B Certificates, pro rata, based on their respective Class Principal Balances. (b) On each Distribution Date, if the aggregate Class Principal Balance of all Group 1, Group 2, Group 3, Group 4 and Group 5 and Class C-B Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans (after giving effect to distributions of principal and the respective amounts allocation of Accrued Certificate Interest that would have been allocated thereto in the absence of all losses to such Net Interest Shortfalls for Certificates on such Distribution Date. The interest portion ), such excess will be deemed a principal loss and shall be allocated by the Trust Administrator to the most junior Class of any Group C-B Certificates then outstanding, in reduction of its Class Principal Balance. (c) Any allocation by the Trust Administrator of Realized Losses with respect to a Certificate or any reduction in the Group I Mortgage LoansCertificate Balance of a Certificate pursuant to this Section 4.02 shall be accomplished by reducing its Certificate Balance, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to immediately following the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, distributions made on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interestthe definition of “Certificate Balance.”

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighthif such loss is on a Group 1, Group 2, Group 3 or Group 4 Mortgage Loan, to each Class of the Senior Certificates (other than the Interest Only Certificates) in of the related Certificate Mortgage Loan Group, on a pro rata based upon their respective Current Principal Amountsbasis; and eighth, to the Senior Certificates (other than the Interest Only Certificates), on a pro rata basis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans in any Loan Group will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on a Group 1, Group 2, Group 3, Group 4, Group 5, Group 6 or Group 7 Mortgage Loan, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and Group 1, Group 2, Group 3, Group 4, Group 5, Group 6 or Group 7 Senior Certificates, respectively. eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans in any Loan Group will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan in each Mortgage Loan Group that occurred during the immediately preceding calendar month. The Master Servicer's determination of any Realized Losses shall be based solely upon the information provided by the Sub-Servicers. The Trustee shall then with respect to each such Mortgage Loan in each Mortgage Loan Group allocate Realized Losses on a pro rata basis between the PO Percentage of the Scheduled Principal Balance of a Mortgage Loan which suffered a Realized Loss and the Non-PO Percentage of the Scheduled Principal Balance of such Mortgage Loan. (bA) With respect to any Certificates (other than the Interest Only Determination Date, with respect to Group 1 Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Group 1 Mortgage Loan (other than any Excess Bankruptcy Loss, Excess Special Hazard Loss and Excess Fraud Loss) shall be allocated as follows: (i) The applicable PO Percentage of any such Realized Loss shall be allocated to the Component 1-PO; and (ii) The applicable Non-PO Percentage of any such Realized Loss shall be allocated as follows: first, to the Class B-6 Certificates until the Current current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount amount thereof has been reduced to zero; seventh, to the Classes of Group 1 Senior Certificates (other than the Class M 1-A-7, Class 1-X Certificates and Component 1-PO), pro rata, in accordance with their Current Principal Amounts; (B) With respect to any Determination Date, with respect to Group 2 Certificates, the principal portion of each Realized Loss on a Group 2 Mortgage Loan (other than any Excess Bankruptcy Loss, Excess Special Hazard Loss and Excess Fraud Loss) shall be allocated as follows: (i) The applicable PO Percentage of any such Realized Loss shall be allocated to the Component 2-PO; and (ii) The applicable Non-PO Percentage of any such Realized Loss shall be allocated as follows: first, to the Class B-6 Certificates until the current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; and eighththird, to each the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal amount thereof has been reduced to zero; seventh, to the Classes of the Group 2 Senior Certificates (other than the Interest Only Class 2-A-4, Class 2-X Certificates and Component 2-PO), pro rata, in accordance with their Current Principal Amounts; (C) With respect to any Determination Date, with respect to Group 3 Certificates, the principal portion of each Realized Loss on a Group 3 Mortgage Loan (other than any Excess Bankruptcy Loss, Excess Special Hazard Loss and Excess Fraud Loss) shall be allocated as follows: (i) The applicable PO Percentage of any such Realized Loss shall be allocated to the Component 3-PO; and (ii) The applicable Non-PO Percentage of any such Realized Loss shall be allocated as follows: first, to the Class 3-B-6 Certificates until the current Principal Amount thereof has been reduced to zero; second, to the Class 3-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class 3-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class 3-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class 3-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class 3-B-1 Certificates until the Current Principal amount thereof has been reduced to zero; seventh, to the Classes of Group 3 Senior Certificates (other than the 3-X Certificates and Component 3-PO), pro rata, in accordance with their Current Principal Amounts; (D) With respect to any Determination Date, with respect to Group 4 Certificates, the principal portion of each Realized Loss on a Group 4 Mortgage Loan (other than any Excess Bankruptcy Loss, Excess Special Hazard Loss and Excess Fraud Loss) shall be allocated as follows: (i) The applicable PO Percentage of any such Realized Loss shall be allocated to the Component 4-PO; and (ii) The applicable Non-PO Percentage of any such Realized Loss shall be allocated as follows: first, to the Class 4-B-6 Certificates until the current Principal Amount thereof has been reduced to zero; second, to the Class 4-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class 4-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class 4-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class 4-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class 4-B-1 Certificates until the Current Principal amount thereof has been reduced to zero; seventh, to the Classes of Group 4 Senior Certificates (other than the Class 4-X Certificates and Component 4-PO), pro rata, in accordance with their Current Principal Amounts; and (E) With respect to any Distribution Date, the principal portion of any Excess Loss related to a Mortgage Loan Group shall be allocated as follows: (i) with respect to each Group of Mortgage Loans, the applicable PO Percentage of any such Excess Loss shall be allocated to the related Component of the Class PO Certificates; and (ii) with respect to each Group of Mortgage Loans, the applicable Non-PO Percentage of any such Excess Loss shall be allocated among all Classes of Certificates of the related Certificate GroupGroup (other than the Notional Amount Certificates and Class PO Certificates), pro rata rata, based upon their on the respective Current Principal AmountsAmounts thereof. (cF) Notwithstanding the foregoing clause (b)foregoing, no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (iA) the Senior Mezzanine Certificates or any Class of Group 1 or Classes of Subordinate Group 2 Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Group 1 and Group 2 Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Group 1 and Group 2 Mortgage Loans as of the first day of the month of such Distribution Date and (iisuch limitation, the "Group 1-2 Loss Allocation Limitation"), (B) Senior a Class of Group 3 Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Group 3 Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on such date, to an amount less than the aggregate Scheduled Principal Balance of the Group 3 Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the "Group 3 Loss Allocation Limitation") and (C) a Class of Group 4 Certificates to the extent that such allocation would result in the related Loan reduction of the aggregate Current Principal Amounts of all the Group 4 Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Group 4 Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Group 4 Loss Allocation Limitation"). (dc) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificatespursuant to Subsection 6.03(b) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans pursuant to this Subsection 6.03(c) shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution DateDate in accordance with Subsection 6.03(d). (ed) Realized Losses on the Mortgage Loans allocated in accordance with this Section 6.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date, except that the aggregate amount of Realized Losses to be allocated to the Component 1-PO, Component 2-PO, Component 3-PO and Component 4-PO on any Distribution Date through the related Cross-Over Date will be taken into account in determining distributions in respect of the Component 1-PO Deferred Amount, Component 2-PO Deferred Amount, Component 3-PO Deferred Amount and Component 4-PO Deferred Amount, respectively, for such Distribution Date. (fe) On each Distribution Date, the Securities Administrator Master Servicer shall determine and notify the Paying Agent of the Senior Mezzanine Group 1-2 Subordinate Certificate Writedown Amount, Group 3 Subordinate Certificate Writedown Amount and the Group 4 Subordinate Certificate Writedown Amount, respectively, if any. Any such Senior Mezzanine Group 1-2 Subordinate Certificate Writedown Amount, Group 3 Subordinate Certificate Writedown Amount or Group 4 Subordinate Certificate Writedown Amount Amount, respectively, shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Group 1-2 Cross-Over Date, Group 3 Cross-Over Date or Group 4 Cross-Over Date, as applicable, the Current Principal Amounts of the Group 1-2 Subordinate Certificates, the Group 3 Subordinate Certificates and the Group 4 Subordinate Certificates, respectively, in the reverse order of their numerical Class designations, designations and (ii) with respect to from and after the Senior Mezzanine Certificate Writedown Amount, if prior to the Group 1-2 Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Group 3 Cross-Over Date or Group 4 Cross-Over Date, as applicable, the Group 1 Senior Certificates (other than with respect to Realized Losses in Mortgage Loan Group 1), the Interest Only CertificatesGroup 2 Senior Certificates (with respect to Realized Losses in Mortgage Loan Group 2), the Group 3 Senior Certificates (with respect to Realized Losses in Mortgage Loan Group 3) and the Group 4 Senior Certificates (with respect to Realized Losses in Mortgage Loan Group 4), pro rata based on their respective Current Principal Amounts, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, on or prior to the Group 1-2 Cross-Over Date, Group 3 Cross-Over Date and Group 4 Cross-Over Date, as applicable, the Master Servicer shall determine the Component PO Deferred Payment Writedown Amount, with respect to each of Component 1-PO, Component 2-PO, Component 3-PO and Component 4-PO, if any. Any such Component PO Deferred Payment Writedown Amount with respect to Component 1-PO, Component 2-PO, Component 3-PO and Component 4-PO shall effect a corresponding reduction in the Current Principal Amount of the Group 1-2 Subordinate Certificates, Group 3 Subordinate Certificates or Group 4 Subordinate Certificate, respectively, in the reverse order of their numerical Class designations. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the on Group I 1 Mortgage Loans, Group II 2 Mortgage Loans, Group 3 Mortgage Loans or and Group III 4 Mortgage Loans occurring on or prior to the Group 1-2 Cross-Over Date (with respect to Group 1 and Group 2 Mortgage Loans), the Group 3 Cross-Over Date (with respect to Group 3 Mortgage Loans) or the Group 4 Cross-Over Date (with respect to Group 4 Mortgage Loans), will not be allocated among any Certificates, but will reduce the amount of Group I 1 Available Funds, Group II 2 Available Funds, Group 3 Available Funds or and Group III 4 Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and each Group of Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Group 1-2 Subordinate Certificates (with respect to Group 1 and Group 2 Mortgage Loans), Group 3 Subordinate Certificates (with respect to Group 3 Mortgage Loans) and Group 4 Subordinate Certificates (with respect to Group 4 Mortgage Loans), respectively, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Group I Mortgage Loan shall be allocated as follows: first, to the Class I-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class I-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class I-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class I-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class I-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class I-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M I-M-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, if such loss is on a Group I-1, Group I-2, Group I-3 or Group I-4 Mortgage Loan, to each Class of the Group I-1, Group I-2, Group I-3 or Group I-4 Senior Certificates (other than Certificates, respectively; and ninth, to the Interest Only Group I Senior Certificates) in the related Certificate Group, on a pro rata based upon their respective Current Principal Amountsbasis. (c) With respect to any Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan shall be allocated as follows: first, to the Class II-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class II-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class II-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class II-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class II-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class II-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on a Group II-1 or Group II-2 Mortgage Loan, to the Group II-1 or Group II-2 Senior Certificates, respectively; and eighth, to the Group II Senior Certificates, on a pro rata basis. (d) Notwithstanding the foregoing clause clauses (b) and (c), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date Date. (e) Notwithstanding the foregoing clauses (b) and (ii) c), any Special Hazard Loss allocable to the Group I Senior Certificates or Group II Senior Certificates pursuant to clauses (b) or (c) above after the Group I Cross-Over Date or Group II Cross-Over Date, respectively, shall be allocated to such Senior Certificates and the most subordinate Class or Classes of Group II Subordinate Certificates and Group I Subordinate Certificates, respectively, on a pro rata basis, based on the Current Principal Amount of such Certificates, in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the thereof until reduced to zero, with any such loss allocable to such Subordinate Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans allocated in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation order described in clause (ib) and or (ii)c) above, the "Loss Allocation Limitation")as applicable. (df) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (eg) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fh) On each Distribution Date, the Securities Administrator shall determine the Group I and notify the Paying Agent of the Senior Mezzanine Group II Subordinate Certificate Writedown Amount and the Subordinate Group I Senior Mezzanine Certificate Writedown Amount. Any such Senior Mezzanine Subordinate Certificate Writedown Amount or Subordinate Certificate Group I Senior Mezzanine Certificates Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Group I Cross-Over Date, the Current Principal Amounts of the Group I Senior Mezzanine Certificates and Group I Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Group II Cross-Over Date, the Senior Mezzanine Certificates and Current Principal Amounts of the Group II Subordinate Certificates, in the reverse order of their numerical Class designations, (iii) from and after the Group I Cross-Over Date, the Group I Senior Certificates which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date and (other than iv) from and after the Interest Only Certificates)Group II Cross-Over Date, the Group II Senior Certificates which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (gi) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III II Mortgage Loans occurring on or prior to the Group I Cross-Over Date or Group II Cross-Over Date, respectively, will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III II Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Group I Senior Mezzanine Mezzanine, Group I Subordinate Certificates and Group II Subordinate Certificates in right of distribution, such Realized Losses on the Group I Mortgage Loans and Group II Mortgage Loans will be borne first by the Group I Senior Mezzanine Certificates Group I Subordinate Certificates and Group II Subordinate Certificates, respectively, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Group I Cross- Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereofSenior Certificates. Following the Group II Cross-Over Date, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofSenior Certificates. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the Servicer. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: firstFIRST, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; secondSECOND, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; thirdTHIRD, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourthFOURTH, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifthFIFTH, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixthSIXTH, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventhSEVENTH, if such loss is on a Group I, Group II, Group III or Group IV Mortgage Loan, to the Class M Senior Certificates of the related Certificate Group, until the Current Principal Amount Amounts thereof has have been reduced to zero; and eighthEIGHTH, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates Certificates, in accordance with priorities set forth in clause (other than the Interest Only Certificates)b) above, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates Certificates, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Cross- Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Senior Certificates and in the Class A-1B Certificates, to Component 1X manner described in the first sentence of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, this clause (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofg). (h) In addition, in the event that the Paying Agent Master Servicer receives any Subsequent Recoveries on from the Mortgage Loans from a Servicer, the Paying Agent Master Servicer shall deposit such funds into the Distribution Master Servicer Collection Account pursuant to Section 4.01(c)(ii)4.02. If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to this Section 6.02. The amount of any remaining Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate Interest current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, All Realized Losses on the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect Loans allocated to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Accrued Certificate Interest on the Class B-6 Certificates until X/N Interest as provided in Section 1.03 (after the Current Principal Amount thereof has been reduced to zeroallocation thereto of any Prepayment Interest Shortfalls or Relief Act Interest Shortfalls as provided in Section 1.03); second, to the Class B-5 Certificates Overcollateralization Amount, until the Current Principal Overcollateralization Amount thereof has been reduced to zero; third, to the Class B-4 Certificates B-7 Certificates, until the Current Certificate Principal Amount Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates B-6 Certificates, until the Current Certificate Principal Amount Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates B-5 Certificates, until the Current Certificate Principal Amount Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates B-4 Certificates, until the Current Certificate Principal Amount Balance thereof has been reduced to zero; seventh, to the Class M Certificates B-3 Certificates, until the Current Certificate Principal Amount Balance thereof has been reduced to zero; eighth, to the Class B-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class B-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; thirteenth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourteenth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; and eighthfifteenth, to each the Class of M-1 Certificates, until the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group thereof has been reduced to zero, the principal portion of . All Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the other actual distributions to be made on such date as provided above. All references above to the Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Class A Certificate, a Mezzanine Certificate or a Class B Certificate on the Mortgage Loans any Distribution Date shall be accomplished made by reducing the Current Certificate Principal Amount of Balance thereof by the related Certificates on the related Distribution Dateamount so allocated. (ei) The REMIC 1 Marker Allocation Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Trustee on the each Distribution Date to the following REMIC 1 Regular Interests in the month following specified percentages, as follows: first, to Uncertificated Accrued Interest payable to REMIC 1 Regular Interest LT1AA and REMIC 1 Regular Interest LT1ZZ up to an aggregate amount equal to the month in which such loss was incurred andREMIC 1 Interest Loss Allocation Amount, in 98% and 2%, respectively; second, to the case Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA and REMIC 1 Regular Interest LT1ZZ up to an aggregate amount equal to the principal portion thereofREMIC 1 Principal Loss Allocation Amount, after giving effect 98% and 2%, respectively; third, to distributions made on such Distribution Datethe Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1B7 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B7 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1B6 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B6 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1B5 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B5 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1B4 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B4 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1B3 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B3 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1B2 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B2 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1B1 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1B1 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M6 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M6 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M5 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M5 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M4 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M4 has been reduced to zero; thirteenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M3 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M3 has been reduced to zero; fourteenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M2 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M2 has been reduced to zero; and fifteenth, to the Uncertificated Principal Balances of REMIC 1 Regular Interest LT1AA, REMIC 1 Regular Interest LT1M1 and REMIC 1 Regular Interest LT1ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 1 Regular Interest LT1M1 has been reduced to zero. (fii) On The REMIC 1 Sub WAC Allocation Percentage of all Realized Losses shall be applied after all distributions have been made on each Distribution DateDate first, so as to keep the Uncertificated Principal Balance of each REMIC 1 Regular Interest ending with the designation “GRP” equal to 0.01% of the aggregate Principal Balance of the Mortgage Loans in the related Loan Group; second, to each REMIC 1 Regular Interest ending with the designation “SUB,” so that the Uncertificated Principal Balance of each such REMIC 1 Regular Interest is equal to 0.01% of the excess of (x) the aggregate Principal Balance of the Mortgage Loans in the related Loan Group over (y) the current Certificate Principal Balance of the Class A Certificate in the related Loan Group (except that if any such excess is a larger number than in the preceding distribution period, the Securities Administrator least amount of Realized Losses shall determine be applied to such REMIC 1 Regular Interests such that the REMIC 1 Subordinated Balance Ratio is maintained); and notify third, any remaining Realized Losses shall be allocated to REMIC 1 Regular Interest LT1XX. (c) Special Hazard Losses will be allocated as described above, except that if the Paying Agent aggregate amount of such losses, as of any date of determination, exceeds the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount greatest of (i) with respect to 1.0% of the Subordinate Certificate Writedown Amount, if prior to Principal Balance of the CrossMortgage Loans as of the Cut-Over off Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to two times the Senior Mezzanine Certificate Writedown Amount, if prior to amount of the Cross-Over Date, Principal Balance of the Senior Mezzanine Certificates largest Mortgage Loan as of the date of determination and (iii) from and after an amount equal to the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on current Principal Balances of the Mortgage Loans in the largest zip-code concentration in the State of California as of the date of determination, such excess losses will be allocated among all the outstanding Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to including the Class A-1A Certificates B-2 Interest, the Class B-3 Interest, the Class B-4 Interest and the Class A-1B CertificatesX/N Interest, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereofpro rata, (B) the interest portion of Realized Losses based on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificatestheir respective Certificate Principal Balances or Notional Amount, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofas applicable. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On each Distribution Date on or prior to each Determination Datea Section 7.01(d) Purchase Event relating to the Pooling REMIC 1 Regular Interests, the Master Servicer aggregate Class Principal Amount of the Group I Certificates shall determine be reduced by the amount of any Pool 1-2 Applied Loss Amount for such date, in the following order of priority: (i) to the Class I-M7 Certificates, until the Class Principal Amount of such Class has been reduced to zero; (ii) to the Class I-M6 Certificates, until the Class Principal Amount of such Class has been reduced to zero; (iii) to the Class I-M5 Certificates, until the Class Principal Amount of such Class has been reduced to zero; (iv) to the Class I-M4 Certificates, until the Class Principal Amount of such Class has been reduced to zero; (v) to the Class I-M3 Certificates, until the Class Principal Amount of such Class has been reduced to zero (vi) to the Class I-M2 Certificates, until the Class Principal Amount of such Class has been reduced to zero; (vii) to the Class 1-M1 Certificates, until the Class Principal Amount of such Class has been reduced to zero; (viii) to the Class 1-M1 Certificates, until the Class Principal Amount of such Class has been reduced to zero; and (ix) to the Group 1 Senior Certificates (other than the Class 1-AIO Certificates), pro rata, (in the case of Realized Loss Losses attributable to Mortgage Loans in Pool 1) and to the Group 2 Senior Certificates (in the case of Realized Losses attributable to Mortgage Loans in Pool 2); provided, that additional losses with respect to the Mortgage Loans in Pool 1 that would otherwise reduce the Class Principal Amounts of each the Class 1-A1 Certificates will instead be allocated to the Class 1-A2 Certificates, until the Class 1-A2 Certificates are reduced to zero, and then such losses will be allocated to the Class 1-A1 Certificates until the Class Principal Amount of such Class has been reduced to zero; and in the case of additional losses on the Mortgage Loan that occurred during Loans in Pool 2, losses otherwise allocable to the immediately preceding calendar monthClass 2-A1 Certificates will instead be allocated to the Class 2-A2 Certificates, until the Class 2-A2 Certificates are reduced to zero, and then such losses will be allocated to the Class 2-A1 Certificates until the Class Principal Amount of such Class has been reduced to zero. (b) With respect On each Distribution Date on or prior to any Certificates (other than a Section 7.01(d) Purchase Event relating to the Interest Only Certificates) on any Distribution DatePooling REMIC 2 Regular Interests, the principal portion Class Principal Amounts of each Realized Loss on a Mortgage Loan the Group II Certificates shall be allocated as follows: first, reduced in the following order of priority: (i) to the Class B-6 Certificates II-M7 Certificates, until the Current Class Principal Amount thereof has been reduced to zero; (ii) to the Class II-M6 Certificates, until the Class Principal Amount thereof has been reduced to zero; (iii) to the Class II-M5 Certificates, until the Class Principal Amount thereof has been reduced to zero; (iv) to the Class II-M4 Certificates, until the Class Principal Amount thereof has been reduced to zero; (v) to the Class II-M3 Certificates, until the Class Principal Amount thereof has been reduced to zero; (vi) to the Class II-M2 Certificates, until the Class Principal Amount thereof has been reduced to zero; (vii) to the Class II-M1 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, and (viii) to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Group II Senior Certificates (other than the Interest Only Class 3-AIO1, Class 3-AIO2, Class 3-A3, Class 3-A4 and Class 3-A5 Certificates) in the related Certificate Group), pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b)rata; provided, no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date that additional losses with respect to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in Pool 3 that would otherwise reduce the related Loan Group on such date, to an amount less than the aggregate Scheduled Class Principal Balance of all Amount of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans Class 3-A1 Certificates will instead be allocated to a the Class of 3-A2 Certificates (other than until the Interest Only Certificates) shall be allocated among the Class 3-A2 Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been are reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) and then such losses will be allocated to the Senior Certificate of Class 3-A1 Certificates until the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Class Principal Amount of the related Certificates on the related Distribution Date. (e) such Class has been reduced to zero. Any Realized Losses on the Mortgage Loans allocated to an Exchange Class shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously proportionately allocated to the Senior Mezzanine Certificates or to that related Exchangeble Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided InterestClasses.

Allocation of Losses. (a) On or prior Realized Losses on the Group 1 Mortgage Loans with respect to each Determination Dateany Distribution Date shall be allocated by the Trust Administrator to the Classes of Group 1 and Group D-B Certificates as follows: (i) except as provided in the parenthetical below, the Master Servicer shall determine the amount of any Realized Loss on a Group 1 Mortgage Loan, shall be allocated first, to the Group D-B Certificates in respect decreasing order of their alphanumerical Class designations (beginning with the Class D-B-7 Certificates), until the respective Class Principal Balance of each Mortgage Loan such Class is reduced to zero, and second, to the Group 1 Senior Certificates, pro rata, on the basis of their respective Class Principal Balances; provided, however, that occurred during (A) Realized Losses which would otherwise be allocated to the immediately preceding calendar monthClass 1-A-2 and Class 1-A-4 Certificates, will instead be allocated to the Class 1-A-6 Certificates, until the Class Principal Balance of the Class 1-A-6 Certificates is reduced to zero and (B) Realized Losses which would otherwise be allocated to the Class 1-A-2 Certificates, will instead be allocated to the Class 1-A-4 Certificates, until the Class Principal Balance of the Class 1-A-4 Certificates is reduced to zero. (b) With On each Distribution Date, if the sum of the aggregate Class Principal Balance of all Group 1 and Group D-B Certificates exceeds the aggregate Stated Principal Balance of the Group 1 Mortgage Loans (after giving effect to distributions of principal and the allocation of all losses to such Certificates on such Distribution Date), such excess will be deemed a principal loss and shall be allocated by the Trust Administrator to the most junior Class of Group D-B Certificates then outstanding, in reduction of its Class Principal Balance. (c) The Group 2, Group 3, Group 4, Group 5, Group 6, Group 7, Group 8, Group 9, Group 10 and Group D-B Certificates. Realized Losses on the Group 2, Group 3, Group 4, Group 5, Group 6, Group 7, Group 8, Group 9 and Group 10 Mortgage Loans with respect to any Distribution Date shall be allocated by the Trust Administrator to the Classes of Group 2, Group 3, Group 4, Group 5, Group 6, Group 7, Group 8, Group 9, Group 10 and Group B Certificates as follows: (other than i) except as provided in the Interest Only Certificates) on parenthetical below, any Distribution Date, the principal portion of each Realized Loss on a Group 2, Group 3, Group 4, Group 5, Group 6, Group 7, Group 8, Group 9 or Group 10 Mortgage Loan shall be allocated as follows: first, to the Group B Certificates in decreasing order of their alphanumerical Class B-6 Certificates designations (beginning with the Class B-7 Certificates), until the Current respective Class Principal Amount thereof has been Balance of each such Class is reduced to zero; , and second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Class D-P and Interest Only Certificates) in the related Certificate to such Loan Group, pro rata based upon rata, on the basis of their respective Current Class Principal Amounts. Balances (cexcept if the loss is recognized with respect to a Class P Mortgage Loan, in which case the applicable Class P Fraction of such loss will first be allocated to the Class D-P Certificates and the remainder of the loss will be allocated as described above); provided, however, that (A) Notwithstanding Realized Losses which would otherwise be allocated to the foregoing clause Class 2-A-1 and Class 2-A-3 Certificates, will instead be allocated to the Class 2-A-4 Certificates, until the Class Principal Balance of the Class 2-A-4 Certificates is reduced to zero, (b), no such allocation of any B) Realized Loss on the Mortgage Loans shall Losses which would otherwise be made on a Distribution Date allocated to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates 3-A-6 and Class 3-A-8 Certificates, up to the extent that such allocation would result in the reduction an amount equal to 28.70% of the aggregate Current Class Principal Amounts Balance of all the Class 3-A-3 Certificates as of for such Distribution Date, after giving effect and up to all distributions and prior allocations a cumulative maximum of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date $3,094,000 and (ii) Senior Certificates in a Certificate Group the Class 3-A-13 and Class 3-A-15 Certificates, up to the extent that such allocation would result in the reduction an amount equal to 71.30% of the aggregate Current Class Principal Amounts Balance of all the Class 3-A-3 Certificates in such Certificate Group as of for such Distribution Date, after giving effect and up to all distributions and prior allocations a cumulative maximum of Realized Losses on $7,687,728, will instead be allocated to the Mortgage Loans in Class 3-A-3 Certificates, until the related Loan Group on such date, to an amount less than the aggregate Scheduled Class Principal Balance of all the Class 3-A-3 Certificates is reduced to zero, (C) Realized Losses which would otherwise be allocated to the Class 4-A-5, Class 4-A-8, Class 4-A-10, Class 4-A-13, Class 4-A-16 and Class 4-A-18 Certificates, will instead be allocated to the Class 4-A-2 Certificates, until the Class Principal Balance of the Mortgage Loans in such Loan Group as Class 4-A-2 Certificates is reduced to zero, (D) Realized Losses which would otherwise be allocated to the Class 4-A-5 Certificates, will instead be allocated to the Class 4-A-13 Certificates, until the Class Principal Balance of the first day Class 4-A-13 Certificates is reduced to zero, (E) Realized Losses which would otherwise be allocated to the Class 4-A-8 Certificates, will instead be allocated to the Class 4-A-16 Certificates, until the Class Principal Balance of the month Class 4-A-16 Certificates is reduced to zero, (F) Realized Losses which would otherwise be allocated to the Class 4-A-10 Certificates, will instead be allocated to the Class 4-A-18 Certificates, until the Class Principal Balance of such Distribution Date the Class 4-A-18 Certificates is reduced to zero, (each such limitation in clause G) Realized Losses which would otherwise be allocated to the Class 5-A-2 and Class 5-A-3 Certificates, will instead be allocated to the Class 5-A-1 Certificates, until the Class Principal Balance of the Class 5-A-1 Certificates is reduced to zero, (iH) Realized Losses which would otherwise be allocated to the Class 6-A-2 and Class 6-A-3 Certificates, will instead be allocated to the Class 6-A-1 Certificates, until the Class Principal Balance of the Class 6-A-1 Certificates is reduced to zero, (I) Realized Losses which would otherwise be allocated to the Class 7-A-2 Certificates, will instead be allocated to the Class 7-A-1 Certificates, until the Class Principal Balance of the Class 7-A-1 Certificates is reduced to zero, (J) Realized Losses which would otherwise be allocated to the Class 8-A-2 Certificates, will instead be allocated to the Class 8-A-1 Certificates, until the Class Principal Balance of the Class 8-A-1 Certificates is reduced to zero, (K) Realized Losses which would otherwise be allocated to the Class 9-A-2 Certificates, will instead be allocated to the Class 9-A-1 Certificates, until the Class Principal Balance of the Class 9-A-1 Certificates is reduced to zero and (ii)L) Realized Losses which would otherwise be allocated to the Class 10-A-2 Certificates, will instead be allocated to the "Loss Allocation Limitation")Class 10-A-1 Certificates, until the Class Principal Balance of the Class 10-A-1 Certificates is reduced to zero. (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, if the Securities Administrator shall determine and notify the Paying Agent sum of the Senior Mezzanine Certificate Writedown Amount aggregate Class Principal Balance of all Group 2, Group 3, Group 4, Group 5, Group 6, Group 7, Group 8, Group 9, Group 10, Class D-P and Group B Certificates exceeds the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in aggregate Stated Principal Balance of the Current Principal Amount of Group 2, Group 3, Group 4, Group 5, Group 6, Group 7, Group 8, Group 9 and Group 10 Mortgage Loans (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made of principal and the allocation of all losses to such Certificates on such Distribution Date), such excess will be deemed a principal loss and shall be allocated by the Trust Administrator to the most junior Class of Group B Certificates then outstanding, in reduction of its Class Principal Balance. (ge) Any Net Interest Shortfalls on allocation by the Mortgage Loans will be allocated among the Classes Trust Administrator of Certificates in proportion Realized Losses to the respective amounts of Accrued a Certificate Interest that would have been allocated thereto or any reduction in the absence Certificate Balance of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect a Certificate pursuant to this Section 4.02 shall be accomplished by reducing its Certificate Balance, immediately following the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, distributions made on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interestthe definition of “Certificate Balance.”

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: firstFIRST, to the Class B-8 Certificates until the Current Principal Amount thereof has been reduced to zero; SECOND, to the Class B-7 Certificates until the Current Principal Amount thereof has been reduced to zero; THIRD, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; secondFOURTH, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; thirdFIFTH, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourthSIXTH, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifthSEVENTH, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixthEIGHTH, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventhNINTH, if such loss is on (w) a Group I Mortgage Loan, to the Class M I-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; (x) a Group II Mortgage Loan, to the Class II-A-1 Certificates and Class II-A-2 Certificates, on a pro rata basis, until the Current Principal Amounts thereof have been reduced to zero; (y) a Group III Mortgage Loan, to the Class III-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; or (z) a Group IV Mortgage Loan, to the Class IV-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and eighthTENTH, to each Class of the Senior Certificates (other than the Interest Only Certificates and the Class R Certificates) in the related Certificate Group), on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), in accordance with priorities set forth in clause (b) above, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates Certificates, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Cross- Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Senior Certificates and in the Class A-1B Certificates, to Component 1X manner described in the first sentence of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, this clause (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofg). (h) In addition, in the event that the Paying Agent Master Servicer receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent Master Servicer shall deposit such funds into the Distribution Master Servicer Collection Account pursuant to Section 4.01(c)(ii)4.02. If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to this Section 6.02. The amount of any remaining Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate Interest current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: firstFIRST, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; secondSECOND, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; thirdTHIRD, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourthFOURTH, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifthFIFTH, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixthSIXTH, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventhSEVENTH, if such loss is on (y) a Group II, Group III or Group IV Mortgage Loan, to the Senior Certificates of the related Certificate Group, until the Current Principal Amounts thereof have been reduced to zero and (z) a Group I Mortgage Loan, to the Group I Senior Certificates, on a pro rata basis, until the Current Principal Amounts thereof have been reduced to zero, provided, that the principal portion of each Realized Loss allocable to the Class M I-A-2 Certificates will first be allocated to the Class I-A-3 Certificates until the Current Principal Amount thereof of the Class I-A-3 Certificates has been reduced to zero; and eighthEIGHTH, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates Certificates, in accordance with priorities set forth in clause (other than the Interest Only Certificates)b) above, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates Certificates, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Cross- Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Senior Certificates and in the Class A-1B Certificates, to Component 1X manner described in the first sentence of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, this clause (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofg). (h) In addition, in the event that the Paying Agent Master Servicer receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent Master Servicer shall deposit such funds into the Distribution Master Servicer Collection Account pursuant to Section 4.01(c)(ii)4.02. If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to this Section 6.02. The amount of any remaining Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate Interest current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (bi) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date prior to the related Group 1 Cross-Over Date, the principal portion of each Realized Loss on a Group 1 Mortgage Loan shall be allocated as follows: first, to the Class I-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class I-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class I-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class I-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class I-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; and sixth, to the Class I-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero. (ii) With respect to any Certificates on or after the Group 1 Cross-Over Date, (i) the principal portion of each Realized Loss on a Group 1 Mortgage Loan shall be allocated to the Group 1 Senior Certificates (other than the Class I-A-IO Certificates), until the Current Principal Amounts thereof have been reduced to zero. (c) With respect to any Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group 2 Mortgage Loan shall be allocated as follows: first, to the Class II-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class II-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class II-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class II-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class II-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class II-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Group 2 Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation")Certificates. (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (bi) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Group I Mortgage Loan shall be allocated as follows: first, to the Class I-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class I-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class I-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class I-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class I-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class I-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on a Group I-1, Group I-2 or Group I-3 Mortgage Loan, to the Class I-A-1, Class I-A-2 and Class I-A-3 Certificates, respectively. eighth, to the Group I Senior Certificates (other than the Group I Interest Only Certificates), on a PRO RATA basis. (i) With respect to any Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan shall be allocated as follows: first, to the Class II-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class II-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class II-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class II-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class II-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class II-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Group II Senior Certificates (other than the Group II Interest Only Certificates) in the related Certificate Group), pro rata based upon their respective Current Principal Amountson a PRO RATA basis. (cd) Notwithstanding the foregoing clause clauses (b) and (c), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (de) The principal portion Notwithstanding the foregoing clauses (b) and (c), any Special Hazard Loss allocable to the Group I-1 Senior Certificates or Group II Senior Certificates pursuant to clauses (b) or (c) above after the Group I Cross-Over Date or Group II Cross-Over Date, respectively, shall be allocated to such Senior Certificates and the most subordinate Class or Classes of Group II Subordinate Certificates and Group I Subordinate Certificates, respectively, on a pro rata basis, based on the Current Principal Amount of such Certificates, in reduction of the Current Principal Amounts thereof until reduced to zero, with any such loss allocable to such Subordinate Certificates allocated in the order described in clause (b) or (c) above, as applicable. (f) Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (eg) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fh) On each Distribution Date, the Securities Administrator Trustee shall determine the Group I and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Group II Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Group I Cross-Over Date, the Current Principal Amounts of the Group I Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Group II Cross-Over Date, the Senior Mezzanine Certificates and Current Principal Amounts of the Group II Subordinate Certificates, in the reverse order of their numerical Class designations, (iii) from and after the Group I Cross-Over Date, the Group I Senior Certificates (other than the Group I Interest Only Certificates)) which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date and (iv) from and after the Group II Cross-Over Date, the Group II Senior Certificates (other than the Group II Interest Only Certificates) which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (gi) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III II Mortgage Loans occurring on or prior to the Group I Cross-Over Date or Group II Cross-Over Date, respectively, will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III II Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Group I Subordinate Certificates and Group II Subordinate Certificates in right of distribution, such Realized Losses on the Group I Mortgage Loans and Group II Mortgage Loans will be borne first by the Group I Subordinate Certificates and Group II Subordinate Certificates, respectively, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Group I Cross- Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereofSenior Certificates. Following the Group II Cross-Over Date, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofSenior Certificates. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on a Group 1 or Group 2 Mortgage Loan, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; Group 1 and Group 2 Senior Certificates, respectively, on a PRO RATA basis. eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group), pro rata based upon their respective Current Principal Amountson a PRO RATA basis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The Any Realized Losses allocated to the Certificates on a PRO RATA basis shall be allocated on the basis of the Current Principal Amounts thereof, in the case of the principal portion of any a Realized Loss, and on the basis of the Accrued Certificate Interest thereon, in the case of an interest portion of a Realized Loss. Any Realized Losses on the Mortgage Loans in respect of principal allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) on a PRO RATA basis, in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, Any allocation of the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. Any allocation of the interest portion of Realized Losses shall be accomplished by reducing the amount of Accrued Certificate Interest payable to that Class of Certificates. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator Trustee shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), ) which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans in any Loan Group will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M A-5 Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, if such loss is on a Group 1, Group 2, Group 3 or Group 4 Mortgage Loan, to each Class of the Group 1, Group 2, Group 3 or Group 4 Senior Certificates, respectively; and ninth, to the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and or the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Senior Mezzanine Certificates and Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, designations and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans in any Loan Group will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on (v) a Group I Mortgage Loan, to the Class M I-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; (w) a Group II Mortgage Loan, to the Class II-A-1 Certificates, until the Current Principal Amount thereof has been reduced to zero; (x) a Group III Mortgage Loan, to the Class III-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; (y) a Group IV Mortgage Loan, to the Class IV-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero or (z) a Group V Mortgage Loan, to the Class V-A-1 Certificates and Class V-A-2 Certificates until the Current Principal Amount thereof has been reduced to zero; provided, however, any such Realized Losses otherwise allocable to the Class V-A-1 Certificates will be allocated to the Class V-A-2 Certificates, until the Current Principal Amount of the Class V-A-2 Certificates has been reduced to zero, and then to the Class V-A-1 Certificates; and eighth, to each Class of the Senior Certificates (other than the Interest Only Class R Certificates) in the related Certificate Group), on a pro rata based upon their respective basis; provided, however, any such Realized Losses otherwise allocable to the Class V-A-1 Certificates will be allocated to the Class V-A-2 Certificates, until the Current Principal AmountsAmount of the Class V-A-2 Certificates has been reduced to zero, and then to the Class V-A-1 Certificates. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts Amount of all the Certificates (other than the Class R Certificates) as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "“Loss Allocation Limitation"”). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates Certificates, in accordance with priorities set forth in clause (other than the Interest Only Certificates)b) above, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates (other than the Residual Certificates) in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates Certificates, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Senior Certificates and in the Class A-1B Certificates, to Component 1X manner described in the first sentence of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, this clause (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofg). (h) In addition, in the event that the Paying Agent Master Servicer receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent Master Servicer shall deposit such funds into the Distribution Master Servicer Collection Account pursuant to Section 4.01(c)(ii)4.02. If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to this Section 6.02. The amount of any remaining Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate Interest current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related each of Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such 1 and Loan Group as of the first day of the 2 incurred during a calendar month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among by the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated Trust Administrator to the Senior Mezzanine Classes of Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the next calendar month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date.as follows: (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect any Realized Loss, other than an Excess Loss, on the Group 1 Mortgage Loans shall be allocated first, to the Subordinate Certificate Writedown Amount, if prior to the CrossClass 1-Over Date, the Subordinate B Certificates, in the reverse decreasing order of their numerical alphanumerical Class designations, designations (ii) beginning with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the CrossClass 1-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only B-6 Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to until the respective amounts Class Principal Balance of Accrued Certificate Interest that would have been allocated thereto in the absence of each such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect Class is reduced to zero, and second, to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any 1 Senior Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectivelypro rata, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order basis of their numerical respective Class designationsPrincipal Balances, and then by until the Senior Mezzanine Certificates. Following respective Class Principal Balance of each such Class is reduced to zero; provided, however, that the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I 1 Mortgage Loans will that would otherwise be allocated on a pro rata basis to the Class A-1A 1-A-2-1 and Class 1-A-2-2 Certificates in the aggregate will instead be allocated first, to the Class 1-A-2-2 Certificates, until its Class Principal Balance has been reduced to zero and second, to the Class 1-A-2-1 Certificates, until its Class Principal Balance has been reduced to zero and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II 1 Mortgage Loans that would otherwise be allocated to the Class 1-A-3-1 and Class 1-A-3-2 Certificates in the aggregate will instead be allocated first, to the Class 1-A-3-2 Certificates, until its Class Principal Balance has been reduced to zero and second, to the Class 1-A-3-1 Certificates, until its Class Principal Balance has been reduced to zero; (ii) Excess Losses in respect of principal for Group 1 Mortgage Loans will be allocated on a among all Group 1 Certificates, pro rata basis based on their respective Class Principal Balances; (iii) any Realized Loss, other than an Excess Loss, on the Group 2 Mortgage Loans shall be allocated first, to the Class 2-B Certificates, in decreasing order of their alphanumerical Class designations (beginning with the Class 2-B-6 Certificates), until the respective Class Principal Balance of each such Class is reduced to zero, second, to the Class 2-A-2 Certificates, until its Class Principal Balance has been reduced to Component 2X of zero and third, to the Class X 2-A-1 Certificates, until its Class Principal Balance has been reduced to zero; and (iv) Excess Losses in respect of principal for Group 2 Mortgage Loans will be allocated among all Group 2 Certificates, pro rata based on their respective Class Principal Balances. (b) On each Distribution Date, if the aggregate Class Principal Balance of all Group 1 Certificates exceeds the Aggregate Loan Group Balance of Loan Group 1 (after giving effect to distributions of principal and the allocation of all losses to Component 3X such Certificates on such Distribution Date), such excess will be deemed a principal loss and will be allocated by the Trust Administrator to the most junior Class of Class 1-B Certificates then outstanding. On each Distribution Date, if the aggregate Class Principal Balance of all Group 2 Certificates exceeds the Aggregate Loan Group Balance of Loan Group 2 (after giving effect to distributions of principal and the allocation of all losses to such Certificates on such Distribution Date), such excess will be deemed a principal loss and will be allocated by the Trust Administrator to the most junior Class of Class 2-B Certificates then outstanding. (c) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class X Principal Balance of a Class of Certificates pursuant to Section 4.02(A)(b) shall be allocated by the extent Trust Administrator among the Certificates of such Class in proportion to their respective Certificate Balances. (d) Any allocation by the Group II Allocation Fraction Trust Administrator of Realized Losses to a Certificate or any reduction in the Certificate Balance of a Certificate pursuant to Section 4.02(A)(b) shall be accomplished by reducing the Certificate Balance thereof, and immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Balance.” (Ce) the interest portion of All Realized Losses on the Group III 1 and Group 2 Mortgage Loans will shall be allocated on a pro rata basis each Distribution Date to the Class A-3 Certificates REMIC I Regular Interests and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In additionREMIC II Regular Interests, respectively, as provided in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount definitions of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which REMIC I Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of and REMIC II Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided InterestLosses.

Allocation of Losses. (a) On or prior to each Determination DateThe Group 1, Group 2, Group 3, Group 4, Group 5 and Group C-B Certificates. Realized Losses on the Master Servicer shall determine the amount of any Realized Loss in respect of each Group 1, Group 2, Group 3, Group 4 and Group 5 Mortgage Loan that occurred during the immediately preceding calendar month. (b) With Loans with respect to any Distribution Date shall be allocated by the Trust Administrator to the Classes of Group 1, Group 2, Group 3, Group 4, Group 5 and Group C-B Certificates as follows: (other than i) except as provided in the Interest Only Certificates) on parenthetical below, any Distribution Date, the principal portion of each Realized Loss on a Group 1, Group 2, Group 3, Group 4 or Group 5 Mortgage Loan Loan, other than an Excess Loss, shall be allocated as follows: first, to the Group C-B Certificates in decreasing order of their alphanumerical Class designations (beginning with the Class C-B-6 Certificates Certificates), until the Current respective Class Principal Amount thereof has been Balance of each such Class is reduced to zero; , and second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Notional Amount Certificates) in the related Certificate to such Loan Group, pro rata based upon rata, on the basis of their respective Current Class Principal AmountsBalances; provided, however, that (A) Realized Losses which would otherwise be allocated to the Class 1-A-1 Certificates, will instead be allocated to the Class 1-A-2 Certificates, until the Class Principal Balance of the Class 1-A-2 Certificates is reduced to zero, (B) Realized Losses which would otherwise be allocated to the Class 1-A-3 Certificates, will instead be allocated to the Class 1-A-6 Certificates, until the Class Principal Balance of the Class 1-A-6 Certificates is reduced to zero, (C) Realized Losses which would otherwise be allocated to the Class 2-A-2 Certificates, will instead be allocated to the Class 2-A-5 Certificates, until the Class Principal Balance of the Class 2-A-5 Certificates is reduced to zero, (D) Realized Losses which would otherwise be allocated to the Class 3-A-1 Certificates, will instead be allocated to the Class 3-A-3 Certificates, until the Class Principal Balance of the Class 3-A-3 Certificates is reduced to zero, (E) Realized Losses which would otherwise be allocated to the Class 4-A-2 Certificates, will instead be allocated to the Class 4-A-3 Certificates, until the Class Principal Balance of the Class 4-A-3 Certificates is reduced to zero and (F) Realized Losses which would otherwise be allocated to the Class 5-A-2 Certificates, will instead be allocated to the Class 5-A-3 Certificates, until the Class Principal Balance of the Class 5-A-3 Certificates is reduced to zero. (cii) Notwithstanding Excess Losses for the foregoing clause (b), no such allocation of any Realized Loss on the Group C-B Mortgage Loans shall will be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or allocated among all Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Notional Amount Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only and Group C-B Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon on their respective Current Class Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution DateBalances. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fb) On each Distribution Date, if the Securities Administrator shall determine aggregate Class Principal Balance of all Group 1, Group 2, Group 3, Group 4 and notify Group 5 and Class C-B Certificates exceeds the Paying Agent aggregate Stated Principal Balance of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of Mortgage Loans (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made of principal and the allocation of all losses to such Certificates on such Distribution Date), such excess will be deemed a principal loss and shall be allocated by the Trust Administrator to the most junior Class of Group C-B Certificates then outstanding, in reduction of its Class Principal Balance. (gc) Any Net Interest Shortfalls on allocation by the Mortgage Loans will be allocated among the Classes Trust Administrator of Certificates in proportion Realized Losses to the respective amounts of Accrued a Certificate Interest that would have been allocated thereto or any reduction in the absence Certificate Balance of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect a Certificate pursuant to this Section 4.02 shall be accomplished by reducing its Certificate Balance, immediately following the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, distributions made on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interestthe definition of “Certificate Balance.”

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Pool I Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the Servicer. (b) With respect to any Group I Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Pool I Mortgage Loan shall be allocated as follows: first, to the Class I-B-6 Certificates until the Current Class Principal Amount thereof has been reduced to zero; second, to the Class I-B-5 Certificates until the Current Class Principal Amount thereof has been reduced to zero; third, to the Class I-B-4 Certificates until the Current Class Principal Amount thereof has been reduced to zero; fourth, to the Class I-B-3 Certificates until the Current Class Principal Amount thereof has been reduced to zero; fifth, to the Class I-B-2 Certificates until the Current Class Principal Amount thereof has been reduced to zero; sixth, to the Class I-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighthseventh, if such loss is on (a) a Pool I Mortgage Loan in Loan Group I-1, to each the Class I-1A-1 Certificates and Class I-1A-2 Certificates until the Class Principal Amount thereof has been reduced to zero; provided, however, any such Realized Losses otherwise allocable to the Class I-1A-1 Certificates will be first allocated to the Class I-1A-2 Certificates, until the Class Principal Amount of the Senior Class I-1A-2 Certificates has been reduced to zero, and then to the Class I-1A-1 Certificates; (other than b) a Pool I Mortgage Loan in Loan Group I-2, to the Interest Only Class I-2A-1 Certificates and Class I-2A-2 Certificates until the Class Principal Amount thereof has been reduced to zero; provided, however, any such Realized Losses otherwise allocable to the Class I-2A-1 Certificates will be first allocated to the Class I-2A-2 Certificates, until the Class Principal Amount of the Class I-2A-2 Certificates has been reduced to zero, and then to the Class I-2A-1 Certificates; and (c) a 217412 HomeBanc 2007-1 Pooling and Servicing Agreement Pool I Mortgage Loan in Loan Group I-3, to the related Certificate GroupClass I-3A-1 Certificates and Class I-3A-2 Certificates until the Class Principal Amount thereof has been reduced to zero; provided, pro rata based upon their respective Current however, any such Realized Losses otherwise allocable to the Class I-3A-1 Certificates will be first allocated to the Class I-3A-2 Certificates, until the Class Principal AmountsAmount of the Class I-3A-2 Certificates has been reduced to zero, and then to the Class I-3A-1 Certificates. (c) Once the Class Principal Amounts of the Group I Senior Certificates of a Certificate Group have been reduced to zero, the principal portion of Realized Losses on the Pool I Mortgage Loans in the related Loan Group (if any) shall be allocated on a pro rata basis to the remaining Group I Senior Certificates of the other Certificate Groups. (d) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Class Principal Amounts Amount of all the Certificates (other than the Class R Certificates) as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Pool I Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Pool I Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "“Group I Loss Allocation Limitation"”). (de) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Class Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Class Principal Amount of the related Certificates on the related Distribution Date. (ef) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fg) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Group I Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Group I Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Class Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Group I Cross-Over Date, the Class Principal Amounts of the Group I Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to from and after the Senior Mezzanine Certificate Writedown Amount, if prior to the Group I Cross-Over Date, the Group I Senior Mezzanine Certificates and Certificates, in accordance with priorities set forth in clause (iiib) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates)above, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (gh) Any Group I Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Group I Certificates (other than the Residual Certificates) in proportion to the respective amounts of Group I Accrued Certificate Interest that would have been allocated thereto in the absence of such Group I Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group Pool I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Group I Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Group I Subordinate Certificates in right of distribution, such Realized Losses on the Pool I Mortgage 217412 HomeBanc 2007-1 Pooling and Servicing Agreement Loans will be borne first by the Group I Subordinate Certificates Certificates, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Group I Cross-Over Date, (A) the interest portion of Realized Losses on the Group Pool I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereofSenior Certificates in the manner described in the first sentence of this clause (h). (i) On each Distribution Date, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent Principal Amounts of the Group II Allocation Fraction thereofCertificates shall be reduced by the amount of any Group II Applied Loss Amount for such date, and in the following order of priority: (Ci) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of II-B Certificates, until the Class X Certificates Principal Amount thereof has been reduced to zero; (ii) to the extent of Class II-M-2 Certificates, until the Group III Allocation Fraction thereofClass Principal Amount thereof has been reduced to zero; (iii) to the Class II-M-1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and (iv) to the Class II-A Certificates, until the Class Principal Amount thereof has been reduced to zero. (hj) In addition, in the event that the Paying Agent Master Servicer receives any Subsequent Recoveries on from the Mortgage Loans from a Servicer, the Paying Agent Master Servicer shall deposit such funds into the Distribution Collection Account pursuant to Section 4.01(c)(ii)5.06. If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries from the related Mortgage Pool will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Class Principal Amount of the Class or Classes of Subordinate Certificates relating to such Mortgage Pool with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to this Section 6.026.09. The amount of any remaining Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Class Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.026.09. Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate Interest current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior The Group 1, Group 2, Group 3, Group D-B and Class D-P Certificates. Realized Losses on the Group 1, Group 2 and Group 3 Mortgage Loans with respect to each Determination Dateany Distribution Date shall be allocated by the Trust Administrator to the Classes of Group 1, Group 2, Group 3, Group D-B and Class D-P Certificates as follows: (i) except as provided in the Master Servicer shall determine the amount of parenthetical below, any Realized Loss on a Group 1, Group 2 and Group 3 Mortgage Loan, other than an Excess Loss, shall be allocated first, to the Group D-B Certificates in respect decreasing order of their alphanumerical Class designations (beginning with the Class D-B-8 Certificates), until the respective Class Principal Balance of each Mortgage such Class is reduced to zero, and second, to the Senior Certificates related to such Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates Group (other than the Interest Only Notional Amount Certificates and the Class P Certificates) ), pro rata, on any Distribution Datethe basis of their respective Class Principal Balances (except if the loss is recognized with respect to a Class P Mortgage Loan, in which case the principal portion applicable Class P Fraction of each Realized Loss on a Mortgage Loan shall such loss will first be allocated to the Class D-P Certificates and the remainder for the loss will be allocated as follows: firstdescribed above); provided, however, that Realized Losses which would otherwise be allocated to the Class B-6 1-A-8 Certificates will instead be allocated to the Class 1-A-9 Certificates, until the Current Class Principal Amount thereof has been Balance of the Class 1-A-9 Certificates is reduced to zero; secondprovided, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; thirdfurther, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation which would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will otherwise be allocated to the Senior Certificate Class 2-A-5 Certificates will instead be allocated to the Class 2-A-6 Certificates, until the Class Principal Balance of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Class 2-A-6 Certificates on the related Distribution Date.is reduced to zero; (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to except as provided in the Senior Mezzanine Certificate Writedown Amountparenthetical below, if prior to Excess Losses for the Cross-Over DateGroup 1, the Senior Mezzanine Certificates Group 2 and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Group 3 Mortgage Loans will be allocated among the all Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans1, Group II Mortgage Loans or 2 and Group III Mortgage Loans occurring on or prior to 3 Certificates (other than the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Notional Amount Certificates and the Class A-1B P Certificates) and the Group D-B Certificates, pro rata, based on their respective Class Principal Balances (except if the loss is recognized with respect to Component 1X a Class P Mortgage Loan, in which case the applicable Class P Fraction of such loss will first be allocated to the Class D-P Certificates and the remainder of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans loss will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofas described above). (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, All Realized Losses on the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect Loans allocated to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan Regular Certificate shall be allocated by the Trustee on each Distribution Date as follows: first, to the Accrued Certificate Interest on the Class B-6 Certificates until X/N Interest as provided in Section 1.03 (after the Current Principal Amount thereof has been reduced to zeroallocation thereto of any Prepayment Interest Shortfalls or Relief Act Interest Shortfalls as provided in Section 1.03); second, to the Class B-5 Certificates Overcollateralization Amount, until the Current Principal Overcollateralization Amount thereof has been reduced to zero; third, to the Class B-4 Certificates B-5 Certificates, until the Current Certificate Principal Amount Balance thereof has been reduced to zero; fourth, to the Class B-3 Certificates B-4 Certificates, until the Current Certificate Principal Amount Balance thereof has been reduced to zero; fifth, to the Class B-2 Certificates B-3 Certificates, until the Current Certificate Principal Amount Balance thereof has been reduced to zero; sixth, to the Class B-1 Certificates B-2 Certificates, until the Current Certificate Principal Amount Balance thereof has been reduced to zero; seventh, to the Class M Certificates B-1 Certificates, until the Current Certificate Principal Amount Balance thereof has been reduced to zero; and eighth, to each the Class of M-6 Certificates, until the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group thereof has been reduced to zero; ninth, to the principal portion of Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; twelfth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero and thirteenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero. All Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate Principal Balances of all Classes on any Distribution Date shall be so allocated after the other actual distributions to be made on such date as provided above. All references above to the Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion Balance of any Class of Certificates shall be to the Certificate Principal Balance of such Class immediately prior to the relevant Distribution Date, before reduction thereof by any Realized Losses, in each case to be allocated to such Class of Certificates, on such Distribution Date. Any allocation of Realized Losses to a Mezzanine Certificate or a Class B Certificate on the Mortgage Loans any Distribution Date shall be accomplished made by reducing the Current Certificate Principal Amount of Balance thereof by the related Certificates on the related Distribution Dateamount so allocated. (eb) All Realized Losses on the Mortgage Loans shall be allocated by the Trustee on the each Distribution Date in to the month following REMIC 1 Regular Interest LT1 until the month in which Uncertificated Principal Balance of such loss was incurred andREMIC 1 Regular Interest has been reduced to zero; provided however, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amountfirst three Distribution Dates, if prior all Realized Losses on the Initial Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1 until the Cross-Over DateUncertificated Principal Balance of such REMIC 1 Regular Interest has been reduced to zero, and all Realized Losses on the Subordinate Certificates, in Subsequent Mortgage Loans shall be allocated to REMIC 1 Regular Interest LT1PF until the reverse order of their numerical Class designations, (ii) with respect Uncertificated Principal Balance thereof has been reduced to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Datezero. (gc) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such All Realized Losses on the Mortgage Loans will shall be borne first allocated by the Subordinate Certificates Trustee on each Distribution Date to the following REMIC 2 Regular Interests in inverse order the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to REMIC 2 Regular Interest LT2AA and REMIC 2 Regular Interest LT2ZZ up to an aggregate amount equal to the REMIC 2 Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of their numerical Class designationsREMIC 2 Regular Interest LT2AA and REMIC 2 Regular Interest LT2ZZ up to an aggregate amount equal to the REMIC 2 Principal Loss Allocation Amount, 98% and then by 2%, respectively; third, to the Senior Mezzanine Certificates. Following Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2B5 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Cross-Over DateUncertificated Principal Balance of REMIC 2 Regular Interest LT2B5 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2B4 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2B4 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2B3 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2B3 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2B2 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2B2 has been reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2B1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2B1 has been reduced to zero; eighth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M6 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M6 has been reduced to zero; ninth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M5 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M5 has been reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M4 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M4 has been reduced to zero; eleventh, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M3 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M3 has been reduced to zero; twelfth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M2 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M2 has been reduced to zero and thirteenth, to the Uncertificated Principal Balances of REMIC 2 Regular Interest LT2AA, REMIC 2 Regular Interest LT2M1 and REMIC 2 Regular Interest LT2ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC 2 Regular Interest LT2M1 has been reduced to zero. (Ad) the interest portion of Realized Special Hazard Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses based on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Certificate Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount Balance of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighthif such loss is on a Group 1, to each Class of Group 2 or Group 3 Mortgage Lto the Senior Certificates (other than the Interest Only Certificates) in of the related Certificate Mortgage Loan Group, on a pro rata based upon their respective Current Principal Amountsbasis; and eighth, to the Senior Certificates (other than the Interest Only Con a pro rata basis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among aamong the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective trespective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over COver Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect geffect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount iportion of Realized Losses on the Mortgage Loans previously in any Loan Group will be allocated to the related Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in each of Loan Group 1, Loan Group 2 and Loan Group 3 incurred during a calendar month shall be allocated by the Trust Administrator to the Classes of Certificates on the Distribution Date in the next calendar month as follows: (i) any Realized Loss, other than an Excess Loss, shall be allocated first, to the Class C-B Certificates, in decreasing order of their alphanumerical Class designations (beginning with the Class C-B-6 Certificates), until the respective Class Principal Balance of each such Class has been reduced to zero, and second, to the Senior Certificates of the related Certificate Group, as follows: (A) with respect to the Group 1 Certificates, Realized Losses on the Group 1 Loans shall be allocated first, to the Class C-M-1 Certificates, until its Class Principal Balance has been reduced to zero, and second, to the Class 1-A-1 Certificates, until its Class Principal Balance has been reduced to zero; (B) with respect to the Group 2 Certificates, Realized Losses on the Group 2 Loans shall be allocated first, to the Class 2-A-2 Certificates, until its Class Principal Balance has been reduced to zero, and second, to the Class 2-A-1 Certificates, until its Class Principal Balance has been reduced to zero; and (C) with respect to the Group 3 Certificates, Realized Losses on the Group 3 Loans shall be allocated first, to the Class C-M-1 Certificates, until its Class Principal Balance has been reduced to zero, and second, to the Class 3-A-1 Certificates, until its Class Principal Balance has been reduced to zero; and (ii) Excess Losses in respect of principal for Mortgage Loans in Loan Group 1, Loan Group 2 and Loan Group 3 shall be allocated among all Group 1, Group 2, Group 3 and Class C-B Certificates, pro rata based on such datetheir respective Class Principal Balances. (b) On each Distribution Date, to an amount less than if the aggregate Scheduled Class Principal Balance of all Group 1, Group 2, Group 3, Class C-B and Class C-M-1 Certificates exceeds the Aggregate Groups 1-3 Collateral Balance (after giving effect to distributions of principal and the Mortgage Loans in allocation of all losses to such Loan Group as of the first day of the month of Certificates on such Distribution Date (each such limitation in clause (i) and (iiDate), such excess shall be deemed a principal loss and shall be allocated by the "Loss Allocation Limitation")Trust Administrator to the most junior Class of Class C-B Certificates then outstanding. (dc) The principal portion of any Any Realized Losses on the Mortgage Loans Loss allocated to a Class of Certificates or any reduction in the Class Principal Balance of a Class of Certificates pursuant to Section 4.02(b) shall be allocated by the Trust Administrator among the Certificates of such Class in proportion to their respective Certificate Balances. (other than d) Any allocation by the Interest Only Trust Administrator of Realized Losses to a Certificate or any reduction in the Certificate Balance of a Certificate pursuant to Section 4.02(b) shall be accomplished by reducing the Certificate Balance thereof, immediately following the distributions made on the related Distribution Date in accordance with the definition of "Certificate Balance." (e) On each Distribution Date, the Trust Administrator shall determine the total Applied Loss Amount with respect to the Group 4 Certificates) , if any, for such Distribution Date. The Applied Loss Amount with respect to the Group 4 Certificates for any Distribution Date shall be applied by reducing the Class Principal Balance of each Class of the Class 4-B-1 Certificates, the Class 4-M Certificates and the Class 4-A-4 Certificates, beginning with the Class of Certificates then outstanding with the lowest relative payment priority (beginning with the Class 4-B-1 Certificates), in each case until the respective Class Principal Balance thereof has been reduced to zero. Any Applied Loss Amount with respect to the Group 4 Certificates allocated to a Class of the Class 4-B-1 Certificates, the Class 4-M Certificates or the Class 4-A-4 Certificates shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Percentage Interests. (f) All Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups1, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Group 2 and Group 3 Mortgage Loans shall be allocated on the each Distribution Date to the REMIC I Regular Interests as provided in the month following the month in which such loss was incurred and, in the case definition of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution DateREMIC I Realized Losses. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of All Realized Losses on the Group I 4 Mortgage Loans will shall be allocated on a pro rata basis each Distribution Date to the Class A-1A Certificates and REMIC II Regular Interests as provided in the Class A-1B Certificates, to Component 1X definition of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, REMIC II Realized Losses. (Bh) the interest portion of Realized Losses on the Group II 4 Mortgage Loans will that are not Applied Loss Amounts shall be deemed allocated on a pro rata basis to the Class A-2 4-X Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of . Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class 4-X Certificates to the extent of the Group shall be allocated between REMIC III Allocation Fraction thereof. (h) In addition, Regular Interests 4-X-IO and 4-X-PO as provided in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount definition of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided InterestLosses.

Allocation of Losses. (a) On or prior to each Determination Distribution Date, the Master Servicer shall determine aggregate the information provided by each Servicer with respect to the total amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution DateLosses, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: firstincluding Excess Losses, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss experienced on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on for the related Distribution Date. (eb) Realized Losses on the Mortgage Loans with respect to any Distribution Date shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date.as follows: (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect the applicable A-P Percentage of any Realized Loss, including any Excess Loss, on a Mortgage Loan in a Loan Group shall be allocated to the Subordinate Certificate Writedown Amountrelated Class of Class A-P Certificates, if prior until the Class Principal Balance thereof is reduced to zero; and (ii) (A) the applicable Non-A-P Percentage of any Realized Loss (other than an Excess Loss) shall be allocated first to the Cross-Over Date, the Subordinate Certificates, Subordinated Certificates in the reverse order of their respective numerical Class designationsdesignations (beginning with the Class of Subordinated Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, (ii) with respect and second to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than any Notional Amount Certificates, if applicable, and the Interest Only related Class of Class A-P Certificates), which reduction shall occur pro rata on such the basis of their respective Class Principal Balances or, in the case of any Class of Accrual Certificates or Accrual Component, on the basis of the lesser of their Class Principal Balance or Component Balance, as applicable, and their initial Class Principal Balance or Component Balance, as applicable, in each case immediately prior to the related Distribution Date after giving effect until the respective Class Principal Balance of each such Class is reduced to distributions made on such Distribution Date. zero; provided, that any Realized Losses (gother than an Excess Loss) Any Net Interest Shortfalls on the Mortgage Loans will in Loan Group 1 otherwise be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis allocable to the Class A-1A Certificates 1-A-1 and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will 1-A-10 Components shall be allocated on a pro rata basis to the Class A-2 1-A-7 Certificates, until its Class Principal Balance is reduced to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.zero; and

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventhSEVENTH, if such loss is on (w) a Group I Mortgage Loan, to the Class M I-A-2 Certificates until the Current Principal Amount thereof has been reduced to zero and then to the Class I-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; (x) a Group II Mortgage Loan, to the Class II-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; (y) a Group III Mortgage Loan, to the Class III-A Certificates until the Current Principal Amount of the Class III-A Certificates has been reduced to zero; or (z) a Group IV Mortgage Loan, to the Class IV-A Certificates until the Current Principal Amount of the Class IV-A Certificates has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates and the Class R Certificates) in the related Certificate Group), on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), in accordance with priorities set forth in clause (b) above, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates Certificates, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Cross- Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Senior Certificates and in the Class A-1B Certificates, to Component 1X manner described in the first sentence of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, this clause (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofg). (h) In addition, in the event that the Paying Agent Master Servicer receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent Master Servicer shall deposit such funds into the Distribution Master Servicer Collection Account pursuant to Section 4.01(c)(ii)4.02. If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to this Section 6.02. The amount of any remaining Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate Interest current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Distribution Date, the Master Securities Administrator shall aggregate the information provided by each Servicer shall determine with respect to the total amount of any Realized Loss in respect of each Losses, including Excess Losses, experienced on the Mortgage Loan that occurred during Loans for the immediately preceding calendar monthrelated Distribution Date. (b) With Realized Losses with respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan Date shall be allocated as follows: first: (i) the applicable A-P Percentage of any Realized Loss, including any Excess Loss, on a Mortgage Loan in a Loan Group shall be allocated to the related Class B-6 Certificates of Class A-P Certificates, until the Current Class Principal Amount Balance thereof has been is reduced to zero; second, and (A) the applicable Non-A-P Percentage of any Realized Loss (other than an Excess Loss) shall be allocated first to the Subordinated Certificates in reverse order of their respective numerical Class B-5 designations (beginning with the Class of Subordinated Certificates then outstanding with the highest numerical Class designation) until the Current respective Class Principal Amount thereof has been Balance of each such Class is reduced to zero; third, and second to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Class 1-A-P, Class 3-A-P, Class 1-A-X or Class 3-A-X Certificates) in the related Certificate Group, as applicable), pro rata based upon on the basis of their respective Current Class Principal Amounts. (c) Notwithstanding Balances or, in the foregoing clause (b), no such allocation case of any Class of Accrual Certificates or Accrual Component, on the basis of the lesser of their Class Principal Balance or Component Balance, as applicable, and their initial Class Principal Balance or Component Balance, as applicable, in each case immediately prior to the related Distribution Date until the respective Class Principal Balance of each such Class is reduced to zero; provided, that any Realized Loss Losses (other than an Excess Loss) on the Mortgage Loans in Loan Group 1 otherwise allocable to the Class 1-A-14 or Class 1-A-15 Certificates shall be made on a Distribution Date allocated to the Class 1-A-8 Certificates, until its Class Principal Balance is reduced to zero; and (iB) the Senior Mezzanine Certificates or applicable Non-A-P Percentage of any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Excess Losses on the Mortgage Loans on such date, in a Loan Group shall be allocated to an amount less the Classes of Certificates of the related Senior Certificate Group (other than the aggregate Scheduled Class 1-A-P, Class 3-A-P, Class 1-A-X or Class 3-A-X Certificates, as applicable) and the Subordinated Certificates then outstanding, pro rata, on the basis of, with respect to such Senior Certificates, their respective Class Principal Balances, or in the case of any Class of Accrual Certificates or Accrual Component, on the basis of the lesser of their respective Class Principal Balance of all of and their respective initial Class Principal Balance or their respective Component Balance or their respective initial Component Balance, as the Mortgage Loans as of case may be, in each case immediately prior to the first day of the month of such related Distribution Date and (ii) Senior Certificates in a Certificate Group and, with respect to each Class of Subordinated Certificates, the applicable Assumed Balance for each such Class relating to the extent that Loan Group in which such allocation would result in Realized Loss occurs; provided, however, on any Distribution Date after the reduction of the aggregate Current Principal Amounts of all the Certificates in second Senior Termination Date for a Senior Certificate Group, such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Excess Losses on the Mortgage Loans in the related Loan Group will be allocated to the Subordinated Certificates on the basis of their respective Class Principal Balances; and provided further that after the Senior Credit Support Depletion Date, such date, Excess Losses shall be allocated pro rata to an amount less all Classes and Components of Senior Certificates (other than the aggregate Scheduled Class 1-A-P, Class 3-A-P, Class 1-A-X or Class 3-A-X Certificates, as applicable) regardless of Senior Certificate Group on the basis of their respective initial Class Principal Balances or Component Balances, as applicable, or in the case of any or in the case of any Class of Accrual Certificates or Accrual Component, on the basis of the lesser of their respective Class Principal Balance and their respective initial Class Principal Balance or their respective Component Balance or their respective initial Component Balance, as the case may be, in each case immediately prior to the related Distribution Date. (c) The Class Principal Balance of all the Class of Subordinated Certificates then outstanding with the Mortgage Loans in such Loan Group as of the first day of the month of such highest numerical Class designation shall be reduced on each Distribution Date (each such limitation in clause by the sum of (i) the amount of any payments on each Class of Class A-P Certificates in respect of related Class A-P Deferred Amounts and (ii)) the amount, if any, by which the "Loss Allocation Limitation")aggregate of the Class Principal Balances of all outstanding Classes of Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses and Class A-P Deferred Amounts on such Distribution Date) exceeds the sum of the Pool Stated Principal Balance for the following Distribution Date. (d) The principal portion of any Any Realized Losses on the Mortgage Loans Loss allocated to a Class of Certificates (other than or any reduction in the Interest Only CertificatesClass Principal Balance of a Class of Certificates pursuant to Section 5.04(b) above shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group Balances. (if anye) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on to a Certificate or to any Component or any reduction in the Mortgage Loans Certificate Balance of a Certificate, pursuant to Section 5.04(b) above shall be accomplished by reducing the Current Principal Amount of Certificate Balance or Component Balance thereof, as applicable, immediately following the related Certificates distributions made on the related Distribution Date. (e) Date in accordance with the definition of "Certificate Balance" or "Component Balance," as the case may be. All Realized Losses on or Excess Losses allocated to a Class of Component Certificates will be allocated, pro rata, to the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Daterelated Components. (f) On each Distribution DateFor the avoidance of doubt, the Securities Administrator no Realized Losses shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B P Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: firstFIRST, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; secondSECOND, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; thirdTHIRD, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourthFOURTH, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifthFIFTH, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixthSIXTH, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventhand SEVENTH, to the Class M Senior Certificates as follows: (i) FIRST, if the Realized Loss occurs on a Mortgage Loan in a Mortgage Loan Group where the aggregate Stated Principal Balance of the Mortgage Loans in such Mortgage Loan Group is greater than the aggregate Current Principal Amount of the related Senior Certificates, the Realized Loss will be allocated to any Senior Certificates related to a Mortgage Loan Group where the aggregate Stated Principal Balance of the Mortgage Loans in such Mortgage Loan Group is less than the aggregate Current Principal Amount of the related Senior Certificates (any such amount, the "Group Deficiency Amount"), pro rata, based on the respective Group Deficiency Amount, in each case until the amount by which the aggregate Stated Principal Balance of the Mortgage Loans in the Mortgage Loan Group in which the Realized Loss occurs exceeds the aggregate Current Principal Amount of the related Senior Certificates has been reduced to zero; and (ii) SECOND, to the Senior Certificates related to the Mortgage Loan Group in which the Realized Loss occurred, until the Current Principal Amount thereof has been reduced to zero; and eighth. if such loss is on a Group 1, Group 2 or Group 3 Mortgage Loan, to each Class of the Group 1, Group 2 and Group 3 Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, respectively, on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator Trustee shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans in any Loan Group will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Group I Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Group I Mortgage Loan shall be allocated as follows: first, to the Class I-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class I-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class I-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class I-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class I-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class I-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on a (w) Group I-1 Mortgage Loan, to the Class I-1-A, Class R-I, Class R-III and Class R-IV Certificates, on a pro rata basis, until the Current Principal Amounts thereof have been reduced to zero, (x) Group I-2 Mortgage Loan, to the Class I-2- A-1, Class I-2-A-2 and Class I-2-A-3 Certificates, on a pro rata basis, until the Current Principal Amounts thereof have been reduced to zero, (y) Group I-3 Mortgage Loan, to the Class I-3-A Certificates, until the Current Principal Amount thereof has been reduced to zero and (w) Group I-4 Mortgage Loan, first, to the Class I-4-A-M Certificates until the Current Principal Amount thereof has been reduced to zero and second, to the Class I-4-A Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the I Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofbasis. (hc) In addition, in the event that the Paying Agent receives With respect to any Subsequent Recoveries Group II Certificates on the Mortgage Loans from a Servicerany Distribution Date, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount principal portion of a each Realized Loss on a Group II Mortgage Loan is reducedshall be allocated as follows: first, to the amount of such Subsequent Recoveries will be applied to increase Class II-B-6 Certificates until the Current Principal Amount of thereof has been reduced to zero; second, to the Senior Mezzanine Certificates, and thereafter to increase Class II-B-5 Certificates until the Current Principal Amount of thereof has been reduced to zero; third, to the Class or Classes of Subordinate II-B-4 Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase until the Current Principal Amount of the Subordinate Certificatesthereof has been reduced to zero; fourth, beginning with to the Class of Subordinate II-B-3 Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to until the Current Principal Amount of each Senior Mezzanine Certificate, and thereof has been reduced to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.zero;

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Group I Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Group I Mortgage Loan shall be allocated as follows: first, to the Class I-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class I-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class I-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class I-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class I-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class I-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventheighth, to the Group I Senior Certificates (other than the Interest Only Certificates), on a pro rata basis. (c) With respect to any Group II Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan shall be allocated as follows: first, to the Class M II-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class II-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class II-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class II-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class II-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class II-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and seventh, if such loss is on a (w) Group II-1 Mortgage Loan, to the Class II-1-A-1 Certificates, until the Current Principal Amount thereof has been reduced to zero, (x) Group II-2 Mortgage Loan, to the Class II-2-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero, (y) Group II-3 Mortgage Loan, to the Class II-3-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero and (z) Group II-4 Mortgage Loan, to the Class II-4-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Group II Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, on a pro rata based upon their respective Current Principal Amountsbasis. (cd) Notwithstanding (x) the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Group I Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Group I Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group I Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Group I Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the "Group I Loss Allocation Limitation") and (iiy) Senior the foregoing clause (c), no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Group II Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Group II Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Group II Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Group II Loss Allocation Limitation"). (de) The principal portion Notwithstanding the foregoing clauses (b) and (c), any Special Hazard Loss allocable to the Group I Senior Certificates or Group II Senior Certificates pursuant to clauses (b) or (c) above after the Group I Cross-Over Date or Group II Cross-Over Date, respectively, shall be allocated to such Senior Certificates and the most subordinate Class or Classes of Group II Subordinate Certificates and Group I Subordinate Certificates, respectively, on a pro rata basis, based on the Current Principal Amounts of such Certificates, in reduction of the Current Principal Amounts thereof until reduced to zero, with any such loss allocable to the related Subordinate Certificates allocated in the order described in clause (b) or (c) above, as applicable. (f) Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (eg) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fh) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Group I Subordinate Certificate Writedown Amount and the Group II Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Group I Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Group I Cross-Over Date, the Current Principal Amounts of the Group I Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to from and after the Senior Mezzanine Certificate Writedown Amount, if prior to the Group I Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Group I Senior Certificates (other than the Interest Only Certificates)) and the Class R-I, Class R-II and Class R-III in accordance with priorities set forth in clause (b) above, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. Any Group II Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) if prior to the Group II Cross-Over Date, the Current Principal Amounts of the Group II Subordinate Certificates, in the reverse order of their numerical Class designations and (ii) from and after the Group II Cross-Over Date, the Group II Senior Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (gi) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates (other than the Residual Certificates) in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III II Mortgage Loans occurring on or prior to the Group I Cross-Over Date or Group II Cross-Over Date, respectively, will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III II Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Group I Subordinate Certificates and Group II Subordinate Certificates in right of distribution, such Realized Losses on the Group I Mortgage Loans and Group II Mortgage Loans will be borne first by the Group I Subordinate Certificates and Group II Subordinate Certificates, respectively, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Group I Cross- Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereofSenior Certificates. Following the Group II Cross-Over Date, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and Senior Certificates in the manner described in the first sentence of this clause (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofi). (hj) In addition, in the event that the Paying Agent Master Servicer receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent Master Servicer shall deposit such funds into the Distribution Master Servicer Collection Account pursuant to Section 4.01(c)(ii)4.02. If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates in the related Certificate Group with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to this Section 6.02. The amount of any remaining Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate CertificatesCertificates of the related Certificate Group, beginning with the Class of Subordinate Certificates in the related Certificate Group with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate Interest current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on a Group 1, Group 2, Group 3 or Group 4 Mortgage Loan, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; Group 1, Group 2, Group 3 and Group 4 Senior Certificates, respectively. eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group), pro rata based upon their respective Current Principal Amountson a PRO RATA basis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), ) which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans in any Loan Group will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Distribution Date, the Master Securities Administrator shall aggregate the information provided by each Servicer shall determine with respect to the total amount of any Realized Loss in respect of each Losses, including Excess Losses, experienced on the Mortgage Loan that occurred during Loans for the immediately preceding calendar monthrelated Distribution Date. (b) With Realized Losses with respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan Date shall be allocated as follows: first: (i) the applicable A-P Percentage of any Realized Loss, including any Excess Loss, on a Mortgage Loan in a Loan Group shall be allocated to the related Class B-6 Certificates of Class A-P Certificates, until the Current Class Principal Amount Balance thereof has been is reduced to zero; second, and (ii) (A) the applicable Non-A-P Percentage of any Realized Loss (other than an Excess Loss) shall be allocated first to the Subordinated Certificates in reverse order of their respective numerical Class B-5 designations (beginning with the Class of Subordinated Certificates then outstanding with the highest numerical Class designation) until the Current respective Class Principal Amount thereof has been Balance of each such Class is reduced to zero; third, and second to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Class 3-A-P, Class 5-A-P, Class 3-A-X or Class 5-A-X Certificates) in the related Certificate Group, as applicable), pro rata based upon on the basis of their respective Current Class Principal Amounts. (c) Notwithstanding Balances or, in the foregoing clause (b), no such allocation case of any Realized Loss Class of Accrual Certificates or Accrual Component, on the Mortgage Loans shall be made on a basis of the lesser of their Class Principal Balance or Component Balance, as applicable, and their initial Class Principal Balance or Component Balance, as applicable, in each case immediately prior to the related Distribution Date to (i) until the Senior Mezzanine Certificates or any respective Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of each such Distribution Date and (ii) Senior Certificates in a Certificate Group Class is reduced to the extent zero; provided, that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of any Realized Losses (other than an Excess Loss) on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated 3 otherwise allocable to the Senior Mezzanine Class 3-A-1 or Class 3-A-6 Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will shall be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the CrossClass 3-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, until its Class Principal Balance is reduced to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.zero; and

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan in a Loan Group shall be allocated as follows: first, to the Class B-8 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-7 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; secondfourth, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; thirdfifth, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourthsixth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifthseventh, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixtheighth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventhand ninth, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal AmountsGroup as described in Section 6.02(d) hereof. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to any Class of (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Subordinated Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates in as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "“Loss Allocation Limitation"”). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. The principal portion of any Realized Losses allocated to the Group II Certificates will be allocated concurrently and pro rata to (i) the Class II-A-3 Certificates until the Current Principal Amount of the Class II-A-3 Certificates has been reduced to zero and (ii) the Class II-A-2 Certificates and the Class II-A-1 Certificates, sequentially in that order, until the Current Principal Amount of each such Class thereof has been reduced to zero. The principal portion of any Realized Losses allocated to the Group III Certificates will be allocated concurrently and pro rata to (i) the Class III-A-3 Certificates until the Current Principal Amount of the Class III-A-3 Certificates has been reduced to zero and (ii) the Class III-A-2 Certificates and the Class III-A-1 Certificates, sequentially in that order, until the Current Principal Amount of each such Class thereof has been reduced to zero. The principal portion of any Realized Losses allocated to the Group IV Certificates will be allocated concurrently and pro rata to (i) the Class IV-A-3 Certificates until the Current Principal Amount of the Class IV-A-3 Certificates has been reduced to zero and (ii) the Class IV-A-2 Certificates and the Class IV-A-1 Certificates, sequentially in that order, until the Current Principal Amount of each such Class thereof has been reduced to zero. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans mortgage loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated pro rata based upon their respective Current Principal Amounts to the remaining Senior Certificate Certificates of the other Certificate Groups, pro rata, rata based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, Class B Certificates in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any The applicable Senior Percentage of Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Senior Certificates in the related Certificate Group in proportion to the respective amounts amount of Accrued Certificate Interest that would have been allocated thereto in the absence of such shortfalls. The applicable Subordinate Percentage of Net Interest Shortfalls for Shortfall will be allocated among the Subordinate Certificates in proportion to the amount of Accrued Certificate Interest that would have been allocated thereto in the absence of such Distribution Dateshortfalls. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce to the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Class B Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated to the Senior Certificates in the related Certificate Group on a pro rata basis in proportion to the Class A-1A Certificates and amount of Accrued Certificate Interest that would have been allocated thereto in the Class A-1B Certificates, to Component 1X absence of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of such Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofLosses. (h) In addition, in the event that the Paying Agent Master Servicer receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent Master Servicer shall deposit such funds into the Distribution Master Servicer Collection Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to this Section 6.02. The amount of any remaining Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Residual Certificates and the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Residual Certificates and the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective its Current Principal AmountsAmount. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates (other than the Residual Certificates) as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) the Senior Certificates (other than the Residual Certificates) in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts Amount of all the Certificates (other than the Residual Certificates) in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Residual Certificates and the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Residual Certificates and the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate Certificates (other than the Residual Certificates and the Interest Only Certificates) of the other Certificate Groups, pro rataGroup, based upon their respective Current Principal AmountsAmount. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Residual Certificates and the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates (other than the Residual Certificates) in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III II Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III II Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B A-1 Certificates, to Component 1X of the Class X X-1 Certificates and to Component 3X 2X of the Class X X-1 Certificates to the extent of the Group I Allocation Fraction thereof, and (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, and Class X-2 Certificates and to Component 2X of the Class X Certificates and to Component 3X of the Class X X-1 Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: firstFIRST, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; secondSECOND, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; thirdTHIRD, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourthFOURTH, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifthFIFTH, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixthSIXTH, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventhSEVENTH, to the Class M A-3 Certificates until the Current Principal Amount thereof has been reduced to zero; and eighthEIGHTH, if such loss is on a Group 1 or Group 2 Mortgage Loan, to each Class of the Group 1 or Group 2 Senior Certificates, respectively; and NINTH, to the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amountson a PRO RATA basis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator Trustee shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I 1 Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Group 1 Senior Certificates, to Component 1X X-1 of the Class X Certificates and to Component 3X X-2 of the Class X Certificates to the extent of the Group I 1 Allocation Fraction thereof, (B) and the interest portion of Realized Losses on the Group II 2 Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Group 2 Senior Certificates and to Component 3X X-2 of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III 2 Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: (i) The applicable PO Percentage of any such Realized Loss on a Discount Mortgage Loan and any PO Cash Shortfall shall be allocated to the Class P Certificates; and (ii) The applicable Non-PO Percentage of any such Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighthClasses of related Senior Certificates, to each Class of the Senior Certificates (other than the Interest Only Certificates) PRO RATA, in the related Certificate Group, pro rata based upon accordance with their respective Current Principal Amounts.; (c) Notwithstanding the foregoing clause (b)foregoing, no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine a Class of Group 1A Certificates or any Class or Classes of Subordinate Group 1B Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Group 1A Certificates and Group 1B Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Group 1A Mortgage Loans and Group 1B Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date, except that the aggregate amount of Realized Losses to be allocated to the Class P Certificates on any Distribution Date through the related Cross-Over Date will be taken into account in determining distributions in respect of the PO Deferred Amount for such Distribution Date. (f) On each Distribution Date, the Securities Administrator Master Servicer shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Group 1A Senior Certificates (other than the Interest Only and Group 1B Senior Certificates), PRO RATA based on their respective Current Principal Amounts, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) On each Distribution Date, on or prior to the Cross-Over Date the Trustee shall determine the PO Deferred Payment Writedown Amount with respect to the Class P Certificates, if any. Any Net Interest Shortfalls on such PO Deferred Payment Writedown Amount with respect to the Mortgage Loans will be allocated among Class P Certificates shall effect a corresponding reduction in the Classes Current Principal Amount of the Subordinate Certificates in proportion to the respective amounts reverse order of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. their numerical Class designations. (h) The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II 1A Mortgage Loans or and Group III 1B Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Group 1A Certificates or Group 1B Certificates, but will reduce the amount of Group I Available Funds, Group II 1A Available Funds or and Group III 1B Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates Certificates, in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest...

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on a Group 1, Group 2, Group 3, Group 4 or Group 5 Mortgage Loan, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; Group 1, Group 2, Group 3, Group 4 and Group 5 Senior Certificates, respectively. eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amountson a PRO RATA basis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans in any Loan Group will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan (other than any Excess Special Hazard Loss, Excess Fraud Loss and Excess Bankruptcy Loss) shall be allocated as follows: (i) the applicable PO Percentage of any such Realized Loss shall be allocated to the Class PO Certificates; and (ii) the applicable Non-PO Percentage of any such Realized Loss shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and seventh, to the Classes of Senior Certificates (other then the Class M PO and Class X Certificates), pro rata, in accordance with their Current Principal Amounts; except that the Class A-I-11 Certificates will bear any Realized Losses otherwise allocable to the Class A-I-8 and Class A-I-9 Certificates until the Current Principal Amount thereof of the Class A-I-11 Certificates has been reduced to zero. (c) With respect to any Distribution Date, the principal portion of any Excess Loss (other than those attributable to Debt Service Reductions) shall be allocated as follows: (i) the applicable PO Percentage of any such Excess Loss shall be allocated to the Class PO Certificates; and eighth, to each Class and (ii) the applicable Non-PO Percentage of the Senior any such Excess Loss shall be allocated among all Classes of Certificates (other than the Interest Only Class PO and Class X Certificates) in the related Certificate Group), pro rata rata, based upon their on the respective Current Principal AmountsAmounts thereof. (cd) Notwithstanding the foregoing clause (b)foregoing, no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any a Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group Date, less any Deficient Valuations occurring on or prior to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Bankruptcy Coverage Termination Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (de) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates pursuant to Subsections 6.03(b) or (other than the Interest Only Certificatesc) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans pursuant to this Subsection 6.03(e) shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution DateDate in accordance with Subsection 6.03(f). (ef) Realized Losses on the Mortgage Loans allocated in accordance with this Section 6.03 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date, except that the aggregate amount of Realized Losses to be allocated to the Class PO Certificates on such Distribution Date will be taken into account in determining distributions in respect of the Class PO Deferred Amount. (fg) On each Distribution Date, the Securities Administrator Master Servicer shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount, if any. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, Certificates in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Class PO and Class X Certificates)) pro rata based in their respective Current Principal Amounts, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (gh) On each Distribution Date, on or prior to the Cross- Over Date, the Master Servicer shall determine the Class PO Deferred Payment Amount Writedown Amount, if any. Any such Class PO Deferred Payment Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of the Subordinate Certificates in the reverse order of their numerical Class designations. (i) If on any Distribution Date the Group I Available Funds are less than the Accrued Certificate Interest on the Class A-I and Residual Certificates and the Class X Component I Accrued Certificate Interest on Component I of the Class X Certificates or if the Group II Available Funds are less than the Accrued Certificate Interest on the Class A-II Certificates and the Class X Component II Accrued Certificate Interest on Component II of the Class X Certificates, in each case for such Distribution Date and prior to reduction for Net Interest Shortfalls on Shortfall and the Mortgage Loans interest portion of Realized Losses, the shortfall will be allocated among the Classes holders of Certificates each such respective Class or Component in proportion to the respective amounts of Accrued Certificate Interest and Class X Component I Accrued Certificate Interest or Class X Component II Accrued Certificate Interest, as applicable, that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall and/or Realized Losses for such Distribution DateDate on each such Class or Component. The interest portion In addition, the amount of any Realized Losses interest shortfalls with respect to the related Mortgage Loan Group that are covered by subordination will constitute unpaid Accrued Certificate Interest or unpaid Class X Component I Accrued Certificate Interest or unpaid Class X Component II Accrued Certificate Interest and will be distributable to holders of the Certificates of the related Classes or Component entitled to such amounts on subsequent Distribution Dates, to the extent of Group I Mortgage Loans, Available Funds or Group II Mortgage Loans or Group III Mortgage Loans occurring on or Available Funds, as applicable, after interest distributions as required herein. Any such amount so carried forward will not bear interest. (j) With respect to any Distribution Date prior to the Cross-Over Date will not Date, Realized Losses shall be allocated among to the REMIC II Regular Certificates in a manner similar to the allocation of Realized Losses to the REMIC I Regular Certificates under this Section 6.03, except that any Certificates, but will reduce losses allocated to a Class B Certificate shall be allocated to the amount of REMIC II Class II-B-1 Certificate if the loss is attributable to a Group I Available Funds, Mortgage Loan and shall be allocated to the REMIC II Class II-B-2 Certificate if the loss is attributable to a Group II Available Funds or Group III Available Funds, respectively, on the related Mortgage Loan. With respect to any Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following Date after the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will shall be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine REMIC II Regular Certificates or to in an amount such that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries distributions on the Mortgage Loans following REMIC II Regular Certificates are an amount sufficient to make the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses distributions on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or respective Corresponding Classes of Certificates pursuant to this Section 6.02. Holders of on such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interestthe provisions of subsection (a) of Section 6.01.

Allocation of Losses. (a) On or prior The Group I, Group IV, Group V, Group VI, Group IX, Group B and Class A-P Certificates. Realized Losses on the Group I, Group IV, Group V, Group VI and Group IX Mortgage Loans with respect to each Determination Dateany Distribution Date shall be allocated by the Trust Administrator to the Classes of Group I, Group IV, Group V, Group VI, Group IX, Group B and Class A-P Certificates as follows: (i) except as provided in the Master Servicer shall determine the amount of parenthetical below, any Realized Loss on a Group I, Group IV, Group V, Group VI or Group IX Mortgage Loan, other than an Excess Loss, shall be allocated first, to the Group B Certificates in respect decreasing order of their alphanumerical Class designations (beginning with the Class B-6 Certificates), until the respective Class Principal Balance of each Mortgage such Class is reduced to zero, and second, to the Senior Certificates related to such Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates Group (other than the Interest Only Notional Amount Certificates and the Class P Certificates) ), pro rata, on any Distribution Datethe basis of their respective Class Principal Balances (except if the loss is recognized with respect to a Class P Mortgage Loan, in which case the principal portion applicable Class P Fraction of each Realized Loss on a Mortgage Loan shall such loss will first be allocated to the Class A-P Certificates and the remainder for the loss will be allocated as follows: firstdescribed above); provided, however, that (A) Realized Losses which would otherwise be allocated to the Class B-6 I-A-3 Certificates will instead be allocated to the Class I-A-4 Certificates, until the Current Class Principal Amount thereof has been Balance of the Class I-A-4 Certificates is reduced to zero; second, (B) Realized Losses which would otherwise be allocated to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced V-A-1 and Class V-A-3 Certificates, up to zero; thirdan amount equal to 29.52% and 70.48%, to respectively, of the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to Balance of the Class B-3 V-A-2 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of for such Distribution Date, after giving effect and up to all distributions a maximum of $1,755,000 and prior allocations of Realized Losses on $4,189,369, respectively, will instead be allocated to the Mortgage Loans on such dateClass V-A-2 Certificates, to an amount less than until the aggregate Scheduled Class Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Class V-A-2 Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been is reduced to zero, the principal portion of (C) Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will which would otherwise be allocated to the Senior Certificate Class IX-A-6 Certificates will instead be allocated to the Class IX-A-12 Certificates, until the Class Principal Balance of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Class IX-A-12 Certificates on the related Distribution Date. is reduced to zero and (eD) Realized Losses on the Mortgage Loans shall which would otherwise be allocated on to the Distribution Date in Class IX-A-13 Certificates will instead be allocated to the month following Class IX-A-15 Certificates, until the month in which such loss was incurred and, in the case Class Principal Balance of the principal portion thereof, after giving effect Class IX-A-15 Certificates is reduced to distributions made on such Distribution Date.zero; (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to Excess Losses for the Senior Mezzanine Certificate Writedown AmountGroup I, if prior to the Cross-Over DateGroup IV, the Senior Mezzanine Certificates Group V, Group VI and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Group IX Mortgage Loans will be allocated among the all Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage LoansI, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available FundsIV, Group II Available Funds or V, Group III Available Funds, respectively, on VI and Group IX Certificates (other than the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Notional Amount Certificates and the Class A-1B P Certificates) and the Group B Certificates, pro rata, based on their respective Class Principal Balances (except if the loss is recognized with respect to Component 1X a Class P Mortgage Loan, in which case the applicable Class P Fraction of such loss will first be allocated to the Class A-P Certificates and the remainder of the loss will be allocated as described above). (b) The Group II, Group III, Group C-B and Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of A-P Certificates. Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will with respect to any Distribution Date shall be allocated on a pro rata basis by the Trust Administrator to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Group II, Group III, Group C-B and Class A-P Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.as follows:

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any the Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on a Group 1, Group 2, Group 3, Group 4, Group 5 or Group 6 Mortgage Loan, to the Class M Group 1, Group 2, Group 3, Group 4, Group 5 or Group 6 Senior Certificates (other than the Interest Only Certificates), respectively, in each case until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the related Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group), on a pro rata based upon their respective basis, until the Current Principal AmountsAmounts thereof have been reduced to zero. No Realized Losses will be allocated to the Class S Certificates. (c) Notwithstanding (x) the foregoing clause (ba), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I 1, Group 2, Group 3, Group 4, Group 5 and Group 6 Mortgage Loans will be allocated to the related Group 1, Group 2, Group 3, Group 4, Group 5 and Group 6 Senior Certificates, respectively, on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofbasis. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Group I Certificates (other than the Interest Only Class I-X Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Group I Mortgage Loan shall be allocated as follows: first, to the Class I-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class I-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class I-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class I-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class I-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class I-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on a Group I-1, Group I-2 or Group I-3 Mortgage Loan, to the Group I-1, Group I-2 or Group I-3 Senior Certificates (other than the Class M Certificates I-X Certificates), respectively, in each case until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Group I Senior Certificates (other than the Interest Only Class I-X Certificates) in the related Certificate Group), on a pro rata based upon their respective basis, until the Current Principal AmountsAmounts thereof have been reduced to zero. (c) With respect to any Group II Certificates (other than the Class R-II Certificates and Class II-X Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan shall be allocated as follows: first, to the Class II-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class II-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class II-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class II-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class II-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class II-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and seventh, to the Group II Senior Certificates (other than the Class R-II Certificates and Class II-X Certificates), until the Current Principal Amount thereof has been reduced to zero. (d) Notwithstanding (x) the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Group I Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Group I Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group I Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Group I Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the "Group I Loss Allocation Limitation") and (iiy) Senior the foregoing clause (c), no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Group II Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Group II Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Group II Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Group II Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Group II Loss Allocation Limitation"). (de) The principal portion Notwithstanding the foregoing clauses (b) and (c), any Special Hazard Loss allocable to the Group I Senior Certificates or Group II Senior Certificates pursuant to clauses (b) or (c) above after the Group I Cross-Over Date or Group II Cross-Over Date, respectively, shall be allocated to such Senior Certificates and the most subordinate Class or Classes of Subordinate Certificates of the non-related Certificate Group, on a pro rata basis, based on the Current Principal Amount of such Certificates, in reduction of the Current Principal Amounts thereof until reduced to zero, with any such loss allocable to the related Subordinate Certificates allocated in the order described in clause (b) or (c) above, as applicable. (f) Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (eg) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fh) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount Group I and the Group II Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Group I Cross-Over Date, the Current Principal Amounts of the Group I Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Group II Cross-Over Date, the Senior Mezzanine Certificates and Current Principal Amounts of the Group II Subordinate Certificates, in the reverse order of their numerical Class designations, (iii) from and after the Group I Cross-Over Date, the Group I Senior Certificates which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date and (other than iv) from and after the Interest Only Certificates)Group II Cross-Over Date, the Group II Senior Certificates which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (gi) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates (other than the Class R-II Certificates) in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III II Mortgage Loans occurring on or prior to the Group I Cross-Over Date or Group II Cross-Over Date, respectively, will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III II Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Group I Subordinate Certificates and Group II Subordinate Certificates in right of distribution, such Realized Losses on the Group I Mortgage Loans and Group II Mortgage Loans will be borne first by the Group I Subordinate Certificates and Group II Subordinate Certificates, respectively, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Group I Cross-Over Date, (A) the interest portion of Realized Losses on the Group I I-1, Group I-2 and Group I-3 Mortgage Loans will be allocated to the related Group I-1, Group I-2 and Group I-3 Senior Certificates, respectively, on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of basis. Following the Group I Allocation Fraction thereofII Cross-Over Date, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofSenior Certificates. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on (v) a Group I Mortgage Loan, to the Class M I-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; (w) a Group II Mortgage Loan, to the Class II-A-1 Certificates, until the Current Principal Amount thereof has been reduced to zero; (x) a Group III Mortgage Loan, to the Class III-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; (y) a Group IV Mortgage Loan, to the Class IV-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero or (z) a Group V Mortgage Loan, to the Class V-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Class R Certificates) in the related Certificate Group), on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts Amount of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "“Loss Allocation Limitation"”). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates Certificates, in accordance with priorities set forth in clause (other than the Interest Only Certificates)b) above, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates Certificates, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Senior Certificates and in the Class A-1B Certificates, to Component 1X manner described in the first sentence of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, this clause (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofg). (h) In addition, in the event that the Paying Agent Master Servicer receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent Master Servicer shall deposit such funds into the Distribution Master Servicer Collection Account pursuant to Section 4.01(c)(ii)4.02. If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to this Section 6.02. The amount of any remaining Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate Interest current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighthif such loss is on a Group 1, Group 2, Group 3 or Group 4 Mortgage Loan, to each Class of the Senior Certificates (other than the Interest Only Certificates) in of the related Certificate Mortgage Loan Group, on a pro rata based upon their respective Current Principal Amountsbasis; and eighth, to the Senior Certificates, on a pro rata basis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans in any Loan Group will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Distribution Date, the Master Servicer shall determine aggregate the information provided by the Servicers with respect to the total amount of any Realized Loss in respect of each Losses, including Excess Losses, experienced on the Mortgage Loan that occurred during Loans for the immediately preceding calendar monthrelated Distribution Date. (b) With respect to any Certificates (other than the Interest Only Certificates) on any On each Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan Losses (other than Excess Losses) shall be allocated as follows: first, to the Subordinate Certificates in reverse order of their respective numerical Class B-6 designations (beginning with the related Class of Subordinate Certificates with the highest numerical Class designation) until the Current Class Principal Amount thereof of each such Class is reduced to zero; and second, to each Class of Senior Certificates relating to the Mortgage Pool in the Aggregate Pool which sustained such loss (allocated among the related Senior Classes on a pro rata basis), in each case, until the Class Principal Amount of each such Class of Senior Certificates is reduced to zero; provided that any Realized Losses (other than Excess Losses) (i) on the Pool 1 Mortgage Loans that would otherwise be allocated to the Class 1-A-1 Certificates will instead be allocated to the Class 1-A-2 Certificates, until the Class Principal Amount of the Class 1-A-2 Certificates has been reduced to zero; second, (ii) on the Pool 2 Mortgage Loans that would otherwise be allocated to the Class B-5 2-A-1, Class 2-A-2 or Class 2-A-3 Certificates will instead be allocated to the Class 2-A-4 Certificates, until the Current Class Principal Amount thereof of the Class 2-A-4 Certificates has been reduced to zero; third, (iii) on the Pool 3 Mortgage Loans that would otherwise be allocated to the Class B-4 3-A-1, Class 3-A-2 or Class 3-A-3 Certificates will instead be allocated to the Class 3-A-4 Certificates, until the Current Class Principal Amount thereof of the Class 3-A-4 Certificates has been reduced to zero and (iv) on the Pool 4 Mortgage Loans that would otherwise be allocated to the Class 4-A-1 or Class 4-A-2 Certificates will instead be allocated to the Class 4-A-3 Certificates, until the Class Principal Amount of the Class 4-A-3 Certificates has been reduced to zero; fourth. (c) On each Distribution Date, any Excess Losses on the Mortgage Loans in a Mortgage Pool shall be allocated to the related Classes of Senior Certificates of the related Certificate Group and the Subordinate Certificates then outstanding, pro rata, on the basis of, with respect to such Senior Certificates, their respective Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifthAmounts and, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, with respect to each Class of the Senior Certificates (other than Subordinate Certificates, the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current applicable Apportioned Principal Amounts. (c) Notwithstanding the foregoing clause (b), no Balance for each such allocation of any Realized Loss on Class relating to the Mortgage Loans shall be made Pool in which such Excess Losses occurs; provided, however, on a any Distribution Date to (i) after the third Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to Termination Date for the extent that Aggregate Pool, such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Excess Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) Pool will be allocated to the Senior Certificate of Certificates (subject to the other Certificate Groupsexceptions described in the succeeding sentence) and the Subordinate Certificates, pro rata, based upon on the basis of their respective Current Class Principal Amounts. The principal portion ; and provided, further, that after the Credit Support Depletion Date, such Excess Losses shall be allocated, pro rata, to all the Senior Certificates regardless of any allocation of Realized Losses Certificate Group (subject to the exceptions described in the succeeding sentence), on the basis of their respective Class Principal Amounts, until the respective Class Principal Amounts of each such Class are reduced to zero. Notwithstanding the foregoing, any Excess Losses (i) on the Pool 1 Mortgage Loans shall that would otherwise be accomplished by reducing allocated to the Current Class 1-A-1 Certificates will instead be allocated to the Class 1-A-2 Certificates, until the Class Principal Amount of the related Class 1-A-2 Certificates has been reduced to zero, (ii) on the related Distribution DatePool 2 Mortgage Loans that would otherwise be allocated to the Class 2-A-1, Class 2-A-2 or Class 2-A-3 Certificates will instead be allocated to the Class 2-A-4 Certificates, until the Class Principal Amount of the Class 2-A-4 Certificates has been reduced to zero, (iii) on the Pool 3 Mortgage Loans that would otherwise be allocated to the Class 3-A-1, Class 3-A-2 or Class 3-A-3 Certificates will instead be allocated to the Class 3-A-4 Certificates, until the Class Principal Amount of the Class 3-A-4 Certificates has been reduced to zero and (iv) on the Pool 4 Mortgage Loans that would otherwise be allocated to the Class 4-A-1 or Class 4-A-2 Certificates will instead be allocated to the Class 4-A-3 Certificates, until the Class Principal Amount of the Class 4-A-3 Certificates has been reduced to zero. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fd) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Class Principal Amount of the Senior Mezzanine Certificate Writedown Amount and Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced by the related Subordinate Certificate Writedown Amount. . (e) Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount allocation of a loss pursuant to this Section 5.03 to a Class of Certificates shall effect a corresponding reduction in be achieved by reducing the Current Class Principal Amount thereof by the amount of such loss. (if) If Subsequent Recoveries have been received with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the a Liquidated Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reducedLoan, the amount of such Subsequent Recoveries will be applied to increase sequentially, in the Current Principal Amount order of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to increase the Class Principal Amount of each Class of Certificates to which Realized Losses on the Mortgage Loans have been allocatedallocated in respect of such Liquidated Mortgage Loan, but in each case by not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.025.03 (net of previous increases to the Class Principal Amount due to other Subsequent Recoveries). Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate the Interest Distribution Amount on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to among the Current Certificates of a Class pro rata, based on the Class Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate Certificates of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to the latest Determination Date in each Determination Datemonth, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss (other than any Excess Loss) on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, if such loss is on a Group 1, Group 2, Group 3 or Group 4 Mortgage Loan, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and Group 1, Group 2, Group 3 or Group 4 Senior Certificates, respectively. eighth, to the Senior Certificates, on a pro rata basis. (c) With respect to any Distribution Date, the Senior Percentage of the interest and principal portions of any Excess Loss in respect of a Group 1, Group 2, Group 3 or Group 4 Mortgage Loan, as the case may be, will be allocated to the Group 1, Group 2, Group 3 or Group 4 Senior Certificates, as applicable, and the Subordinate Percentage of such Excess Loss will be allocated to each Class of the Senior Certificates (other than the Interest Only Subordinate Certificates) in the related Certificate Group, pro rata based upon their rata, on the basis of its respective Current Principal AmountsAmount for that Distribution Date. (cd) Notwithstanding the foregoing clause (b), no such allocation reduction of the Current Principal Amount of any Realized Loss on the Mortgage Loans Class of Senior Certificates shall be made on a any Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes on account of Subordinate Certificates Realized Losses to the extent that such allocation reduction would result in have the reduction effect of reducing the aggregate Current Principal Amounts of all Certificates as Amount of such Distribution Date, after giving effect to all distributions and prior allocations Class of Realized Losses on the Mortgage Loans on such date, Senior Certificates to an amount less than the aggregate Scheduled Principal Balance Balances of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution related Due Date (each such limitation in clause (i) and (ii), being the applicable "Loss Allocation Limitation"). (de) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (ef) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fg) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (gh) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans in any Loan Group will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan in a Loan Group shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, Group pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to any Class of (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Subordinated Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates in as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Trustee of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, Class B Certificates in the reverse order of their numerical Class designations, (ii) with respect to designations and thereafter of the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Class M Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any The applicable Senior Percentage of Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Senior Certificates in the related Certificate Group in proportion to the respective amounts amount of Accrued Certificate Interest that would have been allocated thereto in the absence of such shortfalls. The applicable Subordinate Percentage of Net Interest Shortfalls for Shortfall will be allocated among the Subordinate Certificates in proportion to the amount of Accrued Certificate Interest that would have been allocated thereto in the absence of such Distribution Dateshortfalls. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce to the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Class B Certificates in inverse order of their numerical Class designations, designations and then by to the Senior Mezzanine Class M Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued related Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided InterestGroup.

Allocation of Losses. (a) On or prior to each Determination Distribution Date, the Master Servicer shall determine aggregate the information provided by each Servicer with respect to the total amount of any Realized Loss in respect of each Losses, including Excess Losses, experienced on the Mortgage Loan that occurred during Loans for the immediately preceding calendar monthrelated Distribution Date. (b) With respect to any Certificates (other than the Interest Only Certificates) on any On each Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan Losses (other than Excess Losses) shall be allocated as follows: first, to the Subordinate Certificates in reverse order of their respective numerical Class B-6 designations (beginning with the related Class of Subordinate Certificates with the highest numerical Class designation) until the Current Class Principal Amount thereof of each such Class is reduced to zero; and second, to each Class of Senior Certificates relating to the Mortgage Pool which sustained such loss (allocated among the related Senior Classes on a pro rata basis), in each case, until the Class Principal Amount of each such Class of Senior Certificates is reduced to zero; provided that any Realized Losses (other than Excess Losses) in (a) Pool [ ] otherwise allocable to the Class [ ], Class [ ], Class [ ] and Class [ ] Certificates will instead be allocated to the Class [ ] Certificates, until the Class Principal Amount of the Class [ ] Certificates has been reduced to zero; second, (b) Pool [ ] otherwise allocable to the Class B-5 [ ], Class [ ], Class [ ], Class [ ], Class [ ] and Class [ ] Certificates will instead be allocated to the Class [ ] Certificates, until the Current Class Principal Amount thereof of the Class [ ] Certificates has been reduced to zero; third, (c) Pool [ ] otherwise allocable to the Class B-4 [ ] Certificates will instead be allocated to the Class[ ] Certificates, until the Current Class Principal Amount thereof of the Class[ ] Certificates has been reduced to zero; fourth, (d) Pool [ ] otherwise allocable to the Class B-3 [ ] Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, will instead be allocated to the Class B-2 Certificates [ ] Certificates, until the Current Class Principal Amount thereof has been reduced to zero; sixth, to of the Class B-1 [ ] Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth(e) Pool [ ] otherwise allocable to the Class [ ] Certificates will instead be allocated to the Class [ ] Certificates, until the Class Principal Amount of the Class [ ] Certificates has been reduced to zero. (c) On each Distribution Date, any Excess Losses on the Mortgage Loans in a Mortgage Pool shall be allocated to the related Classes of Senior Certificates of the related Certificate Group and the Subordinate Certificates then outstanding, pro rata, on the basis of, with respect to such Senior Certificates, their respective Class Principal Amounts and, with respect to each Class of the Senior Certificates (other than Subordinate Certificates, the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current applicable Apportioned Principal Amounts. (c) Notwithstanding the foregoing clause (b), no Balance for each such allocation of any Realized Loss on Class relating to the Mortgage Loans shall be made Pool in which such Excess Losses occurs; provided, however, on a any Distribution Date to (i) after the fifth Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Termination Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Excess Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) Pool will be allocated to the Senior Certificate of Certificates and the other Certificate GroupsSubordinate Certificates, pro rata, based upon on the basis of their respective Current Class Principal Amounts. The principal portion ; and provided, further, that after the Credit Support Depletion Date, such Excess Losses shall be allocated, pro rata, to all the Senior Certificates regardless of any allocation of Realized Losses Certificate Group, on the Mortgage Loans shall be accomplished by reducing basis of their respective Class Principal Amounts, until the Current respective Class Principal Amount Amounts of the related Certificates on the related Distribution Dateeach such Class are reduced to zero. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fd) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent Class Principal Amount of the Senior Mezzanine Certificate Writedown Amount and Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced by the related Subordinate Certificate Writedown Amount. . (e) Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount allocation of a loss pursuant to this Section 5.03 to a Class of Certificates shall effect a corresponding reduction in be achieved by reducing the Current Class Principal Amount thereof by the amount of such loss. (if) If Subsequent Recoveries have been received with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the a Liquidated Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reducedLoan, the amount of such Subsequent Recoveries will be applied to increase sequentially, in the Current Principal Amount order of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to increase the Class Principal Amount of each Class of Certificates to which Realized Losses on the Mortgage Loans have been allocatedallocated in respect of such Liquidated Mortgage Loan, but in each case by not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.025.03. Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate the Interest Distribution Amount on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to among the Current Certificates of a Class pro rata, based on the Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate Certificates of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Group I Mortgage Loan shall be allocated as follows: first, to the Class I-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class I-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class I-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class I-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class I-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class I-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and seventh, to the Classes of Group I Senior Certificates, PRO RATA, in accordance with their Current Principal Amounts; provided, that if a Realized Loss otherwise allocable to the Group I Senior Certificates pursuant to clause SEVENTH is a Special Hazard Loss, such Realized Loss shall be allocated to the Group I Senior Certificates and the Group II Certificates then outstanding on a PRO RATA basis. (c) With respect to any Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan shall be allocated as follows: first, to the Class M II-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class II-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class II-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class II-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class II-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class II-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and eighthseventh, to each Class the Classes of the Group II Senior Certificates (other than the Interest Only Certificates) , PRO RATA, in the related Certificate Group, pro rata based upon accordance with their respective Current Principal Amounts. (cd) Notwithstanding the foregoing clause (b)foregoing, no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (de) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (ef) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (fg) On each Distribution Date, the Securities Administrator Master Servicer shall determine the Group I and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Group II Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Group I Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Group I Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Group I Cross-Over Date, the Current Principal Amounts of the Group I Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to from and after the Senior Mezzanine Certificate Writedown Amount, if prior to the Group I Cross-Over Date, the Group I Senior Mezzanine Certificates and Certificates, PRO RATA based on their respective Current Principal Amounts, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. Any such Group II Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Group II Current Principal Amount of (iiii) from and after if prior to the Group II Cross-Over Date, the Current Principal Amounts of the Group II Subordinate Certificates, in the reverse order of their numerical Class designations and (ii) from and after the Group II Cross-Over Date, the Group II Senior Certificates (other than the Interest Only Certificates), PRO RATA based on their respective Current Principal Amounts, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (gh) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Group I Cross-Over Date will not be allocated among any Group I Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Group I Subordinate Certificates Certificates, in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Group I Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the The interest portion of any Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis with respect to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans occurring on or prior to the Group II Cross-Over Date will not be allocated on a pro rata basis to the Class A-2 among any Group II Certificates, to Component 2X but will reduce the amount of Group II Available Funds on the related Distribution Date. As a result of the Class X Certificates and to Component 3X of the Class X Certificates to the extent subordination of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class in right of Subordinate Certificates with the next highest payment prioritydistribution, up to the amount of such Realized Losses on will be borne first by the Mortgage Loans previously allocated to the Senior Mezzanine Group II Subordinate Certificates or to such in inverse order of their numerical Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interestdesignations.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on (other than any Excess Loss) with respect to a Mortgage Loan Pool shall be allocated as follows: first, in the following order of priority: (i) to the Class B-6 Certificates until the Current Principal Amount Class Certificate Balance thereof has been reduced to zero; second, ; (ii) to the Class B-5 Certificates until the Current Principal Amount Class Certificate Balance thereof has been reduced to zero; third, ; (iii) to the Class B-4 Certificates until the Current Principal Amount Class Certificate Balance thereof has been reduced to zero; fourth, ; (iv) to the Class B-3 Certificates until the Current Principal Amount Class Certificate Balance thereof has been reduced to zero; fifth, ; (v) to the Class B-2 Certificates until the Current Principal Amount Class Certificate Balance thereof has been reduced to zero; sixth, ; (vi) to the Class B-1 Certificates until the Current Principal Amount Class Certificate Balance thereof has been reduced to zero; seventh, ; (vii) to the Class M Classes of Senior Certificates until or Components (in the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class case of the Senior Certificates (other than the Interest Only Class A-M Certificates) in of the related Certificate Group, pro rata based upon rata, in accordance with their respective Current Class Certificate Balances or Component Principal AmountsBalances (in the case of the Class A-M Certificates); provided, that (a) the principal portion of Realized Losses (other than Excess Losses) on the Mortgage Loans allocable to the Class I-A-1 Certificates will instead be borne first by the Group I Component of the Class A-M Certificates until its Component Principal Balance is reduced to zero (in addition to other Realized Losses allocable to the Group I Component of the Class A-M Certificates), and not by the Class I-A-1 Certificates, for so long as the Component Principal Balance of the Group I Component of the Class A-M Certificates is greater than zero, (b) the principal portion of Realized Losses (other than Excess Losses) on the Mortgage Loans allocable to the Class II-A-1 Certificates will instead be borne first by the Group II Component of the Class A-M Certificates until its Component Principal Balance is reduced to zero (in addition to other Realized Losses allocable to the Group II Component of the Class A-M Certificates), and not by the Class II-A-1 Certificates, for so long as the Component Principal Balance of the Group II Component of the Class A-M Certificates is greater than zero, (c) the principal portion of Realized Losses (other than Excess Losses) on the Mortgage Loans allocable to the Class III-A-1 Certificates will instead be borne first by the Group III Component of the Class A-M Certificates until its Component Principal Balance is reduced to zero (in addition to other Realized Losses allocable to the Group III Component of the Class A-M Certificates), and not by the Class III-A-1 Certificates, for so long as the Component Principal Balance of the Group III Component of the Class A-M Certificates is greater than zero, and (d) the principal portion of Realized Losses (other than Excess Losses) on the Mortgage Loans allocable to the Class IV-A-1 Certificates will instead be borne first by the Group IV Component of the Class A-M Certificates until its Component Principal Balance is reduced to zero (in addition to other Realized Losses allocable to the Group IV Component of the Class A-M Certificates), and not by the Class IV-A-1 Certificates, for so long as the Component Principal Balance of the Group IV Component of the Class A-M Certificates is greater than zero. (c) Notwithstanding the foregoing clause (b), no such allocation of With respect to any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect the principal portion of any Excess Loss with respect to all distributions and prior allocations a Mortgage Pool (other than Excess Bankruptcy Losses attributable to Debt Service Reductions) shall be allocated pro rata to each Class of Realized Losses Certificates or Components (in the case of the Class A-M Certificates) of the related Certificate Group based on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled their respective Class Certificate Balances or Component Principal Balance of all (in the case of the Mortgage Loans as Class A-M Certificates), each in the case of the first day Senior Certificates, or Apportioned Principal Balances, in the case of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation")Subordinated Certificates. (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates or Component (other than in the Interest Only case of the Class A-M Certificates) pursuant to Section 4.4(b) or (c) shall be allocated among the Certificates of such Class or Component (other than in the Interest Only case of the Class A-M Certificates) in proportion to their respective Current Certificate Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans Balances or Component Principal Balances (in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate case of the other Certificate Groups, pro rata, based upon their respective Current Principal AmountsClass A-M Certificates). The principal portion of any Any allocation of Realized Losses on the Mortgage Loans pursuant to this paragraph (d) shall be accomplished by reducing the Current Certificate Principal Amount Balances or Component Principal Balance (in the case of the Class A-M Certificates) of the related Certificates on the related Distribution DateDate in accordance with Section 4.4(e). (e) Realized Losses on the Mortgage Loans allocated in accordance with this Section 4.4 shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to the distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator Master Servicer shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Subordinated Certificate Writedown Amount, if any. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Subordinated Certificate Writedown Amount shall effect effect, without duplication of any other provision in this Section 4.4 that provides for a reduction in the Class Certificate Balance of the Subordinated Certificates, a corresponding reduction in the Current Principal Amount Class Certificate Balance of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Subordinated Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to a Class of Certificates or a Component (in the case of the Class A-M Certificates) to the extent that such allocation would result in the reduction of the aggregate Class Certificate Balances and Component Principal Balances (in the case of the Class A-M Certificates) of all the Senior Certificates of a related Certificate Group as of such Distribution Date plus the Apportioned Principal Balances of the Subordinated Certificates of such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on such date, to an amount less than the aggregate Stated Principal Balance of the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence related Mortgage Pool as of such Net Interest Shortfalls for the first day of the month of such Distribution Date. The interest portion of , less any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans Deficient Valuations occurring on or prior to the Cross-Over Bankruptcy Coverage Termination Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, (such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicerlimitation, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii“Loss Allocation Limitation”). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month, based on information provided by the related Servicer. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: firstFIRST, to the Class B-12 Certificates until the Current Principal Amount thereof has been reduced to zero; SECOND, to the Class B-11 Certificates until the Current Principal Amount thereof has been reduced to zero; THIRD, to the Class B-10 Certificates until the Current Principal Amount thereof has been reduced to zero; FOURTH, to the Class B-9 Certificates until the Current Principal Amount thereof has been reduced to zero; FIFTH, to the Class B-8 Certificates until the Current Principal Amount thereof has been reduced to zero; SIXTH, to the Class B-7 Certificates until the Current Principal Amount thereof has been reduced to zero; SEVENTH, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; secondEIGHTH, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; thirdNINTH, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourthTENTH, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifthELEVENTH, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixthTWELVTH, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventhTHIRTEENTH, if such loss is on (w) a Group I Mortgage Loan, to the Class M I-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; (x) a Group II Mortgage Loan, to the Class II-A-1, Class II-A-2, Class II-A-3 Certificates, on a pro rata basis, until the Current Principal Amounts thereof have been reduced to zero; (y) a Group III Mortgage Loan, to the Class III-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; or (z) a Group IV Mortgage Loan, to the Class IV-A-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and eighthFOURTEENTH, to each Class of the Senior Certificates (other than the Interest Only Certificates and the Class R Certificates) in the related Certificate Group), on a pro rata based upon their respective Current Principal Amountsbasis. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts Amount of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, designations and (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), in accordance with priorities set forth in clause (b) above, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates Certificates, in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Senior Certificates and in the Class A-1B Certificates, to Component 1X manner described in the first sentence of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, this clause (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofg). (h) In addition, in the event that the Paying Agent Master Servicer receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent Master Servicer shall deposit such funds into the Distribution Master Servicer Collection Account pursuant to Section 4.01(c)(ii)4.02. If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to this Section 6.02. The amount of any remaining Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments payment in respect of Accrued Certificate Interest current interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan shall be allocated as follows: first, to the Class B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and seventh, to the Class M A-3 Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group), on a pro rata based upon their respective basis until the Current Principal AmountsAmounts thereof have been reduced to zero. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator Trustee shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Current Principal Amounts of the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans Shortfall will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls Shortfall for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B related Senior Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (b) With REALIZED LOSSES ON THE GROUP I MORTGAGE LOANS. Realized Losses with respect to any Certificates a Group I Mortgage Loan will be allocated on a pro rata basis between the applicable PO Percentage of the Scheduled Principal Balance of such Mortgage Loan and the applicable Non-PO Percentage of such Scheduled Principal Balance. (other than the Interest Only Certificatesi) on any On each Distribution Date, the applicable PO Percentage of the principal portion of each any Realized Loss on a Discount Mortgage Loan and any Class I-PO Certificate Cash Shortfall shall be allocated to the Class I-PO Certificates until the Current Principal Amount thereof has been reduced to zero. (ii) On each Distribution Date, the applicable Non-PO Percentage of the principal portion of any Realized Loss on a Group I Mortgage Loan shall be allocated as follows: first, to the Class B-6 I-B6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class B-5 I-B5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 I-B4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 I-B3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 I-B2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 I-B1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, (x) if such loss is on a Group I-1 Mortgage Loan, to the Class M I-F1 Certificates and (y) if such loss is on a Group I-2 Mortgage Loan, to the Class I-F2 Certificates, in each case until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Group I Senior Certificates (other than the Interest Only Certificates) in the related Certificate Group, pro rata based upon their respective Current Principal Amounts. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofbasis. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate Certificates, beginning with the Class of Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to each Determination Date, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred during the immediately preceding calendar month. (bi) With respect to any Group I Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Group I Mortgage Loan shall be allocated as follows: first, to the Class I-B-6 Certificates until the Current Principal Amount thereof has been reduced to zero; second, to the Class I-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class I-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class I-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class I-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class I-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class I-M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, if such loss is on (x) a Loan Subgroup I-1 Mortgage Loan, to the Class I-A-1 Certificates, and (y) a Loan Subgroup I-2 Mortgage Loan, to the Class I-A-1 Certificates, in each case until the respective current Principal Amount thereof is reduced to zero. (ii) With respect to any Group II Certificates on any Distribution Date, the principal portion of each Realized Loss on a Group II Mortgage Loan shall be allocated as follows: first, to the Class of II-B-6 Certificates until the Senior Current Principal Amount thereof has been reduced to zero; second, to the Class II-B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class II-B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class II-B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class II-B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class II-B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; and seventh, if such loss is on (other than x) a Loan Subgroup II-1 Mortgage Loan, to the Interest Only Class II-A-1 Certificates, (y) a Loan Subgroup II-2 Mortgage Loan, to the Class II-A-2 Certificates, and (z) a Loan Subgroup II-3 Mortgage Loan, to the Class II-A-3 Certificates, in each case until the related Certificate Group, pro rata based upon their respective Current Principal AmountsAmount thereof has been reduced to zero. (c) Notwithstanding the foregoing clause (b), no such allocation of any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates the Classes of such Certificate Group or Certificate Subgroup, as the case may be, as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, allocable to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group or Certificate Subgroup, as of such Distribution Datethe case may be, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such the related Loan Group or Loan Subgroup, as the case may be, as of the first day of the month of such Distribution related Due Date (each such limitation in clause (i) and (ii)limitation, the "Loss Allocation Limitation"). (d) The principal portion of any Any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than the Interest Only Certificates) shall be allocated among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, the principal portion of Realized Losses on the Mortgage Loans in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates pursuant to Section 6.02(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any Any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of the related Certificates on the related Distribution Date. (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Administrator shall determine and notify the Paying Agent of the Group I Senior Mezzanine Certificate Writedown Amount, the Group I Subordinate Certificate Writedown Amount and the Group II Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Group I Subordinate Certificate Writedown Amount, if prior to the Cross-Over DateDate relating to the related Group I Certificates, the Group I Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Group II Subordinate Certificate Writedown Amount, if prior to the Cross-Over Date relating to the Group II Certificates, the Group II Subordinate Certificates, in the reverse order of their numerical Class designations, (iii) with respect to the Group I Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over DateDate relating to the Group I Certificates, the Group I Senior Mezzanine Certificates and Certificates, (iiiiv) from and after the Cross-Over DateDate relating to the Group I Certificates, the related Class of Group I Senior Certificates Certificates, and (other than v) from and after the Interest Only Cross-Over Date relating to the Group II Certificates), the related Class of Group II Senior Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates (other than the Residual Certificate) in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses with respect to the Group I Mortgage Loans, Loans or the Group II Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date with respect to the related Certificate Group will not be allocated among any Certificates, but will reduce the amount of Group I Available Funds, Funds or the Group II Available Funds or Group III Available Funds, respectivelyas the case may be, on the related Distribution Date. As a result of the subordination of the Group I Senior Mezzanine Certificates and Group I Subordinate Certificates in right of distribution, such Realized Losses on the Group I Mortgage Loans will be borne first by the Group I Subordinate Certificates in inverse order of their numerical Class designations, and then by the Group I Senior Mezzanine Certificates. As a result of the subordination of the Group II Subordinate Certificates in right of distribution, such Realized Losses on the Group II Mortgage Loans will be borne first by the Group II Subordinate Certificates in inverse order of their numerical Class designation. Following the Cross-Over DateDate with respect to the Group I Certificates, (A) the interest portion of Realized Losses on the Group I Loan Subgroup I-1 Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B I-A-1 Certificates, to Component 1X of the Class I-X Certificates and to Component 3X 2X of the Class I-X Certificates to the extent of the Group I Subgroup I-1 Allocation Fraction thereof, (B) thereof and the interest portion of Realized Losses on the Group II Loan Subgroup I-2 Mortgage Loans will be allocated on a pro rata basis to the Class I-A-2 Certificates, Certificates and to Component 2X of the Class X Certificates and to Component 3X of the Class I-X Certificates to the extent of the Group II Subgroup I-2 Allocation Fraction thereof. Following the Cross-Over Date with respect to the Group II Certificates, and (C) the interest portion of Realized Losses on the Group III Loan Subgroup II-1, II-2 and II-3 Mortgage Loans Loans, as the case may be, will be allocated on a pro rata basis to the Class II-A-1, Class II-A-2 and Class II-A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereofCertificates, respectively. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage LoansRecoveries, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of related Subordinate Certificates with the highest payment priority, priority to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans 101 following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the related Subordinate Certificates, beginning with the Class of related Subordinate Certificates with the next highest payment priority, up to the amount of such Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to such Class or Classes of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Current Principal Amount of each Senior Mezzanine Certificate, and to the Current Principal Amount of each Subordinate Certificate of such Class, Class in accordance with its respective Fractional Undivided Interest.

Allocation of Losses. (a) On or prior to Realized Losses on the Mortgage Loans in each Determination Dateof Loan Group 1, the Master Servicer shall determine the amount of any Realized Loss in respect of each Mortgage Loan that occurred Group 2, Loan Group 3, Loan Group 4, Loan Group 5 and Loan Group 6 incurred during the immediately preceding a calendar month. (b) With respect to any Certificates (other than the Interest Only Certificates) on any Distribution Date, the principal portion of each Realized Loss on a Mortgage Loan month shall be allocated by the Trust Administrator to the Classes of Certificates on the Distribution Date in the next calendar month as follows: : (i) any Realized Loss, other than an Excess Loss, shall be allocated first, to the Class B-6 Certificates C-B Certificates, in decreasing order of their alphanumerical Class designations (beginning with the Class C-B-7 Certificates), until the Current respective Class Principal Amount Balance of each such Class is reduced to zero, and second, to the Senior Certificates of the related Certificate Group, pro rata, on the basis of their respective Class Principal Balances, until the respective Class Principal Balance of each such Class is reduced to zero; provided, however, that with respect to the Group 6 Certificates, Realized Losses on the Mortgage Loans in Loan Group 6 that would otherwise be allocated to the Class 6-A-2-1 and Class 6-A-2-2 Certificates shall instead be allocated first, to the Class 6-A-2-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, and second, to the Class 6-A-2-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; secondand (ii) Excess Losses in respect of principal for Mortgage Loans in Loan Group 1, to the Loan Group 2, Loan Group 3, Loan Group 4, Loan Group 5 and Loan Group 6 will be allocated among all Group 1, Group 2, Group 3, Group 4, Group 5, Group 6 and Class B-5 Certificates until the Current Principal Amount thereof has been reduced to zero; third, to the Class B-4 Certificates until the Current Principal Amount thereof has been reduced to zero; fourth, to the Class B-3 Certificates until the Current Principal Amount thereof has been reduced to zero; fifth, to the Class B-2 Certificates until the Current Principal Amount thereof has been reduced to zero; sixth, to the Class B-1 Certificates until the Current Principal Amount thereof has been reduced to zero; seventh, to the Class M Certificates until the Current Principal Amount thereof has been reduced to zero; and eighth, to each Class of the Senior Certificates (other than the Interest Only C-B Certificates) in the related Certificate Group, pro rata based upon on their respective Current Class Principal AmountsBalances. (b) On each Distribution Date, if the aggregate Class Principal Balance of all Group 1, Group 2, Group 3, Group 4, Group 5, Group 6 and Class C-B Certificates exceeds the Aggregate Groups 1-6 Collateral Balance (after giving effect to distributions of principal and the allocation of all losses to such Certificates on such Distribution Date), such excess will be deemed a principal loss and will be allocated by the Trust Administrator to the most junior Class of Class C-B Certificates then outstanding. (c) Notwithstanding the foregoing clause (b), no such allocation of any Any Realized Loss on the Mortgage Loans shall be made on a Distribution Date to (i) the Senior Mezzanine Certificates or any Class or Classes of Subordinate Certificates to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date and (ii) Senior Certificates in a Certificate Group to the extent that such allocation would result in the reduction of the aggregate Current Principal Amounts of all the Certificates in such Certificate Group as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans in the related Loan Group on such date, to an amount less than the aggregate Scheduled Principal Balance of all of the Mortgage Loans in such Loan Group as of the first day of the month of such Distribution Date (each such limitation in clause (i) and (ii), the "Loss Allocation Limitation"). (d) The principal portion of any Realized Losses on the Mortgage Loans allocated to a Class of Certificates (other than or any reduction in the Interest Only CertificatesClass Principal Balance of a Class of Certificates pursuant to Section 4.02(A)(b) shall be allocated by the Trust Administrator among the Certificates of such Class (other than the Interest Only Certificates) in proportion to their respective Current Principal Amounts. Once a Certificate Group been reduced to zero, Balances. (d) Any allocation by the principal portion Trust Administrator of Realized Losses on the Mortgage Loans to a Certificate or any reduction in the related Certificate Group (if any) that are not allocated to the Senior Mezzanine Certificates or the Subordinate Certificates Balance of a Certificate pursuant to Section 6.02(b4.02(A)(b) will be allocated to the Senior Certificate of the other Certificate Groups, pro rata, based upon their respective Current Principal Amounts. The principal portion of any allocation of Realized Losses on the Mortgage Loans shall be accomplished by reducing the Current Principal Amount of Certificate Balance thereof, immediately following the related Certificates distributions made on the related Distribution DateDate in accordance with the definition of “Certificate Balance.” (e) Realized Losses on the Mortgage Loans shall be allocated on the Distribution Date in the month following the month in which such loss was incurred and, in the case of the principal portion thereof, after giving effect to distributions made on such Distribution Date. (f) On each Distribution Date, the Securities Trust Administrator shall determine and notify the Paying Agent of the Senior Mezzanine Certificate Writedown total Applied Loss Amount and the Subordinate Certificate Writedown Amount. Any such Senior Mezzanine Certificate Writedown Amount or Subordinate Certificate Writedown Amount shall effect a corresponding reduction in the Current Principal Amount of (i) with respect to the Subordinate Certificate Writedown AmountGroup 7 Certificates, if prior to the Cross-Over Dateany, the Subordinate Certificates, in the reverse order of their numerical Class designations, (ii) with respect to the Senior Mezzanine Certificate Writedown Amount, if prior to the Cross-Over Date, the Senior Mezzanine Certificates and (iii) from and after the Cross-Over Date, the Senior Certificates (other than the Interest Only Certificates), which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (g) Any Net Interest Shortfalls on the Mortgage Loans will be allocated among the Classes of Certificates in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfalls for such Distribution Date. The interest portion of any Realized Losses Applied Loss Amount with respect to the Group I Mortgage Loans, 7 Certificates for any Distribution Date shall be applied by reducing the Class Principal Balance of each Class of Group II 7 Subordinate Certificates and with respect to the Group 7B Mortgage Loans or Group III Mortgage Loans occurring on or prior to the Cross-Over Date will not be allocated among any Certificatesonly, but will reduce the amount of Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, on the related Distribution Date. As a result of the subordination of the Senior Mezzanine Certificates and Subordinate Certificates in right of distribution, such Realized Losses on the Mortgage Loans will be borne first by the Subordinate Certificates in inverse order of their numerical Class designations, and then by the Senior Mezzanine Certificates. Following the Cross-Over Date, (A) the interest portion of Realized Losses on the Group I Mortgage Loans will be allocated on a pro rata basis to the Class A-1A Certificates and the Class A-1B Certificates, to Component 1X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group I Allocation Fraction thereof, (B) the interest portion of Realized Losses on the Group II Mortgage Loans will be allocated on a pro rata basis to the Class A-2 Certificates, to Component 2X of the Class X Certificates and to Component 3X of the Class X Certificates to the extent of the Group II Allocation Fraction thereof, and (C) the interest portion of Realized Losses on the Group III Mortgage Loans will be allocated on a pro rata basis to the Class A-3 Certificates and to Component 3X of the Class X Certificates to the extent of the Group III Allocation Fraction thereof. (h) In addition, in the event that the Paying Agent receives any Subsequent Recoveries on the Mortgage Loans from a Servicer, the Paying Agent shall deposit such funds into the Distribution Account pursuant to Section 4.01(c)(ii). If, after taking into account such Subsequent Recoveries on the Mortgage Loans, the amount of a Realized Loss on a Mortgage Loan is reduced, the amount of such Subsequent Recoveries will be applied to increase the Current Principal Amount of the Senior Mezzanine Certificates, and thereafter to increase the Current Principal Amount of the Class or Classes of Subordinate Certificates with the highest payment priority, to which Realized Losses on the Mortgage Loans have been allocated, but not by more than the amount of Realized Losses on the Mortgage Loans previously allocated to the Senior Mezzanine Certificates or to that Class or Classes of Subordinate Certificates pursuant to Section 6.02. The amount of any Subsequent Recoveries on the Mortgage Loans following the application set forth in the immediately preceding sentence will be applied to sequentially increase the Current Principal Amount of the Subordinate 7-A-4 Certificates, beginning with the Class of Group 7 Subordinate Certificates Certificates, other than the Class 7-X Certificates, or with respect to the Group 7B Mortgage Loans only, to Class 7-A-4 Certificates, then outstanding with the next highest lowest relative payment priority, up in each case until the respective Class Principal Balance thereof is reduced to zero. Any Applied Loss Amount with respect to the amount Group 7 Certificates allocated to a Class of Group 7 Subordinate Certificates or the Class 7-A-4 Certificates shall be allocated among the Group 7 Subordinate Certificates of such Class or the Class 7-A-4 Certificates, as applicable, in proportion to their respective Percentage Interests. (f) All Realized Losses on the Group 1, Group 2, Group 3, Group 4, Group 5 and Group 6 Mortgage Loans previously shall be allocated on each Distribution Date to the REMIC I Regular Interests and REMIC III Regular Interests as provided in the definitions of REMIC I Realized Losses and REMIC III Realized Losses. (g) All Realized Losses on the Group 7 Mortgage Loans shall be allocated on each Distribution Date to the REMIC II Regular Interests and REMIC III Regular Interests as provided in the definitions of REMIC II Realized Losses and REMIC III Realized Losses. (h) Realized Losses on the Group 7 Mortgage Loans that are not Applied Loss Amounts shall be deemed allocated to the Senior Mezzanine Class 7-X Certificates. Realized Losses allocated to the Class 7-X Certificates or to such Class or Classes shall, be allocated between the REMIC IV Regular Interests 7-X-IO and 7-X-PO as provided in the definition of Certificates pursuant to this Section 6.02. Holders of such Certificates will not be entitled to any payments in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases Realized Losses. (i) Realized Losses shall be applied allocated among the REMIC I, REMIC II, REMIC III and REMIC IV Regular Interests as specified in the definition of Realized Losses and, as to the Current Principal Amount of each Senior Mezzanine CertificateREMIC I, REMIC II and to the Current Principal Amount of each Subordinate Certificate of such ClassREMIC III Regular Interests, in accordance with its respective Fractional Undivided Interestthe definitions of REMIC I Realized Losses, REMIC II Realized Losses and REMIC III Realized Losses, respectively.