Common use of Allocation of Realized Losses Clause in Contracts

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Securities Administrator shall aggregate the loan-level information provided by the Master Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Certificate Principal Balance of each such Class is reduced to zero; and (A) with respect such losses related to Loan Group 1 Mortgage Loans, and second to the Senior Class A-1A, Class A-1B and Class A-R Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) X-2 PO-1 Component, pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Certificate Principal Balance or Component Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) the Class A-1B Certificates will bear the principal portion of all realized losses allocable to the Class 1-A-1 CertificatesA-1A Certificates for so long as the Class A-1B Certificates are outstanding; (B) with respect such losses related to Loan Group 2 Mortgage Loans, under this paragraphto the Class A-2A and Class A-2B Certificates and the X-2 PO-2 Component, will instead be allocated to Component 1-A-5-1 pro rata, until the Class Certificate Principal Balance or Component Principal Balance of such Class or Component 1-A-5-1 has been is reduced to zero; provided, (B) however, the Class A-2B Certificates will bear the principal portion of all realized losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to A-2A Certificates for so long as the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal BalancesA-2B Certificates are outstanding; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (bc) The Class Certificate Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the allocation related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such total Distribution Date occurs. The amount as set forth below. of each Realized Loss shall be evidenced by an Officers' Certificate. (i) All Realized Losses occurring on the Mortgage Group I Loans shall be allocated as follows: (i1) first, to Excess Cash Flow in the applicable PO Percentage amounts and priority as provided in Section 4.02; (2) second, in reduction of the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO CertificatesGroup I Overcollateralization Amount, until the Class Principal Balance of the Class PO Certificates is such amount has been reduced to zero; and (ii3) the applicable Non-PO Percentage (with respect to Collateral Group 1 third, on any Distribution Date on which, and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with extent that, the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class aggregate Certificate Principal Balance of each the Class A Certificates and Class M Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, to the Class is M-I Certificates and Class A-I Certificates in the following order: (A) first, to the Class M-I-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (B) second, and second to the Senior Certificates (or in the case of the Class 1M-A-5 I-2 Certificates, until the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal BalancesBalance thereof has been reduced to zero; (C) after third, to the Class M-I-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; and (D) fourth, to the Class A-I Certificates on a pro rata basis, based on their then outstanding Certificate Principal Balances prior to giving effect to distributions of principal to be made on such Distribution Date Date, until the Class aggregate Certificate Principal Balance of each such Class has been reduced to zero or zero. (ii) All Realized Losses on the Group II Loans shall be allocated as follows: (1) first, to Excess Cash Flow as provided in Section 4.02; (2) second, in reduction of the Group II Overcollateralization Amount, until such amount has been reduced to zero; and (3) third, on any Distribution Date on which, and to the extent that, the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, to the Class M-II Certificates and Class A-II Certificates in the following order: (A) first, to the Class M-II-3 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (B) second, to the Class M-II-2 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; (C) third, to the Class M-II-1 Certificates, until the aggregate Certificate Principal Balance thereof has been reduced to zero; and (D) fourth, to the Class A-II-A Certificates, Realized Losses on the Group II-A Loans and to all of the Class A-II-B Certificates on a pro rata basis, Realized Losses on the Group II-B Loans, in each case until the aggregate Certificate Principal Balance of each such Component Class has been reduced to zero, as applicable; provided, however, that . (Ab) the losses allocable If a Loan Group is undercollateralized due to the application of Section 4.05(a)(i)(3) or (a)(ii)(3) above and the aggregate Certificate Principal Balance of the Class 1-A-1 CertificatesA Certificates and Class M Certificates exceeds the aggregate Stated Principal Balance of the Mortgage Loans after application of all payments to be made on such Distribution Date pursuant to Section 4.02, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Outstanding Class of Class PO Certificates); A Certificates and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect M Certificates with the lowest priority in that undercollateralized Loan Group will be reduced to distributions of principal on such Distribution Date (except, in the case of extent necessary to make the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class aggregate Certificate Principal Balance of the Class of Subordinate A Certificates then outstanding with the highest numerical and Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO M Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant equal to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate Stated Principal Balance of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to a Certificate the Class A Certificates or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above Class M Certificates shall be accomplished made by reducing the Certificate Principal Balance of thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” hereinDate; provided provided, that no Realized Loss with respect to any Collateral Group such reduction shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all the Certificates below the aggregate Stated Principal Balance of the Senior Certificates Mortgage Loans. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) shall be made by operation of the Interest Only and definition of "Accrued Certificate Interest" for each Class PO Certificatesfor such Distribution Date. Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the priority of payment provisions of Section 4.02(c) and Subordinate (d). Allocations of the principal portion of Debt Service Reductions shall be made by operation of the priority of payment provisions of Section 4.02(c) and (d). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”)Interests evidenced thereby. (d) Prior All Realized Losses on the Group I Loans shall be allocated on each Distribution Date to the Cross-Over Date, with respect to any Non-PO Recoveries received during REMIC I Regular Interests and REMIC III Regular Interests as provided in the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance definitions of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had REMIC I Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered REMIC III Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii)Losses. (e) With respect to any All Realized Losses on the Group II Loans shall be allocated on each Distribution Date on 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. (f) Realized Losses allocated to the Group I Excess Cash Flow, Group II Excess Cash Flow, Group I Overcollateralization Amount or after the Cross-Over DateGroup II Overcollateralization Amount pursuant to paragraphs (a) or (b) of this section, the Trust Administrator definition of Accrued Certificate Interest and the operation of Section 4.02(c) and (d) shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) be deemed allocated to the Class PO SB Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) . Realized Losses allocated to the Classes of Senior Class SB Certificates shall, to the extent such Realized Losses represent Realized Losses on an interest portion, be allocated to the REMIC III Regular Interest SB-IO. Realized Losses allocated to the Excess Cash Flow pursuant to paragraph (other than a) shall be deemed to reduce Accrued Certificate Interest on the Class PO Certificates and REMIC III Regular Interest Only CertificatesSB-IO. Realized Losses allocated to the Overcollateralization Amount pursuant to paragraph (a) shall be deemed first to reduce the principal balance of the Certificate Group corresponding REMIC III Regular Interest SB-PO until such principal balance shall have been reduced to zero and thereafter to reduce accrued and unpaid interest on the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such ClassREMIC III Regular Interest SB-IO.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the principal portion related Applicable Fraction) of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class 30-PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan in any Collateral Group 1 or Collateral Group 3, or the Class 15-PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan in any Collateral Group 4, in each case, until the Class Principal Balance of the such Class of Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and zero, (D) the losses allocable to the Class 1-A-4 A-2 Certificates, under this paragraph, will instead be allocated to Component the Class 1-A-5-4 A-14 Certificates until the Certificate Principal Balance of Component the Class 1-A-5-4 A-14 Certificates has been reduced to zero zero, (E) the losses allocable to the Class 1-A-6 Certificates, under this paragraph, will instead be allocated to the Class 1-A-7 Certificates until the Certificate Principal Balance of the Class 1-A-7 Certificates has been reduced to zero, (F) the losses allocable to the Class 1-A-11 Certificates, under this paragraph, will instead be allocated to the Class 1-A-12 Certificates until the Certificate Principal Balance of the Class 1-A-12 Certificates has been reduced to zero, and (G) the losses allocable to the Class 3-A-1 Certificates, under this paragraph, will instead be allocated to the Class 3-A-2 Certificates until the Certificate Principal Balance of the Class 3-A-2 Certificates has been reduced to zero; provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 2 and Component 1-A-5-43, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and Loan, (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan, (3) the Group 3 Certificates, in the case of an Excess Loss on a Group 3 Mortgage Loan and (4) the Group 4 Certificates, in the case of an Excess Loss on a Group 4 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class 15-PO in respect of any PO Deferred Amounts for Collateral Group 4, and the amount of any payments on the Class 30-PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 and Collateral Group 3 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 1, Group 2, Group 3 and Group 2 4 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates (other than the Class 1-A-5 Certificates) and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates and the Class 1-A-5 Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii4.03(d)(ii)(A). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) (A) to the Class 15-PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 14 and (B) to the Class 30-PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1 and Collateral Group 3; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior With respect to each any Distribution Date, the Master Servicer shall determine the total amount principal portion of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses (other than Debt Service Reductions) occurring on the with respect to Group I Mortgage Loans shall and Group II Mortgage Loans will be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, B-6 Certificates until the Class B-6 Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero; second, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 B-5 Certificates until the Certificate Class B-5 Principal Balance of Component 1-A-5-1 has been reduced to zero; third, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 B-4 Certificates until the Certificate Class B-4 Principal Balance of Component 1-A-5-2 has been reduced to zero; fourth, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 B-3 Certificates until the Certificate Class B-3 Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable zero; fifth, to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 B-2 Certificates until the Certificate Class B-2 Principal Balance of Component 1-A-5-4 has been reduced to zero providedzero; sixth, further, that any Realized Loss allocated to the Class 1-A-5 CertificatesB-1 Certificates until the Class B-1 Principal Balance has been reduced to zero; and seventh, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iiii) the applicable Non-PO Percentage (and with respect to Collateral such losses occurring with respect to Group 1 and Collateral Group 2I Mortgage Loans, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) to the Group 1 I-A Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (Bii) each Class with respect to such losses occurring with respect to Group II Mortgage Loans, to the Group II-A Certificates. This allocation of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in Realized Losses will be effected through the case reduction of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class applicable Class's Principal Balances)); andBalance. (b) The Class Principal Balance of the Any Realized Losses allocated to a Class of Subordinate Class A Certificates then outstanding with the highest numerical or Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO B Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority thirdshall be allocated among the Certificates of such Class based on their Percentage Interests. (c) With respect to any Distribution Date, sub-clause (ii) the interest portion of Realized Losses occurring with respect to Group I Mortgage Loans and (ii) Group II Mortgage Loans will be allocated after the amount, if any, by which Subordination Depletion Date among the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 I-A and Group 2 Certificates (other than the II-A Certificates, respectively, based on their Group I-A Interest Only Percentage and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the II-A Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”)Percentage. (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, allocated in accordance with this Section 4.02 will be increased, allocated as follows: : (i) firstLiquidated Loan Losses on Liquidated Loans for which the Liquidation Proceeds were received during, up to the amount of the Nonand Bankruptcy Losses incurred in a period corresponding to, an Unscheduled Principal Receipt Period for Full Unscheduled Principal Receipts that is a Mid-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause Month Receipt Period will be allocated to increase on the Class Principal Balance of Determination Date in the Class 1month following the month in which such Mid-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component Month Receipt Period ended and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) secondLiquidated Loan Losses on Liquidated Loans for which the Liquidation Proceeds were received during, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i)and Bankruptcy Losses incurred in a period corresponding to, the Class an Unscheduled Principal Balance of each Class of Subordinate Certificates, in order of seniority, Receipt Period for Full Unscheduled Principal Receipts that is a Prior Month Receipt Period will be increased, by allocated on the amount of Determination Date in the excess, if any, of (x) unrecovered Realized Losses previously allocated to each second month following the month which is such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii)Prior Month Receipt Period. (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount principal portion of any Recovery on a Mortgage Loan received during the calendar month prior Realized Losses and recoveries attributable to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates previously allocated Realized Losses allocated pursuant to this Section 4.03(e4.02 will be allocated to each Uncertificated Lower-Tier Interest as provided in Section 4.01(a)(iii). (f) shall not reduce With respect to any Distribution Date, the Class Principal Balance interest portion of such ClassRealized Losses allocated pursuant to this Section 4.02 will be allocated to each Uncertificated Lower-Tier Interest as provided in Section 4.01(a)(iii).

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of (A) any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, zero and second (1) with respect to such losses occurring with respect to Group 1 Mortgage Loans, to the Senior Certificates (or in the case Classes of the Class 1-A-5 Group 1 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or zero; (2) with respect to such losses occurring with respect to Group 2 Mortgage Loans, to the aggregate Certificate Classes of Group 2 Certificates, pro rata, on the basis of their respective Class Principal Balances immediately prior to the related Distribution Date until the Class Principal Balance of each such Component Class has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) losses allocable to the Class PO 2-A-1 Certificates under this paragraph will instead be allocated to the Class 2-A-2 Certificates (in addition to other losses borne by such Certificates) until the Class Principal Balance of the Class 2-A-2 Certificates has been reduced to zero; and (3) with respect to such losses occurring with respect to Group 3 Mortgage Loans, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Group 3 Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, on the amount basis of the Recovery (with respect their respective Class Principal Balances immediately prior to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant Distribution Date until the Class Principal Balance of each such Class has been reduced to the preceding clause (i)zero; provided, however, that any distribution on or after the Cross-Over Date, the losses allocable to a the Class of 3-A-1 Certificates pursuant under this paragraph will instead be allocated to this Section 4.03(ethe Class 3-A-2 Certificates (in addition to other losses borne by such Certificates) shall not reduce until the Class Principal Balance of such Classthe Class 3-A-2 Certificates has been reduced to zero.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Trustee shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Certificate Principal Balance of each such Class is reduced to zero; and (A) with respect to such losses related to Loan Group 1 Mortgage Loans, and second to the Senior Certificates (or in the case of the Class 1-A-5 CertificatesA-1A, the Components thereof) of the related Certificate Group (not including the related Interest Only Class 1-A-1B and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the A-R Certificates and PO-1A and PO-2A Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date pro rata, until the Class Certificate Principal Balance or Component Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) the Class 1-A-1B Certificates will bear the principal portion of all realized losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component A-1A Certificates for so long as the Class 1-A-5A-1B Certificates are outstanding; and (B) with respect to such losses related to Loan Group 2 Mortgage Loans, to the Class 2-1 A-1A, Class 2-A-1B and Class 2-A-1C Certificates and PO-1B and PO-2B Components, pro rata, until the Class Certificate Principal Balance or Component Principal Balance of each such Class or Component 1-A-5-1 has been is reduced to zero; provided, (B) the however, that all losses allocable to the Class 12-A-2 CertificatesA-1A, under this paragraph, Class 2-A-1B and Class 2-A-1C Certificates will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable sequentially to the Class 12-A-3 CertificatesA-1C, under this paragraph, will instead be allocated to Component 1Class 2-A-5A-1B and Class 2-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 A-1A Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificatesthat order, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only for so long as such Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); andare outstanding. (bc) The Class Certificate Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth belowLosses, with respect to each related Distribution Date. Realized Losses occurring on the Mortgage Loans with respect to a Collateral Allocation Group and any Distribution Date shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, on a Discount Mortgage Loan shall be allocated to the Class PO Certificates, Certificates until the its Class Principal Certificate Balance of the Class PO Certificates is reduced to zero; and (ii) (A) (x) the applicable Non-PO Percentage (with respect to of the Applicable Fraction for Collateral Allocation Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an any Excess Loss) on the Mortgage Loans in Collateral Allocation Group 1 and (y) the Applicable Fraction for Collateral Allocation Group 2 of any Realized Loss (other than any Excess Loss) on the Mortgage Loans shall be allocated first to the Subordinate Subordinated Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Certificate Balance of each such Class is reduced to zero, and second to the Classes of Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Senior Certificate Group (not including the related Interest Only other than any Notional Amount Certificates and the Class PO Certificates) ), pro rata based upon on the basis of their respective Class Principal Balances (orCertificate Balances, with respect in each case immediately prior to the Componentsrelated Distribution Date, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the respective Class Principal Certificate Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, except that (Ax) the losses allocable any Realized Losses that would otherwise be allocated to the Class 1-A-1 Certificates, under this paragraph, Certificates will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 Certificates until the its Class Certificate Principal Balance of Component 1-A-5-4 has been is reduced to zero providedzero, further, that and (y) any Realized Loss Losses that would otherwise be allocated to the Class 12-A-1, Class 2-A-2 and Class 2-A-4 Certificates will be allocated to the Class 2-A-5 Certificates as follows: the first $3,773,000 of Realized Losses allocated to the Class 2-A-1 Certificates will be allocated to the Class 2-A-5 Certificates, other than in accordance with the preceding proviso, first $1,598,000 of Realized Losses allocated to the Class 2-A-2 Certificates will be allocated between Component 1to the Class 2-A-5A-5 Certificates and the first $232,000 of Realized Losses allocated to the Class 2-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall A-4 Certificates will be allocated among (A) (1) to the Group 1 Class 2-A-5 Certificates, in each case until the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Class Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 12-A-5 Certificates under this clause will be allocated is reduced to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.zero;

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated [reserved]; (ii) prior to the Class PO Certificates, related Cross-Over Date, (A) until the Class Principal Balance Balances of the Class PO C-B-6, Class C-B-5 and Class C-B-4 Certificates is have been reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) in Loan Group 1, Loan Group 2, Loan Group 3 or Loan Group 4 shall be allocated first to among the outstanding Classes of the Group C-B Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Group C-B Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero; and (B) once the Class Principal Balances of the Group C-B Subordinate Certificates have been reduced to zero, (1) any Realized Loss on a Group 1 Mortgage Loan will be allocated among the outstanding Classes of Group 30-B Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Group 30-B Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to (2) any Realized Loss on a Group 2 Mortgage Loan will be allocated among the Senior outstanding Classes of Group 15-B Subordinate Certificates in reverse order of their respective numerical Class designations (or in the case of beginning with the Class 1of Group 15-A-5 CertificatesB Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero and (2) any Realized Loss on a Group 3 or Group 4 Mortgage Loan will be allocated among the outstanding Classes of Group HY-B Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Group HY-B Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero; and (iii) On and after the related Cross-Over Date, any Realized Loss on a Mortgage Loan in any Loan Group will be allocated among the Components thereof) outstanding Classes of the related Senior Certificates, pro rata, based on Class Principal Balance of the Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the ComponentsMortgage Loan that incurred the Realized Loss, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, however that (A) the losses allocable any such Realized Loss incurred on a Group 4 Mortgage Loan will be allocated to the Class 14-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 A-2 Certificates until the Certificate Class Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 thereof has been reduced to zero and (D) the losses allocable then to the Class 14-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 A-1 Certificates until the Certificate Class Principal Balance of Component 1-A-5-4 thereof has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; andzero; (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) As of any Distribution Date on and after the Group 1 Certificates, in date on which the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective aggregate Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group C-B Subordinate Amount for Certificates have been reduced to zero, the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Group 15-B Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each such Distribution Date by the sum amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 2 Certificates (iafter giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Group 2 Mortgage Loans) exceeds the amount Group 2 Pool Principal Balance for the following Distribution Date, less any Deficient Valuations; (B) As of any payments Distribution Date on and after the date on which the aggregate Class Principal Balances of the Group C-B Subordinate Certificates have been reduced to zero, the Class PO Principal Balance of the Class of Group 30-B Subordinate Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) then outstanding with the highest numerical Class designation shall be reduced on each such Distribution Date by the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Group 1 Mortgage Loans) exceeds the Aggregate Group 1 Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before Valuations; (C) As of any Distribution Date on and after the Bankruptcy Loss Coverage Amount has date on which the aggregate Class Principal Balances of the Group C-B Subordinate Certificates have been reduced to zero zero, the Class Principal Balance of the Group HY-B Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each such Distribution Date by the amount, if any, by which the sum of the Class Principal Balances of all outstanding Classes of Group 3 and Group 4 Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the related Mortgage Loans) exceeds the Group 3 Pool Principal Balance and the Group 4 Pool Principal Balance, in the aggregate, for the following Distribution Date, less the PO Percentage any Deficient Valuations; and (D) As of any Discount Distribution Date on and after the date on which the aggregate Class Principal Balances of the Group C-B Subordinate Certificates have been reduced to zero, the Class Principal Balance of the Group C-B Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each such Distribution Date by the amount, if any, by which the sum of the Class Principal Balances of all outstanding Classes of Group 1, Group 2, Group 3 and Group 4 Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the related Mortgage Loans; and) exceeds the Group 1 Pool Principal Balance, Group 2 Pool Principal Balance, Group 3 Pool Principal Balance and Group 4 Pool Principal Balance, in the aggregate, for the following Distribution Date, less any Deficient Valuations; (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Certificate, pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that (A) no Realized Loss with respect to any Collateral Loan Group 1 shall be allocated to reduce the Certificate Principal Balance of a Senior any Class of Group 1 Certificates to the extent that such allocation would reduce the aggregate Certificate or a Component in any Certificate Principal Balance of the Group (other 1 Certificates as of such Distribution Date to an amount less than the Group 1 Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations, (B) no Realized Loss with respect to Loan Group 2 shall be allocated to reduce the Certificate Principal Balance of any Class PO Certificates) of Group 2 Certificates to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Group 2 Certificates (other as of such Distribution Date to an amount less than the Interest Only Group 2 Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations, (C) no Realized Loss with respect to Loan Group 3 shall be allocated to reduce the Certificate Principal Balance of the Class 3-A-1 Certificates to the extent that such allocation would reduce the Certificate Principal Balance of all the Class 3-A-1 Certificates as of such Distribution Date to an amount less than the Group 3 Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations), and (D) no Realized Loss with respect to Loan Group 4 shall be allocated to reduce the Certificate Principal Balance of any Class PO Certificates) and Subordinate of Group 4 Certificates to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Group 4 Certificates to an amount less than the Aggregate Group 4 Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (in each case, such limitation, the “Loss Allocation Limitation”). (d) Prior to the related Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period calendar month prior to a Distribution Date with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Loan Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Loan Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or ComponentClass, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, (A) up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of related Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (eiii) With respect to any Distribution Date on or after the related Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Loan Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i)remaining; provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e4.03(f) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses Losses, and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of Percentage, multiplied by the principal portion Applicable Fraction, of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2Percentage, multiplied by the related Applicable Fraction) of the principal portion , of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including other than the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 CertificatesA-8, Class 1-A-9 and Class 1-A-10 Certificates under this paragraph, paragraph will instead be allocated to Component Class 1-A-5-1 A-12 Certificates until the Certificate Principal Balance of Component the Class 1-A-5-1 A-12 Certificates has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion Fraction of any Excess Losses occurring on any Mortgage Loan in any either Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and contributing to Collateral Group 1, (2) the Group 2 Certificates, in the case of an Excess Loss on a Mortgage Loan contributing to Collateral Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (ix) the amount of any payments on the Class PO Certificates in respect of any Group 1 PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (iiy) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any either Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or ComponentClass, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, increased by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, an amount equal to the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) Fraction remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of (A) any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, zero and second (1) with respect to such losses occurring with respect to Group 1 Mortgage Loans, to the Senior Certificates (or in the case Classes of the Class 1-A-5 Group 1 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or zero; (2) with respect to such losses occurring with respect to Group 2 Mortgage Loans, to the aggregate Certificate Classes of Group 2 Certificates, pro rata, on the basis of their respective Class Principal Balances immediately prior to the related Distribution Date until the Class Principal Balance of each such Component Class has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) losses allocable to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) 2-A-1 Certificates under this paragraph will instead be allocated to the Classes of Senior Class 2-A-2 Certificates (in addition to other than the Class PO Certificates and Interest Only losses borne by such Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce until the Class Principal Balance of the Class 2-A-2 Certificates has been reduced to zero; (3) with respect to such Classlosses occurring with respect to Group 3 Mortgage Loans, to the Class 3-A-1 Certificates; (4) with respect to such losses occurring with respect to Group 4 Mortgage Loans, to the Class 4-A-1 Certificates; (5) with respect to such losses occurring with respect to Group 5 Mortgage Loans, to the Class 5-A-1 Certificates; (6) with respect to such losses occurring with respect to Group 6 Mortgage Loans, to the Group 6 Certificates (not including the Interest-Only Certificates); (7) with respect to such losses occurring with respect to Group 7 Mortgage Loans, to the Class 7-A-1 Certificates; (8) with respect to such losses occurring with respect to Group 8 Mortgage Loans, to the Class 8-A-1 Certificates; and (9) with respect to such losses occurring with respect to Group 9 Mortgage Loans, to the Class 9-A-1 Certificates.

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of Realized Losses, including Excess Losses and with respect to the allocation of such total amount as set forth belowrelated Distribution Date. Realized Losses occurring on the Mortgage Loans with respect to any Distribution Date shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and[Reserved] (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Any Realized Loss with respect to any on the Mortgage Loans in a Loan (other than an Excess Loss) Group shall be allocated first (1) first, to the Subordinate related Subordinated Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Subordinated Certificates then outstanding in the related Certificate Group with the highest numerical Class designation) until the respective Class Certificate Balance or Component Principal Balance of each such Class is reduced to zero, and second (2) second, to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Senior Certificate Group (not including other than any Notional Amount Components), if applicable, pro rata, on the related Interest Only and the Class PO Certificates) pro rata based upon basis of their respective Class Principal Balances (orCertificate Balances, with respect in each case immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the respective Class Principal Certificate Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) any Realized Losses on the losses Group 1 Mortgage Loans that are otherwise allocable to the Class 1-A-1 Certificates, under this paragraph, Certificates will instead be allocated first to Component the Class 1-A-5-1 until the A-3 Certificates, its Class Certificate Principal Balance of Component 1-A-5-1 has been is reduced to zero, (B) the losses allocable and then to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the its Class Certificate Principal Balance of Component 1-A-5-2 has been is reduced to zero, (CB) any Realized Losses on the losses Group 1 Mortgage Loans that are otherwise allocable to the Class 1-A-2 Certificates will instead be allocated to the Class 1-A-3 Certificates, under this paragraphuntil its Class Certificate Balance is reduced to zero, (C) any Realized Losses on the Group 2 Mortgage Loans that are otherwise allocable to the Class 2-A-1 Certificates will instead be allocated first to the Class 2-A-2 Certificates, until its Class Certificate Balance is reduced to zero, and then to the Class 2-A-3 Certificates, until its Class Certificate Balance is reduced to zero, and (D) any Realized Losses on the Group 2 Mortgage Loans that are otherwise allocable to the Class 2-A-2 Certificates will instead be allocated to Component 1the Class 2-A-5-3 A-3 Certificates, until the its Class Certificate Principal Balance of Component 1-A-5-3 has been is reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); andzero. (b) The Class Principal Certificate Balance of the Class of Subordinate Subordinated Certificates in a Certificate Group then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances Certificate Balance in that Certificate Group of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool Stated Principal Balance for of the following related Loan Group as of the last day of the Prepayment Period related to such Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Balance of a Class of Certificates pursuant to Section 4.04(b) above shall be allocated among the Certificates of such Class in proportion to their respective Certificate Balances. (d) Any allocation of Realized Losses to a Certificate or a to any Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Certificate, pursuant to Section 4.03(a) or (b4.04(b) above shall be accomplished by reducing the Certificate Principal Balance, Component Balance of such Certificate or Component Subordinated Portion thereof, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “"Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce ," "Component Balance" or "Subordinated Portion," as the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”)case may be. (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth belowLosses, with respect to each related Distribution Date. Realized Losses occurring on the Mortgage Loans with respect to a Loan Group and any Distribution Date shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated to the related Class PO Certificates, Component until the Class Principal its Component Balance of the Class PO Certificates is reduced to zero; and (ii) (A) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an any Excess Loss) on the Mortgage Loans in a Loan Group in an Aggregate Loan Group shall be allocated first to the Subordinate related Classes of Subordinated Certificates in the related Subordinated Certificate Group in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Subordinated Certificates in such Subordinated Certificate Group then outstanding with the highest numerical Class designation) until the respective Class Principal Certificate Balance of each such Class is reduced to zero, and second to the related Classes of Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Senior Certificate Group (not including other than any Notional Amount Certificates and the related Interest Only and the Class PO Certificates) and Class A-X Component), pro rata based upon on the basis of their respective Class Principal Balances (orCertificate Balances, with respect in each case immediately prior to the Componentsrelated Distribution Date, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the respective Class Principal Certificate Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, except that (A) the losses allocable applicable Non-PO Percentage of any Realized Losses on the Group 1 Mortgage Loans that would otherwise be allocated to the Class 1-A-1 Certificates, under this paragraph, Certificates will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 Certificates until the its Class Certificate Principal Balance of Component 1-A-5-2 has been is reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Realized Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in Mortgage Loans that would otherwise be allocated to the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, Class 2-A-1 Certificates will instead be allocated to the related Interest Only Class 2-A-2 Certificates of such until its Class Certificate Group Balance is reduced to zero; and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their proapplicable Non-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided Group 3 Mortgage Loans that no Realized Loss with respect to any Collateral Group shall would otherwise be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) 3-A-1, Class 3-A-2 and Class 3-A-3 Certificates will instead be allocated to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 13-A-5 Certificates under this clause will be allocated until its Class Certificate Balance is reduced to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii)zero. (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of Realized Losses, including Excess Losses Losses, with respect to the related Distribution Date. For purposes of allocating losses to a Group of Subordinated Certificates, the related Class of Class M Certificates will be deemed to have a lower numerical class designation, and the allocation to be of such total amount as set forth belowa higher relative payment priority, than each other Class of Subordinated Certificates in that Loan Group. Realized Losses occurring on the Mortgage Loans with respect to any Distribution Date shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated to the Class PO CertificatesPO-1 Component, if such Realized Loss relates to a Loan Group 1 Mortgage Loan until the Class Principal Component Balance of thereof is reduced to zero, to the Class PO Certificates PO-2 Component, if such Realized Loss relates to a Loan Group 2 Mortgage Loan until the Component Balance thereof is reduced to zero and to the Class PO-3 Component, if such Realized Loss relates to a Loan Group 3 Mortgage Loan until the Component Balance thereof is reduced to zero; and (iiA) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate applicable Subordinated Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Subordinated Certificates in that Group then outstanding with the highest numerical Class designation) until the respective Class Principal Certificate Balance of each such Class is reduced to zero, and second to the related Senior Certificates (or in the case of the Class 1-A-5 other than any Notional Amount Certificates, the Components thereof) of if applicable, and the related Certificate Group (not including the related Interest Only and the Class PO Certificates) Component), pro rata based upon on the basis of their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable applicable Non-PO Percentage of any Realized Losses other than Excess Losses on the Mortgage Loans in Loan Group 1 that would otherwise be allocated to the Class 1-A-1 A-10 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 A-11 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the its Class Certificate Principal Balance of Component 1-A-5-2 has been is reduced to zero; and, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that in the case of any Realized Loss allocated Class of Accrual Certificates, on the basis of the lesser of their Class Certificate Balance and their initial Class Certificate Balance, in each case immediately prior to the related Distribution Date until the respective Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal BalancesBalance of each such Class is been reduced to zero; and (iiiB) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any the Mortgage Loans in a Loan in any Collateral Group shall be allocated among to the Classes of Certificates of the related Senior Certificate Group (A) (1) the Group 1 other than any Notional Certificates, if applicable, and the related Class PO Component) and the related Subordinated Certificates then outstanding, pro rata, on the basis of, with respect to such Senior Certificates, their respective Class Certificate Balances, or in the case of an any Class of Accrual Certificates, on the basis of the lesser of its Class Certificate Balance and its initial Class Certificate Balance, in each case immediately prior to the related Distribution Date and, with respect to each Class of Group C-B Certificates, the applicable Assumed Balance for each such Class relating to the Loan Group in which such Realized Loss occurs; provided, however, on any Distribution Date after a Senior Termination Date for Group 2 or Group 3 Certificates, such Excess Loss Losses on a the Mortgage Loans in the related Loan Group 1 Mortgage Loan will be allocated to the Group C-B Certificates on the basis of their respective Class Certificate Balances; and (2) provided further that after the Senior Credit Support Depletion Date, such Excess Losses shall be allocated to the Group 2 Certificatesand Group 3 Certificates (other than the related Class PO Components) regardless of Group on the basis of their respective initial Class Certificate Balances, or in the case of an Excess Loss any Class of Accrual Certificates, on a Group 2 Mortgage Loan (other thanthe basis of the lesser of its Class Certificate Balance and its initial Class Certificate Balance, in each case, case immediately prior to the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); andDate. (b) The Class Principal Certificate Balance of the Class of Subordinate Subordinated Certificates in the applicable Group then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any Class PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Certificate Balances of all outstanding Loan Group 2 and Loan Group 3 Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to and Class PO Deferred Amounts on the Discount Mortgage LoansLoans in the related Loan Group on such Distribution Date) exceeds the Aggregate Pool Stated Principal Balance for the applicable Loan Group or Loan Groups for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Balance of a Class of Certificates pursuant to Section 4.04(a) above shall be allocated among the Certificates of such Class in proportion to their respective Certificate Balances. (d) Any allocation of Realized Losses to a Certificate or a to any Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Certificate, pursuant to Section 4.03(a) or (b4.04(a) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component Balance thereof, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “"Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce " or "Component Balance," as the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”)case may be. (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of Realized LossesLosses with respect to the related Distribution Date. For purposes of allocating losses to the Subordinated Certificates, including Excess Losses the Class M-1 Certificates will be deemed to have a lower numerical Class designation, and the allocation to be of such total amount as set forth belowa higher relative payment priority, than any other Class of Subordinated Certificates. Realized Losses occurring on the Mortgage Loans with respect to any Distribution Date shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount a Mortgage Loan, including any Excess Loss, Loan in a Loan Group shall be allocated to the related Class PO CertificatesComponent, until the Class Principal Component Balance of the Class PO Certificates thereof is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Subordinated Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Certificate Balance of each such Class is reduced to zero, and second second, to the Class M-A Certificates, until its respective Class Certificate Balance, and third, to the Classes of Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only other than any Notional Amount Certificates and the Class PO Certificates) ), pro rata based upon on the basis of their respective Class Principal Certificate Balances (or, with respect in the case of any Class of Accrual Certificates or Accrual Component, on the basis of the lesser of their respective Class Certificate Balances or Component Balance, as applicable, and their respective initial Class Certificate Balances or Component Balance, as applicable, in each case immediately prior to the Componentsrelated Distribution Date, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the respective Class Principal Certificate Balance or Component Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (Ai) the losses allocable to Non-PO Percentage of any Realized Losses on the Class 1-A-1 Certificates, under this paragraph, will instead Mortgage Loans in Loan Group 1 that would otherwise be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates will instead be allocated, pro rata, to the Class 1-A-6 Certificates, under this paragraph, until its Class Certificate Balance is reduced to zero; and (ii) the Non-PO Percentage of any Realized Losses on the Mortgage Loans in Loan Group 2 that would otherwise be allocated to the Class 2-A-6 Certificates will instead be allocated to Component 1the Class 2-A-5-2 A-7 Certificates, until the its Class Certificate Principal Balance of Component 1-A-5-2 has been is reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and. (b) The Class Principal Certificate Balance of the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any Class PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Certificate Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loansand Class PO Deferred Amounts on such Distribution Date) exceeds the Aggregate Pool Stated Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any Realized Losses allocated to a Class of Certificates or any reduction in the Class Certificate Balance of a Class of Certificates pursuant to Section 4.04(a) above shall be allocated among the Certificates of such Class in proportion to their respective Certificate Balances. (d) Any allocation of Realized Losses to a Certificate or a to any Component or any reduction in the Certificate Principal Balance or Component Balance of a Certificate or a Component Component, pursuant to Section 4.03(a) or (b4.04(a) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component Balance thereof, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “"Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce " or "Component Balance," as the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”)case may be. (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or any Distribution Date, (x) the applicable AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loan in each Mortgage Pool will be allocated to the related Class of Principal Only Certificates until the Class Principal Amount thereof has been reduced to zero; and (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loan shall be allocated in the following order of priority: first, to the Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class B5 Certificates, until the Class Principal Amount thereof has been reduced to zero; third, to the Class B4 Certificates, until the Class Principal Amount thereof has been reduced to zero; fourth, to the Class B3 Certificates, until the Class Principal Amount thereof has been reduced to zero; fifth, to the Class B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and seventh, to the Classes of Senior Certificates of the related Certificated Group, pro rata, in accordance with their Class Principal Amounts; provided, that any such loss allocated to any Class of Accrual Certificates shall be allocated (subject to Section 5.03(c)) on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to each the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). (b) With respect to any Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Non-AP Percentage of the principal portion of any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the Subordinate Certificates (without regard to which Mortgage Pool experienced the loss) and the Group 1 Certificates and Group 2 Certificates (without regard to whether the Realized Loss was realized by Pool 1 or Pool 2) and on the basis of the Apportioned Principal Balances of the Classes of Subordinate Certificates and Class Principal Amounts of the Senior Certificates; provided, that any Discount Mortgage Loan, including such loss allocated to any Excess Loss, Class of Accrual Certificates (and any Accrual Component) shall be allocated (subject to Section 5.03(c)) on the Class PO Certificates, until basis of the lesser of (x) the Class Principal Balance of Amount thereof immediately prior to the applicable Distribution Date and (y) the Class PO Certificates is Principal Amount thereof on the Closing Date (as reduced to zero; and (ii) the by any Realized Losses previously allocated thereto). The applicable Non-PO AP Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall Loss in a Mortgage Pool will be allocated first applied to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the related Class of Subordinate Principal Only Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component Amount thereof has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any allocation of Realized Losses allocated to a Certificate or a Component or any reduction in the Certificate Principal Balance Class of a Certificate or a Component Certificates pursuant to Section 4.03(a5.03(a) or (b) above shall be allocated among the Certificates of such Class in proportion to their respective Certificate Principal Amounts. Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Balance Amount of such Certificate or Component immediately following the distributions made related Certificates on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”Section 5.03(d). (d) Prior Realized Losses allocated in accordance with this Section 5.03 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 Cross-Over Principal Only Certificates on such Distribution Date will be taken into account in determining distributions in respect of any related Class AP Deferred Amount for such date. (e) On each Distribution Date, with the Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Certificate Principal Amount of the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as a Realized Loss to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and Certificates, each outstanding Class to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the aggregate Certificate Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Balance Amount thereof) of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) firstsuch recovery, up to the amount of the Non-PO Recoveries portion of such Realized Loss previously allocated to such Class. In the event that the total amount of such recovery exceeds the amount of Realized Loss allocated to the outstanding Classes in accordance with respect to any Collateral Groupthe preceding provisions, the Class Principal Balance of each outstanding Class of Senior Certificates (other than shall be entitled to receive its pro rata share of the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance amount of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rataexcess, up to the amount of the excess, if any, of (x) any unrecovered Realized Losses Loss previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of . Any such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution recovery allocated to a Class of Certificates shall not further reduce the Certificate Principal Amount of such Certificate. Any such amounts not otherwise allocated to any Class of Certificates, pursuant to this Section 4.03(e) subsection shall not reduce the Class be treated as Principal Balance Prepayments for purposes of such Classthis Agreement.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan, in each case, until the Class Principal Balance of the such Class of Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 A-6 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1A-6-A-5-2 1 until the Certificate Principal Balance of Component 1-A-5A-6-2 1 has been reduced to zero, zero and (CB) the losses allocable to the Class 1-A-3 A-5 Certificates, under this paragraph, will instead be allocated to Component 1A-6-A-5-3 2 until the Certificate Principal Balance of Component 1A-6-A-5-3 2 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero zero; provided, further, that any Realized Loss allocated to the Class 1-A-5 A-6 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1A-6-A-5-1, 1 and Component 1-A-5A-6-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan Certificates (other than, in each case, than the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 Amounts, pursuant to Section 4.02(a) priority third, sub-clause (iii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates (other than the Class A-6 Certificates) and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Groupany, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates and the Class A-6 Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (iA) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1i; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received), pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated (a) to the Class 1-PO CertificatesCertificates in the case of a Realized Loss occurring on a Group 1 Mortgage Loan, (b) to the Class 2-PO Certificates in the case of a Realized Loss occurring on a Group 2 Mortgage Loan and (c) to the Class 3-PO Certificates in the case of a Realized Loss occurring on a Group 3 Mortgage Loan, in each case until the Class Principal Balance of the such Class PO Certificates is reduced to zero; and (ii) (A) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Junior Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Junior Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second (1) with respect to such losses occurring with respect to Group 1 Mortgage Loans, to the Senior Classes of Group 1 Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Principal Only Certificates and Interest Only and the Class PO Certificates) ), pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) that, after the Cross-Over Date, the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of long as the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated has not been reduced to increase zero; (2) with respect to such losses occurring with respect to Group 2 Mortgage Loans, to the Classes of Group 2 Certificates (not including the related Principal Only Certificates and Interest Only Certificates), pro rata on the basis of their respective Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up Balances immediately prior to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), Distribution Date until the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant has been reduced to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or zero; provided, however, that, after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) losses allocated to the Class PO 2-A-10 Certificates, under this paragraph, will instead be allocated to the PO PercentageClass 2-A-15 Certificates as long as the Class Principal Balance of the Class 2-A-15 Certificates has not been reduced to zero and after the Cross-Over Date, multiplied by the related Applicable Fractionlosses allocated to the Class 2-A-13 Certificates, under this paragraph, will instead be allocated to the Class 2-A-14 Certificates as long as the Class Principal Balance of any Recovery on any the Class 2-A-14 Certificates has not been reduced to zero; and (3) with respect to such losses occurring with respect to Group 3 Mortgage Loan in Collateral Group 1; and (ii) Loans, to the Classes of Senior Group 3 Certificates (other than not including the Class PO related Principal Only Certificates and Interest Only Certificates) ), pro rata on the basis of the Certificate Group corresponding their respective Class Principal Balances immediately prior to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce Distribution Date until the Class Principal Balance of each such Class.Class has been reduced to zero; and

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of (with respect to Collateral Group 1, multiplied by the principal portion related Applicable Fraction) of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, Certificates until the Class Certificate Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (Percentage, with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion , of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Certificate Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including other than the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Certificate Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Certificate Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, A-2 and Class 1-A-3 Certificates under this paragraph, paragraph will instead be allocated to Component the Class 1-A-5A-4 Certificates (in addition to other losses allocated to the Class 1-1 A-4 Certificates), pro rata, until the their respective Certificate Principal Balance of Component 1-A-5-1 has Balances have been reduced to zero, and (B) the losses allocable to the Class 12-A-2 Certificates, A-3 and Class 2-A-4 Certificates under this paragraph, paragraph will instead be allocated to Component 1Class 2-A-5A-5 Certificates (in addition to other losses allocated to the Class 2-2 A-5 Certificates), until the their respective Certificate Principal Balance of Component 1-A-5-2 has Balances have been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in contributing to any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and contributing to Collateral Group 1, (2) the Group 2 Certificates, in the case of an Excess Loss on a Mortgage Loan contributing to Collateral Group 2 and (3) the Group 3 Certificates, in the case of an Excess Loss on a Pool 2 Mortgage Loan (other than, in each case, than the related Class PO Certificates and the Interest Only Certificates in the case of such Certificate the Group 1 Certificates and the related Class of Class PO Group 2 Certificates, respectively); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Certificate Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)Loss); and (b) The Class Certificate Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) ), and (ii) the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Group 1 1, Group 2 and Group 2 3 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Certificate Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Certificate Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or ComponentClass, if any any, over (y) amounts previously applied to the increase of the Class Certificate Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Certificate Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Certificate Principal Balance of such Class pursuant to this Section 4.03(d)(ii4.03(d)(ii)(4). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, an amount equal to the PO Percentage, Percentage multiplied by the related Applicable Fraction, Fraction of any Recovery on any Mortgage Loan in contributing to Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group or Certificate Groups corresponding to the Collateral Group of to which the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Certificate Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of (A) any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, zero and second (1) with respect to such losses occurring with respect to Group 1 Mortgage Loans, to the Senior Certificates (or in the case Classes of the Class 1-A-5 Group 1 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or zero; (2) with respect to such losses occurring with respect to Group 2 Mortgage Loans, to the aggregate Certificate Group 2 Certificates (not including the Interest-Only Certificates); (3) with respect to such losses occurring with respect to Group 3 Mortgage Loans, to the Classes of Group 3 Certificates (not including the Interest-Only Certificates), pro rata on the basis of their respective Class Principal Balances immediately prior to the related Distribution Date until the Class Principal Balance of each such Component Class has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 13-A-1 Certificates, Certificates under this paragraph, paragraph will instead be allocated to Component 1the Class 3-A-5-1 A-3 Certificates until the Certificate Class Principal Balance balance of Component 1the Class 3-A-5-1 A-3 Certificates has been reduced to zero, ; (B4) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral such losses occurring with respect to Group 1 and Collateral 4 Mortgage Loans, to the Classes of Group 2, multiplied by 4 Certificates (not including the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Interest-Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon on the basis of their respective Class Principal Balances after giving effect immediately prior to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, until the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over has been reduced to zero; (y5) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral such losses occurring with respect to Group 1 and Collateral Group 25 Mortgage Loans, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause Group 5 Certificates (inot including Interest-Only Certificates); providedand (6) with respect to such losses occurring with respect to Group 6 Mortgage Loans, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.Group 6 Certificates;

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated (A) to the Class 15-PO CertificatesCertificates in the case of a Realized Loss occurring on any Discount Mortgage Loan in the 15-Year Loan Groups, until the Class Principal Balance of the Class 15-PO Certificates is reduced to zero; andand (B) to the Class 30-PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan in the 30-Year Loan Groups, until the Class Principal Balance of the Class 30-PO Certificates is reduced to zero; (ii) (A) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Group B Mortgage Loan (other than an Excess Loss) shall be allocated first to the Group B Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Group B Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Group B Certificate Group (not including the related Interest Only and the Class PO Principal Only Certificates) pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the allocation related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such total Distribution Date occurs. The amount as set forth belowof each Realized Loss shall be evidenced by an Officers' Certificate. All Realized Losses occurring on the Mortgage Loans (other than Excess Losses) shall be allocated as follows: : first, to the Excess Cash Flow, by increasing the amount of clause (iiv) the applicable PO Percentage of the principal portion definition of any Realized Loss on any Discount Mortgage LoanPrincipal Distribution Amount, including any Excess Losssecond, shall be allocated to by reduction of the Class PO CertificatesOvercollateralization Amount, until the Class Principal Balance of the Class PO Certificates is such amount has been reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2third, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with B Certificates; fourth, to the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zeroM-3 Certificates; fifth, and second to the Senior Certificates (or in the case of Class M-2 Certificates; sixth, to the Class 1-A-5 M-1 Certificates; and thereafter, the Components thereof) of the related Certificate Group (not including the related Interest Only and to the Class PO Certificates) A Certificates on a pro rata basis, based upon their respective Class Principal Balances (or, with respect to the Components, on their respective aggregate Certificate Principal Balances) after giving effect . Any Excess Losses on the Mortgage Loans will be allocated to distributions of principal on such Distribution Date until the Class Principal Balance A, Class M and Class B Certificates on a pro rata basis, in an amount equal to a fraction of each such Class has been reduced losses equal to zero or (x) the aggregate Certificate Principal Balance of each such Component has been reduced to zerothe Class A, as applicable; provided, however, that Class M and Class B Certificates over (Ay) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class aggregate Stated Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority thirdMortgage Loans, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance remainder of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group losses shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component Overcollateralization Amount in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all reduction of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”)thereof. (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Securities Administrator shall aggregate the loan-level information provided by the Master Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on if any, with respect to the Mortgage Loans for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related Prepayment Period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero; and second, and second to the Senior Certificates (or in the case of the Class 1A1A, Class A1B, Class A1C, Class PO and Class A-A-5 R Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) the losses Class A1C Certificates will bear the principal portion of all Realized Losses allocable to the Class 1-A-1 CertificatesA1A and Class A1B Certificates for so long as the Class A1A and Class A1B Certificates are outstanding; provided, under this paragraphfurther, the Class A1B Certificates will instead be allocated to Component 1-A-5-1 until bear the Certificate Principal Balance principal portion of Component 1-A-5-1 has been reduced to zero, (B) the losses all Realized Losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to A1A Certificates for so long as the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal BalancesA1A Certificates are outstanding; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (bc) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of (A) any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, zero and second (1) with respect to such losses occurring with respect to Group 1 Mortgage Loans, to the Senior Certificates (or in the case Classes of the Class 1-A-5 Group 1 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each zero; (2) with respect to such Component has been reduced losses occurring with respect to zeroGroup 2 Mortgage Loans, as applicable; provided, however, that (A) the losses allocable to the Class 12-A-1 Certificates; (3) with respect to such losses occurring with respect to Group 3 Mortgage Loans, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 13-A-2 A-1 Certificates; (4) with respect to such losses occurring with respect to Group 4 Mortgage Loans, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 14-A-3 A-1 Certificates; (5) with respect to such losses occurring with respect to Group 5 Mortgage Loans, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 15-A-4 A-1 Certificates; (6) with respect to such losses occurring with respect to Group 6 Mortgage Loans, under this paragraphto the Group 6 Certificates; (7) with respect to such losses occurring with respect to Group 7 Mortgage Loans, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 17-A-5 A-1 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 ; and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and 8) with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses such losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any 8 Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Group 8 Certificates (other than not including the Class PO Certificates and Interest Interest-Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and[reserved]; (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 12-A-1 Certificates, under this paragraph, will instead be allocated to Component 1the Class 2-A-5-1 A-2 Certificates until the Certificate Principal Balance of Component 1Class 2-A-5-1 A-2 Certificates has been reduced to zero, (B) the losses allocable to the Class 13-A-2 A-1 Certificates, under this paragraph, will instead be allocated to Component 1Class 3-A-5-2 A-2 Certificates until the Certificate Principal Balance of Component 1Class 3-A-5-2 A-2 Certificates has been reduced to zero, (C) the losses allocable to the Class 14-A-3 A-1 Certificates, under this paragraph, will instead be allocated to Component 1Class 4-A-5-3 A-2 Certificates until the Certificate Principal Balance of Component 1Class 4-A-5-3 A-2 Certificates has been reduced to zero zero, and (D) the losses allocable to the Class 15-A-4 A-1 Certificates, under this paragraph, will instead be allocated to Component 1Class 5-A-5-4 A-2 Certificates until the Certificate Principal Balance of Component 1Class 5-A-5-4 A-2 Certificates has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; andzero; (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in contributing to any Collateral Loan Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and contributing to Loan Group 1, (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan contributing to Loan Group 2, (other than3) the Group 3 Certificates, in each casethe case of an Excess Loss on a Mortgage Loan contributing to Loan Group 3; (4) the Group 4 Certificates, in the related Interest Only Certificates case of such Certificate an Excess Loss on a Mortgage Loan contributing to Loan Group 4 and (5) the related Class Group 5 Certificates, in the case of Class PO Certificates); an Excess Loss on a Mortgage Loan contributing to Loan Group 5 and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Loan Group which incurred the Excess Loss (based on their respective Class Principal Balances)Loss); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 1, Group 2, Group 3, Group 4 and Group 2 5 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loanszero; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Loan Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Loan Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or ComponentClass, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Loan Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii4.03(d)(ii)(4). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group or Certificate Groups corresponding to the Collateral Loan Group of to which the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i)such Recovery; provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the allocation related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such total Distribution Date occurs. The amount as set forth below. of each Realized Loss shall be evidenced by an Officers' Certificate. (A) All Realized Losses occurring on the Mortgage Group I Loans (other than Group I Excess Losses) shall be allocated as follows: (i) : first, to Group I Excess Cash Flow as provided in Section 4.02(c)(iii), to the applicable PO Percentage extent of the principal portion of any Realized Loss on any Discount Mortgage LoanGroup I Excess Cash Flow for such Distribution Date; second, including any Excess Loss, shall be allocated to the Class PO CertificatesGroup II Excess Cash Flow as provided in Section 4.02(d)(iv), to the extent of the Group II Excess Cash Flow for such Distribution Date remaining after distributions pursuant to Section 4.02(d)(iii); third, in reduction of the Group I Overcollateralization Amount, until the Class earlier of: (1) such amount has been reduced to zero or (2) the aggregate Certificate Principal Balance of the Class PO A Certificates is reduced to zero; and (ii) equals the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class aggregate Stated Principal Balance of each the Group I Loans and Group II Loans; fourth, in reduction of the Group II Overcollateralization Amount until such Class amount is reduced to zero, and second to meaning, that no additional Realized Losses will be allocated under any subsequent clause until the Senior Certificates (or in the case aggregate Certificate Principal Balance of the Class 1A Certificates equals the aggregate Stated Principal Balance of the Group I Loans and Group II Loans; and fifth, to the extent not covered by the Policy, to the Class A-A-5 I Certificates, the Components thereof) with such amount allocated among each Class of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) A-I Certificates on a pro rata basis, based upon their respective on the same proportion as the Group I Principal Distribution Amount was allocated to such Class Principal Balances (orof Certificates on that Distribution Date, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Certificate Principal Balance of each such Class has been reduced to zero or zero. (B) Any Group I Excess Losses on the Mortgage Loans, to the extent not covered by the Policy, will be allocated to the Class A-I Certificates, in each case in an amount equal to the product of (a) the Group I Excess Losses and (b) the fraction, expressed as a percentage, the numerator of which is (x) the aggregate Certificate Principal Balance of each the Class A-I Certificates, and the denominator of which is (y) the aggregate Stated Principal Balance of the Group I Loans, and the remainder of such Component losses shall be allocated to the Group I Overcollateralization Amount in reduction of the amount thereof. (A) All Realized Losses on the Group II Loans (other than Group II Excess Losses) shall be allocated as follows: first, to the Group II Excess Cash Flow as provided in Section 4.02(d)(iii), to the extent of the Group II Excess Cash Flow for such Distribution Date; second, to the Group I Excess Cash Flow as provided in Section 4.02(c)(iv), to the extent of the Group I Excess Cash Flow for such Distribution Date remaining after distributions pursuant to Section 4.02(c)(iii); 100 third, in reduction of the Group II Overcollateralization Amount, until the earliest of: (1) such amount has been reduced to zerozero or (2) the aggregate Certificate Principal Balance of the Class A Certificates equals the aggregate Stated Principal Balance of the Group I Loans and Group II Loans; fourth, as applicable; providedin reduction of the Group I Overcollateralization Amount, howevermeaning, that (A) no additional Realized Losses will be allocated to any Class of Certificates until the losses allocable aggregate Certificate Principal Balance of the Class A Certificates equals the aggregate Stated Principal Balance of the Group I Loans and Group II Loans; and fifth, to the extent not covered by the Policy, to the Class 1A-A-1 II Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 such Class has been reduced to zero, . (B) Any Group II Excess Losses on the losses allocable Mortgage Loans, to the extent not covered by the Policy, will be allocated to the Class 1A-A-2 II Certificates, under this paragraphin an amount equal to the product of (a) the Group II Excess Losses and (b) the fraction, will instead be allocated to Component 1-A-5-2 until expressed as a percentage, the numerator of which is (x) the Certificate Principal Balance of Component 1the Class A-A-5-2 has been reduced to zero, II Certificates and the denominator of which is (Cy) the aggregate Stated Principal Balance of the Group II Loans, and the remainder of such losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead shall be allocated to Component 1-A-5-3 until the Certificate Principal Balance Group II Overcollateralization Amount in reduction of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; andamount thereof. (iiib) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) Any allocation of the principal portion of any Excess Realized Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO CertificatesDebt Service Reductions) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above Class A Certificates shall be accomplished made by reducing the Certificate Principal Balance of thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” hereinDate; provided that no Realized Loss with respect to any Collateral Group such reduction shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate the Class A-I Certificates or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce A-II Certificates below the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Stated Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance Group I Loans or Group II Loans, as applicable. Allocations of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount interest portions of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificatesany interest rate reduction resulting from a Servicing Modification) shall be made by operation of the definition of "Accrued Certificate Group corresponding to the Collateral Group Interest" and by operation of the Mortgage Loan for which the Recovery was received, pro rata, the amount provisions of Section 4.02(c) and (d). Allocations of the Recovery interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the provisions of Section 4.02(c) and (with respect to Collateral Group 1 d). All Realized Losses and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution all other losses allocated to a Class of Certificates pursuant hereunder will be allocated among the Certificates of such Class in proportion to this Section 4.03(ethe Percentage Interests evidenced thereby. (i) All Realized Losses on the Group I Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests LT1-AI-AA and LT1-AI-ZZ up to an aggregate amount equal to the excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not reduce covered by Compensating Interest) relating to the Class Group I Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests LT1-AI-AA and LT1-AI-ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of 101 REMIC I Regular Interests LT1-AI-AA, 98%, LT1-AI-1, LT1-AI-2, LT1-AI-3, LT1-AI-4, LT1-AI-5 and LT1-AI-6, 1% pro rata, and LT1-AI-ZZ, 1%, until the Uncertificated Balance of each of REMIC I Regular Interests LT1-AI-1, LT1-AI-2, LT1-AI-3, LT1-AI-4, LT1-AI-5 and LT1-AI-6 have been reduced to zero. (ii) All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interests LT2-AII-AA and LT2-AII-ZZ up to an aggregate amount equal to the excess of (a) the REMIC II Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) relating to the Group II Loans for such ClassDistribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interests LT2-AII-AA and LT2-AII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interests LT2-AII-AA, LT2-AII-1 and LT2-AII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balances of REMIC II Regular Interests LT2-AII-1 has been reduced to zero.

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of Realized LossesLosses with respect to the related Distribution Date. For purposes of allocating Realized Losses to the Subordinated Certificates, including Excess Losses the Class M-X Certificates will be deemed to have a lower numerical Class designation, and to be of a higher relative payment priority, than each other Class of Subordinated Certificates. Among the allocation remaining Classes of such total amount as set forth belowSubordinated Certificates, the Class M Certificates have higher payment priorities than the Class B Certificates. Within the Class M and Class B Certificates, the payment priorities are in numerical order. Realized Losses occurring on the Mortgage Loans with respect to any Distribution Date shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of [Reserved] (ii) any Realized Loss on any Discount the Mortgage Loan, including any Excess Loss, Loans in a Loan Group shall be allocated (1) first, to the Class PO Certificates, until the Class Principal Balance of the Class PO Subordinated Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Lossthe Class M-X IO Component) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designation) until the respective Class Certificate Balance or Component Principal Balance of each such Class is reduced to zero, and second (2) second, to the Senior Certificates of the related Senior Certificate Group (or other than any Notional Amount Components), if applicable, pro rata, on the basis of their respective Class Certificate Balances, in each case immediately prior to the case related Distribution Date until the respective Class Certificate Balance of each such Class is reduced to zero; except that (A) any Realized Losses on the Group 1 Mortgage Loans that are otherwise allocable to the Class 1-A-2 Certificates will instead be allocated first to the Class 1-A-5 Certificates, the Components thereof) of the related until their Class Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) the losses allocable and then to the Class 1-A-1 A-3 and Class 1-A-4 Certificates, under this paragraphpro rata, will instead be allocated to Component 1-A-5-1 until the their Class Certificate Principal Balance of Component 1-A-5-1 has been Balances are reduced to zero, (B) any Realized Losses on the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses Group 1 Mortgage Loans that are otherwise allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, Certificates will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding provisountil their Class Certificate Balance is reduced to zero, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2C) any Realized Losses on the Group 2 Mortgage Loans that are otherwise allocable to the Class 2-A-1 Certificates will instead be allocated to the Class 2-A-2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such until their Class Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect Balance is reduced to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); andzero. (b) The Class Principal Certificate Balance of the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Certificate Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool Stated Principal Balance for as of the following last day of the Prepayment Period related to such Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Balance of a Class of Certificates pursuant to Section 4.04(b) above shall be allocated among the Certificates of such Class in proportion to their respective Certificate Balances. (d) Any allocation of Realized Losses to a Certificate or a to any Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Certificate, pursuant to Section 4.03(a) or (b4.04(b) above shall be accomplished by reducing the Certificate Principal Balance, Component Balance of such Certificate or Component Subordinated Portion thereof, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “"Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce ," "Component Balance" or "Subordinated Portion," as the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”)case may be. (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth belowLosses, with respect to each related Distribution Date. Realized Losses occurring on the Mortgage Loans with respect to a Loan Group and any Distribution Date shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated to the related Class PO Certificates, Component until the Class Principal its Component Balance of the Class PO Certificates is reduced to zero; and (ii) (A) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an any Excess Loss) on the Mortgage Loans in a Loan Group shall be allocated first to the Subordinate Subordinated Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Certificate Balance of each such Class is reduced to zero, and second to the Classes of Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Senior Certificate Group (not including other than any Notional Amount Certificates, if applicable, and the related Interest Only and the Class PO Certificates) Component), pro rata based upon on the basis of their respective Class Principal Balances (orCertificate Balances, with respect in each case immediately prior to the Componentsrelated Distribution Date, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the respective Class Principal Certificate Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, except that (A) the losses allocable applicable Non-PO Percentage of any Realized Losses on the Group 1 Mortgage Loans that would otherwise be allocated to the Class 1-A-1 Certificates, under this paragraph, and Class 1-A-5 Certificates will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component A-6-A and Class 1-A-5A-6-1B Components, respectively, until their respective Component 1-A-5-2Balances are reduced to zero, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Realized Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided Loans that no Realized Loss with respect to any Collateral Group shall would otherwise be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of 2-A-1 Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will instead be allocated to increase the Class Principal 2-A-3 Certificates until its Class Certificate Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up is reduced to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.zero;

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of Realized Losses, including Excess Losses and with respect to the allocation of such total amount as set forth belowrelated Distribution Date. Realized Losses occurring on the Mortgage Loans with respect to any Distribution Date shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and[Reserved]; (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Any Realized Loss with respect to any on the Mortgage Loan (other than an Excess Loss) Loans shall be allocated first first, to the Subordinate Certificates Subordinated Certificates, in reverse order of their respective numerical Class designations distribution priorities (beginning with the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designationlowest distribution priority) until the respective Class Principal Certificate Balance of each such Class is reduced to zero, and second second, to the Classes of Senior Certificates (or the PO Components thereof in the case of the a Class 1-A-5 of Component Certificates, pro rata, on the Components thereof) basis of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Certificate Balances or Component Principal Balances (orBalances, with respect as applicable, immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the respective Class Certificate Balance or Component Principal Balance Balance, as applicable, of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) the losses any Realized Losses otherwise allocable to the Class 1-A-1 CertificatesA-1, under this paragraph, will instead Class A-2 and A-3 Certificates shall be allocated sequentially, first, to Component 1-A-5-1 the Class A-3 Certificates until the its Class Certificate Principal Balance of Component 1-A-5-1 has been is reduced to zero, (B) the losses allocable second, concurrently, to the Class 1A-2-A-2 A, Class A-2-B, Class A-2-C and Class A-2-D Certificates, under this paragraphpro rata, will instead be allocated to Component 1-A-5-2 until the their respective Class Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been Balances are reduced to zero and (D) the losses allocable third, concurrently, to the Class 1A-1-A-4 A, Class A-1-B, Class A-1-C and Class A-1-D Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon until their respective Class Principal Certificate Balances after giving effect are reduced to distributions zero. For the avoidance of principal on such Distribution Date (exceptdoubt, in the case Class M-1 Certificates have a higher distribution priority than each other Class of the Subordinate Subordinated Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and. (b) The Class Principal Certificate Balance of the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designation lowest distribution priority shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances Certificate Balance of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Net Deferred Interest and Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool Stated Principal Balance for as of the following last day of the Due Period related to such Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Balance of a Class of Certificates pursuant to Section 4.04(b) above shall be allocated among the Certificates of such Class in proportion to their respective Certificate Balances. (d) Any allocation of Realized Losses to a Certificate or a to any Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Certificate, pursuant to Section 4.03(a) or (b4.04(b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component Principal Balance, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “"Certificate Balance" or "Component Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce ," as the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”)case may be. (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Trustee shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates, the PO-B Certificates and the PO-B Components in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding or PO-B Component with the highest numerical Class or Component designation) until the respective Class Principal Balance or Component Principal Balance of each such Class or Component is reduced to zero; and (A) with respect to such losses related to the Group 1 Mortgage Loans, to the Class 1-A1A, Class 1-A1B, Class PO-1 and Class A-R Certificates, pro rata, until the Class Principal Balance of each such Class is reduced to zero; provided, and second to the Senior Certificates (or in the case of however, the Class 1-A-5 A1B Certificates will bear the principal portion of all Realized Losses allocable to the Class 1-A1A Certificates for so long as the Class 1-A1B Certificates are outstanding; (B) with respect such losses related to the Group 2 Mortgage Loans, to the Class 2-A1A, Class 2-A1B, Class 2-A1C and Class PO-2 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) the losses Class 2-A1C Certificates will bear the principal portion of all Realized Losses allocable to the Class 12-A-1 CertificatesA1A and Class 2-A1B Certificates for so long as the Class 2-A1A and Class 2-A1B Certificates are outstanding; provided, under this paragraphfurther, the Class 2-A1B Certificates will instead be allocated to Component 1-A-5-1 until bear the Certificate Principal Balance principal portion of Component 1-A-5-1 has been reduced to zero, (B) the losses all Realized Losses allocable to the Class 12-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to A1A Certificates for so long as the Class 12-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal BalancesA1A Certificates are outstanding; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (bc) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated (A) to the Class 15-PO CertificatesCertificates in the case of a Realized Loss occurring on any Group 5 or Group 7 Mortgage Loan, until the Class Principal Balance of the Class 15-PO Certificates is reduced to zero; and, and (B) to the Class 30-PO Certificates in the case of a Realized Loss occurring on any Group 1, Group 2, Group 3, Group 4 or Group 8 Mortgage Loan, until the Class Principal Balance of the Class 30-PO Certificates is reduced to zero. (ii) (A) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage 15-Year Loan (other than an Excess Loss) shall be allocated first to the 15-Year Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of 15-Year Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Componentssuch losses occurring with respect to Group 5 Mortgage Loans, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 15-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 Certificates until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of has been reduced to zero; and (2) with respect to such Component pursuant losses occurring with respect to this Section 4.03(d)(i) (any increase of Group 7 Mortgage Loans, to the Class Principal Balance of the Class 17-A-5 A-1 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of until the Class Principal Balance of such Class pursuant has been reduced to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1zero; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the allocation related Prepayment Period or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such total Distribution Date occurs. The amount as set forth below. of each Realized Loss shall be evidenced by an Officers' Certificate. (A) All Realized Losses occurring on the Mortgage Group I Loans (other than Group I Excess Losses) shall be allocated as follows: (i) : first, to Group I Excess Cash Flow as provided in Section 4.02(c)(iii), to the applicable PO Percentage extent of the principal portion of any Realized Loss on any Discount Mortgage LoanGroup I Excess Cash Flow for such Distribution Date; second, including any Excess Loss, shall be allocated to the Class PO CertificatesGroup II Excess Cash Flow as provided in Section 4.02(d)(iv), to the extent of the Group II Excess Cash Flow for such Distribution Date remaining after distributions pursuant to Section 4.02(d)(iii); third, in reduction of the Group I Overcollateralization Amount, until the Class earlier of: (1) such amount has been reduced to zero or (2) the aggregate Certificate Principal Balance of the Class PO A Certificates is reduced to zero; and (ii) equals the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class aggregate Stated Principal Balance of each the Group I Loans and Group II Loans; fourth, in reduction of the Group II Overcollateralization Amount until such Class amount is reduced to zero, and second to meaning, that no additional Realized Losses will be allocated under any subsequent clause until the Senior Certificates (or in the case aggregate Certificate Principal Balance of the Class 1A Certificates equals the aggregate Stated Principal Balance of the Group I Loans and Group II Loans; and fifth, to the extent not covered by the Policy, to the Class A-A-5 I Certificates, the Components thereof) with such amount allocated among each Class of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) A-I Certificates on a pro rata basis, based upon their respective on the same proportion as the Group I Principal Distribution Amount was allocated to such Class Principal Balances (orof Certificates on that Distribution Date, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Certificate Principal Balance of each such Class has been reduced to zero or zero. (B) Any Group I Excess Losses on the Mortgage Loans, to the extent not covered by the Policy, will be allocated to the Class A-I Certificates, in each case in an amount equal to the product of (a) the Group I Excess Losses and (b) the fraction, expressed as a percentage, the numerator of which is (x) the aggregate Certificate Principal Balance of each the Class A-I Certificates, and the denominator of which is (y) the aggregate Stated Principal Balance of the Group I Loans, and the remainder of such Component losses shall be allocated to the Group I Overcollateralization Amount in reduction of the amount thereof. (A) All Realized Losses on the Group II Loans (other than Group II Excess Losses) shall be allocated as follows: first, to the Group II Excess Cash Flow as provided in Section 4.02(d)(iii), to the extent of the Group II Excess Cash Flow for such Distribution Date; second, to the Group I Excess Cash Flow as provided in Section 4.02(c)(iv), to the extent of the Group I Excess Cash Flow for such Distribution Date remaining after distributions pursuant to Section 4.02(c)(iii); third, to the extent provided in Section 4.09, by a payment from the Reserve Fund from amounts on deposit therein in respect of the Cap Contract, until the amount therein has been reduced to zero; fourth, as applicablein reduction of the Group II Overcollateralization Amount, until the earliest of: (1) such amount has been reduced to zero or (2) the aggregate Certificate Principal Balance of the Class A Certificates equals the aggregate Stated Principal Balance of the Group I Loans and Group II Loans; providedfifth, howeverin reduction of the Group I Overcollateralization Amount, meaning, that (A) no additional Realized Losses will be allocated to any Class of Certificates until the losses allocable aggregate Certificate Principal Balance of the Class A Certificates equals the aggregate Stated Principal Balance of the Group I Loans and Group II Loans; and sixth, to the extent not covered by the Policy, to the Class 1A-A-1 II Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 such Class has been reduced to zero, . (B) Any Group II Excess Losses on the losses allocable Mortgage Loans, to the extent not covered by the Policy, will be allocated to the Class 1A-A-2 II Certificates, under this paragraphin an amount equal to the product of (a) the Group II Excess Losses and (b) the fraction, will instead be allocated to Component 1-A-5-2 until expressed as a percentage, the numerator of which is (x) the Certificate Principal Balance of Component 1the Class A-A-5-2 has been reduced to zero, II Certificates and the denominator of which is (Cy) the aggregate Stated Principal Balance of the Group II Loans, and the remainder of such losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead shall be allocated to Component 1-A-5-3 until the Certificate Principal Balance Group II Overcollateralization Amount in reduction of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; andamount thereof. (iiib) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) Any allocation of the principal portion of any Excess Realized Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO CertificatesDebt Service Reductions) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above Class A Certificates shall be accomplished made by reducing the Certificate Principal Balance of thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” hereinDate; provided that no Realized Loss with respect to any Collateral Group such reduction shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate the Class A-I Certificates or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce A-II Certificates below the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Stated Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance Group I Loans or Group II Loans, as applicable. Allocations of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount interest portions of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificatesany interest rate reduction resulting from a Servicing Modification) shall be made by operation of the definition of "Accrued Certificate Group corresponding to the Collateral Group Interest" and by operation of the Mortgage Loan for which the Recovery was received, pro rata, the amount provisions of Section 4.02(c) and (d). Allocations of the Recovery interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the provisions of Section 4.02(c) and (with respect to Collateral Group 1 d). All Realized Losses and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution all other losses allocated to a Class of Certificates pursuant hereunder will be allocated among the Certificates of such Class in proportion to this Section 4.03(ethe Percentage Interests evidenced thereby. (i) All Realized Losses on the Group I Loans shall be allocated on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC I Regular Interests LT1-AI-AA and LT1-AI-ZZ up to an aggregate amount equal to the excess of (a) the REMIC I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not reduce covered by Compensating Interest) relating to the Class Group I Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interests LT1-AI-AA and LT1-AI-ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Regular Interests LT1-AI-AA, 98%, LT1-AI-1, LT1-AI-2, LT1-AI-3, LT1-AI-4 and LT1-AI-5, 1% pro rata, and LT1-AI-ZZ, 1%, until the Uncertificated Balance of each of REMIC I Regular Interests LT1-AI-1, LT1-AI-2, LT1-AI-3, LT1-AI-4 and LT1-AI-5 have been reduced to zero. (ii) All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC II Regular Interests LT2-AII-AA and LT2-AII-ZZ up to an aggregate amount equal to the excess of (a) the REMIC II Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) relating to the Group II Loans for such Distribution Date, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC II Regular Interests LT2-AII-AA and LT2-AII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC II Regular Interests LT2-AII-AA, LT2-AII-1 and LT2-AII-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of such ClassREMIC II Regular Interest LT2-AII-1 has been reduced to zero.

Allocation of Realized Losses. (a) On or If on any Distribution Date, after taking into account all Realized Losses experienced during the prior Collection Period and after taking into account the distribution of principal (including the Accelerated Principal Distribution Amount), with respect to each the Certificates on such Distribution Date, the Master Servicer shall determine aggregate Class Principal Balance of the total amount Certificates exceeds the aggregate Principal Balance of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated Loans, as follows: (i) the applicable PO Percentage applicable, as of the principal portion end of any Realized Loss on any Discount Mortgage Loanthe related Collection Period, including any Excess Loss, shall be allocated to the Class PO Certificates, until then the Class Principal Balance of the Class PO M and/or Class B Certificates shall be reduced such that the level of the Overcollaterization Amount is reduced to zero; and (ii) , rather than negative. The resulting Applied Realized Loss Amount for the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by Class shall be applied as a reduction in the Class Principal Balance of the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Class M and/or Class B Certificates in reverse order of their respective numerical Class designations (beginning with seniority, i.e., first against the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective B-2 Class Principal Balance of each such until it is reduced to zero, then against the Class B-1 Class Principal Balance until it is reduced to zero, then against the Class M-2 Class Principal Balance until it is reduced to zero, and second to the Senior Certificates (or in the case of lastly against the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective M-1 Class Principal Balances (or, with respect Balance until it is reduced to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until zero. In no event shall the Class Principal Balance of each such any Class has been reduced to zero or the aggregate A Certificate Principal Balance be written down as a result of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any applying Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); andLosses. (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, Once the Class Principal Balance of one or more Classes a Class of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increasedClass M and/or Class B Certificates, as follows: (i) firstapplicable, up to has been reduced the amount of the Non-PO Recoveries with respect to any Collateral Groupsuch reduction will no longer bear interest, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to nor will such Collateral Group will amount thereafter be increased, pro rata, up to "reinstated" or "written up," although the amount of the excesssuch write down may, if anyon future Distribution Dates, of (x) unrecovered Realized Losses previously allocated be paid to each such Class or Component, if any over (y) amounts previously applied to the increase Holders of the Class Principal Balance M and/or Class B Certificates which experienced the write down, in direct order of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase seniority as distributions on account of the related Class Principal Balance of the M-1, Class 1-A-5 Certificates under this clause will be allocated to increase the M-2, Class Principal Balance of the B-1, or Class 1-A-5-1 componentB-2 Realized Loss Amounts, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii)as applicable. (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Securities Administrator shall aggregate the loan-level information provided by the Master Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Certificate Principal Balance of each such Class is reduced to zero; and second, (A) with respect to such losses related to Loan Group 1 Mortgage Loans, and second to the Senior Certificates (or in the case of the Class 1-A-5 CertificatesA and Class A-R Certificates and PO-1 Component, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Certificate Principal Balance or Component Principal Balance of each such Class has been or Component is reduced to zero zero; (B) with respect to such losses related to Loan Group 2 Mortgage Loans, to the Class 2-A1, Class 2-A2, Class 2-A3, Class 2-A4A and Class 2-A4B Certificates and PO-2 Component, pro rata, until their respective Class Certificate Principal Balances or the aggregate Certificate Component Principal Balance of each such Class or Component is reduced to zero, provided that losses otherwise distributable to the Class 2-A4A Certificates will be allocated to the Class 2-A4B Certificates, until the Class Certificate Principal Balance of the Class 2-A4B Certificates has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, and (C) the with respect to such losses allocable related to Loan Group 3 Mortgage Loans, to the 3-A-1 and Class 13-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero A-2 Certificates and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4PO-3 Component, pro rata, based on their outstanding until the Class Certificate Principal Balances; andBalance or Component Principal Balance of each such Class or Component is reduced to zero. (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (bc) The Class Certificate Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the principal portion related Applicable Fraction) of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class 30-PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan in any Collateral Group 1, or the Class 15-PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan in any Collateral Group 3, in each case, until the Class Principal Balance of the such Class of Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 A-6 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5A-6-1 until the Certificate Principal Balance of Component 1-A-5A-6-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5A-6-2 until the Certificate Principal Balance of Component 1-A-6-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-5 Certificates, under this paragraph, will instead be allocated to Component 1-A-6-3 until the Certificate Principal Balance of Component 1-A-5A-6-3 has been reduced to zero and (D) the losses allocable to the Class 13-A-4 A-1 Certificates, under this paragraph, will instead be allocated to Component 1the Class 3-A-5-4 A-2 Certificates until the Certificate Principal Balance of Component 1the Class 3-A-5-4 A-2 Certificates has been reduced to zero zero; provided, further, that any Realized Loss allocated to the Class 1-A-5 A-6 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5A-6-1, Component 1-A-5A-6-2, Component 1-A-5-3 2 and Component 1-A-5A-6-43, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and Loan, (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan and (3) the Group 3 Certificates, in the case of an Excess Loss on a Group 3 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class 15-PO and Class 30-PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 3 and Collateral Group 1, respectively, pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 1, Group 2 and Group 2 3 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates (other than the Class 1-A-6 Certificates) and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates and the Class 1-A-6 Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii4.03(d)(ii)(A). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) (A) to the Class 15-PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 3 and (B) to the Class 30-PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (ai) On or any Distribution Date, (x) the applicable AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Discount Mortgage Loan in Pool 1 will be allocated to and reduce the Class Principal Amount of the Class 1-AP Certificates until the Class Principal Amount thereof has been reduced to zero; and (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loan in Pool 1 shall be allocated in the following order of priority: first, to the Class 1B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class 1B5 Certificates, until the Class Principal Amount thereof has been reduced to zero; third, to the Class 1B4 Certificates, until the Class Principal Amount thereof has been reduced to zero; fourth, to the B3(1) Component, until the Component Principal Amount thereof has been reduced to zero; fifth, to the Class 1B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class 1B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and seventh, to the Classes of Non-AP Senior Certificates of Group 1, pro rata, in accordance with their Class Principal Amounts. (ii) On any Distribution Date, (x) the applicable AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Discount Mortgage Loan in Pool 2 will be allocated to and reduce the Class Principal Amount of the Class 2-AP Certificates until the Class Principal Amount thereof has been reduced to zero; and (y) the applicable Non-AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loan in Pool 2 shall be allocated in the following order of priority: first, to the Class 2B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class 2B5 Certificates, until the Class Principal Amount thereof has been reduced to zero; third, to the Class 2B4 Certificates, until the Class Principal Amount thereof has been reduced to zero; fourth, to the B3(2) Component, until the Component Principal Amount thereof has been reduced to zero; fifth, to the Class 2B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class 2B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and seventh, to the Classes of Non-AP Senior Certificates of Group 2, pro rata, in accordance with their Class Principal Amounts; provided, however, that any such loss allocated to any Class of Accrual Certificates of Group 2 shall be allocated on the basis of the lesser of (x) the Class Principal Amount thereof immediately prior to each the applicable Distribution Date and (y) the Class Principal Amount thereof on the Closing Date (as reduced by any Realized Losses previously allocated thereto). (b) With respect to any Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Non-AP Percentage of the principal portion of any Realized Excess Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Lossa Debt Service Reduction) in respect of a Mortgage Loan in a Mortgage Pool shall be allocated first allocated, pro rata, to the Subordinate Non-AP Senior Certificates in reverse order of their respective numerical Class designations (beginning with and to the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including on the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions basis of principal on such Distribution Date until the Class Principal Balance Amounts or Component Principal Amounts of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicableCertificates and Components; provided, however, that any such loss allocated to any Class of Accrual Certificates shall be allocated (Asubject to Section 5.03(c)) on the basis of the lesser of (x) the losses allocable Class Principal Amount thereof immediately prior to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, applicable Distribution Date and (By) the losses allocable to Class Principal Amount thereof on the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been Closing Date (as reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that by any Realized Loss Losses previously allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the thereto). The applicable Non-PO AP Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Loss (other than a Debt Service Reduction) in respect of a Mortgage Loan in any Collateral Group shall Pool 1 or Pool 2 will be allocated among (A) (applied to the Class 1) the Group 1 -AP and 2-AP Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificatesrespectively, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of until the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has Amounts thereof have been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; andzero. (c) Any allocation of Realized Losses allocated to a Certificate Class of Certificates or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Components pursuant to Section 4.03(a5.03(a) or (b) above shall be allocated among the Certificates of such Class or Components in proportion to their respective Certificate Principal Amounts or Component Principal Amounts. Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Balance of such Certificate Amounts or Component immediately following Principal Amounts of the distributions made related Certificates or Components on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”Section 5.03(d). (d) Prior Realized Losses allocated in accordance with this Section 5.03 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 Cross-Over Principal Only Certificates on such Distribution Date will be taken into account in determining distributions in respect of any related AP Deferred Amount for such date. (e) On each Distribution Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, Subordinate Certificate Writedown Amount for such date shall effect a corresponding reduction in the Class Principal Balance Amount of the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on such Distribution Date after giving effect to distributions made on such Distribution Date. (f) In the event that there is a recovery of an amount in respect of principal of a Mortgage Loan, which amount had previously been allocated as a Realized Loss to one or more Classes of Certificates and or Components, each outstanding Class or Component to which any portion of such Realized Loss had previously been allocated shall be entitled to receive, on the aggregate Certificate Distribution Date in the month following the month in which such recovery is received, its pro rata share (based on the Class Principal Balance Amount or Component Principal Amount thereof) of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) firstsuch recovery, up to the amount of the Non-PO Recoveries portion of such Realized Loss previously allocated to such Class or Component. In the event that the total amount of such recovery exceeds the amount of Realized Loss allocated to the outstanding Classes or Components in accordance with respect to any Collateral Groupthe preceding provisions, the Class Principal Balance of each outstanding Class of Senior Certificates (other than or Component shall be entitled to receive its pro rata share of the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance amount of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rataexcess, up to the amount of the excess, if any, of (x) any unrecovered Realized Losses Loss previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of . Any such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be recovery allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) or Components shall not further reduce the Class Principal Balance Amount or Component Principal Amount of such ClassClass or Component. Any such amounts not otherwise allocated to any Class of Certificates or Components pursuant to this subsection shall be treated as Principal Prepayments for purposes of this Agreement.

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth belowLosses, with respect to each related Distribution Date. Realized Losses occurring on the Mortgage Loans with respect to any Distribution Date shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero[reserved]; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable FractionA) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an any Excess Loss) on the Mortgage Loans in a Loan Group shall be allocated first to the Subordinate Subordinated Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Certificate Balance of each such Class is reduced to zero, and second to the Classes of Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Senior Certificate Group (not including the related Interest Only and the Class PO Certificates) Group, pro rata based upon on the basis of their respective Class Principal Balances (orCertificate Balances, with respect in each case immediately prior to the Componentsrelated Distribution Date, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the respective Class Principal Certificate Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss Losses other than Excess Losses on the Group 1 Mortgage Loans, Group 2 Mortgage Loans, Group 4 Mortgage Loans and Group 6 Mortgage Loans that would otherwise be allocated to the Class 1-A-5 CertificatesA-1, other than in accordance with the preceding provisoClass 2-A-1, will be allocated between Component 1Class 4-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only A-1 and Class PO Certificates) and Subordinate 6-A-1 Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall will instead be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the A-2, Class Principal Balance of the 2-A-2, Class 14-A-5A-2 and Class 6-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate A-2 Certificates, in order of seniorityrespectively, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated until their respective Class Certificate Balances are reduced to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.zero;

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (iA) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated to the Class PO CertificatesPO-1 Certificates in the case of a Realized Loss occurring on any Mortgage Loan in Loan Group 1 or Loan Group 3, until the Class Principal Balance of the Class PO-1 Certificates is reduced to zero and (B) the applicable PO Percentage of any Realized Loss, including any Excess Loss, shall be allocated to the Class PO-2 Certificates in the case of a Realized Loss occurring on any Mortgage Loan in Loan Group 2, until the Class Principal Balance of the Class PO-2 Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to a any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Junior Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Junior Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second (1) with respect to such losses occurring with respect to Group 1 Mortgage Loans, to the Senior Classes of Group 1 Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) ), pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or zero; (2) with respect to such losses occurring with respect to Group 2 Mortgage Loans, to the aggregate Certificate Classes of Group 2 Certificates (not including the Interest Only Certificates), pro rata on the basis of their respective Class Principal Balances immediately prior to the related Distribution Date until the Class Principal Balance of each such Component Class has been reduced to zero; (3) with respect to such losses occurring with respect to Group 3 Mortgage Loans, as applicableto the Classes of Group 3 Certificates (not including the related Interest Only Certificates), pro rata on the basis of their respective Class Principal Balances immediately prior to the related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero; (4) with respect to such losses occurring with respect to Group 4 Mortgage Loans, to the Classes of Group 4 Certificates (not including the Interest Only Certificates), pro rata on the basis of their respective Class Principal Balances immediately prior to the related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero; (5) with respect to such losses occurring with respect to Group 5 Mortgage Loans, to the Classes of Group 5 Certificates (not including the Interest Only Certificates), pro rata on the basis of their respective Class Principal Balances immediately prior to the related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero; provided, however, that that, after the Cross-Over Date, (Aa) the losses allocable to the Class 13-A-1 A-6 Certificates, under this paragraph, will instead be allocated to Component 13-A-5A-18-1 2 until the Certificate Principal Component Balance of Component 13-A-5A-18-1 2 has been reduced to zero, (Bb) the losses allocable to the Class 13-A-2 A-9 Certificates, under this paragraph, will instead be allocated to the Class 3-A-12 Certificates until the Class Principal Balance of the Class 3-A-12 Certificates has been reduced to zero and (c) the losses allocable to the Class 3-A-17 Certificates, under this paragraph, will instead be allocated to Component 13-A-5A-18-2 1 until the Certificate Principal Component Balance of Component 13-A-5A-18-2 1 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) Loan, the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan, the Group 3 Certificates, in the case of an Excess Loss on a Group 3 Mortgage Loan, the Group 4 Certificates, in the case of an Excess Loss on a Group 4 Mortgage Loan and the Group 5 Certificates, in the case of an Excess Loss on a Group 5 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); Group) and (B2) each Class of Subordinate Junior Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (exceptor, in the case of the Subordinate Certificates, based on Junior Certificates their pro-rata portion of the Group Subordinate Amount for the Collateral Loan Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and) after giving effect to distributions of principal on such Distribution Date. (b) The Class Principal Balance of the Class of Subordinate Junior Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO PO-1 or Class PO-2 Certificates in respect of any Group PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority thirdAmounts, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 1, Group 2, Group 3, Group 4, Group 5 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Junior Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations related to Group 1, Group 2, Group 3, Group 4 or Group 5 occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Certificate, pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Loan Group shall be allocated to reduce the Certificate Principal Balance of a Senior Group 1, Group 2, Group 3, Group 4 or Group 5 Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only Group 1, Group 2, Group 3, Group 4, Group 5 and Class PO Certificates) and Subordinate Junior Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Trustee shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on if any, with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related Prepayment Period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loanfirst, including any to Net Monthly Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; andCashflow; (ii) second, to the applicable Non-PO Percentage Overcollateralized Amount, until such amount has been reduced to zero; (with respect to Collateral Group 1 and Collateral Group 2iii) third, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero; and (iv) fourth, and second to the Senior Certificates (or in the case of the Class 1-A-5 1A-1A, Class 2A-1A1, Class 2A-1A2, Class 2A-1A3, Class 2A-1B, Class 2A-2A, Class 2A-2B and Class 2A-2C Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been class is reduced to zero, as applicable; provided, however, that (A) the all losses allocable to the Class 1-A-1 Certificates2A-1A1, under this paragraphClass 2A-1A2, Class 2A-1A3 and Class 2A-1B Certificates will instead be allocated first to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zeroClass 2A-1B Certificates and provided, (B) the further, that all losses allocable to the Class 1-A-2 Certificates2A-2A, under this paragraph, Class 2A-2B and Class 2A-2C Certificates will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zerofirst, (C) the losses allocable to the Class 1-A-3 2A-2C Certificates; second, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 2A-2B Certificates; and third, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 2A-2A Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificatesthat order, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of for so long as such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); andcertificates are outstanding. (bc) The Class Principal Balance of first, the Class C Certificates and second, the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO CertificatesCertificates in the case of a Realized Loss occurring on any Discount Mortgage Loan in any Loan Group, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 A-2 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Principal Only Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (Ci) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component the Class 1-A-5A-2-3 1 component until the Certificate Principal Balance of Component the Class 1-A-5A-2-3 1 component has been reduced to zero and (Dii) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component the Class 1-A-5A-2-4 2 component until the Certificate Principal Balance of Component the Class 1-A-5A-2-4 2 component has been reduced to zero zero; provided, further, that any Realized Loss allocated to the Class 1-A-5 A-2 Certificates, other than in accordance with the preceding proviso, will be allocated between Component the Class 1-A-5A-2-1, Component 1 component and the Class 1-A-5A-2-2, Component 1-A-5-3 and Component 1-A-5-42 component, pro rata, based on their outstanding Certificate Principal Balances; provided, however, that losses otherwise allocable to the Class 4-A-1 Certificates pursuant to this clause will be borne by the Class 4-A-2 Certificates, until the Class Principal Balance of the Class 4-A-2 Certificates is reduced to zero; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Loan Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and Loan, (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan, (3) the Group 3 Certificates, in the case of an Excess Loss on a Group 3 Mortgage Loan, (4) the Group 4 Certificates, in the case of an Excess Loss on a Group 4 Mortgage Loan, (5) the Group 5 Certificates, in the case of an Excess Loss on a Group 5 Mortgage Loan and (6) the Group 6 Certificates, in the case of an Excess Loss on a Group 6 Mortgage Loan (other than, in each case, the related Interest Only Certificates and the Class PO Certificates of such Certificate Group and the related Class of Class PO CertificatesGroup); and (B2) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Loan Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Loan Group 1 1, Loan Group 2, Loan Group 3, Loan Group 4, Loan Group 5 and Loan Group 6 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 1, Group 2, Group 3, Group 4, Group 5 and Group 2 6 Certificates (other than the related Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Component, pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component Component, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Loan Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates (other than the Class 1-A-2 Certificates) and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Loan Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO 1-A-2 Certificates, Principal Only Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Loan Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Loan Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii4.03(d)(ii)(A). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, Percentage of any Recovery on any Mortgage Loan in Collateral Group 1each Loan Group; and (ii) to the Classes of Senior Certificates (other than the Class PO Principal Only Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Loan Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Trustee shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Certificate Principal Balance of each such Class is reduced to zero; and (A) with respect to such losses related to Group 1 Mortgage Loans, and second to the Senior Certificates (or in the case of the Class 1-A-5 CertificatesA1A, the Components thereof) of the related Certificate Group (not including the related Interest Only Class 1-A1B and the Class PO Certificates) A-R Certificates and PO-1 Component, pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Certificate Principal Balance or Component Principal Balance of each such Class has been or Component is reduced to zero or zero; provided, however, the aggregate Class 1-A1B Certificates will bear the principal portion of all Realized Losses allocable to the Class 1-A1A Certificates for so long as the Class 1-A1B Certificates are outstanding; and (B) with respect such losses related to Loan Group 2 Mortgage Loans, to the Class 2-A1A1, Class 2-A1A2, Class 2-A1B and Class 2-A1C Certificates and the PO-2 Component, pro rata, until the Class Certificate Principal Balance or Component Principal Balance of each such Class or Component has been is reduced to zero, as applicable; provided, however, that (A) the all losses allocable to the Class 12-A-1 CertificatesA1A1, under this paragraphClass 2-A1A2, Class 2-A1B and Class 2-A1C Certificates will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zerosequentially first, (B) the losses allocable to the Class 12-A-2 CertificatesA1C, under this paragraphsecond, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 12-A-3 CertificatesA1B Certificates and third, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 12-A-4 Certificates, under this paragraph, will instead be allocated to Component 1A1A1 and Class 2-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate A1A2 Certificates, pro rata based upon their respective on Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Certificate Principal Balances)); and, for so long as such certificates are outstanding. (bc) The Class Certificate Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Securities Administrator shall aggregate the loan-level information provided by the Master Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on if any, with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related Prepayment Period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any to Net Monthly Excess LossCashflow; second, shall be allocated to the Class PO CertificatesOvercollateralized Amount, until the Class Principal Balance of the Class PO Certificates is such amount has been reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2third, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, ; and second to the Senior Certificates fourth, (or in the case of the Class 1-A-5 Certificates, the Components thereofA) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to such losses related to the ComponentsGroup 1 Mortgage Loans, their respective aggregate Certificate to the Class 1A-1A Certificates, until the Class Principal BalancesBalance of such Class is reduced to zero; and (B) after giving effect with respect to distributions of principal on such Distribution Date losses related to the Group 2 Mortgage Loans, to the Class 2A-1A, Class 2A-1B and Class 2A-1C Certificates, sequentially, first, to the Class 2A-1C Certificates, second, to the Class 2A-1B Certificates and third, to the Class 2A-1A Certificates; in that order, until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and. (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (bc) The Class Principal Balance of first, the Class C Certificates and second, the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of (with respect to Collateral Group 1, multiplied by the principal portion related Applicable Fraction) of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class 30-PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan in any Collateral Group 1, or the Class 15-PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan in Collateral Group 3, in each case, until the Class Principal Balance of the such Class of Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (Percentage, with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion , of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 A-6 Certificates, the Components thereof) of the related Certificate Group (not including other than the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5A-6-1 until the Certificate Principal Balance of Component 1-A-5A-6-1 has been reduced to zero, zero and (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5A-6-3 2 until the Certificate Principal Balance of Component 1-A-5A-6-3 2 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificateszero; and, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 A-6 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5A-6-1, Component 1-A-5-2, Component 1-A-5-3 1 and Component 1-A-5A-6-42, pro rata, based on their outstanding Certificate Principal Balances; and; (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in contributing to any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and contributing to Collateral Group 1, (2) the Group 2 Certificates, in the case of an Excess Loss on a Mortgage Loan contributing to Collateral Group 2 and (3) the Group 3 Certificates, in the case of an Excess Loss on a Pool 2 Mortgage Loan (other than, in each case, than the related Class PO Certificates and the Interest Only Certificates in the case of such Certificate the Group 1 Certificates and the related Class of Class PO Group 2 Certificates, respectively); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)Loss); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class 15-PO in respect of any PO Deferred Amounts for Collateral Group 3, and the amount of any payments on the Class 30-PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) ), and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 1, Group 2 and Group 2 3 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 A-6 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5A-6-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5A-6-4 2 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii4.03(d)(ii)(4). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) (A) to the Class 15-PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 3 and (B) to the Class 30-PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group or Certificate Groups corresponding to the Collateral Group of to which the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior Prior to each Distribution Date, the Master Servicer Servicer, based solely on the information provided by the related Servicer, shall determine the total amount of Realized Losses, including if any, with respect to each Loan. All Realized Losses, other than Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans Losses, shall be allocated as follows: : (i) for losses allocable to principal (a) first, to the applicable PO Percentage Subordinate Certificates in the following order: Class B-5, Class B-4, Class B-3 Class B-2, Class B-1, Class M until each of their Class Principal Balances have been reduced to zero and (b) second, to the principal portion of any Realized Loss on any Senior Certificates, by Pro Rata Allocation, until the Class Principal Balances thereof have been reduced to zero; PROVIDED, HOWEVER, that prior to the Credit Support Depletion Date, if the loss is recognized with respect to a Discount Mortgage Loan, including any Excess Loss, the Discount Fraction of such loss shall first be allocated to the Class A-PO CertificatesCertificates and the remainder of such loss shall be allocated as described above in this clause (i); and (ii) for losses allocable to interest (a) first, to the Subordinate Certificates in the following order: Class B-5, Class B-4, Class B-3 Class B-2, Class B-1, Class M, in reduction of accrued but unpaid interest thereon until the amount of accrued interest thereon has been reduced to zero and then in reduction of the Class Principal Balance of such Certificates in the same order until the certificate principal balances thereof have been reduced to zero and (b) second, to the Senior Certificates thereof, by Pro Rata Allocation, until the Class Principal Balance of the Class PO Certificates is Balances thereof have been reduced to zero. Excess Losses shall be allocated among the Senior Certificates and the Subordinate Certificates by Pro Rata Allocation; and (ii) PROVIDED, HOWEVER, that prior to the applicable Non-PO Percentage (Credit Support Depletion Date if the loss is recognized with respect to Collateral Group 1 and Collateral Group 2a Discount Loan, multiplied by the related Applicable Fraction) Discount Fraction of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) such loss shall be allocated first to the Class A-PO Certificates and the remainder of such loss shall be allocated as described in clause (i) in the immediately preceding paragraph. On each Distribution Date, after giving effect to the principal distributions and allocations and reimbursement of losses as provided in this Agreement (without regard to this paragraph), if the Aggregate Certificate Principal Balance of all outstanding Classes of Certificates exceeds the aggregate Principal Balance of the Loans as of the last day of the related Due Period (after deduction of all principal payments due during the related Due Period in respect of each such Loan to the extent received or advanced and unscheduled payments of principal received during the related Prepayment Period), then such excess shall be deemed a principal loss and shall be allocated (i) first, to the Subordinate Certificates in reverse order of seniority until each of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) second, to the amountSenior Certificates, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii)Pro Rata Allocation. (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Master Servicer Trustee shall determine the total amount of Realized LossesLosses with respect to the related Distribution Date. For purposes of allocating losses to the Subordinated Certificates, including Excess Losses the related Class M Certificates will be deemed to have a lower numerical Class designation, and to be of a higher relative payment priority, than each other Class of Subordinated Certificates with respect to the allocation of such total amount as set forth belowrelated Aggregate Loan Group. Realized Losses occurring on the Mortgage Loans with respect to any Distribution Date shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount a Mortgage Loan, including any Excess Loss, Loan in a Loan Group shall be allocated to the Class related PO CertificatesClass, until the Component Balance or Class Certificate Principal Balance of Balance, as the Class PO Certificates case may be, thereof is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Subordinated Certificates with respect to the related Aggregate Loan Group in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Certificate Balance of each such Class is reduced to zero, and second to the related Senior Certificates (or other than any Notional Amount Certificates, if applicable, and the related PO Class), pro rata on the basis of their respective Class Certificate Balances except that the Non-PO Percentage of (w) any Realized Losses on the Mortgage Loans in the case of Loan Group 1 that would otherwise be allocated to the Class 1-A-1 and Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and Certificates will instead be allocated to the Class PO Certificates1-A-7 Certificates as follows: (i) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated in an amount up to Component 1-A-5-1 until the product of approximately 84.39% and the Class Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero A-7 Certificates and (Dii) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated with respect to the Class 1-A-5 Certificates, other than in accordance with an amount up to the preceding proviso, will be allocated between Component product of approximately 15.61% and the Class Certificate Balance of the Class 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 A-7 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, until the related Interest Only Class Certificate Balance of the Class 1-A-7 Certificates of such Certificate is reduced to zero, (x) any Realized Losses on the Mortgage Loans in Loan Group and 1 that would otherwise be allocated to the related Class of 1-A-3 Certificates will instead be allocated to the Class PO Certificates); and (B) each Class of Subordinate 1-A-8 Certificates, pro rata based upon until its Class Certificate Balance is reduced to zero, (y) any Realized Losses on the Mortgage Loans in Loan Group 2 that would otherwise be allocated to the Class 2-A-2 and Class 2-A-4 Certificates will instead be allocated to the Class 2-A-3 and Class 2-A-7 Certificates, respectively, until their respective Class Principal Certificate Balances after giving effect are reduced to distributions of principal zero, and (z) any Realized Losses on such Distribution Date (except, the Mortgage Loans in Loan Group 4 that would otherwise be allocated to the case of Class 4-A-1 will instead be allocated to the Subordinate Class 4-A-2 Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective until its Class Principal Balances)); andCertificate Balance is reduced to zero. (b) The Class Principal Certificate Balance of the Class of Subordinate Subordinated Certificates then outstanding with the highest numerical Class designation with respect to an Aggregate Loan Group shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the related Class PO Certificates in respect of any Class PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Certificate Balances of all outstanding Classes of Certificates in the related Aggregate Certificate Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loansand Class PO Deferred Amounts on such Distribution Date) exceeds the Aggregate Pool sum of the aggregate Stated Principal Balance of the Mortgage Loans in such Aggregate Loan Group for the following Distribution Date, less Date and any Deficient Valuations occurring before amounts in the Bankruptcy Loss Coverage Amount has been reduced Supplemental Loan Account as of that Distribution Date with respect to zero and less the PO Percentage of any Discount Mortgage Loans; andsuch Aggregate Loan Group. (c) Any Realized Losses allocated to a Class of Certificates or any reduction in the Class Certificate Balance of a Class of Certificates pursuant to Section 4.04(a) above shall be allocated among the Certificates of such Class in proportion to their respective Certificate Balances. (d) Any allocation of Realized Losses to a Certificate or a to any Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Certificate, pursuant to Section 4.03(a) or (b4.04(a) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component Balance thereof, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “"Certificate Principal Balance” herein; " or "Component Balance," as the case may be. Except as provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO CertificatesSection 4.04(a)(i) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of above, all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Component Certificates pursuant will be allocated pro rata to this Section 4.03(e) shall not reduce the Class Principal Balance of such Classrelated Components.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. . (I) Realized Losses occurring on the with respect to Group 1 Mortgage Loans and Group 2 Mortgage Loans shall be allocated as follows: (i) the applicable PO A-P Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated to the Class PO Certificates, A-P Certificates until the Class Principal Balance of the such Class PO Certificates is reduced to zero; and (ii) (1) the applicable Non-PO A-P Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Group 1&2 Junior Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Group 1&2 Junior Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second (A) with respect to such losses occurring with respect to Group 1 Mortgage Loans, to the Senior Classes of Group 1 Certificates (or in other than the case of the Notional Amount Certificates and Class 1A-A-5 P Certificates), the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Certificate Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificateswith respect to such losses occurring with respect to Group 2 Mortgage Loans, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only Notional Amount Certificates and Class PO A-P Certificates) and Subordinate Certificates (after giving effect ), pro rata on the basis of their respective Class Principal Balances immediately prior to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following related Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount Date until each such Class has been reduced to zero and less the PO Percentage of any Discount Mortgage Loanszero; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided provided, however, that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to after the Cross-Over Date, with respect the losses allocated to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of 1-A-2 Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, under this paragraph will instead be increased, as follows: (i) first, up allocated to the amount of the NonClass 1-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior A-3 Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of as long as the Class Principal Balance of the Class 1-A-5 A-3 Certificates under this clause will be allocated has not been reduced to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances)zero; and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (ai) On or prior to each any Distribution Date, (x) the Master Servicer shall determine applicable AP Percentage of the total amount principal portion of each Realized LossesLoss (other than any Excess Loss) in respect of a Discount Mortgage Loan in Pool 2 will be allocated to and reduce the Component Principal Amount of the AP(2) Component until its Component Principal Amount has been reduced to zero, including Excess Losses and the allocation applicable AP Percentage of such total amount as set forth below. the principal portion of each Realized Losses occurring on the Loss (other than any Excess Loss) in respect of a Discount Mortgage Loans shall Loan in Pool 3 will be allocated as follows: to and reduce the Component Principal Amount of the AP(3) Component until its Component Principal Amount has been reduced to zero; and (y) (i) the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loan in Pool 1 or Pool 4 or (ii) the applicable PO Non-AP Percentage of the principal portion of each Realized Loss (other than any Excess Loss) in respect of a Mortgage Loan in Pool 2 or Pool 3, shall be allocated in the following order of priority: first, to the Class B6 Certificates, until the Class Principal Amount thereof has been reduced to zero; second, to the Class B5 Certificates, until the Class Principal Amount thereof has been reduced to zero; third, to the Class B4 Certificates, until the Class Principal Amount thereof has been reduced to zero; fourth, to the Class B3 Certificates, until the Class Principal Amount thereof has been reduced to zero; fifth, to the Class B2 Certificates, until the Class Principal Amount thereof has been reduced to zero; sixth, to the Class B1 Certificates, until the Class Principal Amount thereof has been reduced to zero; and seventh, to the related Classes of Non-AP Senior Certificates, pro rata, in accordance with their Class Principal Amounts. (b) With respect to any Distribution Date, (i) the principal portion of any Excess Loss in respect of a Mortgage Loan in Pool 1 or Pool 4 or (ii) the applicable Non-AP Percentage of the principal portion of any Realized Excess Loss on any Discount in respect of a Mortgage Loan, including any Excess LossLoan in Pool 2 or Pool 3, shall be allocated allocated, pro rata, to the Class PO Certificates, until Subordinate Certificates and related Non-AP Senior Certificate or Certificates on the basis of the Apportioned Principal Balances of the Classes of Subordinate Certificates and Class Principal Balance Amounts of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO AP Senior Certificates. The applicable AP Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized an Excess Loss with respect to any Mortgage Loan (other than an Excess Lossa Debt Service Reduction) shall in respect of a Mortgage Loan in Pool 2 and Pool 3 will be allocated first applied to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with AP(2) Component and the Class of Subordinate Certificates then outstanding with the highest numerical Class designationAP(3) Component, respectively, until the respective Class Component Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component Amount thereof has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any allocation of Realized Losses allocated to a Certificate Class of Certificates or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(a) or (b) above shall be allocated among the Certificates of such Class or Component in proportion to their respective Certificate Principal Amounts or Component Principal Amounts, as applicable. Any allocation of Realized Losses pursuant to this paragraph (c) shall be accomplished by reducing the Certificate Principal Balance of such Certificate Amount or Component immediately following Principal Amounts of the distributions made related Certificates or Components on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”Section 5.03(d). (d) Prior Realized Losses allocated in accordance with this Section 5.03 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 the Cross-Over distributions made on such Distribution Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and except that the aggregate Certificate Principal Balance amount of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based AP Certificates on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, such Distribution Date will be increased, by the amount taken into account in determining distributions in respect of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each any related AP Deferred Amount for such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii)date. (e) With respect to any On each Distribution Date on or after the Cross-Over Date, the Trust Administrator Subordinate Certificate Writedown Amount for such date shall distribute the amount of any Recovery on effect a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan corresponding reduction in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance Amount of the lowest ranking Class of outstanding Subordinate Certificates, which reduction shall occur on such ClassDistribution Date after giving effect to distributions made on such Distribution Date.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Securities Administrator shall aggregate the loan-level information provided by the Master Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any to Net Monthly Excess LossCashflow; second, shall be allocated to the Class PO CertificatesOvercollateralized Amount, until the Class Principal Balance of the Class PO Certificates is such amount has been reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2third, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero; and (A) with respect such losses related to Loan Group 1 Mortgage Loans, and second to the Senior Certificates (or in the case of the Class 1-A-5 1A-1A and Class 1A-1B Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been is reduced to zero or zero; provided, however, the aggregate Certificate Class 1A-1B Certificates will bear the principal portion of all realized losses allocable to the Class 1A-1A Certificates for so long as the Class 1A-1B Certificates are outstanding; and (B) with respect such losses related to Loan Group 2 Mortgage Loans, to the Class 2A-1A, Class 2A-1B and Class 2A-1C Certificates, pro rata, until the Class Principal Balance of each such Component has been Class is reduced to zero, as applicable; provided, however, that (A) the all losses allocable to the Class 1-A-1 Certificates2A-1A, under this paragraph, Class 2A-1B and Class 2A-1C Certificates will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable sequentially to the Class 1-A-2 Certificates2A-1C, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero 2A-1B and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 2A-1A Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificatesthat order, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of for so long as such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); andcertificates are outstanding. (bc) The Class Principal Balance of first, the Class C Certificates and second, the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated (A) to the Class 15-PO CertificatesCertificates in the case of a Realized Loss occurring on any Group 1, Group 3 or Group 5 Discount Mortgage Loan, until the Class Principal Balance of the Class 15-PO Certificates is reduced to zero; andand (B) to the Class 30-PO Certificates, in the case of a Realized Loss occurring on any Group 2 or Group 4 Discount Mortgage Loan, until the Class Principal Balance of the Class 30-PO Certificates is reduced to zero; (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Principal Only Certificates) pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that after the Cross-Over Date, (Aa) the losses allocable to the Class 12-A-8 Certificates, under this paragraph, will instead be allocated to the Class 2-A-9 Certificates until the Class Principal Balance of the Class 2-A-9 Certificates is reduced to zero, (b) the losses allocable to the Class 2-A-11 Certificates, under this paragraph, will instead be allocated to the Class 2-A-12 Certificates until the Class Principal Balance of the Class 2-A-12 Certificates is reduced to zero, (c) the losses allocable to the Class 4-A-1 Certificates, under this paragraph, will instead be allocated to Component 1the Class 4-A-5-1 A-2 Certificates until the Certificate Class Principal Balance of Component 1the Class 4-A-5-1 has been A-2 Certificates is reduced to zero, zero and (Bd) the losses allocable to the Class 15-A-2 Certificates, under this paragraph, will instead be allocated to Component 1the Class 5-A-5-2 A-3 Certificates until the Certificate Class Principal Balance of Component 1the Class 5-A-5-2 has been A-3 Certificates is reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) Loan; the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan Loan; the Group 3 Certificates, in the case of an Excess Loss on a Group 3 Mortgage Loan; the Group 4 Certificates, in the case of an Excess Loss on a Group 4 Mortgage Loan; and the Group 5 Certificates, in the case of an Excess Loss on a Group 5 Mortgage Loan; (other than, in each case, the related Interest Only Certificates and Principal Only Certificates of such Certificate Group and the related Class of Class PO Certificates); Group) and (B2) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (exceptor, in the case of the Subordinate Certificates, based on Certificates their pro-rata portion of the Group Subordinate Amount for the Collateral Loan Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and) after giving effect to distributions of principal on such Distribution Date. (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class 15-PO and Class 30-PO Certificates in respect of any Group PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause clauses (iiA)(ii) and (B)(ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Certificate, pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that (A) no Realized Loss with respect to any Collateral Loan Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period calendar month prior to a Distribution Date with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral a Loan Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Loan Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or ComponentClass, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances)any; and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator Trustee shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (iA) to the Class 15-PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, Percentage of any Recovery on any Mortgage Loan in Collateral a Group 1, Group 3 or Group 5 Mortgage Loan, and (B) to the Class 30-PO Certificates, the PO Percentage of any Recovery on a Group 2 or Group 4 Mortgage Loan; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Loan Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Trustee shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized LossesLosses with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on each Subgroup of the Group 1 Mortgage Loans shall be allocated as follows:to the related Class of Certificates. (ic) On each Distribution Date, Realized Losses on the applicable PO Percentage of Group 2 Mortgage Loans that occurred during the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, related Prepayment Period shall be allocated to the Class PO Certificatesas follows: first, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero; and second, and second to the Senior Class 2-A-R, Class 2-A1A, Class 2-A1B, Class 2-A1C, Class 2-A2 and Class 2-PO Certificates as follows: (or in A) with respect to such losses related to the case Subgroup 2A Mortgage Loans, to the Class 2-A-R and Class 2-A1A Certificates and the 2-PO2A Component of the Class 12-A-5 PO Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon rata, until their respective Class Principal Balances or Component Principal Balances have been reduced to zero; (or, B) with respect to such losses related to the ComponentsSubgroup 2B Mortgage Loans, to the Class 2-A1B Certificates and the 2-PO2B Component of the Class 2-PO Certificates, pro rata, until their respective aggregate Certificate Class Principal BalancesBalances or Component Principal Balances have been reduced to zero; and (C) after giving effect with respect to distributions such losses related to the Subgroup 2C Mortgage Loans, to the Class 2-A1C and Class 2-A2 Certificates (as a whole) and the 2-PO2C Component of principal on such Distribution Date the Class 2-PO Certificates, pro rata, until their respective Class Principal Balances or Component Principal Balance have been reduced to zero; provided, that, Realized Losses allocable to the Class 2-A1 and Class 2-A2 Certificates (as a whole) shall be allocated to the Class 2-A2 and Class 2-A1 Certificates, in that order, until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and; (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (bd) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (e) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Principal Balance of a Class of Certificates pursuant to Section 5.03(b), (c) or (d) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (f) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b), (c) or (bd) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Trustee shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Certificate Principal Balance of each such Class is reduced to zero; and (A) with respect to such losses related to Loan Group 1 Mortgage Loans, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only A and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the A-R Certificates and PO-1A and PO-2A Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date pro rata, until the Class Certificate Principal Balance or Component Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) the Class 2-A2 Certificates, after assuming losses related to the Loan Group 2 Mortgage Loans, will bear the principal portion of all realized losses allocable to the Class 1-A-1 CertificatesA Certificates for so long as the Class 2-A2 Certificates are outstanding; and (B) with respect such losses related to Loan Group 2 Mortgage Loans, under this paragraphto the Class 2-A1A, will instead be allocated to Component 1Class 2-A-5A1B, Class 2-1 A1C and Class 2-A2 Certificates and the PO-1B and PO-2B Components, pro rata, until the Class Certificate Principal Balance or Component Principal Balance of such Class or Component 1-A-5-1 has been is reduced to zero; provided, (B) the however, that all losses allocable to the Class 12-A-2 CertificatesA1A, under this paragraph, Class 2-A1B and Class 2-A1C Certificates will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable sequentially to the Class 12-A-3 CertificatesA1C, under this paragraph, will instead be allocated to Component 1Class 2-A-5A1B and Class 2-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 A1A Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificatesthat order, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of for so long as such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); andcertificates are outstanding; (bc) The Class Certificate Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the principal portion related Applicable Fraction) of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO CertificatesCertificates in the case of a Realized Loss occurring on any Discount Mortgage Loan in any Collateral Group, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (A) the losses allocable to the Class 1-A-1 A-5 Certificates, under this paragraph, will instead be allocated to Component the Class 1-A-5-1 A-6 Certificates until the Certificate Principal Balance of Component the Class 1-A-5-1 A-6 Certificates has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 1, Collateral Group 3 and Collateral Group 4 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 1, Group 2, Group 3 and Group 2 4 Certificates (other than the related Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows; provided, however, that any Non-PO Recovery allocated to the Class 1-A-3 Certificates shall not cause an increase in the Class Principal Balance of the Class 1-A-3 Certificates to the extent of any payments made by the Class 1-A-3 Insurer under the Class 1-A-3 Policy and shall instead be paid to the Class 1-A-3 Insurer as a reimbursement for such amounts paid under the Class 1-A-3 Policy: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or ComponentClass, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii4.03(d)(ii)(A). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (iA) to the Class PO Certificates, the PO PercentagePercentage (with respect to Collateral Group 1, multiplied by the related Applicable Fraction, ) of any Recovery on any Mortgage Loan in Collateral Group 1, Collateral Group 3 and Collateral Group 3; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that (1) any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such ClassClass and (2) any Recovery allocated to the Class 1-A-3 Certificates shall not be distributed to the Class 1-A-3 Certificates to the extent of any payments made by the Class 1-A-3 Insurer under the Class 1-A-3 Policy and shall instead be paid to the Class 1-A-3 Insurer as a reimbursement for such amounts paid under the Class 1-A-3 Policy. (f) Any Realized Losses allocated to the Class 1-A-3 Certificates will be covered by the Class 1-A-3 Policy. Any payment under the Class 1-A-3 Policy with respect to a Realized Loss allocated to the Class 1-A-3 Certificates shall not result in a further reduction to the Class Principal Balance of the Class 1-A-3 Certificates.

Allocation of Realized Losses. (a) On or prior Prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and if any, that resulted from any Cash Liquidation, Servicing Modifications, Debt Service Reduction, Deficient Valuation or REO Disposition that occurred during the allocation related Prepayment Period 117 or, in the case of a Servicing Modification that constitutes a reduction of the interest rate on a Mortgage Loan, the amount of the reduction in the interest portion of the Monthly Payment due in the month in which such total Distribution Date occurs. The amount as set forth below. of each Realized Loss shall be evidenced by an Officers' Certificate. (A) All Realized Losses occurring on the Mortgage Group I Loans (other than Excess Realized Losses) shall be allocated as follows: (i) : first, to Group I Excess Cash Flow as provided in Section 4.02(c)(iii), to the applicable PO Percentage extent of the principal portion of any Realized Loss on any Discount Mortgage LoanGroup I Excess Cash Flow for such Distribution Date; second, including any Excess Loss, shall be allocated to the Class PO CertificatesGroup II Excess Cash Flow as provided in Section 4.02(d)(v), to the extent of the Group II Excess Cash Flow for such Distribution Date remaining after distributions pursuant to Section 4.02(d)(iv); third, in reduction of the Group I Overcollateralization Amount, until the Class earlier of: (1) such amount has been reduced to zero or (2) the aggregate Certificate Principal Balance of the Class PO A Certificates equals the aggregate Stated Principal Balance of the Mortgage Loans; fourth, in reduction of the Group II Overcollateralization Amount and then the Group III Overcollateralization Amount, in each case until such amount is reduced to zero; and (ii) , meaning, that no additional Realized Losses will be allocated under any subsequent clause until the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) aggregate Certificate Principal Balance of the principal portion Class A Certificates equals the aggregate Stated Principal Balance of any Realized Loss with respect to any the Mortgage Loan (other than an Excess Loss) shall be allocated first Loans; and fifth, to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning A-I Certificates, with the such amount allocated among each Class of Subordinate Class A-I Certificates then on a pro rata basis, based on the outstanding with the highest numerical Class designation) until the respective Class Certificate Principal Balance of each such Class is reduced prior to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (or, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal to be made on such that Distribution Date Date, until the Class Certificate Principal Balance of each such Class has been reduced to zero or zero; and (B) Any Excess Realized Losses on the Group I Mortgage Loans, to the extent not covered by the related Policy, will be allocated to the Class A-I Certificates, pro rata, in an amount equal to the product of (a) the Excess Realized Losses and (b) the fraction, expressed as a percentage, the numerator of which is (x) the aggregate Certificate Principal Balance of the Class A-I Certificates, and the denominator of which is (y) the aggregate Stated Principal Balance of the Group 118 I Loans, until the Certificate Principal Balances thereof have been reduced to zero, and the remainder of such losses shall be allocated to the remaining Class A Certificates on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. (2) All Realized Losses on the Group II Loans shall be allocated as follows: (A) first, to the Group II Excess Cash Flow as provided in Section 4.02(d)(iv), to the extent of the Group II Excess Cash Flow for such Distribution Date; second, to the Group I Excess Cash Flow as provided in Section 4.02(c)(iv), to the extent of the Group I Excess Cash Flow for such Distribution Date remaining after distributions pursuant to Section 4.02(c)(iii); third, in reduction of the Group II Overcollateralization Amount, until the earliest of: (1) such amount has been reduced to zero or (2) the aggregate Certificate Principal Balance of the Class A Certificates equals the aggregate Stated Principal Balance of the Mortgage Loans; fourth, in reduction of the Group I Overcollateralization Amount and then the Group III Overcollateralization Amount, meaning, that no additional Realized Losses will be allocated to any Class of Certificates until the aggregate Certificate Principal Balance of the Class A Certificates equals the aggregate Stated Principal Balance of the Mortgage Loans; and fifth, for losses on the Group II-A Loans, to the Class A-II-A Certificates, and for losses on the Group II-B Loans, to the Class A-II-B Certificates, on a pro rata basis, in each case until the Certificate Principal Balance thereof has been reduced to zero. (B) Any Excess Realized Losses on the Group II Mortgage Loans, to the extent not covered by the related Policy, will be allocated to the Class A-II Certificates in an amount equal to the product of (a) the Excess Realized Losses and (b) the fraction, expressed as a percentage, the numerator of which is (x) the aggregate Certificate Principal Balance of the Class A-II Certificates, and the denominator of which is (y) the aggregate Stated Principal Balance of the Group II Loans, as follows: such Component Excess Realized Losses on the Group II-A Mortgage Loans will be allocated to the Class A-II-A Certificates, and then to the Class A-II-B Certificates on a pro rata basis, and then the remainder of such losses shall be 119 allocated to the remaining Class A Certificates on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero, and such Excess Realized Losses on the Group II-B Mortgage Loans will be allocated to the Class A-II-B Certificates on a pro rata basis, and then to the Class A-II-A Certificates, and then the remainder of such losses shall be allocated to the remaining Class A Certificates on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. (A) All Realized Losses on the Group III Loans (other than Excess Realized Losses) shall be allocated as follows: first, to Group II Excess Cash Flow as provided in Section 4.02(d)(iv), to the extent of the Group II Excess Cash Flow for such Distribution Date; second, to the Group I Excess Cash Flow as provided in Section 4.02(c)(iv), to the extent of the Group I Excess Cash Flow for such Distribution Date remaining after distributions pursuant to Section 4.02(c)(iii); third, in reduction of the Group III Overcollateralization Amount, until the earlier of: (1) such amount has been reduced to zero or (2) the aggregate Certificate Principal Balance of the Class A Certificates equals the aggregate Stated Principal Balance of the Mortgage Loans; fourth, in reduction of the Group II Overcollateralization Amount and then the Group I Overcollateralization Amount, in each case until such amount is reduced to zero, meaning, that no additional Realized Losses will be allocated under any subsequent clause until the aggregate Certificate Principal Balance of the Class A Certificates equals the aggregate Stated Principal Balance of the Mortgage Loans; and fifth, to the Class A-III Certificates, until the Certificate Principal Balance of such Class has been reduced to zero. (B) Any Excess Realized Losses on the Group III Mortgage Loans, to the extent not covered by the related Policy, will be allocated to the Class A-III Certificates, in each case in an amount equal to the product of (a) the Excess Realized Losses and (b) the fraction, expressed as a percentage, the numerator of which is (x) the aggregate Certificate Principal Balance of the Class A-III Certificates, and the denominator of which is (y) the aggregate Stated Principal Balance of the Group III Loans, until the Certificate Principal Balances thereof have been reduced to zero, and the remainder of such losses shall be allocated to the remaining Class A Certificates on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero. (b) Any allocation of the principal portion of Realized Losses (other than Debt Service Reductions) to the Class A Certificates shall be made by reducing the Certificate Principal Balance thereof by the amount so allocated, which allocation shall be deemed to have occurred on such Distribution Date; provided that no such reduction shall reduce the Certificate Principal Balance of the Class A-I Certificates, Class A-II Certificates or Class A-III Certificates below the aggregate Stated Principal Balance of the Group I Loans, Group II Loans or Group III Loans, as applicable. Allocations of the interest portions of Realized Losses (other than any interest rate reduction resulting from a Servicing Modification) shall be made by operation of the definition of "Accrued Certificate Interest" and by operation of the provisions of Section 4.02(c) and (d). Allocations of the interest portion of a Realized Loss resulting from an interest rate reduction in connection with a Servicing Modification shall be made by operation of the provisions of Section 4.02(c) and (d). All Realized Losses and all other losses allocated to a Class of Certificates hereunder will be allocated among the Certificates of such Class in proportion to the Percentage Interests evidenced thereby. (i) All Realized Losses on the Group I Loans shall be allocated on each Distribution Date to REMIC I Regular Interest A, until the Uncertificated Principal Balance of REMIC I Regular Interest A has been reduced to zero. All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to REMIC II Regular Interest B, until the Uncertificated Principal Balance of REMIC II Regular Interest B has been reduced to zero. All Realized Losses on the Group III Loans shall be allocated on each Distribution Date, first, to REMIC II Regular Interest A-III-OC, until the Uncertificated Principal Balance of REMIC II Regular Interest A-III-OC has been reduced to zero, as applicable; providedand second, howeverto REMIC II Regular Interest A-III-PO, that (A) the losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-1 until the Certificate Uncertificated Principal Balance of Component REMIC II Regular Interest A-III- PO has been reduced to zero. (ii) All Realized Losses on the Group I Loans shall be allocated on each Distribution Date to the following REMIC III Group I Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC III Group I Regular Interests I-AA and I-ZZ up to an aggregate amount equal to the excess of (a) the REMIC III Group I Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Group I Loans for such Distribution Date, 98% and 2%, respectively; and second, to the Uncertificated Principal Balances of REMIC III Group I Regular Interests I-AA, 98%, A-I- 1, A-A-5I-2, A-1 I-▇, ▇-▇-▇, ▇-▇-▇ ▇▇▇ ▇-▇-▇, ▇% ▇▇▇ rata, and I-ZZ, 1%, until the Uncertificated Balance of each of REMIC III Group I Regular Interests A-I-1, A-I-2, A-I-3, ▇-▇-▇, ▇-▇-▇ ▇▇▇ ▇-▇-▇ ▇▇▇▇ ▇▇▇n reduced to zero. 121 (iii) All Realized Losses on the Group II Loans shall be allocated on each Distribution Date to the following REMIC III Group II Regular Interests in the specified percentages, as follows: first, to Uncertificated Accrued Interest payable to the REMIC III Group II Regular Interests II-AA and II-ZZ up to an aggregate amount equal to the excess of (a) the REMIC III Group II Interest Loss Allocation Amount over (b) Prepayment Interest Shortfalls (to the extent not covered by Eligible Master Servicing Compensation) relating to the Group II Loans for such Distribution Date, 98% and 2%, respectively; and second, to the Uncertificated Principal Balances of REMIC III Group II Regular Interests II-AA, 98%, A-II-A, A-II-B1 and A-II-B2, 1% pro rata, and I-ZZ, 1%, until the Uncertificated Principal Balance of each of REMIC III Group II Regular Interests A-II-A, A-II-B1 and A-II-B2 have been reduced to zero. (iv) All Realized Losses on the Group III Loans shall be allocated on each Distribution Date, first, to REMIC III Regular Interest A-III-OC, until the Uncertificated Principal Balance of REMIC III Regular A-III-OC has been reduced to zero, (B) the losses allocable and second, to the Class 1REMIC III Regular Interest A-A-2 CertificatesIII-PO, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Uncertificated Principal Balance of Component 1REMIC III Regular Interest A-A-5III-2 PO has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Securities Administrator shall aggregate the loan-level information provided by the Master Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Certificate Principal Balance of each such Class is reduced to zero; and second, (A) with respect such losses related to Loan Group 1 Mortgage Loans, and second to the Senior Certificates (or in the case of the Class 1-A-5 CertificatesA1A, the Components thereof) of the related Certificate Group (not including the related Interest Only Class 1-A1B and Class A-R Certificates and the Class PO Certificates) PO-1 Component, pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Certificate Principal Balance or Component Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) the Class 1-A1B Certificates will bear the principal portion of all realized losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component A1A Certificates for so long as the Class 1-A-5A1B Certificates are outstanding; (B) with respect such losses related to Loan Group 2 Mortgage Loans, to the Class 2-1 A1A and Class 2-A1B Certificates and the PO-2 Component, pro rata, until the Class Certificate Principal Balance or Component Principal Balance of such Class or Component 1-A-5-1 has been is reduced to zero; provided, (B) however, that the Class 2-A1B Certificates will bear the principal portion of all realized losses allocable to the Class 12-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to A1A Certificates for so long as the Class 12-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; andA1B Certificates are outstanding. (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (bc) The Class Certificate Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Trustee shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Certificate Principal Balance of each such Class is reduced to zero; and (A) with respect to such losses related to Group 1 Mortgage Loans, and second to the Senior Certificates (or in the case of the Class 1-A-5 CertificatesA1A, the Components thereof) of the related Certificate Group (not including the related Interest Only Class 1-A1B, Class PO-1 and the Class PO Certificates) A-R Certificates and PO-B-1 Component, pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Certificate Principal Balance or Component Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been is reduced to zero, as applicable; provided, however, that (A) the losses Class 1-A1B Certificates will bear the principal portion of all Realized Losses allocable to the Class 1-A-1 Certificates, under this paragraph, will instead be allocated to Component A1A Certificates for so long as the Class 1-A-5A1B Certificates are outstanding; and (B) with respect such losses related to Loan Group 2 Mortgage Loans, to the Class 2-1 A1A1, Class 2-A1A2, Class 2-A1B, Class PO-2A and Class PO-2B Certificates and the PO-B-2 Component, pro rata, until the Class Certificate Principal Balance or Component Principal Balance of such Class or Component 1-A-5-1 has been is reduced to zero; provided, (B) however, the losses Class 2-A1B Certificates will bear the principal portion of all Realized Losses allocable to the Class 12-A-2 Certificates, under this paragraph, will instead be allocated to Component 1A1A1 and Class 2-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to A1A2 Certificates for so long as the Class 12-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; andA1B Certificates are outstanding; (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (bc) The Class Certificate Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated (A) to the Class 15-PO CertificatesCertificates in the case of a Realized Loss occurring on any Discount Mortgage Loan in the 15-Year Loan Groups, until the Class Principal Balance of the Class 15-PO Certificates is reduced to zero; andand (B) to the Class 30-PO Certificates, in the case of a Realized Loss occurring on any Discount Mortgage Loan in the 30-Year Loan Groups, until the Class Principal Balance of the Class 30-PO Certificates is reduced to zero; (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Principal Only Certificates) pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that after the Cross-Over Date, (Aa) the losses allocable to the Class 1-A-1 Certificates, A-10 and Class 1-A-11 Certificates under this paragraph, paragraph will instead be allocated to Component the Class 1-A-5-1 A-12 Certificates until the Certificate Class Principal Balance of Component the Class 1-A-5-1 has been A-12 Certificates is reduced to zero, (Bb) the losses allocable to the Class 13-A-2 Certificates, A-7 Certificates under this paragraph, paragraph will instead be allocated to Component 1the Class 3-A-5-2 A-8 Certificates until the Certificate Class Principal Balance of Component 1the Class 3-A-5-2 has been A-8 Certificates is reduced to zero, (Cc) the losses allocable to the Class 14-A-3 Certificates, A-1 Certificates under this paragraph, paragraph will instead be allocated to Component 1the Class 4-A-5-3 A-2 Certificates until the Certificate Class Principal Balance of Component 1the Class 4-A-5-3 has been A-2 Certificates is reduced to zero zero, and (Dd) the losses allocable to the Class 15-A-4 Certificates, A-13 Certificates under this paragraph, paragraph will instead be allocated to Component 1the Class 5-A-5-4 A-14 Certificates until the Certificate Class Principal Balance of Component 1the Class 5-A-5-4 has been A-14 Certificates is reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balanceszero; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) Loan; the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan Loan; the Group 3 Certificates, in the case of an Excess Loss on a Group 3 Mortgage Loan; the Group 4 Certificates, in the case of an Excess Loss on a Group 4 Mortgage Loan; and the Group 5 Certificates, in the case of an Excess Loss on a Group 5 Mortgage Loan; (other than, in each case, the related Interest Only Certificates and Principal Only Certificates of such Certificate Group and the related Class of Class PO Certificates); Group) and (B2) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (exceptor, in the case of the Subordinate Certificates, based on Certificates their pro-rata portion of the Group Subordinate Amount for the Collateral Loan Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and) after giving effect to distributions of principal on such Distribution Date. (b) The Class Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class 15-PO and Class 30-PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause clauses (iiA)(ii) and (B)(ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loans) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Certificate, pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that (A) no Realized Loss with respect to any Collateral Loan Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period calendar month prior to a Distribution Date with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral a Loan Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Loan Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or ComponentClass, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator Trustee shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (iA) to the Class 15-PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, Percentage of any Recovery on a 15-Year Mortgage Loan, and (B) to the Class 30-PO Certificates, the PO Percentage of any Recovery on a 30-Year Mortgage Loan in Collateral Group 1Loan; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Loan Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Securities Administrator shall aggregate the loan-level information provided by the Master Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any to Net Monthly Excess LossCashflow; second, shall be allocated to the Class PO CertificatesOvercollateralization Amount, until the Class Principal Balance of the Class PO Certificates is such amount has been reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2third, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero; and (A) with respect such losses related to Loan Group 1 Mortgage Loans, and second to the Senior Certificates (or in the case of the Class 1-A-5 1A-1A and Class 1A-1B Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Principal Balance of each such Class has been is reduced to zero or zero; provided, however, the aggregate Certificate Class 1A-1B Certificates will bear the principal portion of all realized losses allocable to the Class 1A-1A Certificates for so long as the Class 1A-1B Certificates are outstanding; and (B) with respect such losses related to Loan Group 2 Mortgage Loans, to the Class 2A-1A, Class 2A-1B and Class 2A-1C Certificates, pro rata, until the Class Principal Balance of each such Component has been Class is reduced to zero, as applicable; provided, however, that (A) the all losses allocable to the Class 1-A-1 Certificates2A-1A, under this paragraph, Class 2A-1B and Class 2A-1C Certificates will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zero, (B) the losses allocable sequentially to the Class 1-A-2 Certificates2A-1C, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero 2A-1B and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 2A-1A Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificatesthat order, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of for so long as such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (except, in the case of the Subordinate Certificates, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and (b) certificates are outstanding. The Class Principal Balance of first, the Class C Certificates and second, the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less . Any Realized Loss allocated to a Class of Certificates or any Deficient Valuations occurring before reduction in the Bankruptcy Loss Coverage Amount has been reduced Class Principal Balance of a Class of Certificates pursuant to zero and less the PO Percentage of any Discount Mortgage Loans; and Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Servicer shall determine the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage LoanLoss, including any Excess Loss, shall be allocated to the Class PO CertificatesCertificates in the case of a Realized Loss occurring on any Mortgage Loan, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to a any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Junior Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Junior Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second (1) with respect to such losses occurring with respect to Group 1 Mortgage Loans, to the Senior Classes of Group 1 Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) ), pro rata based upon on the basis of their respective Class Principal Balances (or, with respect immediately prior to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such related Distribution Date until the Class Principal Balance of each such Class has been reduced to zero or zero; (2) with respect to such losses occurring with respect to Group 2 Mortgage Loans, to the aggregate Certificate Classes of Group 2 Certificates (not including the Interest Only Certificates), pro rata on the basis of their respective Class Principal Balances immediately prior to the related Distribution Date until the Class Principal Balance of each such Component Class has been reduced to zero; and (3) with respect to such losses occurring with respect to Group 3 Mortgage Loans, as applicable; provided, however, that (A) the losses allocable to the Classes of Group 3 Certificates (not including the related Interest Only Certificates), pro rata on the basis of their respective Class 1-A-1 Certificates, under this paragraph, will instead be allocated Principal Balances immediately prior to Component 1-A-5-1 the related Distribution Date until the Certificate Class Principal Balance of Component 1-A-5-1 each such Class has been reduced to zero, (B) the losses allocable to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) Loan, the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan, or the Group 3 Certificates, in the case of an Excess Loss on a Group 3 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); Group) and (B2) each Class of Subordinate Junior Certificates, pro rata based upon their respective Class Principal Balances after giving effect to distributions of principal on such Distribution Date (exceptor, in the case of the Subordinate Certificates, based on Junior Certificates their pro-rata portion of the Group Subordinate Amount for the Collateral Loan Group which incurred the Excess Loss (based on their respective Class Principal Balances)); and) after giving effect to distributions of principal on such Distribution Date. (b) The Class Principal Balance of the Class of Subordinate Junior Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any Group PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority thirdAmounts, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 1, Group 2, Group 3 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Junior Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool Principal Balance for the following Distribution Date, less any Deficient Valuations related to Group 1, Group 2 or Group 3 occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (c) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component Certificate, pursuant to Section 4.03(a) or (b) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof, as applicable, immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Loan Group shall be allocated to reduce the Certificate Principal Balance of a Senior Group 1, Group 2 or Group 3 Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only Group 1, Group 2, Group 3 and Class PO Certificates) and Subordinate Junior Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.

Allocation of Realized Losses. (a) On or prior to each Distribution Determination Date, the Securities Administrator shall aggregate the loan-level information provided by the Master Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on the Mortgage Loans shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Principal Balance of each such Class is reduced to zero, and second to the Senior Certificates (or in the case of the Class 1-A-5 Certificates, the Components thereof) of the related Certificate Group (not including the related Interest Only and the Class PO Certificates) pro rata based upon their respective Class Principal Balances (orif any, with respect to the ComponentsMortgage Loans in each Loan Group for the related Payment Date and include such information in the Payment Date Statement. (b) Realized Losses on Mortgage Loans will be allocated among the Notes as follows: 95 first, their respective aggregate Certificate Principal Balances) after giving effect sequentially, to distributions of principal on such Distribution Date the Class B-6, Class B-5, Class B-4, Class B-3, Class B-2 and Class B-1 Notes, in that order, until the Class Principal Balance of each such Class has been reduced to zero or the aggregate Certificate Principal Balance of each such Component has been reduced to zero, as applicable; provided, however, that (Ai) if any loss is incurred with respect to a Group 4 Discount Loan, the losses allocable Group 4 Discount Fraction of such loss will first be allocated to the Class 1A-A-1 Certificates, under this paragraph, PO Notes and the remainder of such loss will instead be allocated to Component 1the Subordinate Notes as described in this clause first and (ii) if any loss is incurred with respect to a Group 5 Discount Loan, the Group 5 Discount Fraction of such loss will first be allocated to the Class A-A-5-1 until PO Notes and the Certificate Principal Balance remainder of Component 1-A-5-1 has been reduced such loss will be allocated to zerothe Subordinate Notes as described in this clause first; and second, but only to the extent that any Realized Losses on the Mortgage Loans remaining after the allocations in clause first exceeds amounts then on deposit in the Reserve Fund for such Payment Date, (Ba) with respect to Realized Losses related to the losses allocable Group 1 Mortgage Loans, sequentially, to the Class 1-A-2 Certificates, under this paragraph, will instead be allocated to Component Notes and Class 1-A-5A-1 Notes, in that order, until their respective Class Principal Balances have been reduced to zero; (b) with respect to Realized Losses related to the Group 2 Mortgage Loans, sequentially, to the Class 2-2 A-2 Notes and Class 2-A-1 Notes, in that order, until their respective Class Principal Balances have been reduced to zero; (c) with respect to Realized Losses related to the Certificate Group 3 Mortgage Loans, sequentially, to the Class 3-A-2 Notes and Class 3-A-1 Notes, in that order, until their respective Class Principal Balance of Component 1Balances have been reduced to zero; (d) with respect to Realized Losses related to the Group 4 Mortgage Loans, sequentially, to the Class 4-A-5A-2 Notes and Class 4-2 has A-1 Notes, in that order, until their respective Class Principal Balances have been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, furtherhowever, that if any Realized Loss loss is incurred with respect to a Group 4 Discount Loan, the Group 4 Discount Fraction of such loss will first be allocated to the Class 1A-A-5 Certificates, other than in accordance with PO Notes and the preceding proviso, remainder of such loss will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 as described above in clause first; and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iiie) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the Realized Losses related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) to the Group 1 Certificates5 Mortgage Loans, sequentially, to the Class 5-A-2 Notes and Class 5-A-1 Notes, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificatesthat order, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate Certificates, pro rata based upon until their respective Class Principal Balances after giving effect have been reduced to distributions of principal on such Distribution Date (exceptzero, in the case of the Subordinate Certificatesprovided, based on their pro-rata portion of however, that if any loss is incurred with respect to a Group 5 Discount Loan, the Group Subordinate Amount for 5 Discount Fraction of such loss will first be allocated to the Collateral Group which incurred Class A-PO Notes and the Excess Loss (based on their respective Class Principal Balances)); andremainder of such loss will be allocated as described above in clause first. (bc) [Reserved]. (d) The Class Principal Balance of the Class of Subordinate Certificates Notes then outstanding with the highest numerical Class designation shall be reduced on each Distribution Payment Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates any Notes (after giving effect to the distribution payments of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Payment Date) exceeds the Aggregate Pool aggregate of the sum of (i) the Scheduled Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before Payment Date and (ii) amounts then on deposit in the Bankruptcy Loss Coverage Amount has been reduced to zero and less Reserve Fund (the PO Percentage of any Discount Mortgage Loans; and"Writedown Amount"). (ce) Any Realized Loss allocated to a Class of Notes or any reduction in the Class Principal Balance of a Class of Notes pursuant to Section 5.03 shall be allocated among the Notes of such Class, pro rata, in proportion to their respective Note Principal Amounts. (f) Any allocation of Realized Losses to a Certificate or a Component Note or any reduction in the Certificate Note Principal Balance Amount of a Certificate or a Component Note pursuant to Section 4.03(a) or (b) above 5.03 shall be accomplished by reducing the Certificate Note Principal Balance of such Certificate or Component Amount thereof immediately following the distributions payments made on the related Distribution Payment Date in accordance with the definition of “Certificate "Class Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class."

Allocation of Realized Losses. (a) On or prior to each Distribution Date, the Master Trustee shall aggregate the loan-level information provided by the Servicer shall determine with respect to the total amount of Realized Losses, including Excess Losses and the allocation of such total amount as set forth below. Realized Losses occurring on with respect to the Mortgage Loans in each Loan Group for the related Distribution Date and include such information in the Distribution Date Statement. (b) On each Distribution Date, Realized Losses that occurred during the related prepayment period shall be allocated as follows: (i) the applicable PO Percentage of the principal portion of any Realized Loss on any Discount Mortgage Loan: first, including any Excess Loss, shall be allocated to the Class PO Certificates, until the Class Principal Balance of the Class PO Certificates is reduced to zero; and (ii) the applicable Non-PO Percentage (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Realized Loss with respect to any Mortgage Loan (other than an Excess Loss) shall be allocated first to the Subordinate Certificates in reverse order of their respective numerical Class designations (beginning with the Class of Subordinate Certificates then outstanding with the highest numerical Class designation) until the respective Class Certificate Principal Balance of each such Class is reduced to zero; and (A) with respect to such losses related to Group 1 Mortgage Loans, and second to the Senior Certificates (or in the case of the Class 1-A-5 CertificatesA1A, the Components thereof) of the related Certificate Group (not including the related Interest Only Class 1-A1B and the Class PO Certificates) A-R Certificates and PO-1 Component, pro rata based upon their respective Class Principal Balances (orrata, with respect to the Components, their respective aggregate Certificate Principal Balances) after giving effect to distributions of principal on such Distribution Date until the Class Certificate Principal Balance or Component Principal Balance of each such Class has been or Component is reduced to zero or zero; provided, however, the aggregate Class 1-A1B Certificates will bear the principal portion of all Realized Losses allocable to the Class 1-A1A Certificates for so long as the Class 1-A1B Certificates are outstanding; and (B) with respect such losses related to Loan Group 2 Mortgage Loans, to the Class 2-A1A, Class 2-A1B, Class 2-A1C1 and Class 2-A1C2 Certificates and the PO-2 Component, pro rata, until the Class Certificate Principal Balance or Component Principal Balance of each such Class or Component has been is reduced to zero, as applicable; provided, however, that (A) the all losses allocable to the Class 12-A-1 CertificatesA1A, under this paragraphClass 2-A1B, Class 2-A1C1 and Class 2-A1C2 Certificates will instead be allocated to Component 1-A-5-1 until the Certificate Principal Balance of Component 1-A-5-1 has been reduced to zerosequentially first, (B) the losses allocable to the Class 12-A-2 Certificates, under this paragraph, will instead be allocated to Component 1A1C1 and Class 2-A-5-2 until the Certificate Principal Balance of Component 1-A-5-2 has been reduced to zero, (C) the losses allocable to the Class 1-A-3 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-3 until the Certificate Principal Balance of Component 1-A-5-3 has been reduced to zero and (D) the losses allocable to the Class 1-A-4 Certificates, under this paragraph, will instead be allocated to Component 1-A-5-4 until the Certificate Principal Balance of Component 1-A-5-4 has been reduced to zero provided, further, that any Realized Loss allocated to the Class 1-A-5 Certificates, other than in accordance with the preceding proviso, will be allocated between Component 1-A-5-1, Component 1-A-5-2, Component 1-A-5-3 and Component 1-A-5-4, pro rata, based on their outstanding Certificate Principal Balances; and (iii) the applicable Non-PO Percentage (and with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) of the principal portion of any Excess Losses occurring on any Mortgage Loan in any Collateral Group shall be allocated among (A) (1) the Group 1 Certificates, in the case of an Excess Loss on a Group 1 Mortgage Loan and (2) the Group 2 Certificates, in the case of an Excess Loss on a Group 2 Mortgage Loan (other than, in each case, the related Interest Only Certificates of such Certificate Group and the related Class of Class PO Certificates); and (B) each Class of Subordinate A1C2 Certificates, pro rata based upon their respective on Class Certificate Principal Balances after giving effect Balances, second, to distributions of principal on such Distribution Date (exceptthe Class 2-A1B Certificates and third, to the Class 2-A1A Certificates, in the case of the Subordinate Certificatesthat order, based on their pro-rata portion of the Group Subordinate Amount for the Collateral Group which incurred the Excess Loss (based on their respective Class Principal Balances)); andso long as such certificates are outstanding; (bc) The Class Certificate Principal Balance of the Class of Subordinate Certificates then outstanding with the highest numerical Class designation shall be reduced on each Distribution Date by the sum of (i) the amount of any payments on the Class PO Certificates in respect of any PO Deferred Amounts for Collateral Group 1 pursuant to Section 4.02(a) priority third, sub-clause (ii) and (ii) the amount, if any, by which the aggregate of the Class Certificate Principal Balances of all outstanding Classes of Group 1 and Group 2 Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates (after giving effect to the distribution of principal and the allocation of Realized Losses with respect to the Mortgage Loanson such Distribution Date) exceeds the Aggregate Pool aggregate of the Stated Principal Balance Balances of all the Mortgage Loans for the following Distribution Date, less any Deficient Valuations occurring before the Bankruptcy Loss Coverage Amount has been reduced to zero and less the PO Percentage of any Discount Mortgage Loans; and. (d) Any Realized Loss allocated to a Class of Certificates or any reduction in the Class Certificate Principal Balance of a Class of Certificates pursuant to Section 5.03(b) or (c) shall be allocated among the Certificates of such Class, pro rata, in proportion to their respective Certificate Principal Balances. (e) Any allocation of Realized Losses to a Certificate or a Component or any reduction in the Certificate Principal Balance of a Certificate or a Component pursuant to Section 4.03(a5.03(b) or (bc) above shall be accomplished by reducing the Certificate Principal Balance of such Certificate or Component thereof immediately following the distributions made on the related Distribution Date in accordance with the definition of “Certificate Principal Balance” herein; provided that no Realized Loss with respect to any Collateral Group shall be allocated to reduce the Certificate Principal Balance of a Senior Certificate or a Component in any Certificate Group (other than the related Class PO Certificates) to the extent that such allocation would reduce the aggregate Certificate Principal Balance of all of the Senior Certificates (other than the Interest Only and Class PO Certificates) and Subordinate Certificates to an amount less than the Aggregate Pool Principal Balance for the following Distribution Date minus any related Deficient Valuations occurring before the Bankruptcy Loss Coverage Termination Date and minus the PO Percentage of any Discount Mortgage Loans (such limitation, the “Loss Allocation Limitation.”). (d) Prior to the Cross-Over Date, with respect to any Non-PO Recoveries received during the related Prepayment Period with respect to any Mortgage Loans, the Class Principal Balance of one or more Classes of Certificates and the aggregate Certificate Principal Balance of one or more Components that have previously had Realized Losses allocated, will be increased, as follows: (i) first, up to the amount of the Non-PO Recoveries with respect to any Collateral Group, the Class Principal Balance of each Class of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) and the aggregate Certificate Principal Balance of each Component in the Certificate Group corresponding to such Collateral Group will be increased, pro rata, up to the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class or Component, if any over (y) amounts previously applied to the increase of the Class Principal Balance of such Class or aggregate Certificate Principal Balance of such Component pursuant to this Section 4.03(d)(i) (any increase of the Class Principal Balance of the Class 1-A-5 Certificates under this clause will be allocated to increase the Class Principal Balance of the Class 1-A-5-1 component, the Class 1-A-5-2 component, the Class 1-A-5-3 component and the Class 1-A-5-4 component, pro rata, based on Class Principal Balances); and (ii) second, up to the amount of the Non-PO Recoveries related to each Collateral Group remaining after allocation pursuant to the preceding clause (i), the Class Principal Balance of each Class of Subordinate Certificates, in order of seniority, will be increased, by the amount of the excess, if any, of (x) unrecovered Realized Losses previously allocated to each such Class, if any, over (y) amounts previously applied to the increase of the Class Principal Balance of such Class pursuant to this Section 4.03(d)(ii). (e) With respect to any Distribution Date on or after the Cross-Over Date, the Trust Administrator shall distribute the amount of any Recovery on a Mortgage Loan received during the calendar month prior to that Distribution Date as follows: (i) to the Class PO Certificates, the PO Percentage, multiplied by the related Applicable Fraction, of any Recovery on any Mortgage Loan in Collateral Group 1; and (ii) to the Classes of Senior Certificates (other than the Class PO Certificates and Interest Only Certificates) of the Certificate Group corresponding to the Collateral Group of the Mortgage Loan for which the Recovery was received, pro rata, the amount of the Recovery (with respect to Collateral Group 1 and Collateral Group 2, multiplied by the related Applicable Fraction) remaining after distribution pursuant to the preceding clause (i); provided, however, that any distribution to a Class of Certificates pursuant to this Section 4.03(e) shall not reduce the Class Principal Balance of such Class.