Pooling and Servicing Agreement (2006)Full Document 

Start of Preview
                     MERRILL LYNCH MORTGAGE INVESTORS, INC.
                                    Depositor

                           LITTON LOAN SERVICING LP
                                    Servicer

                                       and

                        LASALLE BANK NATIONAL ASSOCIATION
                                     Trustee

                                   ----------

                         POOLING AND SERVICING AGREEMENT
                           Dated as of October 1, 2006

                                   ----------

                           OWNIT MORTGAGE LOAN TRUST,
             MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2006-7



                                TABLE OF CONTENTS



                                                                            PAGE
                                                                            ----
                                                                         
ARTICLE I DEFINITIONS....................................................     11

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES..     60
   SECTION 2.01.  Conveyance of Mortgage Loans...........................     60
   SECTION 2.02.  Acceptance by the Trustee of the Mortgage Loans........     64
   SECTION 2.03.  Representations, Warranties and Covenants of the
                  Depositor..............................................     66
   SECTION 2.04.  Representations and Warranties of the Servicer.........     70
   SECTION 2.05.  Substitutions and Repurchases of Mortgage Loans that
                  are not "Qualified Mortgages.".........................     71
   SECTION 2.06.  Authentication and Delivery of Certificates............     71
   SECTION 2.07.  REMIC Elections........................................     72
   SECTION 2.08.  [RESERVED].............................................     77
   SECTION 2.09.  Covenants of the Servicer..............................     77
   SECTION 2.10.  [RESERVED].............................................     77
   SECTION 2.11.  Permitted Activities of the Trust......................     77
   SECTION 2.12.  Qualifying Special Purpose Entity......................     77

ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS...............     77
   SECTION 3.01.  Servicer to Service Mortgage Loans.....................     77
   SECTION 3.02.  Servicing and Subservicing; Enforcement of the
                  Obligations of Servicer................................     80
   SECTION 3.03.  Rights of the Depositor and the Trustee in Respect of
                  the Servicer...........................................     80
   SECTION 3.04.  Trustee to Act as Servicer.............................     80
   SECTION 3.05.  Collection of Mortgage Loan Payments; Collection
                  Account; Certificate Account...........................     81
   SECTION 3.06.  Collection of Taxes, Assessments and Similar Items;
                  Escrow Accounts........................................     85
   SECTION 3.07.  Access to Certain Documentation and Information
                  Regarding the Mortgage Loans...........................     85
   SECTION 3.08.  Permitted Withdrawals from the Collection Account and
                  Certificate Account....................................     85
   SECTION 3.09.  [RESERVED].............................................     88
   SECTION 3.10.  Maintenance of Hazard Insurance........................     88
   SECTION 3.11.  Enforcement of Due-On-Sale Clauses; Assumption
                  Agreements.............................................     89
   SECTION 3.12.  Realization Upon Defaulted Mortgage Loans;
                  Determination of Excess Proceeds.......................     90



                                       i



                                TABLE OF CONTENTS
                                   (continued)



                                                                            PAGE
                                                                            ----
                                                                         
   SECTION 3.13.  Trustee to Cooperate; Release of Mortgage Files........     93
   SECTION 3.14.  Documents, Records and Funds in Possession of Servicer
                  to be Held for the Trustee.............................     94
   SECTION 3.15.  Servicing Compensation.................................     95
   SECTION 3.16.  Access to Certain Documentation........................     95
   SECTION 3.17.  Annual Statement as to Compliance......................     95
   SECTION 3.18.  Reports on Assessment of Compliance and Attestation....     96
   SECTION 3.19.  Rights of the NIMs Insurer.............................     97
   SECTION 3.20.  [RESERVED].............................................     97
   SECTION 3.21.  [RESERVED].............................................     97
   SECTION 3.22.  [RESERVED].............................................     97
   SECTION 3.23.  Prepayment Charge Reporting Requirements...............     98
   SECTION 3.24.  Information to the Trustee.............................     98
   SECTION 3.25.  Indemnification........................................     98
   SECTION 3.26.  Nonsolicitation........................................     99
   SECTION 3.27.  Periodic Filings.......................................     99

ARTICLE IV DISTRIBUTIONS.................................................    105
   SECTION 4.01.  Advances...............................................    105
   SECTION 4.02.  Reduction of Servicing Compensation in Connection with
                  Prepayment Interest Shortfalls.........................    106
   SECTION 4.03.  Distributions on the REMIC Interests...................    106
   SECTION 4.04.  Distributions..........................................    106
   SECTION 4.05.  Monthly Statements to Certificateholders...............    115

ARTICLE V THE CERTIFICATES...............................................    118
   SECTION 5.01.  The Certificates.......................................    118
   SECTION 5.02.  Certificate Register; Registration of Transfer and
                  Exchange of Certificates...............................    119
   SECTION 5.03.  Mutilated, Destroyed, Lost or Stolen Certificates......    123
   SECTION 5.04.  Persons Deemed Owners..................................    123
   SECTION 5.05.  Access to List of Certificateholders' Names and
                  Addresses..............................................    123
   SECTION 5.06.  Book-Entry Certificates................................    124
   SECTION 5.07.  Notices to Depository..................................    125
   SECTION 5.08.  Definitive Certificates................................    125



                                       ii



                                TABLE OF CONTENTS
                                   (continued)



                                                                            PAGE
                                                                            ----
                                                                         
   SECTION 5.09.  Maintenance of Office or Agency........................    125
   SECTION 5.10.  Authenticating Agents..................................    125

ARTICLE VI THE DEPOSITOR AND THE SERVICER................................    126
   SECTION 6.01.  Respective Liabilities of the Depositor and the
                  Servicer...............................................    126
   SECTION 6.02.  Merger or Consolidation of the Depositor or the
                  Servicer...............................................    126
   SECTION 6.03.  Limitation on Liability of the Depositor, the Servicer
                  and Others.............................................    127
   SECTION 6.04.  Limitation on Resignation of Servicer..................    127
   SECTION 6.05.  Errors and Omissions Insurance; Fidelity Bonds.........    128

ARTICLE VII DEFAULT; TERMINATION OF SERVICER.............................    128
   SECTION 7.01.  Events of Default......................................    128
   SECTION 7.02.  Trustee to Act; Appointment of Successor...............    130
   SECTION 7.03.  Notification to Certificateholders.....................    131

ARTICLE VIII CONCERNING THE TRUSTEE......................................    132
   SECTION 8.01.  Duties of the Trustee..................................    132
   SECTION 8.02.  Certain Matters Affecting the Trustee..................    133
   SECTION 8.03.  Trustee Not Liable for Certificates or Mortgage Loans..    134
   SECTION 8.04.  Trustee May Own Certificates...........................    134
   SECTION 8.05.  Trustee's Compensation and Expenses....................    134
   SECTION 8.06.  Indemnification and Expenses of Trustee................    135
   SECTION 8.07.  Eligibility Requirements for Trustee...................    136
   SECTION 8.08.  Resignation and Removal of Trustee.....................    136
   SECTION 8.09.  Successor Trustee......................................    137
   SECTION 8.10.  Merger or Consolidation of Trustee.....................    137
   SECTION 8.11.  Appointment of Co-Trustee or Separate Trustee..........    137
   SECTION 8.12.  Tax Matters............................................    139

ARTICLE IX TERMINATION...................................................    141
   SECTION 9.01.  Termination upon Liquidation or Auction of all Mortgage
                  Loans..................................................    141
   SECTION 9.02.  Final Distribution on the Certificates.................    142
   SECTION 9.03.  Additional Termination Requirements....................    143

ARTICLE X MISCELLANEOUS PROVISIONS.......................................    144
   SECTION 10.01. Amendment..............................................    144
   SECTION 10.02. Counterparts...........................................    146



                                      iii



                                TABLE OF CONTENTS
                                   (continued)



                                                                            PAGE
                                                                            ----
                                                                         
   SECTION 10.03. Governing Law..........................................    146
   SECTION 10.04. Intention of Parties...................................    146
   SECTION 10.05. Notices................................................    147
   SECTION 10.06. Severability of Provisions.............................    147
   SECTION 10.07. Assignment.............................................    148
   SECTION 10.08. Limitation on Rights of Certificateholders.............    148
   SECTION 10.09. Inspection and Audit Rights............................    148
   SECTION 10.10. Certificates Nonassessable and Fully Paid..............    149
   SECTION 10.11. Third Party Rights.....................................    149
   SECTION 10.12. Additional Rights of the NIMs Insurer..................    149
   SECTION 10.13. Assignment; Sales; Advance Facilities..................    149
   SECTION 10.14. Compliance with Regulation AB..........................    151



                                       iv



                                    EXHIBITS

EXHIBIT A   FORMS OF CERTIFICATES
EXHIBIT B-1 MORTGAGE LOAN SCHEDULE - MORTGAGE POOL
EXHIBIT B-2 MORTGAGE LOAN SCHEDULE - GROUP ONE MORTGAGE LOANS
EXHIBIT B-3 MORTGAGE LOAN SCHEDULE - GROUP TWO MORTGAGE LOANS
EXHIBIT C   [RESERVED]
EXHIBIT D   FORM OF TRUSTEE CERTIFICATION
EXHIBIT E-1 FORM OF CLASS R TRANSFEREE'S LETTER AND AFFIDAVIT
EXHIBIT E-2 FORM OF CLASS R TRANSFEROR'S AFFIDAVIT
EXHIBIT F   FORM OF TRANSFEROR CERTIFICATE
EXHIBIT G   FORM OF INVESTMENT LETTER (ACCREDITED INVESTOR)
EXHIBIT H   FORM OF RULE 144A INVESTMENT LETTER
EXHIBIT I   FORM OF REQUEST FOR RELEASE
EXHIBIT J   [RESERVED]
EXHIBIT K   [RESERVED]
EXHIBIT L   [RESERVED]
EXHIBIT M-1 [RESERVED]
EXHIBIT M-2 [RESERVED]
EXHIBIT M-3 [RESERVED]
EXHIBIT N-1 FORM OF CLASS A-1 CAP CONTRACT
EXHIBIT N-2 FORM OF CLASS A-2 CAP CONTRACT
EXHIBIT N-3 FORM OF SUBORDINATE CERTIFICATES CAP CONTRACT
EXHIBIT O-1 ONE-MONTH LIBOR CAP TABLE - CLASS A-1 CAP CONTRACT
EXHIBIT O-2 ONE-MONTH LIBOR CAP TABLE - CLASS A-2 CAP CONTRACT
EXHIBIT O-3 ONE-MONTH LIBOR CAP TABLE - SUBORDINATE CERTIFICATES CAP CONTRACT
EXHIBIT P   FORM OF POWER OF ATTORNEY
EXHIBIT Q   [RESERVED]
EXHIBIT R   [RESERVED]
EXHIBIT S   FORM OF SWAP AGREEMENT
EXHIBIT T-1 FORM OF ASSESSMENT OF COMPLIANCE
EXHIBIT T-2 SERVICING CRITERIA (EXHIBIT A TO FORM OF ASSESSMENT OF COMPLIANCE)
EXHIBIT T-3 FORM OF SARBANES-OXLEY CERTIFICATION (SERVICER)
EXHIBIT T-4 FORM OF ITEM 1123 CERTIFICATION (SERVICER)
EXHIBIT T-5 FORM OF OFFICER'S CERTIFICATE (TRUSTEE)
EXHIBIT U   [RESERVED]
EXHIBIT V   [RESERVED]
EXHIBIT W   [RESERVED]
EXHIBIT X   ITEMS FOR FORM 8-K
EXHIBIT Y   ITEMS FOR FORM 10-D
EXHIBIT Z   ITEMS FOR FORM 10-K
EXHIBIT Z-1 ADDITIONAL DISCLOSURE NOTIFICATION


                                       v



     POOLING AND SERVICING AGREEMENT (the "Agreement"), dated as of October 1,
2006, among MERRILL LYNCH MORTGAGE INVESTORS, INC., a Delaware corporation, as
depositor (the "Depositor"), LITTON LOAN SERVICING LP, a Delaware limited
partnership, as servicer (the "Servicer") and LASALLE BANK NATIONAL ASSOCIATION,
a national banking association, as trustee (the "Trustee").

End of Preview