Common use of Adjustable Rate Supplemental Fund Clause in Contracts

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "Adjustable Rate Supplemental Fund, Xxxxx Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Investments II Inc., Bear Xxxxxxx Mortgage Funding Trust 2007-AR5, Mortgage Pass-Through Certificates, Series 2007-AR5" (the "Adjustable Rate Supplemental Fund"). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered Certificates. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than the Class I-X Certificates), the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "Adjustable Rate Supplemental Fund, Xxxxx Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Investments II Inc., Bear Xxxxxxx Mortgage Funding Trust 2007-AR5AR4, Mortgage Pass-Through Certificates, Series 2007-AR5AR4" (the "Adjustable Rate Supplemental Fund"). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000590,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered Certificates. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than the Class I-X Certificates), the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $590,000 with respect to Loan Group I and $25,000 with respect to each Loan GroupGroup II, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "“Adjustable Rate Supplemental Fund, Xxxxx Wells Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Mxxxxxge Investments II Inc., Bear Xxxxxxx Stearns Mortgage Funding Trust 20072006-AR5AR2, Mortgage Pass-Through Certificates, Series 20072006-AR5" AR2, Xxxxx X Offered Certificates” (the "“Adjustable Rate Supplemental Fund"”). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, 250,000 which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered CertificatesFund. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Offered Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such the Group I Offered Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than the Class I-X Certificates), to the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group250,000, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions distribution the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "“Adjustable Rate Supplemental Fund, Xxxxx Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Investments II Inc., Bear Xxxxxxx Mortgage Funding Trust 2007-AR5AR1, Mortgage Pass-Through Certificates, Series 2007-AR5" AR1” (the "“Adjustable Rate Supplemental Fund"”). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered Certificates. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than the Class I-X Certificates), the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) Certficates and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "Adjustable Rate Supplemental Fund, Xxxxx Wells Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Structurex Xxset Mortgage Investments II Inc., Bear Xxxxxxx Stearns Mortgage Funding Trust 20072006-AR5AR3, Mortgage Pass-Through Certificates, Series 20072006-AR5AR3" (the xxx "Adjustable Rate Supplemental Fund"). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered Certificates. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than the Class I-X Certificates), the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) Certficates and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "“Adjustable Rate Supplemental Fund, Xxxxx Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Investments II Inc., Bear Xxxxxxx Mortgage Funding Trust 20072006-AR5, Mortgage Pass-Through Certificates, Series 20072006-AR5" ” (the "“Adjustable Rate Supplemental Fund"”). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered Certificates. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than the Class I-X Certificates), the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "Adjustable Rate Supplemental Fund, Xxxxx Fargo Bank, National Association, as Trustee for the benefit of f/b/o holders of Structured Asset Mortgage Investments II Inc., Bear Xxxxxxx Mortgage Funding Trust 2007-AR5AR2, Mortgage Pass-Through Certificates, Series 2007-AR5AR2" (the "Adjustable Rate Supplemental Fund"). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered Certificates. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Offered Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than to the Class I-X Certificates), the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Offered Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions distributions, the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if Investment. If no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) Certficates and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "Adjustable Rate Supplemental Fund, Xxxxx Wells Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Xxxxgage Investments II Inc., Bear Xxxxxxx Stearns Mortgage Funding Trust 20072006-AR5AR3, Mortgage Pass-Through Certificates, Series 20072006-AR5AR3" (the "Adjustable Axxxxxxxle Rate Supplemental Fund"). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered Certificates. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than the Class I-X Certificates), the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates), a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "Adjustable Rate Supplemental Fund, Xxxxx Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Investments II Inc., Bear Xxxxxxx Structured Asset Mortgage Funding Investments II Trust 2007-AR5AR4, Mortgage Pass-Through Certificates, Series 2007-AR5AR4" (the "Adjustable Rate Supplemental Fund"). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered Certificates. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable), to the extent that Current Interest on such Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than to the Class I-X Certificates), the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group25,000, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "“Adjustable Rate Supplemental Fund, Xxxxx Wxxxx Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Investments II Inc., Bear Xxxxxxx Sxxxxxx Mortgage Funding Trust 20072006-AR5AR1, Mortgage Pass-Through Certificates, Series 20072006-AR5" AR1, Group I Offered Certificates” (the "“Adjustable Rate Supplemental Fund"”). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, 200,000 which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered CertificatesFund. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Offered Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such the Group I Offered Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than the Class I-X Certificates), to the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group200,000, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions distribution the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor. 3.5 Article VI of the Agreement is hereby amended by inserting a new paragraph at the end of Section 6.01(a), as follows: “If on the initial Distribution Date, the amounts payable to the Group I Offered Certificates in respect of the related Interest Funds for such Distribution Date is reduced due to the application of the related Net Rate Cap, the Trustee shall transfer from the Adjustable Rate Supplemental Fund for distribution to the applicable Class or Classes of Group I Certificates on such Distribution Date, an amount equal to the lesser of (i) the amount on deposit in the Adjustable Rate Supplemental Fund, and (ii) the amount of such applicable shortfall.” 3.6 Section 6.01(a)(iii) "Twelfth" of Article VI of the Agreement is hereby deleted and replaced in its entirety with the following (new language underlined and in bold): Twelfth, from amounts in the Adjustable Rate Supplemental Fund (only with respect to the initial Distribution Date as described herein) and from any remaining Excess Cashflow with respect to Loan Group I, to the Class I-A Certificates, any Basis Risk Shortfall and any Basis Risk Shortfall Carry-forward Amount for each such Class for such Distribution Date, pro rata, based on the Basis Risk Shortfall and Basis Risk Shortfall Carry-forward Amount owed to each such Class; 3.7 Section 6.01(a)(iii) "Thirteenth" of Article VI of the Agreement is hereby deleted and replaced in its entirety with the following (new language underlined and in bold): Thirteenth, from amounts in the Adjustable Rate Supplemental Fund (only with respect to the initial Distribution Date as described herein) and from any remaining Excess Cashflow with respect to Loan Group I, to the Class I-B-1, Class I-B-2, Class I-B-3, Class I-B-4, Class I-B-5, Class I-B-6 and Class I-B-7 Certificates, sequentially, in that order, any Basis Risk Shortfall and any Basis Risk Shortfall Carry-forward Amount, in each case for such Class for such Distribution Date; 3.8 Section 6.01(a)(iii) of Article VI of the Agreement is hereby amended by adding a new clause “Fourteenth”, as follows, and by renumbering existing clause “Fourteenth” and “Fifteenth”, as “Fifteenth” and “Sixteenth”, respectively: “Fourteenth, if the Adjustable Rate Supplemental Fund has not been terminated pursuant to Section 4.05, to the Adjustable Rate Supplemental Fund, the lesser of (A) any remaining amounts, and (B) the amount which, when added to amounts on deposit in the Adjustable Rate Supplemental Fund, would equal $200,000;”

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "“Adjustable Rate Supplemental Fund, Xxxxx Wells Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Mortgxxx Investments II Inc., Bear Xxxxxxx Stearns Mortgage Funding Trust 20072006-AR5AR2, Mortgage Pass-Through Certificates, Series 20072006-AR5" AR2, Groux X Xxxered Certificates” (the "“Adjustable Rate Supplemental Fund"”). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, 250,000 which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered CertificatesFund. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to the Group I Offered Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such the Group I Offered Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than the Class I-X Certificates), to the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group250,000, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions distribution the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.

Adjustable Rate Supplemental Fund. (a) No later than the initial Distribution Date, the Trustee shall establish and maintain, in trust for the benefit of the holders of the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, a segregated trust account (or accounts) or sub-account (or sub-accounts) of a trust account, which shall be titled "Adjustable Rate Supplemental Fund, Xxxxx Fargo Bank, National Association, as Trustee for the benefit of holders of Structured Asset Mortgage Investments II Inc., Bear Xxxxxxx Mortgage Funding Trust 2007-AR5AR3, Mortgage Pass-Through Certificates, Series 2007-AR5AR3" (the "Adjustable Rate Supplemental Fund"). The Adjustable Rate Supplemental Fund shall be an Eligible Account or a sub-account of an Eligible Account. No later than the initial Distribution Date, the Depositor shall pay to the Trustee an amount equal to (i) in the case of the Group I Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group I Certificates and (ii) in the case of the Group II Offered Certificates, $25,000, which shall be deposited by the Trustee into the Adjustable Rate Supplemental Fund for the benefit of the Group II Offered Certificates. Pursuant to Section 6.01, on the initial Distribution Date, amounts on deposit in the Adjustable Rate Supplemental Fund will be withdrawn from the Adjustable Rate Supplemental Fund and paid to 112 the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, to the extent that Current Interest on such Certificates on the initial Distribution Date is reduced by application of the related Net Rate Cap on such initial Distribution Date. The Adjustable Rate Supplemental Fund will be entitled to be replenished on each future Distribution Date from the Interest Funds otherwise payable on such Distribution Date to, in the case of the Group I Certificates (other than the Class I-X Certificates), the Class I-B-IO Certificates or, in the case of the Group II Offered Certificates, the Class II-B-IO Certificates, as applicable, until the Adjustable Rate Supplemental Fund has been replenished to the extent of the amount paid from the Adjustable Rate Supplemental Fund to the Group I Certificates (other than the Class I-X Certificates) and the Group II Offered Certificates, as applicable, on the initial Distribution Date. On each future Distribution Date, all amounts on deposit in the Adjustable Rate Supplemental Fund as set forth in the preceding sentence will be distributed to the Depositor or its designee. On the Distribution Date on which the aggregate of the amounts replenished to the Adjustable Rate Supplemental Fund equals $25,000 with respect to each Loan Group, all amounts then on deposit in the Adjustable Rate Supplemental Fund will be distributed to the Depositor or its designee (as set forth in the preceding sentence), and following such distributions the Adjustable Rate Supplemental Fund will be terminated. (b) The Trustee will invest funds deposited in the Adjustable Rate Supplemental Fund as directed by the Depositor or its designee in writing in Permitted Investments with a maturity date (i) no later than the Business Day immediately preceding the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if a Person other than the Trustee or an Affiliate of the Trustee is the obligor for such Permitted Investment, or (ii) no later than the date on which such funds are required to be withdrawn from the Adjustable Rate Supplemental Fund pursuant to this Agreement, if the Trustee or an affiliate of the Trustee is the obligor for such Permitted Investment (or, if no written direction is received by the Trustee from the Depositor, then funds in the Adjustable Rate Supplemental Fund shall remain uninvested). For federal income tax purposes, the Depositor shall be the owner of the Adjustable Rate Supplemental Fund and shall report all items of income, deduction, gain or loss arising therefrom. At no time will the Adjustable Rate Supplemental Fund be an asset of any REMIC created hereunder. All income and gain realized from investment of funds deposited in the Adjustable Rate Supplemental Fund, which investment shall be made solely upon the written direction of the Depositor, shall be for the sole and exclusive benefit of the Depositor and shall be remitted by the Trustee to the Depositor within one Business Day after the termination of the Adjustable Rate Supplemental Fund. The Depositor shall deposit in the Adjustable Rate Supplemental Fund the amount of any net loss incurred in respect of any such Permitted Investment immediately upon realization of such loss, without any right of reimbursement therefor.