Common use of Collection of Certain Home Equity Loan Payments Clause in Contracts

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "Collection Account") titled "HSBC Bank USA, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2005-2". In the event that a successor Administrator is appointed, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "[Successor Administrator], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2005-2", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies within two (2) Business Days following receipt thereof by the Servicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it ownsowns or services, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of treat a contractually delinquent Home Equity Loan to as current if the Mortgagor has made one scheduled payment (which, for the purposes of this Section 3.02(a)(iii) only, is in accordance with the Master Servicer's customary account management policies servicing practices and practicesmay be less than 100% of the scheduled payment) to cure the delinquency status of such Home Equity Loan. (b) The Master Servicer shall establish and maintain with the Administrator Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USAOne, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Closed-End Home Equity Loan Asset Backed NotesCertificates, Series 20052001-2". In the event that a successor Administrator Trustee is appointedappointed as provided in Section 9.07, a new Collection Account shall be promptly established at and maintained by such successor AdministratorTrustee, and the title of the new Collection Account shall be "[Successor AdministratorTrustee], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Closed-End Home Equity Loan Asset Backed NotesCertificates, Series 20052001-2", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies Agencies, within two (2) Business Days following receipt thereof by the Servicersthereof), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections (net of any Servicing Fee) on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.0110.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Distribution Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership InterestCertificateholders. In addition, the Master Servicer shall notify the Administrator Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Distribution Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Distribution Date or on the Payment Distribution Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes Class A and Class M Certificates by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Distribution Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it ownsowns or services, and (iii) sell the and treat a Home Equity Loan at its fair market value as current if the Mortgagor has made one scheduled payment to a third party for collection activity or (iv) reset cure the delinquency status of a contractually delinquent such Home Equity Loan to current in accordance with the Master Servicer's customary account management policies and practicesLoan. (b) The Master Servicer shall establish and maintain with the Administrator Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USAOne, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Closed-End Home Equity Loan Asset Backed NotesCertificates, Series 20051999-21". In the event that a successor Administrator Trustee is appointedappointed as provided in Section 9.07, a new Collection Account shall be promptly established at and maintained by such successor AdministratorTrustee, and the title of the new Collection Account shall be "[Successor AdministratorTrustee], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Closed-End Home Equity Loan Asset Backed NotesCertificates, Series 20051999-21", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago New York time on one (1) Business Day prior to each Deposit Distribution Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies occurred, within two (2) Business Days following receipt thereof by the Servicersthereof), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer Depositor in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer10.01. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership InterestCertificateholders. In addition, the Master Servicer shall notify the Administrator Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Distribution Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master 40 Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Distribution Date or or, with the approval of the Rating Agencies, on the Payment Distribution Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Distribution Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it ownsowns or services, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of treat a contractually delinquent Home Equity Loan to as current if the Mortgagor has made one 33 39 scheduled payment (which, for the purposes of this Section 3.02(a)(iii) only, is in accordance with the Master Servicer's customary account management policies servicing practices and practicesmay be less than 100% of the scheduled payment) to cure the delinquency status of such Home Equity Loan. (b) The Master Servicer shall establish and maintain with the Administrator Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USAOne, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Closed-End Home Equity Loan Asset Backed NotesCertificates, Series 20052001-21". In the event that a successor Administrator Trustee is appointedappointed as provided in Section 9.07, a new Collection Account shall be promptly established at and maintained by such successor AdministratorTrustee, and the title of the new Collection Account shall be "[Successor AdministratorTrustee], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Closed-End Home Equity Loan Asset Backed NotesCertificates, Series 20052001-21", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall sha ll be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies Agencies, within two (2) Business Days following receipt thereof by the Servicersthereof), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections (net of any Servicing Fee) on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.0110.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Distribution Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership InterestCertificateholders. In addition, the Master Servicer shall notify the Administrator Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Distribution Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Distribution Date or on the Payment Distribution Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes Class A and Class M Certificates by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Distribution Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of treat a contractually delinquent Home Equity Loan to as current if the Mortgagor has made two scheduled payment (which, for the purposes of this Section 3.02(a)(iv) only, is in accordance with the Master Servicer's customary account management policies servicing practices and practicesmay be less than 100% of the scheduled payment) to cure the delinquency status of such Home Equity Loan. (b) The Master Servicer shall establish and maintain with the Administrator Indenture Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USAOne, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Household Home Equity Loan Asset Backed Notes, Series 20052002-24". In the event that a successor Administrator is appointed, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "[Successor Administrator], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2005-2", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the a new Collection Account shall be retitled to reflect the name of the promptly established at and maintained by such successor Indenture Trustee, and the title of the new Collection Account shall be "[Successor Indenture Trustee], as Indenture Trustee, in trust for the registered holders of Household Home Equity Loan Asset Backed Notes, Series 2002-4", and any amounts in the old Collection Account shall be transferred to the new Collection Account. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date within two Business Days following receipt thereof by the Servicers (or, or if a Deposit Event has occurred and is no longer continuing or if the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies within two (2and, so long as no Insurer Default exists and is continuing, the Insurer on each Deposit Date) Business Days following receipt thereof by the Servicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections (net of any Servicing Fee) on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has is not occurred continuing (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating AgenciesAgencies and, so long as no Insurer Default exists and is continuing, the Insurer), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Indenture Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of Noteholders, the Noteholders Insurer and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator Indenture Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies without taking into account the existence of the Note Guaranty Insurance Policy (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Indenture Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Indenture Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Indenture Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Indenture Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Indenture Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's ’s policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's ’s customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "“Collection Account"”) titled "“HSBC Bank USA, National Association, as Administrator Administrator, on behalf of U.S. Bank JPMorgan Chase Bank, National Association, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 20052006-2"1”. In the event that a successor Administrator is appointed, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "“[Successor Administrator], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 20052006-2"1”, and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies within two (2) Business Days following receipt thereof by the ServicersSubservicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain a Deposit Event has not occurred and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii5.01(a)(i)-(xvii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer Subservicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related ServicerSubservicer, if any, need not be deposited in the Collection Account. (c) The Servicer shall establish and maintain with the Administrator a separate trust account (the “Yield Maintenance Account”) titled “HSBC Bank USA, National Association, as Administrator, on behalf of JPMorgan Chase Bank, National Association, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2006-1”. In the event that a successor Administrator is appointed, a new Yield Maintenance Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Yield Maintenance Account shall be “[Successor Administrator], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2006-1”, and any amounts in the old Yield Maintenance Account shall be transferred to the new Yield Maintenance Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Yield Maintenance Account shall be retitled to reflect the name of the successor Indenture Trustee. The Yield Maintenance Account shall be an Eligible Account. On the Closing Date, the Depositor shall deposit or cause to be deposited into the Yield Maintenance Account the Yield Maintenance Account Deposit. The foregoing requirements respecting deposits to the Yield Maintenance Account are exclusive. (d) The Administrator shall hold amounts deposited in the Collection Account and the Yield Maintenance Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (de) The Master Servicer may cause the institution maintaining the Collection Account and the Yield Maintenance Account to invest any funds in the Collection Account and the Yield Maintenance Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is and the Yield Maintenance Account are maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account and the Yield Maintenance Account, any request by the Master Servicer to invest funds on deposit in the Collection Account and the Yield Maintenance Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account or the Yield Maintenance Account, as applicable, shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account and the Yield Maintenance Account by the Master Servicer out of its own funds immediately as realized. (ef) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it ownsowns or services, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of treat a contractually delinquent Home Equity Loan to as current if the Mortgagor has made one scheduled payment (which, for the purposes of this Section 3.02(a)(iii) only, is in accordance with the Master Servicer's customary account management policies servicing practices and practicesmay be less than 100% of the scheduled payment) to cure the delinquency status of such Home Equity Loan. (b) The Master Servicer shall establish and maintain with the Administrator Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USAOne, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Closed-End Home Equity Loan Asset Backed NotesCertificates, Series 20052002-21". In the event that a successor Administrator Trustee is appointedappointed as provided in Section 9.07, a new Collection Account shall be promptly established at and maintained by such successor AdministratorTrustee, and the title of the new Collection Account shall be "[Successor AdministratorTrustee], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Closed-End Home Equity Loan Asset Backed NotesCertificates, Series 20052002-21", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies Agencies, within two (2) Business Days following receipt thereof by the Servicersthereof), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections (net of any Servicing Fee) on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.0110.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Distribution Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership InterestCertificateholders. In addition, the Master Servicer shall notify the Administrator Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Distribution Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Distribution Date or on the Payment Distribution Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes Class A and Class M Certificates by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Distribution Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's ’s policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's ’s customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "“Collection Account"”) titled "“HSBC Bank USA, National Association, as Administrator Administrator, on behalf of U.S. Bank JPMorgan Chase Bank, National AssociationAssocation, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 20052006-2"”. In the event that a successor Administrator is appointed, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "“[Successor Administrator], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 20052006-2"”, and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies within two (2) Business Days following receipt thereof by the ServicersSubservicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain a Deposit Event has not occurred and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii5.01(a)(i)-(xvii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer Subservicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related ServicerSubservicer, if any, need not be deposited in the Collection Account. (c) The Administrator shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's ’s policies with respect to the home equity loans it ownsowns or services, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's ’s customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "“Collection Account"”) titled "“HSBC Bank USA, National Association, as Administrator Administrator, on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Trust (USA) 2006-3, Closed-End Home Equity Loan Asset-Backed NotesCertificates, Series 20052006-2"3”. In the event that a successor Administrator is appointedappointed as provided in Section 8.19, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "“[Successor Administrator], as Administrator Administrator, on behalf of Indenture the Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Trust (USA) 2006-3, Closed-End Home Equity Loan Asset-Backed NotesCertificates, Series 20052006-2"3”, and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies Agencies, within two (2) Business Days following receipt thereof by the ServicersSubservicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.019.01; provided, however, that that, with respect to any Distribution Date, so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies)occurred, the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the TransferorClass R Certificateholder, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Distribution Date pursuant to Section 5.01(a)(i)-(xviii4.01(a)(i)-(vii) hereof, and if at any time prior to that Payment Distribution Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Distribution Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer Subservicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related ServicerSubservicer, if any, need not be deposited in the Collection Account. (c) The Administrator shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership InterestCertificateholders. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Distribution Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Distribution Date or on the Payment Distribution Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes Offered Certificates by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Distribution Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its the Administrator’s Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's ’s policies with respect to the home equity loans it ownsowns or services, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's ’s customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "“Collection Account"”) titled "“HSBC Bank USA, National Association, as Administrator Administrator, on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Trust (USA) 2007-2, Closed-End Home Equity Loan Asset-Backed NotesCertificates, Series 20052007-2"”. In the event that a successor Administrator is appointedappointed as provided in Section 8.19, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "“[Successor Administrator], as Administrator Administrator, on behalf of Indenture the Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Trust (USA) 2007-2, Closed-End Home Equity Loan Asset-Backed NotesCertificates, Series 20052007-2"”, and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies Agencies, within two (2) Business Days following receipt thereof by the ServicersSubservicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.019.01; provided, however, that that, with respect to any Distribution Date, so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies)occurred, the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the TransferorClass R Certificateholder, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Distribution Date pursuant to Section 5.01(a)(i)-(xviii4.01(a)(i)-(vii) hereof, and if at any time prior to that Payment Distribution Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Distribution Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.annual

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it ownsowns or services, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of treat a contractually delinquent Home Equity Loan to as current if the Mortgagor has made one scheduled payment (which, for the purposes of this Section 3.02(a)(iii) only, is in accordance with the Master Servicer's customary account management policies servicing practices and practicesmay be less than 100% of the scheduled payment) to cure the delinquency status of such Home Equity Loan. (b) The Master Servicer shall establish and maintain with the Administrator Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USA, National Association, as Administrator on behalf of U.S. Bank National Association[ ], as Indenture Trustee, in trust for the registered holders of HSBC [ ] Home Equity Loan Asset Backed Notes, Series 2005200[ ]-2[ ]". In the event that a successor Administrator Indenture Trustee is appointedappointed as provided in Section [ ] of the Indenture, a new Collection Account shall be promptly established at and maintained by such successor AdministratorIndenture Trustee, and the title of the new Collection Account shall be "[Successor AdministratorIndenture Trustee], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC [ ] Home Equity Loan Asset Backed Notes, Series 2005200[ ]-2[ ]", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies Agencies, within two (2) Business Days following receipt thereof by the Servicersthereof), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections (net of any Servicing Fee) on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating AgenciesAgencies [and the Insurer]), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Indenture Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of Class A Noteholders[, the Noteholders Insurer] and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator Indenture Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Class A Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Indenture Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Indenture Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Indenture Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Indenture Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Indenture Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's ’s policies with respect to the home equity loans it ownsowns or services, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's ’s customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "“Collection Account"”) titled "“HSBC Bank USA, National Association, as Administrator Administrator, on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Trust (USA) 2007-1, Closed-End Home Equity Loan Asset-Backed NotesCertificates, Series 20052007-2"1”. In the event that a successor Administrator is appointedappointed as provided in Section 8.19, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "“[Successor Administrator], as Administrator Administrator, on behalf of Indenture the Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Trust (USA) 2007-1, Closed-End Home Equity Loan Asset-Backed NotesCertificates, Series 20052007-2"1”, and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies Agencies, within two (2) Business Days following receipt thereof by the ServicersSubservicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.019.01; provided, however, that that, with respect to any Distribution Date, so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies)occurred, the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the TransferorClass R Certificateholder, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Distribution Date pursuant to Section 5.01(a)(i)-(xviii4.01(a)(i)-(vii) hereof, and if at any time prior to that Payment Distribution Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Distribution Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.annual

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of treat a contractually delinquent Home Equity Loan to as current if the Mortgagor has made two scheduled payment (which, for the purposes of this Section 3.02(a)(iv) only, is in accordance with the Master Servicer's customary account management policies servicing practices and practicesmay be less than 100% of the scheduled payment) to cure the delinquency status of such Home Equity Loan. (b) The Master Servicer shall establish and maintain with the Administrator Indenture Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USAOne, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Household Home Equity Loan Asset Backed Notes, Series 20052002-23". In the event that a successor Administrator is appointed, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "[Successor Administrator], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2005-2", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the a new Collection Account shall be retitled to reflect the name of the promptly established at and maintained by such successor Indenture Trustee, and the title of the new Collection Account shall be "[Successor Indenture Trustee], as Indenture Trustee, in trust for the registered holders of Household Home Equity Loan Asset Backed Notes, Series 2002-3", and any amounts in the old Collection Account shall be transferred to the new Collection Account. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies and, so long as no Insurer Default exists and is continuing, the Insurer, within two (2) Business Days following receipt thereof by the Servicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections (net of any Servicing Fee) on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating AgenciesAgencies and the Insurer), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Indenture Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of Noteholders, the Noteholders Insurer and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator Indenture Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies without taking into account the existence of the Note Guaranty Insurance Policy (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Indenture Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Indenture Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Indenture Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Indenture Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Indenture Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it ownsowns or services, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of treat a contractually delinquent Home Equity Loan to as current if the Mortgagor has made one scheduled payment (which, for the purposes of this Section 3.02(a)(iii) only, is in accordance with the Master Servicer's customary account management policies servicing practices and practicesmay be less than 100% of the scheduled payment) to cure the delinquency status of such Home Equity Loan. (b) The Master Servicer shall establish and maintain with the Administrator Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USA, National Association[ ], as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC [ ] Home Equity Loan Asset Backed NotesCertificates, Series 2005200[ ]-2[ ]". In the event that a successor Administrator Trustee is appointedappointed as provided in Section 9.07, a new Collection Account shall be promptly established at and maintained by such successor AdministratorTrustee, and the title of the new Collection Account shall be "[Successor AdministratorTrustee], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC [ ] Home Equity Loan Asset Backed NotesCertificates, Series 2005200[ ]-2[ ]", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies Agencies, within two (2) Business Days following receipt thereof by the Servicersthereof), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections (net of any Servicing Fee) on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.0110.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating AgenciesAgencies [and the Certificate Insurer]), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Distribution Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of Certificateholders [and the Noteholders and on behalf of the Transferor in respect of the Ownership InterestCertificate Insurer]. In addition, the Master Servicer shall notify the Administrator Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Distribution Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Distribution Date or on the Payment Distribution Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes Class A and Class M Certificates by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Distribution Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of treat a contractually delinquent Home Equity Loan to as current if the Mortgagor has made two scheduled payment (which, for the purposes of this Section 3.02(a)(iv) only, is in accordance with the Master Servicer's customary account management policies servicing practices and practicesmay be less than 100% of the scheduled payment) to cure the delinquency status of such Home Equity Loan. (b) The Master Servicer shall establish and maintain with the Administrator Indenture Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USAOne, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Household Home Equity Loan Asset Backed Notes, Series 20052002-2". In the event that a successor Administrator Indenture Trustee is appointedappointed as provided in Section 6.8 of the Indenture, a new Collection Account shall be promptly established at and maintained by such successor AdministratorIndenture Trustee, and the title of the new Collection Account shall be "[Successor AdministratorIndenture Trustee], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Household Home Equity Loan Asset Backed Notes, Series 20052002-2", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies and, so long as no Insurer Default exists and is continuing, the Insurer, within two (2) Business Days following receipt thereof by the Servicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections (net of any Servicing Fee) on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating AgenciesAgencies and the Insurer), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Indenture Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of Noteholders, the Noteholders Insurer and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator Indenture Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies without taking into account the existence of the Note Guaranty Insurance Policy (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Indenture Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Indenture Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Indenture Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Indenture Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Indenture Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator Indenture Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USAOne, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Household Home Equity Loan Asset Backed Notes, Series 20052003-21". In the event that a successor Administrator is appointed, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "[Successor Administrator], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2005-2", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the a new Collection Account shall be retitled to reflect the name of the promptly established at and maintained by such successor Indenture Trustee, and the title of the new Collection Account shall be "[Successor Indenture Trustee], as Indenture Trustee, in trust for the registered holders of Household Home Equity Loan Asset Backed Notes, Series 2003-1", and any amounts in the old Collection Account shall be transferred to the new Collection Account. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies within two (2) Business Days following receipt thereof by the Servicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections (net of any Servicing Fee) on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred occurred` (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Indenture Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator Indenture Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Indenture Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Indenture Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Indenture Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Indenture Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Indenture Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "Collection Account") titled "HSBC Bank USA, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Household Home Equity Loan Asset Backed Notes, Series 20052004-21". In the event that a successor Administrator is appointed, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "[Successor Administrator], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Household Home Equity Loan Asset Backed Notes, Series 20052004-21", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies within two (2) Business Days following receipt thereof by the Servicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's ’s policies with respect to the home equity loans it ownsowns or services, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's ’s customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "“Collection Account"”) titled "“HSBC Bank USA, National Association, as Administrator Administrator, on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Trust (USA) 2006-4, Closed-End Home Equity Loan Asset-Backed NotesCertificates, Series 20052006-2"4”. In the event that a successor Administrator is appointedappointed as provided in Section 8.19, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "“[Successor Administrator], as Administrator Administrator, on behalf of Indenture the Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Trust (USA) 2006-4, Closed-End Home Equity Loan Asset-Backed NotesCertificates, Series 20052006-2"4”, and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies Agencies, within two (2) Business Days following receipt thereof by the ServicersSubservicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.019.01; provided, however, that that, with respect to any Distribution Date, so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies)occurred, the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the TransferorClass R Certificateholder, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Distribution Date pursuant to Section 5.01(a)(i)-(xviii4.01(a)(i)-(vii) hereof, and if at any time prior to that Payment Distribution Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Distribution Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer Subservicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related ServicerSubservicer, if any, need not be deposited in the Collection Account. (c) The Administrator shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership InterestCertificateholders. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Distribution Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Distribution Date or on the Payment Distribution Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes Offered Certificates by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Distribution Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its the Administrator’s Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's ’s policies with respect to the home equity loans it ownsowns or services, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's ’s customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "“Collection Account"”) titled "“HSBC Bank USA, National Association, as Administrator Administrator, on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Trust (USA) 2007-3, Closed-End Home Equity Loan Asset-Backed NotesCertificates, Series 20052007-2"3”. In the event that a successor Administrator is appointedappointed as provided in Section 8.19, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "“[Successor Administrator], as Administrator Administrator, on behalf of Indenture the Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Trust (USA) 2007-3, Closed-End Home Equity Loan Asset-Backed NotesCertificates, Series 20052007-2"3”, and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies Agencies, within two (2) Business Days following receipt thereof by the ServicersSubservicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.019.01; provided, however, that that, with respect to any Distribution Date, so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies)occurred, the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the TransferorClass R Certificateholder, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Distribution Date pursuant to Section 5.01(a)(i)-(xviii4.01(a)(i)-(vii) hereof, and if at any time prior to that Payment Distribution Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Distribution Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer Subservicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related ServicerSubservicer, if any, need not be deposited in the Collection Account. (c) The Administrator shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership InterestCertificateholders. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Distribution Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Distribution Date or on the Payment Distribution Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes Offered Certificates by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Distribution Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its the Administrator’s Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "Collection Account") titled "HSBC Bank USA, National Association, as Administrator on behalf of U.S. Bank National Association, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2005-23". In the event that a successor Administrator is appointed, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "[Successor Administrator], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2005-23", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies within two (2) Business Days following receipt thereof by the Servicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator a separate trust account (the "Collection Account") titled "HSBC Bank USA, National Association, as Administrator on behalf of U.S. Bank JPMorgan Chase Bank, National Association, as Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2005-21". In the event that a successor Administrator is appointed, a new Collection Account shall be promptly established at and maintained by such successor Administrator, and the title of the new Collection Account shall be "[Successor Administrator], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Home Equity Loan Asset Backed Notes, Series 2005-21", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies within two (2) Business Days following receipt thereof by the Servicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; and (iii) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx5.01(a)(xiii) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii5.01(a)(i)-(xi) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.

Collection of Certain Home Equity Loan Payments. (a) The Master Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the Home Equity Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows with respect to home equity loans in its servicing portfolio comparable to the Home Equity Loans. Consistent with, and without limiting the generality of, the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any assumption fees or other fees that may be collected in the ordinary course of servicing the Home Equity Loans, (ii) arrange with a Mortgagor a schedule for the payment of delinquent amounts, so long as such arrangement is consistent with the Master Servicer's policies with respect to the home equity loans it owns, (iii) sell the Home Equity Loan at its fair market value to a third party for collection activity or (iv) reset the delinquency status of a contractually delinquent Home Equity Loan to current in accordance with the Master Servicer's customary account management policies and practices. (b) The Master Servicer shall establish and maintain with the Administrator Indenture Trustee a separate trust account (the "Collection Account") titled "HSBC Bank USA, National Association, as Administrator on behalf of U.S. Bank National AssociationJPMorgan Chase Bank, as Indenture Trustee, in trust for the registered holders of HSBC Household Home Equity Loan Asset Backed Notes, Series 20052003-2". In the event that a successor Administrator Indenture Trustee is appointedappointed as provided in Section 6.8 of the Indenture, a new Collection Account shall be promptly established at and maintained by such successor AdministratorIndenture Trustee, and the title of the new Collection Account shall be "[Successor AdministratorIndenture Trustee], as Administrator on behalf of Indenture Trustee, in trust for the registered holders of HSBC Household Home Equity Loan Asset Backed Notes, Series 20052003-2", and any amounts in the old Collection Account shall be transferred to the new Collection Account. In the event that a successor Indenture Trustee is appointed as provided in Section 6.8 of the Indenture, the Collection Account shall be retitled to reflect the name of the successor Indenture Trustee. The Collection Account shall be an Eligible Account. No later than 12:00 noon Chicago time on each Deposit Date (or, if a Deposit Event has occurred and the Master Servicer has not provided credit enhancement reasonably acceptable to each of the Rating Agencies within two (2) Business Days following receipt thereof by the Servicers), the Master Servicer shall deposit or cause to be deposited into the Collection Account the following payments and collections received or made by it with respect to the Home Equity Loans (without duplication): (i) Net Interest Collections (net of any Servicing Fee) on the Home Equity Loans; (ii) Principal Collections on the Home Equity Loans; (iii) Insurance Proceeds (including, for this purpose, any amount required to be paid by the Master Servicer pursuant to Section 3.04 and excluding any portion thereof constituting Principal Collections); and (iiiiv) amounts required to be paid by the Master Servicer in connection with the termination of the Trust pursuant to Section 8.01; provided, however, that so long as a Deposit Event has not occurred (unless the Master Servicer has provided credit enhancement reasonably acceptable to each of the Rating Agencies), the amount of funds that the Master Servicer is required to deposit or to cause to be deposited into the Collection Account on or before such Deposit Date shall be reduced by the Skip-A-Pay Reimbursement Amount the Master Servicer is entitled to receive on the next Payment Date; provided further, however, with respect to any Payment Date, so long as (i) the Master Servicer is permitted to retain and commingle payments and collections on the Home Equity Loans with its own funds until the related Deposit Date and (ii) no payments are owed to the Noteholders on such Payment Date under Section 5.01(a)(xx) hereof, the Master Servicer shall, if the Depositor is the Transferor or otherwise, if so permitted in writing by the Transferor, only be required to deposit payments and collections on the Home Equity Loans into the Collection Account up to the aggregate amount equal to the sum of all amounts payable on that Payment Date pursuant to Section 5.01(a)(i)-(xviii) hereof, and if any time prior to that Payment Date the amount of payments and collections on the Home Equity Loans deposited into the Collection Account with respect to the related Collection Period exceeds the amount required to be deposited into the Collection Account in order to make such payments on such Payment Date, the Master Servicer shall be permitted to direct the Administrator in writing to withdraw any excess and pay the excess to the Master Servicer. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, fees (including annual fees) or late charge penalties payable by Mortgagors, prepayment penalties, or amounts received by the Master Servicer or a Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items for the account of the related Servicer, if any, need not be deposited in the Collection Account. (c) The Administrator Indenture Trustee shall hold amounts deposited in the Collection Account on behalf of the Indenture Trustee as trustee for the benefit of the Noteholders and on behalf of the Transferor in respect of the Ownership Interest. In addition, the Master Servicer shall notify the Administrator Indenture Trustee in writing on each Determination Date of the amount of payments and collections to be deposited in the Collection Account with respect to the related Payment Date. (d) The Master Servicer may cause the institution maintaining the Collection Account to invest any funds in the Collection Account in Permitted Investments (including obligations of the Master Servicer or of any of its Affiliatesaffiliates, if such obligations otherwise qualify as Permitted Investments), which shall mature or otherwise be available not later than the Business Day next preceding the Payment Date or on the Payment Date next following the date of such investment as long as such action does not result in a withdrawal or downgrading of the then current ratings on the Notes by the Rating Agencies (except that any investment in an obligation of the institution with which the Collection Account is maintained may mature on or before 12:00 noon, Chicago time, on such Payment Date) and shall not be sold or disposed of prior to its maturity. In the event the Administrator Indenture Trustee is at any time maintaining the Collection Account, any request by the Master Servicer to invest funds on deposit in the Collection Account shall be in writing, shall be delivered to the Administrator Indenture Trustee at or before 10:30 A.M., Chicago time, if such investment is to be made on such day, and shall certify that the requested investment is a Permitted Investment that matures at or prior to the time required hereby. In the absence of such investment instructions, the amounts on deposit in the Collection Account shall remain uninvested. Any such investment shall be registered in the name of or controlled by the Administrator on behalf of the Indenture Trustee as trustee hereunder or in the name of its nominee and to the extent such investments are certificated they shall be maintained in the possession or control of the Administrator on behalf of the Indenture Trustee in the state of its Corporate Trust Office. Except as provided above, all income and gain realized from any such investment shall be for the benefit of the Master Servicer and shall be subject to its withdrawal or order from time to time. The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Collection Account by the Master Servicer out of its own funds immediately as realized. (e) The Administrator Indenture Trustee is hereby authorized to execute purchases and sales of Permitted Investments as directed by the Master Servicer through the facilities of its own trading or capital markets operations. The Administrator Indenture Trustee shall send to the Master Servicer statements reflecting the monthly activity for each such purchase and sale made for the preceding month. Although the Master Servicer recognizes that it may obtain a broker confirmation or written monthly statement containing comparable information at no additional cost, the Master Servicer hereby agrees that confirmations of investments are not required to be issued by the Administrator Indenture Trustee for each month in which a monthly statement is rendered. No statement need be rendered pursuant to the provision of this subsection if no activity occurred in the account for such month.