Common use of Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account Clause in Contracts

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of prior to maturity. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicer, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account shall remain uninvested. Any interest paid on funds in the Certificate Account by the depository institution from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, if any, excluding Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of prior to maturity. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and; (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain and (xvi) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b)all Prepayment Charges. The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges (excluding Prepayment Charges) paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicer, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and all Prepayment Charges collected during the related Collection Period and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans in such Mortgage Loan Group or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. On the Closing Date, the Class P Deposit shall be deposited in to the Certificate Account. Any amounts held in the Certificate Account (other than the Class P Deposit) may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (E) of the definition of Permitted Investments. All net income realized from any such investment shall be for the day benefit of the Servicer as additional servicing fee; except that is one the net investment income realized from such investments in respect of the Business Day immediately preceding the related Distribution Date up to and including the related any Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, if any, excluding Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC and delivered copies thereof to the Trustee. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and; (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain and (xvi) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b)all Prepayment Charges. The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges (excluding Prepayment Charges) paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof). In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and all Prepayment Charges collected during the related Collection Period and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans in such Mortgage Loan Group or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. On the Closing Date, the Class P Deposit shall be deposited in to the Certificate Account. Any amounts held in the Certificate Account (other than the Class P Deposit) may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (e) of the definition of Permitted Investments. All net income and gain realized from any such investment shall be for the day benefit of the Servicer as additional servicing fee; except that is one the net income and gain realized from such investments in respect of the Business Day immediately preceding the related Distribution Date up to and including the related any Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Certificate Account immediately upon the realization of such loss.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, if any, excluding Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act; provided , however, that the Servicer shall give the Certificate Insurer prompt written notice of any such action. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC and delivered copies thereof to the Trustee and the Certificate Insurer. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and; (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain and (xvi) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b)all Prepayment Charges. The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges (excluding Prepayment Charges) paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof). In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Certificate Insurer and the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Certificate Insurer and the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and all Prepayment Charges collected during the related Collection Period and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans in such Mortgage Loan Group or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. On the Closing Date, the Class P Deposit shall be deposited in to the Certificate Account. Any amounts held in the Certificate Account (other than the Class P Deposit) may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (e) of the definition of Permitted Investments. All net income and gain realized from any such investment shall be for the day benefit of the Servicer as additional servicing fee; except that is one the net income and gain realized from such investments in respect of the Business Day immediately preceding the related Distribution Date up to and including the related any Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Certificate Account immediately upon the realization of such loss.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, if any, excluding Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act; provided further, that with respect to any arrangement referred to in clause (ii) above, the Servicer shall not agree to any extension or modification of the related Mortgage Note unless the Servicer shall have first given the Certificate Insurer telephonic and telecopied notice of its intention to make such extension or modification and the Certificate Insurer, within two Business Days after such notice is given, has not given telephonic and telecopied notice to the Servicer that it does not approve of such extension or modification. (b) The Servicer Trustee shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC and delivered copies thereof to the Trustee and the Certificate Insurer. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges (excluding Prepayment Charges) paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof). In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Certificate Insurer and the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Certificate Insurer and the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City 11:00 a.m. Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account shall remain uninvested. Any interest paid on funds in the Certificate Account by the depository institution from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.deposit

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act; provided, however, that with respect to any arrangement referred to in clause (ii) above, the Servicer shall not agree to any extension or modification of the related Mortgage Note unless the Servicer shall have first given the Certificate Insurer telephonic and telecopied notice of its intention to make such extension or modification and the Certificate Insurer, within two Business Days after such notice is given, has not given telephonic and telecopied notice to the Servicer that it does not approve of such extension or modification. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause the REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject the REMIC Pool to tax or cause the REMIC Pool to fail to qualify as a REMIC and delivered copies thereof to the Trustee and the Certificate Insurer. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such all amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts so applied to since the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b)immediately preceding Deposit Date. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, prepayment fees, if any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances in accordance with Section 5.02(a) or to reimburse itself for payments of Monthly Advances to the extent of recoveries of interest relating to the Mortgage Loans that were the subject of such Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Certificate Insurer and the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Certificate Insurer and the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account constitute a trust account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City 11:00 a.m. Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which and are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer in respect of for the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer Certificate Insurer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan10.01, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account shall remain uninvested. Any interest paid on funds in the Certificate Account by the depository institution from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.applicable

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided PROVIDED that the Servicer shall always at least follow collection procedures that are consistent with standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, if any, excluding Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act; provided , however, that the Servicer shall give the Certificate Insurer prompt written notice of any such action. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC and delivered copies thereof to the Trustee and the Certificate Insurer. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and; (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain and (xvi) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b)all Prepayment Charges. The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges (excluding Prepayment Charges) paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof). In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Certificate Insurer and the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Certificate Insurer and the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and all Prepayment Charges collected during the related Collection Period and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans in such Mortgage Loan Group or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. On the Closing Date, the Class P Deposit shall be deposited in to the Certificate Account. Any amounts held in the Certificate Account (other than the Class P Deposit) may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (e) of the definition of Permitted Investments. All net income and gain realized from any such investment shall be for the day benefit of the Servicer as additional servicing fee; except that is one the net income and gain realized from such investments in respect of the Business Day immediately preceding the related Distribution Date up to and including the related any Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Certificate Account immediately upon the realization of such loss.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act; provided, however, that with respect to any arrangement referred to in clause (ii) above, the Servicer shall not agree to any extension or modification of the related Mortgage Note unless the Servicer shall have first given the Certificate Insurer telephonic and telecopied notice of its intention to make such extension or modification and the Certificate Insurer, within two Business Days after such notice is given, has not given telephonic and telecopied notice to the Servicer that it does not approve of such extension or modification. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturity. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income realized from any such investment shall be for the benefit of maturity unless the Servicer as additional servicing compensation and shall be subject to its withdrawal has obtained an Opinion of Counsel that such sale or order from time to time. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need disposition will not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if cause any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicer, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account shall remain uninvested. Any interest paid on funds in the Certificate Account by the depository institution from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act; provided, however, that with respect to any arrangement referred to in clause (ii) above, the Servicer shall not agree to any extension or modification of the related Mortgage Note unless the Servicer shall have first given the Certificate Insurer telephonic and telecopied notice of its intention to make such extension or modification and the Certificate Insurer, within two Business Days after such notice is given, has not given telephonic and telecopied notice to the Servicer that it does not approve of such extension or modification. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of prior to maturity. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicer, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account shall remain uninvested. Any interest paid on funds in the Certificate Account by the depository institution from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.mature

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such all amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts so applied to since the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b)immediately preceding Deposit Date. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, prepayment fees, if any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances in accordance with Section 5.02(a) or to reimburse itself for payments of Monthly Advances to the extent of recoveries of interest relating to the Mortgage Loans that were the subject of such Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City 11:00 a.m. Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds Monthly Interest and Principal Distribution Amounts for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which and are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on Mortgage Loans in such Mortgage Loans Loan Group by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.03, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (f) of the definition of Permitted Investments. All net income and gain realized from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date any such investment shall be for the benefit of the Trustee Servicer as additional trustee fee, servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Certificate Account immediately upon the realization of such loss.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such all amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts so applied to since the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b)immediately preceding Deposit Date. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, prepayment fees, if any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances in accordance with Section 5.02(a) or to reimburse itself for payments of Monthly Advances to the extent of recoveries of interest relating to the Mortgage Loans that were the subject of such Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City time [11:00 a.m. Los Angeles time] on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which and are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on Mortgage Loans in such Mortgage Loans Loan Group by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.03, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (f) of the definition of Permitted Investments. All net income and gain realized from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date any such investment shall be for the benefit of the Trustee Servicer as additional trustee fee, servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Certificate Account immediately upon the realization of such loss.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, if any, excluding Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of prior to maturity. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and; (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain and (xvi) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b)all Prepayment Charges. The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges (excluding Prepayment Charges) paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof). In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and all Prepayment Charges collected during the related Collection Period and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans in such Mortgage Loan Group or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. On the Closing Date, the Class P Deposit shall be deposited in to the Certificate Account. Any amounts held in the Certificate Account (other than the Class P Deposit) may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (E) of the definition of Permitted Investments. All net income realized from any such investment shall be for the day benefit of the Servicer as additional servicing fee; except that is one the net investment income realized from such investments in respect of the Business Day immediately preceding the related Distribution Date up to and including the related any Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts 68 74 required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such all amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts so applied to since the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b)immediately preceding Deposit Date. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, prepayment fees, if any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances in accordance with Section 5.02(a) or to reimburse itself for payments of Monthly Advances to the extent of recoveries of interest relating to the Mortgage Loans that were the subject of such Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City 11:00 a.m. Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which and are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on Mortgage Loans in such Mortgage Loans Loan Group by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.03, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (f) of the definition of Permitted Investments. All net income and gain realized from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date any such investment shall be for the benefit of the Trustee Servicer as additional trustee fee, servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Certificate Account immediately upon the realization of such loss.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act; provided, however, that with respect to any arrangement referred to in clause (ii) above, the Servicer shall not agree to any extension or modification of the related Mortgage Note unless the Servicer shall have first given the Certificate Insurer telephonic and telecopied notice of its intention to make such extension or modification and the Certificate Insurer, within two Business Days after such notice is given, has not given telephonic and telecopied notice to the Servicer that it does not approve of such extension or modification. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause the REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject the REMIC Pool to tax or cause the REMIC Pool to fail to qualify as a REMIC. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such all amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts so applied to since the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b)immediately preceding Deposit Date. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, prepayment fees, if any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances in accordance with Section 5.02(a) or to reimburse itself for payments of Monthly Advances to the extent of recoveries of interest relating to the Mortgage Loans that were the subject of such Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approveCertificate Insurer, Standard & Poor's and Moodx'x xxx approve the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies Certificate Insurer, Standard & Poor's and Moodx'x xxx confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account constitute a trust account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account shall remain uninvested. Any interest paid on funds in the Certificate Account by the depository institution from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.the

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicer, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account shall remain uninvested. Any interest paid on funds in the Certificate Account by the depository institution from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.of

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, if any, excluding Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act; provided further, that with respect to any arrangement referred to in clause (ii) above, the Servicer shall not agree to any extension or modification of the related Mortgage Note unless the Servicer shall have first given the Certificate Insurer telephonic and telecopied notice of its intention to make such extension or modification and the Certificate Insurer, within two Business Days after such notice is given, has not given telephonic and telecopied notice to the Servicer that it does not approve of such extension or modification. (b) The Servicer Trustee shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC and delivered copies thereof to the Trustee and the Certificate Insurer. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and; (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain and (xvi) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b)all Prepayment Charges. The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges (excluding Prepayment Charges) paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof). In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Certificate Insurer and the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Certificate Insurer and the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City 11:00 a.m. Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which and are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans in such Mortgage Loan Group or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer Holder of the Class R Certificate pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (e) of the definition of Permitted Investments. All net income and gain realized from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date any such investment shall be for the benefit of the Trustee Servicer as additional trustee fee, servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Certificate Account immediately upon the realization of such loss.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such all amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts so applied to since the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b)immediately preceding Deposit Date. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, prepayment fees, if any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicer, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding.charges (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account constitute a trust account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City 11:00 a.m. Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which and are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on Mortgage Loans in such Mortgage Loans Loan Group by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.03, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (f) of the definition of Permitted Investments. All net income and gain realized from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date any such investment shall be for the benefit of the Trustee Servicer as additional trustee fee, servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer 63 and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Certificate Account immediately upon the realization of such loss.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, if any, excluding Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's ’s financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's ’s general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, as applicable, in trust for the registered holders of Aames Mortgage Trust 2002-1 2 Mortgage Pass-Through Certificates, Series 2002-12, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of prior to maturity. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation compensation, and shall be subject to its withdrawal or order from time to time, and the Servicer shall bear any and all losses incurred from any such investments. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and; (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain and (xvi) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b)all Prepayment Charges. The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges (excluding Prepayment Charges) paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicer, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-–payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 2 Mortgage Pass-Through Certificates, Series 2002-12. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and all Prepayment Charges collected during the related Collection Period and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans in such Mortgage Loan Group or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's ’s failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. On the Closing Date, the Class P Deposit shall be deposited in to the Certificate Account. Any amounts held in the Certificate Account (other than the Class P Deposit) may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account absence of such direction the Trustee shall invest in Permitted Investments described in clause (E) of the definition of Permitted Investments. All net income realized from any such investment shall be for the benefit of the Servicer as additional servicing fee and any losses incurred from any such investments shall be borne by the depository institution Servicer; except that the net investment income realized from such investments in respect of the day that is one Business Day immediately preceding the related Distribution Date up to and including the related any Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with or better than standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, prepayment fees, if any, Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining 61 67 the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of at a gain prior to maturitymaturity unless the Servicer has obtained an Opinion of Counsel that such sale or disposition will not cause any REMIC Pool to be subject to the tax on income from prohibited transactions imposed by Code Section 860F(a)(1), or otherwise subject any REMIC Pool to tax or cause any REMIC Pool to fail to qualify as a REMIC. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income and gain realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Collection Account immediately upon the realization of such loss. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain (x) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b). The Servicer shall replace such all amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts so applied to since the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b)immediately preceding Deposit Date. The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, prepayment fees, if any, or extension or other administrative charges paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicerwithdrawal, from time to time, (i) to make 62 68 deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances in accordance with Section 5.02(a) or to reimburse itself for payments of Monthly Advances to the extent of recoveries of interest relating to the Mortgage Loans that were the subject of such Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account constitute a trust account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City 11:00 a.m. Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for a Mortgage Loan Group and the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which and are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer for the related Mortgage Loan Group in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on Mortgage Loans in such Mortgage Loans Loan Group by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.03, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. Any amounts held in the Certificate Account may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (e) of the definition of Permitted Investments. All net income and gain realized from the day that is one Business Day immediately preceding the related Distribution Date up to and including the related Distribution Date any such investment shall be for the benefit of the Trustee Servicer as additional trustee fee, servicing compensation and shall be subject to its withdrawal or order from time to time. Any losses realized in connection with any such investment shall be for the account of the Servicer and the Servicer shall deposit or cause to be deposited the amount of such loss (to the extent not offset by income from other investments) in the Certificate Account immediately upon the realization of such loss.

Collection of Certain Mortgage Loan Payments; Collection Account and Certificate Account. (a) The Servicer shall, to the extent such procedures shall be consistent with this Agreement, follow such collection procedures as it follows from time to time with respect to home equity mortgage loans in its servicing portfolio that are comparable to the Mortgage Loans; provided that the Servicer shall always at least follow collection procedures that are consistent with standard industry practices. Consistent with the foregoing, and subject to the limitations in Section 3.05, the Servicer may in its discretion (i) waive any assumption fees, late payment charges, charges for checks returned for insufficient funds, if any, excluding Prepayment Charges, or other fees that may be collected in the ordinary course of servicing the Mortgage Loans, (ii) if a Mortgagor is in default or about to be in default because of a Mortgagor's financial condition, arrange with the Mortgagor a schedule for the payment of delinquent payments due on the related Mortgage Loan, or (iii) modify payments of monthly principal and interest on any Mortgage Loan becoming subject to the terms of the Relief Act in accordance with the Servicer's general policies for comparable home equity mortgage loans subject to such Act. (b) The Servicer shall establish and maintain, or cause to be established and maintained, one or more Eligible Accounts in the name of the Servicer or the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1, that in the aggregate are the Collection Account. All amounts held in the Collection Account shall be invested by the depository institution or trust company then maintaining the account at the written direction of the Servicer in Permitted Investments that mature not later than the Deposit Date next succeeding the date of investment. No Permitted Investment shall be sold or disposed of prior to maturity. The Servicer shall not retain any cash or investment in the Collection Account for a period in excess of 12 months and cash therein shall be considered transferred to Certificate Account on a first-in, first-out basis. All net income realized from any such investment shall be for the benefit of the Servicer as additional servicing compensation and shall be subject to its withdrawal or order from time to time. (c) Subject to Section 3.02(d), the Servicer shall deposit in the Collection Account each of the following payments on and collections in respect of the Mortgage Loans as soon as practicable, but in no event later than the close of business on the second Business Day after its receipt thereof: (i) all payments in respect of or allocable to interest on the Mortgage Loans (including any net income from REO Properties); (ii) all Principal Payments; (iii) all Payments Ahead; (iv) all Net Liquidation Proceeds; and; (v) all Trust Insurance Proceeds (including, for this purpose, any amounts required to be credited by the Servicer pursuant to the last sentence of Section 3.04); provided, however, that with respect to each Collection Period, the Servicer shall be permitted to retain and (xvi) from payments in respect of interest on a Mortgage Loan, the Monthly Servicing Fee for such Mortgage Loan and (y) any reimbursed Servicing Advances and Monthly Advances related thereto solely in accordance with Sections 5.02(a) and (b)all Prepayment Charges. The Servicer shall replace such amounts previously withdrawn from the Collection Account and applied by the Servicer towards the payment of a Monthly Advance pursuant to Section 5.02(a) or towards the payment of a Servicing Advance pursuant to Section 5.02(b) by depositing into the Collection Account on or prior to the Deposit Date immediately following such withdrawal an amount equal to the total of all such amounts applied to the payment of a Servicing Advance and those amounts applied to the payment of a Monthly Advance required to be deposited pursuant to Section 5.01(b). The foregoing requirements respecting deposits to the Collection Account are exclusive, it being understood that, without limiting the generality of the foregoing, the Servicer need not deposit in the Collection Account amounts representing fees, late payment charges, Prepayment Charges, charges for checks returned for insufficient funds, if any, or extension or other administrative charges (excluding Prepayment Charges) paid by Mortgagors or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items. The amounts deposited in the Collection Account are subject to withdrawal by the Servicer, from time to time, (i) to make deposits into the Certificate Account pursuant to Section 3.02(e), (ii) to pay itself the Monthly Servicing Fee pursuant to Section 3.08 and to make Servicing Advances or to reimburse itself for Servicing Advances, as applicable, in either case in accordance with Section 5.02(b), (iii) to make Monthly Advances or to reimburse itself for payments of Monthly Advances, as applicable, in either case in accordance with Section 5.02(a) and (iv) to reimburse itself for expenses reimbursable pursuant to Section 7.03 hereof. In addition, if the Servicer deposits in the Collection Account any amount not required to be so deposited or any amount in respect of payments by Mortgagors made by checks subsequently returned for insufficient funds or other reason for non-payment, it may at any time withdraw such amount from the Collection Account, any provision herein to the contrary notwithstanding. (d) Upon such terms as the Rating Agencies may approve, the Servicer may make the deposits to the Collection Account referred to in Section 3.02(c) on a later day than the second Business Day after receipt of the amounts required to be so deposited, which terms and later day shall be specified by the Rating Agencies and confirmed to the Trustee and the Servicer in writing. (e) The Trustee shall establish and maintain the Certificate Account in the name of the Trustee, in trust for the registered holders of Aames Mortgage Trust 2002-1 Mortgage Pass-Through Certificates, Series 2002-1Account. The Certificate Account shall be an Eligible Account segregated on the books of the Trustee and held by the Trustee in trust, and the Certificate Account and the amounts deposited therein shall not be subject to any claim, liens or encumbrances of any creditors or depositors of the Trustee or the Company (whether made directly or indirectly through a liquidator, receiver or trustee in bankruptcy of the Trustee or the Company). At or before 2:00 p.m. New York City Los Angeles time on each Deposit Date, the Servicer shall withdraw from the Collection Account all amounts on deposit therein that constitute any portion of Available Funds for the related Distribution Date (including any amounts therein that are being held for distribution on a subsequent Distribution Date which are being applied toward the Monthly Advance for the related Distribution Date pursuant to Section 5.02(a)) and all Prepayment Charges collected during the related Collection Period and remit such amounts to the Trustee for deposit in the Certificate Account. In addition, any Compensating Interest and Monthly Advances required to be made by the Servicer in respect of the related Distribution Date and any amounts required to be deposited into the Certificate Account in connection with a purchase or repurchase of any Mortgage Loans or any shortage on such Mortgage Loans by the Seller or the Servicer pursuant to Section 2.03, 2.05, 3.01, 3.06 or 10.01 or a substitution of a Qualified Replacement Mortgage Loan pursuant to Section 2.03 or 2.05, or in connection with a purchase of Mortgage Loans by the Servicer pursuant to Section 10.01 or in connection with the Servicer's failure to adjust the Mortgage Loan Rate on an Adjustable Rate Mortgage Loan, shall be remitted to the Trustee for deposit in the Certificate Account on the applicable Deposit Date. On the Closing Date, the Class P Deposit shall be deposited in to the Certificate Account. Any amounts held in the Certificate Account (other than the Class P Deposit) may be invested at the written direction of the Servicer in Permitted Investments upon the same terms and conditions as those specified in clause (b) above with respect to the Collection Account except that such investments shall remain uninvested. Any interest paid on funds mature not later than the Business Day preceding the Distribution Date next succeeding the date of investment, and in the Certificate Account by absence of such direction the depository institution Trustee shall invest in Permitted Investments described in clause (E) of the definition of Permitted Investments. All net income realized from any such investment shall be for the day benefit of the Servicer as additional servicing fee; except that is one the net investment income realized from such investments in respect of the Business Day immediately preceding the related Distribution Date up to and including the related any Distribution Date shall be for the benefit of the Trustee as additional trustee fee, and shall be subject to its withdrawal or order from time to time.