DISCOVER CARD MASTER TRUST I CREDIT CARD PASS-THROUGH CERTIFICATES TERMS AGREEMENT Dated: September 26, 2006

Exhibit 1.1

DISCOVER CARD MASTER TRUST I

CREDIT CARD PASS-THROUGH CERTIFICATES

TERMS AGREEMENT

Dated: September 26, 2006

To:		Discover Bank, as Seller under the Amended and Restated Pooling and Servicing Agreement, dated as of November 3, 2004, as amended.

Re:		Underwriting Agreement dated July 21, 2006 (the “Agreement”)

Title of Securities:

Discover Card Master Trust I, Series 2006-3 Floating Rate Class A Credit Card Pass-Through Certificates; and

Discover Card Master Trust I, Series 2006-3 Floating Rate Class B Credit Card Pass-Through Certificates.

Initial Principal Amount of Certificates: $526,316,000

Series and Class Designation Schedule:

Discover Card Master Trust I, Series 2006-3 $500,000,000 Floating Rate Class A Credit Card Pass-Through Certificates; and

Discover Card Master Trust I, Series 2006-3 $26,316,000 Floating Rate Class B Credit Card Pass-Through Certificates.

Series Cut-Off Date: October 1, 2006

		Moody's Investors		Standard & Poor's
Expected Certificate Rating:		Service, Inc.		Ratings Services
Class A		Aaa		AAA
Class B		A2		A

Aggregate outstanding balance of Receivables in the Discover Card Master Trust I as of August 31, 2006: $34,120,316,725.56

Expected Date of Series Supplement: October 3, 2006

Certificate Rate:

Class A:     One-month LIBOR plus 0.03%; and

Class B:     One-month LIBOR plus 0.14% per annum

Time of Sale:

11:22 a.m. New York City time on September 26, 2006.

Time of Sale Information:

(1) Series Term Sheet dated September 25, 2006 relating to the Discover Card Master Trust I, Series 2006-3, attached as Annex 1 hereto, which incorporates by reference (a) the prospectus supplement for Series 2006-2 dated as of July 21, 2006 filed pursuant to Rule 424(b) of the Securities Act of 1933, as amended, on July 25, 2006, (b) the static pool information regarding the historical performance of the Receivables for the accounts contained on the internet website http://www.discoverfinancial.com/absdata and (c) the other reports and documents incorporated by reference to the Series Term Sheet and (2) the Pricing Information Schedule.

If, subsequent to the Time of Sale, it is determined that such information included an untrue statement of material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading and the Underwriters have terminated their old purchase contracts and entered into new purchase contracts with purchasers of the Certificates, then “Time of Sale Information” will also include any information that corrects such material misstatements or omissions, together with any other information, to the extent it is made available to purchasers at the time of entry into the last such new purchase contract such that “Time of Sale Information” no longer includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading (“Corrective Information”).

Underwriter Information

“Underwriter Information” shall mean the written information furnished to Discover Bank by the Underwriters for use in the Prospectus and set forth in the “blood letter” from the Underwriters to Discover Bank dated the Time of Delivery.

Pricing Information Schedule:

Bloomberg L.P. screen sets forth the aggregate principal amount of the Certificates to be sold and the final pricing terms for each series of the Discover Card Master Trust I, Series 2006-3 and is attached as Annex 2 hereto. The Underwriters shall have delivered the information set forth on the Pricing Information Schedule to potential investors in the

Securities prior to entering into a purchase contract with the investor for the purchase of such Securities.

Terms of Sale:

The purchase price for the Certificates to the Underwriters will be

99.775% of the aggregate principal amount of the Class A Certificates; and

99.750% of the aggregate principal amount of the Class B Certificates.

The Underwriters will offer the Certificates to the public at a price equal to

100% of the aggregate principal amount of the Class A Certificates; and

100% of the aggregate principal amount of the Class B Certificates.

Time of Delivery: 9:00 A.M., Chicago, Illinois Time, on October 3, 2006, or at such other
time as may be agreed upon in writing.

     Notwithstanding anything in the Agreement or in this Terms Agreement to the contrary, the Agreement and this Terms Agreement constitute the entire agreement and understanding among the parties hereto with respect to the purchase and sale of the Series 2006-3 Certificates. This Terms Agreement may be amended only by written agreement of the parties hereto.

Accepted:

DISCOVER BANK

By:       /s/ Michael F. Rickert     

SCHEDULE I

UNDERWRITERS

 

$500,000,000 Floating Rate Class A Credit Card Pass-Through Certificates, Series 2006-3

		Principal Amount
Morgan Stanley & Co. Incorporated		$	400,000,000
Deutsche Bank Securities Inc.		$	45,000,000
RBC Capital Markets Corporation		$	25,000,000
Calyon Securities (USA) Inc.		$	15,000,000
Wells Fargo Securities, LLC		$	15,000,000

$26,316,000 Floating Rate Class B Credit Card Pass-Through Certificates, Series 2006-3

		Principal Amount
Morgan Stanley & Co. Incorporated		$	21,052,800
Deutsche Bank Securities Inc.		$	2,368,440
RBC Capital Markets Corporation		$	1,315,800
Calyon Securities (USA) Inc.		$	789,480
Wells Fargo Securities, LLC		$	789,480

ANNEX 1

[SERIES TERM SHEET]

(filed as a Free Writing Prospectus
pursuant to Rule 433 on
September 25, 2006)

ANNEX 2

$526 million DISCOVER 06-3
MS Sole Books     CoMgrs: CALYON,DB, RBC,Wells

Class

Size $ (MM)

WAL

ExpFnl

LglFnl

M/S&P/FCH

BNCH

Spread

A1

500.00

4.95

9/11

3/14

Aaa/AAA/AAA

1mL

+  3

B1

26.316

5.04

10/11

3/14

A2/A/A+

1mL

+14

Settlement: 3rd October 2006
1st Coupon: 15th November 2006