EXHIBIT 4.8



                               Dated 26 May 2004



                               NORTHERN ROCK PLC
                        as Current Issuer Cash Manager




                          GRANITE MORTGAGES 04-2 PLC
                               as Current Issuer



                                    - and -



                             THE BANK OF NEW YORK
                                as Note Trustee












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                       ISSUER CASH MANAGEMENT AGREEMENT

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                          SIDLEY AUSTIN BROWN & WOOD
                               WOOLGATE EXCHANGE
                             25 BASINGHALL STREET
                                LONDON EC2V 5HA
                            TELEPHONE 020 7360 3600
                            FACSIMILE 020 7626 7937

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                               Table of Contents
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1.   Definitions and Interpretation..........................................1

2.   Appointment of Current Issuer Cash Manager..............................2

3.   The Current Issuer Cash Management Services.............................2

4.   Payments, Accounts, Ledgers.............................................3

5.   Payments Under Current Issuer Swap Agreements; Termination &
     Swap Collateral.........................................................6

6.   No Liability...........................................................10

7.   Costs and Expenses.....................................................10

8.   Information............................................................10

9.   Remuneration...........................................................12

10.  Covenants, Representations and Warranties of Current Issuer
     Cash Manager...........................................................13

11.  Current Issuer Cash Management Services Non-Exclusive..................14

12.  Termination............................................................14

13.  Further Assurances.....................................................17

14.  Miscellaneous..........................................................17

15.  Confidentiality........................................................18

16.  No Partnership.........................................................19

17.  Assignment.............................................................19

18.  The Note Trustee.......................................................19

19.  Non Petition Covenant; Limited Recourse................................20

20.  Amendments and Waiver..................................................21

21.  Notices................................................................21

22.  Third Party Rights.....................................................22

23.  Execution in Counterparts; Severability................................22

24.  Governing Law and Jurisdiction; Appropriate Forum......................22

SCHEDULE 1  The Current Issuer Cash Management Services.....................24


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                               Table of Contents
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                                  (continued)

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SCHEDULE 2  Cash Management and Maintenance of Ledgers......................27
SCHEDULE 3  Form of Issuer Quarterly Report.................................48
SCHEDULE 4  Controlled Amortisation Amount/Target Balance...................53
SCHEDULE 5  Current Issuer Cash Manager Representations and Warranties......59



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THIS ISSUER CASH MANAGEMENT AGREEMENT is made on 26 May 2004

BETWEEN:

(1)    NORTHERN ROCK PLC (registered number 3273685), a public limited company
       incorporated under the laws of England and Wales whose registered
       office is at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
       in its capacity as the Current Issuer Cash Manager;

(2)    GRANITE MORTGAGES 04-2 PLC (registered number 5057377), a public
       limited company incorporated under the laws of England and Wales whose
       registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
       as the Current Issuer; and

(3)    THE BANK OF NEW YORK, whose principal office is at 48th Floor, One
       Canada Square, London E14 5AL, in its capacity as Note Trustee.

WHEREAS:

(A)    On the Closing Date the Current Issuer will issue the Current Issuer
       Notes constituted by the Current Issuer Trust Deed. From the proceeds
       of the issue of those Current Issuer Notes, the Current Issuer shall
       make an Intercompany Loan to Granite Finance Funding Limited pursuant
       to the terms of the Current Issuer Intercompany Loan Agreement.

(B)    The Current Issuer Cash Manager is willing to provide cash management
       services to the Current Issuer and the Note Trustee on the terms and
       subject to the conditions contained in this Agreement.

IT IS HEREBY AGREED as follows:

1.     Definitions and Interpretation

1.1    The provisions of:

       (a)  the Master Definitions Schedule as amended and restated by (and
            appearing in Appendix 1 to) the Master Definitions Schedule Eighth
            Amendment Deed made on 26 May 2004 between, among others, the
            Seller, Funding and the Mortgages Trustee, and

       (b)  the Issuer Master Definitions Schedule signed for the purposes of
            identification by Sidley Austin Brown & Wood and Allen & Overy LLP
            on 26 May 2004,

       (as the same have been and may be amended, varied or supplemented from
       time to time with the consent of the parties hereto) are expressly and
       specifically incorporated into and shall apply to this Agreement. The
       Issuer Master Definitions Schedule specified above shall prevail to the
       extent that it conflicts with the Master Definitions Schedule.



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2.     Appointment of Current Issuer Cash Manager

2.1    Appointment: Until termination pursuant to Clause 12 (Termination), the
       Current Issuer and the Note Trustee (according to their respective
       estates and interests) each hereby appoints the Current Issuer Cash
       Manager as its lawful agent on each of their behalves to provide the
       Current Issuer Cash Management Services set out in this Agreement,
       including in relation to the Current Issuer Notes to be issued by the
       Current Issuer. The Current Issuer Cash Manager in each case hereby
       accepts such appointment on the terms and subject to the conditions of
       this Agreement.

2.2    Duties prescribed by Transaction Documents: For the avoidance of doubt
       and in connection with the powers conferred under Clause 2.1
       (Appointment), save as expressly provided elsewhere in this Agreement,
       nothing herein shall be construed so as to give the Current Issuer Cash
       Manager any powers, rights, authorities, directions or obligations
       other than as specified in this Agreement or any of the other
       Transaction Documents.

2.3    Appointment conditional upon issuance of Current Issuer Notes: The
       appointment pursuant to Clause 2.1 (Appointment) is conditional upon
       the issue of the Current Issuer Notes and the making of the Current
       Issuer Intercompany Loan under the Current Issuer Intercompany Loan
       Agreement and shall take effect upon and from the Closing Date
       automatically without any further action on the part of any person,
       PROVIDED THAT if the issue of the Current Issuer Notes has not occurred
       by 31 May 2004, or such later date as the Current Issuer and the Lead
       Managers may agree, this Agreement shall cease to be of further effect.

3.     The Current Issuer Cash Management Services

3.1    General: The Current Issuer Cash Manager shall provide the services set
       out in this Agreement (including, without limitation, Schedules 1 and 2
       attached hereto) (the "Current Issuer Cash Management Services").

3.2    Approvals and authorisations: The Current Issuer Cash Manager shall
       maintain, or use reasonable endeavours to procure the maintenance of,
       the approvals, authorisations, consents and licences required in
       connection with the business of the Current Issuer and shall prepare
       and submit, or procure the preparation and submission of, on behalf of
       the Current Issuer, all necessary applications and requests for any
       further approvals, authorisations, consents or licences which may be
       required in connection with the business of the Current Issuer and
       shall, so far as it reasonably can do so, perform the Current Issuer
       Cash Management Services in such a way as not to prejudice the
       continuation of any such approvals, authorisations, consents or
       licences.

3.3    Compliance with Transaction Documents, etc.: The Current Issuer Cash
       Management Services shall include procuring (so far as the Current
       Issuer Cash Manager, using its reasonable endeavours, is able so to do)
       compliance by the Current Issuer with all applicable legal requirements
       and with the terms of the Current Issuer Transaction Documents,
       PROVIDED THAT the Current Issuer Cash Manager shall not lend or provide
       any sum to the Current Issuer and the Current Issuer Cash Manager shall
       have no liability whatsoever to the Current Issuer, the Note Trustee or
       any other person for any failure by the Current Issuer to make any
       payment due by



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       any of them under any of the Current Issuer Transaction Documents
       (other than to the extent arising from the Current Issuer Cash Manager
       failing to perform any of its obligations under any of the Transaction
       Documents).

3.4    Liability of Current Issuer Cash Manager:

       (a)  The Current Issuer Cash Manager shall indemnify each of the
            Current Issuer and the Note Trustee on demand for any loss,
            liability, claim, expense or damage suffered or incurred by it in
            respect of the negligence, bad faith or wilful default of the
            Current Issuer Cash Manager in carrying out its functions as
            Current Issuer Cash Manager under, or as a result of a breach by
            the Current Issuer Cash Manager of, the terms and provisions of
            this Agreement or such other Transaction Documents to which the
            Current Issuer Cash Manager is a party (in its capacity as such)
            in relation to such functions.

       (b)  For the avoidance of doubt, the Current Issuer Cash Manager shall
            not be liable in respect of any loss, liability, claim, expense or
            damage suffered or incurred by the Current Issuer or the Note
            Trustee and/or any other person as a result of the proper
            performance of the Current Issuer Cash Management Services (as
            defined in Clause 3.1 (General)) by the Current Issuer Cash
            Manager save to the extent that such loss, liability, claim,
            expense or damage is suffered or incurred as a result of any
            negligence, bad faith or wilful default of the Current Issuer Cash
            Manager under, or as a result of a breach by the Current Issuer
            Cash Manager of, the terms and provisions of this Agreement or any
            of the other Transaction Documents to which the Current Issuer
            Cash Manager is a party (in its capacity as such) in relation to
            such functions.

4.     Payments, Accounts, Ledgers

4.1    Current Issuer Bank Accounts: The Current Issuer Cash Manager hereby
       confirms that each of the Current Issuer Transaction Accounts have been
       established on or before the date hereof and that the mandates in the
       agreed form will apply thereto at the Closing Date. The Current Issuer
       Cash Manager undertakes (to the extent to which the same is within its
       control in its capacity as Current Issuer Cash Manager) that at the
       Closing Date the Current Issuer Transaction Accounts will be operative
       and that the Current Issuer Cash Manager will not knowingly create or
       permit to subsist any Security Interest in relation to the Current
       Issuer Transaction Accounts other than as created under or permitted
       pursuant to the Current Issuer Deed of Charge.

4.2    Current Issuer Ledgers:

       (a)  The Current Issuer Cash Manager shall open and maintain in the
            books of the Current Issuer the following ledgers:

            (i)    the Current Issuer Revenue Ledger, which shall record all
                   Current Issuer Revenue Receipts standing to the credit of
                   the Current Issuer Transaction Accounts from time to time;

            (ii)   the Current Issuer Principal Ledger, which shall record all
                   Current Issuer Principal Receipts standing to the credit of
                   the Current Issuer Transaction Accounts from time to time;



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            (iii)  the Current Issuer Principal Deficiency Ledger, which shall
                   comprise four sub-ledgers to be known as the Class A
                   Principal Deficiency Sub Ledger, the Class B Principal
                   Deficiency Sub Ledger, the Class M Principal Deficiency Sub
                   Ledger and the Class C Principal Deficiency Sub Ledger, and
                   which shall record (A) any principal deficiencies arising
                   from Losses on the Mortgage Loans which have been allocated
                   by Funding to the Current Issuer Intercompany Loan, (B) the
                   application of Current Issuer Principal Receipts to meet
                   any deficiency in Current Issuer Revenue Receipts, (C) the
                   application of Funding Available Principal Receipts to fund
                   the Current Issuer Liquidity Reserve Fund and (D) the
                   application of Current Issuer Available Revenue Receipts to
                   be applied to reduce the balances on the Current Issuer
                   Principal Deficiency Ledger; and

            (iv)   the Swap Collateral Ledger, (which shall comprise of such
                   sub-ledgers as the Current Issuer Cash Manager considers
                   appropriate) to record all payments, transfers and receipts
                   in connection with Swap Collateral, including, without
                   limitation:

                   (A)  the receipt of any Swap Collateral by the Current
                        Issuer from the Swap Providers;

                   (B)  the receipt of any income or distributions in respect
                        of such Swap Collateral;

                   (C)  the payment or transfer of all, or any part of, such
                        Swap Collateral to the relevant Current Issuer Swap
                        Provider; and

                   (D)  the realisation of such Swap Collateral,


                   provided that the Swap Collateral Ledger (and sub-ledgers)
                   shall only be established in the event that any Current
                   Issuer Swap Provider pays or transfers Swap Collateral to
                   the Issuer in accordance with the relevant Current Issuer
                   Swap Agreement.

       (b)  The Current Issuer Cash Manager shall make credits and debits to
            the Current Issuer Ledgers in accordance with the provisions of
            paragraphs 5, 6, 7, 8, 9 and 10 of Schedule 2 hereto.

4.3    Payments:

       (a)  The Current Issuer Cash Manager shall procure that the following
            amounts payable to the Current Issuer are paid into the Current
            Issuer Transaction Accounts:

            (i)    all Current Issuer Revenue Receipts;

            (ii)   all Current Issuer Principal Receipts;

            (iii)  all amounts (excluding Swap Collateral Excluded Amounts)
                   received by the Current Issuer pursuant to the Current
                   Issuer Swap Agreements; and



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            (iv)   any other amounts whatsoever received by or on behalf of
                   the Current Issuer on or after the Closing Date,

            and the Current Issuer Cash Manager shall procure that all
            investment proceeds from Authorised Investments purchased from
            amounts standing to the credit of any of the Current Issuer
            Transaction Accounts are credited to each such account. All
            amounts received by the Current Issuer denominated (i) in Sterling
            shall be paid into the Current Issuer Sterling Account, (ii) in
            U.S. Dollars shall be paid into the Current Issuer Dollar Account
            and (iii) in Euro shall be paid into the Current Issuer Euro
            Account.

       (b)  The Current Issuer Cash Manager shall procure that all transfers
            and withdrawals of amounts standing to the credit of the Current
            Issuer Transaction Accounts and Swap Collateral Accounts shall be
            made in accordance with the provisions of the Current Issuer Bank
            Account Agreement and the Current Issuer Deed of Charge.

       (c)  Each of the payments into the Current Issuer Transaction Accounts
            referred to in Clause 4.3(a) shall be made forthwith upon receipt
            by the Current Issuer or the Current Issuer Cash Manager of the
            amount in question.

       (d)  For the avoidance of doubt, as soon as reasonably practicable
            after becoming aware of the same, the Current Issuer Cash Manager
            may, and shall, withdraw Cash from the Current Issuer Transaction
            Accounts and Swap Collateral Cash Accounts, if, and to the extent
            that, such Cash was credited thereto in error and shall use its
            reasonable endeavours to ensure that such Cash is applied
            correctly thereafter.

       (e)  The Current Issuer Cash Manager shall promptly notify each of the
            Current Issuer and the Note Trustee of any additional account or
            sub-account which supplements or replaces any account or
            sub-account specifically referred to in the definition of the
            "Current Issuer Transaction Accounts" in the Current Issuer Master
            Definitions Schedule.

       (f)  Each of the Current Issuer Cash Manager and the Current Issuer
            undertakes that, so far as it is able to procure the same, the
            Current Issuer Transaction Accounts and all instructions and
            mandates in relation thereto will continue to be operative and
            will not, save as permitted pursuant to the Current Issuer Bank
            Account Agreement, be changed without the prior written consent of
            the Note Trustee (such consent not to be unreasonably withheld or
            delayed). For the avoidance of doubt, the Current Issuer Cash
            Manager may change the authorised signatories in respect of any
            instructions or mandates relating to the Current Issuer, without
            the prior written consent of the Note Trustee, in accordance with
            the terms of the Current Issuer Bank Account Agreement.

4.4    Withdrawals:

       (a)  The Current Issuer Cash Manager may make withdrawals on behalf of
            the Current Issuer from the Current Issuer Transaction Accounts
            (but only until receipt of a copy of a Current Issuer Note
            Enforcement Notice served by the Note Trustee on the Current
            Issuer) and Swap Collateral Accounts as



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            permitted by this Agreement, the Current Issuer Trust Deed, the
            Current Issuer Bank Account Agreement and the Current Issuer Deed
            of Charge, but shall not in carrying out its functions as Current
            Issuer Cash Manager under this Agreement otherwise make
            withdrawals from the Current Issuer Transaction Accounts and Swap
            Collateral Accounts.

       (b)  Upon receipt of such a Current Issuer Note Enforcement Notice, no
            amount shall be withdrawn from any Current Issuer Transaction
            Account by the Current Issuer Cash Manager without the prior
            written consent of the Note Trustee.

4.5    Cash Management: In administering the Current Issuer Transaction
       Accounts on behalf of the Current Issuer and the Note Trustee, the
       Current Issuer Cash Manager shall comply with the provisions of
       Schedule 2 prior to receipt by the Current Issuer Cash Manager of a
       copy of any Current Issuer Note Enforcement Notice served on the
       Current Issuer. Following service of a Current Issuer Note Enforcement
       Notice, the Note Trustee or any Receiver appointed by the Note Trustee
       will administer the Current Issuer Transaction Accounts in accordance
       with the terms of the Current Issuer Deed of Charge.

5.     Payments Under Current Issuer Swap Agreements; Termination & Swap
       Collateral

5.1    Current Issuer Available Revenue Receipts: Subject to the order of
       priorities of payment set out in Schedule 2 or, as the case may be, the
       Current Issuer Deed of Charge, on each Payment Date prior to the
       enforcement of the Current Issuer Security under the Current Issuer
       Deed of Charge, the Current Issuer Cash Manager will pay Current Issuer
       Available Revenue Receipts received in respect of the Current Issuer
       Intercompany Loan (after making payments ranking higher in the order or
       priority of payments) to the Current Issuer Basis Rate Swap Provider.
       Amounts received by the Current Issuer Cash Manager from the Current
       Issuer Basis Rate Swap Provider will be applied to pay (1) in respect
       of the Dollar Notes, the Current Issuer Dollar Currency Swap Provider,
       and amounts received by the Current Issuer Cash Manager from the
       Current Issuer Dollar Currency Swap Provider will be applied to pay
       amounts due to the holders of the relevant classes of Dollar Notes in
       accordance with the Current Issuer Pre-Enforcement Revenue Priority of
       Payments, (2) in respect of the Sterling Notes, amounts due to the
       holders of the relevant classes of Sterling Notes in accordance with
       the Current Issuer Pre-Enforcement Revenue Priority of Payments and (3)
       in respect of the Euro Notes, the Current Issuer Euro Currency Swap
       Provider, and amounts received by the Current Issuer Cash Manager from
       the Current Issuer Euro Currency Swap Provider will be applied to pay
       amounts due to the holders of the relevant classes of Euro Notes in
       accordance with the Current Issuer Pre-Enforcement Revenue Priority of
       Payments.

5.2    Current Issuer Available Principal Receipts: Subject to the order of
       priorities of payment set out in Schedule 2 or, as the case may be, the
       Current Issuer Deed of Charge, on each Payment Date prior to
       enforcement of the Current Issuer Security under the Current Issuer
       Deed of Charge, the Current Issuer Cash Manager will pay Current Issuer
       Available Principal Receipts received in respect of the Current Issuer
       Intercompany Loan (after making payments ranking higher in the order or
       priority of payments) to (1) in respect of the Dollar Notes, the
       Current Issuer Dollar Currency Swap Provider, and amounts received by
       the Current Issuer Cash Manager from the Current Issuer Dollar Currency




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       Swap Provider will be applied to pay amounts due to the holders of the
       relevant classes of Dollar Notes in accordance with the Current Issuer
       Pre-Enforcement Principal Priority of Payments, (2) in respect of the
       Sterling Notes, amounts due to the holders of the relevant classes of
       Sterling Notes in accordance with the Current Issuer Pre-Enforcement
       Principal Priority of Payments, and (3) in respect of the Euro Notes,
       the Current Issuer Euro Currency Swap Provider, and amounts received by
       the Current Issuer Cash Manager from the Current Issuer Euro Currency
       Swap Provider will be applied to pay amounts due to the holders of the
       relevant classes of Euro Notes in accordance with the Current Issuer
       Pre-Enforcement Principal Priority of Payments.

5.3    Following a Non-Asset Trigger Event: On each Payment Date following the
       occurrence of a Non-Asset Trigger Event under the Mortgages Trust Deed
       but prior to enforcement of the Funding Security under the Funding Deed
       of Charge or the Current Issuer Security under the Current Issuer Deed
       of Charge, the Current Issuer Cash Manager will pay Current Issuer
       Available Principal Receipts received in respect of the Current Issuer
       Intercompany Loan (after making payments ranking higher in the order or
       priority of payments) to (1) in respect of the Dollar Notes, the
       Current Issuer Dollar Currency Swap Provider, and amounts received by
       the Current Issuer Cash Manager from the Current Issuer Dollar Currency
       Swap Provider will be applied to pay amounts due to the holders of the
       relevant classes of Dollar Notes, and (2) in respect of the Sterling
       Notes, amounts due to the holders of the relevant classes of Sterling
       Notes, and (3) in respect of the Euro Notes, the Current Issuer Euro
       Currency Swap Provider, and amounts received by the Current Issuer Cash
       Manager from the Current Issuer Euro Currency Swap Provider will be
       applied to pay amounts due to the holders of the relevant classes of
       Euro Notes, each in accordance with the priority of payments set forth
       in Clause 4.2 (Distribution of Current Issuer Available Principal
       Receipts Following the Occurrence of a Non-Asset Trigger Event) of
       Schedule 2.

5.4    Following an Asset Trigger Event: On each Payment Date following the
       occurrence of an Asset Trigger Event under the Mortgages Trust Deed but
       prior to enforcement of the Funding Security under the Funding Deed of
       Charge or the Current Issuer Security under the Current Issuer Deed of
       Charge, the Current Issuer Cash Manager will pay Current Issuer
       Available Principal Receipts received in respect of the Current Issuer
       Intercompany Loan (after making payments ranking higher in the order or
       priority of payments) to (1) in respect of the Dollar Notes, the
       Current Issuer Dollar Currency Swap Provider, and amounts received by
       the Current Issuer Cash Manager from the Current Issuer Dollar Currency
       Swap Provider will be applied to pay amounts due to the holders of the
       relevant classes of Dollar Notes, and (2) in respect of the Sterling
       Notes, amounts due to the holders of the relevant classes of Sterling
       Notes, and (3) in respect of the Euro Notes, the Current Issuer Euro
       Currency Swap Provider, and amounts received by the Current Issuer Cash
       Manager from the Current Issuer Euro Currency Swap Provider will be
       applied to pay amounts due to the holders of the relevant classes of
       Euro Notes, each in accordance with the priority of payments set forth
       in Clause 4.3 (Distribution of Current Issuer Available Principal
       Receipts Following the Occurrence of an Asset Trigger Event) of
       Schedule 2.

5.5    Termination: If on or prior to the date of the earlier of (i) repayment
       in full of the



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       Current Issuer Notes or (ii) the service of a Current Issuer Note
       Enforcement Notice, any of the Current Issuer Swap Agreements is
       terminated, the Current Issuer Cash Manager (on behalf of the Current
       Issuer and the Note Trustee) shall purchase a replacement hedge, as
       applicable, in respect of the relevant Series of Current Issuer Notes
       in each case on terms acceptable to the Rating Agencies, the Current
       Issuer and the Note Trustee and with a swap provider that the Rating
       Agencies have previously confirmed in writing to the Current Issuer and
       the Note Trustee will not cause the then-current ratings of the Current
       Issuer Notes to be downgraded, withdrawn or qualified. The Current
       Issuer may apply any early termination payment received from, as
       appropriate, the relevant Current Issuer Swap Provider for such
       purpose.

5.6    Swap Collateral:

       (a)  In the event that pursuant to the terms of a Current Issuer Swap
            Agreement a Current Issuer Swap Provider pays or transfers Swap
            Collateral to the Current Issuer, the Current Issuer Cash Manager
            shall:

            (i)    create the Swap Collateral Ledger in the books of the
                   Current Issuer if not already created so as to record the
                   amount and type of such Swap Collateral and identify the
                   relevant Current Issuer Swap Agreement in respect of which
                   it has been posted;

            (ii)   upon receipt of such Swap Collateral, credit it to and
                   record the relevant details in the Swap Collateral Ledger;

            (iii)  to the extent that such Swap Collateral is in the form of
                   Cash, pay it into the relevant Swap Collateral Cash
                   Account; and

            (iv)   to the extent that such Swap Collateral is in the form of
                   securities, arrange for it to be credited to the relevant
                   Swap Collateral Securities Account.

       (b)  Any such Swap Collateral shall not form part of the Current Issuer
            Available Revenue Receipts and the Current Issuer Available
            Principal Receipts. If the terms of the relevant Current Issuer
            Swap Agreement permit such Swap Collateral to be applied in or
            towards satisfaction of the Current Issuer's Swap Provider's
            obligations under the relevant Current Issuer Swap Agreement, and
            in the event that such Swap Collateral is to be so applied, the
            Current Issuer Cash Manager shall:

            (i)    where the relevant Swap Collateral is in the form of Cash,
                   transfer the relevant amount of Cash from the relevant Swap
                   Collateral Cash Account to the relevant Current Issuer
                   Transaction Account; and/or

            (ii)   where the relevant Swap Collateral is in the form of
                   securities, realise the Swap Collateral and pay the amount
                   of the net proceeds into the relevant Current Issuer
                   Transaction Account,


            and, in each case, make the appropriate debits and credits to the
            Swap Collateral Ledger, apply such amount as if it had been paid
            to the Current



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            Issuer by the Current Issuer Swap Provider under the relevant
            Current Issuer Swap Agreement and make appropriate ledger entries.

       (c)  To the extent that pursuant to the terms of the relevant Current
            Issuer Swap Agreement Swap Collateral is to be transferred or paid
            to the Current Issuer Swap Provider, the Current Issuer Cash
            Manager shall:

            (i)    where the relevant Swap Collateral is in the form of Cash,
                   pay the relevant amount of Cash out of the relevant Swap
                   Collateral Cash Account to the Current Issuer Swap
                   Provider; and/or

            (ii)   where the relevant Swap Collateral is in the form of
                   securities, transfer and deliver the Swap Collateral to the
                   Current Issuer Swap Provider,

            and, in each case, debit the Swap Collateral Ledger as
            appropriate.

       (d)  Where:

            (i)    Swap Collateral is to be applied in satisfaction of the
                   Current Issuer Swap Provider's obligations under the
                   relevant Current Issuer Swap Agreement; and

            (ii)   such Swap Collateral or the proceeds of such Swap
                   Collateral are in a different currency to the currency (the
                   "Required Currency") in which such obligations of the
                   Current Issuer Swap Provider are payable,


            then, the Current Issuer Cash Manager shall arrange for such Swap
            Collateral to be converted (by such person as the Current Issuer
            Cash Manager may reasonably select) at the prevailing spot rate of
            exchange into the Required Currency.

       (e)  The terms of this Clause 5.6 shall prevail if and to the extent
            that they are inconsistent with the other paragraphs of this
            Clause 5.

5.7    Interest Payment Dates: [Not required]

5.8    Spot Rate Conversions: In the event that any payment is to be made from
       the Current Issuer Available Revenue Receipts or the Current Issuer
       Available Principal Receipts by the Current Issuer under the Current
       Issuer Priority of Payments and the Current Issuer Available Revenue
       Receipts or the Current Issuer Available Principal Receipts, as
       applicable, do not comprise a sufficient amount in the relevant
       currency in which such payment is to be made, the Current Issuer Cash
       Manager shall arrange for any remaining amounts comprised in the
       Current Issuer Available Revenue Receipts or the Current Issuer
       Available Principal Receipts, as applicable, to be converted (by such
       person as the Current Issuer Cash Manager may reasonably select) into
       such currency at the then prevailing spot rate of exchange as may be
       required in order to be applied in or towards such payment.



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6.     No Liability

       Save as otherwise provided in this Agreement, the Current Issuer Cash
       Manager shall have no liability for the obligations of either the Note
       Trustee or the Current Issuer under any of the Transaction Documents or
       otherwise and nothing herein shall constitute a guarantee, or similar
       obligation, by the Current Issuer Cash Manager of either the Note
       Trustee or the Current Issuer in respect of any of them.

7.     Costs and Expenses

7.1    Subject to and in accordance with the Current Issuer Pre-Enforcement
       Priority of Payments or, as the case may be, the Current Issuer
       Post-Enforcement Priority of Payments, the Current Issuer will on each
       Payment Date reimburse the Current Issuer Cash Manager for all
       out-of-pocket costs, expenses and charges (together with any amounts in
       respect of Irrecoverable VAT due thereon) properly incurred by the
       Current Issuer Cash Manager in the performance of the Current Issuer
       Cash Management Services, including any such costs, expenses or charges
       not reimbursed to the Current Issuer Cash Manager on any previous
       Payment Date and the Current Issuer Cash Manager shall supply the
       Current Issuer with an appropriate VAT invoice issued by the Current
       Issuer Cash Manager or, if the Current Issuer Cash Manager has treated
       the relevant cost, expense or charge as a disbursement for VAT
       purposes, by the person making the supply.

7.2    Unless and until otherwise agreed by the Current Issuer and the Note
       Trustee in writing (notified to the Current Issuer Cash Manager), the
       Current Issuer shall be solely responsible for reimbursing the Current
       Issuer Cash Manager for the out-of-pocket costs, expenses and charges
       (together with any amounts in respect of Irrecoverable VAT due thereon)
       referred to in Clause 7.1 (Costs and Expenses).

8.     Information

8.1    Use of information technology systems:

       (a)  The Current Issuer Cash Manager represents and warrants that at
            the date hereof (and in respect of the software which is to be
            used by the Current Issuer Cash Manager in providing the Current
            Issuer Cash Management Services) it has in place all necessary
            licences and/or consents from the respective licensor or licensors
            (if any) of such software.

       (b)  The Current Issuer Cash Manager undertakes that it shall for the
            duration of this Agreement, use reasonable endeavours to:

            (i)    ensure that the licences and/or consents referred to in
                   paragraph (a) are maintained in full force and effect; and

            (ii)   except insofar as it would breach any other of its legal
                   obligations, grant to any person to whom it may
                   sub-contract or delegate the performance of all or any of
                   its powers and obligations under this Agreement (and/or to
                   such person as the Current Issuer and the Note Trustee
                   elects as a substitute cash manager in accordance with the
                   terms of this Agreement) a licence to use any proprietary
                   software



                                      10
<PAGE>

                   together with any updates which may be made thereto from
                   time to time.

       (c)  The Current Issuer Cash Manager shall use reasonable endeavours to
            maintain in working order the information technology systems used
            by the Current Issuer Cash Manager in providing the Current Issuer
            Cash Management Services.

       (d)  The Current Issuer Cash Manager shall pass to any person to whom
            it may sub-contract or delegate the performance of all or any of
            its powers and obligations under this Agreement (and/or to such
            person as the Current Issuer and the Note Trustee elects as a
            substitute cash manager in accordance with the terms of this
            Agreement) the benefit of any warranties in relation to such
            software insofar as the same are capable of assignment.

8.2    Bank Account Statements: The Current Issuer Cash Manager shall take all
       reasonable steps to ensure that it receives a monthly bank statement in
       relation to each Current Issuer Transaction Account and Swap Collateral
       Cash Account and that it furnishes a copy of such statements to the
       Current Issuer, with a copy to the Note Trustee upon its request.

8.3    Access to Books and Records: Subject to all applicable laws, the
       Current Issuer Cash Manager shall permit the Current Issuer, the
       Auditors of the Current Issuer, the Note Trustee and/or any other
       person nominated by the Note Trustee (to whom the Current Issuer Cash
       Manager has no reasonable objection) at any time during normal office
       hours upon reasonable notice to have access, or procure that such
       person or persons are granted access, to all books of record and
       account relating to the Current Issuer Cash Management Services
       provided by the Current Issuer Cash Manager and related matters in
       accordance with this Agreement.

8.4    Statutory Obligations: The Current Issuer Cash Manager will use its
       reasonable endeavours, on behalf of the Current Issuer, to prepare or
       procure the preparation of and file all reports, annual returns,
       financial statements, statutory forms and other returns which the
       Current Issuer is required by law to prepare and file. Subject to
       approval thereof by the directors of the Current Issuer, the Current
       Issuer Cash Manager shall cause such accounts to be audited by the
       Auditors and shall procure so far as it is able so to do that the
       Auditors shall make a report thereon as required by law, and copies of
       all such documents shall be delivered to the Note Trustee, the Current
       Issuer and the Rating Agencies as soon as practicable after the end of
       each accounting reference period of the Current Issuer.

8.5    Information Covenants:

       (a)  The Current Issuer Cash Manager shall provide the Current Issuer,
            the Note Trustee, the Seller and the Rating Agencies quarterly
            with a report in, or substantially in, the form set out in
            Schedule 3 in respect of the Current Issuer. Such quarterly report
            shall be delivered to the Current Issuer, the Note Trustee (upon
            its request), the Seller and the Rating Agencies by the last
            Business Day of the month in which each Payment Date occurs.



                                      11
<PAGE>

       (b)  The Current Issuer Cash Manager shall provide, or procure the
            provision of, to the Current Issuer, the Note Trustee and the
            Rating Agencies copies of any annual returns or financial
            statements referred to in Clause 8.4 (Statutory Obligations) as
            soon as reasonably practicable after the preparation thereof.

       (c)  The Current Issuer Cash Manager shall notify the Rating Agencies
            and the Note Trustee in writing of the details of (i) any material
            amendment to the Transaction Documents to which the Current Issuer
            is a party and of which it is or becomes aware, (ii) the
            occurrence of a Current Issuer Note Event of Default, or a Current
            Issuer Intercompany Loan Event of Default or a Current Issuer Cash
            Manager Termination Event (as defined in Clause 12.1 (Current
            Issuer Cash Manager Termination Events)) and (iii) any other
            information relating to the Current Issuer Cash Manager as the
            Rating Agencies and the Note Trustee may reasonably request in
            connection with its obligations under this Agreement, PROVIDED
            THAT the Note Trustee shall not make such a request more than once
            every three months unless, in the belief of the Note Trustee, a
            Current Issuer Intercompany Loan Event of Default, a Current
            Issuer Note Event of Default or a Current Issuer Cash Manager
            Termination Event shall have occurred and is continuing or may
            reasonably be expected to occur, and PROVIDED FURTHER THAT any
            such request by the Note Trustee does not adversely interfere with
            the Current Issuer Cash Manager's day-to-day provision of the
            Current Issuer Cash Management Services under the other terms of
            this Agreement.

       (d)  After becoming aware of any event described in paragraph (c)(i) or
            (ii) above, the Current Issuer Cash Manager shall give details to
            the Current Issuer and the Note Trustee of any pending legal
            action and any judgments given in respect of the Current Issuer
            Cash Manager if it could have a potential material adverse effect
            on the ability of the Current Issuer Cash Manager to perform its
            obligations hereunder.

       (e)  The Current Issuer Cash Manager shall, at the request of the Note
            Trustee, furnish the Note Trustee and the Rating Agencies with
            such other information relating to its business and financial
            condition as the Note Trustee may request in connection with this
            Agreement, PROVIDED THAT the Note Trustee shall not make such a
            request more than once every three months unless, in the belief of
            the Note Trustee, a Current Issuer Intercompany Loan Event of
            Default, a Current Issuer Note Event of Default or a Current
            Issuer Cash Manager Termination Event (as defined in Clause 12.1
            (Current Issuer Cash Manager Termination Events)) shall have
            occurred and is continuing or may reasonably be expected to occur,
            and PROVIDED FURTHER THAT any such request of the Note Trustee
            does not adversely interfere with the Current Issuer Cash
            Manager's day-to-day provision of the Current Issuer Cash
            Management Services under the other terms of this Agreement.

9.     Remuneration

9.1    Fee payable:

       (a)  Subject to paragraph (b) below, the Current Issuer shall pay to
            the Current Issuer Cash Manager for the provision of the Current
            Issuer Cash



                                      12
<PAGE>

            Management Services hereunder a cash management fee which shall be
            agreed in writing between the Current Issuer, the Note Trustee and
            the Current Issuer Cash Manager from time to time.

       (b)  Unless and until otherwise agreed by the Current Issuer and the
            Note Trustee in writing (notified to the Current Issuer Cash
            Manager), the Current Issuer shall be solely responsible for
            paying the cash management fee to the Current Issuer Cash Manager
            which is referred to in paragraph (a) above.

9.2    Payment of fee: The cash management fee referred to in Clause 9.1 (Fee
       Payable) shall only be payable to the Current Issuer Cash Manager on
       each Payment Date in the manner contemplated by, in accordance with and
       subject to the provisions of the Current Issuer Pre-Enforcement Revenue
       Priority of Payments or, as the case may be, the Current Issuer
       Post-Enforcement Priority of Payments.

10.    Covenants, Representations and Warranties of Current Issuer Cash
       Manager

10.1   Covenants: The Current Issuer Cash Manager hereby covenants with and
       undertakes to each of the Current Issuer and the Note Trustee that
       without prejudice to any of its specific obligations hereunder:

       (a)  it will exercise all due skill, care and diligence to the
            performance of its obligations and the exercise of its discretions
            hereunder;

       (b)  it will comply with any proper directions, orders and instructions
            which the Current Issuer or the Note Trustee may from time to time
            give to it in accordance with the provisions of this Agreement
            and, in the event of any conflict, those of the Note Trustee shall
            prevail;

       (c)  it will obtain and keep in force all licences, approvals,
            authorisations and consents which are necessary in connection with
            the performance of the Current Issuer Cash Management Services and
            prepare and submit all necessary applications and requests for any
            further approval, authorisation, consent or licence required in
            connection with the performance of the Current Issuer Cash
            Management Services;

       (d)  it will not knowingly fail to comply with any legal requirements
            in the performance of the Current Issuer Cash Management Services;

       (e)  it will make all payments required to be made by it pursuant to
            this Agreement on the due date for payment thereof for value in
            the specified currency on such day without set-off (including,
            without limitation, in respect of any fees owed to it) or
            counterclaim; and

       (f)  it will not without the prior written consent of the Note Trustee
            amend or terminate any of the Current Issuer Transaction Documents
            save in accordance with their terms.

10.2   Duration of covenants: The covenants of the Current Issuer Cash Manager
       in Clause 10.1 (Covenants) shall remain in force until this Agreement
       is terminated but without prejudice to any right or remedy of the
       Current Issuer and/or the Note Trustee arising



                                      13
<PAGE>

       from breach of any such covenant prior to the date of termination of
       this Agreement.

10.3   Representations and Warranties: The Current Issuer Cash Manager hereby
       makes the representations and warranties to each of the Current Issuer
       and the Note Trustee that are specified on Schedule 5 hereto.

11.    Current Issuer Cash Management Services Non-Exclusive

       Nothing in this Agreement shall prevent the Current Issuer Cash Manager
       from rendering or performing services similar to those provided for in
       this Agreement to or for itself or other persons, firms or companies or
       from carrying on business similar to or in competition with the
       business of the Current Issuer or the Note Trustee.

12.    Termination

12.1   Current Issuer Cash Manager Termination Events: If any of the following
       events ("Current Issuer Cash Manager Termination Events") shall occur:

       (a)  default is made by the Current Issuer Cash Manager in the payment
            on the due date of any payment due and payable by it under this
            Agreement and such default continues unremedied for a period of
            five (5) London Business Days after the earlier of the Current
            Issuer Cash Manager becoming aware of such default and receipt by
            the Current Issuer Cash Manager of written notice from the Current
            Issuer or the Note Trustee, as the case may be, requiring the same
            to be remedied; or

       (b)  default is made by the Current Issuer Cash Manager in the
            performance or observance of any of its other covenants and
            obligations under this Agreement, which in the opinion of the Note
            Trustee is materially prejudicial to the interests of the holders
            of the Current Issuer Notes and such default continues unremedied
            for a period of twenty (20) days after the earlier of the Current
            Issuer Cash Manager becoming aware of such default and receipt by
            the Current Issuer Cash Manager of written notice from the Note
            Trustee requiring the same to be remedied; or

       (c)  the Current Issuer Cash Manager suffers an Insolvency Event,

       then the Current Issuer and/or Note Trustee may at once or at any time
       thereafter while such default continues by notice in writing to the
       Current Issuer Cash Manager with a copy to the Current Issuer Account
       Bank terminate its appointment as Current Issuer Cash Manager under
       this Agreement with effect from a date (not earlier than the date of
       the notice) specified in the notice.

       Upon termination of the appointment of the Current Issuer Cash Manager,
       the Note Trustee agrees to use its reasonable endeavours to appoint a
       substitute Current Issuer Cash Manager. Any substitute Current Issuer
       Cash Manager must agree to enter into an agreement substantially on the
       same terms as the relevant provisions of this Agreement or on such
       terms as are satisfactory to the Current Issuer and the Note Trustee.



                                      14
<PAGE>

       Any termination of the appointment of the Current Issuer Cash Manager
       and the appointment of a substitute Current Issuer Cash Manager under
       this Clause 12.1 is conditional upon the Rating Agencies having
       previously confirmed in writing to the Current Issuer and the Note
       Trustee that the then-current ratings of the Current Issuer Notes will
       not be downgraded, withdrawn or qualified.

       The Note Trustee shall have no liability to any person in the event
       that, having used reasonable endeavours, it is unable to appoint a
       substitute Current Issuer Cash Manager. In any event, the Note Trustee
       shall only be required to use its reasonable endeavours to appoint such
       substitute Current Issuer Cash Manager. Notwithstanding any other
       provision of the Transaction Documents, the Note Trustee shall not
       itself be required to perform any duties of the Current Issuer Cash
       Manager.

       The Note Trustee shall not be obliged to monitor or supervise the
       performance by any substitute Current Issuer Cash Manager of its duties
       hereunder or in relation to the other Transaction Documents nor shall
       the Note Trustee be responsible or liable for any act or omission of
       any substitute Current Issuer Cash Manager or for any loss caused
       thereby.

12.2   Resignation of Current Issuer Cash Manager: The Current Issuer Cash
       Manager may resign from its appointment under this Agreement only upon
       giving not less than twelve (12) months' notice to each of the Current
       Issuer and the Note Trustee, PROVIDED THAT:

       (a)  the Current Issuer and the Note Trustee each consent in writing to
            such resignation;

       (b)  a substitute cash manager shall be appointed, such appointment to
            be effective not later than the effective date of such
            resignation;

       (c)  such substitute cash manager enters into an agreement
            substantially on the same terms as the relevant provisions of this
            Agreement or on such terms as are satisfactory to the Current
            Issuer and the Note Trustee, and the Current Issuer Cash Manager
            shall not be released from its obligations under the relevant
            provisions of this Agreement until such substitute cash manager
            has entered into such new agreement and the rights of the Current
            Issuer under such agreement are charged in favour of the Note
            Trustee on terms satisfactory to the Note Trustee; and

       (d)  the Rating Agencies have confirmed to the Current Issuer and the
            Note Trustee that the then-current ratings of the Current Issuer
            Notes are not adversely affected as a result thereof.

12.3   Effect of Termination or Resignation:

       (a)  On and after termination or resignation of the appointment of the
            Current Issuer Cash Manager under this Agreement pursuant to this
            Clause 12, all authority and power of the Current Issuer Cash
            Manager under this Agreement shall be terminated and be of no
            further effect and the Current Issuer Cash Manager shall not
            thereafter hold itself out in any way as the agent of the Current
            Issuer or the Note Trustee pursuant to this Agreement.



                                      15
<PAGE>

       (b)  Upon termination or resignation of the appointment of the Current
            Issuer Cash Manager under this Agreement pursuant to this Clause
            12, the Current Issuer Cash Manager shall:

            (i)    forthwith deliver (and in the meantime hold on trust for,
                   and to the order of, the Current Issuer or the Note
                   Trustee, as the case may be) to the Current Issuer or the
                   Note Trustee, as the case may be or as it shall direct, all
                   books of account, papers, records, registers,
                   correspondence and documents in its possession or under its
                   control relating to the affairs of or belongings of the
                   Current Issuer or the Note Trustee, as the case may be, (if
                   practicable, on the date of receipt) any monies then held
                   by the Current Issuer Cash Manager on behalf of the Current
                   Issuer, the Note Trustee and any other assets of the
                   Current Issuer and the Note Trustee;

            (ii)   take such further action as the Current Issuer or the Note
                   Trustee, as the case may be, may reasonably direct PROVIDED
                   THAT the Note Trustee shall not be required to take or
                   direct to be taken such further action unless it has been
                   indemnified to its satisfaction (and in the event of a
                   conflict between the directions of Current Issuer and the
                   Note Trustee, the directions of the Note Trustee shall
                   prevail);

            (iii)  provide all relevant information contained on computer
                   records in the form of magnetic tape, together with details
                   of the layout of the files encoded on such magnetic tapes;
                   and

            (iv)   co-operate and consult with and assist the Current Issuer
                   or the Note Trustee or its nominee, as the case may be,
                   (which shall, for the avoidance of doubt, include any
                   Receiver appointed by it) for the purposes of explaining
                   the file layouts and the format of the magnetic tapes
                   generally containing such computer records on the computer
                   system of the Current Issuer or the Note Trustee or such
                   nominee, as the case may be.

12.4   Notice of event of default: The Current Issuer Cash Manager shall
       deliver to the Current Issuer and the Note Trustee as soon as
       reasonably practicable (but in any event within three London Business
       Days of becoming aware thereof) a notice of any Current Issuer Cash
       Manager Termination Event, any Current Issuer Note Event of Default or
       any Current Issuer Intercompany Loan Event of Default, or any event
       which with the giving of notice or expiry of any grace period or
       certification, as specified in such Current Issuer Cash Manager
       Termination Event or Current Issuer Note Event of Default or Current
       Issuer Intercompany Loan Event of Default, would constitute the same.

12.5   General provisions relating to termination:

       (a)  Termination of this Agreement or the appointment of the Current
            Issuer Cash Manager under this Agreement shall be without
            prejudice to the liabilities of the Current Issuer to the Current
            Issuer Cash Manager and vice versa incurred before the date of
            such termination. The Current Issuer Cash Manager shall



                                      16
<PAGE>

            have no right of set-off or any lien in respect of such amounts
            against amounts held by it on behalf of the Current Issuer or the
            Note Trustee.

       (b)  This Agreement shall terminate at such time as the Current Issuer
            Secured Obligations have been fully discharged.

       (c)  On termination of the appointment of the Current Issuer Cash
            Manager under the provisions of this Clause 12, the Current Issuer
            Cash Manager shall be entitled to receive all fees and other
            monies accrued up to (but excluding) the date of termination but
            shall not be entitled to any other or further compensation. The
            Current Issuer shall pay such moneys so receivable by the Current
            Issuer Cash Manager in accordance with the Current Issuer
            Pre-Enforcement Revenue Priority of Payments or, as the case may
            be, the Current Issuer Post-Enforcement Priority of Payments, on
            the dates on which they would otherwise have fallen due hereunder.
            For the avoidance of doubt, such termination shall not affect the
            Current Issuer Cash Manager's rights to receive payment of all
            amounts (if any) due to it from the Current Issuer other than
            under this Agreement.

       (d)  Any provision of this Agreement, which is stated to continue after
            termination of the Agreement, shall remain in full force and
            effect notwithstanding termination.

13.    Further Assurances

13.1   Co-operation, etc: The parties hereto agree that they will co-operate
       fully to do all such further acts and things and execute any further
       documents as may be necessary or desirable to give full effect to the
       arrangements contemplated by this Agreement and the other Transaction
       Documents.

13.2   Powers of attorney: Without prejudice to the generality of Clause 13.1
       (Co-operation, etc), the Current Issuer shall upon request by the
       Current Issuer Cash Manager forthwith give to the Current Issuer Cash
       Manager such further powers of attorney or other written
       authorisations, mandates or instruments as are necessary to enable the
       Current Issuer Cash Manager to perform the Current Issuer Cash
       Management Services.

14.    Miscellaneous

14.1   No set-off: The Current Issuer Cash Manager agrees that it will not:

       (a)  set off or purport to set off any amount which either the Current
            Issuer is or will become obliged to pay to it under this Agreement
            against any amount from time to time standing to the credit of or
            to be credited to the Current Issuer Transaction Accounts or the
            Swap Collateral Accounts or any replacement or additional bank
            account of the Current Issuer and established from time to time;
            or

       (b)  make or exercise any claims or demands, any rights of counterclaim
            or any other equities against or withhold payment of any and all
            sums of money which may at any time and from time to time standing
            to the credit of the



                                      17
<PAGE>

            Current Issuer Transaction Accounts or the Swap Collateral
            Accounts or any replacement or additional bank account of the
            Current Issuer and established from time to time.

14.2   No recourse:

       (a)  In relation to all sums due and payable by the Current Issuer to
            the Current Issuer Cash Manager, the Current Issuer Cash Manager
            agrees that it shall have recourse only to sums paid to or
            received by (or on behalf of) the Current Issuer pursuant to the
            provisions of the Current Issuer Transaction Documents.

       (b)  For the avoidance of doubt, the Note Trustee shall not be liable
            to pay any amounts due under Clauses 7 (Costs and Expenses) and 9
            (Remuneration), but without prejudice to the obligations of the
            Current Issuer, or any receiver appointed pursuant to the Current
            Issuer Deed of Charge in respect of such amounts.

       (c)  Notwithstanding any other provisions of this Agreement, all
            obligations to, and rights of, the Note Trustee under or in
            connection with this Agreement (other than its obligations under
            Clause 13 (Further Assurances)) shall automatically terminate upon
            the discharge in full of all Current Issuer Secured Obligations,
            PROVIDED THAT this shall be without prejudice to any claims in
            respect of such obligations and rights arising on or prior to such
            date.

15.    Confidentiality

       During the continuance of this Agreement or after its termination, each
       of the Current Issuer, the Current Issuer Cash Manager and the Note
       Trustee shall use its best endeavours not to disclose to any person,
       firm or company whatsoever any information relating to the business,
       finances or other matters of a confidential nature of any other party
       hereto of which it may exclusively by virtue of being party to the
       Transaction Documents have become possessed and shall use all
       reasonable endeavours to prevent any such disclosure as aforesaid,
       PROVIDED HOWEVER that the provisions of this Clause 15 shall not apply:

       (a)  to any information already known to the recipient otherwise than
            as a result of entering into any of the Transaction Documents;

       (b)  to any information subsequently received by the recipient which it
            would otherwise be free to disclose;

       (c)  to any information which is or becomes public knowledge otherwise
            than as a result of the conduct of the recipient;

       (d)  to any extent that the recipient is required to disclose the same
            pursuant to any law or order of any court or pursuant to any
            direction, request or requirement (whether or not having the force
            of law) of any central bank or any governmental or other authority
            (including, without limitation, any official bank examiners or
            regulators);



                                      18
<PAGE>

       (e)  to the extent that the recipient needs to disclose the same for
            determining the existence of, or declaring, a Current Issuer Note
            Event of Default, or a Current Issuer Cash Manager Termination
            Event, the protection or enforcement of any of its rights under
            any of the Current Issuer Transaction Documents or in connection
            herewith or therewith or for the purpose of discharging, in such
            manner as it thinks fit, its duties under or in connection with
            such agreements in each case to such persons as require to be
            informed of such information for such purposes; or

       (f)  in relation to any information disclosed to the professional
            advisers of the recipient or (in connection with a prospective
            rating of any debt to be issued by the Current Issuer or any New
            Issuer) to any credit rating agency or any prospective new cash
            manager or prospective new Note Trustee.

16.    No Partnership

       It is hereby acknowledged and agreed by the parties that nothing in
       this Agreement shall be construed as giving rise to any partnership
       between any of the parties.

17.    Assignment

17.1   Assignment by the Current Issuer: The Current Issuer may not assign or
       transfer any of its rights and obligations under this Agreement without
       the prior written consent of each of the Note Trustee and the Current
       Issuer Cash Manager, except that the Current Issuer may assign its
       respective rights hereunder without such consent pursuant to the
       Current Issuer Deed of Charge.

17.2   No assignment by Current Issuer Cash Manager: The Current Issuer Cash
       Manager may not assign or transfer any of its rights and obligations
       under this Agreement without the prior written consent of the Current
       Issuer and the Note Trustee.

18.    The Note Trustee

18.1   Change in Note Trustee: If there is any change in the identity of the
       note trustee in accordance with the Issuer Deed of Charge, the Current
       Issuer and the Current Issuer Cash Manager shall execute such documents
       and take such action as the successor note trustee and the outgoing
       Note Trustee may require for the purpose of vesting in the successor
       note trustee the rights and obligations of the outgoing Note Trustee
       under this Agreement and releasing the outgoing Note Trustee from its
       future obligations under this Agreement.

18.2   No Obligations: It is hereby acknowledged and agreed that by its
       execution of this Agreement the Note Trustee shall not assume or have
       any of the obligations or liabilities of the Current Issuer or the
       Current Issuer Cash Manager under this Agreement. Furthermore, any
       liberty or power which may be exercised or any determination which may
       be made hereunder by the Note Trustee may be exercised or made in the
       Note Trustee's absolute and unfettered discretion without any
       obligation to give reasons therefor, but in any event must be exercised
       or made in accordance with the provisions of the Current Issuer Deed of
       Charge.



                                      19
<PAGE>

19.    Non Petition Covenant; Limited Recourse

19.1   Note Trustee to Enforce: The Current Issuer Cash Manager hereby
       undertakes to each of the other parties hereto that only the Security
       Trustee, at the direction of the Note Trustee, may enforce the security
       created in favour of the Note Trustee by the Current Issuer Deed of
       Charge in accordance with the provisions thereof.

19.2   Limited Recourse: The Current Issuer Cash Manager hereby undertakes to
       each of the other parties hereto that, notwithstanding any other
       provision of this Agreement or any other Transaction Document, no sum
       due or owing to the Current Issuer Cash Manager from or by the Current
       Issuer under this Agreement shall be payable by the Current Issuer
       except to the extent that the Current Issuer has sufficient funds
       available or (following enforcement of the Current Issuer Security) the
       Security Trustee has realised sufficient funds from the Current Issuer
       Security to pay such sum subject to and in accordance with the relevant
       Current Issuer Priority of Payments, and provided that all liabilities
       of the Current Issuer required to be paid in priority thereto or pari
       passu therewith pursuant to such Current Issuer Priority of Payments
       have been paid, discharged and/or otherwise provided for in full.

19.3   Non Petition: The Current Issuer Cash Manager hereby undertakes to each
       of the other parties hereto that it shall not take any steps for the
       purpose of recovering any amount payable under this Agreement
       (including, without limitation, by exercising any rights of set-off) or
       enforcing any rights arising out of this Agreement against the Current
       Issuer and it shall not take any steps or legal proceedings for the
       winding-up, dissolution or reorganisation of, or the institution of
       insolvency proceedings against, the Current Issuer or for the
       appointment of a receiver, administrator, liquidator or similar officer
       of the Current Issuer in respect of any or all of its revenues except
       to the extent expressly permitted under the Current Issuer Deed of
       Charge.

19.4   Following Enforcement: The Current Issuer Cash Manager hereby
       undertakes to each of the other parties hereto that, following any
       enforcement of the Current Issuer Security, it will hold on trust for,
       and will pay to, the Note Trustee or the Receiver, as the case may be,
       all monies received or recovered by it (whether by way of set-off or
       otherwise) otherwise than in accordance with the Current Issuer
       Post-Enforcement Priority of Payments in order that such monies may be
       applied by the Note Trustee or the Receiver in accordance with the
       Current Issuer Post-Enforcement Priority of Payments.

19.5   Corporate Obligations: To the extent permitted by law, no recourse
       under any obligation, covenant, or agreement of any person contained in
       this Agreement shall be had against any shareholder, officer or
       director of such person as such, by the enforcement of any assessment
       or by any legal proceeding, by virtue of any statute or otherwise; it
       being expressly agreed and understood that this Agreement is a
       corporate obligation of each person expressed to be a party hereto and
       no personal liability shall attach to or be incurred by the
       shareholders, officers, agents or directors of such person as such, or
       any of them, under or by reason of any of the obligations, covenants or
       agreements of such person contained in this Agreement, or implied
       therefrom, and that any and all personal liability for breaches by such
       person of any of such obligations, covenants or agreements, either
       under any applicable law or by statute or constitution, of every such
       shareholder, officer, agent or director is hereby expressly waived by
       each person expressed to be a party hereto as a condition of and



                                      20
<PAGE>

       consideration for the execution of this Agreement.

19.6   Current Issuer Deed of Charge: The provisions of Clause 6 of the
       Current Issuer Deed of Charge shall prevail in the event that and to
       the extent that they conflict with the provisions of this Clause 19.

20.    Amendments and Waiver

20.1   Entire Agreement: This Agreement sets out the entire agreement and
       understanding between the parties with respect to the subject matter of
       this Agreement superseding all prior oral or written understandings
       other than the other Current Issuer Transaction Documents.

20.2   Amendments and Waiver: No amendment or waiver of any provision of this
       Agreement nor consent to any departure by any of the parties therefrom
       shall in any event be effective unless the same shall be in writing and
       signed by each of the parties hereto. In the case of a waiver or
       consent, such waiver or consent shall be effective only in the specific
       instance and as against the party or parties giving it for the specific
       purpose for which it is given.

20.3   Rights Cumulative: The respective rights of each of the parties to this
       Agreement are cumulative and may be exercised as often as they consider
       appropriate. No failure on the part of any party to exercise, and no
       delay in exercising, any right hereunder shall operate as a waiver
       thereof, nor shall any single or partial exercise of any such right
       preclude any other or further exercise thereof or the exercise of any
       other right. The remedies in this Agreement are cumulative and not
       exclusive of any remedies provided by law.

20.4   Ratings: No variation or waiver of this Agreement shall be made if the
       same would adversely affect the then-current ratings of any of the
       Notes.

21.    Notices

       Any notices or other communication or document to be given or delivered
       pursuant to this Agreement to any of the parties hereto shall be
       sufficiently served if sent by prepaid first class post, by hand or by
       facsimile transmission and shall be deemed to be given (in the case of
       facsimile transmission) when despatched or (where delivered by hand) on
       the day of delivery if delivered before 17.00 hours (London time) on a
       London Business Day or on the next London Business Day if delivered
       thereafter or (in the case of first class post) when it would be
       received in the ordinary course of the post and shall be sent:

       (a)  in the case of the Current Issuer Cash Manager, to Northern Rock
            PLC, Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
            (facsimile number: 0191 213 2203) for the attention of the Group
            Secretary;

       (b)  in the case of the Current Issuer, to Granite Mortgages 04-2 plc
            c/o Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile
            number 020 7606 0643) for the attention of The Company Secretary
            with a copy to Northern Rock plc, Northern Rock House, Gosforth,
            Newcastle upon Tyne NE3 4PL (facsimile number 0191 213 2203) for
            the attention of the Group Secretary;



                                      21
<PAGE>

       (c)  in the case of the Note Trustee, to The Bank of New York (London
            Branch), at 48th Floor, One Canada Square, London E14 5AL
            (facsimile number 020 7964 6399) for the attention of Corporate
            Trust (Global Structured Finance);

       (d)  in the case of Fitch, to Fitch Ratings Ltd., at Eldon House, 2
            Eldon Street, London EC2M 7UA (facsimile number 0207 417 6262) for
            the attention of European Structured Finance Surveillance;

       (e)  in the case of Moody's, to Moody's Investors Services, Inc., at
            1st Floor, 2 Minster Court, Mincing Lane, London EC3R 7XB
            (facsimile number 0207 772 5400) for the attention of the Head of
            Monitoring Group, Structured Finance;

       (f)  in the case of S&P, to Standard & Poor's Ratings Services, a
            division of The McGraw-Hill Companies, Inc., at 20 Cannon Square,
            Canary Wharf, London E14 5LH (facsimile number 0207 176 3598) for
            the attention of Andre Vollmann;

       or to such other address or facsimile number or for the attention of
       such other person or entity as may from time to time be notified by any
       party or by any Rating Agency to the others by written notice in
       accordance with the provisions of this Clause 21. All notices served
       under this Agreement shall be simultaneously copied to the Note Trustee
       by the person serving the same.

22.    Third Party Rights

       A person who is not a party to this Agreement may not enforce any of
       its terms under the Contracts (Rights of Third Parties) Act 1999, but
       this shall not affect any right or remedy of a third party which exists
       or is available apart from that Act.

23.    Execution in Counterparts; Severability

23.1   Counterparts: This Agreement may be executed in any number of
       counterparts (manually or by facsimile) and by different parties hereto
       in separate counterparts, each of which when so executed shall be
       deemed to be an original and all of which when taken together shall
       constitute one and the same instrument.

23.2   Severability: Where any provision in or obligation under this Agreement
       shall be invalid, illegal or unenforceable in any jurisdiction, the
       validity, legality and enforceability of the remaining provisions or
       obligations under this Agreement, or of such provision or obligation in
       any other jurisdiction, shall not be affected or impaired thereby.

24.    Governing Law and Jurisdiction; Appropriate Forum

24.1   Governing Law: This Agreement is governed by, and shall be construed in
       accordance with, English law.

24.2   Jurisdiction: Each of the parties hereto irrevocably agrees that the
       courts of England shall have jurisdiction to hear and determine any
       suit, action or proceeding, and to settle any disputes, which may arise
       out of or in connection with this Agreement and, for such purposes,
       irrevocably submits to the jurisdiction of such courts.



                                      22
<PAGE>

24.3   Appropriate Forum: Each of the parties hereto irrevocably waives any
       objection which it might now or hereafter have to the courts of England
       being nominated as the forum to hear and determine any Proceedings and
       to settle any disputes, and agrees not to claim that any such court is
       not a convenient or appropriate forum.

IN WITNESS WHEREOF the parties have caused this Agreement to be executed the
day and year first before written.



                                      23
<PAGE>

                                  SCHEDULE 1

                  The Current Issuer Cash Management Services

The Current Issuer Cash Manager shall:

(a)    make the determinations as set forth in Schedule 2;

(b)    invest sums, if any, standing to the credit of the Current Issuer
       Transaction Accounts in short-term Authorised Investments as determined
       by the Current Issuer and, if applicable, the Note Trustee;

(c)    apply the Current Issuer Available Revenue Receipts and Current Issuer
       Available Principal Receipts in accordance with the relevant order of
       priority of payments for the Current Issuer set out in Schedule 2;

(d)    maintain the Current Issuer Principal Deficiency Ledger, and record (1)
       principal deficiencies arising from Losses on the Mortgage Loans which
       have been allocated by Funding to the Current Issuer Intercompany Loan,
       (2) the use of Current Issuer Principal Receipts to meet any deficiency
       in Current Issuer Revenue Receipts and (3) the use of Funding Available
       Principal Receipts to fund or replenish, as the case may be, the
       Current Issuer Liquidity Reserve Fund, if any, and (4) the application
       of Current Issuer Available Revenue Receipts to reduce the balances on
       the Current Issuer Principal Deficiency Ledger;

(e)    each time it records a debit on a Current Issuer Principal Deficiency
       Sub Ledger, also record on such Current Issuer Principal Deficiency Sub
       Ledger whether such debit was caused by (1) Losses on the Mortgage
       Loans which have been allocated by Funding to the Current Issuer
       Intercompany Loan, (2) the application of Current Issuer Principal
       Receipts to meet any deficiency in Current Issuer Revenue Receipts, and
       (3) the application of Funding Available Principal Receipts to fund or
       replenish, as the case may be, the Current Issuer Liquidity Reserve
       Fund, if any;

(f)    provide the Current Issuer, Funding, the Note Trustee (upon its
       request) and the Rating Agencies with quarterly reports in relation to
       the Current Issuer as set out in Schedule 3;

(g)    operate the Current Issuer Bank Accounts and ensure that payments are
       made into and from such account in accordance with this Agreement, the
       Current Issuer Deed of Charge, the Current Issuer Bank Account
       Agreement and any other relevant Current Issuer Transaction Document,
       PROVIDED HOWEVER THAT nothing herein shall require the Current Issuer
       Cash Manager to make funds available to the Current Issuer to enable
       such payments to be made other than as expressly required by the
       provisions of this Agreement;

(h)    keep records for all taxation purposes (including, without limitation
       VAT);

(i)    subject to any applicable law, assist the auditors of the Current
       Issuer and provide such information to them as they may reasonably
       request for the purpose of carrying out their duties as auditors;



                                      24
<PAGE>

(j)    make all returns and filings, give all notices and make all
       registrations and other notifications required in the day-to-day
       operation of the business of the Current Issuer or required to be given
       by the Current Issuer pursuant to the Current Issuer Transaction
       Documents;

(k)    arrange for all payments due to be made by the Current Issuer under any
       of the Current Issuer Transaction Documents, PROVIDED THAT such moneys
       are at the relevant time available to the Current Issuer and PROVIDED
       FURTHER that nothing herein shall constitute a guarantee by the Current
       Issuer Cash Manager of all or any of the obligations of the Current
       Issuer under any of the Current Issuer Transaction Documents;

(l)    without prejudice to the role of and in conjunction with the Current
       Issuer Corporate Services Provider under the Current Issuer Corporate
       Services Agreement, keep general books of account and records of the
       Current Issuer; provide accounting services, including reviewing
       receipts and payments, supervising and assisting in the preparation of
       interim statements and final accounts and supervising and assisting in
       the preparation of tax returns;

(m)    without prejudice to the role of and in conjunction with the Current
       Issuer Corporate Services Provider under the Current Issuer Corporate
       Services Agreement, provide or procure the provision of company
       secretarial and administration services to the Current Issuer including
       the keeping of all registers and the making of all returns and filings
       required by applicable law or by UK regulatory authorities, co-operate
       in the convening of board and general meetings and provide registered
       office facilities;

(n)    itself on behalf of the Current Issuer, PROVIDED THAT such monies are
       at the relevant time available to the Current Issuer, pay all the
       out-of-pocket expenses of the Current Issuer, incurred by the Current
       Issuer Cash Manager on behalf of the Current Issuer in the performance
       of the Current Issuer Cash Manager's duties hereunder including without
       limitation:

       (i)    all Taxes which may be due or payable by the Current Issuer;

       (ii)   all necessary filing and other fees in compliance with
              regulatory requirements;

       (iii)  all legal and audit fees and other professional advisory fees;
              and

       (iv)   all communication expenses including postage, courier and
              telephone charges,

(o)    the Current Issuer Cash Manager may invest monies standing from time to
       time to the credit of the Current Issuer Transaction Accounts subject
       to the following provisions:

       (i)    any such Authorised Investment shall be made in the joint names
              of the Current Issuer and the Note Trustee;

       (ii)   any costs properly and reasonably incurred in making and
              changing Authorised Investments will be reimbursed to the
              Current Issuer Cash Manager and the Note Trustee by the Current
              Issuer;

       (iii)  all income or proceeds following the disposal or maturity of
              Authorised Investments shall be credited to the Current Issuer
              Transaction Accounts from



                                      25
<PAGE>

              which moneys were withdrawn to make the relevant Authorised
              Investment; and

       (iv)   following the enforcement of the Current Issuer Security no such
              investment may be made without the prior written consent of the
              Note Trustee.

       The Note Trustee and the Current Issuer Cash Manager shall not be
       responsible (save where any loss results from the Note Trustee's or the
       Current Issuer Cash Manager's own fraud, wilful default or gross
       negligence or that of its officers or employees) for any loss
       occasioned by reason of any such Authorised Investments whether by
       depreciation in value or otherwise provided that such Authorised
       Investments were made in accordance with the above provisions;

(p)    (i)    if necessary, perform all currency conversions free of charge,
              cost or expense at the relevant exchange rate; and

       (ii)   if necessary, perform all interest rate conversions free of
              charge, cost or expense at the relevant interest swap rate.

       for the purposes of any calculations referred to in sub-paragraphs (i)
       and (ii) above, all percentages resulting from such calculations will
       be rounded, if necessary, to the nearest one hundred-thousandth of a
       percentage point (e.g. 9.876541% (or 0.09876541) being rounded down to
       9.87654% (or 0.0987654)) and (ii) any currency amounts used in or
       resulting from such calculations will be rounded in accordance with the
       relevant market practice;

(q)    arrange payment of all fees to the London Stock Exchange plc or, as
       applicable, the UK Listing Authority; and

(r)    provide services in relation to Swap Collateral (including, without
       limitation, in connection with the transfer, receipt, administration
       and/or holding of Swap Collateral, the making of calculations,
       determinations, communications or valuations, the opening and
       maintenance of the Swap Collateral Accounts and the Swap Collateral
       Ledger; and the entering into of Swap Collateral Ancillary Documents).



                                      26
<PAGE>

                                  SCHEDULE 2

                  Cash Management and Maintenance of Ledgers

1.     Determination

       (a)  On or before each Current Issuer Note Determination Date
            immediately preceding a Payment Date, the Current Issuer Cash
            Manager shall determine each of the following in accordance with
            this paragraph 1:

            (i)    the amount of any Current Issuer Available Revenue Receipts
                   to be applied on the following Payment Date in accordance
                   with the Current Issuer Pre-Enforcement Revenue Priority of
                   Payments set forth in paragraph 3 of this Schedule 2;

            (ii)   the amount of any Current Issuer Available Principal
                   Receipts to be applied on the following Payment Date in
                   accordance with the Current Issuer Pre-Enforcement
                   Principal Priority of Payments set forth in paragraph 4 of
                   this Schedule 2;

            (iii)  whether there will be an excess or a deficit of the Current
                   Issuer Available Revenue Receipts to pay items (A) through
                   (P) of the Current Issuer Pre-Enforcement Revenue Priority
                   of Payments (after taking account of any Group 1 Shared
                   Issuer Revenue Receipts or Group 2 Shared Issuer Revenue
                   Receipts available therefor) as set forth in paragraph 3 of
                   this Schedule 2;

            (iv)   the various amounts, balances and rates to be calculated in
                   accordance with the Current Issuer Swap Agreements, and
                   shall promptly notify the Current Issuer, the Note Trustee
                   and each Calculation Agent (as defined in each Current
                   Issuer Swap Agreement) of such amounts, balances and rates;
                   and

            (v)    the Principal Amount Outstanding of the Current Issuer
                   Notes, the Pool Factor, and the Note Principal Payment of
                   the Current Issuer Notes in accordance with the Conditions.

       (b)  If the Current Issuer Cash Manager determines (as set forth in
            paragraph 1(a)(iii)) that there is a Current Issuer Income Deficit
            and the Current Issuer has provided for that deficit by the
            application of funds standing to the credit of the Current Issuer
            Principal Ledger, if any, then the Current Issuer Cash Manager
            shall make a corresponding debit entry in the relevant Current
            Issuer Principal Deficiency Sub Ledger, PROVIDED THAT the Current
            Issuer Cash Manager shall ensure that Current Issuer Principal
            Receipts are not used to pay interest on any class of Current
            Issuer Notes if and to the extent that would result in a
            deficiency being recorded, or an existing deficiency being
            increased, on a Current Issuer Principal Deficiency Sub Ledger
            relating to a higher ranking Class of Current Issuer Notes, and
            furthermore that Current Issuer Principal Receipts are not used to
            make up any deficit other than in respect of items (A) through
            (E), (G), (I) and (K) of the Current Issuer Pre-



                                      27
<PAGE>

            Enforcement Revenue Priority of Payments. The Current Issuer Cash
            Manager shall thereafter record as a debit on the Current Issuer
            Revenue Ledger the application by the Current Issuer of any excess
            Current Issuer Available Revenue Receipts to extinguish any
            balance on a Current Issuer Principal Deficiency Sub Ledger.

       (c)  The Current Issuer Cash Manager may make all the determinations
            referred to in paragraph 1(a) on the basis of any reasonable and
            proper assumptions as the Current Issuer Cash Manager considers
            appropriate (including without limitation as to the amount of any
            payments to be made under paragraph 3 below during the period from
            and including the Current Issuer Note Determination Date
            immediately preceding a Payment Date to but excluding such Payment
            Date).

            The Current Issuer Cash Manager shall notify the Current Issuer
            and the Note Trustee on request of any such other assumptions and
            shall take account of any representations made by the Current
            Issuer and the Note Trustee (as the case may be) in relation
            thereto.

       (d)  Each determination made in accordance with this paragraph 1 shall
            (in the absence of bad faith, wilful default, negligence and
            manifest error) be final and binding on all persons.

2.     Notification of Determinations

       (a)  The Current Issuer Cash Manager will cause each determination of
            Current Issuer Available Principal Receipts and Current Issuer
            Available Revenue Receipts (in accordance with paragraph 1(a)(i)
            and (ii)) and any Current Issuer Income Deficit (in accordance
            with paragraph 1(a)(iii)) to be notified forthwith, following the
            calculation thereof, to the Current Issuer.

       (b)  The Current Issuer Cash Manager shall procure that the
            determinations and notifications required to be made pursuant to
            Condition 5(C) of the Conditions are made.

3.     Priority of Payments for Current Issuer Available Revenue Receipts

       Current Issuer Available Revenue Receipts will be applied, as
       applicable:

       (a)  on each Payment Date; or

       (b)  on each day when due in respect of amounts due to third parties
            pursuant to paragraph (C) below,

       in each case prior to the enforcement of the Current Issuer Security
       pursuant to the Current Issuer Deed of Charge or until such time as
       there are no Current Issuer Secured Obligations outstanding, in making
       such payments and provisions in the following order of priority (in
       each case only if and to the extent that payments or provisions of a
       higher priority have been made in full) (the "Current Issuer
       Pre-Enforcement Revenue Priority of Payments"):



                                      28
<PAGE>

       (A)  first, to pay amounts due to the Note Trustee, together with
            interest and (to the extent not already inclusive) VAT on those
            amounts, and to provide for any amounts due or to become due
            during the following Interest Period to the Note Trustee under the
            Current Issuer Trust Deed, the Current Issuer Deed of Charge or
            any other Transaction Document;

       (B)  second, in no order of priority among them but in proportion to
            the respective amounts due, to pay amounts due to the Agent Bank,
            the Paying Agents, the Transfer Agent and the Registrar, together
            with interest and (to the extent not already inclusive) VAT on
            those amounts, and to provide for any costs, charges, liabilities
            and expenses due or to become due during the following Interest
            Period to the Agent Bank, the Paying Agents, the Transfer Agent
            and the Registrar under the Current Issuer Paying Agent and Agent
            Bank Agreement;

       (C)  third, to pay amounts due to any third party creditors of the
            Current Issuer (other than those referred to later in this order
            of priority of payments or in the Current Issuer Pre-Enforcement
            Principal Priority of Payments), of which the Current Issuer Cash
            Manager has notice prior to the relevant Payment Date, which
            amounts have been incurred without breach by the Current Issuer of
            the Transaction Documents to which it is a party and for which
            payment has not been provided for elsewhere and to provide for any
            such amounts expected to become due and payable during the
            following Interest Period by the Current Issuer and to pay or
            discharge any liability of the Current Issuer for corporation tax
            on any chargeable income or gain of the Current Issuer;

       (D)  fourth, in no order of priority among them but in proportion to
            the respective amounts due, to pay amounts due to the Current
            Issuer Cash Manager under the Current Issuer Cash Management
            Agreement, the Current Issuer Corporate Services Provider under
            the Current Issuer Corporate Services Agreement and the Current
            Issuer Account Bank under the Current Issuer Bank Account
            Agreement together with (to the extent not already inclusive) VAT
            on those amounts, and to provide for any amounts due, or to become
            due in the immediately succeeding Interest Period, to the Current
            Issuer Cash Manager under the Current Issuer Cash Management
            Agreement, to the Current Issuer Corporate Services Provider under
            the Current Issuer Corporate Services Agreement and to the Current
            Issuer Account Bank under the Current Issuer Bank Account
            Agreement;

       (E)  fifth, in no order of priority among them but in proportion to the
            respective amounts due, to pay:

            (1)  amounts (including such part of any termination payment) due
                 to the Current Issuer Basis Rate Swap Provider (except for
                 any termination payment or any part thereof due and payable
                 to the Current Issuer Basis Rate Swap Provider as a result of
                 a Basis Rate Swap Provider Default, save to the extent such
                 termination payment may be satisfied by any Swap Replacement
                 Payment received by the Current Issuer following a Downgrade
                 Termination Event and applied in accordance with this order
                 of priority of payments);



                                      29
<PAGE>

            (2)  amounts due in respect of interest and such part of any
                 termination payment due to the Series 1 Class A1 Dollar
                 Currency Swap Provider under the Series 1 Class A1 Dollar
                 Currency Swap (except for any termination payment or any part
                 thereof due and payable to that Swap Provider as a result of
                 a Dollar Currency Swap Provider Default by that Swap
                 Provider, save to the extent such termination payment may be
                 satisfied by any Swap Replacement Payment received by the
                 Current Issuer following a Downgrade Termination Event and
                 applied in accordance with this order of priority of
                 payments) and from amounts received on each Payment Date in
                 respect of interest from the Series 1 Class A1 Dollar
                 Currency Swap Provider to pay on such Payment Date interest
                 due or overdue on the Series 1 Class A1 Notes to holders of
                 the Series 1 Class A1 Notes; and

            (3)  amounts due in respect of interest and such part of any
                 termination payment due to the Series 1 Class A2 Dollar
                 Currency Swap Provider under the Series 1 Class A2 Dollar
                 Currency Swap (except for any termination payment or any part
                 thereof due and payable to that Swap Provider as a result of
                 a Dollar Currency Swap Provider Default by that Swap
                 Provider, save to the extent such termination payment may be
                 satisfied by any Swap Replacement Payment received by the
                 Current Issuer following a Downgrade Termination Event and
                 applied in accordance with this order of priority of
                 payments) and from amounts received on each Payment Date in
                 respect of interest from the Series 1 Class A2 Dollar
                 Currency Swap Provider to pay on such Payment Date interest
                 due or overdue on the Series 1 Class A2 Notes to holders of
                 the Series 1 Class A2 Notes;

            (4)  amounts due in respect of interest and such part of any
                 termination payment due to the Series 2 Class A1 Euro
                 Currency Swap Provider under the Series 2 Class A1 Euro
                 Currency Swap (except for any termination payment or any part
                 thereof due and payable to that Swap Provider as a result of
                 a Euro Currency Swap Provider Default by that Swap Provider,
                 save to the extent such termination payment may be satisfied
                 by any Swap Replacement Payment received by the Current
                 Issuer following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received on each Payment Date in respect of interest
                 from the Series 2 Class A1 Euro Currency Swap Provider to pay
                 on such Payment Date interest due or overdue on the Series 2
                 Class A1 Notes to the holders of the Series 2 Class A1 Notes;

            (5)  amounts due to pay on each Payment Date interest due or
                 overdue on the Series 2 Class A2 Notes to the holders of the
                 Series 2 Class A2 Notes; and

            (6)  amounts due to pay on each Payment Date interest due or
                 overdue on the Series 3 Class A Notes to the holders of the
                 Series 3 Class A Notes;



                                      30
<PAGE>

       (F)  sixth, towards a credit to the Class A Principal Deficiency Sub
            Ledger in an amount up to the amount necessary to eliminate any
            debit on the Class A Principal Deficiency Sub Ledger;

       (G)  seventh, in no order of priority among them but in proportion to
            the respective amounts due, to pay:

            (1)  amounts due in respect of interest and such part of any
                 termination payment due to the Series 1 Class B Dollar
                 Currency Swap Provider under the Series 1 Class B Dollar
                 Currency Swap (except for any termination payment or any part
                 thereof due and payable to that Swap Provider as a result of
                 a Dollar Currency Swap Provider Default by that Swap
                 Provider, save to the extent such termination payment may be
                 satisfied by any Swap Replacement Payment received by the
                 Current Issuer following a Downgrade Termination Event and
                 applied in accordance with this order of priority of
                 payments) and from amounts received on each Payment Date in
                 respect of interest from the Series 1 Class B Dollar Currency
                 Swap Provider to pay on such Payment Date interest due or
                 overdue on the Series 1 Class B Notes to the holders of the
                 Series 1 Class B Notes;

            (2)  amounts due in respect of interest and such part of any
                 termination payment due to the Series 2 Class B Euro Currency
                 Swap Provider under the Series 2 Class B Euro Currency Swap
                 (except for any termination payment or any part thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received on each Payment Date in respect of interest
                 from the Series 2 Class B Euro Currency Swap Provider to pay
                 on such Payment Date interest due or overdue on the Series 2
                 Class B Notes to the holders of the Series 2 Class B Notes;
                 and

            (3)  amounts due to pay on each Payment Date interest due or
                 overdue on the Series 3 Class B Notes to the holders of the
                 Series 3 Class B Notes.

       (H)  eighth, towards a credit to the Class B Principal Deficiency Sub
            Ledger in an amount up to the amount necessary to eliminate any
            debit on the Class B Principal Deficiency Sub Ledger;

       (I)  ninth, in no order or priority among them but in proportion to the
            respective amounts due, to pay:

            (1)  amounts due in respect of interest and such part of any
                 termination payment due to the Series 1 Class M Dollar
                 Currency Swap Provider under the Series 1 Class M Dollar
                 Currency Swap (except for any termination payment or any part
                 thereof due and payable to that Swap Provider as a result of
                 a Dollar Currency Swap Provider Default by that Swap
                 Provider, save to the extent such termination payment may



                                      31
<PAGE>

                 be satisfied by any swap replacement payment received by the
                 Current Issuer following a Downgrade Termination Event in
                 respect of the Series 1 Class M Dollar Currency Swap and
                 applied in accordance with this order of priority of
                 payments) and from amounts received on each Payment Date in
                 respect of interest from the Series 1 Class M Dollar Currency
                 Swap Provider to pay on such Payment Date interest due or
                 overdue on the Series 1 Class M Notes to the holders of the
                 Series 1 Class M Notes;

            (2)  amounts due in respect of interest and such part of any
                 termination payment due to the Series 2 Class M Euro Currency
                 Swap Provider under the Series 2 Class M Euro Currency Swap
                 (except for any termination payment or any part thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event in respect of the
                 Series 2 Class C Euro Currency Swap and applied in accordance
                 with this order of priority of payments) and from amounts
                 received on each Payment Date in respect of interest from the
                 Series 2 Class M Euro Currency Swap Provider to pay on such
                 Payment Date interest due or overdue on the Series 2 Class M
                 Notes to the holders of the Series 2 Class M Notes; and

            (3)  amounts due to pay on each Payment Date interest due or
                 overdue on the Series 3 Class M Notes to the holders of the
                 Series 3 Class M Notes;

       (J)  tenth, to credit to the Class M Principal Deficiency Sub Ledger in
            an amount up to the amount necessary to eliminate any debit on
            that ledger;

       (K)  eleventh, in no order of priority among them but in proportion to
            the respective amounts due, to pay:

            (1)  amounts due in respect of interest and such part of any
                 termination payment due to the Series 1 Class C Dollar
                 Currency Swap Provider under the Series 1 Class C Dollar
                 Currency Swap (except for any termination payment or any part
                 thereof due and payable to that Swap Provider as a result of
                 a Dollar Currency Swap Provider Default by that Swap
                 Provider, save to the extent such termination payment may be
                 satisfied by any Swap Replacement Payment received by the
                 Current Issuer following a Downgrade Termination Event and
                 applied in accordance with this order of priority of
                 payments) and from amounts received on each Payment Date in
                 respect of interest from the Series 1 Class C Dollar Currency
                 Swap Provider to pay on such Payment Date interest due or
                 overdue on the Series 1 Class C Notes to the holders of the
                 Series 1 Class C Notes;

            (2)  amounts due in respect of interest and such part of any
                 termination payment due to the Series 2 Class C Euro Currency
                 Swap Provider under the Series 2 Class C Euro Currency Swap
                 (except for any



                                      32
<PAGE>

                 termination payment or any part thereof due and payable to
                 that Swap Provider as a result of a Euro Currency Swap
                 Provider Default by that Swap Provider, save to the extent
                 such termination payment may be satisfied by any Swap
                 Replacement Payment received by the Current Issuer following
                 a Downgrade Termination Event and applied in accordance with
                 this order of priority of payments) and from amounts received
                 on each Payment Date in respect of interest from the Series 2
                 Class C Euro Currency Swap Provider to pay on such Payment
                 Date interest due or overdue on the Series 2 Class C Notes to
                 the holders of the Series 2 Class C Notes; and

            (3)  amounts due to pay on each Payment Date interest due or
                 overdue on the Series 3 Class C Notes to the holders of the
                 Series 3 Class C Notes;

       (L)  twelfth, to credit the Class C Principal Deficiency Sub Ledger in
            an amount up to the amount necessary to eliminate any debit on the
            Class C Principal Deficiency Sub Ledger;

       (M)  thirteenth, on the Payment Date falling in December of each year,
            to pay to the Current Issuer Cash Manager an amount equal to the
            amount of any debit balance on any Current Issuer Transaction
            Account as permitted by the Current Issuer Cash Manager, incurred
            in accordance with the provisions of the Current Issuer
            Transaction Documents and outstanding as at such Payment Date;

       (N)  fourteenth, in no order of priority among them but in proportion
            to the respective amounts due, to pay any termination payment to:

            (1)  the Current Issuer Basis Rate Swap Provider following a Basis
                 Rate Swap Provider Default;

            (2)  any Dollar Currency Swap Provider following a Dollar Currency
                 Swap Provider Default; and

            (3)  any Euro Currency Swap Provider following a Euro Currency
                 Swap Provider Default;

       (O)  fifteenth, to pay to the Current Issuer an amount equal to 0.01%
            per annum of the interest received under the Current Issuer
            Intercompany Loan, to be retained by the Current Issuer as profit,
            less corporation tax in respect of those profits provided for or
            paid at item (C) above; and

       (P)  last, to pay to shareholders of the Current Issuer any dividend
            declared by the Current Issuer.

       If any Swap Collateral Available Revenue Amounts are received by the
       Current Issuer on a Payment Date, such Swap Collateral Available
       Revenue Amounts shall be applied by the Current Issuer Cash Manager on
       that Payment Date in the same manner as it would have applied the
       receipts which such Swap Collateral Available Revenue Amounts replace.



                                      33
<PAGE>

       If, on any Payment Date, an amount equal to the cash benefit relating
       to any Tax Credit obtained by the Current Issuer is required to be paid
       by the Current Issuer to any Current Issuer Swap Provider (in
       accordance with Part 5(o) of the Schedule to the relevant Current
       Issuer Swap Agreement), then the Current Issuer shall make such payment
       on such Payment Date out of the Current Issuer Available Revenue
       Receipts in priority to the payments and provisions to be made on such
       Payment Date in accordance with the Current Issuer Pre-Enforcement
       Revenue Priority of Payments. The amount of any such cash benefit paid
       to the relevant Current Issuer Swap Provider in accordance with this
       paragraph shall, to avoid double counting, be deducted from the amount
       to be paid to that Current Issuer Swap Provider under the relevant
       Current Issuer Swap Agreement in accordance with the Current Issuer
       Pre-Enforcement Revenue Priority of Payments on the relevant Payment
       Date.

4.     Priority of Payments for Current Issuer Available Principal Receipts

4.1    Distribution of Current Issuer Available Principal Receipts Prior to
       Enforcement of the Current Issuer Security

       Prior to enforcement of the Current Issuer Security pursuant to the
       Current Issuer Deed of Charge and/or the occurrence of a Trigger Event,
       or until such time as there are no Current Issuer Notes outstanding,
       Current Issuer Available Principal Receipts will be applied in the
       following order of priority (the "Current Issuer Pre-Enforcement
       Principal Priority of Payments"):

       (A)  first, amounts due in respect of principal and such part of any
            termination payment due to the Series 1 Class A1 Dollar Currency
            Swap Provider under the Series 1 Class A1 Dollar Currency Swap
            (except for any termination payment or any part thereof due and
            payable to that Swap Provider as a result of a Dollar Currency
            Swap Provider Default by that Swap Provider, save to the extent
            such termination payment may be satisfied by any Swap Replacement
            Payment received by the Current Issuer following a Downgrade
            Termination Event and applied in accordance with this order of
            priority of payments) and from amounts received in respect of
            principal from the Series 1 Class A1 Dollar Currency Swap Provider
            to pay up to the Series 1 Class A1 Controlled Amortisation Amount
            to the holders of the Series 1 Class A1 Notes;

       (B)  second, amounts due in respect of principal and such part of any
            termination payment due to the Series 1 Class A2 Dollar Currency
            Swap Provider under the Series 1 Class A2 Dollar Currency Swap
            (except for any termination payment or any part thereof due and
            payable to that Swap Provider as a result of a Dollar Currency
            Swap Provider Default by that Swap Provider, save to the extent
            such termination payment may be satisfied by any Swap Replacement
            Payment received by the Current Issuer following a Downgrade
            Termination Event and applied in accordance with this order of
            priority of payments) and from amounts received in respect of
            principal from the Series 1 Class A2 Dollar Currency Swap Provider
            to pay up to the Series 1 Class A2 Controlled Amortisation Amount
            to the holders of the Series 1 Class A2 Notes;



                                      34
<PAGE>

       (C)  third, in no order of priority between them but in proportion to
            the amounts due, to pay:

            (1)  amounts due in respect of principal and such part of any
                 termination payment due to the Series 2 Class A1 Euro
                 Currency Swap Provider under the Series 2 Class A1 Euro
                 Currency Swap (except for any termination payment or any part
                 thereof due and payable to that Swap Provider as a result of
                 a Euro Currency Swap Provider Default by that Swap Provider,
                 save to the extent such termination payment may be satisfied
                 by any Swap Replacement Payment received by the Current
                 Issuer following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received in respect of principal from the Series 2
                 Class A1 Euro Currency Swap Provider to pay up to the Series
                 2 Class A1 Controlled Amortisation Amount to the holders of
                 the Series 2 Class A1 Notes;

            (2)  to pay up to the Series 2 Class A2 Controlled Amortisation
                 Amount to the holders of the Series 2 Class A2 Notes; and

            (3)  to pay up to the Series 3 Class A Controlled Amortisation
                 Amount to the holders of the Series 3 Class A Notes;

       (D)  fourth, provided that the Issuer Reserve Requirement and the
            Issuer Arrears Test are satisfied on such Payment Date (or, if
            either the Issuer Reserve Requirement or the Issuer Arrears Test
            is not satisfied on such Payment Date, but the Class A Notes have
            been repaid in full) no order of priority among them but in
            proportion to the respective amounts due, to pay:

            (1)  amounts due in respect of principal and such part of any
                 termination payment due to the Series 1 Class B Dollar
                 Currency Swap Provider under the Series 1 Class B Dollar
                 Currency Swap (except for any termination payment or any part
                 thereof due and payable to that Swap Provider as a result of
                 a Dollar Currency Swap Provider Default by that Swap
                 Provider, save to the extent such termination payment may be
                 satisfied by any Swap Replacement Payment received by the
                 Current Issuer following a Downgrade Termination Event in
                 respect of the Series 1 Class B Dollar Currency Swap and
                 applied in accordance with this order of priority of
                 payments) and from amounts received in respect of principal
                 from the Series 1 Class B Dollar Currency Swap Provider to
                 pay up to the Series 1 Class B Controlled Amortization Amount
                 to the holders of the Series 1 Class B Notes;

            (2)  amounts due in respect of principal and such part of any
                 termination payment due to the Series 2 Class B Euro Currency
                 Swap Provider under the Series 2 Class B Euro Currency Swap
                 (except for any termination payment or any part thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event in respect of the
                 Series 2 Class B Euro Currency Swap and applied in accordance
                 with



                                      35
<PAGE>

                 this order of priority of payments) and from amounts received
                 in respect of principal from the Series 2 Class B Euro
                 Currency Swap Provider to pay up to the Series 2 Class B
                 Controlled Amortization Amount to the holders of the Series 2
                 Class B Notes; and

            (3)  up to the Series 3 Class B Controlled Amortization Amount to
                 the holders of the Series 3 Class B Notes;

       (E)  fifth, provided that the Issuer Reserve Requirement and the Issuer
            Arrears Test are satisfied on such Payment Date (or, if either the
            Issuer Reserve Requirement or the Issuer Arrears Test is not
            satisfied on such Payment Date, but the Class A Notes have been
            repaid in full), in no order of priority among them but in
            proportion to the respective amounts due, to pay:

            (1)  amounts due in respect of principal and such part of any
                 termination payment due to the Series 1 Class M Dollar
                 Currency Swap Provider under the Series 1 Class M Dollar
                 Currency Swap (except for any termination payment or any part
                 thereof due and payable to that Swap Provider as a result of
                 a Dollar Currency Swap Provider Default by that Swap
                 Provider, save to the extent such termination payment may be
                 satisfied by any Swap Replacement Payment received by the
                 Current Issuer following a Downgrade Termination Event in
                 respect of the Series 1 Class M Dollar Currency Swap and
                 applied in accordance with this order of priority of
                 payments) and from amounts received in respect of principal
                 from the Series 1 Class M Dollar Currency Swap Provider to
                 pay up to the Series 1 Class M Controlled Amortization Amount
                 to the holders of the Series 1 Class M Notes;

            (2)  amounts due in respect of principal and such part of any
                 termination payment due to the Series 2 Class M Euro Currency
                 Swap Provider under the Series 2 Class M Euro Currency Swap
                 (except for any termination payment or any part thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event in respect of the
                 Series 2 Class M Euro Currency Swap and applied in accordance
                 with this order of priority of payments) and from amounts
                 received in respect of principal from the Series 2 Class M
                 Euro Currency Swap Provider to pay up to the Series 2 Class M
                 Controlled Amortization Amount to the holders of the Series 2
                 Class M Notes; and

            (3)  up to the Series 3 Class M Controlled Amortization Amount to
                 the holders of the Series 3 Class M Notes; and

       (F)  last, provided that the Issuer Reserve Requirement and the Issuer
            Arrears Test are satisfied on such Payment Date (or, if either the
            Issuer Reserve Requirement or the Issuer Arrears Test is not
            satisfied on such Payment Date, but the Class A Notes have been
            repaid in full) in no order of priority among them but in
            proportion to the respective amounts due, to pay:



                                      36
<PAGE>

            (1)  amounts due in respect of principal and such part of any
                 termination payment due to the Series 1 Class C Dollar
                 Currency Swap Provider (except for any termination payment or
                 any part thereof due and payable to that Swap Provider as a
                 result of a Dollar Currency Swap Provider Default by that
                 Swap Provider, save to the extent such termination payment
                 may be satisfied by any Swap Replacement Payment received by
                 the Current Issuer following a Downgrade Termination Event
                 and applied in accordance with this order of priority of
                 payments) under the Series 1 Class C Dollar Currency Swap and
                 from amounts received in respect of principal from the Series
                 1 Class C Dollar Currency Swap Provider to pay up to the
                 Series 1 Class C Controlled Amortisation Amount to the
                 holders of the Series 1 Class C Notes;

            (2)  amounts due in respect of principal and such part of any
                 termination payment due to the Series 2 Class C Euro Currency
                 Swap Provider under the Series 2 Class C Euro Currency Swap
                 (except for any termination payment or any part thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received in respect of principal from the Series 2
                 Class C Euro Currency Swap Provider to pay up to the Series 2
                 Class C Controlled Amortisation Amount to the holders of the
                 Series 2 Class C Notes; and

            (3)  up to the Series 3 Class C Controlled Amortisation Amount to
                 the holders of the Series 3 Class C Notes.

       The Controlled Amortisation Amount of each class of Current Issuer
       Notes for each Payment Date is as set forth on Schedule 4.

       If any Swap Collateral Available Principal Amounts are received by the
       Current Issuer on a Payment Date, such Swap Collateral Available
       Principal Amounts shall be applied by the Current Issuer Cash Manager
       on that Payment Date in the same manner as it would have applied the
       receipts which such Swap Collateral Available Principal Amounts
       replace.

4.2    Distribution of Current Issuer Available Principal Receipts Following
       the Occurrence of a Non-Asset Trigger Event and prior to the occurrence
       of an Asset Trigger Event

       Following the occurrence of a Non-Asset Trigger Event and prior to the
       occurrence of an Asset Trigger Event but prior to enforcement of the
       Funding Security under the Funding Deed of Charge and/or the Current
       Issuer Security under the Current Issuer Deed of Charge, the Current
       Issuer Cash Manager will apply Current Issuer Available Principal
       Receipts in the following order of priority:

       (A)  first, to pay amounts (including such part of any termination
            payment) due to the Series 1 Class



                                      37
<PAGE>

            A1 Dollar Currency Swap Provider under the Series 1 Class A1
            Dollar Currency Swap (except for any termination payment or any
            part thereof due and payable to that Swap Provider as a result of
            a Dollar Currency Swap Provider Default by that Swap Provider,
            save to the extent such termination payment may be satisfied by
            any Swap Replacement Payment received by the Current Issuer
            following a Downgrade Termination Event and applied in accordance
            with this order of priority of payments) and from amounts received
            from the Series 1 Class A1 Dollar Currency Swap Provider to repay
            the Series 1 Class A1 Notes until the Series 1 Class A1 Notes have
            been repaid in full;

       (B)  second, to pay amounts (including such part of any termination
            payment) due to the Series 1 Class A2 Dollar Currency Swap
            Provider under the Series 1 Class A2 Dollar Currency Swap (except
            for any termination payment or any part thereof due and payable to
            that Swap Provider as a result of a Dollar Currency Swap Provider
            Default by that Swap Provider, save to the extent such termination
            payment may be satisfied by any Swap Replacement Payment received
            by the Current Issuer following a Downgrade Termination Event and
            applied in accordance with this order of priority of payments) and
            from amounts received from the Series 1 Class A2 Dollar Currency
            Swap Provider to repay the Series 1 Class A2 Notes until the
            Series 1 Class A2 Notes have been repaid in full;

       (C)  third, in no order of priority between them but in proportion to
            the amounts due:

            (1)  to pay amounts (including such part of any termination
                 payment) due to the Series 2 Class A1 Euro Currency Swap
                 Provider under the Series 2 Class A1 Euro Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 2 Class A1 Euro Currency
                 Swap Provider to repay the Series 2 Class A1 Notes until the
                 Series 2 Class A1 Notes have been repaid in full;

            (2)  to repay the Series 2 Class A2 Notes until the Series 2 Class
                 A2 Notes have been repaid in full; and

            (3)  to repay the Series 3 Class A Notes until the Series 3 Class
                 A Notes have been repaid in full;

       (D)  fourth, in no order of priority among them, but in proportion to
            the amounts due:

            (1)  to pay amounts (including such part of any termination
                 payment) due to the Series 1 Class B Dollar Currency Swap
                 Provider under the Series 1 Class B Dollar Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider



                                      38
<PAGE>

                 as a result of a Dollar Currency Swap Provider Default by
                 that Swap Provider, save to the extent such termination
                 payment may be satisfied by any Swap Replacement Payment
                 received by the Current Issuer following a Downgrade
                 Termination Event and applied in accordance with this order
                 of priority of payments) and from amounts received from the
                 Series 1 Class B Dollar Currency Swap Provider to repay the
                 Series 1 Class B Notes until the Series 1 Class B Notes have
                 been repaid in full;

            (2)  to pay amounts (including such part of any termination
                 payment) due to the Series 2 Class B Euro Currency Swap
                 Provider under the Series 2 Class B Euro Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 2 Class B Euro Currency Swap
                 Provider to repay the Series 2 Class B Notes until the Series
                 2 Class B Notes have been repaid in full; and

            (3)  to repay the Series 3 Class B Notes until the Series 3 Class
                 B Notes have been repaid in full;

       (E)  fifth, in no order of priority among them, but in proportion to
            the amounts due:

            (1)  to pay amounts (including such part of any termination
                 payment) due to the Series 1 Class M Dollar Currency Swap
                 Provider under the Series 1 Class M Dollar Currency Swap
                 (except for any termination payment or any part thereof due
                 and payable to that Swap Provider, as a result of a Dollar
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment, received by the Current Issuer
                 following a Downgrade Termination Event in respect of the
                 Series 1 Class M Dollar Currency Swap and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 1 Class M Dollar Currency
                 Swap Provider to repay the Series 1 Class M Notes until the
                 Series 1 Class M Notes have been repaid in full;

            (2)  to pay amounts (including such part of any termination
                 payment) due to the Series 2 Class M Euro Currency Swap
                 Provider under the Series 2 Class M Euro Currency Swap
                 (except for any termination payment or any part thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event in respect of the
                 Series 2 Class M Euro Currency Swap and applied in accordance
                 with this order of priority of



                                      39
<PAGE>

                 payments) and from amounts received from the Series 2 Class M
                 Euro Currency Swap Provider to repay the Series 2 Class M
                 Notes until the Series 2 Class M Notes have been repaid in
                 full; and

            (3)  to repay the Series 3 Class M Notes until the Series 3 Class
                 M Notes have been repaid in full; and

       (F)  last, in no order of priority among them, but in proportion to the
            amounts due:

            (1)  to pay amounts (including such part of any termination
                 payment) due to the Series 1 Class C Dollar Currency Swap
                 Provider under the Series 1 Class C Dollar Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Dollar
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 1 Class C Dollar Currency
                 Swap Provider to repay the Series 1 Class C Notes until the
                 Series 1 Class C Notes have been repaid in full;

            (2)  to pay amounts (including such part of any termination
                 payment) due to the Series 2 Class C Euro Currency Swap
                 Provider under the Series 2 Class C Euro Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 2 Class C Euro Currency Swap
                 Provider to repay the Series 2 Class C Notes until the Series
                 2 Class C Notes have been repaid in full; and

            (3)  to repay the Series 3 Class C Notes until the Series 3 Class
                 C Notes have been repaid in full.

       If any Swap Collateral Available Principal Amounts are received by the
       Current Issuer on a Payment Date, such Swap Collateral Available
       Principal Amounts shall be applied by the Current Issuer Cash Manager
       on that Payment Date in the same manner as it would have applied the
       receipts which such Swap Collateral Available Principal Amounts
       replace.

4.3    Distribution of Current Issuer Available Principal Receipts Following
       the Occurrence of an Asset Trigger Event

       Following the occurrence of an Asset Trigger Event but prior to
       enforcement of the Funding Security under the Funding Deed of Charge
       and/or the Current Issuer Security under the Current Issuer Deed of
       Charge, the Current Issuer Cash Manager



                                      40
<PAGE>

       will apply Current Issuer Available Principal Receipts in the following
       order of priority:

       (A)  first, in no order of priority among them, but in proportion to
            the amounts due:

            (1)  to pay amounts (including such part of any termination
                 payment) due to the Series 1 Class A1 Dollar Currency Swap
                 Provider under the Series 1 Class A1 Dollar Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Dollar
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 1 Class A1 Dollar Currency
                 Swap Provider to repay the Series 1 Class A1 Notes until the
                 Series 1 Class A1 Notes have been repaid in full;

            (2)  to pay amounts (including such part of any termination
                 payment) due to the Series 1 Class A2 Dollar Currency Swap
                 Provider under the Series 1 Class A2 Dollar Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Dollar
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 1 Class A2 Dollar Currency
                 Swap Provider to repay the Series 1 Class A2 Notes until the
                 Series 1 Class A2 Notes have been repaid in full;

            (3)  to pay amounts (including such part of any termination
                 payment) due to the Series 2 Class A1 Euro Currency Swap
                 Provider under the Series 2 Class A1 Euro Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 2 Class A1 Euro Currency
                 Swap Provider to repay the Series 2 Class A1 Notes until the
                 Series 2 Class A1 Notes have been repaid in full;

            (4)  to repay the Series 2 Class A2 Notes until the Series 2 Class
                 A2 Notes have been repaid in full; and

            (5)  to repay the Series 3 Class A Notes until the Series 3 Class
                 A Notes have been repaid in full;



                                      41
<PAGE>

       (B)  second, in no order of priority among them, but in proportion to
            the amounts due:

            (1)  to pay amounts (including such part of any termination
                 payment) due to the Series 1 Class B Dollar Currency Swap
                 Provider under the Series 1 Class B Dollar Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Dollar
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 1 Class B Dollar Currency
                 Swap Provider to repay the Series 1 Class B Notes until the
                 Series 1 Class B Notes have been repaid in full; and

            (2)  to pay amounts (including such part of any termination
                 payment) due to the Series 2 Class B Euro Currency Swap
                 Provider under the Series 2 Class B Euro Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 2 Class B Euro Currency Swap
                 Provider to repay the Series 2 Class B Notes until the Series
                 2 Class B Notes have been repaid in full; and

            (3)  to repay the Series 3 Class B Notes until the Series 3 Class
                 B Notes have been repaid in full;

       (C)  third, in no order of priority among them, but in proportion to
            the amounts due:

            (1)  to pay amounts (including such part of any termination
                 payment) due to the Series 1 Class M Dollar Currency Swap
                 Provider under the Series 1 Class M Dollar Currency Swap
                 (except for any termination payment or any part thereof due
                 and payable to that Swap Provider as a result of a Dollar
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event in respect of the
                 Series 1 Class M Dollar Currency Swap and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 1 Class M Dollar Currency
                 Swap Provider to repay the Series 1 Class M Notes until the
                 Series 1 Class M Notes have been repaid in full; and

            (2)  to pay amounts (including such part of any termination
                 payment) due to the Series 2 Class M Euro Currency Swap
                 Provider under the Series



                                      42
<PAGE>

                 2 Class M Euro Currency Swap (except for any termination
                 payment or any part thereof due and payable to that Swap
                 Provider as a result of a Euro Currency Swap Provider Default
                 by that Swap Provider, save to the extent such termination
                 payment may be satisfied by any Swap Replacement Payment
                 received by the Issuer following a Downgrade Termination
                 Event in respect of the Series 2 Class M Euro Currency Swap
                 and applied in accordance with this order of priority of
                 payments) and from amounts received from the Series 2 Class M
                 Euro Currency Swap Provider to repay the Series 2 Class M
                 Notes until the Series 2 Class M Notes have been repaid in
                 full; and

            (3)  to repay the Series 3 Class M Notes until the Series 3 Class
                 M Notes have been repaid in full; and

       (D)  last, in no order of priority among them, but in proportion to the
            amounts due:

            (1)  to pay amounts (including such part of any termination
                 payment) due to the Series 1 Class C Dollar Currency Swap
                 Provider under the Series 1 Class C Dollar Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Dollar
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 1 Class C Dollar Currency
                 Swap Provider to repay the Series 1 Class C Notes until the
                 Series 1 Class C Notes have been repaid in full;

            (2)  to pay amounts (including such part of any termination
                 payment) due to the Series 2 Class C Euro Currency Swap
                 Provider under the Series 2 Class C Euro Currency Swap
                 (except for any termination payment or any amount thereof due
                 and payable to that Swap Provider as a result of a Euro
                 Currency Swap Provider Default by that Swap Provider, save to
                 the extent such termination payment may be satisfied by any
                 Swap Replacement Payment received by the Current Issuer
                 following a Downgrade Termination Event and applied in
                 accordance with this order of priority of payments) and from
                 amounts received from the Series 2 Class C Euro Currency Swap
                 Provider to repay the Series 2 Class C Notes until the Series
                 2 Class C Notes have been repaid in full; and

            (3)  to repay the Series 3 Class C Notes until the Series 3 Class
                 C Notes have been repaid in full.

       If any Swap Collateral Available Principal Amounts are received by the
       Current Issuer on a Payment Date, such Swap Collateral Available
       Principal Amounts shall be applied by the Current Issuer Cash Manager
       on that Payment Date in the same manner as it would have applied the
       receipts which such Swap Collateral Available Principal Amounts
       replace.



                                      43
<PAGE>

5.     Use of Ledgers

       The Current Issuer Cash Manager shall forthwith record monies received
       or payments made by it on behalf of the Current Issuer in the ledgers
       in the manner set out in this Agreement. If, at any time, the Current
       Issuer Cash Manager is in any doubt as to which ledger a particular
       amount should be credited or debited, it shall consult with the Note
       Trustee thereon.

       Except in the case of the Current Issuer Principal Deficiency Ledger
       and except as provided in Clause 2.4.(b) of the Current Issuer Bank
       Account Agreement, a debit item shall only be made in respect of any of
       the Current Issuer Ledgers, and the corresponding payment or transfer
       (if any) may only be made from the Current Issuer Transaction Accounts,
       to the extent that such entry does not cause the relevant ledger to
       have a debit balance. In the case of the Current Issuer Principal
       Deficiency Ledger and each Current Issuer Principal Deficiency Sub
       Ledger, a credit item shall only be made to the extent that such entry
       does not cause such ledger to have a credit balance.

6.     Current Issuer Revenue Ledger

       The Current Issuer Cash Manager shall ensure that:

       (a)  the following amounts shall be credited to the Current Issuer
            Revenue Ledger:

            (i)    all interest fees and any other amount (not including
                   principal), if any, paid by Funding to the Current Issuer
                   under the terms of the Current Issuer Intercompany Loan;

            (ii)   all interest received by the Current Issuer in respect of
                   the Current Issuer Bank Accounts;

            (iii)  all amounts received by the Current Issuer representing
                   income on any Current Issuer Authorised Investments;

            (iv)   all amounts (including any early termination payment which
                   is to be used to acquire, if necessary, a new basis rate
                   swap) received by the Current Issuer under the Basis Rate
                   Swap Agreement;

            (v)    all revenue amounts (including any early termination
                   payment which is to be used to acquire, if necessary, a new
                   currency swap) received by the Current Issuer under the
                   Currency Swap Agreements;

            (vi)   all revenue amounts (including any early termination
                   payment which is to be used to acquire, if necessary, a new
                   interest rate swap) received by the Current Issuer under
                   the Current Issuer Series 3 Class A Interest Rate Swap
                   Agreement; and

            (vii)  any amount debited to the Current Issuer Principal Ledger
                   under paragraph 8; and

       (b)  any payment or provision made under paragraphs 1 and 3 of this
            Schedule 2 shall be debited to the Current Issuer Revenue Ledger.



                                      44
<PAGE>

7.     Current Issuer Principal Ledger

       Without prejudice to paragraph 8 below, the Current Issuer Cash Manager
       shall ensure that:

       (a)  the following amounts shall be credited to the Current Issuer
            Principal Ledger:

            (i)    all principal paid by Funding to the Current Issuer under
                   the terms of the Current Issuer Intercompany Loan;

            (ii)   amounts credited to the Current Issuer Principal Deficiency
                   Ledger under paragraphs 3 and 8 (excluding amounts credited
                   to the Current Issuer Principal Deficiency Ledger under
                   paragraph 8(d)); and

       (b)  any payment or provision made under paragraph 4 of this Schedule 2
            shall be debited to the Current Issuer Principal Ledger.

8.     Current Issuer Principal Deficiency Ledger

       (a)  Without prejudice to paragraph 7, the Current Issuer Cash Manager
            shall ensure that there shall be debited to the Current Issuer
            Principal Deficiency Ledger:

            (i)    principal deficiencies arising from Losses on the Mortgage
                   Loans which have been allocated by Funding to the Current
                   Issuer Intercompany Loan;

            (ii)   the use of Current Issuer Available Principal Receipts to
                   meet any deficiency in Current Issuer Available Revenue
                   Receipts; and

            (iii)  the use of Funding Available Principal Receipts to fund the
                   Current Issuer Liquidity Reserve Fund, if any.

       (b)  The Current Issuer Cash Manager shall ensure that there shall be
            credited to the Current Issuer Principal Deficiency Ledger any
            amount to be credited in accordance with paragraph 3 above.

       (c)  Amounts to be debited to the Current Issuer Principal Deficiency
            Ledger shall be debited in the following order:

            (i)    first, on the Class C Principal Deficiency Sub Ledger,
                   until the balance of the Class C Principal Deficiency Sub
                   Ledger is equal to the aggregate Outstanding Principal
                   Balance of the Class C Notes;

            (ii)   second, on the Class M Principal Deficiency Sub Ledger,
                   until the balance of the Class M Principal Deficiency Sub
                   Ledger is equal to the aggregate Outstanding Principal
                   Balance of the Class M Notes;

            (iii)  third, on the Class B Principal Deficiency Sub Ledger,
                   until the balance of the Class B Principal Deficiency Sub
                   Ledger is equal to the aggregate Outstanding Principal
                   Balance of the Class B Notes; and



                                      45
<PAGE>

            (iv)   last, on the Class A Principal Deficiency Sub Ledger, at
                   which point an Asset Trigger Event will have occurred.

       (d)  The Current Issuer Cash Manager shall ensure that there shall be
            credited to the Current Issuer Principal Deficiency Ledger amounts
            to be credited to cure the deficiencies set out below and each
            time such a credit is made, the Current Issuer shall deemed to
            have cured the relevant deficiency in the following order:

            (i)    first, deficiencies which have resulted from the
                   application of Current Issuer Available Principal Receipts
                   to meet any deficiency in Current Issuer Available Revenue
                   Receipts;

            (ii)   second, deficiencies which have arisen from Principal
                   Losses on the Mortgage Loans being allocated by Funding to
                   the Current Issuer Intercompany Loan; and

            (iii)  last, deficiencies which have arisen from the application
                   by Funding of Funding Allocable Principal Receipts to fund
                   the Current Issuer Liquidity Reserve Fund.

       (e)  If, on any Payment Date, any Funding Available Revenue Receipts
            are applied by Funding as Funding Available Principal Receipts
            pursuant to rule 4 of the rules of application of Funding
            Available Revenue Receipts as set forth in Part 1 of Schedule 3 to
            the Funding Deed of Charge, then on such Payment Date the Current
            Issuer Cash Manger shall ensure that there shall be credited to
            the Current Issuer Principal Deficiency Ledger an amount equal to
            the amount so applied as Funding Available Principal Receipts.

9.     Records

       (a)  The Current Issuer Cash Manager shall ensure that a separate
            record is kept of any amount received from each of the Current
            Issuer Swap Providers pursuant to each of the Current Issuer Swap
            Agreements.

       (b)  The Current Issuer Cash Manager hereby agrees that, each time the
            Current Issuer Cash Manager records a debit on a Current Issuer
            Principal Deficiency Sub Ledger, the Current Issuer Cash Manager
            shall also record on such Current Issuer Principal Deficiency Sub
            Ledger whether such debit was caused by (A) Losses on the Mortgage
            Loans which have been allocated by Funding to the Current Issuer
            Intercompany Loan, (B) the application of Current Issuer Available
            Principal Receipts to meet any deficiency in Current Issuer
            Available Revenue Receipts, or (C) the application of Funding
            Available Principal Receipts to fund the Current Issuer Liquidity
            Reserve Fund, if any.

       (c)  The Current Issuer Cash Manager hereby agrees that, each time the
            Current Issuer Cash Manager records a credit on the Current Issuer
            Principal Deficiency Ledger to cure a deficiency, the Current
            Issuer Cash Manager shall also record on such Current Issuer
            Principal Deficiency Ledger the source of



                                      46
<PAGE>

            such deficiency as being one of the categories set forth in 8(d)
            above (as appropriate).

10.    Swap Collateral Ledger

       In connection with Swap Collateral the Current Issuer Cash Manager
       shall ensure that the appropriate debits and credits are made to the
       Swap Collateral Ledger in accordance with Clause 5.6 (Swap Collateral).



                                      47
<PAGE>

<TABLE>
<CAPTION>
                                               SCHEDULE 3


                                    Form of Issuer Quarterly Report

Granite Mortgages 04-2 plc
Profit & Loss Account

Period Ended

                                                                       This Quarter     Prior Quarter

                                                                       (GBP) 000's      (GBP) 000's

<S>                                                                    <C>              <C>
Interest Receivable - Intercompany Loan

Interest Receivable - Cash Deposits/Authorised
Investments


                                                                       -------------------------------
                                                                       0                0

Interest Payable - Notes
Interest Payable

                                                                       -------------------------------
                                                                       0                0


                                                                       -------------------------------
Net Operating Income                                                   0                0


Other Income


Operating Expenses

                                                                       -------------------------------
Profit/loss on ordinary activities before tax                          0                0


Taxation

                                                                       -------------------------------
Profit/loss on ordinary activities after tax                           0                0


Dividend                                                               0                0


Retained profit brought forward                                        0                0

                                                                       -------------------------------
Retained profit for the year                                           0                0

                                                                       ===============================
</TABLE>



                                                  48
<PAGE>

<TABLE>
<CAPTION>
Granite Mortgages 04-2 plc

Balance Sheet


Period Ended


                                                                 (GBP) 000's      (GBP) 000's

<S>                                                              <C>              <C>
Fixed Asset Investments


Intercompany Lending                                                              0


Current Assets

Interest Receivable                                              0

Other debtors                                                    0

Cash at Bank                                                     0

Current Issuer Transaction Account:
                                                                 -------------
                                                                 0

                                                                 -------------

Creditors: Amounts falling due within one year

Accruals                                                         0

Interest Payable Accrual                                         0

Taxation                                                         0
                                                                 -------------
                                                                 0

                                                                 -------------

Net current assets                                               0


Creditors: Amounts falling due after one year

Amount due to Noteholders                                        0


                                                                 -------------
Total Assets less current liabilities                            0

                                                                 =============

Share Capital                                                    0

Reserves                                                         0

                                                                 -------------
                                                                 0

                                                                 =============
</TABLE>



                                                  49
<PAGE>

Granite Mortgages 04-2 plc

Balance Sheet


Period Ended


Current Issuer Notes to Balance Sheet:

Principal Deficiency Ledger

Class A Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

Class B Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

Class M Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

Class C Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance



                                      50
<PAGE>

<TABLE>
<CAPTION>
Granite Mortgages 04-2 plc
Notes Outstanding

Period Ended

<S>                               <C>                  <C>                 <C>                 <C>                 <C>
                                  Series 1 Class A1    Series 1 Class A2   Series 2 Class A1   Series 2 Class A2   Series 3 Class A
Moody's Current Rating
Fitch Ratings Current Rating
S&P Current Rating


                                  Series 1 Class B                         Series 2 Class B    Series 3 Class B
Moody's Current Rating
Fitch Ratings Current Rating
S&P Current Rating


                                  Series 1 Class M                         Series 2 Class M    Series 3 Class M
Moody's Current Rating
Fitch Ratings Current Rating
S&P Current Rating


                                  Series 1 Class C                         Series 2 Class C    Series 3 Class C
Moody's Current Rating
Fitch Ratings Current Rating
S&P Current Rating



                                  Series 1 Class A1    Series 1 Class A2   Series 2 Class A1   Series 2 Class A2   Series 3 Class A
Initial Note Balance
Previous Quarters Note Principal
Note Redemptions
Outstanding Note Principal


                                  Series 1 Class B                         Series 2 Class B    Series 3 Class B
Initial Note Balance
Previous Quarters Note Principal
Note Redemptions
Outstanding Note Principal


                                  Series 1 Class M                         Series 2 Class M    Series 3 Class M
Initial Note Balance
Previous Quarters Note Principal
Note Redemptions
Outstanding Note Principal


                                  Series 1 Class C                         Series 2 Class C    Series 3 Class C
Initial Note Balance
Previous Quarters Note Principal
Note Redemptions
Outstanding Note Principal



                                  Series 1 Class A1    Series 1 Class A2   Series 2 Class A1   Series 2 Class A2   Series 3 Class A
Note Interest Margins
Step Up Dates
Step Up Margins


                                  Series 1 Class B                         Series 2 Class B    Series 3 Class B
Note Interest Margins
Step Up Dates
Step Up Margins


                                  Series 1 Class M                         Series 2 Class M    Series 3 Class M
Note Interest Margins
Step Up Dates
Step Up Margins





                                                                 51
<PAGE>

                                  Series 1 Class C                         Series 2 Class C    Series 3 Class C
Note Interest Margins
Step Up Dates
Step Up Margins


Payment Cycle
Payment Date
Next Payment Date

Amount Credited to Principal
Deficiency Sub Ledger:
Current Quarter:
Aggregate:
</TABLE>



                                                                 52
<PAGE>

                                  SCHEDULE 4

                 Controlled Amortisation Amount/Target Balance

The "Controlled Amortisation Amount" for each Class of Current Issuer Notes
for any Payment Date set forth below is an amount equal to the amount which
the Current Issuer would be required to repay in respect of such Class of
Current Issuer Notes so that on the relevant Payment Date the aggregate
Principal Amount Outstanding of such Class of Current Issuer Notes has been
reduced to (but is not less than) the "Target Balance" set out in the
following table:



                                      53
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Payment date       target balance for series 1            target balance for series 1          target balance for series 1
occurring in:      class A1 notes                         class A2 notes                       class B notes
-----------------  -------------------------------------  -----------------------------------  -------------------------------------
                          (GBP)                  US$             (GBP)                $                (GBP)                  $
                   ------------------    ---------------  ----------------    ---------------  ------------------    ---------------
<S>                <C>                   <C>              <C>                 <C>              <C>                   <C>
Sep-04                    383,202,422        675,585,869       750,311,968      1,322,800,000          22,858,764        40,300,000
Dec-04                    197,895,665        348,890,057       750,311,968      1,322,800,000          22,858,764        40,300,000
Mar-05                     22,643,355         39,920,234       750,311,968      1,322,800,000          22,858,764        40,300,000
Jun-05                                                 -       621,519,033      1,095,738,054          18,919,910        33,355,801
Sep-05                                                 -       480,443,644        847,022,144          14,625,377        25,784,540
Dec-05                                                 -       347,022,779        611,801,160          10,563,859        18,624,084
Mar-06                                                 -       220,841,116        389,342,887           6,722,713        11,852,143
Jun-06                                                 -       101,505,866        178,954,842           3,089,981         5,447,636
Sep-06                                                 -                                    -                                     -
Dec-06                                                 -                                    -                                     -
Mar-07                                                 -                                    -                                     -
Jun-07                                                 -                                    -                                     -
Sep-07                                                 -                                    -                                     -
Dec-07                                                 -                                    -                                     -
Mar-08                                                 -                                    -                                     -
Jun-08                                                 -                                    -                                     -
Sep-08                                                 -                                    -                                     -
Dec-08                                                 -                                    -                                     -
Mar-09                                                 -                                    -                                     -
Jun-09                                                 -                                    -                                     -
Sep-09                                                 -                                    -                                     -
Dec-09                                                 -                                    -                                     -
Mar-10                                                 -                                    -                                     -
Jun-10                                                 -                                    -                                     -
Sep-10                                                 -                                    -                                     -
Dec-10                                                 -                                    -                                     -
Mar-11                                                 -                                    -                                     -
Jun-11                                                 -                                    -                                     -
------------------------------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------------------------------------------------------------------
Payment date        target balance for series 1            target balance for series 1
occurring in:       class M notes                          class C notes
-----------------  -------------------------------------  -----------------------------------
                          (GBP)                  US$             (GBP)                $
                   ------------------    ---------------  ----------------    ---------------
Sep-04                     18,831,537         33,200,000        41,690,301         73,500,000
Dec-04                     18,831,537         33,200,000        41,690,301         73,500,000
Mar-05                     18,831,537         33,200,000        41,690,301         73,500,000
Jun-05                     15,608,925         27,518,535        34,528,835         60,874,336
Sep-05                     12,065,936         21,272,245        26,691,313         47,056,785
Dec-05                      8,715,184         15,364,869        19,279,043         33,988,953
Mar-06                      5,546,238          9,778,017        12,268,951         21,630,160
Jun-06                      2,549,234          4,494,300         5,639,215          9,941,936
Sep-06                                                 -                                    -
Dec-06                                                 -                                    -
Mar-07                                                 -                                    -
Jun-07                                                 -                                    -
Sep-07                                                 -                                    -
Dec-07                                                 -                                    -
Mar-08                                                 -                                    -
Jun-08                                                 -                                    -
Sep-08                                                 -                                    -
Dec-08                                                 -                                    -
Mar-09                                                 -                                    -
Jun-09                                                 -                                    -
Sep-09                                                 -                                    -
Dec-09                                                 -                                    -
Mar-10                                                 -                                    -
Jun-10                                                 -                                    -
Sep-10                                                 -                                    -
Dec-10                                                 -                                    -
Mar-11                                                 -                                    -
Jun-11                                                 -                                    -
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>



                                                                 54
<PAGE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Payment date        target balance for series 2           target balance for series 2          target balance for series 2
occurring in:       class A1 notes                        class A2 notes                       class B notes
------------------- ------------------------------------  -----------------------------------  ------------------------------------
                           (GBP)              (Euro)               (GBP)              GBP              (GBP)             (Euro)
                    -----------------    ---------------  -----------------    --------------  -----------------    ---------------
<S>                 <C>                  <C>              <C>                  <C>             <C>                  <C>
Sep-04                    911,564,626      1,340,000,000        244,000,000       244,000,000         62,585,034         92,000,000
Dec-04                    911,564,626      1,340,000,000        244,000,000       244,000,000         62,585,034         92,000,000
Mar-05                    911,564,626      1,340,000,000        244,000,000       244,000,000         62,585,034         92,000,000
Jun-05                    911,564,626      1,340,000,000        244,000,000       244,000,000         62,585,034         92,000,000
Sep-05                    911,564,626      1,340,000,000        244,000,000       244,000,000         62,585,034         92,000,000
Dec-05                    911,564,626      1,340,000,000        244,000,000       244,000,000         62,585,034         92,000,000
Mar-06                    911,564,626      1,340,000,000        244,000,000       244,000,000         62,585,034         92,000,000
Jun-06                    911,564,626      1,340,000,000        244,000,000       244,000,000         62,585,034         92,000,000
Sep-06                    904,971,363      1,330,307,903        241,682,314       241,682,314         62,086,592         91,267,291
Dec-06                    823,389,714      1,210,382,880        219,895,059       219,895,059         56,489,590         83,039,698
Mar-07                    746,234,555      1,096,964,796        199,289,946       199,289,946         51,196,273         75,258,521
Jun-07                    673,265,710        989,700,594        179,802,833       179,802,833         46,190,162         67,899,538
Sep-07                    604,256,038        888,256,375        161,373,059       161,373,059         41,455,675         60,939,842
Dec-07                    538,990,719        792,316,357        143,943,255       143,943,255         36,978,073         54,357,767
Mar-08                    477,266,591        701,581,889        127,459,165       127,459,165         32,743,419         48,132,826
Jun-08                    418,891,516        615,770,528        111,869,474       111,869,474         28,738,530         42,245,639
Sep-08                    363,683,778        534,615,153         97,125,655        97,125,655         24,950,940         36,677,882
Dec-08                    311,471,523        457,863,138         83,181,812        83,181,812         21,368,859         31,412,223
Mar-09                    262,092,221        385,275,564         69,994,540        69,994,540         17,981,136         26,432,269
Jun-09                    215,392,160        316,626,475         57,522,788        57,522,788         14,777,225         21,722,520
Sep-09                    171,225,970        251,702,175         45,727,733        45,727,733         11,747,153         17,268,315
Dec-09                    129,456,166        190,300,563         34,572,658        34,572,658          8,881,488         13,055,787
Mar-10                     89,952,724        132,230,504         24,022,840        24,022,840          6,171,309          9,071,825
Jun-10                     52,592,675         77,311,233         14,045,438        14,045,438          3,608,180          5,304,025
Sep-10                     17,259,723         25,371,793          4,609,394         4,609,394          1,184,123          1,740,661
Dec-10                                                 -                                    -                                     -
Mar-11                                                 -                                    -                                     -
Jun-11                                                 -                                    -                                     -
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>


<TABLE>
<CAPTION>
        ------------------------------------------------------------------------------------------
        Payment date       target balance for series 2           target balance for series 2
        occurring in:      class M notes                         class C notes
        -----------------  ------------------------------------  ----------------------------------
                                     (GBP)            (Euro)             (GBP)           (Euro)
                           -------------------    -------------  ----------------    --------------
<S>                        <C>                    <C>            <C>                 <C>
        Sep-04                      36,394,558       53,500,000        60,544,218      89,000,000
        Dec-04                      36,394,558       53,500,000        60,544,218      89,000,000
        Mar-05                      36,394,558       53,500,000        60,544,218      89,000,000
        Jun-05                      36,394,558       53,500,000        60,544,218      89,000,000
        Sep-05                      36,394,558       53,500,000        60,544,218      89,000,000
        Dec-05                      36,394,558       53,500,000        60,544,218      89,000,000
        Mar-06                      36,394,558       53,500,000        60,544,218      89,000,000
        Jun-06                      36,394,558       53,500,000        60,544,218      89,000,000
        Sep-06                      36,096,856       53,062,379        59,920,781      88,083,548
        Dec-06                      32,842,785       48,278,894        54,519,023      80,142,964
        Mar-07                      29,765,275       43,754,954        49,410,356      72,633,224
        Jun-07                      26,854,745       39,476,476        44,578,877      65,530,949
        Sep-07                      24,102,137       35,430,141        40,009,546      58,814,033
        Dec-07                      21,498,880       31,603,353        35,688,140      52,461,566
        Mar-08                      19,036,872       27,984,201        31,601,207      46,453,774
        Jun-08                      16,708,448       24,561,418        27,736,023      40,771,954
        Sep-08                      14,506,361       21,324,350        24,080,559      35,398,421
        Dec-08                      12,423,755       18,262,920        20,623,434      30,316,448
        Mar-09                      10,454,149       15,367,599        17,353,887      25,510,214
        Jun-09                       8,591,410       12,629,372        14,261,740      20,964,758
        Sep-09                       6,829,740       10,039,718        11,337,369      16,665,932
        Dec-09                       5,163,656        7,590,574         8,571,669      12,600,353
        Mar-10                       3,587,970        5,274,317         5,956,031       8,755,366
        Jun-10                       2,097,779        3,083,736         3,482,314       5,119,001
        Sep-10                         688,444        1,012,012         1,142,816       1,679,940
        Dec-10                                                -                                 -
        Mar-11                                                -                                 -
        Jun-11                                                -                                 -
        ------------------------------------------------------------------------------------------
</TABLE>



                                                                 55
<PAGE>

<TABLE>
<CAPTION>
        ------------------------------------------------------------------------------------------
        Payment date       (GBP) target balance for series 3     (GBP) target balance for series 3
        occurring in:      class A notes                         class B notes
        -----------------  ------------------------------------  ----------------------------------
                                  (GBP)                GBP             (GBP)               GBP
                           -------------------    -------------  ----------------    --------------
<S>                        <C>                    <C>            <C>                 <C>
        Sep-04                     752,100,000      752,100,000        38.900,000      38.900,000
        Dec-04                     752,100,000      752,100,000        38.900,000      38.900,000
        Mar-05                     752,100,000      752,100,000        38.900,000      38.900,000
        Jun-05                     752,100,000      752,100,000        38.900,000      38.900,000
        Sep-05                     752,100,000      752,100,000        38.900,000      38.900,000
        Dec-05                     752,100,000      752,100,000        38.900,000      38.900,000
        Mar-06                     752,100,000      752,100,000        38.900,000      38.900,000
        Jun-06                     752,100,000      752,100,000        38.900,000      38.900,000
        Sep-06                     752,100,000      752,100,000        38.900,000      38.900,000
        Dec-06                     752,100,000      752,100,000        38.900,000      38.900,000
        Mar-07                     752,100,000      752,100,000        38.900,000      38.900,000
        Jun-07                     752,100,000      752,100,000        38.900,000      38.900,000
        Sep-07                     752,100,000      752,100,000        38.900,000      38.900,000
        Dec-07                     752,100,000      752,100,000        38.900,000      38.900,000
        Mar-08                     752,100,000      752,100,000        38.900,000      38.900,000
        Jun-08                     752,100,000      752,100,000        38.900,000      38.900,000
        Sep-08                     752,100,000      752,100,000        38.900,000      38.900,000
        Dec-08                     752,100,000      752,100,000        38.900,000      38.900,000
        Mar-09                     752,100,000      752,100,000        38.900,000      38.900,000
        Jun-09                     752,100,000      752,100,000        38.900,000      38.900,000
        Sep-09                     752,100,000      752,100,000        38.900,000      38.900,000
        Dec-09                     752,100,000      752,100,000        38.900,000      38.900,000
        Mar-10                     752,100,000      752,100,000        38.900,000      38.900,000
        Jun-10                     752,100,000      752,100,000        38.900,000      38.900,000
        Sep-10                     752,100,000      752,100,000        38.900,000      38.900,000
        Dec-10                     731,833,345      731,833,345        37,895,408      37,895,408
        Mar-11                     692,125,245      692,125,245        35,839,264      35,839,264
        Jun-11                     654,571,643      654,571,643        33,894,683      33,894,683
        ------------------------------------------------------------------------------------------


        ------------------------------------------------------------------------------------------
        Payment date       (GBP) target balance for series 3     (GBP) target balance for series 3
        occurring in:      class M notes                         class C notes
        -----------------  ------------------------------------  ----------------------------------
                                     (GBP)              GBP            (GBP)               GBP
                           -------------------    -------------  ----------------    --------------
        Sep-04                      26,500,000       26,500,000        48,500,000      48,500,000
        Dec-04                      26,500,000       26,500,000        48,500,000      48,500,000
        Mar-05                      26,500,000       26,500,000        48,500,000      48,500,000
        Jun-05                      26,500,000       26,500,000        48,500,000      48,500,000
        Sep-05                      26,500,000       26,500,000        48,500,000      48,500,000
        Dec-05                      26,500,000       26,500,000        48,500,000      48,500,000
        Mar-06                      26,500,000       26,500,000        48,500,000      48,500,000
        Jun-06                      26,500,000       26,500,000        48,500,000      48,500,000
        Sep-06                      26,500,000       26,500,000        48,500,000      48,500,000
        Dec-06                      26,500,000       26,500,000        48,500,000      48,500,000
        Mar-07                      26,500,000       26,500,000        48,500,000      48,500,000
        Jun-07                      26,500,000       26,500,000        48,500,000      48,500,000
        Sep-07                      26,500,000       26,500,000        48,500,000      48,500,000
        Dec-07                      26,500,000       26,500,000        48,500,000      48,500,000
        Mar-08                      26,500,000       26,500,000        48,500,000      48,500,000
        Jun-08                      26,500,000       26,500,000        48,500,000      48,500,000
        Sep-08                      26,500,000       26,500,000        48,500,000      48,500,000
        Dec-08                      26,500,000       26,500,000        48,500,000      48,500,000
        Mar-09                      26,500,000       26,500,000        48,500,000      48,500,000
        Jun-09                      26,500,000       26,500,000        48,500,000      48,500,000
        Sep-09                      26,500,000       26,500,000        48,500,000      48,500,000
        Dec-09                      26,500,000       26,500,000        48,500,000      48,500,000
        Mar-10                      26,500,000       26,500,000        48,500,000      48,500,000
        Jun-10                      26,500,000       26,500,000        48,500,000      48,500,000
        Sep-10                      26,500,000       26,500,000        48,500,000      48,500,000
        Dec-10                      25,727,158       25,727,158        47,195,429      47,195,429
        Mar-11                      24,331,244       24,331,244        44,634,681      44,634,681
        Jun-11                      23,011,070       23,011,070        42,212,875      42,212,875
        ------------------------------------------------------------------------------------------
</TABLE>



                                                                 56
<PAGE>

PROVIDED THAT on the Payment Date immediately following the Step-up Date in
respect of the Current Issuer and on each Payment Date thereafter:

(1)    the Target Balance for the Series 1 Class A Notes will be zero; and

(2)    the Target Balances for each other Class of Notes will be an amount
       equal to the greater of:

       (a)  zero, and

       (b)  the aggregate Principal Amount Outstanding on such Class of Notes
            as at the immediately preceding Payment Date for Group 2 Issuers
            (after taking into account principal payments on such Payment
            Date) less an amount equal the product of:

            (i)    the sum of (1) the aggregate of the product of (A) the
                   Mortgages Trustee Principal Receipts for each Distribution
                   Date since the immediately preceding Payment Date for Group
                   2 Issuers, and (B) the Funding Share Percentage or, as
                   applicable, the Weighted Average Funding Share Percentage
                   applicable as at the later to occur of the Assignment Date,
                   the Funding Contribution Date and the Distribution Date, in
                   each case immediately preceding each Distribution Date
                   referred to in (A) above and (2) the amount standing to the
                   credit of the Funding Principal Ledger as at the end of the
                   preceding Payment Date for Group 2 Issuers (after
                   application of Funding Available Principal Receipts on that
                   Preceding Payment Date); and

            (ii)   the quotient of (A) the Outstanding Principal Balance on
                   such Current Issuer's Intercompany Loan as at the
                   immediately preceding Payment Date for Group 2 Issuers
                   (after taking into account principal payments on such
                   Payment Date) less the aggregate of amounts recorded on the
                   Principal Deficiency Ledger of the Current Issuer and less
                   the aggregate Outstanding Principal Balances of all Special
                   Repayment Notes divided by (B) the aggregate Outstanding
                   Principal Balance on all Intercompany Loans as at the
                   immediately preceding Payment Date for Group 2 Issuers
                   (after taking into account principal payments on such
                   Payment Date) less the sum of (1) the aggregate Outstanding
                   Principal Balance of all Special Repayment Notes and (2)
                   the aggregate of amounts recorded on the Principal
                   Deficiency Ledgers of all Issuers; and

            (iii)  either:

                   (A)  if the Class A Notes have not been repaid in full on
                        that Payment Date and either the Issuer Arrears Test
                        or the Issuer Reserve Requirement has not been
                        satisfied on such Payment Date:

                        (I)  in relation to Class A Notes, the quotient of (A)
                             the aggregate Principal Amount Outstanding on the
                             relevant Class of Notes as at the immediately
                             preceding



                                      57
<PAGE>

                             Payment Date for Group 2 Issuers (after taking
                             into account principal payments on Payment Date),
                             divided by (B) the Aggregate Principal Amount
                             Outstanding on all Class A Notes of the Issuer as
                             at the immediately preceding Payment Date for
                             Group 2 Issuers (after taking into account
                             principal payments on such Payment Date); and

                        (II) in relation to any other Class of Notes, zero; or

                   (B)  In any other case, the quotient of (A) the aggregate
                        Principal Amount Outstanding on the relevant Class of
                        Notes as at the immediately preceding Payment Date for
                        Group 2 Issuers (after taking into account principal
                        payments on such Payment Date) divided by (B) the
                        aggregate Principal Amount Outstanding on all Notes of
                        the Current Issuer as at the immediately preceding
                        Payment Date for Group 2 Issuers (after taking into
                        account principal payments on such Payment Date).

       Notwithstanding the foregoing, upon and after the occurrence of an ACA
       Trigger Event in respect of an ACA Issuer the Target Balance for each
       Class of Notes of such ACA Issuer will be zero.

       To the extent not repaid earlier, the full Principal Amount Outstanding
       on a Class of Current Issuer Notes will become due and payable on the
       final maturity date of that Class of Notes.



                                      58
<PAGE>

                                  SCHEDULE 5

          Current Issuer Cash Manager Representations and Warranties

The Current Issuer Cash Manager makes the following representations and
warranties to each of the Mortgages Trustee, Funding and the Note Trustee:

1.     Status: It is a public limited company duly incorporated, validly
       existing and registered under the laws of the jurisdiction in which it
       is incorporated, capable of being sued in its own right and not subject
       to any immunity from any proceedings, and it has the power to own its
       property and assets and to carry on its business as it is being
       conducted.

2.     Powers and authority: It has the power to enter into, perform and
       deliver, and has taken all necessary corporate and other action to
       authorise the execution, delivery and performance by it of each of the
       Transaction Documents to which it is or will be a party, and each such
       Transaction Document has been duly executed and delivered by it.

3.     Legal validity: Each Transaction Document to which it is or will be a
       party constitutes or when executed in accordance with its terms will
       constitute, a legal, valid and binding obligation.

4.     Non-conflict: The execution by it of each of the Transaction Documents
       to which it is a party and the exercise by it of its rights and the
       performance of its obligations under such Transaction Documents will
       not:

       (a)  conflict with any document which is binding upon it or any of its
            assets;

       (b)  conflict with its constitutional documents; or

       (c)  conflict with any law, regulation or official or judicial order of
            any government, governmental body or court, domestic or foreign,
            having jurisdiction over it.

5.     No litigation: It is not a party to any material litigation,
       arbitration or administrative proceedings and, to its knowledge, no
       material litigation, arbitration or administrative proceedings are
       pending or threatened against it.

6.     Consents and Licenses: All governmental consents, licences and other
       approvals and authorisations required in connection with the entry
       into, performance, validity and enforceability of, and the transactions
       contemplated by, the Transaction Documents have been obtained or
       effected (as appropriate) and are in full force and effect.

7.     Solvency: No Insolvency Event has occurred in respect of the Current
       Issuer Cash Manager, and the Current Issuer Cash Manager is not
       insolvent.

8.     Financial Statements: The most recent financial statements of the
       Current Issuer Cash Manager:



                                      59
<PAGE>

       (a)  were prepared in accordance with accounting principles generally
            accepted in England and Wales consistently applied;

       (b)  disclose all liabilities (contingent or otherwise) and all
            unrealised and or anticipated losses of the Current Issuer Cash
            Manager; and

       (c)  save as disclosed therein, give a true and fair view of the
            financial condition and operations of the Current Issuer Cash
            Manager during the relevant financial year.

9.     No Adverse Change: Since the date as of which the most recent financial
       statements of the Current Issuer Cash Manager were stated to be
       prepared, there has been:

       (a)  no significant change in the financial position of the Current
            Issuer Cash Manager; and

       (b)  no material adverse change in the financial position or prospects
            of the Current Issuer Cash Manager.

10.    Ranking of Claims

       Under the laws of England and Wales in force as at the date of making
       this representation, claims against the Current Issuer Cash Manager
       under the Transaction Documents will rank at least pari passu with the
       claims of all its other unsecured and unsubordinated creditors, save
       those whose claims are preferred solely by any bankruptcy, liquidation
       or other similar laws of general application.

11.    Information in Prospectus and Offering Circular:

       All information in the Prospectus and the Offering Circular with regard
       to the Current Issuer Cash Manager is true and accurate in all material
       respects and not misleading in any material respect.

The Current Issuer Cash Manager has made all proper inquiries to ascertain and
to verify the foregoing.



                                      60
<PAGE>

<TABLE>
<CAPTION>
                                                      EXECUTION PAGE

<S>                                                                    <C>
The Current Issuer Cash Manager

Executed by
NORTHERN ROCK PLC
as follows:                                                                By
Signed for and on its behalf by one of its duly authorised                   ------------------------------------------------------
attorneys/signatories                                                        Duly Authorised Attorney/Signatory

                                                                         Name
                                                                             ------------------------------------------------------


The Current Issuer

Executed by
GRANITE MORTGAGES 04-2 PLC
as follows:                                                                By
Signed for and on its behalf by one of its duly authorised                   ------------------------------------------------------
attorneys/signatories                                                        Duly Authorised Attorney/Signatory

                                                                         Name
                                                                             ------------------------------------------------------


The Note Trustee

Executed by
THE BANK OF NEW YORK
as follows:                                                                By
Signed for and on its behalf by one of its duly authorised                   ------------------------------------------------------
attorneys/signatories                                                        Duly Authorised Attorney/Signatory

                                                                         Name
                                                                             ------------------------------------------------------
</TABLE>



                                                           61