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                                                                     EXHIBIT 4.2




                         UNAFFILIATED SELLER'S AGREEMENT

                            dated as of March 1, 2000

                                  by and among



              PRUDENTIAL SECURITIES SECURED FINANCING CORPORATION,
                                  as Depositor,



                               ABFS 2000-1, INC.,
                             as Unaffiliated Seller



                                       and



                         AMERICAN BUSINESS CREDIT, INC.,
              HOMEAMERICAN CREDIT, INC., D/B/A UPLAND MORTGAGE, and
                    NEW JERSEY MORTGAGE AND INVESTMENT CORP.,
                                 as Originators



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                                TABLE OF CONTENTS

                                                                            Page

Article I DEFINITIONS.........................................................1

  Section 1.01  Definitions ..................................................1

Article II PURCHASE, SALE AND CONVEYANCE OF MORTGAGE LOANS....................3

  Section 2.01  Agreement to Purchase the Initial Mortgage Loans .............3
  Section 2.02  Agreement to Purchase the Subsequent Mortgage Loans ..........3
  Section 2.03  Purchase Price ...............................................4
  Section 2.04  Conveyance of Mortgage Loans; Possession of Mortgage Files ...4
  Section 2.05  Delivery of Mortgage Loan Documents ..........................5
  Section 2.06  Acceptance of Mortgage Loans .................................6
  Section 2.07  Transfer of Mortgage Loans; Assignment of Agreement ..........7
  Section 2.08  Examination of Mortgage Files ................................7
  Section 2.09  Books and Records ............................................8
  Section 2.10  Cost of Delivery and Recordation of Documents ................8

Article III REPRESENTATIONS AND WARRANTIES....................................8

  Section 3.01  Representations and Warranties as to the Originators .........8
  Section 3.02  Representations and Warranties as to the Unaffiliated
                Seller. .....................................................10
  Section 3.03  Representations and Warranties Relating to the Mortgage
                Loans .......................................................13
  Section 3.04  Representations and Warranties of the Depositor .............25
  Section 3.05  Repurchase Obligation for Defective Documentation and for
                Breach of a Representation or Warranty.......................25

Article IV THE UNAFFILIATED SELLER...........................................28

  Section 4.01  Covenants of the Originators and the Unaffiliated Seller ....28
  Section 4.02  Merger or Consolidation .....................................29
  Section 4.03  Costs .......................................................29
  Section 4.04  Indemnification .............................................29

Article V CONDITIONS OF CLOSING..............................................32

  Section 5.01  Conditions of Depositor's Obligations .......................32
  Section 5.02  Conditions of Unaffiliated Seller's Obligations .............34
  Section 5.03  Termination of Depositor's Obligations ......................35

Article VI MISCELLANEOUS.....................................................35

  Section 6.01  Notices .....................................................35
  Section 6.02  Severability of Provisions ..................................35


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  Section 6.03  Agreement of Unaffiliated Seller ............................36
  Section 6.04  Survival ....................................................36
  Section 6.05  Effect of Headings and Table of Contents ....................36
  Section 6.06  Successors and Assigns ......................................36
  Section 6.07  Confirmation of Intent; Grant of Security Interest ..........36
  Section 6.08  Miscellaneous ...............................................37
  Section 6.09  Amendments ..................................................37
  Section 6.10  Third-Party Beneficiaries ...................................38
  Section 6.11  GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
                TRIAL .......................................................38
  Section 6.12  Execution in Counterparts ...................................39

                             SCHEDULES AND EXHIBITS

Schedule I - Mortgage Loan Schedule

Exhibit A - Form of Subsequent Transfer Agreement


                                       ii

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            This UNAFFILIATED SELLER'S AGREEMENT, dated as of March 1, 2000
(this "Agreement"), by and among PRUDENTIAL SECURITIES SECURED FINANCING
CORPORATION, a Delaware corporation, (the "Depositor"), ABFS 2000-1, INC., a
Delaware corporation (the "Unaffiliated Seller"), AMERICAN BUSINESS CREDIT,
INC., a Pennsylvania corporation ("ABC"), HOMEAMERICAN CREDIT, INC. D/B/A UPLAND
MORTGAGE, a Pennsylvania corporation ("Upland") and NEW JERSEY MORTGAGE AND
INVESTMENT CORP., a New Jersey corporation ("NJMIC", and together with ABC and
Upland, the "Originators").

                              W I T N E S S E T H:
                              - - - - - - - - - --

            WHEREAS, Schedule I attached hereto and made a part hereof lists
certain fixed rate business purpose loans and consumer purpose first and second
lien mortgage loans (the "Mortgage Loans") owned by the Originators that the
Originators desire to sell to the Unaffiliated Seller, the Unaffiliated Seller
desires to sell to the Depositor and that the Depositor desires to purchase; and

            WHEREAS, it is the intention of the Originators, the Unaffiliated
Seller and the Depositor that simultaneously with the Originators' conveyance of
the Mortgage Loans to the Unaffiliated Seller and the Unaffiliated Seller's
conveyance of the Mortgage Loans to the Depositor on the Closing Date, (a) the
Depositor shall sell the Mortgage Loans to the ABFS Mortgage Loan Trust 2000-1,
a Delaware statutory business trust (the "Trust") pursuant to a Sale and
Servicing Agreement to be dated as of March 1, 2000 (the "Sale and Servicing
Agreement"), to be entered into by and among the Depositor, as depositor, the
Trust, as issuer, ABC, as servicer (in such capacity, the "Servicer"), Chase
Bank of Texas, N.A., a national banking association, as collateral agent (the
"Collateral Agent"), and The Chase Manhattan Bank, a New York banking
corporation, as indenture trustee (the "Indenture Trustee"), and (b) the Trust
shall issue its Mortgage Backed Notes (the "Notes"), pursuant to an Indenture,
to be dated as of March 1, 2000 (the "Indenture"), by and between the Trust and
the Indenture Trustee, which Notes will be secured by a pledge of the assets of
the Trust.

            NOW, THEREFORE, in consideration of the premises and the mutual
agreements hereinafter set forth, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

            Section 1.01 Definitions. (a) Whenever used herein, the following
words and phrases, unless the context otherwise requires, shall have the
meanings specified in this Article I:

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            "Prospectus" means the Prospectus dated June 23, 1999 relating to
the offering by the Depositor from time to time of its Mortgage Backed Notes
(Issuable in Series) in the form in which it was or will be filed with the
Commission pursuant to Rule 424(b) under the Securities Act with respect to the
offer and sale of the Notes.


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            "Prospectus Supplement" means the Prospectus Supplement dated March
15, 2000, relating to the offering of the Notes in the form in which it was or
will be filed with the Commission pursuant to Rule 424(b) under the Securities
Act with respect to the offer and sale of the Notes.

            "Registration Statement" means that certain registration statement
on Form S-3, as amended (Registration No. 333-75489) relating to the offering by
the Depositor from time to time of its Mortgage Backed Notes (Issuable in
Series) as heretofore declared effective by the Commission.

            "Securities Act" means the Securities Act of 1933, as amended.

            "Termination Event" means the existence of any one or more of the
following conditions:

            (a) a stop order suspending the effectiveness of the Registration
      Statement shall have been issued or a proceeding for that purpose shall
      have been initiated or threatened by the Commission; or

            (b) subsequent to the execution and delivery of this Agreement, a
      downgrading, or public notification of a possible change, without
      indication of direction, shall have occurred in the rating afforded any of
      the debt securities or claims paying ability of any person providing any
      form of credit enhancement for any of the Notes, by any "nationally
      recognized statistical rating organization," as that term is defined by
      the Commission for purposes of Rule 436(g)(2) under the Securities Act; or

            (c) subsequent to the execution and delivery of this Agreement,
      there shall have occurred an adverse change in the condition, financial or
      otherwise, earnings, affairs, regulatory situation or business prospects
      of the Note Insurer or the Unaffiliated Seller reasonably determined by
      the Depositor to be material; or

            (d) subsequent to the date of this Agreement there shall have
      occurred any of the following: (i) a suspension or material limitation in
      trading in securities substantially similar to the Notes; (ii) a general
      moratorium on commercial banking activities in the State of New York
      declared by either Federal or New York State authorities; or (iii) the
      engagement by the United States in hostilities, or the escalation of such
      hostilities, or any calamity or crisis, if the effect of any such event
      specified in this clause (iii) in the reasonable judgment of the Depositor
      makes it impracticable or inadvisable to proceed with the public offering
      or the delivery of the Notes on the terms and in the manner contemplated
      in the Prospectus Supplement.

            (b) Capitalized terms used herein that are not otherwise defined
shall have the respective meanings ascribed thereto in Appendix I to the
Indenture.


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                                   ARTICLE II

                 PURCHASE, SALE AND CONVEYANCE OF MORTGAGE LOANS

            Section 2.01 Agreement to Purchase the Initial Mortgage Loans. (a)
Subject to the terms and conditions of this Agreement, the Originators agree to
sell, and the Unaffiliated Seller agrees to purchase on the Closing Date and
immediately subsequent thereto, the Unaffiliated Seller agrees to sell, and the
Depositor agrees to purchase, the Mortgage Loans having the Cut-Off Date
Aggregate Principal Balance or, in accordance with Section 2.08 hereof, such
other balance as is evidenced by the actual Cut-Off Date Aggregate Principal
Balance of the Mortgage Loans accepted by the Depositor on the Closing Date and
listed in the Mortgage Loan Schedule.

            (b) Subject to Section 2.08 hereof, the Depositor and the
Unaffiliated Seller have agreed upon which of the Unaffiliated Seller's Mortgage
Loans are to be purchased by the Depositor on the Closing Date pursuant to this
Agreement, and the Unaffiliated Seller has prepared a schedule describing the
Mortgage Loans (the "Mortgage Loan Schedule") setting forth all of the Mortgage
Loans to be purchased under this Agreement, which Mortgage Loan Schedule is
attached hereto as Schedule I. The Mortgage Loan Schedule shall conform to the
requirements of the Depositor and to the definition of "Mortgage Loan Schedule"
in Appendix I to the Indenture.

            (c) The closing for the purchase and sale of the Mortgage Loans
shall take place at the offices of Dewey Ballantine LLP, New York, New York, at
10:00 a.m., New York, New York time, on the Closing Date, or such other place
and time as the parties shall agree.

            Section 2.02 Agreement to Purchase the Subsequent Mortgage Loans.
(a) Subject to the satisfaction of the conditions set forth in Section 2.14(b)
of the Indenture, (i) in consideration of the Unaffiliated Seller's delivery on
the related Subsequent Transfer Dates to or upon the order of the Originators of
all or a portion of the balance of funds on deposit in the Pre-Funding Accounts,
the Originators shall on any Subsequent Transfer Date sell, transfer, assign,
set over and convey to the Unaffiliated Seller, without recourse, but subject to
the terms and provisions of this Agreement, all of the right, title and interest
of the Originators in and to the Subsequent Mortgage Loans, including all
principal of, and all interest due on, such Subsequent Mortgage Loans, and all
other assets included or to be included in the Trust Estate and (ii) in
consideration of the Depositor's delivery on the related Subsequent Transfer
Dates to or upon the order of the Unaffiliated Seller of all or a portion of the
balance of funds on deposit in the Pre-Funding Accounts, the Unaffiliated Seller
shall on any Subsequent Transfer Date sell, transfer, assign, set over and
convey to the Depositor, without recourse, but subject to the terms and
provisions of this Agreement, all of the right, title and interest of the
Unaffiliated Seller in and to the Subsequent Mortgage Loans, including all
principal of, and all interest due on, such Subsequent Mortgage Loans, and all
other assets included or to be included in the Trust Estate.

            The amount released from a Pre-Funding Account with respect to a
transfer of Subsequent Mortgage Loans to the related Pool shall be one-hundred
percent (100%) of the Aggregate Principal Balance of such Subsequent Mortgage
Loans so transferred, as of the related Subsequent Cut-Off Date.


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            The obligation of the Depositor to purchase a Subsequent Mortgage
Loan on any Subsequent Transfer Date is subject to the satisfaction of the
requirements set forth in Section 2.14(b) of the Indenture.

            Section 2.03 Purchase Price. (a) On the Closing Date, as
consideration for the Originators' sale of the Initial Mortgage Loans to the
Unaffiliated Seller, the Unaffiliated Seller will deliver to the Originators an
amount in cash equal to the sum of (A) 99.70% and 99.70% of the Original Note
Principal Balance as of the Closing Date of the Class A-1 Notes and Class A-2
Notes, respectively, plus (B) accrued interest on the Original Note Principal
Balance of the Class A-1 Notes at the rate of 7.925% per annum, from (and
including) March 1, 2000 to (but not including) the Closing Date, minus (C) the
Original Pre-Funded Amount and the Original Capitalized Interest Amount for each
Class of Notes, payable by wire transfer of same day funds.

            On the Closing Date, as full consideration for the Unaffiliated
Seller's sale of the Initial Mortgage Loans to the Depositor, the Depositor will
deliver to, or at the direction of, the Unaffiliated Seller (i) an amount in
cash equal to the sum of (A) 99.70% and 99.70% of the Original Note Principal
Balance as of the Closing Date of the Class A-1 Notes and Class A-2 Notes,
respectively, plus (B) accrued interest on the Original Note Principal Balance
of the Class A-1 Notes at the rate of 7.925% per annum, from (and including)
March 1, 2000 to (but not including) the Closing Date, minus (C) the Original
Pre-Funded Amount and the Original Capitalized Interest Amount for each Class of
Notes, payable by wire transfer of same day funds, and (ii) the Trust
Certificates to be issued pursuant to the Trust Agreement.

            (b) On each Subsequent Transfer Date, as full consideration for the
Originators' sale of the Subsequent Mortgage Loans to the Unaffiliated Seller
and the Unaffiliated Seller's sale of the Subsequent Mortgage Loans to the
Depositor, the Depositor will deliver to the Unaffiliated Seller and the
Unaffiliated Seller will deliver to the Originators an amount in cash equal to
the sum of 100% of the Aggregate Principal Balance of the Subsequent Mortgage
Loans of the related Pool as of the related Subsequent Cut-Off Date.

            Section 2.04 Conveyance of Mortgage Loans; Possession of Mortgage
Files. (a) On the Closing Date and on each Subsequent Transfer Date, the
Originators shall sell, transfer, assign, set over and convey to the
Unaffiliated Seller, without recourse, but subject to the terms of this
Agreement, all right, title and interest in and to the applicable Mortgage
Loans, including all principal outstanding as of, and all interest due after,
the related Cut-Off Date, the Insurance Policies relating to each such Mortgage
Loan and all right, title and interest in and to the proceeds of such Insurance
Policies and all of its rights under this Agreement with respect to the Mortgage
Loans from and after the related Cut-Off Date or the Subsequent Cut-Off Date, as
applicable, and the Unaffiliated Seller shall sell, transfer, assign, set over
and convey to the Depositor, without recourse, but subject to the terms of this
Agreement, all right, title and interest in and to the applicable Mortgage
Loans, including all principal outstanding as of, and all interest due after,
the related Cut-Off Date, the Insurance Policies relating to each such Mortgage
Loan, all right, title and interest in and to the proceeds of such Insurance
Policies and all of its rights under this Agreement with respect to the Mortgage
Loans from and after the related Cut-Off Date or the Subsequent Cut-Off Date, as
applicable. Upon payment of the purchase price for such Mortgage Loans as
provided in Section 2.03 of this Agreement, the Originators and the Unaffiliated
Seller shall have hereby, and shall be deemed to have, sold, transferred,
assigned,


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set over and conveyed to the Depositor such Mortgage Loans, the Insurance
Policies relating to each such Mortgage Loan, all right, title and interest in
and to the proceeds of such Insurance Policies and all of its rights under this
Agreement with respect to the Mortgage Loans from and after the related Cut-Off
Date or the Subsequent Cut-Off Date, as applicable.

            (b) Upon the sale of such Mortgage Loans, the ownership of each
related Mortgage Note, each related Mortgage and the contents of the related
Mortgage File shall immediately vest in the Depositor and the ownership of all
related records and documents with respect to each Mortgage Loan prepared by or
which come into the possession of the Originators or the Unaffiliated Seller
shall immediately vest in the Depositor. The contents of any Indenture Trustee's
Mortgage File in the possession of the Originators or the Unaffiliated Seller at
any time after such sale, and any principal collected and interest due on the
Mortgage Loans after the related Cut-Off Date and received by the Originators or
the Unaffiliated Seller, shall be held in trust by the Originators or the
Unaffiliated Seller for the benefit of the Depositor as the owner thereof, and
shall be promptly delivered by the Originators or the Unaffiliated Seller to or
upon the order of the Depositor.

            (c) Pursuant to the Sale and Servicing Agreement, the Depositor
shall, on the Closing Date, assign all of its right, title and interest in and
to the Initial Mortgage Loans to the Trust. Pursuant to the Indenture, the Trust
shall, on the Closing Date, pledge all of its right, title and interest in and
to the Initial Mortgage Loans to the Indenture Trustee, for the benefit of the
Noteholders and the Note Insurer.

            Section 2.05 Delivery of Mortgage Loan Documents. (a) On or prior to
the Closing Date or Subsequent Transfer Date, as applicable, the related
Originator shall deliver to the Unaffiliated Seller, and the Unaffiliated Seller
shall deliver to the Collateral Agent, on behalf of the Indenture Trustee (as
pledgee of the Trust pursuant to the Indenture, the Trust being the assignee of
the Depositor pursuant to the Sale and Servicing Agreement), each of the
documents for each applicable Mortgage Loan in accordance with the provisions of
Section 2.05 of the Sale and Servicing Agreement.

            (b) As promptly as practicable, but in any event within thirty (30)
days from the Closing Date or the Subsequent Transfer Date, as applicable, the
Unaffiliated Seller shall promptly submit, or cause to be submitted by the
related Originator, for recording in the appropriate public office for real
property records, each assignment referred to in Section 2.05(a)(iv) of the Sale
and Servicing Agreement. The Collateral Agent, on behalf of the Indenture
Trustee, shall be required to retain a copy of each assignment submitted for
recording. In the event that any such assignment is lost or returned unrecorded
because of a defect therein, the Unaffiliated Seller or such Originator shall
promptly prepare a substitute assignment or cure such defect, as the case may
be, and thereafter the Unaffiliated Seller or such Originator shall submit each
such assignment for recording.

            (c) The Unaffiliated Seller or the related Originator shall, within
five (5) Business Days after the receipt thereof, deliver or cause to be
delivered to the Collateral Agent, on behalf of the Indenture Trustee (as
pledgee of the Trust pursuant to the Indenture, the Trust being the assignee of
the Depositor pursuant to the Sale and Servicing Agreement): (i) the original
recorded Mortgage and related power of attorney, if any, in those instances
where a copy


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thereof certified by the related Originator was delivered to the Collateral
Agent, on behalf of the Indenture Trustee, pursuant to Section 2.05 of the Sale
and Servicing Agreement; (ii) the original recorded assignment of Mortgage from
the related Originator to the Indenture Trustee, which, together with any
intervening assignments of Mortgage, evidences a complete chain of assignment
from the originator of the Mortgage Loan to the Indenture Trustee in those
instances where copies of such assignments certified by the related Originator
were delivered to the Collateral Agent, on behalf of the Indenture Trustee,
pursuant to Section 2.05 of the Sale and Servicing Agreement; and (iii) the
title insurance policy or title opinion required in Section 2.05(a)(vi) of the
Sale and Servicing Agreement.

            Notwithstanding anything to the contrary contained in this Section
2.05, in those instances where the public recording office retains the original
Mortgage, power of attorney, if any, assignment or assignment of Mortgage after
it has been recorded or such original has been lost, the Unaffiliated Seller or
the related Originator shall be deemed to have satisfied its obligations
hereunder upon delivery to the Collateral Agent, on behalf of the Indenture
Trustee, of a copy of such Mortgage, power of attorney, if any, assignment or
assignment of Mortgage certified by the public recording office to be a true
copy of the recorded original thereof.

            From time to time the Unaffiliated Seller or the related Originator
may forward or cause to be forwarded to the Collateral Agent, on behalf of the
Indenture Trustee, additional original documents evidencing an assumption or
modification of a Mortgage Loan.

            (d) All original documents relating to the Mortgage Loans that are
not delivered to the Collateral Agent, on behalf of the Indenture Trustee, as
permitted by Section 2.05(a) hereof are and shall be held by the Servicer, the
Unaffiliated Seller or the related Originator in trust for the benefit of the
Indenture Trustee, on behalf of the Noteholders and the Note Insurer. In the
event that any such original document is required pursuant to the terms of this
Section 2.05 to be a part of an Indenture Trustee's Mortgage File, such document
shall be delivered promptly to the Collateral Agent, on behalf of the Indenture
Trustee. From and after the sale of the Mortgage Loans to the Depositor pursuant
hereto, to the extent that the Unaffiliated Seller or the related Originator
retains legal title of record to any Mortgage Loans prior to the vesting of
legal title in the Indenture Trustee, such title shall be retained in trust for
the Trust as the owner of the Mortgage Loans, as the Depositor's assignee, and
the Indenture Trustee, as the Trust's pledgee.

            Section 2.06 Acceptance of Mortgage Loans. (a) To evidence the
transfer of the Mortgage Loans and related Mortgage Files to the Collateral
Agent, on behalf of the Indenture Trustee, the Collateral Agent shall deliver
the acknowledgement of receipt, the Initial Certification and the Final
Certification required to be delivered pursuant to Section 2.06(b) of the Sale
and Servicing Agreement.

            (b) The Sale and Servicing Agreement provides that, if the
Collateral Agent during the process of reviewing the Indenture Trustee's
Mortgage Files, finds any document constituting a part of an Indenture Trustee's
Mortgage File which is not executed, has not been received, is unrelated to the
Mortgage Loan identified in the Mortgage Loan Schedule, or does not conform to
the requirements of Section 2.05 of the Sale and Servicing Agreement or the
description thereof as set forth in the Mortgage Loan Schedule, the Collateral
Agent shall


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promptly so notify the Servicer, the Unaffiliated Seller, the Indenture Trustee,
the related Originator and the Note Insurer. The Unaffiliated Seller and the
Originators agree that in performing any such review, the Collateral Agent may
conclusively rely on the Unaffiliated Seller and the Originators as to the
purported genuineness of any such document and any signature thereon. Each of
the Originators and the Unaffiliated Seller agrees to use reasonable efforts to
remedy a material defect in a document constituting part of an Indenture
Trustee's Mortgage File of which it is notified. If, however, within sixty (60)
days after such notice neither the Unaffiliated Seller nor any Originator has
remedied the defect and the defect materially and adversely affects the interest
of the Noteholders in the related Mortgage Loan or the interests of the Note
Insurer, then the Unaffiliated Seller and the Originators shall be obligated to
either substitute in lieu of such Mortgage Loan a Qualified Substitute Mortgage
Loan or purchase such Mortgage Loan in the manner and subject to the conditions
set forth in Section 3.05 hereof.

            (c) The failure of the Collateral Agent, the Indenture Trustee or
the Note Insurer to give any notice contemplated herein within the time periods
specified above shall not affect or relieve the Unaffiliated Seller's or the
Originators obligation to repurchase for any Mortgage Loan pursuant to this
Section 2.06 or Section 3.05 of this Agreement.

            Section 2.07 Transfer of Mortgage Loans; Assignment of Agreement.
The Originators and the Unaffiliated Seller each hereby acknowledges and agrees
that the Depositor or the Trust may assign its interest under this Agreement to
the Indenture Trustee as may be required to effect the purposes of the Indenture
and the Sale and Servicing Agreement, without further notice to, or consent of,
the Unaffiliated Seller or the Originators, and the Indenture Trustee shall
succeed to such of the rights and obligations of the Depositor and the Trust
hereunder as shall be so assigned. The Depositor shall, pursuant to the Sale and
Servicing Agreement, assign all of its right, title and interest in and to the
Mortgage Loans and its right to exercise the remedies created by Sections 2.06
and 3.05 hereof for breaches of the representations, warranties, agreements and
covenants of the Unaffiliated Seller or the Originators contained in Sections
2.05, 2.06, 3.02 and 3.03 hereof to the Trust, and the Trust shall, pursuant to
the Indenture, pledge such right, title and interest to the Indenture Trustee,
for the benefit of the Noteholders and the Note Insurer. Each of the Originators
and the Unaffiliated Seller agrees that, upon such assignment to the Trust and
pledge to the Indenture Trustee, such representations, warranties, agreements
and covenants will run to and be for the benefit of the Indenture Trustee and
the Indenture Trustee may enforce, without joinder of the Depositor or the
Trust, the repurchase obligations of the Unaffiliated Seller and the Originators
set forth herein with respect to breaches of such representations, warranties,
agreements and covenants.

            Section 2.08 Examination of Mortgage Files. Prior to the Closing
Date and each Subsequent Transfer Date, as applicable, the Unaffiliated Seller
shall make the Mortgage Files available to the Depositor or its designee for
examination at the Unaffiliated Seller's offices or at such other place as the
Unaffiliated Seller shall reasonably specify. Such examination may be made by
the Depositor or its designee at any time on or before the Closing Date or
Subsequent Transfer Date, as the case may be. If the Depositor or its designee
makes such examination prior to the Closing Date or Subsequent Transfer Date, as
the case may be, and identifies any Mortgage Loans that do not conform to the
requirements of the Depositor as described in this Agreement, such Mortgage
Loans shall be deleted from the Mortgage Loan


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Schedule and may be replaced, prior to the Closing Date or Subsequent Transfer
Date, as the case may be, by substitute Mortgage Loans acceptable to the
Depositor. The Depositor may, at its option and without notice to the
Unaffiliated Seller, purchase all or part of the Mortgage Loans without
conducting any partial or complete examination. The fact that the Depositor, the
Collateral Agent or the Indenture Trustee has conducted or has failed to conduct
any partial or complete examination of the Mortgage Files shall not affect the
rights of the Depositor or the Indenture Trustee to demand repurchase or other
relief as provided in this Agreement.

            Section 2.09 Books and Records. The transfer of each Mortgage Loan
shall be reflected on each of the Originators' and the Unaffiliated Seller's
accounting and other records, balance sheet and other financial statements as a
sale of assets by the Originators to the Unaffiliated Seller, by the
Unaffiliated Seller to the Depositor and by the Depositor to the Trust;
provided, that the Unaffiliated Seller's tax returns shall not reflect the
transfer from the Unaffiliated Seller to the Depositor and from the Depositor to
the Trust as a sale of the Mortgage Loans. Each of the Originators and the
Unaffiliated Seller shall be responsible for maintaining, and shall maintain, a
complete set of books and records for each Mortgage Loan which shall be clearly
marked to reflect the ownership of each Mortgage Loan by the Trust, and the
pledge of each Mortgage Loan by the Trust to the Indenture Trustee, for the
benefit of the Noteholders and the Note Insurer.

            Section 2.10 Cost of Delivery and Recordation of Documents. The
costs relating to the delivery and recordation of the documents in connection
with the Mortgage Loans as specified in this Article II and in Article II of the
Sale and Servicing Agreement shall be borne by the Unaffiliated Seller or the
Originators.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

            Section 3.01 Representations and Warranties as to the Originators.
Each of the Originators hereby represents and warrants to the Unaffiliated
Seller and the Depositor, as of the Closing Date, that:

            (a) The Originator is a corporation duly organized, validly existing
      and in good standing under the laws of (i) with respect to ABC and Upland,
      the State of Pennsylvania, or (ii) with respect to NJMIC, the State of New
      Jersey, and has all licenses necessary to carry on its business as now
      being conducted and is licensed, qualified and in good standing in each
      state where a Mortgaged Property is located if the laws of such state
      require licensing or qualification in order to conduct business of the
      type conducted by the Originator and to perform its obligations as the
      Originator hereunder, and in any event the Originator is in compliance
      with the laws of any such state to the extent necessary to ensure the
      enforceability of the related Mortgage Loan; the Originator has the full
      power and authority, corporate and otherwise, to execute and deliver this
      Agreement and to perform in accordance herewith; the execution, delivery
      and performance of this Agreement (including all instruments of transfer
      to be delivered pursuant to this Agreement) by the Originator and the
      consummation of the transactions contemplated hereby have been duly and
      validly authorized; this Agreement evidences


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      the valid, binding and enforceable obligation of the Originator; and all
      requisite corporate action has been taken by the Originator to make this
      Agreement valid and binding upon the Originator in accordance with its
      terms;

            (b) No consent, approval, authorization or order of any court or
      governmental agency or body is required for the execution, delivery and
      performance by the Originator of, or compliance by the Originator with,
      this Agreement or the sale of the Mortgage Loans pursuant to the terms of
      this Agreement or the consummation of the transactions contemplated by
      this Agreement, or if required, such approval has been obtained prior to
      the Closing Date;

            (c) Neither the execution and delivery of this Agreement, the
      acquisition nor origination of the Mortgage Loans by the Originator or the
      transactions contemplated hereby, nor the fulfillment of or compliance
      with the terms and conditions of this Agreement, has or will conflict with
      or result in a breach of any of the terms, conditions or provisions of the
      Originator's charter or by-laws or any legal restriction or any agreement
      or instrument to which the Originator is now a party or by which it is
      bound or to which its property is subject, or constitute a default or
      result in an acceleration under any of the foregoing, or result in the
      violation of any law, rule, regulation, order, judgment or decree to which
      the Originator or its property is subject, or impair the ability of the
      Indenture Trustee (or the Servicer as the agent of the Indenture Trustee)
      to realize on the Mortgage Loans, or impair the value of the Mortgage
      Loans;

            (d) Neither this Agreement nor the information contained in the
      Prospectus Supplement (other than the information under the caption
      "Underwriting") nor any statement, report or other document prepared by
      the Originator and furnished or to be furnished pursuant to this Agreement
      or in connection with the transactions contemplated hereby contains any
      untrue statement or alleged untrue statement of any material fact or omits
      to state a material fact necessary to make the statements contained herein
      or therein, in light of the circumstances under which they were made, not
      misleading;

            (e) There is no action, suit, proceeding or investigation pending
      or, to the knowledge of the Originator, threatened before a court,
      administrative agency or government tribunal against the Originator which,
      either in any one instance or in the aggregate, may result in any material
      adverse change in the business, operations, financial condition,
      properties or assets of the Originator, or in any material impairment of
      the right or ability of the Originator to carry on its business
      substantially as now conducted, or in any material liability on the part
      of the Originator, or which would draw into question the validity of this
      Agreement, the Mortgage Loans, or of any action taken or to be taken in
      connection with the obligations of the Originator contemplated herein, or
      which would impair materially the ability of the Originator to perform
      under the terms of this Agreement or that will prohibit its entering into
      this Agreement or the consummation of any of the transactions contemplated
      hereby;

            (f) The Originator is not in violation of or in default with respect
      to, and the execution and delivery of this Agreement by the Originator and
      its performance of and compliance with the terms hereof will not
      constitute a violation or default with respect to,


                                       9

<PAGE>


      any order or decree of any court or any order, regulation or demand of any
      federal, state, municipal or governmental agency, which violation or
      default might have consequences that would materially and adversely affect
      the condition (financial or other) or operations of the Originator or its
      properties or might have consequences that would materially and adversely
      affect its performance hereunder or under any subservicing agreement;

            (g) Upon the receipt of each Mortgage File by the Depositor (or its
      assignee) under this Agreement, the Depositor (or its assignee) will have
      good title to each related Mortgage Loan and such other items comprising
      the corpus of the Trust Estate free and clear of any lien created by the
      Originator (other than liens which will be simultaneously released);

            (h) The consummation of the transactions contemplated by this
      Agreement are in the ordinary course of business of the Originator, and
      the transfer, assignment and conveyance of the Mortgage Notes and the
      Mortgages by the Originator pursuant to this Agreement are not subject to
      the bulk transfer or any similar statutory provisions in effect in any
      applicable jurisdiction;

            (i) With respect to any Mortgage Loan purchased by the Originator,
      the Originator acquired title to the Mortgage Loan in good faith, without
      notice of any adverse claim;

            (j) The Originator does not believe, nor does it have any reason or
      cause to believe, that it cannot perform each and every covenant contained
      in this Agreement. The Originator is solvent and the sale of the Mortgage
      Loans by the Originator pursuant to the terms of this Agreement will not
      cause the Originator to become insolvent. The sale of the Mortgage Loans
      by the Originator pursuant to the terms of this Agreement was not
      undertaken with the intent to hinder, delay or defraud any of the
      Originator's creditors;

            (k) The Mortgage Loans are not intentionally selected in a manner so
      as to affect adversely the interests of the Depositor or of any transferee
      of the Depositor (including the Trust and the Indenture Trustee);

            (l) The Originator has determined that it will treat the disposition
      of the Mortgage Loans pursuant to this Agreement as a sale for accounting
      and tax purposes;

            (m) The Originator has not dealt with any broker or agent or anyone
      else that may be entitled to any commission or compensation in connection
      with the sale of the Mortgage Loans to the Depositor other than to the
      Depositor or an affiliate thereof; and

            (n) The consideration received by the Originator upon the sale of
      the Mortgage Loans under this Agreement constitutes fair consideration and
      reasonably equivalent value for the Mortgage Loans.

            Section 3.02 Representations and Warranties as to the Unaffiliated
Seller. The Unaffiliated Seller hereby represents and warrants to the Depositor,
as of the Closing Date, that:


                                       10

<PAGE>


            (a) The Unaffiliated Seller is a corporation duly organized, validly
      existing and in good standing under the laws of the State of Delaware and
      has all licenses necessary to carry on its business as now being conducted
      and is licensed, qualified and in good standing in each state where a
      Mortgaged Property is located if the laws of such state require licensing
      or qualification in order to conduct business of the type conducted by the
      Unaffiliated Seller and to perform its obligations as the Unaffiliated
      Seller hereunder, and in any event the Unaffiliated Seller is in
      compliance with the laws of any such state to the extent necessary to
      ensure the enforceability of the related Mortgage Loan; the Unaffiliated
      Seller has the full power and authority, corporate and otherwise, to
      execute and deliver this Agreement and to perform in accordance herewith;
      the execution, delivery and performance of this Agreement (including all
      instruments of transfer to be delivered pursuant to this Agreement) by the
      Unaffiliated Seller and the consummation of the transactions contemplated
      hereby have been duly and validly authorized; this Agreement evidences the
      valid, binding and enforceable obligation of the Unaffiliated Seller; and
      all requisite corporate action has been taken by the Unaffiliated Seller
      to make this Agreement valid and binding upon the Unaffiliated Seller in
      accordance with its terms;

            (b) No consent, approval, authorization or order of any court or
      governmental agency or body is required for the execution, delivery and
      performance by the Unaffiliated Seller of or compliance by the
      Unaffiliated Seller with this Agreement or the sale of the Mortgage Loans
      pursuant to the terms of this Agreement or the consummation of the
      transactions contemplated by this Agreement, or if required, such approval
      has been obtained prior to the Closing Date;

            (c) Neither the execution and delivery of this Agreement, the
      acquisition nor origination of the Mortgage Loans by the Unaffiliated
      Seller nor the transactions contemplated hereby, nor the fulfillment of or
      compliance with the terms and conditions of this Agreement, has or will
      conflict with or result in a breach of any of the terms, conditions or
      provisions of the Unaffiliated Seller's charter or by-laws or any legal
      restriction or any agreement or instrument to which the Unaffiliated
      Seller is now a party or by which it is bound or to which its property is
      subject, or constitute a default or result in an acceleration under any of
      the foregoing, or result in the violation of any law, rule, regulation,
      order, judgment or decree to which the Unaffiliated Seller or its property
      is subject, or impair the ability of the Indenture Trustee (or the
      Servicer as the agent of the Indenture Trustee) to realize on the Mortgage
      Loans, or impair the value of the Mortgage Loans;

            (d) Neither this Agreement nor the information contained in the
      Prospectus Supplement (other than the information under the caption
      "Underwriting") nor any statement, report or other document prepared by
      the Unaffiliated Seller and furnished or to be furnished pursuant to this
      Agreement or in connection with the transactions contemplated hereby
      contains any untrue statement or alleged untrue statement of any material
      fact or omits to state a material fact necessary to make the statements
      contained herein or therein, in light of the circumstances under which
      they were made, not misleading;


                                       11

<PAGE>


            (e) There is no action, suit, proceeding or investigation pending
      nor, to the knowledge of the Unaffiliated Seller, threatened before a
      court, administrative agency or government tribunal against the
      Unaffiliated Seller which, either in any one instance or in the aggregate,
      may result in any material adverse change in the business, operations,
      financial condition, properties or assets of the Unaffiliated Seller, or
      in any material impairment of the right or ability of the Unaffiliated
      Seller to carry on its business substantially as now conducted, or in any
      material liability on the part of the Unaffiliated Seller, or which would
      draw into question the validity of this Agreement, the Mortgage Loans, or
      of any action taken or to be taken in connection with the obligations of
      the Unaffiliated Seller contemplated herein, or which would impair
      materially the ability of the Unaffiliated Seller to perform under the
      terms of this Agreement or that will prohibit its entering into this
      Agreement or the consummation of any of the transactions contemplated
      hereby;

            (f) The Unaffiliated Seller is not in violation of or in default
      with respect to, and the execution and delivery of this Agreement by the
      Unaffiliated Seller and its performance of and compliance with the terms
      hereof will not constitute a violation or default with respect to, any
      order or decree of any court or any order, regulation or demand of any
      federal, state, municipal or governmental agency, which violation or
      default might have consequences that would materially and adversely affect
      the condition (financial or other) or operations of the Unaffiliated
      Seller or its properties or might have consequences that would materially
      and adversely affect its performance hereunder or under any subservicing
      agreement;

            (g) Upon the receipt of each Mortgage File by the Depositor (or its
      assignee) under this Agreement, the Depositor (or its assignee) will have
      good title to each related Mortgage Loan and such other items comprising
      the corpus of the Trust Estate free and clear of any lien created by the
      Unaffiliated Seller (other than liens which will be simultaneously
      released);

            (h) The consummation of the transactions contemplated by this
      Agreement are in the ordinary course of business of the Unaffiliated
      Seller, and the transfer, assignment and conveyance of the Mortgage Notes
      and the Mortgages by the Unaffiliated Seller pursuant to this Agreement
      are not subject to the bulk transfer or any similar statutory provisions
      in effect in any applicable jurisdiction;

            (i) With respect to any Mortgage Loan purchased by the Unaffiliated
      Seller, the Unaffiliated Seller acquired title to the Mortgage Loan in
      good faith, without notice of any adverse claim;

            (j) The Unaffiliated Seller does not believe, nor does it have any
      reason or cause to believe, that it cannot perform each and every covenant
      contained in this Agreement. The Unaffiliated Seller is solvent and the
      sale of the Mortgage Loans by the Unaffiliated Seller pursuant to the
      terms of this Agreement will not cause the Unaffiliated Seller to become
      insolvent. The sale of the Mortgage Loans by the Unaffiliated Seller
      pursuant to the terms of this Agreement was not undertaken with the intent
      to hinder, delay or defraud any of the Unaffiliated Seller's creditors;


                                       12

<PAGE>


            (k) The Mortgage Loans are not intentionally selected in a manner so
      as to affect adversely the interests of the Depositor or of any transferee
      of the Depositor (including the Trust and the Indenture Trustee);

            (l) The Unaffiliated Seller has determined that it will treat the
      disposition of the Mortgage Loans pursuant to this Agreement as a sale for
      accounting purposes;

            (m) The Unaffiliated Seller has not dealt with any broker or agent
      or anyone else that may be entitled to any commission or compensation in
      connection with the sale of the Mortgage Loans to the Depositor other than
      to the Depositor or an affiliate thereof; and

            (n) The consideration received by the Unaffiliated Seller upon the
      sale of the Mortgage Loans under this Agreement constitutes fair
      consideration and reasonably equivalent value for the Mortgage Loans.

            Section 3.03 Representations and Warranties Relating to the Mortgage
Loans. The Originators represent and warrant to the Unaffiliated Seller and the
Unaffiliated Seller represents to the Depositor that, as of the Closing Date, as
to each Initial Mortgage Loan, and as of the Subsequent Transfer Date, as to
each Subsequent Mortgage Loan, immediately prior to the sale and transfer of
such Mortgage Loan by the Unaffiliated Seller to the Depositor:

            (a) The information set forth in each Mortgage Loan Schedule is
      complete, true and correct;

            (b) The information to be provided by the Unaffiliated Seller or the
      Originators, directly or indirectly, to the Depositor in connection with a
      Subsequent Mortgage Loan will be true and correct in all material respects
      at the date or dates respecting which such information is furnished;

            (c) Each Mortgage is a valid first or second lien on a fee simple
      (or its equivalent under applicable state law) estate in the real property
      securing the amount owed by the Mortgagor under the Mortgage Note subject
      only to (i) the lien of current real property taxes and assessments which
      are not delinquent, (ii) with respect to any Mortgage Loan identified on
      the Mortgage Loan Schedule as secured by a second lien, the related first
      mortgage loan, (iii) covenants, conditions and restrictions, rights of
      way, easements and other matters of public record as of the date of
      recording of such Mortgage, such exceptions appearing of record being
      acceptable to mortgage lending institutions generally in the area wherein
      the property subject to the Mortgage is located or specifically reflected
      in the appraisal obtained in connection with the origination of the
      related Mortgage Loan obtained by the Unaffiliated Seller and (iv) other
      matters to which like properties are commonly subject which do not
      materially interfere with the benefits of the security intended to be
      provided by such Mortgage;

            (d) Immediately prior to the transfer and assignment by the related
      Originator to the Unaffiliated Seller and by the Unaffiliated Seller to
      the Depositor, the Unaffiliated Seller or such Originator, as applicable,
      had good title to, and was the sole owner of each Mortgage Loan, free of
      any interest of any other Person, and the Unaffiliated Seller or


                                       13

<PAGE>


      such Originator has transferred all right, title and interest in each
      Mortgage Loan to the Depositor or the Unaffiliated Seller, as applicable;

            (e) As of the applicable Cut-Off Date, no payment of principal or
      interest on or in respect of any Mortgage Loan remains unpaid for thirty
      (30) or more days past the date the same was due in accordance with the
      related Mortgage Note without regard to applicable grace periods;

            (f) As of the Initial Cut-Off Date, no Mortgage Loan has a Mortgage
      Interest Rate less than 7.59% per annum in Pool I, 9.10% per annum in Pool
      II and the weighted average Mortgage Interest Rate of the Mortgage Loans
      is 11.78% in Pool I and 12.64% in Pool II;

            (g) At origination, no Mortgage Loan in Pool I or Pool II had an
      original term to maturity of greater than 360 months;

            (h) As of the Initial Cut-Off Date, the weighted average remaining
      term to maturity of the Mortgage Loans is 248.50 months for the Mortgage
      Loans in Pool I and 233.97 months for the Mortgage Loans in Pool II;

            (i) To the best knowledge of the Unaffiliated Seller and each of the
      Originators, there is no mechanics' lien or claim for work, labor or
      material (and no rights are outstanding that under law could give rise to
      such lien) affecting the premises subject to any Mortgage which is or may
      be a lien prior to, or equal or coordinate with, the lien of such
      Mortgage, except those which are insured against by the title insurance
      policy referred to in (ff) below;

            (j) To the best knowledge of the Unaffiliated Seller and each of the
      Originators, there is no delinquent tax or assessment lien against any
      Mortgaged Property;

            (k) Such Mortgage Loan, the Mortgage, and the Mortgage Note,
      including, without limitation, the obligation of the Mortgagor to pay the
      unpaid principal of and interest on the Mortgage Note, are each not
      subject to any right of rescission (or any such rescission right has
      expired in accordance with applicable law), set-off, counterclaim, or
      defense, including the defense of usury, nor will the operation of any of
      the terms of the Mortgage Note or the Mortgage, or the exercise of any
      right thereunder, render either the Mortgage Note or the Mortgage
      unenforceable, in whole or in part, or subject to any right of rescission,
      set-off, counterclaim, or defense, including the defense of usury, and no
      such right of rescission, set-off, counterclaim, or defense has been
      asserted with respect thereto;

            (l) To the best knowledge of the Unaffiliated Seller and each of the
      Originators, the Mortgaged Property is free of material damage and is in
      good repair, and there is no pending or threatened proceeding for the
      total or partial condemnation of the Mortgaged Property;


                                       14

<PAGE>


            (m) Neither the Originators nor the Unaffiliated Seller has received
      a notice of default of any first mortgage loan secured by the Mortgaged
      Property which has not been cured by a party other than the Unaffiliated
      Seller;

            (n) Each Mortgage Note and Mortgage are in substantially the forms
      previously provided to the Depositor and the Indenture Trustee on behalf
      of the Unaffiliated Seller;

            (o) No Mortgage Loan had, at the date of origination, a CLTV in
      excess of 100% for Pool I and 100% for Pool II, and the weighted average
      CLTV of all Mortgage Loans as of the Initial Cut-Off Date is approximately
      77.76% in Pool I and 76.52% for Pool II;

            (p) The Mortgage Loan was not originated in a program in which the
      amount of documentation in the underwriting process was limited in
      comparison to the originator's normal documentation requirements;

            (q) No more than the following percentages of the Mortgage Loans by
      Cut-Off Date Aggregate Principal Balance are secured by Mortgaged
      Properties located in the following states:


                                       15

<PAGE>



                          Pool I
        -------------------------------------------
                                   Percentage of
                                   Cut-Off Date
                                     Aggregate
        State                    Principal Balance
        ---------------------    ------------------

        Alabama                         0.09
        Arizona                         0.02
        Arkansas                        0.09
        Colorado                        0.08
        Connecticut                     1.71
        Delaware                        1.32
        Florida                        10.11
        Georgia                         3.62
        Illinois                        4.87
        Indiana                         1.40
        Kansas                          0.10
        Kentucky                        0.57
        Louisiana                       0.09
        Massachusetts                   3.10
        Maryland                        2.30
        Michigan                        1.61
        Minnesota                       0.01
        Mississippi                     0.11
        Missouri                        0.64
        New Hampshire                   0.31
        New Jersey                     13.97
        New York                       28.77
        North Carolina                  2.56
        North Dakota                    0.04
        Ohio                            4.51
        Oklahoma                        0.04
        Oregon                          0.11
        Pennsylvania                   10.89
        Rhode Island                    0.51
        South Carolina                  1.51
        Tennessee                       1.67
        Vermont                         0.19
        Virginia                        2.63
        Washington                      0.09
        West Virginia                   0.11
        Wisconsin                       0.14
                                 -----------------
                                      100.00%
                                 =================




                                       16

<PAGE>



                          Pool II
         ------------------------------------------
                                   Percentage of
                                   Cut-Off Date
                                     Aggregate
         State                   Principal Balance
         --------------------    ------------------

         Connecticut                    6.96
         Florida                        3.68
         Georgia                        4.35
         Illinois                       7.59
         Indiana                        1.18
         Massachusetts                  2.87
         Maryland                       0.54
         Michigan                       2.53
         New Jersey                    13.23
         New York                      34.27
         North Carolina                 1.89
         Ohio                           4.90
         Pennsylvania                   6.46
         South Carolina                 1.12
         Tennessee                      0.27
         Virginia                       5.84
         Vermont                        0.51
         Wisconsin                      1.84
                                 -----------------
                                      100.00%
                                 =================




                                       17

<PAGE>


            (r) The Mortgage Loans were not selected by the Unaffiliated Seller
      or the Originators for sale hereunder or inclusion in the Trust Estate on
      any basis adverse to the Trust Estate relative to the portfolio of similar
      mortgage loans of the Unaffiliated Seller or the Originators;

            (s) None of the Mortgage Loans constitutes a lien on leasehold
      interests;

            (t) Each Mortgage contains customary and enforceable provisions
      which render the rights and remedies of the holder thereof adequate for
      the realization against the related Mortgaged Property of the benefits of
      the security including (A) in the case of a Mortgage designated as a deed
      of trust, by trustee's sale and (B) otherwise by judicial foreclosure. To
      the best of the Unaffiliated Seller's and the Originators' knowledge,
      there is no homestead or other exemption available to the related
      Mortgagor which would materially interfere with the right to sell the
      related Mortgaged Property at a trustee's sale or the right to foreclose
      the related Mortgage. The Mortgage contains customary and enforceable
      provisions for the acceleration of the payment of the Principal Balance of
      such Mortgage Loan in the event all or any part of the related Mortgaged
      Property is sold or otherwise transferred without the prior written
      consent of the holder thereof;

            (u) The proceeds of such Mortgage Loan have been fully disbursed,
      including reserves set aside by the Unaffiliated Seller or the
      Originators, there is no requirement for, and neither the Unaffiliated
      Seller nor the Originators shall make any, future advances thereunder. Any
      future advances made prior to the applicable Cut-Off Date have been
      consolidated with the principal balance secured by the Mortgage, and such
      principal balance, as consolidated, bears a single interest rate and
      single repayment term reflected on the applicable Mortgage Loan Schedule.
      The Principal Balance as of the applicable Cut-Off Date does not exceed
      the original principal amount of such Mortgage Loan. Except with respect
      to no more than $150,000 of escrow funds, any and all requirements as to
      completion of any on-site or off-site improvements and as to disbursements
      of any escrow funds therefor have been complied with. All costs, fees, and
      expenses incurred in making, or recording such Mortgage Loan have been
      paid;

            (v) All Mortgage Loans were originated in compliance with the
      Originators' Underwriting Guidelines;

            (w) The terms of the Mortgage and the Mortgage Note have not been
      impaired, waived, altered, or modified in any respect, except by a written
      instrument which has been recorded, if necessary, to protect the interest
      of the Indenture Trustee and which has been delivered to the Collateral
      Agent, on behalf of the Indenture Trustee. The substance of any such
      alteration or modification is or as to Subsequent Mortgage Loans will be
      reflected on the applicable Mortgage Loan Schedule and, to the extent
      necessary, has been or will be approved by (i) the insurer under the
      applicable mortgage title insurance policy, and (ii) the insurer under any
      other insurance policy required hereunder for such Mortgage Loan where
      such insurance policy requires approval and the failure to procure
      approval would impair coverage under such policy;


                                       18

<PAGE>


            (x) No instrument of release, waiver, alteration, or modification
      has been executed in connection with such Mortgage Loan, and no Mortgagor
      has been released, in whole or in part, except in connection with an
      assumption agreement which has been approved by the insurer under any
      insurance policy required hereunder for such Mortgage Loan where such
      policy requires approval and the failure to procure approval would impair
      coverage under such policy, and which is part of the Mortgage File and has
      been delivered to the Collateral Agent, on behalf of the Indenture
      Trustee, and the terms of which are reflected in the applicable Mortgage
      Loan Schedule;

            (y) Other than delinquencies described in clause (e) above, there is
      no default, breach, violation, or event of acceleration existing under the
      Mortgage or the Mortgage Note and no event which, with the passage of time
      or with notice and the expiration of any grace or cure period, would
      constitute such a default, breach, violation or event of acceleration, and
      neither the Originators nor the Unaffiliated Seller has waived any such
      default, breach, violation or event of acceleration. All taxes,
      governmental assessments (including assessments payable in future
      installments), insurance premiums, water, sewer, and municipal charges,
      leaseholder payments, or ground rents which previously became due and
      owing in respect of or affecting the related Mortgaged Property have been
      paid. Neither the Originators nor the Unaffiliated Seller has advanced
      funds, or induced, solicited, or knowingly received any advance of funds
      by a party other than the Mortgagor, directly or indirectly, for the
      payment of any amount required by the Mortgage or the Mortgage Note;

            (z) All of the improvements which were included for the purposes of
      determining the Appraised Value of the Mortgaged Property were completed
      at the time that such Mortgage Loan was originated and lie wholly within
      the boundaries and building restriction lines of such Mortgaged Property.
      Except for de minimis encroachments, no improvements on adjoining
      properties encroach upon the Mortgaged Property. To the best of the
      Unaffiliated Seller's and the Originators' knowledge, no improvement
      located on or being part of the Mortgaged Property is in violation of any
      applicable zoning law or regulation. All inspections, licenses, and
      certificates required to be made or issued with respect to all occupied
      portions of the Mortgaged Property (including all such improvements which
      were included for the purpose of determining such Appraised Value) and,
      with respect to the use and occupancy of the same, including but not
      limited to certificates of occupancy and fire underwriters certificates,
      have been made or obtained from the appropriate authorities and the
      Mortgaged Property is lawfully occupied under applicable law;

            (aa) To the best of the Unaffiliated Seller's and the Originators'
      knowledge, there do not exist any circumstances or conditions with respect
      to the Mortgage, the Mortgaged Property, the Mortgagor, or the Mortgagor's
      credit standing that can be reasonably expected to cause such Mortgage
      Loan to become delinquent or adversely affect the value or marketability
      of such Mortgage Loan, other than any such circumstances or conditions
      permitted under the Originator's Underwriting Guidelines;

            (bb) All parties which have had any interest in the Mortgage,
      whether as mortgagee, assignee, pledgee or otherwise, are (or, during the
      period in which they held


                                       19

<PAGE>


      and disposed of such interest, were) (i) in compliance with any and all
      applicable licensing requirements of the laws of the state wherein the
      Mortgaged Property is located and (ii) (A) organized under the laws of
      such state, (B) qualified to do business in such state, (C) federal
      savings and loan associations or national banks having principal offices
      in such state, (D) not doing business in such state, or (E) not required
      to qualify to do business in such state;

            (cc) The Mortgage Note and the Mortgage are genuine, and each is the
      legal, valid and binding obligation of the maker thereof, enforceable in
      accordance with its terms, except as such enforcement may be limited by
      bankruptcy, insolvency, reorganization, moratorium, or other similar laws
      affecting the enforcement of creditors' rights generally and except that
      the equitable remedy of specific performance and other equitable remedies
      are subject to the discretion of the courts. All parties to the Mortgage
      Note and the Mortgage had legal capacity to execute the Mortgage Note and
      the Mortgage and convey the estate therein purported to be conveyed, and
      the Mortgage Note and the Mortgage have been duly and properly executed by
      such parties or pursuant to a valid power-of-attorney that has been
      recorded with the Mortgage;

            (dd) The transfer of the Mortgage Note and the Mortgage as and in
      the manner contemplated by this Agreement is sufficient either (i) fully
      to transfer to the Depositor all right, title, and interest of the
      Unaffiliated Seller and the Originators thereto as note holder and
      mortgagee or (ii) to grant to the Depositor the security interest referred
      to in Section 6.07 hereof. The Mortgage has been duly assigned and the
      Mortgage Note has been duly endorsed. The Assignment of Mortgage delivered
      to the Collateral Agent, on behalf of the Indenture Trustee, pursuant to
      Section 2.04(a)(iv) of the Sale and Servicing Agreement is in recordable
      form and is acceptable for recording under the laws of the applicable
      jurisdiction. The endorsement of the Mortgage Note, the delivery to the
      Collateral Agent, on behalf of the Indenture Trustee, of the endorsed
      Mortgage Note, and such Assignment of Mortgage, and the delivery of such
      Assignment of Mortgage for recording to, and the due recording of such
      Assignment of Mortgage in, the appropriate public recording office in the
      jurisdiction in which the Mortgaged Property is located are sufficient to
      permit the Indenture Trustee to avail itself of all protection available
      under applicable law against the claims of any present or future creditors
      of the Unaffiliated Seller and the Originators, and are sufficient to
      prevent any other sale, transfer, assignment, pledge, or hypothecation of
      the Mortgage Note and Mortgage by the Unaffiliated Seller or the
      Originators from being enforceable;

            (ee) Any and all requirements of any federal, state, or local law
      including, without limitation, usury, truth-in-lending, real estate
      settlement procedures, consumer credit protection, equal credit
      opportunity, or disclosure laws applicable to such Mortgage Loan have been
      complied with, and the Servicer shall maintain in its possession,
      available for the Indenture Trustee's inspection, and shall deliver to the
      Indenture Trustee or its designee upon demand, evidence of compliance with
      all such requirements. The consummation of the transactions contemplated
      by this Agreement will not cause the violation of any such laws;


                                       20

<PAGE>


            (ff) Such Mortgage Loan is covered by an ALTA mortgage title
      insurance policy or such other generally used and acceptable form of
      policy, issued by and the valid and binding obligation of a title insurer
      qualified to do business in the jurisdiction where the Mortgaged Property
      is located, insuring the Unaffiliated Seller, and its successors and
      assigns, as to the first or second priority lien, as applicable, of the
      Mortgage in the original principal amount of such Mortgage Loan. The
      assignment to the Indenture Trustee of the Unaffiliated Seller's interest
      in such mortgage title insurance policy does not require the consent of or
      notification to the insurer. Such mortgage title insurance policy is in
      full force and effect and will be in full force and effect and inure to
      the benefit of the Indenture Trustee upon the consummation of the
      transactions contemplated by this Agreement. No claims have been made
      under such mortgage title insurance policy and none of the Unaffiliated
      Seller, the Originators nor any prior holder of the Mortgage has done, by
      act or omission, anything which would impair the coverage of such mortgage
      title insurance policy;

            (gg) All improvements upon the Mortgaged Property are insured
      against loss by fire, hazards of extended coverage, and such other hazards
      as are customary in the area where the Mortgaged Property is located
      pursuant to insurance policies conforming to the requirements of Section
      3.05 hereof. If the Mortgaged Property at origination was located in an
      area identified on a flood hazard boundary map or flood insurance rate map
      issued by the Federal Emergency Management Agency as having special flood
      hazards (and such flood insurance has been made available), such Mortgaged
      Property was covered by flood insurance at origination. Each individual
      insurance policy is the valid and binding obligation of the insurer, is in
      full force and effect, and will be in full force and effect and inure to
      the benefit of the Indenture Trustee upon the consummation of the
      transactions contemplated by this Agreement, and contain a standard
      mortgage clause naming the originator of such Mortgage Loan, and its
      successors and assigns, as mortgagee and loss payee. All premiums thereon
      have been paid. The Mortgage obligates the Mortgagor to maintain all such
      insurance at the Mortgagor's cost and expense, and upon the Mortgagor's
      failure to do so, authorizes the holder of the Mortgage to obtain and
      maintain such insurance at the Mortgagor's cost and expense and to seek
      reimbursement therefor from the Mortgagor, and none of the Unaffiliated
      Seller, the related Originator or any prior holder of the Mortgage has
      acted or failed to act so as to impair the coverage of any such insurance
      policy or the validity, binding effect, and enforceability thereof;

            (hh) If the Mortgage constitutes a deed of trust, a trustee, duly
      qualified under applicable law to serve as such, has been properly
      designated and currently so serves and is named in such Mortgage, as no
      fees or expenses are or will become payable by the trustee or the
      Noteholders to the Indenture Trustee under the deed of trust, except in
      connection with a trustee's sale after default by the Mortgagor;

            (ii) The Mortgaged Property consists of one or more parcels of real
      property separately assessed for tax purposes. To the extent there is
      erected thereon a detached or an attached one-family residence or a
      detached two-to six-family dwelling, or an individual condominium unit in
      a low-rise condominium, or an individual unit in a planned unit
      development, or a commercial property, a manufactured dwelling, or a


                                       21

<PAGE>


      mixed use or multiple purpose property, such residence, dwelling or unit
      is not (i) a unit in a cooperative apartment, (ii) a property constituting
      part of a syndication, (iii) a time share unit, (iv) a property held in
      trust, (v) a mobile home, (vi) a log-constructed home, or (vii) a
      recreational vehicle;

            (jj) There exist no material deficiencies with respect to escrow
      deposits and payments, if such are required, for which customary
      arrangements for repayment thereof have not been made or which the
      Unaffiliated Seller or the related Originator expects not to be cured, and
      no escrow deposits or payments of other charges or payments due the
      Unaffiliated Seller have been capitalized under the Mortgage or the
      Mortgage Note;

            (kk) Such Mortgage Loan was not originated at a below market
      interest rate. Such Mortgage Loan does not have a shared appreciation
      feature, or other contingent interest feature;

            (ll) The origination and collection practices used by the
      Unaffiliated Seller, the Originators or the Servicer with respect to such
      Mortgage Loan have been in all respects legal, proper, prudent, and
      customary in the mortgage origination and servicing business;

            (mm) The Mortgagor has, to the extent required by applicable law,
      executed a statement to the effect that the Mortgagor has received all
      disclosure materials, if any, required by applicable law with respect to
      the making of fixed-rate mortgage loans. The Servicer shall maintain or
      cause to be maintained such statement in the Mortgage File;

            (nn) All amounts received by the Unaffiliated Seller or the
      Originators with respect to such Mortgage Loan after the applicable
      Cut-Off Date and required to be deposited in the related Distribution
      Account have been so deposited in the related Distribution Account and
      are, as of the Closing Date, or will be as of the Subsequent Transfer
      Date, as applicable, in the related Distribution Account;

            (oo) The appraisal report with respect to the Mortgaged Property
      contained in the Mortgage File was signed prior to the approval of the
      application for such Mortgage Loan by a qualified appraiser, duly
      appointed by the originator of such Mortgage Loan, who had no interest,
      direct or indirect, in the Mortgaged Property or in any loan made on the
      security thereof and whose compensation is not affected by the approval or
      disapproval of such application;

            (pp) When measured by the Cut-Off Date Aggregate Principal Balance,
      the Mortgagors with respect to at least 88.27% of the Mortgage Loans in
      Pool I and 83.69% of the Mortgage Loans in Pool II, represented at the
      time of origination that the Mortgagor would occupy the Mortgaged Property
      as the Mortgagor's primary residence;

            (qq) Each of the Originators and the Unaffiliated Seller has no
      knowledge with respect to the Mortgaged Property of any governmental or
      regulatory action or third party claim made, instituted or threatened in
      writing relating to a violation of any applicable federal, state or local
      environmental law, statute, ordinance, regulation, order, decree or
      standard;


                                       22

<PAGE>


            (rr) [Reserved];

            (ss) With respect to second lien Mortgage Loans:

                  (i) the Unaffiliated Seller and the Originators have no
            knowledge that the Mortgagor has received notice from the holder of
            the prior mortgage that such prior mortgage is in default,

                  (ii) no consent from the holder of the prior mortgage is
            needed for the creation of the second lien Mortgage or, if required,
            has been obtained and is in the related Mortgage File,

                  (iii) if the prior mortgage has a negative amortization, the
            CLTV was determined using the maximum loan amount of such prior
            mortgage,

                  (iv) the related first mortgage loan encumbering the related
            Mortgaged Property does not have a mandatory future advance
            provision, and

                  (v) the Mortgage Loans conform in all material respects to the
            description thereof in the Prospectus Supplement.

            (tt) Each of the Originators and the Unaffiliated Seller further
      represents and warrants to the Indenture Trustee, the Note Insurer and the
      Noteholders that as of the Subsequent Cut-Off Date all representations and
      warranties set forth in clauses (a) through (ss) above and (uu) through
      (ww) below will be correct in all material respects as to each Subsequent
      Mortgage Loan, and the representations so made in this subsection (tt) as
      to the following matters will be correct: (i) each Subsequent Mortgage
      Loan may not be thirty (30) or more days contractually delinquent as of
      the related Subsequent Cut-Off Date; (ii) the original term to maturity of
      such Subsequent Mortgage Loan may not exceed 360 months for Pool I and 360
      months for Pool II; (iii) such Subsequent Mortgage Loan must have a
      mortgage interest rate of at least 7.50% for Pool I and 9.25% for Pool II;
      (iv) the purchase of the Subsequent Mortgage Loans is consented to by the
      Note Insurer and the Rating Agencies, notwithstanding the fact that the
      Subsequent Mortgage Loans meet the parameters stated herein; (v) the
      principal balance of any such Subsequent Mortgage Loan may not exceed
      $250,000 for Pool I and $650,000 for Pool II; (vi) no such Subsequent
      Mortgage Loan shall have a CLTV of more than (a) for consumer purpose
      loans, 100% for Pool I and 100% for Pool II, and (b) for business purpose
      loans, 77.00% for Pool I and 77.00% for Pool II; and (vii) following the
      purchase of such Subsequent Mortgage Loans by the Trust, (a) no more than
      24.00% for Pool I and 47.00% for Pool II of the aggregate principal
      balance of the Mortgage Loans may be second liens; (b) no more than 45.00%
      for Pool I and 60.00% for Pool II of the Mortgage Loans may be Balloon
      Loans; (c) no more than 7.00% for Pool I and 23.00% for Pool II of the
      Mortgage Loans may be secured by mixed-use properties, commercial
      properties, or five or more unit multifamily properties; (d) no more than
      13.00% of the aggregate mortgage loans are made to limited documentation
      or no documentation borrowers; (e) no more than 23.00% of the Mortgage
      Loans are made to "B" quality borrowers; (f) no more than 12.00% of the
      Mortgage Loans are made to "C" quality borrowers; (g) no more


                                       23

<PAGE>


      than 3.00% of the Mortgage Loans are made to "D" quality borrowers; (h) no
      more than 1.25% of the Mortgage Loans are secured by mortgage properties
      within a single zip code; (i) no more than 30.00% of the Mortgage Loans
      are secured by mortgage properties in the state of New York; (j) no more
      than 15.00% of the Mortgage Loans are secured by mortgage properties in
      the state of New Jersey; (k) no more than 12.00% of the Mortgage Loans are
      secured by mortgage properties in the state of Pennsylvania; (l) no more
      than 12.00% of the Mortgage Loans are secured by mortgage properties in
      the state of Florida; (m) the Mortgage Loans will have a weighted average
      mortgage interest rate, (I) for consumer purpose loans, of at least 11.40%
      for Pool I and 11.60% for Pool II and (II) for business purpose loans, of
      at least 16.00% for Pool I and 15.75% for Pool II; and (n) the Mortgage
      Loans will have a weighted average CLTV of not more than (I) for consumer
      purpose loans, 80.00% for Pool I and 80.00% for Pool II, and (II) for
      business purpose loans, 64.00% for Pool I, 61.00% for Pool II.

            (uu) To the best of the Unaffiliated Seller's and the Originators'
      knowledge, no error, omission, misrepresentation, negligence, fraud or
      similar occurrence with respect to a Mortgage Loan has taken place on the
      part of any person, including without limitation the Mortgagor, any
      appraiser, any builder or developer, or any other party involved in the
      origination of the Mortgage Loan or in the application of any insurance in
      relation to such Mortgage Loan;

            (vv) Each Mortgaged Property is in compliance with all environmental
      laws, ordinances, rules, regulations and orders of federal, state or
      governmental authorities relating thereto. No hazardous material has been
      or is incorporated in, stored on or under (other than properly stored
      materials used for reasonable residential purposes) , released from,
      treated on, transported to or from, or disposed of on or from, any
      Mortgaged Property such that, under applicable law (A) any such hazardous
      material would be required to be eliminated before the Mortgaged Property
      could be altered, renovated, demolished or transferred, or (B) the owner
      of the Mortgaged Property, or the holder of a security interest therein,
      could be subjected to liability for the removal of such hazardous material
      or the elimination of the hazard created thereby. Neither the Unaffiliated
      Seller nor any Mortgagor has received notification from any federal, state
      or other governmental authority relating to any hazardous materials on or
      affecting the Mortgaged Property or to any potential or known liability
      under any environmental law arising from the ownership or operation of the
      Mortgaged Property. For the purposes of this subsection, the term
      "hazardous materials" shall include, without limitation, gasoline,
      petroleum products, explosives, radioactive materials, polychlorinated
      biphenyls or related or similar materials, asbestos or any material
      containing asbestos, lead, lead-based paint and any other substance or
      material as may be defined as a hazardous or toxic substance by any
      federal, state or local environmental law, ordinance, rule, regulation or
      order, including, without limitation, CERCLA, the Clean Air Act, the Clean
      Water Act, the Resource Conservation and Recovery Act, the Toxic
      Substances Control Act and any regulations promulgated pursuant thereto;
      and

            (ww) With respect to any business purpose loan, the related Mortgage
      Note contains an acceleration clause, accelerating the maturity date under
      the Mortgage Note to the date the individual guarantying such loan, if
      any, becomes subject to any


                                       24

<PAGE>


      bankruptcy, insolvency, reorganization, moratorium, or other similar laws
      affecting the enforcement of creditors' rights generally.

            Section 3.04 Representations and Warranties of the Depositor. The
Depositor hereby represents, warrants and covenants to the Unaffiliated Seller,
as of the date of execution of this Agreement and the Closing Date, that:

            (a) The Depositor is a corporation duly organized, validly existing
      and in good standing under the laws of the State of Delaware;

            (b) The Depositor has the corporate power and authority to purchase
      each Mortgage Loan and to execute, deliver and perform, and to enter into
      and consummate all the transactions contemplated by this Agreement;

            (c) This Agreement has been duly and validly authorized, executed
      and delivered by the Depositor, and, assuming the due authorization,
      execution and delivery hereof by the Unaffiliated Seller and the
      Originators, constitutes the legal, valid and binding agreement of the
      Depositor, enforceable against the Depositor in accordance with its terms,
      except as such enforcement may be limited by bankruptcy, insolvency,
      reorganization, moratorium or other similar laws relating to or affecting
      the rights of creditors generally, and by general equity principles
      (regardless of whether such enforcement is considered in a proceeding in
      equity or at law);

            (d) No consent, approval, authorization or order of or registration
      or filing with, or notice to, any governmental authority or court is
      required for the execution, delivery and performance of or compliance by
      the Depositor with this Agreement or the consummation by the Depositor of
      any of the transactions contemplated hereby, except such as have been made
      on or prior to the Closing Date;

            (e) The Depositor has filed or will file the Prospectus and
      Prospectus Supplement with the Commission in accordance with Rule 424(b)
      under the Securities Act; and

            (f) None of the execution and delivery of this Agreement, the
      purchase of the Mortgage Loans from the Unaffiliated Seller, the
      consummation of the other transactions contemplated hereby, or the
      fulfillment of or compliance with the terms and conditions of this
      Agreement, (i) conflicts or will conflict with the charter or bylaws of
      the Depositor or conflicts or will conflict with or results or will result
      in a breach of, or constitutes or will constitute a default or results or
      will result in an acceleration under, any term, condition or provision of
      any indenture, deed of trust, contract or other agreement or other
      instrument to which the Depositor is a party or by which it is bound and
      which is material to the Depositor, or (ii) results or will result in a
      violation of any law, rule, regulation, order, judgment or decree of any
      court or governmental authority having jurisdiction over the Depositor.

            Section 3.05 Repurchase Obligation for Defective Documentation and
for Breach of a Representation or Warranty. (a) Each of the representations and
warranties contained in Sections 3.01, 3.02 and 3.03 shall survive the purchase
by the Depositor of the


                                       25

<PAGE>


Mortgage Loans, the subsequent transfer thereof by the Depositor to the Trust
and the subsequent pledge thereof by the Trust to the Indenture Trustee, for the
benefit of the Noteholders and the Note Insurer, and shall continue in full
force and effect, notwithstanding any restrictive or qualified endorsement on
the Mortgage Notes and notwithstanding subsequent termination of this Agreement,
the Sale and Servicing Agreement or the Indenture.

            (b) With respect to any representation or warranty contained in
Sections 3.01 or 3.03 hereof that is made to the best of the Originators'
knowledge or contained in Sections 3.02 or 3.03 hereof that is made to the best
of the Unaffiliated Seller's knowledge, if it is discovered by the Servicer, any
Subservicer, the Indenture Trustee, the Collateral Agent, the Depositor, the
Note Insurer or any Noteholder that the substance of such representation and
warranty was inaccurate as of the Closing Date or the Subsequent Transfer Date,
as applicable, and such inaccuracy materially and adversely affects the value of
the related Mortgage Loan, then notwithstanding the Originators' or the
Unaffiliated Seller's lack of knowledge with respect to the inaccuracy at the
time the representation or warranty was made, such inaccuracy shall be deemed a
breach of the applicable representation or warranty. Upon discovery by the
Originators, the Unaffiliated Seller, the Servicer, any Subservicer, the
Indenture Trustee, the Collateral Agent, the Note Insurer, the Depositor or any
Noteholder of a breach of any of such representations and warranties which
materially and adversely affects the value of Mortgage Loans or the interest of
the Noteholders, or which materially and adversely affects the interests of the
Note Insurer or the Noteholders in the related Mortgage Loan in the case of a
representation and warranty relating to a particular Mortgage Loan
(notwithstanding that such representation and warranty was made to the
Originators' or the Unaffiliated Seller's best knowledge), the party discovering
such breach shall give, pursuant to this Section 3.05(b) and pursuant to Section
4.02 of the Sale and Servicing Agreement, prompt written notice to the others.
Subject to the last paragraph of this Section 3.05(b), within sixty (60) days of
the earlier of its discovery or its receipt of notice of any breach of a
representation or warranty, the Unaffiliated Seller and the Originators shall
(a) promptly cure such breach in all material respects, or (b) purchase such
Mortgage Loan at a purchase price equal to the Loan Repurchase Price, or (c)
remove such Mortgage Loan from the Trust Estate (in which case it shall become a
Deleted Mortgage Loan) and substitute one or more Qualified Substitute Mortgage
Loans. Any such substitution shall be accompanied by payment by the Unaffiliated
Seller of the Substitution Adjustment, if any, to be deposited in the related
Distribution Account pursuant to the Sale and Servicing Agreement.

            The Originators shall cooperate with the Unaffiliated Seller to cure
any breach and shall reimburse the Unaffiliated Seller for the costs and
expenses related to any cure, substitution (including any Substitution
Adjustment) or repurchase incurred by the Unaffiliated Seller pursuant to this
Section 3.05.

            (c) As to any Deleted Mortgage Loan for which the Unaffiliated
Seller or an Originator substitutes a Qualified Substitute Mortgage Loan or
Loans, the Unaffiliated Seller or such Originator shall effect such substitution
by delivering to the Indenture Trustee and the Collateral Agent, a certification
in the form attached to the Sale and Servicing Agreement as Exhibit H, executed
by a Servicing Officer and the documents described in Section 2.05(a) of the
Sale and Servicing Agreement for such Qualified Substitute Mortgage Loan or
Loans. Pursuant to the Sale and Servicing Agreement, upon receipt by the
Indenture Trustee and the Collateral


                                       26

<PAGE>


Agent of a certification of a Servicing Officer of such substitution or purchase
and, in the case of a substitution, upon receipt by the Collateral Agent, on
behalf of the Indenture Trustee of the related Mortgage File, and the deposit of
certain amounts in the related Distribution Account pursuant to Section 2.07(b)
of the Sale and Servicing Agreement (which certification shall be in the form of
Exhibit H to the Sale and Servicing Agreement), the Collateral Agent, on behalf
of the Indenture Trustee, shall be required to release to the Servicer for
release to the Unaffiliated Seller the related Indenture Trustee's Mortgage File
and shall be required to execute, without recourse, and deliver such instruments
of transfer furnished by the Unaffiliated Seller as may be necessary to transfer
such Mortgage Loan to the Unaffiliated Seller or such Originator.

            (d) Pursuant to the Sale and Servicing Agreement, the Servicer shall
deposit in the related Distribution Account all payments received in connection
with such Qualified Substitute Mortgage Loan or Loans after the date of such
substitution. Monthly Payments received with respect to Qualified Substitute
Mortgage Loans on or before the date of substitution will be retained by the
Unaffiliated Seller. The Trust will own all payments received on the Deleted
Mortgage Loan on or before the date of substitution, and the Unaffiliated Seller
shall thereafter be entitled to retain all amounts subsequently received in
respect of such Deleted Mortgage Loan. Pursuant to the Sale and Servicing
Agreement, the Servicer shall be required to give written notice to the
Indenture Trustee, the Collateral Agent and the Note Insurer that such
substitution has taken place and shall amend the Mortgage Loan Schedule to
reflect the removal of such Deleted Mortgage Loan from the terms of the Sale and
Servicing Agreement and the substitution of the Qualified Substitute Mortgage
Loan. The parties hereto agree to amend the Mortgage Loan Schedule accordingly.
Upon such substitution, such Qualified Substitute Mortgage Loan or Loans shall
be subject to the terms of the Indenture, the Sale and Servicing Agreement and
this Agreement in all respects, and the Unaffiliated Seller shall be deemed to
have made with respect to such Qualified Substitute Mortgage Loan or Loans, as
of the date of substitution, the representations and warranties set forth in
Sections 3.02 and 3.03 herein. On the date of such substitution, the
Unaffiliated Seller will remit to the Servicer and, pursuant to the Sale and
Servicing Agreement, the Servicer will deposit into the related Distribution
Account, an amount equal to the Substitution Adjustment, if any.

            (e) With respect to any Mortgage Loan that has been converted to an
REO Mortgage Loan, all references in this Section 3.05 or Section 2.06 to
"Mortgage Loan" shall be deemed to refer to such REO Mortgage Loan. With respect
to any Mortgage Loan that the Originator or Unaffiliated Seller is required to
repurchase that is or becomes a Liquidated Mortgage Loan, in lieu of
repurchasing such Mortgage Loan, the Originator or Unaffiliated Seller shall
deposit into the related Payment Account, pursuant to Section 8.01 of the
Indenture an amount equal to the amount of the Liquidated Loan Loss, if any,
incurred in connection with the liquidation of such Mortgage Loan within the
same time period in which the Originator or Unaffiliated Seller would have
otherwise been required to repurchase such Mortgage Loan.

            (f) It is understood and agreed that the obligations of the
Unaffiliated Seller and the Originator set forth in Section 2.06 and this
Section 3.05 to cure, purchase or substitute for a defective Mortgage Loan as
provided in Section 2.06 and this Section 3.05 constitute the sole remedies of
the Depositor, the Indenture Trustee, the Note Insurer and the Noteholders
respecting a breach of the foregoing representations and warranties.


                                       27

<PAGE>


            (g) The Unaffiliated Seller and the Originator shall be obligated to
indemnify the Indenture Trustee, the Trust, the Depositor, the Owner Trustee,
the Collateral Agent, the Noteholders and the Note Insurer (in their individual
and trust capacities) and their successors, assigns, agents and servants
(collectively, the "Indemnified Parties") from and against, any and all
liabilities, obligations, losses, damages, taxes, claims, actions and suits, and
any and all reasonable costs, expenses and disbursements (including reasonable
legal fees and expenses) of any kind and nature whatsoever (collectively,
"Expenses") which may at any time be imposed on, incurred by, or asserted
against any Indemnified Party in any way relating to or arising out of a breach
by the Unaffiliated Seller or the related Originator of the representations or
warranties herein. The indemnities contained in this Section 3.05 shall survive
the resignation or termination of the Owner Trustee or the termination of this
Agreement.

            (h) Each of the Originators and the Unaffiliated Seller shall be
jointly and severally responsible for any repurchase, cure or substitution
obligation of any of the Originators or the Unaffiliated Seller under this
Agreement, the Indenture and the Sale and Servicing Agreement.

            (i) Any cause of action against the Unaffiliated Seller or an
Originator relating to or arising out of the breach of any representations and
warranties or covenants made in Sections 2.06, 3.02 or 3.03 shall accrue as to
any Mortgage Loan upon (i) discovery of such breach by any party and notice
thereof to the Unaffiliated Seller or such Originator, (ii) failure by the
Unaffiliated Seller or such Originator to cure such breach or purchase or
substitute such Mortgage Loan as specified above, and (iii) demand upon the
Unaffiliated Seller or such Originator by the Indenture Trustee for all amounts
payable in respect of such Mortgage Loan.

Article IV

                             THE UNAFFILIATED SELLER

            Section 4.01 Covenants of the Originators and the Unaffiliated
Seller. Each of the Originators and the Unaffiliated Seller covenants to the
Depositor as follows:

            (a) The Originators and the Unaffiliated Seller shall cooperate with
      the Depositor and the firm of independent certified public accountants
      retained with respect to the issuance of the Notes in making available all
      information and taking all steps reasonably necessary to permit the
      accountants' letters required hereunder to be delivered within the times
      set for delivery herein.

            (b) The Unaffiliated Seller agrees to satisfy or cause to be
      satisfied on or prior to the Closing Date, all of the conditions to the
      Depositor's obligations set forth in Section 5.01 hereof that are within
      the Unaffiliated Seller's (or its agents') control.

            (c) The Originators and the Unaffiliated Seller hereby agree to do
      all acts, transactions, and things and to execute and deliver all
      agreements, documents, instruments, and papers by and on behalf of the
      Originators or the Unaffiliated Seller as the Depositor or its counsel may
      reasonably request in order to consummate the transfer


                                       28

<PAGE>


      of the Mortgage Loans to the Depositor and the subsequent transfer thereof
      to the Indenture Trustee, and the rating, issuance and sale of the Notes.

            Section 4.02 Merger or Consolidation. Each of the Originators and
the Unaffiliated Seller will keep in full effect its existence, rights and
franchises as a corporation and will obtain and preserve its qualification to do
business as a foreign corporation, in each jurisdiction necessary to protect the
validity and enforceability of this Agreement or any of the Mortgage Loans and
to perform its duties under this Agreement. Any Person into which any of the
Originators or the Unaffiliated Seller may be merged or consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Originators or the Unaffiliated Seller shall be a party, or any Person
succeeding to the business of the Originators or the Unaffiliated Seller, shall
be approved by the Note Insurer which approval shall not be unreasonably
withheld. If the approval of the Note Insurer is not required, the successor
shall be an established mortgage loan servicing institution that is a Permitted
Transferee and in all events shall be the successor of the Originators or the
Unaffiliated Seller without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding. The Originators and the Unaffiliated Seller shall send notice
of any such merger or consolidation to the Indenture Trustee and the Note
Insurer.

            Section 4.03 Costs. In connection with the transactions contemplated
under this Agreement, the Trust Agreement, the Indenture and the Sale and
Servicing Agreement, the Unaffiliated Seller shall promptly pay (or shall
promptly reimburse the Depositor to the extent that the Depositor shall have
paid or otherwise incurred): (a) the fees and disbursements of the Depositor's
(50% of fees up to $30,000 and then 100% thereafter), the Unaffiliated Seller's
and the Originators' counsel; (b) the fees of S&P, DCR and Moody's; (c) any of
the fees of the Indenture Trustee and the fees and disbursements of the
Indenture Trustee's counsel; (d) any of the fees of the Owner Trustee and the
fees and disbursements of the Owner Trustee's counsel; (e) expenses incurred in
connection with printing the Prospectus, the Prospectus Supplement, any
amendment or supplement thereto, any preliminary prospectus and the Notes; (f)
fees and expenses relating to the filing of documents with the Commission
(including without limitation periodic reports under the Exchange Act); (g) the
shelf registration amortization fee of 0.04% of the Note Principal Balance of
the Notes on the Closing Date, paid in connection with the issuance of Notes;
(h) the fees and disbursements for Deloitte & Touche LLP, accountants for the
Originators; and (i) all of the initial expenses (not to exceed $65,000) of the
Note Insurer including, without limitation, legal fees and expenses, accountant
fees and expenses and expenses in connection with due diligence conducted on the
Mortgage Files but not including the initial premium paid to the Note Insurer.
For the avoidance of doubt, the parties hereto acknowledge that it is the
intention of the parties that the Depositor shall not pay any of the Indenture
Trustee's or Owner Trustee's fees and expenses in connection with the
transactions contemplated by this Agreement, the Trust Agreement, the Indenture
and the Sale and Servicing Agreement. All other costs and expenses in connection
with the transactions contemplated hereunder shall be borne by the party
incurring such expenses.

            Section 4.04 Indemnification. (a) The Originators and the
Unaffiliated Seller, jointly and severally, agree


                                       29

<PAGE>


            (i) to indemnify and hold harmless the Depositor, each of its
      directors, each of its officers who have signed the Registration
      Statement, and each of its directors and each person or entity who
      controls the Depositor or any such person, within the meaning of Section
      15 of the Securities Act, against any and all losses, claims, damages or
      liabilities, joint and several, to which the Depositor or any such person
      or entity may become subject, under the Securities Act or otherwise, and
      will reimburse the Depositor and each such controlling person for any
      legal or other expenses incurred by the Depositor or such controlling
      person in connection with investigating or defending any such loss, claim,
      damage, liability or action, insofar as such losses, claims, damages or
      liabilities (or actions in respect thereof) arise out of or are based upon
      any untrue statement or alleged untrue statement of any material fact
      contained in the Prospectus Supplement or any amendment or supplement to
      the Prospectus Supplement or the omission or the alleged omission to state
      therein a material fact required to be stated therein or necessary to make
      the statements in the Prospectus Supplement or any amendment or supplement
      to the Prospectus Supplement approved in writing by the Originators or the
      Unaffiliated Seller, in light of the circumstances under which they were
      made, not misleading, but only to the extent that such untrue statement or
      alleged untrue statement or omission or alleged omission relates to the
      information contained in the Prospectus Supplement referred to in Section
      3.01(d). This indemnity agreement will be in addition to any liability
      which the Originators and the Unaffiliated Seller may otherwise have; and

            (ii) to indemnify and to hold the Depositor harmless against any and
      all claims, losses, penalties, fines, forfeitures, legal fees and related
      costs, judgments, and any other costs, fees and expenses that the
      Depositor may sustain in any way related to the failure of any of the
      Originators or the Unaffiliated Seller to perform its duties in compliance
      with the terms of this Agreement. The Originators or the Unaffiliated
      Seller shall immediately notify the Depositor if a claim is made by a
      third party with respect to this Agreement, and the Originators or the
      Unaffiliated Seller shall assume the defense of any such claim and pay all
      expenses in connection therewith, including reasonable counsel fees, and
      promptly pay, discharge and satisfy any judgment or decree which may be
      entered against the Depositor in respect of such claim. Pursuant to the
      Indenture, the Indenture Trustee shall reimburse the Unaffiliated Seller
      in accordance with the Indenture for all amounts advanced by the
      Unaffiliated Seller pursuant to the preceding sentence except when the
      claim relates directly to the failure of the Unaffiliated Seller to
      perform its duties in compliance with the terms of this Agreement.

            (b) The Depositor agrees to indemnify and hold harmless each of the
Originators and the Unaffiliated Seller, each of their respective directors and
each person or entity who controls the Originators or the Unaffiliated Seller or
any such person, within the meaning of Section 15 of the Securities Act, against
any and all losses, claims, damages or liabilities, joint and several, to which
the Originators or the Unaffiliated Seller or any such person or entity may
become subject, under the Securities Act or otherwise, and will reimburse the
Originators and the Unaffiliated Seller and any such director or controlling
person for any legal or other expenses incurred by such party or any such
director or controlling person in connection with investigating or defending any
such loss, claim, damage, liability or action, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or


                                       30

<PAGE>


are based upon any untrue statement or alleged untrue statement of any material
fact contained in the Registration Statement, the Prospectus, the Prospectus
Supplement, any amendment or supplement to the Prospectus or the Prospectus
Supplement or the omission or the alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading, but
only to the extent that such untrue statement or alleged untrue statement or
omission or alleged omission is other than a statement or omission relating to
the information set forth in subsection (a)(i) of this Section 4.04; provided,
however, that in no event shall the Depositor be liable to the Unaffiliated
Seller under this paragraph (b) in an amount in excess of the Depositor's resale
profit or the underwriting fee on the sale of the Notes. This indemnity
agreement will be in addition to any liability which the Depositor may otherwise
have.

            (c) Promptly after receipt by an indemnified party under this
Section 4.04 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under this Section 4.04, notify the indemnifying party in writing of the
commencement thereof, but the omission to so notify the indemnifying party will
not relieve the indemnifying party from any liability which the indemnifying
party may have to any indemnified party hereunder except to the extent such
indemnifying party has been prejudiced thereby. In case any such action is
brought against any indemnified party, and it notifies the indemnifying party of
the commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may elect by written notice delivered to the
indemnified party promptly after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof with counsel reasonably
satisfactory to such indemnified party. After notice from the indemnifying party
to such indemnified party of its election to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under this
Section 4.04 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation; provided, however, if the defendants in any such action
include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it that are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall have
the right to select separate counsel to assert such legal defenses and to
otherwise participate in the defense of such action on behalf of such
indemnified party or parties. The indemnifying party shall not be liable for the
expenses of more than one separate counsel.

            (d) In order to provide for just and equitable contribution in
circumstances in which the indemnity agreement provided for in the preceding
parts of this Section 4.04 is for any reason held to be unavailable to or
insufficient to hold harmless an indemnified party under subsection (a) or
subsection (b) of this Section 4.04 in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, the
indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) subject to the limits set forth in subsection (a)
and subsection (b) of this Section 4.04; provided, however, that no person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. In determining the amount of
contribution to which the respective parties are entitled, there shall be
considered the relative benefits received by the Originators and the


                                       31

<PAGE>


Unaffiliated Seller on the one hand, and the Depositor on the other, the
Originators', the Unaffiliated Seller's and the Depositor's relative knowledge
and access to information concerning the matter with respect to which the claim
was asserted, the opportunity to correct and prevent any statement or omission,
and any other equitable considerations appropriate in the circumstances. The
Originators, the Unaffiliated Seller and the Depositor agree that it would not
be equitable if the amount of such contribution were determined by pro rata or
per capita allocation. For purposes of this Section 4.04, each director of the
Depositor, each officer of the Depositor who signed the Registration Statement,
and each person, if any who controls the Depositor within the meaning of Section
15 of the Securities Act, shall have the same rights to contribution as the
Depositor, and each director of the Originators or the Unaffiliated Seller, and
each person, if any who controls the Originators or the Unaffiliated Seller
within the meaning of Section 15 of the Securities Act, shall have the same
rights to contribution as the Originators and the Unaffiliated Seller.

                                   ARTICLE V

                              CONDITIONS OF CLOSING

            Section 5.01 Conditions of Depositor's Obligations. The obligations
of the Depositor to purchase the Mortgage Loans will be subject to the
satisfaction on the Closing Date of the following conditions. Upon payment of
the purchase price for the Mortgage Loans, such conditions shall be deemed
satisfied or waived.

            (a) Each of the obligations of the Unaffiliated Seller required to
be performed by it on or prior to the Closing Date pursuant to the terms of this
Agreement shall have been duly performed and complied with and all of the
representations and warranties of the Unaffiliated Seller and the Originators
under this Agreement shall be true and correct as of the Closing Date and no
event shall have occurred which, with notice or the passage of time, would
constitute a default under this Agreement, and the Depositor shall have received
a certificate to the effect of the foregoing signed by an authorized officer of
the Unaffiliated Seller and the Originators.

            (b) The Depositor shall have received a letter dated the date of
this Agreement, in form and substance acceptable to the Depositor and its
counsel, prepared by Deloitte & Touche LLP, independent certified public
accountants, regarding the numerical information contained in the Prospectus
Supplement including, but not limited to the information under the captions
"Prepayment and Yield Considerations" and "The Mortgage Loan Pools" regarding
any numerical information in any marketing materials relating to the Notes and
regarding any other information as reasonably requested by the Depositor.

            (c) The Mortgage Loans will be acceptable to the Depositor, in its
sole reasonable discretion.

            (d) The Depositor shall have received the following additional
closing documents, in form and substance reasonably satisfactory to the
Depositor and its counsel:

            (i) the Mortgage Loan Schedule;


                                       32
<PAGE>

            (ii) this Agreement, the Sale and Servicing Agreement, the
      Indenture, the Trust Agreement, and the Underwriting Agreement dated as of
      March 15, 2000 between the Depositor and Prudential Securities
      Incorporated and all documents required thereunder, duly executed and
      delivered by each of the parties thereto other than the Depositor;

            (iii) officer's certificates of an officer of each of the
      Originators and the Unaffiliated Seller, dated as of the Closing Date, and
      attached thereto resolutions of the board of directors and a copy of the
      charter and by-laws;

            (iv) copy of each of the Originators and the Unaffiliated Seller's
      charter and all amendments, revisions, and supplements thereof, certified
      by a secretary of each entity;

            (v) an opinion of the counsel for the Originators and the
      Unaffiliated Seller as to various corporate matters in a form acceptable
      to the Depositor, its counsel, the Note Insurer, S&P, DCR and Moody's (it
      being agreed that the opinion shall expressly provide that the Indenture
      Trustee shall be entitled to rely on the opinion);

            (vi) opinions of counsel for the Unaffiliated Seller, in forms
      acceptable to the Depositor, its counsel, the Note Insurer, S&P and
      Moody's as to such matters as shall be required for the assignment of a
      rating to the Notes of "AAA" by S&P, "AAA" by DCR, and "AAA" by Moody's
      (it being agreed that such opinions shall expressly provide that the
      Indenture Trustee shall be entitled to rely on such opinions);

            (vii) a letter from Moody's to the effect that it has assigned a
      rating of "Aaa" to the Notes;

            (viii) a letter from S&P to the effect that it has assigned a rating
      of "AAA" to the Notes;

            (ix) a copy of a letter from DCR to the Depositor to the effect that
      it has assigned a rating of "AAA" to the Notes;

            (x) an opinion of counsel for the Indenture Trustee in form and
      substance acceptable to the Depositor, its counsel, the Note Insurer,
      Moody's, DCR and S&P (it being agreed that the opinion shall expressly
      provide that the Unaffiliated Seller shall be entitled to rely on the
      opinion);

            (xi) an opinion of counsel for the Owner Trustee in form and
      substance acceptable to the Depositor, its counsel, the Note Insurer,
      Moody's, DCR and S&P (it being agreed that the opinion shall expressly
      provide that the Unaffiliated Seller shall be entitled to rely on the
      opinion);

            (xii) an opinion or opinions of counsel for the Servicer, in form
      and substance acceptable to the Depositor, its counsel, the Note Insurer,
      Moody's, DCR and S&P (it being agreed that the opinion shall expressly
      provide that the Unaffiliated Seller shall be entitled to rely on the
      opinion); and


                                       33

<PAGE>


            (xiii) an opinion or opinions of counsel for the Note Insurer, in
      each case in form and substance acceptable to the Depositor, its counsel,
      Moody's, DCR and S&P (it being agreed that the opinion shall expressly
      provide that the Unaffiliated Seller shall be entitled to rely on the
      opinion).

            (e) The Policy shall have been duly executed, delivered and issued
with respect to the Notes.

            (f) All proceedings in connection with the transactions contemplated
by this Agreement and all documents incident hereto shall be satisfactory in
form and substance to the Depositor and its counsel.

            (g) The Unaffiliated Seller shall have furnished the Depositor with
such other certificates of its officers or others and such other documents or
opinions as the Depositor or its counsel may reasonably request.

            Section 5.02 Conditions of Unaffiliated Seller's Obligations. The
obligations of the Unaffiliated Seller under this Agreement shall be subject to
the satisfaction, on the Closing Date, of the following conditions:

            (a) Each of the obligations of the Depositor required to be
performed by it at or prior to the Closing Date pursuant to the terms of this
Agreement shall have been duly performed and complied with and all of the
representations and warranties of the Depositor contained in this Agreement
shall be true and correct as of the Closing Date and the Unaffiliated Seller
shall have received a certificate to that effect signed by an authorized officer
of the Depositor.

            (b) The Unaffiliated Seller shall have received the following
additional documents:

            (i) this Agreement and the Sale and Servicing Agreement, and all
      documents required thereunder, in each case executed by the Depositor as
      applicable; and

            (ii) a copy of a letter from Moody's to the Depositor to the effect
      that it has assigned a rating of "Aaa" to the Notes , a copy of a letter
      from DCR to the Depositor to the effect that it has assigned a rating of
      "AAA" to the Notes and a copy of a letter from S&P to the Depositor to the
      effect that it has assigned a rating of "AAA" to the Notes.

            (iii) an opinion of counsel for the Indenture Trustee in form and
      substance acceptable to the Unaffiliated Seller and its counsel;

            (iv) an opinion of counsel for the Owner Trustee in form and
      substance acceptable to the Unaffiliated Seller and its counsel;

            (v) an opinion of counsel for the Note Insurer in form and substance
      acceptable to the Unaffiliated Seller and its counsel;


                                       34

<PAGE>


            (vi) an opinion of the counsel for the Depositor as to securities
      and tax matters; and

            (vii) an opinion of the counsel for the Depositor as to true sale
      matters.

            (c) The Depositor shall have furnished the Unaffiliated Seller with
such other certificates of its officers or others and such other documents to
evidence fulfillment of the conditions set forth in this Agreement as the
Unaffiliated Seller may reasonably request.

            Section 5.03 Termination of Depositor's Obligations. The Depositor
may terminate its obligations hereunder by notice to the Unaffiliated Seller at
any time before delivery of and payment of the purchase price for the Mortgage
Loans if: (a) any of the conditions set forth in Section 5.01 are not satisfied
when and as provided therein; (b) there shall have been the entry of a decree or
order by a court or agency or supervisory authority having jurisdiction in the
premises for the appointment of a conservator, receiver or liquidator in any
insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings of or relating to the Unaffiliated Seller, or for the
winding up or liquidation of the affairs of the Unaffiliated Seller; (c) there
shall have been the consent by the Unaffiliated Seller to the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings of or relating to
the Unaffiliated Seller or of or relating to substantially all of the property
of the Unaffiliated Seller; (d) any purchase and assumption agreement with
respect to the Unaffiliated Seller or the assets and properties of the
Unaffiliated Seller shall have been entered into; or (e) a Termination Event
shall have occurred. The termination of the Depositor's obligations hereunder
shall not terminate the Depositor's rights hereunder or its right to exercise
any remedy available to it at law or in equity.

                                   ARTICLE VI

                                  MISCELLANEOUS

            Section 6.01 Notices. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered to or mailed by registered mail, postage prepaid, or
transmitted by telex or telegraph and confirmed by a similar mailed writing, if
to the Depositor, addressed to the Depositor at Prudential Securities Secured
Financing Corporation, One New York Plaza, 14th Floor, New York, New York 10292,
Attention: Managing Director - Asset Backed Finance Group, or to such other
address as the Depositor may designate in writing to the Unaffiliated Seller and
the Originators and if to the Unaffiliated Seller or an Originator, addressed to
the Unaffiliated Seller, 3411 Silverside Road, 103 Springer Bldg., Wilmington,
Delaware 19810, Attention: Jeffrey Ruben, or to such Originator at Balapointe
Office Centre, 111 Presidential Boulevard, Suite 127, Bala Cynwyd, Pennsylvania
19004, Attention: Mr. Anthony Santilli, Jr., or to such other address as the
Unaffiliated Seller or such Originator may designate in writing to the
Depositor.

            Section 6.02 Severability of Provisions. Any part, provision,
representation, warranty or covenant of this Agreement which is prohibited or
which is held to be void or unenforceable shall be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof. Any part, provision, representation, warranty or


                                       35

<PAGE>


covenant of this Agreement which is prohibited or unenforceable or is held to be
void or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction as to any Mortgage Loan shall not
invalidate or render unenforceable such provision in any other jurisdiction. To
the extent permitted by applicable law, the parties hereto waive any provision
of law which prohibits or renders void or unenforceable any provision hereof.

            Section 6.03 Agreement of Unaffiliated Seller. The Unaffiliated
Seller agrees to execute and deliver such instruments and take such actions as
the Depositor may, from time to time, reasonably request in order to effectuate
the purpose and to carry out the terms of this Agreement.

            Section 6.04 Survival. The parties to this Agreement agree that the
representations, warranties and agreements made by each of them herein and in
any Note or other instrument delivered pursuant hereto shall be deemed to be
relied upon by the other party hereto, notwithstanding any investigation
heretofore or hereafter made by such other party or on such other party's
behalf, and that the representations, warranties and agreements made by the
parties hereto in this Agreement or in any such certificate or other instrument
shall survive the delivery of and payment for the Mortgage Loans.

            Section 6.05 Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

            Section 6.06 Successors and Assigns. This Agreement shall inure to
the benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns. Except as expressly permitted by the terms
hereof, this Agreement may not be assigned, pledged or hypothecated by any party
hereto to a third party without the written consent of the other party to this
Agreement and the Note Insurer; provided, however, that the Depositor may assign
its rights hereunder without the consent of the Unaffiliated Seller.

            Section 6.07 Confirmation of Intent; Grant of Security Interest. It
is the express intent of the parties hereto that the conveyance of the Mortgage
Loans by the Originators to the Unaffiliated Seller as contemplated by this
Unaffiliated Seller's Agreement be, and be treated for all purposes as, a sale
of the Mortgage Loans and that the conveyance of the Mortgage Loans by the
Unaffiliated Seller to the Depositor as contemplated by this Unaffiliated
Seller's Agreement be, and be treated for accounting purposes as, a sale of the
Mortgage Loans. It is, further, not the intention of the parties that any such
conveyance be deemed a pledge of the Mortgage Loans by the Originators to the
Unaffiliated Seller or by the Unaffiliated Seller to the Depositor to secure a
debt or other obligation of the Originators or the Unaffiliated Seller, as the
case may be. However, in the event that, notwithstanding the intent of the
parties, the Mortgage Loans are held to continue to be property of the
Originators or the Unaffiliated Seller then (a) this Unaffiliated Seller's
Agreement shall also be deemed to be a security agreement within the meaning of
Articles 8 and 9 of the Uniform Commercial Code; (b) the transfer of the
Mortgage Loans provided for herein shall be deemed to be a grant by the
Originators to the Unaffiliated Seller and by the Unaffiliated Seller to the
Depositor of a security interest in all of such parties' right,


                                       36

<PAGE>


title and interest in and to the Mortgage Loans and all amounts payable on the
Mortgage Loans in accordance with the terms thereof and all proceeds of the
conversion, voluntary or involuntary, of the foregoing into cash, instruments,
securities or other property; (c) the possession by the Depositor (or its
assignee) of Mortgage Notes and such other items of property as constitute
instruments, money, negotiable documents or chattel paper shall be deemed to be
"possession by the secured party" for purposes of perfecting the security
interest pursuant to Section 9-305 of the Uniform Commercial Code; and (d)
notifications to persons holding such property, and acknowledgments, receipts or
confirmations from persons holding such property, shall be deemed notifications
to, or acknowledgments, receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the Depositor (or its
assignee) for the purpose of perfecting such security interest under applicable
law. Any assignment of the interest of the Depositor pursuant to any provision
hereof shall also be deemed to be an assignment of any security interest created
hereby. The Originators, the Unaffiliated Seller and the Depositor shall, to the
extent consistent with this Unaffiliated Seller's Agreement, take such actions
as may be necessary to ensure that, if this Unaffiliated Seller's Agreement were
deemed to create a security interest in the Mortgage Loans, such security
interest would be deemed to be a perfected security interest of first priority
under applicable law and will be maintained as such throughout the term of this
Agreement.

            Section 6.08 Miscellaneous. This Agreement supersedes all prior
agreements and understandings relating to the subject matter hereof.

            Section 6.09 Amendments. (a) This Agreement may be amended from time
to time by the Originators, the Unaffiliated Seller and the Depositor by written
agreement, upon the prior written consent of the Note Insurer, without notice to
or consent of the Noteholders, and with prior written notice to the Owner
Trustee to cure any ambiguity, to correct or supplement any provisions herein,
to comply with any changes in the Code, or to make any other provisions with
respect to matters or questions arising under this Agreement which shall not be
inconsistent with the provisions of this Agreement; provided, however, that such
action shall not, as evidenced by (i) an Opinion of Counsel, at the expense of
the party requesting the change, delivered to the Indenture Trustee or (ii) a
letter from each Rating Agency confirming that such amendment will not result in
the reduction, qualification or withdrawal of the then current rating of the
Notes, adversely affect in any material respect the interests of any Noteholder;
and provided, further, that no such amendment shall reduce in any manner the
amount of, or delay the timing of, payments received on Mortgage Loans which are
required to be distributed on any Note without the consent of the Holder of such
Note, or change the rights or obligations of any other party hereto without the
consent of such party.

            (b) This Agreement may be amended from time to time by the
Originators, the Unaffiliated Seller and the Depositor with the consent of the
Note Insurer, the Majority Noteholders and the Holders of the majority of the
Percentage Interest in the Trust Certificates and with prior written notice to
the Owner Trustee for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Holders; provided, however, that no such amendment
shall reduce in any manner the amount of, or delay the timing of, payments
received on Mortgage Loans which are required to be distributed on any Note
without the consent of the Holder of such Note or reduce the percentage for each
Class the Holders of which are required to consent to any


                                       37

<PAGE>


such amendment without the consent of the Holders of 100% of each Class of Notes
affected thereby.

            (c) It shall not be necessary for the consent of Holders under this
Section 6.09 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof.

            Section 6.10 Third-Party Beneficiaries. The parties agree that each
of the Trust, the Owner Trustee, the Note Insurer and the Indenture Trustee is
an intended third-party beneficiary of this Agreement to the extent necessary to
enforce the rights and to obtain the benefit of the remedies of the Depositor
under this Agreement which are assigned to the Trust and then to the Indenture
Trustee, for the benefit of the Noteholders and the Note Insurer, pursuant to
the Sale and Servicing Agreement and the Indenture, respectively, and to the
extent necessary to obtain the benefit of the enforcement of the obligations and
covenants of the Unaffiliated Seller under Section 4.01 and 4.04(a)(ii) of this
Agreement. The parties further agree that Prudential Securities Incorporated and
each of its directors and each person or entity who controls Prudential
Securities Incorporated or any such person, within the meaning of Section 15 of
the Securities Act (each, an "Underwriter Entity") is an intended third-party
beneficiary of this Agreement to the extent necessary to obtain the benefit of
the enforcement of the obligations and covenants of the Unaffiliated Seller with
respect to each Underwriter Entity under Section 4.04(a)(i) of this Agreement.

            Section 6.11 GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
TRIAL. (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS (AS OPPOSED TO CONFLICT OF LAWS PROVISIONS) OF THE STATE
OF NEW YORK.

            (b) THE ORIGINATORS, THE DEPOSITOR AND THE UNAFFILIATED SELLER EACH
HEREBY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF
NEW YORK AND THE UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF
MANHATTAN IN NEW YORK CITY, AND EACH WAIVES PERSONAL SERVICE OF ANY AND ALL
PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY
REGISTERED MAIL DIRECTED TO THE ADDRESS SET FORTH IN SECTION 6.01 OF THIS
AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE DAYS AFTER
THE SAME SHALL HAVE BEEN DEPOSITED IN THE U.S. MAIL, POSTAGE PREPAID. THE
ORIGINATORS, THE DEPOSITOR AND THE UNAFFILIATED SELLER EACH HEREBY WAIVES ANY
OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY
ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. NOTHING IN THIS SECTION
SHALL AFFECT THE RIGHT OF THE ORIGINATORS, THE DEPOSITOR AND THE UNAFFILIATED
SELLER TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT
EITHERS' RIGHT TO BRING ANY ACTION OR PROCEEDING IN THE COURTS OF ANY OTHER
JURISDICTION.


                                       38

<PAGE>


            (c) THE ORIGINATORS, THE DEPOSITOR AND THE UNAFFILIATED SELLER EACH
HEREBY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE ARISING OUT OF, CONNECTED WITH,
RELATED TO, OR IN CONNECTION WITH THIS AGREEMENT. INSTEAD, ANY DISPUTE RESOLVED
IN COURT WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

            Section 6.12 Execution in Counterparts. This Agreement may be
executed in any number of counterparts, each of which so executed shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

                 [Remainder of Page Intentionally Left Blank]


                                       39

<PAGE>


            IN WITNESS WHEREOF, the parties to this Unaffiliated Seller's
Agreement have caused their names to be signed by their respective officers
thereunto duly authorized as of the date first above written.

                                    PRUDENTIAL SECURITIES SECURED FINANCING
                                       CORPORATION

                                       By:
                                          ----------------------------------
                                          Name:
                                          Title:

                                    ABFS 2000-1, INC.



                                       By:
                                          ----------------------------------
                                          Name:
                                          Title:

                                    AMERICAN BUSINESS CREDIT, INC.



                                       By:
                                          ----------------------------------
                                          Name:
                                          Title:

                                    HOMEAMERICAN CREDIT, INC., D/B/A UPLAND
                                       MORTGAGE

                                       By:
                                          ----------------------------------
                                          Name:
                                          Title:

                                    NEW JERSEY MORTGAGE AND INVESTMENT CORP.



                                       By:
                                          ----------------------------------
                                          Name:
                                          Title:


<PAGE>


                                                                      SCHEDULE I

                             MORTGAGE LOAN SCHEDULE


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                                                                       EXHIBIT A

                               FORM OF SUBSEQUENT
                               TRANSFER AGREEMENT

      This SUBSEQUENT TRANSFER AGREEMENT, dated as of ________, 2000 (the
"Subsequent Transfer Date"), is entered into by and among ABFS 2000-1, INC., as
unaffiliated seller (the "Unaffiliated Seller"), AMERICAN BUSINESS CREDIT, INC.,
as an originator ("ABC"), HOMEAMERICAN CREDIT, INC. D/B/A UPLAND MORTGAGE, as an
originator ("Upland"), NEW JERSEY MORTGAGE AND INVESTMENT CORP., as an
originator ("NJMIC") (ABC, Upland and NJMIC are collectively referred to herein
as the "Originators"), and PRUDENTIAL SECURITIES SECURED FINANCING CORPORATION,
as depositor (the "Depositor").

                             W I T N E S S E T H:

      Reference is hereby made to (x) that certain Unaffiliated Seller's
Agreement, dated as of March 1, 2000 (the "Unaffiliated Seller's Agreement"), by
and among the Unaffiliated Seller, the Originators and the Depositor, and (y)
that certain Indenture, dated as of March 1, 2000 (the "Indenture"), by and
between the ABFS Mortgage Loan Trust 2000-1 (the "Trust") and The Chase
Manhattan Bank, as indenture trustee (the "Indenture Trustee"). Pursuant to the
Unaffiliated Seller's Agreement, the Originators have agreed to sell, assign and
transfer, and the Unaffiliated Seller has agreed to accept, from time to time,
Subsequent Mortgage Loans (as defined below), and the Unaffiliated Seller has
agreed to sell, assign and transfer, and the Depositor has agreed to accept,
from time to time, such Subsequent Mortgage Loans. The Unaffiliated Seller's
Agreement provides that each such sale of Subsequent Mortgage Loans be evidenced
by the execution and delivery of a Subsequent Transfer Agreement such as this
Subsequent Transfer Agreement.

      The assets sold to the Unaffiliated Seller, and then sold to the Depositor
pursuant to this Subsequent Transfer Agreement consist of (a) the Subsequent
Mortgage Loans in Pool I and Pool II listed in the Mortgage Loan Schedule
attached hereto (including property that secures a Subsequent Mortgage Loan that
becomes an REO Property), including the related Mortgage Files delivered or to
be delivered to the Collateral Agent, on behalf of the Indenture Trustee,
including all payments of principal received, collected or otherwise recovered
after the Subsequent Cut-Off Date for each Subsequent Mortgage Loan, all
payments of interest due on each Subsequent Mortgage Loan after the Subsequent
Cut-Off Date therefor whenever received and all other proceeds received in
respect of such Subsequent Mortgage Loans, (b) the Insurance Policies relating
to the Subsequent Mortgage Loans, and (c) all proceeds of the conversion,
voluntary or involuntary, of any of the foregoing into cash or other liquid
assets, including, without limitation, all insurance proceeds and condemnation
awards.

      The "Subsequent Mortgage Loans" are those listed on the Schedule of
Mortgage Loans attached hereto. The Aggregate Principal Balance of such
Subsequent Mortgage Loans as of the Subsequent Cut-Off Date is $__________ in
Pool I and $__________ in Pool II.


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      NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the parties hereto agree as follows:

      Section 1. Definitions. For the purposes of this Subsequent Transfer
Agreement, capitalized terms used herein but not otherwise defined shall have
the respective meanings assigned to such terms in Appendix I to the Indenture.

      Section 2. Sale, Assignment and Transfer. In consideration of the receipt
of $__________ (such amount being approximately 100% of the Aggregate Principal
Balance of the Subsequent Mortgage Loans) from the Unaffiliated Seller, each of
the Originators hereby sells, assigns and transfers to the Unaffiliated Seller,
without recourse, all of their respective right, title and interest in, to, and
under the Subsequent Mortgage Loans and related assets described above, whether
now existing or hereafter arising.

      In consideration of receipt of $__________ (such amount being
approximately 100% of the Aggregate Principal Balance of the Subsequent Mortgage
Loans) from the Depositor, the Unaffiliated Seller hereby sells, assigns and
transfers to the Depositor, without recourse, all of its right, title and
interest in, to, and under the Subsequent Mortgage Loans and related assets
described above, whether now existing or hereafter arising.

      In connection with each such sale, assignment and transfer, the
Originators and the Unaffiliated Seller shall satisfy the document delivery
requirements set forth in Section 2.05 of the Sale and Servicing Agreement with
respect to each Subsequent Mortgage Loan.

      Section 3. Representations and Warranties of the Originators and the
Unaffiliated Seller. With respect to each Subsequent Mortgage Loan, each of the
Originators and the Unaffiliated Seller hereby remake each of the
representations, warranties and covenants made by the Originators and the
Unaffiliated Seller in Section 3.03 of the Unaffiliated Seller's Agreement, on
which the Depositor relies in accepting the Subsequent Mortgage Loans. Such
representations and warranties speak as of the Subsequent Transfer Date unless
otherwise indicated, and shall survive each sale, assignment, transfer and
conveyance of the Subsequent Mortgage Loans to the Depositor.

      Each of the Originators and the Unaffiliated Seller hereby acknowledge
that the Depositor is transferring the Subsequent Mortgage Loans to the Trust,
and that the Trust is pledging the Subsequent Mortgage Loans to the Indenture
Trustee, for the benefit of the Noteholders and the Note Insurer, on the date
hereof. Each of the Originators and the Unaffiliated Seller hereby acknowledge
and agree that the Depositor may assign to the Trust, and the Trust may assign
to the Indenture Trustee, for the benefit of the Noteholders and the Note
Insurer, its interest in the representations and warranties set forth in this
Section 3. Each of the Originators and the Unaffiliated Seller agrees that, upon
such assignment to the Trust and pledge to the Indenture Trustee, such
representations, warranties, agreements and covenants will run to and be for the
benefit of the Indenture Trustee and the Indenture Trustee may enforce, without
joinder of the Depositor or the Trust, the repurchase and indemnification
obligations of the Unaffiliated Seller and the Originators set forth herein with
respect to breaches of such representations, warranties, agreements and
covenants.


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      Section 4. Repurchase of Subsequent Mortgage Loans. Upon discovery by any
of the Depositor, the Unaffiliated Seller, an Originator, the Indenture Trustee,
the Servicer on behalf of the Trust, the Note Insurer or any Noteholder of a
breach of any of the representations and warranties made by the Originators and
the Unaffiliated Seller pursuant to Section 3.03 of the Unaffiliated Seller's
Agreement or this Section 3, the party discovering such breach shall give prompt
written notice to each other Person; provided, that the Indenture Trustee shall
have no duty to inquire or to investigate the breach of any such representations
and warranties. The Originators and the Unaffiliated Seller will be obligated to
repurchase a Subsequent Mortgage Loan which breaches a representation or
warranty in accordance with the provisions of Section 4.02 of the Sale and
Servicing Agreement or to indemnify as described in Section 3.05(g) of the
Unaffiliated Seller's Agreement. Such repurchase and indemnification obligation
of the Originators and the Unaffiliated Seller shall constitute the sole remedy
against the Originators and the Unaffiliated Seller, and the Trust for such
breach available to the Servicer, the Trust, the Owner Trustee, the Depositor,
the Indenture Trustee, the Note Insurer and the Noteholders.

      Section 5. Amendment. This Subsequent Transfer Agreement may be amended
from time to time by the Originators, the Unaffiliated Seller and the Depositor
only with the prior written consent of the Note Insurer (or, in the event of a
Note Insurer Default, the Majority Holders), and to the extent such amendment
materially affects the interests of the Owner Trustee, upon written notice to
the Owner Trustee.

      Section 6. GOVERNING LAW; WAIVER OF JURY TRIAL. THIS SUBSEQUENT TRANSFER
AGREEMENT AND ANY AMENDMENT HEREOF PURSUANT TO SECTION 5 SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS SUBSEQUENT TRANSFER AGREEMENT OR
ANY TRANSACTION CONTEMPLATED HEREBY AND FOR ANY COUNTERCLAIM THEREIN.

      Section 7. Counterparts. This Subsequent Transfer Agreement may be
executed in counterparts (and by different parties on separate counterparts),
each of which shall be an original, but all of which shall constitute one and
the same instrument.

      Section 8. Binding Effect; Third-Party Beneficiaries. This Subsequent
Transfer Agreement will inure to the benefit of and be binding upon the parties
hereto, the Note Insurer, the Trust, the Owner Trustee, the Noteholders, and
their respective successors and permitted assigns.

      Section 9. Headings. The headings herein are for purposes of reference
only and shall not otherwise affect the meaning or interpretation of any
provision hereof.

      Section 10. Exhibits. The exhibits attached hereto and referred to herein
shall constitute a part of this Subsequent Transfer Agreement and are
incorporated into this Subsequent Transfer Agreement for all purposes.


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      Section 11. Intent of the Parties; Security Agreement. The Originators,
the Unaffiliated Seller and the Depositor intend that the conveyance of all
right, title and interest in and to the Subsequent Mortgage Loans and related
assets described above by the Originators to the Unaffiliated Seller and by the
Unaffiliated Seller to the Depositor pursuant to this Subsequent Transfer
Agreement shall be, and be construed as, a sale of the Subsequent Mortgage Loans
from the Originators to the Unaffiliated Seller and from the Unaffiliated Seller
to the Depositor.

      It is, further, not intended that such conveyances be deemed to be pledges
of the Subsequent Mortgage Loans by the Originators to the Unaffiliated Seller
and by the Unaffiliated Seller to the Depositor to secure a debt or other
obligation of the Originators or of the Unaffiliated Seller, as the case may be.
However, in the event that the Subsequent Mortgage Loans are held to be property
of the Originators or the Unaffiliated Seller, or if for any reason this
Subsequent Transfer Agreement is held or deemed to create a security interest in
the Subsequent Mortgage Loans, then it is intended that: (a) this Subsequent
Transfer Agreement shall also be deemed to be a security agreement within the
meaning of Articles 8 and 9 of the Uniform Commercial Code of any other
applicable jurisdiction; (b) the conveyance provided for in this Subsequent
Transfer Agreement shall be deemed to be a grant by the Originators to the
Unaffiliated Seller and by the Unaffiliated Seller to the Depositor of a
security interest in all of the Originators' and the Unaffiliated Seller's
respective right, title and interest, whether now owned or hereafter acquired,
in and to the Subsequent Mortgage Loans and related assets described above. The
Originators and the Unaffiliated Seller, as applicable, shall, to the extent
consistent with this Subsequent Transfer Agreement, take such reasonable actions
as may be necessary to ensure that, if this Subsequent Transfer Agreement were
deemed to create a security interest in the Subsequent Mortgage Loans and the
other property described above, such interest would be deemed to be a perfected
security interest of first priority under applicable law and will be maintained
as such throughout the term of this Subsequent Transfer Agreement.

                  [Remainder of Page Intentionally Left Blank]


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IN WITNESS WHEREOF, the Originators, the Unaffiliated Seller and the Depositor
have caused this Subsequent Transfer Agreement to be duly executed by their
respective officers as of the day and year first above written.

                                    AMERICAN BUSINESS CREDIT, INC.


                                    By:
                                       ----------------------------------
                                         Name:
                                         Title:

                                    HOMEAMERICAN CREDIT, INC. D/B/A
                                         UPLAND MORTGAGE


                                    By:
                                       ----------------------------------
                                         Name:
                                         Title:

                                    NEW JERSEY MORTGAGE AND
                                         INVESTMENT, INC.


                                    By:
                                       ----------------------------------
                                         Name:
                                         Title:

                                    ABFS 2000-1, INC.


                                    By:
                                       ----------------------------------
                                         Name:
                                         Title:

                                    PRUDENTIAL SECURITIES SECURED
                                         FINANCING CORPORATION


                                    By:
                                       ----------------------------------
                                         Name:
                                         Title:




              [Signature Page to Subsequent Transfer Agreement]