Document:

EXHIBIT 4.7
                                                               EXECUTION VERSION

                            DATED 23 SEPTEMBER, 2002

                           GRANITE MORTGAGES 02-2 PLC
                                as Current Issuer

                                 CITIBANK, N.A.
                            as Principal Paying Agent
                  Agent Bank, Registrar and Transfer Agent

                        CITIBANK, N.A. (NEW YORK BRANCH)
                               as US Paying Agent

                                       and

                      THE BANK OF NEW YORK (LONDON BRANCH)
                                 as Note Trustee

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               ISSUER PAYING AGENT AND AGENT BANK AGREEMENT
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                           SIDLEY AUSTIN BROWN & WOOD
                              1 THREADNEEDLE STREET
                                 LONDON EC2R 8AW
                          TELEPHONE 020 7360 3600
                          FACSIMILE 020 7626 7937
                               REF:30507-13/551088

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                                    CONTENTS

1.    Definitions and Interpretation.......................................4

2.    Appointment of the Agents............................................5

3.    The Current Issuer Notes; Authentication.............................6

4.    Duties of Agents.....................................................7

5.    Exchanges of Global Note Certificates and Delivery of
      Individual Note Certificates.........................................9

6.    Replacement Note Certificates........................................9

7.    Payments to the Paying Agents.......................................10

8.    Payments to Noteholders.............................................12

9.    Transfers of Current Issuer Notes...................................14

10.   Miscellaneous Duties of the Agents..................................15

11.   Agents to act for Note Trustee......................................18

12.   Fees and Expenses...................................................19

13.   Terms of Appointment................................................20

14.   No Liability for Consequential Loss.................................21

15.   Termination of Appointment..........................................22

16.   Non-Petition and Limited Recourse...................................25

17.   Notices.............................................................26

18.   Third Party Rights..................................................27

19.   Time of the Essence.................................................27

20.   Variation and Waiver................................................27

21.   Execution in Counterparts; Severability.............................27

22.   Governing Law and Jurisdiction; Process Agent; Appropriate
      Forum...............................................................27

23.   Exclusion of Liability..............................................28

      SCHEDULE 1 SPECIFIED OFFICES OF THE AGENTS..........................29

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     SCHEDULE 2 REGULATIONS CONCERNING THE TRANSFER, EXCHANGE AND
            REGISTRATION OF THE CURRENT ISSUER NOTES......................30
      EXECUTION PAGE......................................................34

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THIS AGREEMENT is made on 23 September, 2002

BETWEEN:

(1)  GRANITE MORTGAGES 02-2 PLC (registered number 4482804), a public limited
     company incorporated under the laws of England and Wales whose registered
     office is Fifth Floor, 100 Wood Street, London EC2V 7EX as Current Issuer;

(2)   CITIBANK,  N.A.,  acting  through  its office at 5  Carmelite  Street,
      London EC4Y 0PA in its capacity as Principal Paying Agent;

(3)   CITIBANK,  N.A.,  acting  through  its  office  at Global  Agency  and
      Trust, 111 Wall Street,  14th Floor,  New York, N.Y. 10043,  U.S.A. in
      its capacity as US Paying Agent;

(4)   CITIBANK,  N.A.,  acting  through  its office at 5  Carmelite  Street,
      London EC4Y 0PA in its capacity as Agent Bank;

(5)   CITIBANK,  N.A.,  acting  through  its office at 5  Carmelite  Street,
      London EC4Y 0PA in its capacity as Registrar;

(6)   CITIBANK,  N.A.,  acting  through  its office at 5  Carmelite  Street,
      London EC4Y 0PA in its capacity as Transfer Agent; and

(7)   THE BANK OF NEW YORK (LONDON BRANCH), acting through its office at One
      Canada Square, 48th Floor, London E14 5Al at in its capacity as Note
      Trustee.

WHEREAS:

By a resolution of a duly authorised Board of Directors of the Current Issuer
passed on 10 September, 2002, the Current Issuer authorised the creation and
issue of the Current Issuer Notes constituted by the Current Issuer Trust Deed
and secured by the Current Issuer Deed of Charge.

IT IS AGREED as follows:

1.    DEFINITIONS AND INTERPRETATION

1.1   The provisions of:

      (a)   the Master Definitions Schedule as amended and restated by (and
            appearing as Appendix 1 to) the Master Definitions Schedule Third
            Amendment Deed made on 23 September, 2002 between, among others, the
            Seller, Funding and the Mortgages Trustee, and

      (b)   the Issuer Master Definitions Schedule signed for the purposes of
            identification by Sidley Austin Brown & Wood and Allen & Overy on 23
            September, 2002,

      (as the same have been and may be amended, varied or supplemented from
      time to time with the consent of the parties hereto) are expressly and
      specifically incorporated into and shall apply to this Agreement.

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      The Issuer Master Definitions Schedule specified above shall prevail to
      the extent that it conflicts with the Master Definitions Schedule.

1.2   Where the context permits, references in this agreement to a "CURRENT
      ISSUER NOTE" shall mean, while any of the Current Issuer Notes are
      represented by a Global Note Certificate, such Global Note Certificate,
      and while any of the Current Issuer Notes are represented by one or more
      Individual Note Certificates, such Individual Note Certificates.

1.3   Where the context permits, references in this agreement to the "HOLDER" of
      a Current Issuer Note means the person in whose name such Current Issuer
      Note is for the time being registered in the Register (or, in the case of
      a joint holding, the first named thereof) and "NOTEHOLDER" shall be
      construed accordingly.

2.    APPOINTMENT OF THE AGENTS

2.1   APPOINTMENT: Upon and subject to the terms of this Agreement, the Current
      Issuer and, for the purposes of Clause 11 (Agents to act for Note Trustee)
      only, the Note Trustee hereby appoint, for the purposes specified in, and
      to carry out their respective duties under, this Agreement and under the
      Current Issuer Conditions on a several but not joint basis:

      (a)   the Principal Paying Agent acting through its Specified Office as
            principal paying agent in respect of the Reg S Notes;

      (b)   the US Paying Agent acting through its Specified Office as paying
            agent in the United States in respect of the US Notes;

      (c)   the Agent Bank acting through its Specified Office as agent bank for
            the purpose of determining interest payable in respect of the
            Current Issuer Notes;

      (d)   the Registrar acting through its Specified Office as registrar for
            the Current Issuer Notes; and

      (e)   the Transfer Agent acting through its Specified Office as transfer
            agent for the Current Issuer Notes.

2.2   OBLIGATIONS OF AGENTS: The obligations of the Agents under this Agreement
      shall be several and not joint.

2.3   ACCEPTANCE OF APPOINTMENT BY PAYING AGENTS AND AGENT BANK: Each of the
      Principal Paying Agent, the US Paying Agent and the Agent Bank accepts its
      appointment as agent of the Current Issuer and, for the purpose of Clause
      11 (Agents to act for Note Trustee) only, the Note Trustee in relation to
      the Current Issuer Notes and agrees to comply with the provisions of this
      Agreement and to perform its duties under the Current Issuer Conditions.

2.4   ACCEPTANCE OF APPOINTMENT BY REGISTRAR AND TRANSFER AGENT: Each of the
      Registrar and the Transfer Agent accepts its appointment as agent of the
      Current Issuer and, for the purpose of Clause 11 (Agents to act for Note
      Trustee) only, the Note Trustee in relation to the Current Issuer Notes
      and agrees to comply with the provisions of this Agreement and to perform
      its duties under the Current Issuer Conditions.

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3.    THE CURRENT ISSUER NOTES; AUTHENTICATION

3.1   GLOBAL NOTE CERTIFICATES: The US Notes will be initially offered and sold
      pursuant to a Registration Statement filed with the SEC. Each class of the
      US Notes will be issued in fully registered global form and be initially
      represented by a Dollar Global Note Certificate and which, in aggregate,
      will represent the aggregate Principal Amount Outstanding of the US Notes.
      The Reg S Notes will be initially offered and sold outside the United
      States to non-US persons pursuant to Reg S. Each class of the Reg S Notes
      will be issued in fully registered global form and be initially
      represented by a Reg S Global Note Certificate and which, in aggregate,
      will represent the aggregate Principal Amount Outstanding of the Reg S
      Notes. Each Global Note Certificate shall be substantially in the
      respective forms set out in Schedule 1 (Forms of Global Note Certificates)
      to the Current Issuer Trust Deed. The Global Note Certificates shall be
      executed manually or in facsimile by an Authorised Signatory of the
      Current Issuer and authenticated manually by or on behalf of the Registrar
      on the Closing Date.

3.2   INDIVIDUAL NOTE CERTIFICATES: The Global Note Certificates will be
      exchangeable for Individual Note Certificates in the circumstances
      described therein. If the Current Issuer is required to deliver Individual
      Note Certificates pursuant to the terms of the relevant Global Note
      Certificate and the Current Issuer Trust Deed, each Individual Note
      Certificate shall:

      (a)   be printed or typewritten in accordance with all applicable legal
            and stock exchange requirements;

      (b)   be in substantially the form set out in Schedule 2 (Forms of
            Individual Note Certificates) to the Current Issuer Trust Deed;

      (c)   be in registered form and, in each case, in an Authorised
            Denomination;

      (d)   bear a unique serial number; and

      (e)   be executed manually or in facsimile by an Authorised Signatory of
            the Current Issuer and authenticated manually by or on behalf of the
            Registrar.

3.3   FACSIMILE SIGNATURES ON NOTE CERTIFICATES: The Current Issuer may use for
      the purposes of executing any Note Certificate, the facsimile signature of
      any person who at the date of this Agreement was duly authorised to sign
      the same on behalf of the Current Issuer, even if at the time of issue of
      such Note Certificate, such person no longer holds (for whatever reason
      including death) the relevant office and any Note Certificate so executed
      and authenticated will be valid and binding obligations of the Current
      Issuer. No Note Certificate representing a Current Issuer Note shall be
      valid for any purpose until it has been authenticated by or on behalf of
      the Registrar in accordance with this Agreement and the Current Issuer
      Trust Deed.

3.4   AUTHENTICATION AND DEPOSIT OF GLOBAL NOTE CERTIFICATES: The Current Issuer
      shall, on or prior to the Closing Date, deliver each unauthenticated
      Global Note Certificate to or to the order of the Registrar for
      authentication in accordance with Clause 3.1 (Global Note Certificates).
      The Registrar shall, on or about the Closing Date, authenticate each
      Global Note Certificate in accordance with Clause 3.1 (Global Note

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      Certificates). The Reg S Global Note Certificates shall be registered in
      the name of Citivic Nominees Limited as nominee for, and shall be
      deposited on or about the Closing Date with, the Common Depositary. The US
      Global Note Certificates shall be registered in the name of Cede & Co. as
      nominee of DTC, and shall be deposited on or about the Closing Date with,
      the DTC Custodian. The Current Issuer shall also arrange, on written
      request, for such unauthenticated Global Note Certificates as are required
      to enable the Registrar and Transfer Agent to perform their obligations
      under Clause 6 (Replacement Note Certificates) and Clause 9 (Transfers of
      Current Issuer Notes) to be made available to or to the order of the
      Registrar from time to time. Participants in DTC, Euroclear and
      Clearstream, Luxembourg shall have no rights under this Agreement with
      respect to the Global Note Certificates and DTC, Euroclear, Clearstream,
      Luxembourg or their respective nominees may be treated by the Current
      Issuer or any Agent as the absolute owner of each Global Note Certificate
      for all purposes under this Agreement. Notwithstanding the foregoing,
      nothing in this Agreement shall impair, as between DTC, Euroclear and
      Clearstream, Luxembourg and their respective participants, the operation
      of customary practices governing the exercise of the rights of a Holder of
      any Current Issuer Note.

3.5   AVAILABILITY OF INDIVIDUAL NOTE CERTIFICATES: If the Current Issuer is
      required to deliver Individual Note Certificates pursuant to the terms of
      the Global Note Certificates (or either of them) and the Current Issuer
      Trust Deed, the Current Issuer shall promptly arrange for a stock of
      Individual Note Certificates (both bearing and not bearing the Regulation
      S Legend, and, in either case, unauthenticated and with the names of the
      registered holders left blank but otherwise complete and executed on
      behalf of the Current Issuer) to be made available to or to the order of
      the Registrar by the date falling 30 days after the occurrence of the
      relevant event as set out in Clause 3.2 (Individual Note Certificates) of
      the Current Issuer Trust Deed for authentication in accordance with Clause
      3.2 (Individual Note Certificates). The Current Issuer shall also arrange
      for such Individual Note Certificates as are required to enable the
      Registrar and the Transfer Agent to perform their respective obligations
      under Clause 5 (Exchanges of Global Note Certificates and Delivery of
      Individual Note Certificates), Clause 9 (Transfers of Current Issuer
      Notes) and Clause 6 (Replacement Note Certificates) to be made available
      to or to the order of the Registrar and the Transfer Agent from time to
      time.

4.    DUTIES OF AGENTS

4.1   DUTIES OF THE AGENT BANK: The Agent Bank shall perform such duties at its
      Specified Office as are set forth in this Agreement and in the Current
      Issuer Conditions and such other duties as are reasonably incidental
      thereto at the request of the Current Issuer or the Registrar or the
      Paying Agents (or for the purposes of Clause 11 (Agents to act for Note
      Trustee), the Note Trustee) and agrees to comply with the provisions of
      Condition 4 (Interest). In particular and save as hereinafter provided,
      the Agent Bank shall:

      (a)   on each Interest Determination Date determine the Rate of Interest
            for each class of Current Issuer Notes for the relevant Interest
            Period and the Interest Amount in respect of each class of Current
            Issuer Notes on the Payment Date falling at the end of such Interest
            Period in each case in accordance with the Current Issuer
            Conditions;

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      (b)   promptly following each such Interest Determination Date or as soon
            as practicable (or, in any event, within 2 days) after determining
            the Rate of Interest applicable to each class of Current Issuer
            Notes for any period in accordance with the Current Issuer
            Conditions, cause the Rate of Interest and the Interest Amount in
            respect of each class of Current Issuer Notes and the Payment Date
            falling at the end of the relevant Interest Period to be notified to
            the Current Issuer, the Note Trustee, the Account Bank, the Current
            Issuer Account Bank, the Registrar, the Paying Agents, the Current
            Issuer Cash Manager and the London Stock Exchange (or other stock
            exchange or, as the case may be, listing authority that it may be
            notified of pursuant to Clause 4.2 (Listing)), specifying the rates
            upon which the same are based and (where relevant) the names of the
            banks quoting such rates provided that the Agent Bank shall make
            such determination and calculations in relation to each class of
            Current Issuer Notes as provided in Condition 4 (Interest) of the
            Current Issuer Notes;

      (c)   cause notice of the Rate of Interest and Interest Amounts in respect
            of each class of Current Issuer Notes for each Interest Period and
            the related Payment Date to be notified to the London Stock Exchange
            or any other stock exchange or, as the case may be, listing
            authority that it may be notified of pursuant to Clause 4.2
            (Listing) and to be published in accordance with the Current Issuer
            Conditions;

      (d)   determine LIBOR for three-month sterling deposits in accordance with
            Condition 4(C) (Rates of Interest) of the Current Issuer Notes and
            notify the Funding GIC Provider of such rate of interest which shall
            apply for the relevant interest period;

      (e)   save as expressly provided otherwise carry out all other relevant
            calculations (if any) under the Current Issuer Conditions; and

      (f)   maintain such records of the quotations obtained and all rates
            determined and all calculations made by it and make such records
            available for inspection at all reasonable times by the Current
            Issuer, the Current Issuer Cash Manager, the other Agents and the
            Note Trustee.

4.2   LISTING: The Current Issuer Notes, on issue, are expected to be admitted
      to the Official List of the UK Listing Authority and to be admitted to
      trading on the London Stock Exchange. The Current Issuer will advise the
      Agent Bank and the Note Trustee in writing if such listing is withdrawn or
      if the Current Issuer Notes become listed by any other listing authority
      or, as the case may be, admitted to trading on any other stock exchange.

4.3   DUTIES OF THE REGISTRAR: The Registrar and the Transfer Agent shall hold
      or shall procure the holding in safe custody of any unauthenticated Global
      Note Certificates delivered to it in accordance with Clause 3.4
      (Authentication, and Deposit of Global Note Certificates) and any
      Individual Note Certificates delivered to it in accordance with Clause 3.5
      (Availability of Individual Note Certificates) and shall ensure that such
      Global Note Certificates and Individual Note Certificates are
      authenticated and delivered only in accordance with the terms of this
      Agreement, the Current Issuer Trust Deed, the Global Note Certificates and
      the Current Issuer Conditions.

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4.4   AUTHORITY TO AUTHENTICATE: Each of the Registrar, the Transfer Agent or
      their designated agent is authorised and instructed by the Current Issuer
      to authenticate the Note Certificates as may be required to be
      authenticated hereunder by the signature of any of its officers or any
      other person duly authorised for the purpose by the Registrar or (as the
      case may be) the Transfer Agent.

5.    EXCHANGES OF GLOBAL NOTE CERTIFICATES AND DELIVERY OF INDIVIDUAL NOTE
      CERTIFICATES

5.1   EXCHANGE OF GLOBAL NOTE CERTIFICATES FOR INDIVIDUAL NOTE CERTIFICATES AND
      DELIVERY OF INDIVIDUAL NOTE CERTIFICATES: A Global Note Certificate may
      only be exchanged for Individual Note Certificates in the circumstances
      set forth in the Global Note Certificate and set out in Clause 3.3
      (Individual Note Certificates) of the Current Issuer Trust Deed. If any
      Global Note Certificate becomes exchangeable for Individual Note
      Certificates in accordance with its terms, the Registrar shall, subject to
      its having received any certificates required by the terms of the relevant
      Global Note Certificate, against surrender of such Global Note Certificate
      to it or to its order, authenticate and deliver in accordance with this
      Agreement, the Global Note Certificates, the Current Issuer Conditions and
      the Current Issuer Trust Deed, Individual Note Certificates, provided that
      in no circumstances shall the aggregate principal amount of such
      Individual Note Certificates exceed the aggregate principal amount of the
      relevant Global Note Certificate. The Individual Note Certificates so
      issued in exchange for any Global Note Certificate shall be issued in such
      names as the DTC Custodian or the Common Depositary, as the case may be,
      (based on the instructions of DTC, Euroclear and Clearstream, Luxembourg)
      shall instruct the Registrar and the Registrar shall, in accordance with
      this Agreement, the Global Notes, the Current Issuer Conditions and the
      Current Issuer Trust Deed, deliver or cause to be delivered to the persons
      designated in such instructions Individual Note Certificates of the
      relevant class in the appropriate principal amounts and the Registrar will
      enter the names and addresses of such persons on the Register. Individual
      Note Certificates issued in exchange for a Reg S Global Note Certificate
      pursuant to this Clause 5.1 (Exchange of Global Note Certificates for
      Individual Note Certificates) shall bear the Regulation S Legend and shall
      be subject to all restrictions on transfer contained therein to the same
      extent as the Global Note Certificate so exchanged.

5.2   EXCHANGE OF GLOBAL NOTE CERTIFICATES: Global Note Certificates may also be
      exchanged or replaced, in whole or in part, as provided in Clause 6
      (Replacement Note Certificates). Every Global Note Certificate
      authenticated and delivered in exchange for, or in lieu of, another Global
      Note Certificate or any portion thereof, pursuant to Clause 6 (Replacement
      Note Certificates) hereof, shall be authenticated and delivered in the
      form of, and shall be, a Global Note Certificate. A Global Note
      Certificate may not be exchanged for another Global Note Certificate other
      than as provided in this Clause 5 (Exchanges of Global Note Certificates
      and Delivery of Individual Note Certificates).

6.    REPLACEMENT NOTE CERTIFICATES

6.1   DELIVERY OF REPLACEMENTS: Subject to and in accordance with this Clause 6
      (Replacement Note Certificates) and Condition 13 (Replacement of Notes)
      and receipt of replacement Global Note Certificates and/or Individual Note
      Certificates (as the

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      case may be), the Registrar or the Transfer Agent, as the case may be
      shall, upon and in accordance with the instructions of the Current Issuer
      (which instructions may, without limitation, include such terms as to the
      payment of expenses and as to evidence, security and indemnity as the
      Current Issuer, the Transfer Agent and the Registrar may reasonably
      require and otherwise as required by Condition 13 (Replacement of Notes),
      as necessary), complete, authenticate and deliver, or procure the
      authentication and delivery on their behalf of, a Global Note Certificate
      or, as the case may be, an Individual Note Certificate, as a replacement
      for (and being a Current Issuer Note in the same form as) the relevant
      Global Note Certificate or, as the case may be, Individual Note
      Certificate which the Current Issuer has determined to issue as a
      replacement for any Global Note Certificate or Individual Note Certificate
      which has been mutilated or defaced or which is alleged to have been
      destroyed, stolen or lost and the Registrar shall, in addition, as
      promptly as is practicable, enter such details on the Register; provided,
      however, that neither the Registrar nor the Transfer Agent shall deliver
      any Global Note Certificate or Individual Note Certificate as a
      replacement for any Global Note Certificate or Individual Note Certificate
      which has been mutilated or defaced otherwise than against surrender of
      the same and shall not issue any replacement Global Note Certificate or
      Individual Note Certificate until the applicant has furnished the Current
      Issuer, Registrar or Transfer Agent, as the case may be, with such
      evidence and indemnity as the Current Issuer and the Transfer Agent or the
      Registrar (as the case may be) may reasonably require and has paid such
      costs and expenses as may be incurred in connection with such replacement.

6.2   REPLACEMENTS TO BE NUMBERED: Each replacement Global Note Certificate or
      Individual Note Certificate delivered hereunder shall bear a unique serial
      number.

6.3   CANCELLATION AND DESTRUCTION: Each of the Registrar and the Transfer
      Agent, as the case may be, shall cancel and destroy each mutilated or
      defaced Note Certificate surrendered to it in respect of which a
      replacement has been delivered and the Registrar shall, in addition, as
      promptly as is practicable, enter such details on the Register.

6.4   NOTIFICATION: The Registrar or the Transfer Agent, as the case may be,
      shall notify the Current Issuer, the other Agents and the Note Trustee of
      the delivery by it in accordance herewith of any replacement Note
      Certificate, specifying the serial number thereof and the serial number
      (if any and if known) of the Note Certificate which it replaces and
      confirm (if such is the case) that the Note Certificate which it replaces
      has been cancelled or destroyed.

7.    PAYMENTS TO THE PAYING AGENTS

7.1   CURRENT ISSUER TO PAY THE PAYING AGENTS: In order to provide for the
      payment of interest and principal in respect of the Current Issuer Notes
      as the same become due and payable in accordance with the Current Issuer
      Conditions and the Current Issuer Trust Deed, the Current Issuer shall pay
      to the Paying Agents or otherwise cause the Paying Agents to receive on or
      before the date on which such payment becomes due, an amount which is
      equal to the amount of principal and interest then falling due in respect
      of the Current Issuer Notes on such Payment Date.

7.2   MANNER AND TIME OF PAYMENT: The Current Issuer shall, not later than 10.00
      a.m. (London time) or, in the case of any payment in dollars, 10.00 a.m.
      (New York time)

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      on each Payment Date or other date on which any payment of principal and
      interest in respect of the Current Issuer Notes becomes due,
      unconditionally pay or cause to be unconditionally paid to the Paying
      Agents by credit transfer such amounts in sterling, euro or dollars, as
      the case may be, in immediately available funds or, as the case may be,
      same day freely-transferable funds as may be required for the purpose of
      paying interest and (to the extent applicable) principal under the Current
      Issuer Notes (after taking account of any cash then held by the Paying
      Agents and available for the purpose), such amounts to be paid to the
      credit of such accounts of the Paying Agents with such banks (in the case
      of sterling and euro payments, in London and in the case of dollar
      payments, New York) as shall be notified to the Current Issuer, the
      Current Issuer Cash Manager and to the Note Trustee by the Paying Agents
      in writing not less than two weeks before the first payment is due to be
      made to the Noteholders. Each Paying Agent shall notify the Current
      Issuer, the Current Issuer Cash Manager and/or the Note Trustee in
      writing, 15 Business Days prior to any change of those accounts, or any of
      them.

7.3   NOTIFICATION OF PAYMENT BY CURRENT ISSUER: The Current Issuer shall
      procure that each bank or other person effecting payment for it in
      accordance with Clause 7.2 (Manner and Time of Payment) shall by not later
      than 2.00 p.m. (Local time) on the second Business Day before the due date
      of each payment under Clause 7.2 (Manner and Time of Payment) confirm by
      tested telex, facsimile or authenticated SWIFT message to the Paying
      Agents that it has issued irrevocable payment instructions for the
      transfer of the relevant sum due to the relevant account of the Paying
      Agents.

7.4   CONFIRMATION OF AMOUNTS PAYABLE IN RESPECT OF THE CURRENT ISSUER NOTES:
      The Current Issuer shall by not later than 2.00 p.m. (Local time) on the
      second Business Day before each Payment Date or other date on which any
      payment is due under Clause 7.2 (Manner and Time of Payment), notify, or
      procure the notification by the Current Issuer Cash Manager or other
      person on behalf of the Current Issuer to, the Paying Agents, the Note
      Trustee and the Registrar of the amount of interest and/or principal (as
      the case may be) payable to Noteholders in accordance with the Current
      Issuer Conditions in respect of each class of the Current Issuer Notes on
      the Payment Date or other date in question and the apportionment of such
      amount as between principal and interest. All such amounts shall be
      payable subject to and in accordance with the Current Issuer Priority of
      Payments.

7.5   EXCLUSION OF LIENS AND INTEREST: Save as expressly provided otherwise in
      this Agreement, the Paying Agents shall be entitled to deal with each
      amount paid to them under this Clause 7 (Payments to the Paying Agents) in
      the same manner as other amounts paid to them as bankers by their
      customers; provided, however, that:

      (a)   they shall not exercise against the Current Issuer any lien, right
            of set-off or similar claim in respect thereof;

      (b)   they shall not be liable to any person for interest thereon; and

      (c)   funds received by the Paying Agents for the payment of any sums due
            in respect of any Current Issuer Notes shall be segregated only to
            the extent required by law.

7.6   APPLICATION BY PAYING AGENTS: The Paying Agents shall apply (or direct or
      cause the

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      application of) each amount paid to them under this Clause 7 (Payments to
      the Paying Agents) in accordance with Clause 8 (Payments to Noteholders)
      and shall not be obliged to repay any such amount other than as provided
      herein or unless the claim for the relevant payment becomes void under the
      Current Issuer Conditions in which event they shall repay to the Current
      Issuer such portion of such amount as relates to such payment, by paying
      the same by credit transfer in sterling, euro or dollars, as the case may
      be, to such account with such bank as the Current Issuer has by notice to
      the Paying Agents specified for the purpose.

7.7   NOTIFICATION IF FUNDS NOT RECEIVED ON PAYMENT DATE: Each Paying Agent
      shall forthwith notify the Current Issuer, the Current Issuer Cash
      Manager, the Note Trustee and the other Agents if it has not, by the due
      date of payment to it specified in Clause 7.2 (Manner and Time of
      Payment), received unconditionally the full amount required for any
      payment.

8.    PAYMENTS TO NOTEHOLDERS

8.1   PAYMENTS IN RESPECT OF CURRENT ISSUER NOTES: Each Paying Agent acting
      through its Specified Office shall make payments of interest and principal
      in respect of the Current Issuer Notes in accordance with the Current
      Issuer Conditions and so long as the Current Issuer Notes are evidenced by
      Global Note Certificates, the terms thereof, provided however, that:

      (a)   no Paying Agent will make any payment of interest or principal in
            respect of any class of the Current Issuer Notes in an amount which
            is greater than the amount of interest or principal payable in
            accordance with the Current Issuer Conditions in respect of such
            class of Current Issuer Notes and notified to the Paying Agents in
            accordance with Clause 7.4 (Confirmation of Amounts Payable in
            respect of the Current Issuer Notes);

      (b)   whilst the Current Issuer Notes of any class continue to be
            represented by Global Note Certificates, all payments of principal
            or interest (as the case may be) due in respect of such Current
            Issuer Notes will be payable to, or to the order of, DTC or its
            nominee or Euroclear, Clearstream Luxembourg or their nominee;

      (c)   if any Note Certificate is presented or surrendered for payment to
            any Paying Agent and such Paying Agent has delivered a replacement
            therefor or has been notified that the same has been replaced, such
            Paying Agent shall as soon as is reasonably practicable notify the
            Current Issuer in writing of such presentation or surrender and
            shall not make payment against the same until it is so instructed by
            the Current Issuer and has received the amount to be so paid;

      (d)   each Paying Agent shall cancel each Note Certificate against
            presentation and surrender of which it has made full payment and
            shall deliver each such Note Certificate so cancelled by it to the
            Registrar;

      (e)   all payments in respect of the Current Issuer Notes will be
            distributed without deduction or withholding for any taxes, duties,
            assessments or other governmental charges of whatever nature except
            as and then only to the extent required by applicable law, in which
            case each Paying Agent shall be entitled

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            to make such deduction or withholding from any payment which it
            makes hereunder. If any such deduction or withholding is required to
            be made, then neither the Current Issuer nor any other person will
            be obliged to pay any additional amounts in respect thereof; and

      (f)   a Paying Agent shall not be obliged (but shall be entitled) to make
            payments of principal or interest if it has not received the full
            amount of any payment due to it under Clause 7 (Payments to the
            Paying Agents).

8.2   REGISTRAR NOTIFICATION: The Registrar will notify the Paying Agents, not
      later than five days after each Record Date, of the names of all
      Noteholders appearing in the Register on the Record Date and the addresses
      of such Noteholders to which cheques should be posted and whether any
      Noteholder has elected to receive payments by transfer to a bank account
      and, if so, the relevant details of such bank account and the Registrar
      and the Paying Agents shall make or shall procure that payments of
      interest and principal in respect of the Current Issuer Notes will be made
      in accordance with Condition 6 (Payments) either by cheque posted to the
      address of the Noteholder appearing in the Register on the Record Date or,
      if the Noteholder has so elected in accordance with the Current Issuer
      Conditions, by transfer to the relevant dollar, euro or sterling account,
      as the case may be; provided that no payment in respect of any Current
      Issuer Notes will be made on the final date for redemption or payment, or
      such earlier date as the relevant Current Issuer Notes may become
      repayable or payable, in whole unless the Registrar or the Transfer Agent
      confirms to the Paying Agents that the relevant Note Certificate has been
      surrendered to it.

8.3   PARTIAL PAYMENTS: If at any time and for any reason a Paying Agent makes a
      partial payment in respect of any Global Note Certificate or any
      Individual Note Certificate presented for payment to it, such Paying Agent
      shall endorse thereon a statement indicating the amount and the date of
      such payment. In addition, if, on any due date for payment, less than the
      full amount of any principal or interest is paid in respect of the Current
      Issuer Notes, the Registrar will note on the Register a memorandum of the
      amount and date of any payment then made and, if a Global Note Certificate
      or Individual Note Certificate is presented for payment in accordance with
      the Conditions and no payment is then made, the date of presentation of
      such Global Note Certificate or Individual Note Certificate.

8.4   APPROPRIATION BY PAYING AGENT: If any Paying Agent makes any payment in
      accordance with Clause 8.1 (Payments in respect of Current Issuer Notes),
      it shall be entitled to appropriate for its own account out of the funds
      received by it under Clause 7.1 (Current Issuer to pay the Paying Agents)
      an amount equal to the amount so paid by it.

8.5   REIMBURSEMENT BY CURRENT ISSUER: If any Paying Agent makes a payment in
      respect of the Current Issuer Notes at any time at which the relevant
      Paying Agent has not received the full amount of the relevant payment due
      to it under Clause 7.1 (Current Issuer to pay the Paying Agents) and that
      Paying Agent is not able out of the funds received by it under Clause 7.1
      (Current Issuer to pay the Paying Agents) to reimburse such Paying Agent
      therefor by appropriation under Clause 8.4 (Appropriation by Paying
      Agent), the Current Issuer shall from time to time on written demand pay
      to that Paying Agent for account of such Paying Agent:

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<PAGE>

      (a)   the amount so paid out by such Paying Agent and not so reimbursed to
            it; and

      (b)   interest on such amount from the date on which such Paying Agent
            made such payment until the date of reimbursement of such amount,

      provided, however, that any payment under paragraph (a) above shall
      satisfy pro tanto the Current Issuer's obligations under Clause 7.1
      (Current Issuer to pay the Paying Agents) and provided, further, that
      interest shall accrue for the purpose of paragraph (b) (as well after as
      before judgment) on the basis of a year of 365 days and the actual number
      of days elapsed and at a rate per annum specified by the Paying Agents as
      reflecting its cost of funds for the time being in relation to the unpaid
      amount.

9.    TRANSFERS OF CURRENT ISSUER NOTES

9.1   AUTHENTICATION AND DELIVERY OF INDIVIDUAL NOTE CERTIFICATES: The Registrar
      shall authenticate and deliver, or cause the Transfer Agent or other
      designated agent to authenticate and deliver, any Individual Note
      Certificate issued upon a transfer in accordance with this Agreement and
      the Current Issuer Conditions.

9.2   MAINTENANCE OF REGISTER: The Registrar shall maintain the Register at its
      Specified Office or at such other place as the Note Trustee may approve in
      writing, in accordance with the Current Issuer Conditions. The Register
      shall show the aggregate principal amount outstanding of each Current
      Issuer Note, the serial numbers thereof and the respective dates of issue
      of the related Note Certificate(s) and all subsequent transfers,
      cancellations and replacements thereof and the names and addresses of the
      initial holders thereof and the dates of all transfers and changes of
      ownership thereto and the names and addresses of all subsequent holders of
      such Note Certificates. The Registrar shall make the Register available to
      the Current Issuer, the Current Issuer Cash Manager, the Note Trustee, the
      other Agents or any person authorised by any of them at all reasonable
      times during its office hours for their inspection and for the taking of
      copies thereof or extracts therefrom and the Registrar shall deliver to
      such persons all such lists of Noteholders, their addresses and holdings
      as they may request.

9.3   REGISTRATION OF TRANSFERS IN THE REGISTER: The Registrar shall make
      available forms of transfer and receive requests for the transfer of
      Current Issuer Notes and shall make the necessary entries in the Register
      to record all transfers in each case subject to and in accordance with the
      Current Issuer Notes, the Current Issuer Conditions, the Regulations and
      the Current Issuer Trust Deed. In particular the Registrar shall, subject
      to and in accordance with the Current Issuer Conditions and the
      Regulations, within such period of time as is set out in the Current
      Issuer Conditions after the receipt by it of (or the receipt by it of
      notification from the Transfer Agent of delivery to it of) the relevant
      Note Certificates duly endorsed for transfer, authenticate and issue the
      duly dated and completed new Note Certificate(s) and deliver the new Note
      Certificate(s) in the name of the transferee at its Specified Office or
      (at the risk of the transferee) send the new Note Certificate(s) by mail
      to such address as may be specified in the form of transfer and make all
      necessary entries on the Register to record such transfer.

9.4   CLOSED PERIOD: No transfer shall be registered for a period of 15 days
      immediately preceding any due date for payment of principal or interest in
      respect of the Current

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<PAGE>

      Issuer Notes or, as the case may be, the due date for redemption, or as
      the case may be, payment of any of the relevant Current Issuer Notes.

9.5   TRANSFER AGENT TO RECEIVE REQUESTS FOR TRANSFERS OF CURRENT ISSUER NOTES:
      The Transfer Agent shall receive requests for the transfer of Current
      Issuer Notes in accordance with the Current Issuer Conditions and the
      Regulations and assist, if required, in the issue of new Note Certificates
      to give effect to such transfers and, in particular, upon any such request
      being duly made, shall promptly notify the Registrar of:

      (a)   the aggregate principal amount of the Current Issuer Notes to be
            transferred;

      (b)   the name(s) and addressees to be entered on the Register of the
            holder(s) of the new Note Certificate(s) to be issued in order to
            give effect to such transfer; and

      (c)   the place and manner of delivery of the new Note Certificate(s) to
            be delivered in respect of such transfer,

      and shall forward the Note Certificate(s) relating to the Current Issuer
      Note(s) to be transferred (with the relevant form(s) of transfer duly
      completed) to the Registrar with such notification. The Transfer Agent
      shall maintain in safe custody all Note Certificates delivered to and held
      by it hereunder and shall ensure that Current Issuer Notes are transferred
      only in accordance with the Current Issuer Conditions, the Regulations,
      this Agreement and the Current Issuer Trust Deed.

9.6   REGULATIONS: In the event that Individual Note Certificates with respect
      to the Current Issuer Notes are required to be issued, the Registrar shall
      (after consultation with the Current Issuer, the Paying Agents, the
      Transfer Agent and the Note Trustee) promulgate reasonable regulations
      concerning the carrying out of their respective duties (the
      "REGULATIONS"), including the carrying out of transfers and exchanges of
      Current Issuer Notes and the forms and evidence to be proved. All such
      transfers and exchanges will be made subject to the Regulations. The
      initial Regulations are set out in Schedule 2 (Regulations concerning the
      Transfer, Exchange and Registration of the Current Issuer Notes) hereto.
      The Regulations may be changed by the Current Issuer with the prior
      written approval of the Registrar and the Note Trustee, which approval
      shall not be unreasonably withheld or delayed. A copy of the current
      Regulations will be sent by the Registrar to any holder of a Current
      Issuer Note who so requests.

10.   MISCELLANEOUS DUTIES OF THE AGENTS

10.1  MAINTENANCE OF RECORDS: Each of the Agents shall maintain records of all
      documents received by it in connection with its duties hereunder and shall
      make such records available for inspection at all reasonable times by the
      Current Issuer, the Current Issuer Cash Manager, the Note Trustee and the
      other Agents and, in particular, the Registrar shall:

      (a)   maintain a full and complete record of all Note Certificates
            delivered hereunder and of their exchange, redemption, payment,
            partial payment, cancellation, mutilation, defacement, alleged
            destruction, theft, loss or, as the case may be, replacement
            (including all replacement Note Certificates issued

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<PAGE>

            in substitution for any lost, stolen, mutilated, defaced or
            destroyed Note Certificates);

      (b)   make such records available for inspection at all reasonable times
            by the Current Issuer, the Current Issuer Cash Manager, the Note
            Trustee and the other Agents; and

      (c)   make copies of this Agreement, the Current Issuer Trust Deed, the
            Current Issuer Deed of Charge, the Master Definitions Schedule and
            the Current Issuer Master Definitions Schedule available for
            inspection at its Specified Office at all reasonable times.

10.2  CANCELLATION: The Transfer Agent, the Paying Agents or the Registrar (as
      the case may be) shall:

      (a)   procure that all Note Certificates surrendered or delivered to it as
            (i) redeemed in full, (ii) mutilated or defaced, surrendered and
            replaced pursuant to the Current Issuer Conditions, or (iii)
            exchanged, shall forthwith be cancelled on behalf of the Current
            Issuer;

      (b)   shall keep a record of the aggregate principal amount of the Current
            Issuer Notes, and the serial numbers of the Note Certificates, which
            are so cancelled by it; and

      (c)   shall notify the other party or parties (i.e. the Paying Agents, the
            Transfer Agent or the Registrar (as the case may be)) of all action
            taken pursuant to Clause 10.2(a) and 10.2(b).

10.3  INFORMATION FROM AGENTS: The Agents shall make available to the other
      Agents such information as is reasonably required for the maintenance of
      the records referred to in Clause 10.1 (Maintenance of Records).

10.4  CERTIFICATIONS: Each Paying Agent shall promptly copy to the Current
      Issuer, any other Paying Agent and the Note Trustee any certifications
      received by it in accordance with or otherwise in relation to the Current
      Issuer Notes.

10.5  FORWARDING OF COMMUNICATIONS: Each Agent shall promptly forward to the
      Current Issuer and the Note Trustee a copy of any notice or communication
      addressed to the Current Issuer or the Note Trustee by any Noteholder and
      which is received by such Agent.

10.6  SAFE CUSTODY OF NOTE CERTIFICATES: Each of the Registrar and the Transfer
      Agent shall maintain in safe custody all Note Certificates delivered to it
      and held by it hereunder.

10.7  PUBLICATION AND DELIVERY OF NOTICES: The Registrar shall, upon and in
      accordance with the instructions of the Current Issuer and the Note
      Trustee received at least 10 days before the proposed publication date,
      arrange for the publication and delivery in accordance with the Current
      Issuer Conditions of any notice which is to be given to the Noteholders
      and shall promptly supply two copies thereof to the Note Trustee, the
      other Agents, the London Stock Exchange or other stock exchange on which
      the Current Issuer Notes are then listed, (if any) and any Clearing
      System.

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<PAGE>

10.8  DESTRUCTION: The Registrar may destroy each Note Certificate which has
      been cancelled and delivered to it in accordance with the terms of this
      Agreement, in which case it shall promptly furnish the Current Issuer and
      the Note Trustee, on request, a certificate as to such destruction,
      specifying the reason for such destruction and the serial numbers of the
      relevant Note Certificate.

10.9  FORMS OF PROXY AND BLOCK VOTING INSTRUCTIONS: In the event of a Meeting
      (as defined in Schedule 4 (Provisions for Meetings of Noteholders) to the
      Current Issuer Trust Deed) of the Noteholders, the Registrar shall, at the
      request of any Noteholder in accordance with the Current Issuer Trust
      Deed, make available uncompleted and unexecuted Forms of Proxy and issue
      Block Voting Instructions in a form and manner which comply with the
      provisions of the Schedule 4 (Provisions for Meetings of Noteholders) to
      the Current Issuer Trust Deed (except that it shall not be required to
      issue the same less than forty-eight hours before the time for which the
      Meeting or the poll to which the same relates has been convened or
      called). The Registrar shall keep a full record of completed and executed
      Forms of Proxy and Block Voting Instructions issued or received by it and
      will give to the Current Issuer and the Note Trustee not less than
      twenty-four hours before the time appointed for any Meeting or adjourned
      Meeting, full particulars of duly completed Forms of Proxy received by it
      and of all Block Voting Instructions issued by it in respect of such
      Meeting or adjourned Meeting.

10.10 ADDITIONAL DUTIES OF THE REGISTRAR: If Individual Note Certificates are
      required to be delivered pursuant to the terms of any Global Note
      Certificate and the Current Issuer Trust Deed, the Registrar shall:

      (a)   five Business Days prior to each Payment Date notify the Current
            Issuer, the Current Issuer Cash Manager and the other Agents of the
            aggregate principal amount outstanding of the relevant Current
            Issuer Notes;

      (b)   receive any document relating to or affecting the title to any
            Individual Note Certificates including all forms of transfer, forms
            of exchange, probates, letters of administration and powers of
            attorney and maintain proper records of the details of all documents
            received;

      (c)   prepare all such lists of the holders of the Individual Note
            Certificates as may be required by the Current Issuer, the Current
            Issuer Cash Manager, the Paying Agents or the Note Trustee or any
            person authorised by any of them;

      (d)   comply with the proper and reasonable requests of the Current Issuer
            with respect to the maintenance of the Register and provide the
            Paying Agents with such information relating to the Individual Note
            Certificates as they may reasonably require for the proper
            performance of their duties; and

      (e)   carry out such other acts as may reasonably be necessary to give
            effect to the Current Issuer Conditions, this Agreement and the
            Regulations. In carrying out its functions the Registrar shall act
            in accordance with the terms of this Agreement, the Regulations, the
            Current Issuer Conditions and the Current Issuer Trust Deed.

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<PAGE>

      No transfer from a holder of an Individual Note Certificate shall be
      registered for a period of 15 days immediately preceding an Interest
      Payment Date.

10.11 ADDITIONAL DUTIES OF THE TRANSFER AGENT: Subject as provided in and in
      accordance with the Current Issuer Conditions, the Regulations and this
      Agreement or if otherwise requested by the Current Issuer, the Transfer
      Agent shall:

      (a)   on behalf of the Registrar, authenticate Note Certificates in
            accordance with this Agreement upon any transfer of interests in a
            Global Note Certificate, Individual Note Certificate or otherwise
            upon any transfer of any Current Issuer Notes;

      (b)   on behalf of the Registrar, make available forms of transfer, Forms
            of Proxy and any certificates as to beneficial ownership in respect
            of the Current Issuer Notes, receive requests for the transfer of
            Note Certificates, forms of transfer, Forms of Proxy, certificates
            and other evidence, inform the Registrar of the name and address of
            the holder of each such Note Certificate, the serial numbers of any
            Note Certificates, the name and address of the relevant person to be
            inserted in the Register, forward each such document to the
            Registrar and, upon being informed by the Registrar that the
            appropriate entries have been made in the Register and all
            formalities complied with, forthwith upon request by the Registrar
            issue new Note Certificates on behalf of the Registrar representing
            the relevant new Note Certificates to be transferred;

      (c)   keep the Registrar informed of all transfers and exchanges and give
            to the Paying Agents and the Registrar such further information with
            regard to its activities hereunder as may reasonably be required by
            them for the proper carrying out of their respective duties; and

      (d)   carry out such other acts as may be necessary to give effect to the
            Current Issuer Conditions, this Agreement and the Regulations.

11.   AGENTS TO ACT FOR NOTE TRUSTEE

11.1  Actions of Agents after Notice by Note Trustee of a Note Event of Default:
      At any time after a Note Event of Default in respect of the Current Issuer
      Notes or any of them shall have occurred (which shall not have been waived
      by the Note Trustee or remedied to its satisfaction), the Paying Agents,
      the Agent Bank, the Transfer Agent and the Registrar shall, if so required
      by notice in writing given by the Note Trustee to the Current Issuer and
      the Agents (or such of them as are specified in such notice):

      (a)   act thereafter, and until otherwise instructed by the Note Trustee,
            as the Agents of the Note Trustee on the terms mutatis mutandis
            provided herein (with consequential amendments as necessary and save
            that the Note Trustee's liability under any provision herein
            contained for the remuneration indemnification and payment of out-of
            pocket expenses of such Agents shall be limited to the amount for
            the time being held by the Note Trustee on the trusts of the Current
            Issuer Trust Deed which is available to be applied by the Note
            Trustee for such purpose) and thereafter hold all Note Certificates
            and all sums, documents and records held by them in their respective
            capacities in respect of the Current Issuer Notes on behalf of the
            Note Trustee; and/or

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<PAGE>

      (b)   deliver up all Note Certificates and all sums, documents and records
            held by them in respect of the Current Issuer Notes to the Note
            Trustee or as the Note Trustee shall direct in such notice, provided
            that such notice shall be deemed not to apply to any document or
            record which any Agent is obliged not to release by any applicable
            law or regulation.

11.2  WITHDRAWAL OF NOTICE: The Note Trustee may, at any time if a Note Event of
      Default is remedied to the reasonable satisfaction of the Note Trustee
      during any applicable grace period, by notice in writing to the Current
      Issuer and the relevant Agents, withdraw any notice given by the Note
      Trustee pursuant to Clause 11.1 (Actions of Agents after Notice by Note
      Trustee of a Note Event of Default) whereupon such Agents shall act as
      agents of the Current Issuer in accordance with the terms hereof. The
      withdrawal of any notice given by the Note Trustee pursuant to Clause 11.1
      (Actions of Agents after Notice by Note Trustee of a Note Event of
      Default) shall not preclude the Note Trustee from issuing any other or
      further notices pursuant to that Clause on any subsequent occasion and at
      any time after the occurrence of a Note Event of Default, no notice given
      by the Note Trustee pursuant to Clause 11.1 (Actions of Agents after
      Notice by Note Trustee of a Note Event of Default) shall be withdrawn
      except at the absolute discretion of the Note Trustee.

12.   FEES AND EXPENSES

12.1  FEES: The Current Issuer shall pay to each Agent, during the period when
      any of the Current Issuer Notes remains outstanding, such fees as have
      been agreed in writing between the Current Issuer and each Agent in
      respect of the respective services of each Agent hereunder (together with
      any amounts in respect of value added tax (against production of a valid
      tax invoice)). If any agent shall cease to be an Agent hereunder, it shall
      repay to the Current Issuer, the unearned portion, calculated on a pro
      rata basis of the said fees.

12.2  FRONT-END EXPENSES: The Current Issuer shall after receipt of an account
      of such expenses reimburse each Agent for all reasonable out-of-pocket
      expenses incurred by it in the negotiation, preparation and execution of
      this Agreement and for all reasonable expenses (including, without
      limitation, reasonable legal fees and any communication, courier, postage
      and other out-of-pocket expenses) properly incurred in connection with its
      services hereunder (together with any amounts in respect of value added
      tax (against production of a valid tax invoice)) provided that such
      expenses shall not have been incurred as a result of the Agent's
      negligence, wilful misconduct or bad faith, other than such costs and
      expenses as are separately agreed to be reimbursed out of the fees payable
      under Clause 12.1 (Fees).

12.3  TAXES AND EXPENSES OCCASIONED BY DEFAULT: The Current Issuer shall pay all
      stamp, registration and other similar taxes, duties and governmental
      levies of whatsoever nature (including any interest and penalties thereon
      or in connection therewith) which are payable upon or in connection with
      the execution and delivery of this Agreement.

12.4  PAYMENT: All amounts to be paid by the Current Issuer to any Agent under
      this Clause 12 (Fees and Expenses) shall only be payable in accordance
      with and subject to the Current Issuer Priority of Payments which is
      applicable to the Current Issuer at the time of payment.

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<PAGE>

13.   TERMS OF APPOINTMENT

13.1  RIGHTS AND POWERS OF THE PAYING AGENTS:

      (a)   The Paying Agents shall (except as ordered by a court of competent
            jurisdiction or as required by law) in connection with their
            services hereunder (whether or not the relevant Current Issuer Note
            shall be overdue and notwithstanding any notice to the contrary or
            writing shown thereon or any notice of previous loss or theft or of
            trust or other interest therein (other than a duly executed form of
            transfer)) be entitled to treat the registered holder of any Current
            Issuer Note as the absolute owner of such Current Issuer Note for
            all purposes and (save as expressly provided hereunder) make
            payments thereon.

      (b)   Each Agent may in connection with its services hereunder:

            (i)   rely upon the terms of any notice, communication or other
                  document reasonably believed by it to be genuine;

            (ii)  engage and pay for the advice or services of any lawyers or
                  other experts (being an appointee who shall have been
                  previously approved in writing by the Note Trustee) whose
                  advice or services it considers necessary and rely upon any
                  written advice so obtained (and such Agent shall be protected
                  and shall incur no liability as against the Current Issuer in
                  respect of any action taken, or suffered to be taken in good
                  faith, in accordance with such advice except to the extent
                  that such liability arises out of any breach of contract, bad
                  faith, misconduct or negligence on the part of such Agent);

            (iii) assume that the terms of each Global Note Certificate and
                  Individual Note Certificate as issued are correct;

            (iv)  refer any question relating to the ownership of any Note
                  Certificate, or the adequacy or sufficiency of any evidence
                  supplied in connection with the replacement, transfer or
                  exchange of any Note Certificate to the Current Issuer for
                  determination by the Current Issuer and in good faith
                  conclusively rely upon any determination so made; and

            (v)   whenever in the administration of this Agreement it shall deem
                  it desirable that a matter be proved or established prior to
                  taking, suffering or omitting any action hereunder, in the
                  absence of bad faith or negligence or wilful misconduct on its
                  part, accept a certificate signed by any person duly
                  authorised on behalf of the Current Issuer as to any fact or
                  matter prima facie within the knowledge of the Current Issuer
                  as sufficient evidence thereof.

13.2  PROVISION OF SPECIMEN SIGNATURES: The Current Issuer will supply the
      Paying Agents, the Transfer Agent and the Registrar with the names and
      specimen signatures of its Authorised Signatories.

13.3  EXTENT OF DUTIES: Each Agent shall only be obliged to perform the duties
      set out herein and such other duties as are necessarily incidental
      thereto. No Agent shall (i)

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<PAGE>

      be under any fiduciary duty towards or have any relationship of agency or
      trust for or with any person other than the Current Issuer and (to the
      extent expressly provided herein only) the Note Trustee (ii) be
      responsible for or liable in respect of the authorisation, validity or
      legality or enforceability of any Current Issuer Note or any Note
      Certificate (other than in respect of the authentication of Note
      Certificates by it in accordance with this Agreement) or any act or
      omission of any other person including, without limitation, any other
      Agent (except to the extent that such liability arises out of any breach
      of contract, bad faith, misconduct or negligence on the part of any such
      Agent), (iii) be under any obligation towards any person other than the
      Current Issuer, the other Agents and the Note Trustee or (iv) assume any
      relationship of agency or trust for or with any Noteholder except that
      funds received by the Paying Agents for the payment of any sums due in
      respect of any Current Issuer Notes shall be held by them on trust for the
      relevant Noteholders to the extent required by the Trust Indenture Act
      until the expiration of the relevant prescription period under the Current
      Issuer Trust Deed.

13.4  FREEDOM TO TRANSACT: Each Agent may purchase, hold and dispose of
      beneficial interests in a Current Issuer Note and may enter into any
      transaction (including, without limitation, any depository, trust or
      agency transaction) with the Current Issuer or any holders or owners of
      any Current Issuer Notes or with any other party hereto in the same manner
      as if it had not been appointed as the agent of the Current Issuer or the
      Note Trustee in relation to the Current Issuer Notes.

13.5  INDEMNITY IN FAVOUR OF THE AGENTS: The Current Issuer agrees to indemnify
      each Agent for, and to hold such Agent harmless against, any loss,
      liability or expense incurred by it arising out of, or in connection with,
      its acting as agent of the Current Issuer or the Note Trustee in relation
      to the Current Issuer Notes provided that such loss, liability and/or
      expense has not arisen as a result of its own fraud, negligence, wilful
      misconduct or breach of contract. No termination of this Agreement shall
      affect the obligations created by this Clause 13.5 (Indemnity in favour of
      the Agents).

13.6  INDEMNITY IN FAVOUR OF THE CURRENT ISSUER: Each Agent shall severally
      indemnify the Current Issuer and, for the purposes of Clause 11 (Agents to
      act for Note Trustee), the Note Trustee, against any loss, liability,
      reasonable costs and expenses including any claim, action or demand which
      the Current Issuer or Note Trustee may incur or which may be made against
      it as a result of the breach by such Agent of the terms of this Agreement
      or its negligence, breach of contract, bad faith or wilful misconduct or
      that of its officers or employees including any failure to obtain and
      maintain in existence any consent, authorisation, permission or licence
      required by it for the assumption, exercise and performance of its powers
      and duties hereunder. No termination of this Agreement shall affect the
      obligations created by this Clause 13.6 (Indemnity in favour of the
      Current Issuer).

14.   NO LIABILITY FOR CONSEQUENTIAL LOSS

      No Paying Agent shall in any event be liable to the Current Issuer or to
      any other party to the Current Issuer Transaction Documents for any
      special, indirect, punitive or consequential loss or damage of any kind
      whatsoever (including but not limited to lost profits), whether or not
      foreseeable and in each case however caused or arising.

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<PAGE>

15.   TERMINATION OF APPOINTMENT

15.1  RESIGNATION: Subject to Clause 15.8 (Limitations on Resignation and
      Revocation), each Paying Agent in respect of any or all classes of Current
      Issuer Notes or the Agent Bank, the Registrar or the Transfer Agent may
      resign its appointment upon not less than 60 days' written notice to the
      Current Issuer, the Current Issuer Cash Manager and the Note Trustee to
      that effect, provided, however, that

      (a)   if such resignation would otherwise take effect less than 30 days
            before or after the maturity date or other date for redemption of
            the Current Issuer Notes or any Payment Date in relation to the
            Current Issuer Notes, it shall not take effect until the thirtieth
            day following such date; and

      (b)   in the case of the Registrar, the only remaining Paying Agent with
            its Specified Office in the United Kingdom, the Agent Bank or the
            only remaining Paying Agent with its Specified Office outside the
            United Kingdom, such resignation shall not take effect until a
            successor has been duly appointed in accordance with Clause 15.4
            (Additional and Successor Agents) and notice of such appointment has
            been given to the Noteholders.

15.2  REVOCATION: Subject to Clause 15.7 (Maintenance of a Paying Agent in the
      European Union) and Clause 15.8 (Limitations on Resignation and
      Revocation), the Current Issuer may at any time with the prior written
      consent of the Note Trustee revoke its appointment of any Agent as its
      agent in relation to the Current Issuer Notes by not less than 60 days'
      written notice to the Note Trustee and such Agent whose appointment is to
      be revoked, which notice shall expire not less than 30 days before a
      Payment Date, provided, however, that in the case of the Registrar, the
      Principal Paying Agent, the Agent Bank or the only remaining Paying Agent
      with its Specified Office outside the United Kingdom, such resignation
      shall not take effect until a successor has been duly appointed
      consistently with Clause 15.4 (Additional and Successor Agents) and notice
      of such appointment has been given to the Noteholders.

15.3  AUTOMATIC TERMINATION: The appointment of any Agent shall terminate
      forthwith if at any time:

      (a)   such Agent becomes incapable of acting;

      (b)   a secured party takes possession, or a receiver, manager or other
            similar officer is appointed, of the whole or any part of the
            undertaking, assets and revenues of such Agent;

      (c)   such Agent admits in writing its insolvency or inability to pay its
            debts as they fall due or suspends payments of its debts;

      (d)   an administrator or liquidator of such Agent or the whole or any
            part of the undertaking, assets and revenues of such Agent is
            appointed (or application for any such appointment is made);

      (e)   such Agent takes any action for a readjustment or deferment of any
            of its obligations or makes a general assignment or an arrangement
            or composition

                                       22

<PAGE>

            with or for the benefit of its creditors or declares a moratorium in
            respect of any of its indebtedness;

      (f)   an order is made or an effective resolution is passed for the
            winding up of such Agent; or

      (g)   any event occurs which has an analogous effect to any of the
            foregoing in relation to such Agent.

      On the occurrence of any of the above, the relevant Agent shall forthwith
      notify the Current Issuer, the Current Issuer Cash Manager, the Note
      Trustee and the Paying Agents. If the appointment of the Registrar or the
      only remaining Principal Agent with a Specified Office in the United
      Kingdom, the Agent Bank or the only remaining Paying Agent with its
      Specified Office outside of the United Kingdom is terminated in accordance
      with the preceding sentence, the Current Issuer shall forthwith appoint a
      successor in accordance with Clause 15.4 (Additional and Successor
      Agents).

15.4  ADDITIONAL AND SUCCESSOR AGENTS: The Current Issuer may with the prior
      written approval of the Note Trustee appoint a successor principal paying
      agent, US paying agent, agent bank or registrar and additional or
      successor transfer agents or paying agents and shall forthwith give notice
      of any such appointment to the continuing Agents, the Noteholders, the
      Current Issuer Cash Manager and the Note Trustee, whereupon the successor
      or additional agents shall acquire and become subject to the same rights
      and obligations between themselves as if they had entered into an
      agreement in the form mutatis mutandis of this Agreement.

15.5  AGENT MAY APPOINT SUCCESSOR: If any Agent gives notice of its resignation
      in accordance with Clause 15.1 (Resignation) and by the tenth day before
      the expiration of such notice a successor agent has not been duly
      appointed in accordance with Clause 15.4 (Additional and Successor
      Agents), such Agent may itself, following such consultation with the
      Current Issuer as is practicable in the circumstances and with the prior
      written approval of the Note Trustee and the Current Issuer (provided such
      failure to appoint was not due to default by the Current Issuer), appoint
      as its successor agent any reputable and experienced bank or financial
      institution and give notice of such appointment to the Current Issuer, the
      Note Trustee, the Current Issuer Cash Manager, the remaining Agents and
      the Noteholders.

15.6  RIGHTS OF SUCCESSOR AGENT: Upon the execution by the Current Issuer and
      any successor agent of an instrument effecting the appointment of a
      successor agent, such successor agent shall, without any further act, deed
      or conveyance, become vested with all the authority, rights, powers,
      trusts, immunities, duties and obligations of its predecessor with like
      effect as if originally named as the relevant agent herein and such
      predecessor, upon payment to it of the pro rata proportion of its
      administration fee and disbursements then unpaid (if any), shall thereupon
      become obliged to transfer, deliver and pay over, and such successor agent
      shall be entitled to receive, all monies, records and documents (including
      any Note Certificates of the relevant class or classes of Current Issuer
      Notes, if any) held by such predecessor hereunder.

15.7  MAINTENANCE OF A PAYING AGENT IN THE EUROPEAN UNION: The Current Issuer
      undertakes that, if the conclusions of the ECOFIN Council meeting of 26-27
      November 2000 are implemented, it shall ensure that it maintains a Paying
      Agent in a

                                       23

<PAGE>

      European Union member state that will not be obliged to withhold or deduct
      tax pursuant to the Directive.

15.8  LIMITATIONS ON RESIGNATION AND REVOCATION: Notwithstanding Clause 15.1
      (Resignation) and Clause 15.2 (Revocation):

      (a)   if at any time there should be only one Paying Agent, no resignation
            by or termination of the appointment of the Paying Agent shall take
            effect until a successor paying agent in respect of the affected
            class or classes of Current Issuer Notes approved in writing by the
            Note Trustee has been appointed on terms previously approved in
            writing by the Note Trustee;

      (b)   no resignation by or termination of the appointment of any Paying
            Agent shall take effect if as a result of such resignation or
            termination there would cease to be a Paying Agent in respect of the
            affected class or classes of Current Issuer Notes having a Specified
            Office in London or New York (as the case may be);

      (c)   no appointment or termination of the appointment of a Paying Agent
            shall take effect unless and until notice thereof shall have been
            given to the relevant Noteholders in accordance with the Current
            Issuer Conditions;

      (d)   no resignation by or revocation of the appointment of the Agent Bank
            shall take effect until a new Agent Bank having its Specified Office
            in London has been appointed;

      (e)   no resignation by or termination of the appointment of the Registrar
            shall take effect until a new Registrar having its Specified Office
            in London has been appointed; and

      (f)   the appointment of any additional Paying Agent shall be mutatis
            mutandis on the terms and subject to the conditions of this
            Agreement and each of the parties hereto shall co-operate fully to
            do all such further acts and things and execute any further
            documents as may be necessary or desirable to give effect to the
            appointment of such Paying Agent.

15.9  EFFECT OF RESIGNATION, REVOCATION AND TERMINATION: Upon any resignation or
      revocation taking effect under Clause 15.1 (Resignation) or Clause 15.2
      (Revocation) or any termination under Clause 15.3 (Automatic Termination),
      the relevant Agent shall:

      (a)   without prejudice to any accrued liabilities and obligations, be
            released and discharged from any further obligations under this
            Agreement (save that it shall remain entitled to the benefit of, and
            subject to, Clauses 12 (Fees and Expenses), Clause 13 (Terms of
            Appointment) and Clause 15 (Termination of Appointment));

      (b)   repay to the Current Issuer such part of any fee paid to it in
            accordance with Clause 12.1 (Fees) as shall relate to any period
            thereafter;

      (c)   deliver to the Current Issuer and to its successor agent a copy,
            certified as true and up-to-date by an officer of such Agent of the
            records maintained by it pursuant to this Agreement;

                                       24

<PAGE>

      (d)   forthwith transfer all monies and papers (including any unissued
            Note Certificates held by it hereunder) to its successor in that
            capacity and provide reasonable assistance to its successor for the
            discharge by it of its duties and responsibilities hereunder; and

      (e)   in the case of any Paying Agent, pay to the successor paying agent
            any amount held by it for payment of principal or interest in
            respect of the relevant Current Issuer Notes.

15.10 CHANGE OF SPECIFIED OFFICE: If any Agent shall determine to change its
      Specified Office (which, in the case of each Paying Agent, may only be
      effected within the same city where each Paying Agent currently has its
      Specified Office), it shall give to the Current Issuer and the Note
      Trustee written notice of such determination giving the address of the new
      Specified Office and stating the date on which such change is to take
      effect, which date shall not be less than 30 days after the date of such
      notice, provided that no such notice shall take effect within the period
      of 30 days before or after any Payment Date. The Current Issuer shall,
      within 40 days of receipt of such notice (unless the appointment is
      pursuant to a revocation or termination under Clause 15.2 (Revocation) or
      Clause 15.3 (Automatic Termination) above on or prior to the date of such
      change), give to the Noteholders notice of such change as approved by the
      Note Trustee and of the address of the Specified Office in accordance with
      the Current Issuer Conditions but the costs of giving such notice shall be
      borne by such Agent changing its office and not by the Current Issuer.

15.11 MERGER: Any legal entity into which any Agent is merged or converted or
      any legal entity resulting from any merger or conversion to which such
      Agent is a party shall, to the extent permitted by applicable law, be the
      successor to such Agent without any further formality, whereupon the
      Current Issuer, the Note Trustee, the other Agents and such successor
      shall acquire and become subject to the same rights and obligations
      between themselves as if they had entered into an agreement in the form
      mutatis mutandis of this Agreement. Written notice of any such merger or
      conversion shall forthwith be given by such successor to the Current
      Issuer, the Note Trustee and the other Agents.

16.   NON-PETITION AND LIMITED RECOURSE

16.1  LIMITED RECOURSE: Each party hereto agrees that notwithstanding any other
      provisions hereof, all payments to be made by the Current Issuer under
      this Agreement will be payable only from, and to the extent of, the sums
      paid to, or net proceeds recovered by or on behalf of, the Current Issuer
      or the Note Trustee in respect of the Current Issuer Charged Property less
      any amount which is required to be paid to any other person in priority to
      or in the same priority as the relevant party hereto subject to and in
      accordance with the Current Issuer Priority of Payments and there will be
      no other assets of the Current Issuer available for any further payments
      and following the realisation of the Current Issuer Charged Property and
      the distribution of the proceeds thereof in accordance with the Current
      Issuer Deed of Charge none of the parties hereto shall be entitled to take
      any further steps against the Current Issuer to recover any sums due
      hereunder but still unpaid and all outstanding claims in respect of such
      sums due but still unpaid shall be extinguished. The parties hereto look
      solely to such sums and proceeds and the rights of the Current Issuer in
      respect of the Current Issuer Charged Property (net as aforesaid) for
      payments to be

                                       25

<PAGE>

      made by the Current Issuer. The obligations of the Current Issuer to make
      such payments hereunder will be limited to such sums and the proceeds of
      realisation of the Current Issuer Charged Property (net as aforesaid) and
      the parties hereto will have no further recourse in respect thereof.

16.2  NON-PETITION: Each of the Agents hereby covenants and agrees with the
      Current Issuer and the Note Trustee that:

      (a)   only the Note Trustee may enforce the security created in favour of
            the Note Trustee by the Current Issuer Deed of Charge in accordance
            with its provisions; and

      (b)   save as provided in the Current Issuer Trust Deed, it shall not take
            any steps for the purpose of recovering any sums due under this
            Agreement or enforcing any rights arising out of this Agreement or
            institute against the Current Issuer or join any other person in
            instituting against the Current Issuer any winding-up,
            administration, reorganisation, liquidation, bankruptcy, insolvency
            or other proceedings of the Current Issuer for so long as the
            Current Issuer Notes are outstanding and until two years and one day
            has elapsed after all amounts outstanding under the Current Issuer
            Secured Obligations have been paid in full.

16.3  PAYMENT TO NOTE TRUSTEE: Each of the Agents hereby undertakes with the
      Note Trustee and the Current Issuer that if, whether in the liquidation of
      the Current Issuer or otherwise any payment is made to or amount recovered
      by any Agent otherwise than in accordance with the Current Issuer Deed of
      Charge, the amount so paid or recovered shall be paid by such Agent to the
      Note Trustee.

17.   NOTICES

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

      (a)   in the case of the Current Issuer, to Granite Mortgages 02-2 plc,
            c/o Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile number
            020 7606 0643) for the attention of: Company Secretary with a copy
            to Northern Rock plc, Northern Rock House, Gosforth, Newcastle upon
            Tyne NE3 4PL (facsimile number 0191 213 2203) for the attention of
            the Group Secretary;

      (b)   in the case of the Note Trustee, to The Bank of New York (London
            Branch) at One Canada Square, 48th Floor, London E14 5AI (facsimile
            number 020 7964 6061/6399) for the attention of: Global Structured
            Products Unit (Corporate Trust);

                                       26

<PAGE>

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

      (d)   in the case of any Agent, to it at the address or fax number
            specified against its name in Schedule 1 (Specified Offices of the
            Agents) hereto (or in the case of an Agent not originally a party
            hereto, specified by notice to the parties hereto at the time of its
            appointment) for the attention of the person or department specified
            therein,

      or to such other address or facsimile number or for the attention of such
      other person or entity as may from time to time be notified by any party
      to the others by fifteen days prior written notice in accordance with the
      provisions of this Clause 17 (Notices).

18.   THIRD PARTY RIGHTS

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

19.   TIME OF THE ESSENCE

      Any date or period specified in this Agreement may be postponed or
      extended by mutual agreement among the parties, but as regards any date or
      period originally fixed or so postponed or extended, time shall be of the
      essence.

20.   VARIATION AND WAIVER

      No variation or waiver of this Agreement shall be effective unless it is
      in writing and signed by a duly authorised signatory of each party. No
      single or partial exercise of, or failure or delay in exercising, any
      right under this Agreement shall constitute a waiver or preclude any other
      or further exercise of that or any other right.

21.   EXECUTION IN COUNTERPARTS; SEVERABILITY

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

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

22.   GOVERNING LAW AND JURISDICTION; PROCESS AGENT; APPROPRIATE FORUM

22.1  GOVERNING LAW: This Agreement is governed by, and shall be construed in
      accordance with, English law.

                                       27

<PAGE>

22.2  JURISDICTION: The parties hereto irrevocably agree for the benefit of the
      Current Issuer and the Note Trustee that the courts of England are to have
      jurisdiction to settle any suit, action or proceeding, and to settle any
      disputes which may arise out of or in connection with this Agreement and,
      for such purposes, irrevocably submit to the jurisdiction of such courts.

22.3  PROCESS AGENT: The US Paying Agent irrevocably and unconditionally
      appoints the Principal Paying Agent at its registered office for the time
      being as its agent for service of process in England in respect of any
      proceedings in respect of this Agreement and undertakes that in the event
      of the Principal Paying Agent ceasing so to act it will appoint another
      person with a registered office in London as its agent for service of
      process.

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

23.   EXCLUSION OF LIABILITY

      The Note Trustee is a party to this Agreement only to receive the benefit
      of the provisions in this Agreement and has no liability under this
      Agreement.

AS WITNESS the hands of the duly authorised representatives of the parties
hereto the day and year first before written.

                                       28

<PAGE>

                                   SCHEDULE 1
                         SPECIFIED OFFICES OF THE AGENTS

THE PRINCIPAL PAYING AGENT

Citibank, N.A.
5 Carmelite Street
London EC4Y 0PA

THE US PAYING AGENT

Citibank, N.A.
Global Agency and Trust
111 Wall Street, 14th Floor
New York N.Y. 10043
U.S.A.

THE AGENT BANK

Citibank, N.A.
5 Carmelite Street
London EC4Y 0PA

THE REGISTRAR

Citibank, N.A.
5 Carmelite Street
London EC4Y 0PA

THE TRANSFER AGENT

Citibank, N.A.
5 Carmelite Street
London EC4Y 0PA

THE NOTE TRUSTEE

The Bank of New York (London Branch)
One Canada Square
48th Floor
London E14 5AL

                                       29

<PAGE>

                                   SCHEDULE 2
   REGULATIONS CONCERNING THE TRANSFER, EXCHANGE AND REGISTRATION OF THE
                              CURRENT ISSUER NOTES

1.   The Current Issuer Notes are in their respective Authorised Denominations
     of(pound)1,000,(pound)10,000, $1,000, $10,000,(euro)1,000 or(euro)10,000
     depending on the currency of denomination, or in such other denominations
     as the Note Trustee shall determine and notify to the relevant Noteholders.
     Each Dollar Note shall be held in an Authorised Dollar Holding, each
     Sterling Note shall be held in an Authorised Sterling Holding and each Euro
     Note shall be held in an Authorised Euro Holding.

2.   Subject to paragraphs 4, 6 and 11 below, a Current Issuer Note may be
     transferred by execution of the relevant form of transfer under the hand of
     the transferor or, where the transferor is a corporation, under its common
     seal or under the hand of two of its officers duly authorised in writing.
     Where the form of transfer is executed by an attorney or, in the case of a
     corporation, under seal or under the hand of two of its officers duly
     authorised in writing, a copy of the relevant power of attorney certified
     by a financial institution in good standing or a notary public or in such
     other manner as the Registrar may require or, as the case may be, copies
     certified in the manner aforesaid of the documents authorising such
     officers to sign and witness the affixing of the seal must be delivered
     with the form of transfer. In this Schedule, "transferor" shall, where the
     context permits or requires, include joint transferors and shall be
     construed accordingly.

3.   The Note Certificate issued in respect of a Current Issuer Note to be
     transferred or exchanged must be surrendered for registration, together
     with a duly completed and executed form of transfer (including any
     certification as to compliance with restrictions on transfer included in
     such form of transfer) at the Specified Office of the Registrar or the
     Transfer Agent, together with such evidence as the Registrar or (as the
     case may be) the Transfer Agent may reasonably require to prove the title
     of the transferor and the authority of the persons who have executed the
     form of transfer. The signature of the person effecting a transfer or
     exchange of a Current Issuer Note shall conform to any list of duly
     authorised specimen signatures supplied by the holder of such Current
     Issuer Note or be certified by a financial institution in good standing,
     notary public or in such other manner as the Registrar or the Transfer
     Agent may require.

4.   No Noteholder may require the transfer of a Current Issuer Note to be
     registered during the period of 15 calendar days ending on a Payment Date
     in respect of such Current Issuer Note.

5.   No Noteholder which has executed a Form of Proxy in relation to any Meeting
     may require the transfer of a Current Issuer Note covered by such Form of
     Proxy to be registered until the earlier of the conclusion of the Meeting
     and its adjournment for want of quorum.

6.   The executors or administrator of a deceased holder of a Current Issuer
     Note (not being one of several joint holders) and, in the case of the death
     of one or more of several joint holders, the survivor or survivors of such
     joint holders, shall be the only

                                       30

<PAGE>

     persons recognised by the Current Issuer as having any title to such
     Current Issuer Note.

7.   Any person becoming entitled to any Current Issuer Notes in consequence of
     the death or bankruptcy of the holder of such Current Issuer Notes may,
     upon producing such evidence that he holds the position in respect of which
     he proposes to act under this paragraph or of his title as the Registrar or
     the Transfer Agent shall require (including legal opinions), become
     registered himself as the holder of such Current Issuer Notes or, subject
     to the provisions of these Regulations, the Current Issuer Notes and the
     relevant Current Issuer Conditions as to transfer, may transfer such
     Current Issuer Notes. The Current Issuer, the Transfer Agent and the
     Registrar shall be at liberty to retain any amount payable upon the Current
     Issuer Notes to which any person is so entitled until such person shall be
     registered as aforesaid or shall duly transfer such Current Issuer Notes.

8.   Unless otherwise required by him and agreed by the Current Issuer and the
     Registrar, the holder of any Current Issuer Notes shall be entitled to
     receive only one Note Certificate in respect of his holding.

9.   The joint holders of any Current Issuer Note shall be entitled to one Note
     Certificate only in respect of their joint holding which shall, except
     where they otherwise direct, be delivered to the joint holder whose name
     appears first in the Register in respect of the joint holding.

10.  Where there is more than one transferee (to hold other than as joint
     holders), separate forms of transfer (obtainable from the specified office
     of the Registrar or the Transfer Agent) must be completed in respect of
     each new holding.

11.  A holder of Current Issuer Notes may transfer all or part of his holding
     provided that both the principal amount of Current Issuer Notes transferred
     and the principal amount of the balance transferred are in an amount equal
     to an Authorised Denomination. Where a holder of Current Issuer Notes has
     transferred part only of his holding comprised therein, there shall be
     delivered to him a new Note Certificate in respect of the balance of such
     holding.

12.  The Current Issuer, the Transfer Agent and the Registrar shall, save in the
     case of the issue of replacement Current Issuer Notes pursuant to the
     Current Issuer Conditions, make no charge to the holders for the
     registration of any holding of Current Issuer Notes or any transfer thereof
     or for the issue of any Current Issuer Notes or for the delivery thereof at
     the Specified Office of the Transfer Agent or the Registrar or by uninsured
     post to the address specified by the holder, but such registration,
     transfer, issue or delivery shall be effected against such indemnity from
     the holder or the transferee thereof as the Registrar or the Transfer Agent
     may require in respect of any tax or other duty of whatever nature which
     may be levied or imposed in connection with such registration, transfer,
     issue or delivery.

13.  Provided a transfer of a Current Issuer Note is duly made in accordance
     with all applicable requirements and restrictions upon transfer and the
     Note Certificate(s) issued in relation to such Current Issuer Note
     transferred are presented to the Transfer Agent and/or the Registrar in
     accordance with the Current Issuer Paying Agency and Agent Bank Agreement
     and these Regulations and subject to unforeseen

                                       31

<PAGE>

     circumstances beyond the control of the Transfer Agent or the Registrar
     arising, the Transfer Agent and the Registrar will, within five business
     days of the request for transfer being duly made, deliver at its Specified
     Office or despatch to the transferee by uninsured post (at the request and
     risk of the transferee) to such address as the transferee entitled to the
     Current Issuer Notes in relation to which such Note Certificate is issued
     may have specified, a Note Certificate in respect of which entries have
     been made in the Register, all formalities complied with and the name of
     the transferee completed on the Note Certificate by or on behalf of the
     Registrar; and, for the purposes of this paragraph, "business day" means a
     day (other than a Saturday or a Sunday) on which commercial banks are open
     for business (including dealings in foreign currencies) in the cities in
     which the Registrar and the Transfer Agent have their respective Specified
     Office.

14.  No transfer may be effected unless:

     (a)  such Current Issuer Note is transferred in a transaction that does not
          require registration under the Securities Act and is not in violation
          of the United States Investment Company Act of 1940;

     (b)  such transfer is effected in accordance with the provision of any
          restrictions on transfer specified in the legends (if any) set forth
          on the face of the Note Certificate issued in relation to such Current
          Issuer Note;

     (c)  the transferee delivers to the Registrar or the Transfer Agent a form
          of transfer (including any certification as to compliance with
          restrictions on transfer included in such form of transfer) endorsed
          on the Note Certificate issued in relation to such Current Issuer
          Note; and

     (d)  if the Current Issuer so requests, the Transfer Agent and the
          Registrar receive an opinion of counsel satisfactory to all of them.

15.  Except for in connection with the issue of replacement Note Certificates
     pursuant to Clause 6 (Replacement Note Certificates) hereof, no charge
     shall be made to the Noteholders in connection with, inter alia,

     (a)  the registration of any holding of Current Issuer Notes; or

     (b)  the transfer of Current Issuer Notes subject to any registration,
          transfer, issue or delivery which may be effected against an indemnity
          from the Noteholder or transferee as any relevant Paying Agent or, as
          the case may be, the Transfer Agent may require in respect of any tax
          or other duty levied or imposed in connection with such registration,
          transfer, issue or delivery.

16.  If Current Issuer Notes are issued upon the transfer, exchange or
     replacement of Note Certificates not bearing the Regulation S Legend (as
     defined below), the Note Certificates so issued shall not bear the
     Regulation S Legend. If Note Certificates are issued upon the transfer,
     exchange or replacement of Note Certificates bearing the Regulation S
     Legend, the Note Certificates so issued shall bear the Regulation S Legend.
     Each Note Certificate issued in exchange therefor shall bear a legend (the
     "REGULATION S LEGEND") in substantially the following form:

                                       32

<PAGE>

     "THIS CURRENT ISSUER NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
     UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR
     THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND, AS A MATTER OF
     U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER OF THE CLOSING
     DATE AND THE COMMENCEMENT OF THE OFFERING OF THE CURRENT ISSUER NOTES MAY
     NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE UNITED STATES
     OR TO A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT)
     EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
     SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
     STATE OF THE UNITED STATES."

17.  Notwithstanding any provision to the contrary herein, so long as Current
     Issuer Notes are represented by a Global Note Certificate which is held by
     or on behalf of DTC, transfers, exchanges or replacements of the Current
     Issuer Notes represented by such Global Note Certificate shall only be made
     in accordance with the legends relating to DTC set forth thereon.

                                       33

<PAGE>

                                 EXECUTION PAGE

Executed for and on behalf of:
GRANITE MORTGAGES 02-2 PLC
By:

Name: CARL FLINN
Title: ALTERNATE DIRECTOR

Executed for and on behalf of:
CITIBANK, N.A.
AS THE PRINCIPAL PAYING AGENT, THE AGENT BANK,
THE REGISTRAR AND THE TRANSFER AGENT AND THE
US PAYING AGENT
By:

Name: DAVID MARES
Title: VICE PRESIDENT

Executed for and on behalf of:
CITIBANK, N.A.(New York Branch)
By:

Name: DAVID MARES
Title:   VICE PRESIDENT

Executed for and on behalf of:
THE BANK OF NEW YORK
By:

Name: KATE RUSSELL
Title:  ASSISTANT VICE PRESIDENT

                                       34EXHIBIT 4.9
                                                                  Execution Copy

                             DATED 23 SEPTEMBER 2002

                                NORTHERN ROCK PLC
                         as Current Issuer Cash Manager

                           GRANITE MORTGAGES 02-2 PLC
                                as Current Issuer

                                     - AND -

                              THE BANK OF NEW YORK
                                 as Note Trustee

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

                        ISSUER CASH MANAGEMENT AGREEMENT

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

                           SIDLEY AUSTIN BROWN & WOOD
                              1 THREADNEEDLE STREET
                                 LONDON EC2R 8AW
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937
                                   REF: 551152

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                                Table of Contents

                                                                            Page
                                                                            ----

1.       Definitions and Interpretation........................................1

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

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

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

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

6.       No Liability..........................................................7

7.       Costs and Expenses....................................................8

8.       Information...........................................................8

9.       Remuneration.........................................................10

10.      Covenants, Representations and Warranties of Current Issuer Cash
         Manager..............................................................11

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

12.      Termination..........................................................12

13.      Further Assurances...................................................15

14.      Miscellaneous........................................................15

15.      Confidentiality......................................................16

16.      No Partnership.......................................................17

17.      Assignment...........................................................17

18.      The Note Trustee.....................................................17

19.      Non Petition Covenant; Limited Recourse..............................17

20.      Amendments and Waiver................................................18

21.      Notices..............................................................19

22.      Third Party Rights...................................................20

23.      Execution in Counterparts; Severability..............................20

24.      Governing Law and Jurisdiction; Appropriate Forum....................20

SCHEDULE 1  The Current Issuer Cash Management Services.......................21
SCHEDULE 2  Cash Management and Maintenance of Ledgers........................24

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                                Table of Contents
                                  (continued)

SCHEDULE 3  Form of Issuer Quarterly Report...................................40
SCHEDULE 4  Controlled Amortisation Amount/Target Balance.....................44
SCHEDULE 5  Current Issuer Cash Manager Representations and Warranties........47

                                       ii
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THIS ISSUER CASH MANAGEMENT AGREEMENT is made on 23 September 2002

BETWEEN:

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

(2)      GRANITE MORTGAGES 02-2 PLC (registered number 4482804), a public
         limited company incorporated under the laws of England and Wales whose
         registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX
         as the Current Issuer; and

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

WHEREAS:

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

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

IT IS HEREBY AGREED as follows:

1.       DEFINITIONS AND INTERPRETATION

1.1      The provisions of:

         (a)      the Master Definitions Schedule as amended and restated by
                  (and appearing in Appendix 1 to) the Master Definitions
                  Schedule Third Amendment Deed made on 23 September 2002
                  between, among others, the Seller, Funding and the Mortgages
                  Trustee, and

         (b)      the Issuer Master Definitions Schedule signed for the purposes
                  of identification by Sidley Austin Brown & Wood and Allen &
                  Overy on 23 September 2002,

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

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2.       APPOINTMENT OF CURRENT ISSUER CASH MANAGER

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

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

2.3      APPOINTMENT CONDITIONAL UPON ISSUANCE OF CURRENT ISSUER NOTES: The
         appointment pursuant to Clause 2.1 (Appointment) is conditional upon
         the issue of the Current Issuer Notes and the making of the Current
         Issuer Intercompany Loan under the Current Issuer Intercompany Loan
         Agreement and shall take effect upon and from the Closing Date
         automatically without any further action on the part of any person,
         PROVIDED THAT if the issue of the Current Issuer Notes has not occurred
         by 31 October 2002, or such later date as the Current Issuer and the
         Lead Managers may agree, this Agreement shall cease to be of further
         effect.

3.       THE CURRENT ISSUER CASH MANAGEMENT SERVICES

3.1      GENERAL: The Current Issuer Cash Manager shall provide the services set
         out in this Agreement (including, without limitation, Schedules 1 and 2
         attached hereto) (the "CURRENT ISSUER CASH MANAGEMENT SERVICES").

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

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

                                       2
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         extent arising from the Current Issuer Cash Manager failing to perform
         any of its obligations under any of the Transaction Documents).

3.4      LIABILITY OF CURRENT ISSUER CASH MANAGER:

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

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

4.       PAYMENTS, ACCOUNTS, LEDGERS

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

4.2      CURRENT ISSUER LEDGERS:

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

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

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

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<PAGE>

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

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

4.3      PAYMENTS:

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

                  (i)      all Current Issuer Revenue Receipts;

                  (ii)     all Current Issuer Principal Receipts;

                  (iii)    all amounts received by the Current Issuer pursuant
                           to the Current Issuer Basis Rate Swap Agreement and
                           the Current Issuer Currency Swap Agreements; and

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

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

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

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

                                       4
<PAGE>

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

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

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

4.4      WITHDRAWALS:

         (a)      The Current Issuer Cash Manager may make withdrawals on behalf
                  of the Current Issuer from the Current Issuer Transaction
                  Accounts, but only until receipt of a copy of a Current Issuer
                  Note Enforcement Notice served by the Note Trustee on the
                  Current Issuer, as permitted by this Agreement, the Current
                  Issuer Trust Deed, the Current Issuer Bank Account Agreement
                  and the Current Issuer Deed of Charge, but shall not in
                  carrying out its functions as Current Issuer Cash Manager
                  under this Agreement otherwise make withdrawals from the
                  Current Issuer Transaction Accounts.

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

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

                                       5
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5.       PAYMENTS UNDER CURRENT ISSUER SWAP AGREEMENTS; TERMINATION

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

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

5.3      FOLLOWING A NON-ASSET TRIGGER EVENT: On each Payment Date following the
         occurrence of a Non-Asset Trigger Event under the Mortgages Trust Deed
         but prior to enforcement of the Funding Security under the Funding Deed
         of Charge or the Current Issuer Security under the Current Issuer Deed
         of Charge, the Current Issuer Cash Manager will pay Current Issuer
         Available Principal Receipts received in respect of the Current Issuer
         Intercompany Loan (after making payments ranking higher in the order or
         priority of payments) to (1) in respect of the Dollar Notes, the
         Current Issuer Dollar Currency Swap Provider, and amounts received by
         the Current

                                       6
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         Issuer Cash Manager from the Current Issuer Dollar Currency Swap
         Provider will be applied to pay amounts due to the holders of the
         relevant classes of Dollar Notes, and (2) in respect of the Sterling
         Notes, amounts due to the holders of the relevant classes of Sterling
         Notes, and (3) in respect of the Euro Notes, the Current Issuer Euro
         Currency Swap Provider, and amounts received by the Current Issuer Cash
         Manager from the Current Issuer Euro Currency Swap Provider will be
         applied to pay amounts due to the holders of the relevant classes of
         Euro Notes, each in accordance with the priority of payments set forth
         in Clause 4.2 (Distribution of Current Issuer Available Principal
         Receipts Following the Occurrence of a Non-Asset Trigger Event) of
         Schedule 2.

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

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

6.       NO LIABILITY

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

                                       7
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7.       COSTS AND EXPENSES

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

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

8.       INFORMATION

8.1      USE OF INFORMATION TECHNOLOGY SYSTEMS:

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

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

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

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

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

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<PAGE>

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

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

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

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

8.5      INFORMATION COVENANTS:

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

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

         (c)      The Current Issuer Cash Manager shall notify the Rating
                  Agencies and the Note Trustee in writing of the details of (i)
                  any material amendment to the Transaction Documents to which
                  the Current Issuer is a party and of which it is or becomes
                  aware, (ii) the occurrence of a Current Issuer Note Event of
                  Default, or a Current Issuer Intercompany Loan Event of
                  Default or a Current

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

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

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

9.       REMUNERATION

9.1      FEE PAYABLE:

         (a)      Subject to paragraph (b) below, the Current Issuer shall pay
                  to the Current Issuer Cash Manager for the provision of the
                  Current Issuer Cash Management Services hereunder a cash
                  management fee which shall be agreed in writing between the
                  Current Issuer, the Note Trustee and the Current Issuer Cash
                  Manager from time to time.

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

9.2      PAYMENT OF FEE: The cash management fee referred to in Clause 9.1 (Fee
         Payable)

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<PAGE>

         shall only be payable to the Current Issuer Cash Manager on each
         Payment Date in the manner contemplated by, in accordance with and
         subject to the provisions of the Current Issuer Pre-Enforcement Revenue
         Priority of Payments or, as the case may be, the Current Issuer
         Post-Enforcement Priority of Payments.

10.      COVENANTS, REPRESENTATIONS AND WARRANTIES OF CURRENT ISSUER CASH
         MANAGER

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

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

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

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

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

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

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

10.2     DURATION OF COVENANTS: The covenants of the Current Issuer Cash Manager
         in Clause 10.1 (Covenants) shall remain in force until this Agreement
         is terminated but without prejudice to any right or remedy of the
         Current Issuer and/or the Note Trustee arising from breach of any such
         covenant prior to the date of termination of this Agreement.

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

11.      CURRENT ISSUER CASH MANAGEMENT SERVICES NON-EXCLUSIVE

         Nothing in this Agreement shall prevent the Current Issuer Cash Manager
         from rendering or performing services similar to those provided for in
         this Agreement to or

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<PAGE>

         for itself or other persons, firms or companies or from carrying on
         business similar to or in competition with the business of the Current
         Issuer or the Note Trustee.

12.      TERMINATION

12.1     CURRENT ISSUER CASH MANAGER TERMINATION EVENTS: If any of the following
         events ("CURRENT ISSUER CASH MANAGER TERMINATION EVENTS") shall occur:

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

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

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

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

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

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

         The Note Trustee shall have no liability to any person in the event
         that, having used reasonable endeavours, it is unable to appoint a
         substitute Current Issuer Cash Manager. In any event, the Note Trustee
         shall only be required to use its reasonable endeavours to appoint such
         substitute Current Issuer Cash Manager. Notwithstanding

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<PAGE>

         any other provision of the Transaction Documents, the Note Trustee
         shall not itself be required to perform any duties of the Current
         Issuer Cash Manager.

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

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

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

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

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

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

12.3     EFFECT OF TERMINATION OR RESIGNATION:

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

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

                  (i)      forthwith deliver (and in the meantime hold on trust
                           for, and to the order of, the Current Issuer or the
                           Note Trustee, as the case may be) to the Current
                           Issuer or the Note Trustee, as the case may be or as
                           it shall direct, all books of account, papers,
                           records, registers, correspondence and documents in
                           its possession or under its control relating to the

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<PAGE>

                           affairs of or belongings of the Current Issuer or the
                           Note Trustee, as the case may be, (if practicable, on
                           the date of receipt) any monies then held by the
                           Current Issuer Cash Manager on behalf of the Current
                           Issuer, the Note Trustee and any other assets of the
                           Current Issuer and the Note Trustee;

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

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

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

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

12.5     GENERAL PROVISIONS RELATING TO TERMINATION:

         (a)      Termination of this Agreement or the appointment of the
                  Current Issuer Cash Manager under this Agreement shall be
                  without prejudice to the liabilities of the Current Issuer to
                  the Current Issuer Cash Manager and vice versa incurred before
                  the date of such termination. The Current Issuer Cash Manager
                  shall have no right of set-off or any lien in respect of such
                  amounts against amounts held by it on behalf of the Current
                  Issuer or the Note Trustee.

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

         (c)      On termination of the appointment of the Current Issuer Cash
                  Manager under the provisions of this Clause 12, the Current
                  Issuer Cash Manager shall be entitled to receive all fees and
                  other monies accrued up to (but excluding) the date of
                  termination but shall not be entitled to any other or further

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<PAGE>

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

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

13.      FURTHER ASSURANCES

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

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

14.      MISCELLANEOUS

14.1     NO SET-OFF:  The Current Issuer Cash Manager agrees that it will not:

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

         (b)      make or exercise any claims or demands, any rights of
                  counterclaim or any other equities against or withhold payment
                  of any and all sums of money which may at any time and from
                  time to time standing to the credit of either of the Current
                  Issuer Transaction Accounts or any replacement or additional
                  bank account of the Current Issuer and established from time
                  to time.

14.2     NO RECOURSE:

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

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<PAGE>

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

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

15.      CONFIDENTIALITY

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

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

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

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

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

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

         (f)      in relation to any information disclosed to the professional
                  advisers of the recipient or (in connection with a prospective
                  rating of any debt to be issued

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<PAGE>

                  by the Current Issuer or any New Issuer) to any credit rating
                  agency or any prospective new cash manager or prospective new
                  Note Trustee.

16.      NO PARTNERSHIP

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

17.      ASSIGNMENT

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

17.2     NO ASSIGNMENT BY CURRENT ISSUER CASH MANAGER: The Current Issuer Cash
         Manager may not assign or transfer any of its rights and obligations
         under this Agreement without the prior written consent of the Current
         Issuer and the Note Trustee.

18.      THE NOTE TRUSTEE

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

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

19.      NON PETITION COVENANT; LIMITED RECOURSE

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

19.2     LIMITED RECOURSE: The Current Issuer Cash Manager hereby undertakes to
         each of the other parties hereto that, notwithstanding any other
         provision of this Agreement or any other Transaction Document, no sum
         due or owing to the Current Issuer Cash Manager from or by the Current
         Issuer under this Agreement shall be payable by the Current Issuer
         except to the extent that the Current Issuer has sufficient funds

                                       17
<PAGE>

         available or (following enforcement of the Current Issuer Security) the
         Security Trustee has realised sufficient funds from the Current Issuer
         Security to pay such sum subject to and in accordance with the relevant
         Current Issuer Priority of Payments, and provided that all liabilities
         of the Current Issuer required to be paid in priority thereto or pari
         passu therewith pursuant to such Current Issuer Priority of Payments
         have been paid, discharged and/or otherwise provided for in full.

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

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

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

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

20.      AMENDMENTS AND WAIVER

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

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<PAGE>

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

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

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

21.      NOTICES

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

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

         (b)      in the case of the Current Issuer, to Granite Mortgages 02-1
                  plc c/o Fifth Floor, 100 Wood Street, London EC2V 7EX
                  (facsimile number 020 7606 0643) for the attention of The
                  Company Secretary with a copy to Northern Rock plc, Northern
                  Rock House, Gosforth, Newcastle upon Tyne NE3 4PL (facsimile
                  number 0191 213 2203) for the attention of the Group
                  Secretary;

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

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

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

                                       19
<PAGE>

         (f)      in the case of S&P, to Standard & Poor's Ratings Services, a
                  division of The McGraw-Hill Companies, Inc., at Garden House,
                  18 Finsbury Circus, London EC2M 7NJ (facsimile number 0207 826
                  3598) for the attention of Andre Vollmann;

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

22.      THIRD PARTY RIGHTS

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

23.      EXECUTION IN COUNTERPARTS; SEVERABILITY

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

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

24.      GOVERNING LAW AND JURISDICTION; APPROPRIATE FORUM

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

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

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

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

                                       20
<PAGE>

                                   SCHEDULE 1

                   THE CURRENT ISSUER CASH MANAGEMENT SERVICES

The Current Issuer Cash Manager shall:

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

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

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

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

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

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

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

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

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

(j)      make all returns and filings, give all notices and make all
         registrations and other notifications required in the day-to-day
         operation of the business of the Current Issuer

                                       21
<PAGE>

         or required to be given by the Current Issuer pursuant to the Current
         Issuer Transaction Documents;

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

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

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

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

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

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

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

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

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

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

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

         (iii)    all income or proceeds following the disposal or maturity of
                  Authorised Investments shall be credited to the Current Issuer
                  Transaction Accounts from which moneys were withdrawn to make
                  the relevant Authorised Investment; and

                                       22
<PAGE>

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

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

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

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

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

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

                                       23
<PAGE>

                                   SCHEDULE 2

                   CASH MANAGEMENT AND MAINTENANCE OF LEDGERS

1.       DETERMINATION

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

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

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

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

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

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

         (b)      If the Current Issuer Cash Manager determines (as set forth in
                  paragraph 1(a)(iii)) that there is a deficit (a "CURRENT
                  ISSUER INCOME DEFICIT") in the amount of Current Issuer
                  Available Revenue Receipts to pay items (A) through (E), (G)
                  and/or (I) of the Current Issuer Pre-Enforcement Revenue
                  Priority of Payments, and the Current Issuer has provided for
                  that deficit by the application of funds standing to the
                  credit of the Current Issuer Principal Ledger, if any, then
                  the Current Issuer Cash Manager shall make a corresponding
                  debit entry in the relevant Current Issuer Principal
                  Deficiency Sub Ledger, PROVIDED THAT the Current Issuer Cash
                  Manager shall ensure that Current Issuer Principal Receipts
                  are not used to pay interest on any class of Current Issuer
                  Notes if and to the extent that would result in a deficiency
                  being recorded, or an existing deficiency being increased, on
                  a Current Issuer Principal Deficiency Sub Ledger relating to a
                  higher ranking

                                       24
<PAGE>

                  Class of Current Issuer Notes, and furthermore that Current
                  Issuer Principal Receipts are not used to make up any deficit
                  other than in respect of items (A) through (E), (G) and (I) of
                  the Current Issuer Pre-Enforcement Revenue Priority of
                  Payments. The Current Issuer Cash Manager shall thereafter
                  record as a debit on the Current Issuer Revenue Ledger the
                  application by the Current Issuer of any excess Current Issuer
                  Available Revenue Receipts to extinguish any balance on a
                  Current Issuer Principal Deficiency Sub Ledger.

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

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

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

2.       NOTIFICATION OF DETERMINATIONS

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

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

3.       PRIORITY OF PAYMENTS FOR CURRENT ISSUER AVAILABLE REVENUE RECEIPTS

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

         (a)      on each Payment Date; or

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

         in each case prior to the enforcement of the Current Issuer Security
         pursuant to the Current Issuer Deed of Charge or until such time as
         there are no Current Issuer Secured Obligations outstanding, in making
         such payments and provisions in the following order of priority (in
         each case only if and to the extent that payments or

                                       25
<PAGE>

         provisions of a higher priority have been made in full) (the "CURRENT
         ISSUER PRE-ENFORCEMENT REVENUE PRIORITY OF PAYMENTS"):

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

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

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

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

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

                  (1)      amounts (including such part of any termination
                           payment) due to the Current Issuer Basis Rate Swap
                           Provider (except for any termination payment or any
                           part thereof due and payable to the Current Issuer
                           Basis Rate Swap Provider as a result of a Basis Rate
                           Swap Provider Default, save to the extent such
                           termination payment may be satisfied by any Swap
                           Replacement Payment made to the Current Issuer

                                       26
<PAGE>

                           following a Downgrade Termination Event and applied
                           in accordance with this order of priority of
                           payments);

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

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

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

                  (5)      amounts due to pay interest due or overdue on the
                           Series 3 Class A Notes to the holders of the Series 3
                           Class A Notes;

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

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

                                       27
<PAGE>

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

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

                  (3)      amounts due to pay interest due or overdue on the
                           Series 3 Class B Notes to the holders of the Series 3
                           Class B Notes;

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

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

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

                  (2)      amounts due in respect of interest and such part of
                           any termination payment or any part thereof due to
                           the Series 2 Class C Euro Currency

                                       28
<PAGE>

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

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

         (J)      tenth, towards a credit to the Class C Principal Deficiency
                  Sub Ledger in an amount up to the amount necessary to
                  eliminate any debit on the Class C Principal Deficiency Sub
                  Ledger;

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

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

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

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

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

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

4.       PRIORITY OF PAYMENTS FOR CURRENT ISSUER AVAILABLE PRINCIPAL RECEIPTS

4.1      DISTRIBUTION OF CURRENT ISSUER AVAILABLE PRINCIPAL RECEIPTS PRIOR TO
         ENFORCEMENT OF THE CURRENT ISSUER SECURITY

         Prior to enforcement of the Current Issuer Security pursuant to the
         Current Issuer Deed of Charge and/or the occurrence of a Trigger Event,
         or until such time as there are no Current Issuer Notes outstanding,
         Current Issuer Available Principal Receipts will be applied in the
         following order of priority (the "CURRENT ISSUER PRE-ENFORCEMENT
         PRINCIPAL PRIORITY OF PAYMENTS"):

         (A)      first, amounts due in respect of principal and such part of
                  any termination payment due to the Series 1 Class A1 Dollar
                  Currency Swap Provider under the Series 1 Class A1 Dollar
                  Currency Swap (except for any termination

                                       29
<PAGE>

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

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

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

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

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

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

                  (1)      amounts due in respect of principal and such part of
                           any termination payment due to the Series 1 Class B
                           Dollar Currency Swap Provider

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<PAGE>

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

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

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

         (E)      last, provided that the Issuer Reserve Requirement, the Issuer
                  Arrears Test and the Subordinated Principal Test are satisfied
                  on such Payment Date (or, if any of the Issuer Reserve
                  Requirement, the Issuer Arrears Test and the Subordinated
                  Principal Test are not satisfied on such Payment Date, but the
                  Class A Notes have been repaid in full) to pay:

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

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

                                       31
<PAGE>

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

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

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

4.2      DISTRIBUTION OF CURRENT ISSUER AVAILABLE PRINCIPAL RECEIPTS FOLLOWING
         THE OCCURRENCE OF A NON-ASSET TRIGGER EVENT

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

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

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

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

                                       32
<PAGE>

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

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

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

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

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

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

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

                                       33
<PAGE>

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

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

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

4.3      DISTRIBUTION OF CURRENT ISSUER AVAILABLE PRINCIPAL RECEIPTS FOLLOWING
         THE OCCURRENCE OF AN ASSET TRIGGER EVENT

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

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

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

                                       34
<PAGE>

                           the Series 1 Class A1 Notes until the Series 1 Class
                           A1 Notes have been repaid in full;

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

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

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

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

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

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

                                       35
<PAGE>

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

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

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

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

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

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

5.       USE OF LEDGERS

         The Current Issuer Cash Manager shall forthwith record monies received
         or payments made by it on behalf of the Current Issuer in the ledgers
         in the manner set out in this Agreement. If, at any time, the Current
         Issuer Cash Manager is in any doubt as to

                                       36
<PAGE>

         which ledger a particular amount should be credited or debited, it
         shall consult with the Note Trustee thereon.

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

6.       CURRENT ISSUER REVENUE LEDGER

         The Current Issuer Cash Manager shall ensure that:

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

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

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

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

                  (iv)     all amounts (other than any early termination payment
                           which is to be used to acquire, if necessary, a new
                           basis rate swap) received by the Current Issuer under
                           the Basis Rate Swap Agreement;
                  (v)      all revenue amounts (other than any early termination
                           payment which is to be used to acquire, if necessary,
                           a new currency swap) received by the Current Issuer
                           under the Currency Swap Agreements; and

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

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

7.       CURRENT ISSUER PRINCIPAL LEDGER

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

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

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

                                       37
<PAGE>

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

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

8.       CURRENT ISSUER PRINCIPAL DEFICIENCY LEDGER

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

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

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

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

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

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

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

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

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

9.       RECORDS

         The Current Issuer Cash Manager shall ensure that a separate record is
         kept of any amount received from each of the Dollar Currency Swap
         Provider, the Euro Currency Swap Provider and the Basis Rate Swap
         Provider pursuant to, respectively, the Dollar Currency Swap
         Agreements, the Euro Currency Swap Agreements and the Basis Rate Swap
         Agreement.

         The Current Issuer Cash Manager hereby agrees that, each time the
         Current Issuer Cash Manager records a debit on a Current Issuer
         Principal Deficiency Sub Ledger, the Current Issuer Cash Manager shall
         also record on such Current Issuer Principal Deficiency Sub Ledger
         whether such debit was caused by (A) Losses on the

                                       38
<PAGE>

         Mortgage Loans which have been allocated by Funding to the Current
         Issuer Intercompany Loan, (B) the application of Current Issuer
         Available Principal Receipts to meet any deficiency in Current Issuer
         Available Revenue Receipts, or (C) the application of Funding Available
         Principal Receipts to fund the Current Issuer Liquidity Reserve Fund,
         if any.

                                       39
<PAGE>

                                   SCHEDULE 3

                         FORM OF ISSUER QUARTERLY REPORT

GRANITE MORTGAGES 02-2 PLC
PROFIT & LOSS ACCOUNT

PERIOD ENDED

                                                   This Quarter    Prior Quarter

                                                   (pound) 000's  (pound) 000's

Interest Receivable - Intercompany Loan
Interest Receivable - Cash Deposits/Authorised
Investments

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

Interest Payable - Notes
Interest Payable
                                                   -----------------------------
                                                   0               0

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

Other Income

Operating Expenses

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

Taxation

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

Dividend                                           0               0

Retained profit brought forward                    0               0

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

                                       40
<PAGE>

GRANITE MORTGAGES 02-2 PLC

BALANCE SHEET

PERIOD ENDED

                                                   (pound) 000's   (pound) 000's
FIXED ASSET INVESTMENTS

Intercompany Lending                                               0

CURRENT ASSETS
Interest Receivable                                0
Other debtors                                      0
Cash at Bank                                       0
Current Issuer Transaction Account:
                                                   ------------
                                                   0
                                                   ------------

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Accruals                                           0
Interest Payable Accrual                           0
Taxation                                           0
                                                   ------------
                                                   0
                                                   ------------

Net current assets                                                 0

CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
Amount due to Noteholders                                          0

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

Share Capital                                                      0
Reserves                                                           0

                                                                   -------------
                                                                   0
                                                                   =============

                                                                   0

                                       41
<PAGE>

Current Issuer Notes to Balance Sheet:

Principal Deficiency Ledger

Class A Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

Class B Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

Class C Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

                                       42
<PAGE>

<TABLE>
<CAPTION>

GRANITE MORTGAGES 02-2 PLC
NOTES OUTSTANDING

PERIOD ENDED

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

                              SERIES 1 CLASS B   SERIES 2 CLASS B   SERIES 3 CLASS B
Moody's Current Rating
Fitch Ratings Current Rating
S&P Current Rating

                              SERIES 1 CLASS C   SERIES 2 CLASS C   SERIES 3 CLASS C
Moody's Current Rating
Fitch Ratings Current Rating
S&P Current Rating

                              SERIES 1 CLASS A1   SERIES 1 CLASS A2   SERIES 2 CLASS A   SERIES 3 CLASS A
Initial Note Balance
Previous Quarters Note
Principal
Note Redemptions
Outstanding Note Principal

                              SERIES 1 CLASS B   SERIES 2 CLASS B   SERIES 3 CLASS B
Initial Note Balance
Previous Quarters Note
Principal
Note Redemptions
Outstanding Note Principal

                              SERIES 1 CLASS C   SERIES 2 CLASS C   SERIES 3 CLASS C
Initial Note Balance
Previous Quarters Note
Principal
Note Redemptions
Outstanding Note Principal

                              SERIES 1 CLASS A   SERIES 2 CLASS A   SERIES 3 CLASS A
Note Interest Margins
Step Up Dates
Step Up Margins

                              SERIES 1 CLASS B   SERIES 2 CLASS B   SERIES 3 CLASS B
Note Interest Margins
Step Up Dates
Step Up Margins

                              SERIES 1 CLASS C   SERIES 2 CLASS C   SERIES 3 CLASS C
Note Interest Margins
Step Up Dates
Step Up Margins

Payment Cycle
Payment Date
Next Payment Date

Amount Credited to Principal
Deficiency Sub Ledger:
Current Quarter:
Aggregate:

</TABLE>

                                       43
<PAGE>

                                   SCHEDULE 4

                  CONTROLLED AMORTISATION AMOUNT/TARGET BALANCE

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

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------------------------------
PAYMENT     (POUND) TARGET   $ TARGET   (POUND) TARGET  $ TARGET     (POUND) TARGET  $ TARGET   (POUND) TARGET  $ TARGET
DATE        BALANCE          BALANCE    BALANCE         BALANCE      BALANCE         BALANCE    BALANCE         BALANCE
OCCURRING   FOR              FOR        FOR             FOR SERIES   FOR             FOR        FOR             FOR
IN:         SERIES 1         SERIES 1   SERIES 1        1 CLASS A2   SERIES 1        SERIES 1   SERIES 1        SERIES 1
            CLASS A1         CLASS A1   CLASS A2        NOTES        CLASS B         CLASS B    CLASS C         CLASS C
            NOTES            NOTES      NOTES                        NOTES           NOTES      NOTES           NOTES
-------------------------------------------------------------------------------------------------------------------------
<S>         <C>            <C>           <C>          <C>             <C>           <C>          <C>           <C>
Jan 2003    311,688,312    480,000,000   746,753,247  1,150,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Apr 2003    201,298,701    310,000,000   746,753,247  1,150,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Jul 2003    100,649,351    155,000,000   746,753,247  1,150,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Oct 2003             0               0   737,012,987  1,135,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Jan 2004             0               0   701,298,701  1,080,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Apr 2004             0               0   652,597,403  1,005,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Jul 2004             0               0   610,389,610    940,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Oct 2004             0               0   568,181,818    875,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Jan 2005             0               0   525,974,026    810,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Apr 2005             0               0   487,012,987    750,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Jul 2005             0               0   451,298,701    695,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Oct 2005             0               0   415,584,416    640,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Jan 2006             0               0   366,883,117    565,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Apr 2006             0               0   321,428,571    495,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Jul 2006             0               0   282,467,532    435,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Oct 2006             0               0   240,259,740    370,000,000   38,961,039    60,000,000   57,142,857    88,000,000
-------------------------------------------------------------------------------------------------------------------------
Jan 2007             0               0   207,792,208    320,000,000   35,714,286    55,000,000   53,571,429    82,500,000
-------------------------------------------------------------------------------------------------------------------------
Apr 2007             0               0   178,571,429    275,000,000   33,116,883    51,000,000   48,701,299    75,000,000
-------------------------------------------------------------------------------------------------------------------------
Jul 2007             0               0   149,350,649    230,000,000   30,844,156    47,500,000   45,454,545    70,000,000
-------------------------------------------------------------------------------------------------------------------------
Oct 2007             0               0   123,376,623    190,000,000   27,597,403    42,500,000   42,207,792    65,000,000
-------------------------------------------------------------------------------------------------------------------------
Jan 2008             0               0    97,402,597    150,000,000   25,974,026    40,000,000   37,337,662    57,500,000
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       44
<PAGE>

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------
PAYMENT DATE   (POUND) TARGET  (euro)       (POUND) TARGET  (EURO)       (POUND) TARGET   (EURO)
OCCURRING IN:  BALANCE         TARGET       BALANCE         TARGET       BALANCE          TARGET
               FOR SERIES      BALANCE      FOR SERIES      BALANCE      FOR              BALANCE
               2 CLASS A       FOR SERIES   2 CLASS B       FOR SERIES   SERIES 2         FOR SERIES
               NOTES           2 CLASS A    NOTES           2 CLASS B    CLASS C          2 CLASS C
                               NOTES                        NOTES        NOTES            NOTES
-----------------------------------------------------------------------------------------------------
<S>            <C>          <C>              <C>            <C>            <C>            <C>
Jan 2003       700,636,943  1,100,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Apr 2003       700,636,943  1,100,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Jul 2003       700,636,943  1,100,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Oct 2003       691,082,803  1,085,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Jan 2004       656,050,955  1,030,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Apr 2004       614,649,682    965,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Jul 2004       573,248,408    900,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Oct 2004       531,847,134    835,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Jan 2005       493,630,573    775,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Apr 2005       458,598,726    720,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Jul 2005       423,566,879    665,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Oct 2005       388,535,032    610,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Jan 2006       343,949,045    540,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Apr 2006       302,547,771    475,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Jul 2006       261,146,497    410,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Oct 2006       226,114,650    355,000,000    26,114,650     41,000,000     33,757,962     53,000,000
-----------------------------------------------------------------------------------------------------
Jan 2007       194,267,516    305,000,000    23,885,350     37,500,000     31,210,191     49,000,000
-----------------------------------------------------------------------------------------------------
Apr 2007       168,789,809    265,000,000    22,292,994     35,000,000     28,662,420     45,000,000
-----------------------------------------------------------------------------------------------------
Jul 2007       140,127,389    220,000,000    20,700,637     32,500,000     27,070,064     42,500,000
-----------------------------------------------------------------------------------------------------
Oct 2007       114,649,682    180,000,000    18,949,045     29,750,000     25,477,707     40,000,000
-----------------------------------------------------------------------------------------------------
Jan 2008        92,356,688    145,000,000    17,197,452     27,000,000     22,292,994     35,000,000
-----------------------------------------------------------------------------------------------------
</TABLE>

--------------------------------------------------------------
PAYMENT DATE   (POUND) TARGET  (POUND) TARGET   (POUND) TARGET
OCCURRING IN:  BALANCE FOR     BALANCE FOR      BALANCE FOR
               SERIES 3        SERIES 3         SERIES 3
               CLASS A         CLASS B          CLASS C
               NOTES           NOTES            NOTES
--------------------------------------------------------------
Jan 2003       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Apr 2003       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Jul 2003       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Oct 2003       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Jan 2004       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Apr 2004       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Jul 2004       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Oct 2004       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Jan 2005       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Apr 2005       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Jul 2005       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Oct 2005       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Jan 2006       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Apr 2006       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Jul 2006       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Oct 2006       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Jan 2007       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Apr 2007       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Jul 2007       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Oct 2007       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------
Jan 2008       665,000,000      25,000,000       33,000,000
--------------------------------------------------------------

                                       45
<PAGE>

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

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

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

         (a)      zero, and

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

                  (i)      the product of (A) the sum of the Mortgages Trustee
                           Principal Receipts for each Distribution Date since
                           the immediately preceding Payment Date, and (B) the
                           Funding Share Percentage applicable as at the later
                           to occur of the immediately preceding Assignment Date
                           and the immediately preceding Distribution Date; and

                  (ii)     the quotient of (A) the Outstanding Principal Balance
                           on such Current Issuer's Intercompany Loan as at the
                           immediately preceding Payment Date (after taking into
                           account principal payments on such Payment Date) less
                           the aggregate Outstanding Principal Balances of the
                           Special Repayment Notes of the Third Issuer divided
                           by (B) the aggregate Outstanding Principal Balance on
                           all Intercompany Loans as at the immediately
                           preceding Payment Date (after taking into account
                           principal payments on such Payment Date) less the
                           aggregate amount of all Special Repayment Notes; and

                  (iii)    the quotient of (A) the aggregate Principal Amount
                           Outstanding on such Class of Notes as at the
                           immediately preceding Payment Date (after taking into
                           account principal payments on such Payment Date),
                           divided by (B) the aggregate Principal Amount
                           Outstanding on all Classes of Notes of the Current
                           Issuer (other than Series 3 Class D Notes) as at the
                           immediately preceding Payment Date (after taking into
                           account principal payments on such Payment Date).

         In addition, notwithstanding the foregoing, following the occurrence of
         a Trigger Event, the Target Balance for the Series 3 Class D Notes will
         be zero.

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

                                       46
<PAGE>

                                   SCHEDULE 5

           CURRENT ISSUER CASH MANAGER REPRESENTATIONS AND WARRANTIES

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

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

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

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

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

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

         (b)      conflict with its constitutional documents; or

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

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

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

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

8.       FINANCIAL STATEMENTS: The most recent financial statements of the
         Current Issuer Cash Manager:

                                       47
<PAGE>

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

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

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

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

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

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

10.      RANKING OF CLAIMS

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

11.      INFORMATION IN PROSPECTUS AND OFFERING CIRCULAR:

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

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

                                       48
<PAGE>

                                 EXECUTION PAGE

EXECUTED for and on behalf of                                 )

NORTHERN ROCK PLC                                             )
by:                                                           )
                                                              )
                                                              )
Name:                                                         )
Title:

EXECUTED for and on behalf of                                 )
GRANITE MORTGAGES 02-2 PLC                                    )
by:                                                           )

Name: CARL FLINN
Title: ALTERNATE DIRECTOR

EXECUTED for and on behalf of                                 )
THE BANK OF NEW YORK                                          )
by:                                                           )

Name: KATE RUSSELL
Title: ASSISTANT VICE PRESIDENT

                                       49

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