Document:

Exhibit 4.9

                            Dated [o] January 2005

                               NORTHERN ROCK PLC
                            as Issuer Cash Manager

                           GRANITE MASTER ISSUER PLC

                                    - and -

                             THE BANK OF NEW YORK
                          as Issuer Security Trustee

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                       ISSUER CASH MANAGEMENT AGREEMENT

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

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

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

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

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

5.    No Liability..........................................................8

6.    Costs and Expenses....................................................8

7.    Information...........................................................8

8.     Remuneration........................................................10

9.    Covenants, Representations and Warranties of Issuer Cash Manager.....11

10.   Issuer Cash Management Services Non-Exclusive........................12

11.   Termination..........................................................12

12.   Further Assurances...................................................15

13.   Miscellaneous........................................................15

14.   Confidentiality......................................................16

15.   No Partnership.......................................................17

16.   Assignment...........................................................17

17.   The Issuer Security Trustee..........................................17

18.   New Notes............................................................17

19.   Non Petition Covenant; Limited Recourse..............................18

20.   Amendments and Waiver................................................19

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 Issuer Cash Management Services............................22
SCHEDULE 2  Cash Management and Maintenance of Ledgers.....................25

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                               Table of Contents
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                                  (continued)
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SCHEDULE 3  Form of Issuer Quarterly Report................................30
SCHEDULE 4  Issuer Cash Manager Representations and Warranties.............36

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THIS ISSUER CASH MANAGEMENT AGREEMENT is made on [o] January 2005

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 Issuer Cash Manager;

(2)     GRANITE MASTER ISSUER PLC (registered number 5250668), 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 Master Issuer; and

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

WHEREAS:

(A)     On the first Closing Date following the Funding 2 Program Date, and on
        subsequent Closing Dates, the Master Issuer may issue Issuer Notes
        constituted by the Issuer Trust Deed. From the proceeds of the issue
        of such Issuer Notes, the Master Issuer shall make advances of funds
        to Granite Finance Funding 2 Limited, pursuant to the terms of the
        Global Intercompany Loan Agreement.

(B)     The Issuer Cash Manager is willing to provide cash management services
        to the Master Issuer 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 Programme Master Definitions Schedule signed for the purposes
             of identification by Sidley Austin Brown & Wood and Allen & Overy
             LLP on [o] January 2005, and

        (b)  the Issuer Master Definitions Schedule signed for the purposes of
             identification by Sidley Austin Brown & Wood and Allen & Overy
             LLP on [o] January 2005,

        (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 Programme Master Definitions
        Schedule.

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2.      Appointment of Issuer Cash Manager

2.1     Appointment: Until termination pursuant to Clause 12 (Termination),
        the Master Issuer hereby appoints the Issuer Cash Manager as its
        lawful agent on its behalf to provide the Issuer Cash Management
        Services set out in this Agreement, including in relation to the
        Issuer Notes to be issued by the Master Issuer. The Issuer Cash
        Manager hereby accepts such appointment on the terms and subject to
        the conditions of this Agreement. The Issuer Security Trustee consents
        to the appointment of the Issuer Cash Manager on the terms of 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 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 Issuer Notes: The appointment
        pursuant to Clause 2.1 (Appointment) is conditional upon the issue of
        a Series of Issuer Notes having taken place and shall take effect upon
        and from the Closing Date in respect of such Series of Notes
        automatically without any further action on the part of any person,
        PROVIDED THAT if the issue of a Series of Issuer Notes has not
        occurred by [o] January 2005, or such later date as the Master Issuer
        and the Lead Managers may agree, this Agreement shall cease to be of
        further effect.

3.      The Issuer Cash Management Services

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

3.2     Approvals and authorisations: The Issuer Cash Manager shall maintain,
        or use reasonable endeavours to procure the maintenance of, the
        approvals, authorisations, consents and licences required in
        connection with the business of the Master Issuer and shall prepare
        and submit, or procure the preparation and submission of, on behalf of
        the Master 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 Master Issuer and
        shall, so far as it reasonably can do so, perform the 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 Issuer Cash
        Management Services shall include procuring (so far as the Issuer Cash
        Manager, using its reasonable endeavours, is able so to do) compliance
        by the Master Issuer with all applicable legal requirements and with
        the terms of the Issuer Transaction Documents, PROVIDED THAT the
        Issuer Cash Manager shall not lend or provide any sum to the Master
        Issuer and the Issuer Cash Manager shall have no liability whatsoever
        to the Master Issuer, the Issuer Security Trustee or any other person
        for any failure by the Master Issuer to make any payment due by any of
        them under any of the Issuer Transaction Documents (other than to the
        extent arising from the Issuer Cash Manager failing to perform any of
        its obligations under any of the Transaction

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        Documents).

3.4     Liability of Issuer Cash Manager:

        (a)  The Issuer Cash Manager shall indemnify each of the Master Issuer
             and the Issuer Security 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
             Issuer Cash Manager in carrying out its functions as Issuer Cash
             Manager under, or as a result of a breach by the Issuer Cash
             Manager of, the terms and provisions of this Agreement or such
             other Transaction Documents to which the Issuer Cash Manager is a
             party (in its capacity as such) in relation to such functions.

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

4.      Payments, Accounts, Ledgers

4.1     Issuer Bank Accounts: The Issuer Cash Manager hereby confirms that the
        Issuer Bank Accounts have been established on or before the date
        hereof and that the mandates in the agreed form will apply thereto at
        the Funding 2 Program Date. The Issuer Cash Manager undertakes (to the
        extent to which the same is within its control in its capacity as
        Issuer Cash Manager) that at the Funding 2 Program Date the Issuer
        Bank Accounts will be operative and that the Issuer Cash Manager will
        not knowingly create or permit to subsist any Security Interest in
        relation to the Issuer Bank Accounts other than as created under or
        permitted pursuant to the Issuer Deed of Charge.

4.2     Issuer Ledgers:

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

             (i)    the Issuer Revenue Ledger, which shall record all Issuer
                    Revenue Receipts standing to the credit of the Issuer
                    Transaction Account from time to time and a sub-ledger in
                    respect of each Class of Issuer Notes which shall record
                    interest received in respect of the related Tier of Loan
                    Tranches;

             (ii)   the Issuer Principal Ledger, which shall record all Issuer
                    Principal Receipts standing to the credit of the Issuer
                    Transaction Account from time to time and a sub-ledger in
                    respect of each Series and Class of

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                    Issuer Notes which shall record principal repayments in
                    respect of the related Loan Tranche; and

             (iii)  the Issuer Reserve Ledger, which shall record the amount
                    credited to the Issuer Reserve Fund from time to time and
                    subsequent withdrawals and deposits in respect of the
                    Issuer Reserve Fund; and

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

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

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

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

                    (D)  the payment or transfer of all, or any part of, such
                         Swap Collateral to the Issuer Transaction Account,

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

             (v)    the Issuer Note Ledger, which shall be divided into
                    segregated sub-ledgers each of which shall record payments
                    made under each Series and Class of Issuer Notes (each of
                    which shall be further divided into sub-ledgers to record
                    payments of interest and fees and repayments of principal
                    made under the applicable Series and Class of Issuer
                    Notes).

        (b)  The Issuer Cash Manager shall make credits and debits to the
             Issuer Ledgers in accordance with the provisions of paragraphs 5,
             6, 7, 8, 10 and 11 of Schedule 2 hereto.

4.3     Payments:

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

             (i)    all Issuer Revenue Receipts;

             (ii)   all Issuer Principal Receipts;

             (iii)  all amounts (excluding Swap Collateral that is to be
                    credited to the Issuer Swap Collateral Accounts in
                    accordance with Clause 4.7) received by the Master Issuer
                    pursuant to the Issuer Swap Agreements; and

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             (iv)   any other amounts whatsoever received by or on behalf of
                    the Master Issuer on or after the Funding 2 Program Date,

              and the Issuer Cash Manager shall procure that all investment
              proceeds from Authorised Investments purchased from amounts
              standing to the credit of the Issuer Transaction Account or the
              Issuer GIC Account are credited to each such account.

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

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

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

        (e)  The Issuer Cash Manager shall promptly notify each of the Master
             Issuer and the Issuer Security 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
             "Issuer Bank Account" in the Issuer Master Definitions Schedule.

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

4.4     Withdrawals:

        (a)  The Issuer Cash Manager may make withdrawals on behalf of the
             Master Issuer from the Issuer Bank Accounts (but only until
             receipt of a copy of an Issuer Enforcement Notice served by the
             Note Trustee on the Master Issuer) and the Issuer Swap Collateral
             Accounts as permitted by this Agreement, the Issuer Trust Deed,
             the Issuer Bank Account Agreement, the Issuer Swap Agreements (in
             the case of withdrawals from the Issuer Swap Collateral Accounts)
             and the Issuer Deed of Charge, but shall not in carrying out its

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             functions as Issuer Cash Manager under this Agreement otherwise
             make withdrawals from the Issuer Bank Accounts and the Issuer
             Swap Collateral Accounts.

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

4.5     Cash Management: In administering the Issuer Bank Accounts on behalf
        of the Master Issuer and the Issuer Security Trustee, the Issuer Cash
        Manager shall comply with the provisions of Schedule 2 prior to
        receipt by the Issuer Cash Manager of a copy of any Issuer Enforcement
        Notice served on the Master Issuer. Following service of an Issuer
        Enforcement Notice, the Issuer Security Trustee or any Receiver
        appointed by the Issuer Security Trustee will administer the Issuer
        Bank Accounts in accordance with the terms of the Issuer Deed of
        Charge and in the case of amounts standing to the credit of the Issuer
        Swap Collateral Accounts, in accordance with the Issuer Swap
        Agreement.

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

4.7     Swap Collateral:

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

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

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

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

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

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

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

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

               and, in each case, make the appropriate debits and credits to
               the Issuer Swap Collateral Ledger. Swap Collateral will form
               part of the Issuer Available Revenue Receipts on its transfer
               or payment into the Issuer Transaction Account in accordance
               with this Clause 4.8(b).

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

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

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

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

        (d)  The terms of this Clause 4.8 shall prevail if and to the extent
             that they are inconsistent with the other paragraphs of this
             Clause 4.

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

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5.      No Liability

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

6.      Costs and Expenses

6.1     Subject to and in accordance with the Issuer Pre-Enforcement Priority
        of Payments or, as the case may be, the Issuer Post-Enforcement
        Priority of Payments, the Master Issuer will on each Payment Date
        reimburse the 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 Issuer Cash
        Manager in the performance of the Issuer Cash Management Services,
        including any such costs, expenses or charges not reimbursed to the
        Issuer Cash Manager on any previous Payment Date and the Issuer Cash
        Manager shall supply the Master Issuer with an appropriate VAT invoice
        issued by the Issuer Cash Manager or, if the Issuer Cash Manager has
        treated the relevant cost, expense or charge as a disbursement for VAT
        purposes, by the person making the supply.

6.2     Unless and until otherwise agreed by the Master Issuer and the Issuer
        Security Trustee in writing (notified to the Issuer Cash Manager), the
        Master Issuer shall be solely responsible for reimbursing the 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 6.1 (Costs and Expenses).

7.      Information

7.1     Use of information technology systems:

        (a)  The Issuer Cash Manager represents and warrants that at the date
             hereof (and in respect of the software which is to be used by the
             Issuer Cash Manager in providing the 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 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 Master Issuer and the Issuer Security
                    Trustee elects as a substitute cash manager in accordance
                    with the terms of this Agreement) a licence to use any
                    proprietary software

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

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

        (d)  The 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 Master Issuer and the Issuer Security Trustee elect
             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.

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

7.3     Access to Books and Records: Subject to all applicable laws, the
        Issuer Cash Manager shall permit the Master Issuer, the Auditors of
        the Master Issuer, the Issuer Security Trustee and/or any other person
        nominated by the Issuer Security Trustee (to whom the 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 Issuer Cash Management Services provided by
        the Issuer Cash Manager and related matters in accordance with this
        Agreement.

7.4     Statutory Obligations: The Issuer Cash Manager will use its reasonable
        endeavours, on behalf of the Master Issuer, to prepare or procure the
        preparation of and file all reports, annual returns, financial
        statements, statutory forms and other returns which the Master Issuer
        is required by law to prepare and file. Subject to approval thereof by
        the directors of the Master Issuer, the 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 Issuer Security Trustee, the Master Issuer and the
        Rating Agencies as soon as practicable after the end of each
        accounting reference period of the Master Issuer.

7.5     Information Covenants:

        (a)  The Issuer Cash Manager shall provide the Master Issuer, the
             Issuer Security 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 Master Issuer. Such quarterly
             report shall be delivered to the Master Issuer, the Issuer
             Security 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 Issuer Cash Manager shall provide, or procure the provision
             of, to the Master Issuer, the Issuer Security Trustee and the
             Rating Agencies copies of

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             any annual returns or financial statements referred to in Clause
             7.4 (Statutory Obligations) as soon as reasonably practicable
             after the preparation thereof.

        (c)  The Issuer Cash Manager shall notify the Rating Agencies and the
             Issuer Security Trustee in writing of the details of (i) any
             material amendment to the Transaction Documents to which the
             Master Issuer is a party and of which it is or becomes aware, and
             (ii) any other information relating to the Issuer Cash Manager as
             the Rating Agencies and the Issuer Security Trustee may
             reasonably request in connection with its obligations under this
             Agreement, PROVIDED THAT the Issuer Security Trustee shall not
             make such a request more than once every three months unless, in
             the belief of the Issuer Security Trustee, a Funding 2
             Intercompany Loan Event of Default, an Issuer Event of Default or
             an 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 Issuer Security
             Trustee does not adversely interfere with the Issuer Cash
             Manager's day-to-day provision of the 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 Issuer Cash Manager shall give details to the
             Master Issuer and the Issuer Security Trustee of any pending
             legal action and any judgments given in respect of the Issuer
             Cash Manager if it could have a potential material adverse effect
             on the ability of the Issuer Cash Manager to perform its
             obligations hereunder.

        (e)  The Issuer Cash Manager shall, at the request of the Issuer
             Security Trustee, furnish the Issuer Security Trustee and the
             Rating Agencies with such other information relating to its
             business and financial condition as the Issuer Security Trustee
             may request in connection with this Agreement, PROVIDED THAT the
             Issuer Security Trustee shall not make such a request more than
             once every three months unless, in the belief of the Issuer
             Security Trustee, a Funding 2 Intercompany Loan Event of Default,
             an Issuer Event of Default or an Issuer Cash Manager Termination
             Event (as defined in Clause 11.1 (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 Issuer Security Trustee does not adversely interfere with
             the Issuer Cash Manager's day-to-day provision of the Issuer Cash
             Management Services under the other terms of this Agreement.

8.      Remuneration

8.1     Fee payable:

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

        (b)  Unless and until otherwise agreed by the Master Issuer and the
             Issuer Security Trustee in writing (notified to the Issuer Cash
             Manager), the Master Issuer

                                      10
<PAGE>

             shall be solely responsible for paying the cash management fee to
             the Issuer Cash Manager which is referred to in paragraph (a)
             above.

8.2     Payment of fee: The cash management fee referred to in Clause 8.1 (Fee
        Payable) shall only be payable to the Issuer Cash Manager on each
        Payment Date in the manner contemplated by, in accordance with and
        subject to the provisions of the Issuer Pre-Enforcement Revenue
        Priority of Payments or, as the case may be, the Issuer
        Post-Enforcement Priority of Payments.

9.      Covenants, Representations and Warranties of Issuer Cash Manager

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

        (a)  it will exercise all due skill, care and diligence in 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 Master Issuer or the Issuer Security
             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 Issuer Security 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 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 Issuer Cash Management
             Services;

        (d)  it will not knowingly fail to comply with any legal requirements
             in the performance of the 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 Issuer
             Security Trustee amend or terminate any of the Issuer Transaction
             Documents save in accordance with their terms.

9.2     Duration of covenants: The covenants of the Issuer Cash Manager in
        Clause 9.1 (Covenants) shall remain in force until this Agreement is
        terminated but without prejudice to any right or remedy of the Master
        Issuer and/or the Issuer Security Trustee arising from breach of any
        such covenant prior to the date of termination of this Agreement.

9.3     Representations and Warranties: The Issuer Cash Manager hereby makes
        the representations and warranties to each of the Master Issuer and
        the Issuer Security Trustee that are specified on Schedule 4 hereto.

                                      11
<PAGE>

10.     Issuer Cash Management Services Non-Exclusive

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

11.     Termination

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

        (a)  default is made by the 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 Issuer
             Cash Manager becoming aware of such default and receipt by the
             Issuer Cash Manager of written notice from the Master Issuer or
             the Issuer Security Trustee, as the case may be, requiring the
             same to be remedied; or

        (b)  default is made by the 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 [Issuer Security]
             Trustee is materially prejudicial to the interests of the holders
             of the Issuer Notes and such default continues unremedied for a
             period of twenty (20) London Business Days after the earlier of
             the Issuer Cash Manager becoming aware of such default and
             receipt by the Issuer Cash Manager of written notice from the
             Issuer Security Trustee requiring the same to be remedied; or

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

        then the Master Issuer and/or Issuer Security Trustee may at once or
        at any time thereafter while such default continues by notice in
        writing to the Issuer Cash Manager with a copy to the Issuer Account
        Bank terminate its appointment as 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 Issuer Cash Manager, the
        Issuer Security Trustee agrees to use its reasonable endeavours to
        appoint a substitute Issuer Cash Manager. Any substitute 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 Master Issuer and the Issuer Security
        Trustee.

        Any termination of the appointment of the Issuer Cash Manager and the
        appointment of a substitute Issuer Cash Manager under this Clause 11.1
        is conditional upon the Rating Agencies having previously confirmed in
        writing to the Master Issuer and the Issuer Security Trustee that the
        then-current ratings of the Issuer Notes will not be downgraded,
        withdrawn or qualified.

        The Issuer Security Trustee shall have no liability to any person in
        the event that, having used reasonable endeavours, it is unable to
        appoint a substitute Issuer Cash

                                      12
<PAGE>

        Manager. In any event, the Issuer Security Trustee shall only be
        required to use its reasonable endeavours to appoint such substitute
        Issuer Cash Manager. Notwithstanding any other provision of the
        Transaction Documents, the Issuer Security Trustee shall not itself
        be required to perform any duties of the Issuer Cash Manager.

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

11.2    Resignation of Issuer Cash Manager: The 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 Master Issuer and the
        Issuer Security Trustee, PROVIDED THAT:

        (a)  the Master Issuer and the Issuer Security Trustee each consent in
             writing to such resignation such consent not to be unreasonably
             withheld or delayed;

        (b)  a substitute cash manager shall be appointed by the Issuer
             Security Trustee, 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 Master
             Issuer and the Issuer Security Trustee, and the 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
             Master Issuer under such agreement are charged in favour of the
             Issuer Security Trustee on terms satisfactory to the Issuer
             Security Trustee; and

        (d)  the Rating Agencies have confirmed to the Master Issuer and the
             Issuer Security Trustee that the then-current ratings of the
             Issuer Notes are not reduced, qualified or withdrawn as a result
             thereof.

11.3    Effect of Termination or Resignation:

(a)     On and after termination or resignation of the appointment of the
        Issuer Cash Manager under this Agreement pursuant to this Clause 11,
        all authority and power of the Issuer Cash Manager under this
        Agreement shall be terminated and be of no further effect and the
        Issuer Cash Manager shall not thereafter hold itself out in any way as
        the agent of the Master Issuer or the Issuer Security Trustee pursuant
        to this Agreement.

        (b)  Upon termination or resignation of the appointment of the Issuer
             Cash Manager under this Agreement pursuant to this Clause 11, the
             Issuer Cash Manager shall:

                                      13
<PAGE>

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

             (ii)   take such further action as the Master Issuer or the
                    Issuer Security Trustee, as the case may be, may
                    reasonably direct PROVIDED THAT the Issuer Security
                    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 Master Issuer and the Issuer
                    Security Trustee, the directions of the Issuer Security
                    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 Master Issuer
                    or the Issuer Security 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 Master Issuer or the Issuer
                    Security Trustee or such nominee, as the case may be.

11.4    Notice of event of default: The Issuer Cash Manager shall deliver to
        the Master Issuer, the Issuer Security Trustee and the Rating Agencies
        as soon as reasonably practicable (but in any event within three
        London Business Days of becoming aware thereof) a notice of any Issuer
        Cash Manager Termination Event, any Issuer Event of Default or any
        Funding 2 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 Issuer Cash Manager Termination Event or Issuer
        Event of Default or Funding 2 Intercompany Loan Event of Default,
        would constitute the same.

11.5    General provisions relating to termination:

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

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

                                      14
<PAGE>

        (c)  On termination of the appointment of the Issuer Cash Manager
             under the provisions of this Clause 11, the Issuer Cash Manager
             shall be entitled to receive all fees and other monies accrued up
             to (but excluding) the date of termination but shall not be
             entitled to any other or further compensation. The Master Issuer
             shall pay such moneys so receivable by the Issuer Cash Manager in
             accordance with the Issuer Pre-Enforcement Revenue Priority of
             Payments or, as the case may be, the 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 Issuer Cash Manager's rights to
             receive payment of all amounts (if any) due to it from the Master
             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.

12.     Further Assurances

12.1    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.

12.2    Powers of attorney: Without prejudice to the generality of Clause 12.1
        (Co-operation, etc), the Master Issuer shall upon request by the
        Issuer Cash Manager forthwith give to the Issuer Cash Manager such
        further powers of attorney or other written authorisations, mandates
        or instruments as are necessary to enable the Issuer Cash Manager to
        perform the Issuer Cash Management Services.

13.     Miscellaneous

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

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

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

13.2    No recourse:

        (a)  In relation to all sums due and payable by the Master Issuer to
             the Issuer Cash Manager, the Issuer Cash Manager agrees that it
             shall have recourse only to

                                      15
<PAGE>

             sums paid to or received by (or on behalf of) the Master Issuer
             pursuant to the provisions of the Issuer Transaction Documents.

        (b)  For the avoidance of doubt, the Issuer Security Trustee shall not
             be liable to pay any amounts due under Clauses 6 (Costs and
             Expenses) and 8 (Remuneration), but without prejudice to the
             obligations of the Master Issuer, or any receiver appointed
             pursuant to the Issuer Deed of Charge in respect of such amounts.

        (c)  Notwithstanding any other provisions of this Agreement, all
             obligations to, and rights of, the Issuer Security Trustee under
             or in connection with this Agreement (other than its obligations
             under Clause 12 (Further Assurances) and Clause 14
             (Confidentiality)) shall automatically terminate upon the
             discharge in full of all 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.

14.     Confidentiality

        During the continuance of this Agreement or after its termination,
        each of the Master Issuer, the Issuer Cash Manager and the Issuer
        Security 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 14 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, an Issuer Event of
             Default, or an Issuer Cash Manager Termination Event, the
             protection or enforcement of any of its rights under any of the
             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

                                      16
<PAGE>

        (f)  in relation to any information disclosed to the professional
             advisers of the recipient or (in connection with a prospective
             rating of any debt to be issued by the Master Issuer or any other
             Funding 2 Issuer) to any credit rating agency or any prospective
             new cash manager or prospective new Issuer Security Trustee.

15.     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.

16.     Assignment

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

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

17.     The Issuer Security Trustee

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

17.2    No Obligations: It is hereby acknowledged and agreed that by its
        execution of this Agreement the Issuer Security Trustee shall not
        assume or have any of the obligations or liabilities of the Master
        Issuer or the 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 Issuer Security Trustee may be exercised
        or made in the Issuer Security 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 Issuer Deed of Charge.

18.     New Notes

        On each occasion that the Master Issuer issues a new Series and Class
        of Issuer Notes, the Issuer Cash Manager, the Master Issuer and the
        Issuer Security Trustee shall execute such documents and take such
        action as may be necessary or required by the Rating Agencies for the
        purpose of including any Issuer Swap Provider and any other person who
        is required to execute an Accession Undertaking or any other Issuer

                                      17
<PAGE>

        Transaction Document relating to such new Series and Class of Issuer
        Notes in the Issuer Transaction Documents.

19.     Non Petition Covenant; Limited Recourse

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

19.2    Limited Recourse: The 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 Issuer Cash Manager from or by the Master Issuer under this
        Agreement shall be payable by the Master Issuer except to the extent
        that the Master Issuer has sufficient funds available or (following
        enforcement of the Issuer Security) the Issuer Security Trustee has
        realised sufficient funds from the Issuer Security to pay such sum
        subject to and in accordance with the relevant Issuer Priority of
        Payments, and provided that all liabilities of the Master Issuer
        required to be paid in priority thereto or pari passu therewith
        pursuant to such Issuer Priority of Payments have been paid,
        discharged and/or otherwise provided for in full.

19.3    Non Petition: The 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 Master 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 Master Issuer or for the appointment of a
        receiver, administrator, liquidator or similar officer of the Master
        Issuer in respect of any or all of its revenues except to the extent
        expressly permitted under the Issuer Deed of Charge.

19.4    Following Enforcement: The Issuer Cash Manager hereby undertakes to
        each of the other parties hereto that, following any enforcement of
        the Issuer Security, it will hold on trust for, and will pay to, the
        Issuer Security 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 Issuer
        Post-Enforcement Priority of Payments in order that such monies may be
        applied by the Issuer Security Trustee or the Receiver in accordance
        with the 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

                                      18
<PAGE>

        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    Issuer Deed of Charge: The provisions of Clause 6 of the 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 Issuer Transaction Documents.

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

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

20.4    Ratings: No variation or waiver of this Agreement shall be made if the
        same would cause the then-current ratings of any of the Issuer Notes
        to be reduced, qualified or withdrawn.

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 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 Master Issuer, to Granite Master Issuer plc
             c/o Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile
             number 020 7606 0643) for

                                      19
<PAGE>

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

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

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

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

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

                                      20
<PAGE>

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.

                                      21
<PAGE>

                                  SCHEDULE 1

                      The Issuer Cash Management Services

The Issuer Cash Manager shall:

(a)     make the determinations as set forth in Schedule 2 of the Issuer Deed
        of Charge;

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

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

(d)     provide the Master Issuer, Funding 2, the Issuer Security Trustee
        (upon its request), the Note Trustee (upon its request) and the Rating
        Agencies with quarterly reports in relation to the Master Issuer as
        set out in Schedule 3;

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

(f)     in relation to payments to be made on each Series and Class of Issuer
        Notes, make withdrawals under the Issuer Reserve Fund, if required;

(g)     maintain the Issuer Reserve Ledger, and record the amount credited to
        the Issuer Reserve Fund from time to time and subsequent withdrawals
        in respect of the Issuer Reserve Fund;

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

(i)     subject to any applicable law, assist the auditors of the Master
        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 Master Issuer or required to be given
        by the Master Issuer pursuant to the Issuer Transaction Documents;

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

                                      22
<PAGE>

(l)     without prejudice to the role of and in conjunction with the Issuer
        Corporate Services Provider under the Issuer Corporate Services
        Agreement, keep general books of account and records of the Master
        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 Issuer
        Corporate Services Provider under the Issuer Corporate Services
        Agreement, provide or procure the provision of company secretarial and
        administration services to the Master 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 Master Issuer, PROVIDED THAT such monies are
        at the relevant time available to the Master Issuer, pay all the
        out-of-pocket expenses of the Master Issuer, incurred by the Issuer
        Cash Manager on behalf of the Master Issuer in the performance of the
        Issuer Cash Manager's duties hereunder including without limitation:

        (i)    all Taxes which may be due or payable by the Master 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 Issuer Cash Manager may invest monies standing from time to time
        to the credit of the Issuer Transaction Account and the Issuer GIC
        Account (but in the case of the Issuer GIC Account, only following the
        enforcement of the Issuer Security and at the request of the Issuer
        Security Trustee) subject to the following provisions:

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

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

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

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

        The Issuer Security Trustee and the Issuer Cash Manager shall not be
        responsible (save where any loss results from the Issuer Security
        Trustee's or the 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

                                      23
<PAGE>

        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 Specified
               Currency Exchange rate.

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

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

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

                                      24
<PAGE>

                                  SCHEDULE 2

                  Cash Management and Maintenance of Ledgers

1.      Determination

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

               (i)    the amount of any Issuer Available Revenue Receipts to
                      be applied on the following Payment Date in accordance
                      with the Issuer Pre-Enforcement Revenue Priority of
                      Payments set forth in paragraph 1 of Schedule 2 of the
                      Issuer Deed of Charge;

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

               (iii)  whether there will be an excess or a deficit of the
                      Issuer Available Revenue Receipts to pay items (A)
                      through (L) of the Issuer Pre-Enforcement Revenue
                      Priority of Payments as set forth in paragraph 1 of
                      Schedule 2 of the Issuer Deed of Charge;

               (iv)   whether there will be an excess or deficit of Issuer
                      Available Principal Receipts to pay principal due in
                      respect of any Original Bullet Loan Tranche in
                      accordance with the Issuer Pre-Enforcement Principal
                      Priority of Payments set forth in Schedule 2 to the
                      Issuer Deed of Charge;

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

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

        (b)    The 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 Issuer Cash Manager considers
               appropriate (including without limitation as to the amount of
               any payments to be made under paragraph 1 of Schedule 2 of the
               Issuer Deed of Charge during the period from and including any
               Distribution Date immediately preceding a Payment Date to but
               excluding such Payment Date).

                                      25
<PAGE>

        (c)    The Issuer Cash Manager shall notify the Master Issuer and the
               Issuer Security Trustee on request of any such other
               assumptions and shall take account of any representations made
               by the Master Issuer and the Issuer Security 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 Issuer Cash Manager will cause each determination of Issuer
               Available Principal Receipts and Issuer Available Revenue
               Receipts (in accordance with paragraph 1(a)(i) and (ii)) and
               any Issuer Income Deficit (in accordance with paragraph
               1(a)(iii)) to be notified forthwith, following the calculation
               thereof, to the Master Issuer.

        (b)    The 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 Issuer Available Revenue Receipts

        Issuer Available Revenue Receipts will be applied by the Issuer Cash
        Manager on each Payment Date until enforcement of the Issuer Security
        pursuant to the Issuer Deed of Charge or until such time as there are
        no Issuer Secured Obligations outstanding, in making such payments and
        provisions in the order of priority set out in the Issuer
        Pre-Enforcement Revenue Priority of Payments (in each case only if and
        to the extent that payments or provisions of a higher priority have
        been made in full) set out in Part 1 of Schedule 2 of the Issuer Deed
        of Charge.

               On any Payment Date, the Issuer Cash Manager will apply amounts
        standing to the credit of the Issuer Expense Sub-Ledger on such
        Payment Date, firstly to pay the amounts forth in items [(A) to (D)]
        of the Issuer Pre-Enforcement Revenue Priority of Payments. To the
        extent that on such Payment Date, amounts standing to the credit of
        the Issuer Expense Sub-Ledger are insufficient to pay items [(A) to
        (D)] of the Issuer Pre-Enforcement Revenue Priority of Payments, then
        the Issuer Cash Manager will apply amounts standing to the credit of
        the Issuer Reserve Ledger on such date to meet such shortfall. To the
        extent that on such Payment Date, amounts standing to the credit of
        the Issuer Reserve Ledger that are applied in accordance with the
        previous sentence are insufficient to pay items [(A) to (D)] of the
        Issuer Pre-Enforcement Revenue Priority of Payments, then the Master
        Issuer will, in no order of priority among them but in proportion to
        the amount required, apply amounts standing to the credit of the
        sub-ledgers of the Issuer Revenue Ledger in respect of the Class D
        Notes of each Series on such date to meet such shortfall (until the
        balance of such Sub-Ledgers is zero), then amounts standing to the
        credit of the sub-ledgers of the Issuer Revenue Ledger in respect of
        the Class C Notes of each Series (until the balance of such
        sub-ledgers is zero), then amounts standing to the credit of the
        sub-ledgers of the Issuer Revenue Ledger in respect of the Class M
        Notes of each Series (until the balance of such sub-ledgers is zero),
        then amounts standing to the credit of the sub-ledgers of the Issuer
        Revenue Ledger in

                                      26
<PAGE>

        respect of the Class B Notes (until the balance of such sub-ledgers
        is zero) and then amounts standing to the credit of the sub-ledgers
        of the Issuer Revenue Ledger in respect of the Class A Notes (until
        the balance of such sub-ledgers is zero).

        On any payment date, the Issuer Cash Manager will apply amounts
        standing to the credit of any sub-ledger (in respect of a Series and
        Class of Issuer Notes) of the Issuer Revenue Ledger to pay the
        interest and other amounts due in respect of such Series and Class of
        Issuer Notes under the Issuer Pre-Enforcement Revenue Priority of
        Payments. To the extent that on such Payment Date, amounts standing to
        the credit of such sub-ledger are insufficient to pay such amounts,
        the Issuer Cash Manager will apply amounts standing to the credit of
        the Issuer Expense Sub-Ledger on such date (which are not otherwise
        required to pay the amounts set forth in items [(A) to (D)] of the
        Issuer Pre-Enforcement Revenue Priority of Payments or any shortfall
        in any other sub-ledger of the Issuer Revenue Ledger (in respect of a
        more senior Class of Issuer Notes) on such date). To the extent that
        on such Payment Date, amounts standing to the credit of the Issuer
        Expense Sub-Ledger that are applied in accordance with the previous
        sentence are insufficient to meet such shortfall, then the Master
        Issuer will apply amounts standing to the credit of the Issuer Reserve
        Ledger on such date (which are not otherwise required to meet any
        shortfall in the Issuer Expense Sub-Ledger or any other sub-ledger of
        the Issuer Revenue Ledger (in respect of a more senior Class of Issuer
        Notes) on such date and subject to the limits and conditions on the
        purposes for which the Issuer Reserve Fund may be utilised) to meet
        such shortfall.

        Where, on a Payment Date, an amount standing to the credit of the
        Issuer Reserve Ledger is applied to pay interest and other amounts due
        in respect of a Series and Class of Issuer Notes under the Issuer
        Pre-Enforcement Revenue Priority of Payments, then to the extent that,
        on a following Payment Date in respect of such Series and Class of
        Issuer Notes (and following payment of interest and other amounts due
        in respect of such Series and Class of Issuer Notes), there remains an
        amount credited to the sub-ledger to the Issuer Revenue Ledger in
        respect of such Series and Class of Issuer Notes, the Issuer Cash
        Manager will apply such amount towards the replenishment of the Issuer
        Reserve Fund in accordance with item ([J]) above.

4.      Distribution of Issuer Available Principal Receipts Prior to
        Enforcement of the Issuer Security

        Issuer Available Principal Receipts will be applied by the Issuer Cash
        Manager on each Payment Date until enforcement of the Issuer Security
        pursuant to the Issuer Deed of Charge or until such time as there are
        no Issuer Secured Obligations outstanding, in making such payments and
        provisions in the order of priority set out in the Issuer
        Pre-Enforcement Principal Priority of Payments (in each case only if
        and to the extent that payments or provisions of a higher priority
        have been made in full) set out in Part 2 of Schedule 2 of the Issuer
        Deed of Charge.

5.      Use of Ledgers

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

                                      27
<PAGE>

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

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

6.      Issuer Revenue Ledger

        The Issuer Cash Manager shall ensure that:

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

               (i)    all interest fees and any other amount (not including
                      principal), if any, paid by Funding 2 to the Master
                      Issuer under the terms of the Global Intercompany Loan
                      Agreement;

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

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

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

        (b)    any payment or provision made under paragraph 3 of this
               Schedule 2 shall be debited to the Issuer Revenue Ledger;

        (c)    the amounts received from Funding 2 in respect of items ([C]),
               ([S]), ([U]) and ([V]) of the Funding 2 Pre-Enforcement Revenue
               Priority of Payments shall be credited to the Issuer Expense
               Sub-Ledger; and

        (d)    the amounts received from Funding 2 in respect of interest due
               on a Loan Tranche shall be credited to a sub-ledger (in respect
               of a related Series and Class of Issuer Notes) to the Issuer
               Revenue Ledger and payments of interest in respect of such
               Series and Class of Issuer Notes by the Master Issuer shall be
               debited to such sub-ledger.

7.      Issuer Principal Ledger

        The Issuer Cash Manager shall ensure that:

        (a)    all principal paid by Funding 2 to the Master Issuer under the
               terms of the Global Intercompany Loan Agreement shall be
               credited to the Issuer Principal Ledger;

        (b)    any payment or provision made under paragraph 4 of Schedule 2
               of the Issuer Deed of Charge shall be debited to the Issuer
               Principal Ledger; and

                                      28
<PAGE>

        (c)    the amounts of principal received from Funding 2 in respect of
               a Loan Tranche shall be credited to a sub-ledger to the Issuer
               Principal Ledger in respect of the Series and Class of Issuer
               Notes which funded such Loan Tranche and repayments of
               principal in respect of such Series and Class of Issuer Notes
               by the Issuer or on its behalf shall be debited to such
               sub-ledger.

8.      Issuer Reserve Ledger

        The Issuer Cash Manager shall ensure that:

        (a)    amounts advanced under the Issuer Start-Up Loan shall be
               credited to the Issuer Reserve Ledger to fund it initially and
               replenish it; and

        (b)    [amounts shall be credited to the Issuer Reserve Ledger to
               replenish it in accordance with the Issuer Priority of
               Payments.]

9.      Records

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

10.     Swap Collateral Ledger

        In connection with Swap Collateral the Issuer Cash Manager shall
        ensure that the appropriate debits and credits are made to the Swap
        Collateral Ledger in accordance with Clause 4.8 (Swap Collateral).

11.     Issuer Note Ledger

        The Issuer Cash Manager shall ensure that:

        The following amounts shall be debited on a sub-ledger to the Issuer
        Note Ledger in respect of a Series and Class of Issuer Notes:

        (a)    all interest, fees and any other amount (not including
               principal), if any, paid by the Master Issuer in respect of
               such Series and Class of Issuer Notes under the terms and
               conditions of such Series and Class of Issuer Notes; and

        (b)    all amounts of principal, if any, paid by the Master Issuer in
               respect of such Series and Class of Issuer Notes under the
               terms and conditions of such Series and Class of Issuer Notes.

        The following amounts shall be credited on such sub-ledger

        (a)    the initial Principal Amount Outstanding of such Series and
               Class of Issuer Notes; and

        (b)    all interest, fees and any other amounts incurred in respect of
               such Series and Class of Issuer Notes under the terms and
               conditions of such Series and Class of Issuer Notes.

                                      29
<PAGE>

                           [New form to be provided]

                                  SCHEDULE 3

                        Form of Issuer Quarterly Report

Granite Mortgages 04-3 plc

Profit & Loss Account

Period Ended

                                                  This Quarter    Prior Quarter

                                                  (GBP) 000's     (GBP) 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

                                      30
<PAGE>

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

                                      31
<PAGE>

Granite Mortgages 04-3 plc

Balance Sheet

Period Ended

                                                   (GBP) 000's     (GBP) 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

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

                                      32
<PAGE>

Granite Mortgages 04-3 plc

Balance Sheet

Period Ended

Current Issuer Notes to Balance Sheet:

Principal Deficiency Ledger

Class A Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

Class B Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

Class M Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

Class C Principal Deficiency Sub Ledger

Opening PDL Balance

Losses this Quarter

Amount of PDL top-up

Closing PDL Balance

                                      33
<PAGE>

<TABLE>
<CAPTION>
Granite Mortgages 04-3 plc

Balance Sheet

Period Ended

Granite Mortgages 04-3 plc
Notes Outstanding

Period Ended

                                  Series 1    Series 1    Series 1    Series 2    Series 2    Series 3    Series 3
                                  Class A1    Class A2    Class A3    Class A1    Class A2    Class A1    Class A2

<S>                               <C>         <C>         <C>         <C>         <C>         <C>         <C>
Moody's Current Rating
Fitch Ratings Current Rating
S&P Current Rating

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

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

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

                                  Series 1    Series 1    Series 1    Series 2    Series 2    Series 3    Series 3
                                  Class A1    Class A2    Class A3    Class A1    Class A2    Class A1    Class A2
Initial Note Balance
Previous Quarters Note Principal
Note Redemptions
Outstanding Note Principal

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

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

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

                                                         34
<PAGE>

Granite Mortgages 04-3 plc

Balance Sheet

Period Ended

                                  Series 1    Series 1    Series 1    Series 2    Series 2    Series 3    Series 3
                                  Class A1    Class A2    Class A3    Class A1    Class A2    Class A1    Class A2

Note Interest Margins
Step Up Dates
Step Up Margins

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

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

                                  Series 1                            Series 2                Series 3
                                  Class C                             Class C                 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>

                                                         35
<PAGE>

                                  SCHEDULE 4

                    Issuer Cash Manager Representations and Warranties

The Issuer Cash Manager makes the following representations and warranties to
each of the Master Issuer and the Issuer Security 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 Issuer
        Cash Manager, and the Issuer Cash Manager is not insolvent.

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

                                      36
<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 Issuer Cash
               Manager; and

        (c)    save as disclosed therein, give a true and fair view of the
               financial condition and operations of the 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 Issuer Cash Manager were stated to be
        prepared, there has been:

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

        (b)    no material adverse change in the financial position or
               prospects of the 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 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 Issuer Cash Manager is true and accurate in all material
        respects and not misleading in any material respect.

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

                                      37
<PAGE>

                                EXECUTION PAGE

<TABLE>
<CAPTION>
<S>                                               <C>
The Issuer Cash Manager

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

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

The Master Issuer

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

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

The Issuer Security Trustee

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

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

                                      38Exhibit 4.10

                               [o] January 2005
                               ----------------

                               NORTHERN ROCK PLC
                               as Administrator

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                               NORTHERN ROCK PLC
                           as Seller and Beneficiary

                        GRANITE FINANCE FUNDING LIMITED
                                as Beneficiary

                       GRANITE FINANCE FUNDING 2 LIMITED
                                as Beneficiary

                                    - and -

                             THE BANK OF NEW YORK
             as Security Trustee and Funding 2 Security Trustee

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

                           ADMINISTRATION AGREEMENT
                    SIXTH DEED OF AMENDMENT AND RESTATEMENT

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

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

<PAGE>

THIS DEED is made on [o] January 2005

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 Administrator;

(2)   GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
      limited company incorporated under the laws of Jersey, Channel Islands
      whose registered office is at 22 Grenville Street, St. Helier, Jersey
      JE4 8PX, Channel Islands in its capacity as Mortgages Trustee;

(3)   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 Seller and in its capacity as a Beneficiary;

(4)   GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
      limited company incorporated under the laws of Jersey, Channel Islands
      but acting out of its offices established in England (registered
      overseas company number FC022999 and branch number BR005916) at 69 Park
      Lane, Croydon CR9 1TQ in its capacity as a Beneficiary;

(5)   GRANITE FINANCE FUNDING 2 LIMITED (registered number 5249887), a private
      limited company incorporated under the laws of England and Wales whose
      registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX in
      its capacity as a Beneficiary; and

(6)   THE BANK OF NEW YORK a New York banking corporation whose London branch
      address is at One Canada Square, 48th Floor, London E14 5AL in its
      capacity as (1) Security Trustee and (2) Funding 2 Security Trustee.

WHEREAS:

(A)   The Administrator carries on the business of, inter alia, administering
      mortgage loans secured on residential properties within the United
      Kingdom.

(B)   The Seller has sold and assigned to the Mortgages Trustee certain
      Mortgage Loans, together with the benefit of Related Security for the
      same on the terms and subject to the conditions set out in the Mortgages
      Sale Agreement among the parties hereto.

(C)   The Administrator has agreed to administer the Mortgage Loans on behalf
      of the Mortgages Trustee (for and on behalf of the Seller and Funding)
      and to provide certain other administration and management services to
      the Mortgages Trustee, the Seller and Funding on the terms and subject
      to the conditions contained in the Administration Agreement dated 26
      March 2001 (as amended, varied, novated or supplemented from time to
      time, the "Administration Agreement").

(D)   The parties have agreed to amend and restate the Administration
      Agreement (the "First Amended and Restated Administration Agreement")
      pursuant to the

<PAGE>

      provisions set out in a deed of amendment and restatement dated 28
      September 2001 (the "First Deed of Amendment and Restatement").

(E)   The parties have agreed to amend and restate the First Amended and
      Restated Administration Agreement (the "Second Amended and Restated
      Administration Agreement") pursuant to the provisions set out in a deed
      of amendment and restatement dated 27 January 2003 (the "Second Deed of
      Amendment and Restatement").

(F)   The parties have agreed to amend and restate the Second Amended and
      Restated Administration Agreement (the "Third Amended and Restated
      Administration Agreement") pursuant to the provisions set out in a deed
      of amendment and restatement dated 24 September 2003 (the "Third Deed of
      Amendment and Restatement").

(G)   The parties have agreed to amend and restate the Third Amended and
      Restated Administration Agreement (the "Fourth Amended and Restated
      Administration Agreement") pursuant to the provisions set out in a deed
      of amendment and restatement dated 28 January 2004 (the "Fourth Deed of
      Amendment and Restatement").

(H)   The parties have agreed to amend and restate the Fourth Amended and
      Restated Administration Agreement (the "Fifth Amended and Restated
      Administration Agreement") pursuant to the provisions set out in a deed
      of amendment and restatement dated 25 June 2004 (the "Fifth Deed of
      Amendment and Restatement").

(I)   The parties now wish to amend and restate, and Funding 2 and the Funding
      2 Security Trustee wish to become party to, the Amended and Restated
      Administration Agreement pursuant to the provisions set out herein.

(J)   With effect from the date hereof, the provisions of the Administration
      Agreement, the First Amended and Restated Administration Agreement, the
      Second Amended and Restated Administration Agreement, the Third Amended
      and Restated Administration Agreement, the Fourth Amended and Restated
      Administration Agreement, the Fifth Amended and Restated Administration
      Agreement and this Deed shall be read and construed as follows.

NOW IT IS HEREBY AGREED as follows:

1.    INTERPRETATION

1.1   The provisions of the Programme Master Definitions Schedule made on [o]
      January 2005 signed for the purposes of identification on [o] January
      2005 by Sidley Austin Brown & Wood and Allen & Overy LLP (as the same
      may be amended, varied or supplemented from time to time with the
      consent of the parties hereto) is expressly and specifically
      incorporated into and shall apply to this Deed.

1.2   The Administration Agreement as amended and restated pursuant to the
      First Deed of Amendment and Restatement, the Second Deed of Amendment
      and Restatement, the Third Deed of Amendment and

                                      2
<PAGE>

      Restatement, the Fourth Deed of Amendment and Restatement, the Fifth
      Deed of Amendment and Restatement and pursuant hereto shall be referred
      to herein as the "Amended and Restated Administration Agreement".

1.3   As used in the Amended and Restated Administration Agreement the terms
      "Administration Agreement", "this Administration Agreement",
      "Agreement", "this Agreement", "herein", "hereinafter", "hereof",
      "hereto" and other words of similar import shall mean or refer to the
      Amended and Restated Administration Agreement, unless the context
      otherwise specifically requires.

2.    AMENDMENTS TO THE FIFTH AMENDED ADMINISTRATION AGREEMENT

      Upon execution of this Deed by the parties hereto, the Fifth Amended and
      Restated Administration Agreement shall be and hereby is amended and
      restated in the form of Appendix I hereto.

3.    CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

      No person shall have any right to enforce any provision of this Deed or
      any provision of the Amended and Restated Administration Agreement under
      the Contract (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.

4.    COUNTERPARTS

      This Deed may be executed in any number of counterparts, and has the
      same effect as if the signatures and/or seals on the counterparts were
      on a single copy of this Deed.

5.    GOVERNING LAW

5.1   This Deed is governed by, and shall be construed in accordance with,
      English law.

5.2   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 Deed and, for such purposes, irrevocably submits to
      the jurisdiction of such courts.

                                      3
<PAGE>

                                EXECUTION PAGE

IN WITNESS WHEREOF this Deed has been executed as a deed and delivered by the
parties hereto on the day and year first above written.

as Administrator, Seller and Beneficiary

EXECUTED AS A DEED by                     )
NORTHERN ROCK PLC                         )
by:                                       )

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

as Mortgages Trustee

EXECUTED AS A DEED by                     )
GRANITE FINANCE TRUSTEES LIMITED          )
by:                                       )

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

                                      4
<PAGE>

as Beneficiary

EXECUTED AS A DEED by                     )
GRANITE FINANCE FUNDING LIMITED           )
by:                                       )

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

as Beneficiary

EXECUTED AS A DEED by                     )
GRANITE FINANCE FUNDING 2 LIMITED         )
by:                                       )

Director

Name:

Title:

Director/Company Secretary

Name:

Title:

                                      5
<PAGE>

as Security Trustee and Funding 2 Security Trustee

EXECUTED AS A DEED by                     )
THE BANK OF NEW YORK                      )
acting by:                                )

Authorised Signatory

Name:

Title:

                                      6
<PAGE>

                                  Appendix I

               Amended and Restated Administration Agreement

                                      7
<PAGE>

                                Dated [o] 2005
                                --------------

                               NORTHERN ROCK PLC
                               as Administrator

                                    - and -

                       GRANITE FINANCE TRUSTEES LIMITED
                             as Mortgages Trustee

                                    - and -

                               NORTHERN ROCK PLC
                                   as Seller

                        GRANITE FINANCE FUNDING LIMITED
                                as Beneficiary

                                    - and -

                             THE BANK OF NEW YORK
                              as Security Trustee

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

                          SIXTH AMENDED AND RESTATED
                           ADMINISTRATION AGREEMENT

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

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

<PAGE>

                                   CONTENTS

Clause                                                             Page No.

1.    Definitions and Interpretation.......................................2

2.    Appointment of Administrator.........................................2

3.    The Administration Services..........................................3

4.    Interest Rates.......................................................7

5.    Administration of Mortgages.........................................11

6.    No Liability........................................................16

7.    New Mortgage Loans..................................................16

8.    Product Switching and Further Advances..............................16

9.    Redemption of Mortgages.............................................17

10.   Powers of Attorney..................................................17

11.   Costs and Expenses..................................................18

12.   Information.........................................................18

13.   Remuneration........................................................21

14.   Insurances..........................................................21

15.   Title Deeds.........................................................23

16.   Data Protection.....................................................24

17.   Covenants and Representations and Warranties of Administrator.......25

18.   Services Non-exclusive..............................................26

19.   Termination.........................................................26

20.   Further Assurances..................................................30

21.   Miscellaneous.......................................................30

22.   Confidentiality.....................................................32

23.   No Partnership......................................................32

24.   Assignment..........................................................32

25.   Security Trustee; Authorised Third Party............................33

<PAGE>

26.   New Intercompany Loan Agreements....................................34

27.   Non Petition Covenant; Limited Recourse.............................34

28.   Amendments and Waiver...............................................36

29.   Notices.............................................................36

30.   Third Party Rights..................................................37

31.   Execution in Counterparts; Severability.............................37

32.   Governing Law and Submission to Jurisdiction........................38

33.   Process Agent.......................................................38

34.   Appropriate Forum...................................................38

SCHEDULE 1  THE SERVICES..................................................39

SCHEDULE 2  FORM OF INVESTORS' QUARTERLY REPORT...........................40

SCHEDULE 3  ADMINISTRATOR REPRESENTATIONS AND WARRANTIES..................44

SCHEDULE 4  AUTHORISED THIRD PARTY........................................46

SCHEDULE 5  MINIMUM SERVICING STANDARDS...................................49

<PAGE>

THIS SIXTH AMENDED AND RESTATED ADMINISTRATION AGREEMENT DATED [o] 2005 AMENDS
AND RESTATES THE ADMINISTRATION AGREEMENT DATED 26 MARCH 2001 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 Administrator;

(2)     GRANITE FINANCE TRUSTEES LIMITED (registered number 79309), a private
        limited company incorporated under the laws of Jersey whose registered
        office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX, Channel
        Islands in its capacity as Mortgages Trustee;

(3)     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 Seller and its capacity as a
        Beneficiary;

(4)     GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
        limited company incorporated under the laws of Jersey but acting out
        of its branch office established in England (registered overseas
        company number FC022999 and branch number BR0051916) at 69 Park Lane,
        Croydon CR9 1TQ in its capacity as a Beneficiary; and

(5)     THE BANK OF NEW YORK, a New York banking corporation whose London
        branch address is at One Canada Square, 48th Floor, London E14 5AL, in
        its capacity as Security Trustee.

WHEREAS:

(A)     The Administrator carries on the business of, inter alia,
        administering mortgage loans secured on residential properties located
        within the United Kingdom.

(B)     By the Mortgage Sale Agreement, the Seller has agreed to sell and
        assign the Mortgage Loans and Related Security comprised in the
        Mortgage Portfolio to the Mortgages Trustee. The Mortgages Trustee
        shall hold the Mortgage Portfolio together with any New Mortgage
        Portfolio on trust for Funding, Funding 2 and the Seller pursuant to
        the terms of the Mortgages Trust Deed.

(C)     The Administrator is willing to administer the Mortgage Loans on
        behalf of the Mortgages Trustee and to provide certain other
        administration and management services to the Mortgages Trustee, the
        Seller, Funding and Funding 2 on the terms and subject to the
        conditions contained in this Agreement in relation to, inter alia, the

<PAGE>

        Mortgage Loans and Related Security sold and assigned to the Mortgages
        Trustee by the Seller.

IT IS HEREBY AGREED as follows:

1.      Definitions and Interpretation

1.1     Definitions: The provisions of the Programme Master Definitions
        Schedule signed for the purposes of identification by Sidley Austin
        Brown & Wood and Allen & Overy LLP on [o], 2005 (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.

1.2     Exercise of Discretion: Any reference in this Agreement to any
        discretion, power or right on the part of the Mortgages Trustee shall
        be as exercised by the Mortgages Trustee only as directed by the
        Beneficiaries but subject in each case to the provisions of the
        Mortgages Trust Deed.

1.3     Schedules: For the avoidance of doubt, the parties hereto agree that
        the Schedules attached to this Agreement shall form a part of this
        Agreement, and the provisions of this Agreement shall be construed in
        accordance with such Schedules.

2.      Appointment of Administrator

2.1     Appointment: Subject to Clause 4.5 (Termination of Authority) herein,
        and until termination pursuant to Clause 19 herein (Termination), the
        Mortgages Trustee hereby appoints the Administrator to administer the
        Mortgages Loans on its behalf, and each of the Mortgage Trustee, the
        Seller and Funding (according to their respective estates and
        interests) hereby appoints the Administrator as its lawful agent on
        its behalf to provide certain other administration and management
        services and to exercise their respective rights, powers and
        discretions, and to perform their respective duties, under and in
        relation to the Mortgage Loans and their Related Security. The
        Administrator in each case hereby accepts such appointment on the
        terms and subject to the conditions of this Agreement. The Security
        Trustee consents to the appointment of the Administrator on the terms
        of and subject to the conditions of this Agreement.

2.2     Appointment by Funding 2: Subject to Clause 4.5 (Termination of
        Authority) herein, and until termination pursuant to Clause 19
        (Termination) herein, Funding 2 (according to its estates and
        interests) hereby appoints the Administrator as its lawful agent on
        its behalf to provide certain other administration and management
        services and to exercise its rights, powers and discretions, and to
        perform its duties, under and in relation to the Mortgage Loans and
        their Related Security. The Administrator hereby accepts such
        appointment on the terms and subject to the conditions of this
        Agreement. The Funding 2 Security Trustee consents to the appointment
        of the Administrator on the terms of and subject to the conditions of
        this Agreement.

2.3     Power and Authority: For the avoidance of doubt and in connection with
        the rights, powers and discretions conferred under Clause 2.1
        (Appointment) and Clause 2.2 (Appointment by Funding 2) herein, during
        the continuance of its appointment hereunder, the Administrator shall,
        subject to the terms and conditions of this

                                      2
<PAGE>

        Agreement, the Mortgage Conditions, the Mortgage Sale Agreement and
        the Mortgages Trust Deed, have the full power, authority and right to
        do or cause to be done any and all things which it reasonably
        considers necessary, convenient or incidental to the administration of
        the Mortgage Loans and their Related Security or the exercise of such
        rights, powers and discretions, provided however that neither the
        Mortgages Trustee, the Funding Beneficiaries nor their respective
        directors shall be required or obliged at any time to enter into any
        transaction or to comply with any directions which the Administrator
        may give with respect to the operating and financial policies of the
        Mortgages Trustee and/or the Funding Beneficiaries and the
        Administrator hereby acknowledges that all powers to determine such
        policies (including the determination of whether or not any particular
        policy is for the benefit of the Mortgages Trustee or any Funding
        Beneficiary) are, and shall at all times remain, vested, as the case
        may be, in the Mortgages Trustee and/or each Funding Beneficiary (and
        their respective directors) and none of the provisions of this
        Agreement shall be construed in a manner inconsistent with this
        proviso.

2.4     Appointment Conditional: The appointment pursuant to Clause 2.1
        (Appointment) herein is conditional upon the issue of the First Issuer
        Notes having taken place and shall take effect upon and from the
        Initial Closing Date automatically without any further action on the
        part of any person PROVIDED THAT if the issue of the First Issuer
        Notes has not occurred by 30 April 2001, or such later date as the
        First Issuer and the Lead Manager may agree, this Agreement shall
        cease to be of further effect.

2.5     Appointment by Funding 2 Conditional: The appointment pursuant to
        Clause 2.2 (Appointment by Funding 2) herein is conditional upon the
        acquisition by Funding 2 from the Seller of part of the Seller Share
        of the Trust Property and shall take effect upon and from the Funding
        2 Program Date automatically without any further action on the part of
        any person PROVIDED THAT if Funding 2 has not acquired from the Seller
        part of the Seller Share of the Trust Property by [o], 2005, or such
        later date as Funding 2 and the Seller may agree, the appointment of
        the Administrator as agent of Funding 2 under Clause 2.2 (Appointment
        by Funding 2) shall not take effect.

3.      The Administration Services

3.1     General:

        (a)  The duty of the Administrator shall be to provide the services
             set out in this Agreement including Schedule 1 (the "Services").

        (b)  If and when the Administrator is required to confirm or state the
             capacity in which it is administering or servicing the Mortgage
             Loans and their Related Security in the Mortgage Portfolio and
             related matters pursuant to this Agreement by any Borrower or any
             third party to this Agreement and to whom the Administrator is by
             law obliged to disclose such information, unless otherwise
             indicated herein the Administrator shall confirm or state that it
             is acting in its capacity as administrator of such Mortgage Loans
             and their Related Security and related matters as agent for and
             on behalf of the Mortgages Trustee and not on its own behalf.

                                      3
<PAGE>

3.2     Sub-contracts:

        (a)  The Administrator may sub-contract or delegate the performance of
             all or any of its powers and obligations under this Agreement,
             provided that (but subject to Clause 3.2(b) herein):

             (i)    the prior written consent of the Mortgages Trustee to the
                    proposed arrangement (including, if the Funding
                    Beneficiaries consider it necessary after consulting with
                    the Funding Security Trustees, approving any contract
                    which sets out the terms on which such arrangements are to
                    be made) has been obtained, the Funding Security Trustees
                    have been consulted and notification has been given to
                    each of the Rating Agencies;

             (ii)   where the arrangements involve the custody or control of
                    any Mortgage Loan Files and/or Title Deeds relating to the
                    Mortgage Portfolio for the purpose of performing any
                    delegated Services, the sub-contractor or delegate has
                    executed an acknowledgement in writing acceptable to the
                    Funding Beneficiaries and the Funding Security Trustees to
                    the effect that any such Mortgage Loan Files and/or Title
                    Deeds are and will be held to the order of the Mortgages
                    Trustee (as trustee for the Beneficiaries);

             (iii)  where the arrangements involve or may involve the receipt
                    by the sub-contractor or delegate of monies belonging to
                    the Mortgages Trustee and/or the Beneficiaries which, in
                    accordance with this Agreement, are to be paid into the
                    relevant Collection Account, the sub-contractor or
                    delegate has executed a declaration in writing acceptable
                    to the Funding Beneficiaries and the Funding Security
                    Trustees that any such monies held by it or to its order
                    are held on trust for the Mortgages Trustee (as trustee
                    for the Beneficiaries) and will be paid forthwith into the
                    relevant Collection Account in accordance with the terms
                    of the Mortgages Trust Deed;

             (iv)   any such sub-contractor or delegate has executed a written
                    waiver of any Security Interest arising in connection with
                    such delegated Services (to the extent that such Security
                    Interest relates to the Mortgage Portfolio or any amount
                    referred to in (iii) above); and

             (v)    neither the Mortgages Trustee, the Funding Security
                    Trustees nor the Beneficiaries shall have any liability
                    for any costs, charges or expenses payable to or incurred
                    by such sub-contractor or delegate or arising from the
                    entering into, the continuance or the termination of any
                    such arrangement.

        (b)  The provisos in Clause 3.2(a) (i), (ii) and (iii) herein shall
             not apply:

             (i)    to the engagement by the Administrator of:

                    (A)  any receiver, solicitor, insurance broker, valuer,
                         surveyor, accountant, estate agent, insolvency
                         practitioner, auctioneer,

                                      4
<PAGE>

                         bailiff, debt counsellor, tracing agent, property
                         management agent, licensed or qualified conveyancer
                         or other professional adviser acting as such; or

                    (B)  any locksmith, builder or other contractor acting as
                         such in relation to a Mortgaged Property, in any such
                         case being a person or persons whom the Administrator
                         would be willing to appoint in respect of its own
                         mortgages in connection with the performance by the
                         Administrator of any of its obligations or functions
                         or in connection with the exercise of its powers
                         under this Agreement; or

             (ii)   to any delegation to any wholly-owned subsidiary of the
                    Seller from time to time.

        (c)  The Mortgages Trustee and/or the Funding Beneficiaries and the
             Funding Security Trustees may require the Administrator to assign
             to the Mortgages Trustee any rights which the Administrator may
             have against any sub-contractor or delegate arising from the
             performance of services by such person in association with any
             matter contemplated by this Agreement and the Administrator
             acknowledges that such rights assigned to the Mortgages Trustee
             will be exercised by the Mortgages Trustee as trustee for the
             Beneficiaries subject to the terms of the Mortgages Trust Deed.

        (d)  Notwithstanding any sub-contracting or delegation of the
             performance of the Administrator's obligations under this
             Agreement:

             (i)    the Administrator shall not thereby be released or
                    discharged from any liability hereunder;

             (ii)   the Administrator shall remain responsible for the
                    performance of the obligations of the Administrator under
                    this Agreement;

             (iii)  the performance or non-performance or the manner of
                    performance of any sub-contractor or delegate of any of
                    the Services shall not affect the Administrator's
                    obligations under this Agreement;

             (iv)   any breach in the performance of the Services by any
                    sub-contractor or delegate shall, subject to the
                    Administrator being entitled for a period of twenty (20)
                    Business Days from receipt of notice of the breach to
                    remedy such breach by any sub-contractor or delegate, be
                    treated as a breach of this Agreement by the
                    Administrator; and

             (v)    the Funding Security Trustees shall have no liability for
                    any act or omission of the sub-contractor or delegate and
                    shall have no responsibility for monitoring or
                    investigating the suitability of any such sub-contractor
                    or delegate.

3.3     Notices etc.

        (a)  Within fifteen (15) days after the Initial Closing Date, the
             Administrator will:

                                      5
<PAGE>

             (i)    on behalf of the Mortgages Trustee (at the direction of
                    the Beneficiaries or with their consent), give to third
                    parties such notices as any of the Beneficiaries are
                    required to give pursuant to the Mortgage Sale Agreement;
                    and

             (ii)   submit for registration at the Companies Registry a duly
                    completed Form 395 and original executed copy of the First
                    Issuer Deed of Charge pursuant to Chapter 1 of Part XII of
                    the Companies Act 1985,

               and in each case, the Administrator shall take all reasonable
               steps to ensure the return by the relevant recipient of the
               duplicate notices of assignment by way of acknowledgement
               thereof.

        (b)  Promptly upon request by the Funding Beneficiaries and the
             Funding Security Trustees, the Administrator shall procure that
             any notices permitted to be given by the Mortgages Trustee under
             Clause 6.4 (Prior to Perfection) of the Mortgage Sale Agreement
             are so given by the Administrator on the Mortgages Trustee's
             behalf.

3.4     Liability of Administrator:

        (a)  The Administrator shall indemnify each of the Mortgages Trustee
             and the Beneficiaries on demand on an after-tax basis for any
             loss, liability, claim, expense or damage suffered or incurred by
             either of them in respect of the negligence or wilful default of
             the Administrator in carrying out its functions as Administrator
             under this Agreement or the other Transaction Documents or as a
             result of a breach by the Administrator of the terms and
             provisions of this Agreement or the other Transaction Documents
             in relation to such functions.

        (b)  For the avoidance of doubt, the Administrator shall not be liable
             in respect of any loss, liability, claim, expense or damage
             suffered or incurred by the Mortgages Trustee and/or the
             Beneficiaries and/or any other person as a result of the proper
             performance of the Services by the Administrator save where such
             loss, liability, claim, expense or damage is suffered or incurred
             as a result of any negligence or wilful default of the
             Administrator or as a result of a breach by the Administrator of
             the terms and provisions of this Agreement or the other
             Transaction Documents in relation to such functions.

        (c)  Any indemnification under this Clause 3.4 in respect of loss
             suffered by the Beneficiaries whilst Northern Rock is the
             Administrator, shall be paid for by reducing the Seller Share of
             the Trust Property by an amount equal to the relevant loss
             incurred by the Beneficiaries in accordance with Clause 8.5
             (Adjustments to Trust Property) of the Mortgages Trust Deed and
             Schedule 2 to the Cash Management Agreement.

3.5     Perfection of Mortgages Trustee's and Beneficiaries' Title to the
        Mortgage Loans

        Subject to Clause 6 of the Mortgage Sale Agreement:

        (a)  upon the receipt by the Seller of a written request in accordance
             with Clause 6.2 (Perfection) of the Mortgage Sale Agreement to
             execute transfers and/or

                                      6
<PAGE>

             assignments, the Administrator shall execute or procure the
             execution of such transfers and/or assignments on behalf of the
             Seller or shall provide sufficient information to enable the
             Mortgages Trustee, either Funding Beneficiary or either Funding
             Security Trustee to do so; and

        (b)  upon the Seller being required to do so in accordance with Clause
             6.1 (Perfection Events) of the Mortgage Sale Agreement, the
             Administrator shall do all or any of the acts, matters or things
             referred to in Clauses 6.2 (Perfection) and 6.3 (Transfer
             Documents) of the Mortgage Sale Agreement.

4.      Interest Rates

4.1     Determination of Interest Rates: Subject to the provisions of
        applicable law, regulations and rules and any regulatory undertakings
        binding on the Administrator or the Issuer from time to time and
        subject to the following provisions of this Clause 4, the Mortgages
        Trustee and each of the Beneficiaries each hereby grants the
        Administrator full right, liberty and authority from time to time to
        determine:

        (a)  in accordance with the applicable Mortgage Conditions, Mortgage
             Terms and the Base Rate Pledge, the Standard Variable Rate and
             any other discretionary rates and margins applicable to the
             Mortgage Loans chargeable to Borrowers from time to time; and

        (b)  the Existing Borrowers' Re-Fix Rate in accordance with Clause 4.4
             (Existing Borrowers' Re-Fix Rate) herein.

        In exercising such right, liberty and authority the Administrator
        undertakes to each of the other parties to this Agreement that it
        shall not at any time set or maintain the Standard Variable Rate and
        any other discretionary rates and margins applicable to the Mortgage
        Loans at rates which are higher than the then prevailing equivalent
        rates offered by the Seller, unless the Administrator is required to
        do so pursuant to Clause 4.3 (Interest Rate Shortfall) herein, and,
        subject to that requirement, that it shall not change the Standard
        Variable Rate and any other discretionary rates and margins applicable
        to the Mortgage Loans save for the same reasons as the Seller was
        entitled, under the Mortgage Conditions, to change the then prevailing
        equivalent rates offered by the Seller prior to the sale and
        assignment to the Mortgages Trustee of the Mortgage Loans comprised in
        the Mortgage Portfolio and their Related Security. Each Issuer,
        Funding Beneficiary and Funding Security Trustee shall be bound by any
        Mortgage Rates (including the Existing Borrowers' Re-Fix Rate)
        determined by the Administrator in accordance with this Clause 4.

4.2     Notification to Borrowers: The Administrator shall take all steps
        necessary pursuant to the relevant Mortgage Conditions and/or
        applicable law, regulations and rules to bring each change in the
        Standard Variable Rate and any other discretionary rate or margin
        applicable to the Mortgage Loans and any consequent changes in Monthly
        Payments to the attention of the relevant Borrowers and shall, as soon
        as reasonably practicable after any change in such rates, provide
        details of such changes to the Mortgages Trustee, each Funding
        Security Trustee and each Beneficiary, and shall, upon receipt of a
        request from any of such parties, notify such requesting party of any
        changes in the Monthly Payments in relation to the Mortgage Loans.

                                      7
<PAGE>

4.3     Interest Rate Shortfall:

        (a)  On each Payment Date the Administrator shall determine, having
             regard to:

             (i)    the income which each of Funding and Funding 2 would
                    expect to receive during the next succeeding Interest
                    Period;

             (ii)   the Mortgage Rates in respect of the Mortgage Loans which
                    the Administrator proposes to set under this Clause 4; and

             (iii)  the other resources available to Funding including (but
                    not limited to) the Funding Reserve Fund and amounts
                    standing to the credit of any applicable Issuer Reserve
                    Fund and/or any applicable Issuer Liquidity Reserve Fund
                    and the other resources available to Funding 2 including
                    (but not limited to) the Funding 2 Reserve Fund, the
                    Funding 2 Liquidity Reserve Fund and any applicable Issuer
                    Reserve Fund,

              whether:

                    (A)  Funding would receive an amount of income during that
                         Interest Period which when aggregated with the funds
                         otherwise available to it is less than the amount
                         which is the aggregate of (1) the amount of interest
                         which will be payable by Funding in order to fund
                         (whether by payment to a swap provider or otherwise)
                         the amount of interest payable in respect of the
                         Class A Notes of the Funding Issuers and all amounts
                         which rank in priority thereto on the Payment Date
                         occurring at the end of such Interest Period, and (2)
                         all other amounts payable by Funding which rank in
                         priority to or pari passu with interest due on each
                         Funding Intercompany Loan in respect of interest
                         which is payable on the Class A Notes of the Funding
                         Issuers (the amount (if any) by which it is less
                         being the "Funding Interest Rate Shortfall"); and

                    (B)  Funding 2 would receive an amount of income during
                         that Interest Period which when aggregated with the
                         funds otherwise available to it is less than the
                         amount which is the aggregate of (1) the amount of
                         interest which would be payable by Funding 2 in order
                         to fund (whether by payment to a swap provider or
                         otherwise) the amount of interest payable in respect
                         of the AAA Loan Tranches of each Funding 2
                         Intercompany Loan and all amounts which rank in
                         priority thereto on the Payment Date occurring at the
                         end of such Interest Period and (2) all other amounts
                         payable by Funding 2 which rank in priority to or
                         pari passu with interest due on each Funding 2
                         Intercompany Loan in respect of the AAA Loan Tranches
                         (the amount (if any) by which it is less being a
                         "Funding 2 Interest Rate Shortfall").

        (b)  If the Administrator determines that there will be either a
             Funding Interest Rate Shortfall or a Funding 2 Interest Rate
             Shortfall, it will within one (1)

                                      8
<PAGE>

             London Business Day of such determination give written notice
             thereof to the Mortgages Trustee, each Funding Beneficiary and
             each Funding Security Trustee of such Interest Rate Shortfall(s)
             and of the Standard Variable Rate and other discretionary rates
             and margins applicable to the Mortgage Loans which would, in the
             Administrator's opinion, need to be set in order for:

             (i)    no Funding Interest Rate Shortfall to arise, having regard
                    to the obligations of Funding under all Funding
                    Intercompany Loans;

             (ii)   no Funding 2 Interest Rate Shortfall to arise, having
                    regard to the obligations of Funding 2 under all Funding 2
                    Intercompany Loans; and

             (iii)  no Interest Rate Shortfalls to arise, having regard to the
                    obligations of Funding and Funding 2 under all
                    Intercompany Loans.

        (c)  If the Mortgages Trustee, Funding and/or the Security Trustee
             notify the Administrator that, having regard to the obligations
             of Funding, the Standard Variable Rate and other discretionary
             rates and margins should be increased in order for no Funding
             Interest Rate Shortfall to arise, but no notification is provided
             to the Administrator in accordance with Clause 4.3(d) then the
             Administrator, as agent for and on behalf of the Mortgages
             Trustee, shall take all steps which are necessary, including
             publishing any notice which is required in accordance with the
             Mortgage Terms, to effect the changes in such rates (such changes
             being those previously notified in relation to Clause 4.3(b)(i))
             on the date(s) specified in the notice referred to in Clause
             4.3(b) herein.

        (d)  If the Mortgage Trustee, Funding 2 and/or the Funding 2 Security
             Trustee notify the Administrator that having regard to the
             obligations of Funding 2, the Standard Variable Rate and the
             other discretionary rates and margins should be increased in
             order for no Funding 2 Interest Rate Shortfall to arise, but no
             notification is provided to the Administrator in accordance with
             Clause 4.3(c) then the Administrator, as agent for and on behalf
             of the Mortgages Trustee, shall take all steps which are
             necessary, including publishing any notice which is required in
             accordance with the Mortgage Terms, to effect the changes in such
             rates (such changes being those previously notified in relation
             to Clause 4.3(b)(ii)) on the date(s) specified in the notice
             referred to in Clause 4.3(b) herein.

        (e)  If the Administrator receives notification from:

             (i)    the Mortgages Trustee, Funding and/or the Security Trustee
                    in accordance with Clause 4.3(c); and

             (ii)   the Mortgage Trustee, Funding 2 and/or the Funding 2
                    Security Trustee in accordance with Clause 4.3(d),

             then the Administrator, as agent for and on behalf of the
             Mortgages Trustee, shall take all steps which are necessary,
             including publishing any notice which is required in accordance
             with the Mortgage Terms, to effect the changes in such rates
             (such changes being those previously notified in relation to
             Clause

                                      9
<PAGE>

             4.3(b)(iii)) on the date(s) specified in the notice referred to
             in Clause 4.3(b) herein.

4.4     Existing Borrowers' Re-Fix Rate:

        (a)  The Administrator shall, in relation to each Fixed Rate Mortgage
             Loan, serve on the Seller as agent for and on behalf of, inter
             alios, the Mortgages Trustee and the Beneficiaries the notice
             referred to in Clause 8.6(a) of the Mortgage Sale Agreement sixty
             (60) days before the expiry of the initial fixed rate period (as
             defined in Clause 8.6(a) of the Mortgage Sale Agreement)
             applicable to that Fixed Rate Mortgage Loan.

        (b)  If Clause 8.6(b) of the Mortgage Sale Agreement applies to any
             Fixed Rate Mortgage Loan, the Administrator shall take all steps
             which are necessary to perform the obligations of the Seller and
             exercise the rights under such Clause.

        (c)  The Administrator shall, whenever Clause 8.6(c) of the Mortgage
             Sale Agreement applies to a Fixed Rate Mortgage Loan, determine
             (after consultation with the Swap Providers, and any other swap
             provider the Administrator (acting reasonably) determines
             appropriate) the rate (and terms) upon which the Existing
             Borrowers' Re-Fix Rate should be set having regard to the
             interests of each Swap Provider (except to the extent that the
             Administrator believes that the interests of any Swap Provider
             are materially prejudicial to the interests of the Noteholders in
             respect of the Funding Issuers and/or the Noteholders in respect
             of the Funding 2 Issuers). The Administrator will give written
             notice of such determination within one Business Day thereof to
             the Mortgages Trustee and the Beneficiaries recommending what the
             Existing Borrowers' Re-Fix Rate should be and the terms at which
             it should be offered, having regard to the interests of the Swap
             Providers (except to the extent that the Administrator believes
             that the interests of any Swap Provider are materially
             prejudicial to the interests of the Noteholders in respect of the
             Funding Issuers and/or the Noteholders in respect of the Funding
             2 Issuers). The Administrator will solicit quotations on rates
             from each of (i) the Mortgages Trustee, (ii) Funding, (iii)
             Funding 2 and (iv) other trustees for re-fixed mortgage loans in
             relation to other outstanding securitisations of the Seller (if
             any), and shall notify the Mortgages Trustee and the
             Beneficiaries as to the higher of (x) any rate provided by any of
             the parties in (i) through (iv) herein and (y) current rates for
             re-fixed mortgage loans (not included in any Mortgage Portfolio)
             in relation to other Mortgage Loans of the Administrator. If the
             Mortgages Trustee agrees in writing with such recommendation, or
             (whether or not it has received the Administrator's
             recommendation) requires alternative rates and/or terms (such
             agreement or requirement being the "EBRR Determination") the
             Administrator shall immediately notify the Seller, each Funding
             Beneficiary and each Issuer of the EBRR Determination, and take
             all steps which are necessary to enable each Funding Beneficiary
             and each Issuer to enter into the relevant swap agreement with
             the applicable Swap Provider(s) (or other swap provider whose
             appointment would not adversely affect the then current ratings
             of the Notes) at the rate (and on the terms) required in
             accordance with the EBRR Determination (the "Required Rate and
             Terms"). Nothing in this Clause 4.4(c) shall prevent the
             Mortgages Trustee from setting the Existing

                                      10
<PAGE>

             Borrowers' Re-Fix Rate in accordance with its powers under the
             Mortgage Sale Agreement.

        (d)  If Clause 8.6 (Purchase of Product Switches, Further Advances and
             purchases relating to Personal Secured Loans) of the Mortgage
             Sale Agreement applies to any Fixed Rate Mortgage Loan, and the
             Seller fails to set the Existing Borrowers' Re-Fix Rate
             immediately upon being required to do so in accordance with the
             Required Rate and Terms or otherwise to perform its obligations
             under Clause 8.6(c) of the Mortgage Sale Agreement, the
             Administrator as attorney for the Mortgages Trustee and the
             Beneficiaries shall set the Existing Borrowers' Re-Fix Rate on
             the Required Rate and Terms.

4.5     Termination of Authority: The Mortgages Trustee and/or the Funding
        Beneficiaries and the Funding Security Trustees may terminate the
        authority of the Administrator under Clauses 4.1 (Determination of
        Interest Rates) and 4.3 (Interest Rate Shortfall) herein to determine
        either of the Mortgage Rate(s) or Existing Borrowers' Re-Fix Rate on
        or after the occurrence of a Termination Event pursuant to Clause 19
        (Termination) herein, in which case the Mortgages Trustee shall set
        the Mortgage Rate(s) or Existing Borrowers' Re-Fix Rate, as
        applicable, in accordance with this Clause 4.

5.      Administration of Mortgages

5.1     Collection of Payments:

        (a)  For the purposes of collecting amounts due from any Borrower
             under a Mortgage Loan, where such Borrower makes a Monthly
             Payment by way of Direct Debit the Administrator will, unless
             otherwise agreed in writing with the Beneficiaries:

             (i)    act as collecting agent for the Beneficiaries under the
                    Direct Debiting Scheme;

             (ii)   comply with the obligations on its part set out in the
                    Bank Account Agreement including, without limitation, the
                    specific provisions relating to the collection of monies
                    set out in Clause 4 of the Bank Account Agreement;

             (iii)  comply in all material respects with the requirements from
                    time to time of the Direct Debiting Scheme; and;

             (iv)   using its reasonable endeavours, credit any Monthly
                    Payment made by a Borrower by way of Direct Debit to the
                    relevant Collection Account within one (1) London Business
                    Day of receipt (and in any event within three (3) London
                    Business Days of such receipt) into the relevant
                    Collection Account.

        (b)  The Administrator may agree with a Borrower that the Direct
             Debiting Scheme shall not apply to Monthly Payments to be made by
             such Borrower, provided that (i) alternative payment arrangements
             are made which are intended to ensure the timely making of
             Monthly Payments due from the

                                      11
<PAGE>

             Borrower to the Mortgages Trustee, and (ii) the change in
             arrangements was made at the instigation of the Borrower or by
             the Administrator in accordance with the procedures which would
             be adopted by a reasonable and prudent mortgage lender. The
             Administrator shall, using its reasonable endeavours, credit
             Monthly Payments made by a Borrower under an alternative payment
             arrangement as follows to the relevant Collection Account:

             (i)    by standing order, by close of business on the second
                    (2nd) London Business Day following the day on which such
                    amount is received or credited by the Administrator;

             (ii)   by payment of cash, transfer payment from another account
                    of the Seller or check where reference to the relevant
                    Borrower is provided or payments made by way of paying-in
                    book, by close of business on the London Business Day
                    which immediately follows the day on which such amount is
                    received or credited by the Administrator; and

             (iii)  in the case of any payment by check where a reference to
                    the relevant Borrower is not provided, by close of
                    business on the next London Business Day after
                    notification from the Operating Banks of the identity of
                    the Borrower,

        provided however, that in any event the Administrator shall credit
        Monthly Payments made by a Borrower under an alternative payment
        arrangement within three (3) London Business Days of such receipt.

        (c)  The Administrator may, notwithstanding the proviso in Clause
             5.2(b) herein, agree such procedures for the payment by a
             Borrower of (i) overdue amounts and (ii) amounts payable on
             redemption of a Mortgage in whole or in part other than through
             the Direct Debiting Scheme as would be agreed by a reasonable and
             prudent mortgage lender.

        (d)  Where a Borrower permits a Direct Debit to be made to his bank
             account, the Administrator will endeavour to procure that such
             Borrower maintains a valid and effective mandate relating to such
             Direct Debit in relation to each Monthly Payment due from that
             Borrower, provided that in any case where a Borrower will not
             permit a Direct Debit to be made to his bank account the
             Administrator will endeavour to make alternative arrangements
             acceptable to a reasonable and prudent mortgage lender so that
             such Borrower nevertheless pays each Monthly Payment on the due
             date.

        (e)  In the event that the Bankers Automated Clearing System ceases to
             operate for any reason the Administrator will use reasonable
             endeavours to make alternative arrangements for the use of the
             back-up systems available to each Account Bank.

5.2     Administration and Enforcement of Mortgages:

        (a)  The Mortgages Trustee as trustee for the Beneficiaries hereby
             directs the Administrator to administer the Mortgage Loans
             comprised in the Mortgage

                                      12
<PAGE>

             Portfolio and carry out its specific obligations under this
             Agreement in accordance with the Administration Procedures.

        (b)  The Administrator will, in relation to any default by a Borrower
             under or in connection with a Mortgage Loan or a Mortgage
             comprised in the Mortgage Portfolio, comply with the Enforcement
             Procedures or, to the extent that the Enforcement Procedures are
             not applicable having regard to the nature of the default in
             question, take such action as is not materially prejudicial to
             the interests of the Mortgages Trustee (as trustee for the
             Beneficiaries) and the Beneficiaries under the relevant MIG
             Policy, provided that:

             (i)    the Administrator shall only become obliged to comply with
                    the Enforcement Procedures (to the extent applicable) or
                    to take action as aforesaid after it has become aware of
                    the default;

             (ii)   it is acknowledged by the Beneficiaries that mortgage
                    lenders generally exercise discretion in pursuing their
                    respective enforcement procedures and that the
                    Administrator may exercise such discretion as would a
                    reasonable and prudent mortgage lender in applying the
                    Enforcement Procedures to any particular defaulting
                    Borrower or taking action as aforesaid, provided that in
                    exercising such discretion the interest of Funding and/or
                    Funding 2 in the Mortgage Portfolio is not materially
                    prejudiced; and

             (iii)  in any case where any of the Insurance Policies requires
                    exact compliance with certain enforcement procedures, the
                    Administrator shall procure the prior written consent of
                    the relevant insurance company for any deviation by it
                    from such enforcement procedures.

5.3     Records: The Administrator shall keep and maintain records in relation
        to the Mortgage Portfolio, on a Mortgage Loan by Mortgage Loan basis,
        for the purposes of identifying amounts paid by each Borrower, any
        amount due from a Borrower and the balance from time to time
        outstanding on a Borrower's account and such other records as would be
        kept by a reasonable and prudent mortgage lender. Subject always to
        the restrictions and conditions set forth in Clause 16 (Data
        Protection), the Administrator will provide such information to the
        Mortgages Trustee and/or each Funding Beneficiary and/or each Funding
        Security Trustee at any time upon reasonable notice, subject to the
        Administrator being reasonably capable of providing such information
        without significant additional cost and subject to the provisions of
        the Data Protection Act 1998 and other applicable legislation from
        time to time, and provided that no duty of confidence and no industry
        code of practice will or may be breached thereby.

5.4     Trust:

        (a)  If the Administrator, in carrying out its functions as
             Administrator under this Agreement, receives (including in its
             capacity as agent for the Mortgages Trustee as trustee for the
             Beneficiaries) any money whatsoever arising from the Mortgage
             Loans and their Related Security, which money belongs to the
             Mortgages Trustee (as trustee for the Beneficiaries) and is to be
             paid to the relevant Collection Account pursuant to this
             Agreement or any of the other Transaction Documents or otherwise,
             it will hold such monies on trust for the

                                      13
<PAGE>

             Mortgages Trustee and shall keep such money separate from all
             other monies held by the Administrator and shall, as soon as
             reasonably practicable and in any event within three (3) London
             Business Days of receipt of the same, pay the monies into the
             relevant Collection Account.

        (b)  All other sums received by the Administrator in respect of the
             Mortgage Loans and their Related Security shall be held by the
             Administrator for itself.

5.5     Together Connections Mortgage Loans and Connections Mortgage Loans:

        (a)  The Seller shall, upon request, use its reasonable endeavours to:

             (i)    provide the Mortgages Trustee, each Funding Beneficiary
                    and the Administrator with such information (including,
                    but not limited to documentary information) in its
                    possession; and

             (ii)   do such other acts and things,

             that the Mortgages Trustee, each Funding Beneficiary and the
             Administrator may require in order for such parties to exercise
             their rights and comply with their obligations under the Together
             Connections Mortgage Loans and the Connections Mortgage Loans and
             under the Transaction Documents with respect to the
             administration of such Mortgage Loans.

        (b)  Each of the Mortgages Trustee, each Funding Beneficiary and the
             Administrator shall, upon request, use their reasonable
             endeavours to:

             (i)    provide the Seller with such information (including, but
                    not limited to documentary information) in its possession;
                    and

             (ii)   do such other acts and things,

             that the Seller may require in order for the Seller to exercise
             its rights and comply with its obligations under the Together
             Connection Conditions and the Connection Conditions (where such
             rights and obligations are not required to be administered by the
             Mortgages Trustee, any Funding Beneficiary or the Administrator
             under the Transaction Documents) and in respect of the products
             linked to the Together Connections Mortgage Loans and Connections
             Mortgage Loans.

        (c)  Any notice, letter or other communication:

             (i)    received or given by the Seller under the Together
                    Connection Conditions or the Connection Conditions shall
                    be copied by the Seller to the Administrator; and

             (ii)   received or given by the Mortgages Trustee, any Funding
                    Beneficiary or the Administrator under the Together
                    Connection Conditions or the Connection Conditions shall
                    be copied by such parties to the Seller.

        (d)  The Administrator shall act in accordance with the instructions
             of the Seller in any matter where the powers, rights, obligations
             or commercial interests of the

                                      14
<PAGE>

             Seller under the Together Connection Conditions or the Connection
             Conditions or with respect to the products linked to the Together
             Connections Mortgage Loan or the Connections Mortgage Loan may be
             affected in a material manner. Such matters may include, but not
             limited to, the following:

             (i)    any request from a Borrower to amend the allocation of the
                    Together Connections Benefit or the Connections Benefit
                    that may accrue to such Borrower under the terms of the
                    relevant Together Connection Conditions or Connection
                    Conditions;

             (ii)   any amendment to the Together Connection Conditions or the
                    Connection Conditions;

             (iii)  except where the Administrator is required to act in
                    accordance with Clause 4.3 (Interest Rate Shortfall), the
                    determination or variation of the Connection Interest Rate
                    (provided that such rate shall not at any time be set at a
                    rate which is higher than the equivalent rate offered by
                    the Seller);

             (iv)   any change to the availability or amendment to the
                    eligibility of any product to be linked to a Together
                    Connections Mortgage Loan or a Connections Mortgage Loan;
                    and

             (v)    the termination of the Together Connection Conditions or
                    the Connection Conditions.

               In all other cases where the Administrator, on behalf of the
               other parties hereto is required to exercise its judgment or
               discretion in the application of the Together Connection
               Conditions or the Connection Conditions, the Administrator
               shall undertake the same in consultation with the Seller.

        (e)  The Seller shall not have any right to provide instructions to
             the Administrator in respect of any amendment to the Together
             Connection Conditions or Connection Conditions where such
             amendment will result in a Product Switch in respect of the
             applicable Together Connections Mortgage Loans or Connections
             Mortgage Loans unless the Seller has given confirmation in
             accordance with the terms of the Mortgage Sale Agreement that it
             has elected to repurchase such Together Connections Mortgage
             Loans or Connections Mortgage Loans.

5.6     Statement as to Compliance

        The Administrator shall deliver to the Mortgages Trustee not later
        than 30th April in each year commencing in 2005, an officers'
        certificate stating, as to each signatory thereof, that (i) a review
        of the activities of the Administrator during the preceding year and
        of its performance under this Agreement has been made under such
        officers' supervision and (ii) to the best of such officers'
        knowledge, based on such review, the Administrator has fulfilled all
        of its obligations under this Agreement throughout such year, or, if
        there has been a default in the fulfilment of any such obligation,
        specifying each such default known to such officers and the nature and
        status thereof.

                                      15
<PAGE>

5.7     Independent Auditors' Annual Servicer Compliance Certificate

        The Administrator shall cause an independent auditor to furnish to the
        Administrator and the Mortgages Trustee not later than 30th April in
        each year commencing in 2005 a report addressed to the Board of
        Directors of the Administrator, substantially to the effect that (a)
        such firm has examined certain documents and records of the
        Administrator relating to the servicing of residential Mortgage Loans
        under this Agreement during the preceding calendar year, (b) such
        examination (i) included such tests and auditing procedures as such
        firm considered necessary in the circumstances, and (ii) was conducted
        in compliance with the attestation standards of the American Institute
        of Certified Public Accountants, (c) management of the Administrator
        has asserted to such firm that the Administrator has complied with the
        minimum servicing standards set out in Schedule 5 and (d) in the
        opinion of such firm, such assertion of the Administrator's management
        is fairly stated in all material respects (or, if such assertion of
        the Administrator's management is not correct, stating why such
        assertion is not correct).

6.      No Liability

6.1     No Guarantee of Mortgage Loan: The Administrator shall have no
        liability for any obligation of a Borrower under any Mortgage Loan
        comprised in the Mortgage Portfolio or any Related Security and
        nothing herein shall constitute a guarantee, or similar obligation, by
        the Administrator of any Mortgage Loan, Mortgage or any Borrower.

6.2     No Guarantee to Mortgages Trustee or Beneficiaries: Save as otherwise
        provided in this Agreement, the Administrator shall have no liability
        for the obligations of the Mortgages Trustee or the Beneficiaries
        under any of the Transaction Documents or otherwise and nothing herein
        shall constitute a guarantee, or similar obligation, by the
        Administrator of the Mortgages Trustee or the Beneficiaries in respect
        of any of them.

7.      New Mortgage Loans

7.1     New Mortgage Portfolio: The Mortgage Portfolio may be augmented from
        time to time by the sale and assignment to the Mortgages Trustee on
        any Distribution Date of a New Mortgage Portfolio by the Seller.

7.2     Sale and Assignment subject to Terms: The sale and assignment of each
        New Mortgage Portfolio to the Mortgages Trustee will in all cases be
        subject to the terms set out in the Mortgage Sale Agreement including,
        without limitation, the conditions set out in Clause 4 (Sale and
        Purchase of New Mortgage Portfolios) of the Mortgage Sale Agreement
        and the representations and warranties set out in Clause 8 (Warranties
        and Repurchase by the Seller) of the Mortgage Sale Agreement.

8.      Product Switching and Further Advances

8.1     Acceptance of Application: The Administrator may accept an application
        for a Further Advance or a Product Switch on behalf of the Seller,
        upon receipt of written confirmation from the Seller that the Seller
        would, if invited to do so by the Mortgages Trustee, purchase the
        relevant Mortgage Loan and its Related Security from the Mortgages
        Trustee.

                                      16
<PAGE>

8.2     Notification: Subject to complying with the terms of Clause 8.1
        (Acceptance of Application) herein, where the Administrator accepts a
        Product Switch or a Further Advance, the Administrator shall then
        promptly notify the Seller and the Mortgages Trustee in writing.

8.3     Existing Borrowers Re-Fix Rate: Notwithstanding Clause 8.1 (Acceptance
        of Application) herein, whenever Clause 8.6 (Existing Borrowers'
        Re-Fix Rate) of the Mortgage Sale Agreement applies to a Fixed Rate
        Mortgage Loan, the Administrator may accept the exercise of an option
        by a Borrower to set the Existing Borrowers' Re-Fix Rate, subject to
        the terms of Clause 4.4 (Existing Borrowers' Re-Fix Rate) herein.

8.4     Procedures: Subject to complying with the terms of Clauses 8.1
        (Acceptance of Application) and 8.3 (Existing Borrowers' Re-Fix Rate)
        herein, the Administrator may accept requests from Borrowers for
        Product Switches and Further Advances provided that the Administrator
        acts in accordance with its then procedure which would be acceptable
        to a reasonable and prudent mortgage lender.

9.      Redemption of Mortgages

9.1     Receipt or Discharge: Upon repayment in full of all sums secured by a
        Mortgage and/or other Related Security comprised in the Mortgage
        Portfolio, the Administrator shall, and is hereby authorised by the
        Mortgages Trustee as trustee for the Beneficiaries to, execute a
        receipt or discharge or relevant Form DS1 (of the H.M. Land Registry)
        of the Mortgage and any such other or further instrument or deed of
        satisfaction regarding such Mortgage and/or the Related Security as it
        considers to be necessary or advisable and to release the relevant
        Title Deeds to the person or persons entitled thereto.

9.2     Title Deeds: The Administrator undertakes that prior to any actual
        release by it of any relevant Title Deeds it will take reasonable and
        appropriate steps to satisfy itself that the relevant Title Deeds are
        being released to the person or persons entitled thereto.

9.3     Payment of Sums Due: The Administrator shall procure that if, upon
        completion of the Enforcement Procedures, an amount in excess of all
        sums due from the relevant Borrower is recovered or received, the
        balance, after discharge of all sums due from the Borrower, is paid to
        the person or persons next entitled thereto.

10.     Powers of Attorney

10.1    Appointment: The Mortgages Trustee hereby appoints the Administrator
        as its attorney on its behalf, and in its own or the attorney's name,
        for the following purposes:

        (a)  executing all documents necessary for the purpose of discharging
             a Mortgage comprised in the Mortgage Portfolio which has been
             repaid in full and any Related Security or for the sale of a
             Mortgaged Property as Mortgagee;

        (b)  executing all documents necessary for the purpose of releasing a
             Borrower in accordance with Clause 9 (Redemption of Mortgages)
             herein;

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<PAGE>

        (c)  executing all documents and doing all acts and things which in
             the reasonable opinion of the Administrator are necessary or
             desirable for the efficient provision of the Services hereunder;
             and

        (d)  exercising its rights, powers and discretion under the Mortgages
             including the right to fix the rate of interest payable under the
             Mortgage Loans or any related rights (but subject, in relation to
             the right to set the interest rate under the Base Rate Pledge and
             the Existing Borrowers' Re-Fix Rate, to the limitations,
             conditions and qualifications set out in the Mortgage Sale
             Agreement and the powers of attorney executed pursuant to it),

        provided that, for the avoidance of doubt, these Powers of Attorney
        shall not authorise the Administrator to sell any of the Mortgage
        Loans and/or their Related Security comprised in the Mortgage
        Portfolio except as specifically authorised in the Transaction
        Documents. For the avoidance of doubt, neither the Mortgages Trustee
        nor the Funding Beneficiaries shall be liable or responsible for the
        acts of the Administrator or any failure by the Administrator to act
        under or in respect of these Powers of Attorney.

10.2    Appointments Irrevocable: The appointments contained in Clause 10.1
        (Appointment) herein shall be irrevocable unless and until the
        Mortgages Trustee and/or the Funding Beneficiaries and the Funding
        Security Trustees serve notice pursuant to Clause 19 (Termination)
        herein to terminate the Administrator's appointment under this
        Agreement upon which the appointments contained in Clause 10.1
        (Appointment) herein shall be automatically revoked.

11.     Costs and Expenses

        The Mortgages Trustee will on each Distribution Date reimburse, in
        accordance with Clause 10.2(b) of the Mortgages Trust Deed, the
        Administrator for all out-of-pocket costs, expenses and charges
        (inclusive of any amounts in respect of Irrecoverable VAT due thereon)
        properly incurred by the Administrator in the performance of the
        Services including any such costs, expenses or charges not reimbursed
        to the Administrator on any previous Distribution Date and the
        Administrator shall supply the Mortgages Trustee with an appropriate
        VAT invoice issued by the person making the supply.

12.     Information

12.1    Maintenance of Records:

        (a)  The Administrator shall keep the Mortgage Loan Files relating to
             the Mortgage Portfolio in safe custody and shall take appropriate
             technical and organisational measures against the unauthorised or
             unlawful processing of personal data and against accidental loss
             or destruction of, or damage to, personal data. The Administrator
             shall maintain in an adequate form such records as are necessary
             to enforce each Mortgage comprised in the Mortgage Portfolio and,
             where relevant, any other Related Security. The Administrator
             shall keep the Mortgage Loan Files in relation to the Mortgage
             Portfolio in such a way that they can be distinguished from
             information held by the

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<PAGE>

             Administrator for its own behalf as mortgagee or heritable
             creditor or for other third persons.

        (b)  A duplicate of any computer records held by the Administrator
             which contains information relating to the Mortgage Loans and the
             Related Security shall be lodged by the Administrator on a
             quarterly basis in a location separate from that in which the
             original computer records are stored and in an environment
             conducive to the safe storage of electronic media and which
             allows the information to be stored in an incorruptible form,
             such records to be held to the order of the Mortgages Trustee and
             to be replaced by a revised duplicate as and when the original
             records are revised. The Administrator shall keep the Mortgages
             Trustee informed of the location of the Mortgage Loan Files and
             duplicate computer records.

12.2    Use of information technology  systems:

        (a)  The Administrator will use all reasonable endeavours to negotiate
             with the relevant parties so that any intellectual property
             rights not owned by it but used by it in connection with the
             performance of its obligations under this Agreement and in
             particular all software programmes used in connection with the
             Mortgage Loans and the Related Security therefor and their
             administration are licensed or sub-licensed to the Mortgages
             Trustee as trustee for the Beneficiaries so as to permit the
             Mortgages Trustee as trustee for the Beneficiaries to use such
             intellectual property rights only in connection with the
             administration of the Mortgage Loans free of charge for so long
             as any of the Mortgage Loans are outstanding. For the avoidance
             of doubt, the Administrator shall not be in breach of its
             obligations under this Agreement if such rights and/or software
             programmes are not so licensed or sub-licensed to the Mortgages
             Trustee as trustee for the Beneficiaries at any time after it has
             ceased to be the Administrator:

        (b)  If this Agreement is terminated, then for a period of six months
             following such termination (or such shorter period as may be
             necessary to allow the administration of the Mortgage Loans to be
             transferred to another person) the Administrator shall use
             reasonable endeavours to assist the Mortgages Trustee and/or the
             Beneficiaries and/or any substitute or successor Administrator
             to:

             (i)    establish and implement a computer system for
                    administering the Mortgage Loans; and

             (ii)   load the data held by the Administrator in relation to
                    Borrowers and the Mortgage Loans on to such computer
                    system,

             and, prior to (i) and (ii) having taken place, the Administrator
             will provide all necessary access and assistance to the Mortgages
             Trustee and/or the Beneficiaries and/or the substitute
             Administrator in respect of its own intellectual property rights
             in relation to the administration of the Mortgage Loans.

        (c)  Subject always to the restrictions and conditions set forth in
             Clause 16, upon termination of the appointment of the
             Administrator under this Agreement, the

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<PAGE>

             Administrator shall forthwith deliver to the Mortgages Trustee
             and/or the Beneficiaries and/or the substitute Administrator all
             computer and data records in its possession or under its control
             relating to the affairs of or belonging to the Mortgages Trustee
             and the Beneficiaries and/or relating to the Mortgage Loans and
             the Related Security in a form agreeable to each of the
             Administrator, the Mortgages Trustee and/or the Beneficiaries
             and/or the substitute Administrator which accords with the
             standard practice of the electronic data processing industry at
             the time the event occurs.

        (d)  The Administrator covenants that it will take no action, nor omit
             to take any action, the effect or likely effect of such action or
             omission will be to terminate any existing licence agreement in
             relation to any such intellectual property rights, provided that
             a licence agreement may be terminated if it is replaced by a
             substitute arrangement under which the intellectual property
             rights, including rights to computer software, are such that the
             services resulting therefrom are equivalent to the previous
             arrangement.

12.3    Access to Books and Records: Subject to all applicable laws, and
        subject always to the restrictions and conditions set forth in Clause
        16 (Data Protection), the Administrator shall permit the Mortgages
        Trustee (and its auditors), each Funding Beneficiary (and their
        auditors), each Funding Security Trustee and any other person
        nominated by the Beneficiaries (to whom the Administrator has no
        reasonable objection) upon reasonable notice during normal office
        hours to have access, or procure that such person or persons are
        granted access, to all books of record and account (including, for the
        avoidance of doubt, the Title Deeds and Mortgage Loan Files) relating
        to the administration of the Mortgage Loans and the Related Security
        comprised in the Mortgage Portfolio and related matters in accordance
        with this Agreement.

12.4    Information Covenants:

        (a)  The Administrator shall, within ten (10) Business Days following
             each Payment Date, provide the Mortgages Trustee, the
             Beneficiaries, the Rating Agencies, the Lead Manager, Bloomberg
             L.P. (unless otherwise prohibited by law) and any other party as
             the Mortgages Trustee may direct with a report in, or
             substantially in, the form set out in Schedule 2 (Form of
             Investors' Quarterly Report) hereto (or such other form
             reasonably requested by the Mortgages Trustee and approved by the
             Beneficiaries and the Rating Agencies) and shall assist the Cash
             Manager in the production of quarterly reports substantially in
             the forms set out in Schedule 3 of the Cash Management Agreement.

        (b)  The Administrator shall notify the Rating Agencies in writing of
             the details of (i) any material amendment to the Transaction
             Documents, (ii) any proposed material change in the valuation
             procedures or policies applied or to be applied in relation to
             Mortgaged Properties by it in connection with its mortgage
             business (details of which change may be included in a report
             provided under subparagraph (a) above) and (iii) any other
             information relating to its mortgage business and financial
             condition as the Rating Agencies may reasonably request in
             connection with the ratings of the Notes of any Issuer and other
             matters contemplated by the Transaction, provided that such
             request

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<PAGE>

             does not adversely interfere with the Administrator's day to day
             provision of the Services under the other terms of this
             Agreement.

        (c)  The Administrator shall, at the request of Funding and the
             Security Trustee or Funding 2 and the Funding 2 Security Trustee
             (where the Administrator is the Seller) and at the request of any
             of the Beneficiaries (where the Administrator is no longer the
             Seller), furnish Funding and the Security Trustee and/or Funding
             2 and the Funding 2 Security Trustee and/or the Beneficiaries (as
             appropriate) and the Rating Agencies with such other information
             relating to its business and financial condition as it may be
             reasonable for Funding and the Security Trustee and/or Funding 2
             and the Funding 2 Security Trustee and/or the Beneficiaries (as
             appropriate) to request in connection with the ratings of the
             Notes of any Issuer and other matters contemplated by the
             Transaction, provided that Funding and the Security Trustee or
             Funding 2 and the Funding 2 Security Trustee or the Beneficiaries
             (as is appropriate) shall not make such a request more than once
             every three months unless, in the belief of Funding and the
             Security Trustee or Funding 2 and the Funding 2 Security Trustee
             or the Beneficiaries (as is appropriate), an Intercompany Loan
             Event of Default or a Termination Event pursuant to Clause 19
             (Termination) herein shall have occurred and is continuing or may
             reasonably be expected to occur.

13.     Remuneration

13.1    Administration Fee: The Mortgages Trustee shall pay to the
        Administrator for its Services hereunder an administration fee (the
        "Administration Fee") (inclusive of VAT) which:

        (a)  shall be calculated in relation to each Trust Calculation Period
             on the basis of the number of days elapsed and a 365 day year
             (or, in the case of a Trust Calculation Period ending in a leap
             year, a 366 day year) at the Administration Fee Rate, inclusive
             of VAT, on the aggregate amount of the Funding Share and the
             Funding 2 Share of the Trust Property as at close of business of
             such Trust Calculation Period; and

        (b)  shall be paid to the Administrator on each Distribution Date in
             the manner contemplated by and in accordance with the provisions
             of Clause 10 (Distribution of Revenue Receipts) of the Mortgages
             Trust Deed.

13.2    Substitute or Successor Administrator: If a substitute or successor
        administrator shall be appointed under this Agreement with respect to
        any of the Mortgage Loans, the Mortgages Trustee shall set the
        Administration Fee Rate with such substitute or successor
        administrator at the time such substitute or successor administrator
        enters into an administration agreement.

14.     Insurances

14.1    Administration: The Administrator will administer the arrangements for
        insurance to which the Mortgages Trustee is a party or in which either
        the Seller or the Mortgages Trustee has an interest and which relate
        to the Mortgage Loans and the Mortgages comprised in the Mortgage
        Portfolio or the business of the Mortgages Trustee.

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<PAGE>

14.2    Action of Administrator: The Administrator shall not knowingly take or
        omit to take any action which would:

        (a)  result in the avoidance or termination of any of the Insurance
             Policies in relation to any Mortgage Loans and Mortgages to which
             any Insurance Policy applies;

        (b)  reduce the amount payable on any claim made on behalf of the
             Mortgages Trustee (as trustee for the Beneficiaries) under any
             Insurance Policy; or

        (c)  invalidate any Insurance Policy.

14.3    Submission of Claims: The Administrator shall prepare and submit any
        claim under the Insurance Policies in accordance with the requirements
        of the relevant Insurance Policy and otherwise with the usual
        procedures undertaken by a reasonable and prudent mortgage lender on
        behalf of the Mortgages Trustee as trustee for the Beneficiaries and
        shall comply with the other requirements of the insurer under the
        relevant Insurance Policy.

14.4    Proceeds: The Administrator shall use its reasonable endeavours to
        credit to the relevant Collection Account all proceeds received from
        any claim made under each Insurance Policy in relation to any Mortgage
        Loan by close of business on the London Business Day which immediately
        follows the day on which such amounts are received or credited by the
        Administrator (and in any event within three (3) London Business Days
        of such receipt) and which is applied either in whole or in part in
        repayment of a Mortgage Loan.

14.5    MIG Policies:

        (a)  Without prejudice to Clause 3 (The Administration Services)
             herein, the Mortgages Trustee as trustee for the Beneficiaries
             acknowledges that the Administrator may settle or compromise
             claims on a Mortgage Loan by Mortgage Loan basis in respect of
             any MIG Policy in a manner consistent with its normal practice in
             respect of mortgage indemnity polices, provided that the
             Administrator shall not, without the prior written consent of the
             Mortgages Trustee, settle any claims or initiate any legal
             proceedings or other legal process in respect of a group of class
             of mortgages or in respect of the MIG Policies as a whole and
             provided further that each such MIG Policy and all proceeds
             thereof remain as Trust Property.

             If the Enforcement Procedures require the Administrator to make a
             claim under the relevant MIG Policy and the Administrator has
             failed to make such a claim, then the Beneficiaries may direct
             the Mortgages Trustee on their behalf to direct the Administrator
             to make a claim or, in default thereof by the Administrator, the
             Beneficiaries may direct the Mortgages Trustee to make a claim
             itself under such policy and the Administrator shall, within ten
             (10) London Business Days of receiving a written request from the
             Mortgages Trustee (as trustee for the Beneficiaries), provide the
             Mortgages Trustee with such information as the Mortgages Trustee
             may require to enable it to make a claim under the relevant MIG
             Policy.

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<PAGE>

        (b)  Without prejudice to the rights of the Administrator under Clause
             14.5(b) herein, the Administrator shall, in administering the
             Mortgage Loans, ensure that the cover under any MIG Policy
             relating to any Mortgage is not adversely affected.

14.6    Buildings Policies:

        (a)  Upon receipt of notice that any Borrower whose Mortgage Loan is
             secured by a mortgage of a leasehold (or, in Scotland, a standard
             security of a long leasehold) Mortgaged Property has failed to
             make a payment when due of any sums due under the relevant lease
             in respect of the insurance of the property, the Administrator
             may debit such Borrower's account with the relevant amount which
             shall then be paid to the relevant landlord.

        (b)  If the Administrator becomes aware that a Borrower has failed to
             pay premiums due under any Buildings Policy, the Administrator
             shall take such action as would a reasonable and prudent mortgage
             lender with a view to ensuring that the relevant Mortgaged
             Property continues to be insured in accordance with the
             applicable Mortgage Terms or the Alternative Insurance
             Requirements.

14.7    Life Policies:

        (a)  The Administrator shall use its reasonable endeavours to ensure
             that upon maturity of a Life Policy or on the death of a
             Borrower, if earlier, all sums which it is agreed between the
             Seller and the relevant Borrower are due to be paid under the
             Life Policy are paid by the relevant insurance company in
             repayment of the Mortgage for which such Life Policy is
             collateral security and credited to the relevant Collection
             Account.

        (b)  If so requested by a Borrower the Administrator may, on behalf of
             the Beneficiaries, exercise its discretion as a reasonable and
             prudent mortgage lender to agree to the release of a Life Policy
             from the relevant legal or equitable charge granted by the
             related Borrower in favour of the Seller.

15.     Title Deeds

15.1    Custody: The Administrator shall keep the Title Deeds relating to the
        Mortgage Portfolio in safe custody and shall not without the prior
        written consent of the Mortgages Trustee and the Beneficiaries part
        with possession, custody or control of them otherwise than to a
        sub-contractor or delegate appointed pursuant to Clause 3.2
        (Sub-Contracts) herein or to a solicitor, licensed or qualified
        conveyancer or authorised practitioner, subject to the usual
        undertaking to hold them to the order of the Seller (who in turn will
        hold them to the order of the Mortgages Trustee (as trustee for the
        Beneficiaries)) or to H.M. Land Registry or the Registers of Scotland
        or, upon redemption of the relevant Mortgage Loan, to the order of the
        Borrower.

15.2    Identification: The Title Deeds relating to the Mortgage Portfolio
        shall be kept in a manner such that a computer record is maintained of
        their location and they are identifiable and retrievable by reference
        to an account number and pool identifier and identifiable and
        distinguishable from the title deeds relating to other properties and

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<PAGE>

        mortgages in respect of which the Administrator is mortgagee or
        heritable creditor or administrator.

15.3    Access: The Administrator shall provide access, or procure that access
        is provided to, the Title Deeds relating to the Mortgage Portfolio to
        the Mortgages Trustee, the Beneficiaries and their respective agents
        at all reasonable times and upon reasonable notice. The Administrator
        acknowledges that the Title Deeds and Mortgage Loan Files relating to
        the Mortgage Portfolio in its possession, custody or control will be
        held to the order of the Mortgages Trustee (as trustee for the
        Beneficiaries) and that it has, in its capacity as Administrator, no
        beneficial interest therein and the Administrator (in its capacity as
        such but not in its capacity as a Beneficiary) irrevocably waives any
        rights or any Security Interest which it might have therein or to
        which it might at any time be entitled.

15.4    Delivery upon Termination: The Administrator shall, forthwith on the
        termination of the appointment of the Administrator pursuant to Clause
        19 (Termination) herein, deliver the Title Deeds and Mortgage Loan
        Files to or to the order of the Mortgages Trustee or to such person as
        the Mortgages Trustee elects as a substitute administrator in
        accordance with the terms of this Agreement upon written request by
        the Mortgages Trustee made at any time on or after notice of, or on or
        after, termination of the appointment of the Administrator pursuant to
        Clause 19 (Termination) herein.

16.     Data Protection

        The Administrator represents that as at the date hereof the
        Administrator has and hereafter it will maintain on behalf of itself
        and on behalf of the Mortgages Trustee (as trustee for the
        Beneficiaries) all appropriate registrations, licences and authorities
        (if any) required under the Data Protection Act 1998 to enable each of
        them to perform their respective obligations under this Agreement. In
        addition to the foregoing and notwithstanding any of the other
        provisions of this Agreement, each of the Administrator and the
        Mortgages Trustee hereby agree and covenant as follows:

        (a)  that only non-"personal data" (as described in the Data
             Protection Act 1998) may be transferred by the Administrator to
             the Mortgages Trustee or any other entity located in Jersey
             (unless Jersey is declared an "approved state" by the European
             Commission, in which case the Administrator may transfer such
             personal data to the Mortgages Trustee in Jersey);

        (b)  that, to the extent that circumstances enable the Mortgages
             Trustee to exercise its right to demand that the Administrator
             transfer inter alia personal data to the Mortgages Trustee, the
             Administrator shall only transfer such personal data to an agent
             of the Mortgages Trustee that is located in the United Kingdom
             and maintains all appropriate registrations, licences and
             authorities (if any) required under the Data Protection Act 1998
             (unless Jersey is declared an "approved state" by the European
             Commission, in which case the Administrator may transfer such
             personal data to the Mortgages Trustee in Jersey);

        (c)  that, to the extent that circumstances enable the Mortgages
             Trustee to exercise its right to demand that the Administrator
             transfer inter alia personal data to the Mortgages Trustee, the
             Administrator notify each Borrower that the

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<PAGE>

             Mortgages Trustee is a "data controller" (as defined in the Data
             Protection Act 1998) and provide each such Borrower with the
             address of the Mortgages Trustee;

        (d)  that the Administrator and the Mortgages Trustee will only use
             any data in relation to the Mortgage Loans and the related
             Borrowers for the purposes of administering and/or managing the
             Mortgage Portfolio, and will not sell such data to any third
             party or allow any third party to use such data other than in
             compliance with the conditions stated in this Clause 16 and for
             the sole purpose of administering and/or managing the Mortgage
             Portfolio;

        (e)  that the Mortgages Trustee will comply with the provisions of the
             Data Protection (Jersey) Law 1987 (as amended) and (so long as
             the provisions of the Data Protection Act 1998 do not conflict
             with the provisions of the Data Protection (Jersey) Law 1987)
             with the provisions of the Data Protection Act 1998 (as amended);

        (f)  that, upon the request of a Borrower, the Administrator will
             inform such Borrower that both the Administrator and the
             Mortgages Trustee are "data controllers" as described in the Data
             Protection Act 1998; and

        (g)  that both the Administrator and the Mortgages Trustee shall
             maintain a written record of their reasons for applying the Data
             Protection Order 2000 (as set forth under the Conditions under
             paragraph 3 of Part II of Schedule I of such Order).

17.     Covenants and Representations and Warranties of Administrator

17.1    Covenants: The Administrator hereby covenants with and undertakes to
        the Mortgages Trustee, each Beneficiary and each Funding Security
        Trustee that, without prejudice to any of its specific obligations
        hereunder, it will:

        (a)  administer the Mortgage Loans and their Related Security as if
             the same had not been sold and assigned to the Mortgages Trustee
             but had remained on the books of the Seller;

        (b)  provide the Services in such manner and with the same level of
             skill, care and diligence as would a reasonable and prudent
             mortgage lender;

        (c)  comply with any reasonable directions, orders and instructions
             which the Mortgages Trustee or the Beneficiaries 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
             Mortgages Trustee shall prevail;

        (d)  keep in force all licences, approvals, authorisations,
             permissions and consents which may be necessary in connection
             with the performance of the 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 Services and in particular any necessary
             registrations under the Data Protection Act 1998;

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<PAGE>

        (e)  not knowingly fail to comply with any legal requirements in the
             performance of the Services;

        (f)  make all payments required to be made by it pursuant to this
             Agreement on the due date for payment thereof in pounds sterling
             (or as otherwise required under the Transaction Documents) in
             immediately available funds for value on such day without set-off
             (including, without limitation, any fees owed to it) or
             counterclaim, but subject to any deductions required by law;

        (g)  not without the prior written consent of the Mortgages Trustee
             amend or terminate any of the Transaction Documents save in
             accordance with their terms;

        (h)  forthwith upon becoming aware of any event which may reasonably
             give rise to an obligation of the Seller to repurchase any
             Mortgage Loan pursuant to Clause 8 (Warranties and Repurchase by
             the Seller) of the Mortgage Sale Agreement, notify the Mortgages
             Trustee and the Beneficiaries in writing of such event;

17.2    Covenants to Survive: The covenants of the Administrator in Clause
        17.1 (Covenants) herein shall remain in force until this Agreement is
        terminated but without prejudice to any right or remedy of the
        Mortgages Trustee and/or the Seller and/or each Funding Beneficiary
        arising from breach of any such covenant prior to the date of
        termination of this Agreement.

17.3    Representations and Warranties: The Administrator hereby makes the
        representations and warranties to the Mortgages Trustee, each
        Beneficiary and each Funding Security Trustee that are specified on
        Schedule 3 (Administrator Representations and Warranties) hereto.

18.     Services Non-exclusive

        Nothing in this Agreement shall prevent the Administrator from
        rendering or performing services similar to those provided for in this
        Agreement to or for itself or other persons or from carrying on
        business similar to or in competition with the business of the
        Mortgages Trustee and the Beneficiaries.

19.     Termination

19.1    Termination Event: If any of the following events (each a "Termination
        Event") shall occur:

        (a)  default is made by the Administrator 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 London
             Business Days after the Administrator becoming aware of such
             default;

        (b)  default is made by the Administrator in the performance or
             observance of any of its other covenants and material obligations
             under this Agreement or any of the other Transaction Documents,
             where:

                                      26
<PAGE>

             (i)    the Security Trustee, having been informed thereof in
                    accordance with Clause 19.5 (Notification of Termination
                    Event), is of the opinion that such default is materially
                    prejudicial to the interests of the holders of the Notes
                    issued by the Funding Issuers and then outstanding; and/or

             (ii)   the Funding 2 Security Trustee, having been informed
                    thereof in accordance with Clause 19.5 (Notification of
                    Termination Event), is of the opinion that such default is
                    materially prejudicial to the interests of the holders of
                    the Notes issued by the Funding 2 Issuers and then
                    outstanding,

             and such default continues unremedied for a period of twenty (20)
             days after the Administrator becoming aware of such default,
             provided however that where the relevant default occurs as a
             result of a default by any person to whom the Administrator has
             sub-contracted or delegated part of its obligations hereunder,
             such default shall not constitute a Termination Event if within
             such twenty (20) day period the Administrator replaces the
             relevant sub-contractor or delegate with an entity capable of
             remedying such default or alternatively indemnifies the Mortgages
             Trustee and the Beneficiaries against the consequences of such
             default;

        (c)  the Administrator at any time fails to obtain or maintain the
             necessary license or regulatory approval required by any UK
             mortgage or credit regulatory regime which would be required in
             order to enable it to continue administering the Mortgage Loans;
             or

        (d)  the Administrator becomes subject to an Insolvency Event,

        then the Mortgages Trustee and/or Funding and the Security Trustee
        and/or Funding 2 and the Funding 2 Security Trustee may at once or at
        any time thereafter while such default continues, by notice in writing
        to the Administrator, terminate its appointment as Administrator under
        this Agreement with effect from a date (not earlier than the date of
        the notice) specified in such notice. Upon termination of the
        appointment of the Administrator, the Funding Security Trustees shall
        use their reasonable endeavours (subject to the terms of the Funding
        Beneficiary Deed) to appoint a substitute Administrator that satisfies
        the conditions set forth in Clause 19.2(c), (d) and (e), provided that
        in the event the Funding Security Trustees have not, having used
        reasonable endeavours (subject to the terms of the Funding Beneficiary
        Deed) appointed a substitute Administrator, they shall have no
        liability to any person and, notwithstanding any other provision of
        the Transaction Documents, shall not themselves be required to perform
        any duties of the Administrator.

19.2    Resignation: The Administrator may resign under this Agreement at any
        time following the expiry of not less than 12 months' notice of
        resignation given by the Administrator to the Mortgages Trustee and
        the Beneficiaries provided that:

        (a)  the Mortgages Trustee and the Beneficiaries consent in writing to
             such termination;

        (b)  a substitute administrator is appointed by the Mortgages Trustee,
             the Funding Beneficiaries and the Funding Security Trustees (and
             in the event of failure to

                                      27
<PAGE>

             agree, by the Funding Security Trustees), such appointment to be
             effective not later than the date of such termination (and the
             Administrator shall notify the Rating Agencies in writing of the
             identity of such substitute administrator);

        (c)  if required to be qualified to act as administrator under the
             FSMA, such substitute administrator is so qualified;

        (d)  if possible, such substitute administrator has experience of
             administering mortgages of residential property in England, Wales
             and Scotland and, in any event (in so far as is required by any
             applicable laws and regulations) has all authorisations,
             permissions and licences for the purposes of administering
             mortgages of residential property in England, Wales and Scotland;

        (e)  such substitute administrator enters into an agreement on
             substantially the same terms as the relevant provisions of this
             Agreement and the Administrator shall not be released from its
             obligations under the relevant provisions of this Agreement until
             such substitute administrator has entered into such new
             agreement; and

        (f)  the then current ratings (if any) of the Notes of any Issuer are
             not reduced, withdrawn or qualified as a result thereof, unless
             otherwise agreed by an Extraordinary Resolution (as defined in
             the applicable Note Trust Deed) of the holders of the relevant
             class or classes of Notes.

19.3    Termination of Authority: On and after resignation by, or termination
        of the appointment of, the Administrator under this Agreement pursuant
        to this Clause 19, all authority and power of the Administrator under
        this Agreement shall be terminated and be of no further effect and the
        Administrator shall not thereafter hold itself out in any way as the
        agent of the Mortgages Trustee and/or the Beneficiaries pursuant to
        this Agreement.

19.4    Delivery of Files: Upon resignation by, or termination of the
        appointment of, the Administrator under this Agreement pursuant to
        this Clause 19, the Administrator shall:

        (a)  forthwith deliver to (and in the meantime hold on trust for, and
             to the order of) the Mortgages Trustee or as it shall direct the
             Mortgage Loan Files, the Title Deeds, all books of account,
             papers, records, registers, correspondence and documents in its
             possession or under its control relating to the affairs of, or
             belonging to, the Mortgages Trustee (as trustee for the
             Beneficiaries) and the Mortgages in the Mortgage Portfolio and
             any other Related Security, (if practicable, on the date of
             receipt) any monies then held by the Administrator on behalf of
             the Mortgages Trustee and any other assets of the Mortgages
             Trustee as trustee for the Beneficiaries;

        (b)  take such further action as the Mortgages Trustee, the Funding
             Beneficiaries and the Funding Security Trustees may reasonably
             direct at the expense of the Beneficiaries (including in relation
             to the appointment of a substitute administrator) provided that
             neither the Mortgages Trustee nor each Funding Security Trustee
             shall be required to take or direct to be taken such further
             action unless it has been indemnified to its satisfaction;

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<PAGE>

        (c)  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

        (d)  co-operate and consult with and assist the Mortgages Trustee,
             each Funding Beneficiary, each Funding Security Trustee and their
             nominees (which shall, for the avoidance of doubt, include any
             new administrator appointed by any of them) 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 Mortgages Trustee or such nominee.

19.5    Notification of Termination Event: The Administrator shall notify the
        Mortgages Trustee, each Funding Security Trustee and each Beneficiary
        as soon as reasonably practicable but in any event within five (5)
        days of becoming aware of any Termination Event or any event which
        with the giving of notice or lapse of time or certification would
        constitute the same. Such notification shall specify which event in
        Clause 19 (Termination) occurred and was the cause of such Termination
        Event (or any event which with the giving of notice or lapse of time
        or certification would constitute a Termination Event), a description
        of the details of such Termination Event, and a reference to the
        provision in this Agreement or the other Transaction Documents which
        the Administrator has breached.

19.6    No Prejudice: Termination of this Agreement or the appointment of the
        Administrator under this Agreement shall be without prejudice to the
        liabilities of the Mortgages Trustee as trustee for the Beneficiaries
        to the Administrator or vice versa incurred before the date of such
        termination. The Administrator shall have no right of set-off or any
        lien in respect of such amounts against amounts held by it on behalf
        of the Mortgages Trustee.

19.7    Automatic Termination: This Agreement shall terminate at such time as
        the Mortgages Trustee has no further interest in any of the Mortgage
        Loans or the Mortgages which have been comprised in the Mortgage
        Portfolio.

19.8    Further Compensation: Upon resignation by, or termination of the
        appointment of, the Administrator under the provisions of this Clause
        19, the Administrator shall be entitled to receive all fees and other
        monies accrued up to the date of resignation or termination, as the
        case may be, but shall not be entitled to any other or further
        compensation. Such monies so receivable by the Administrator shall be
        paid by the Mortgages Trustee on the dates on which they would
        otherwise have fallen due hereunder. For the avoidance of doubt, such
        resignation or termination shall not affect the Administrator's rights
        to receive payment of all amounts (if any) due to it from the
        Mortgages Trustee other than under this Agreement.

19.9    Co-operation: Prior to termination of this Agreement, the
        Administrator, the Seller, the Mortgages Trustee and the Funding
        Beneficiaries shall co-operate to obtain the agreement of the
        Borrowers to a new bank mandate permitting the Mortgages Trustee to
        operate the Direct Debiting Scheme.

19.10   Survival of Terms: Any provision of this Agreement which is stated to
        continue after termination of the Agreement shall remain in full force
        and effect notwithstanding termination.

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<PAGE>

19.11   No Supervision: Neither Funding Security Trustee shall be obliged to
        monitor or supervise the performance by any substitute Administrator
        of its duties hereunder or in relation to the other Transaction
        Documents, nor shall the Funding Security Trustees be responsible or
        liable for any act or omission of such substitute Administrator or for
        any loss caused thereby.

20.     Further Assurances

20.1    Co-operation: 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.

20.2    Powers of Attorney: Without prejudice to the generality of Clause 20.1
        (Co-Operation) herein, the Mortgages Trustee as trustee for the
        Beneficiaries shall upon request by the Administrator forthwith give
        to the Administrator such further powers of attorney or other written
        authorisations, mandates or instruments as are necessary to enable the
        Administrator to perform the Services.

20.3    Notice to Rating Agencies: In the event that there is any change in
        the identity of the Mortgages Trustee or an additional Mortgages
        Trustee is appointed, the remaining Mortgages Trustee and/or the
        retiring Mortgages Trustee, as the case may be, shall execute such
        documents with any other parties to this Agreement and take such
        actions as such new Mortgages Trustee may reasonably require for the
        purposes of vesting in such new Mortgages Trustee the rights of the
        Mortgages Trustee under this Agreement and releasing the retiring
        Mortgages Trustee from further obligations thereunder and while any
        Note remains outstanding shall give notice thereof to the Rating
        Agencies.

20.4    No Obligations: Nothing herein contained shall impose any obligation
        or liability on the Mortgages Trustee to assume or perform any of the
        obligations of the Administrator hereunder or render it liable for any
        breach hereof.

21.     Miscellaneous

21.1    Insufficient Funds: Subject to Clause 21.2 (Reduction of Fees) herein,
        in the event that the funds available to the Mortgages Trustee on any
        Payment Date are not sufficient to satisfy in full the aggregate
        amount payable to the Administrator by the Mortgages Trustee on such
        Payment Date then the amount payable to the Administrator on such
        Payment Date shall be reduced by the amount of the shortfall and such
        shortfall shall (subject always to the provisions of this Clause 21)
        be payable on the immediately succeeding Payment Date.

21.2    Reduction of Fees: In the event that:

        (a)  after redemption in full of the Intercompany Loans; or

        (b)  after service of an Intercompany Loan Enforcement Notice and
             payment of all other prior claims,

        the remaining sums available to the Mortgages Trustee or remaining
        proceeds of enforcement are insufficient to satisfy in full the
        outstanding fees or other claims of the Administrator, such fees shall
        be reduced by the amount of the deficiency.

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<PAGE>

21.3    Set-Off: Each of the Seller and the Administrator agrees that it will
        not:

        (a)  set off or purport to set off any amount which the Mortgages
             Trustee, each Funding Beneficiary or each Issuer is or will
             become obliged to pay to it under any of the Transaction
             Documents against any amount from time to time standing to the
             credit of or to be credited to any Collection Account, any
             Mortgages Trustee Bank Account, any Funding Bank Account, any
             Funding 2 Bank Account, any Issuer Transaction Account or in any
             other account prior to transfer to any Collection Account, any
             Mortgages Trustee Bank Account, any Funding Bank Account, any
             Funding 2 Bank Account or any Issuer Transaction Account, as
             appropriate; 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 be standing to the credit of any Collection Account, any
             Mortgages Trustee Bank Account, any Funding Bank Account, any
             Funding 2 Bank Account or any Issuer Transaction Account.

21.4    No Petition: The Administrator agrees that for so long as any Notes of
        any Issuer are outstanding it will not petition nor commence
        proceedings for the administration or winding up of the Mortgages
        Trustee, any Funding Beneficiary or any Issuer nor participate in any
        ex parte proceedings with regard thereto.

21.5    Limited Recourse: In relation to all sums due and payable by the
        Mortgages Trustee to the Administrator, the Administrator agrees that
        it shall have recourse only to sums paid to or received by (or on
        behalf of) the Mortgages Trustee pursuant to the provisions of the
        Mortgage Sale Agreement, the other Transaction Documents and in
        relation to the Mortgages.

21.6    No Prejudice: For the avoidance of doubt, no Beneficiary shall be
        liable to pay any amounts due under Clauses 11 (Costs and Expenses) or
        13 (Remuneration) herein without prejudice to the obligations of the
        Mortgages Trustee in respect of such amounts.

21.7    Termination: Notwithstanding any other provisions of this Agreement:

        (a)  all obligations to, and rights of, Funding under or in connection
             with this Agreement (other than its obligations under Clause 22
             (Confidentiality) herein) shall automatically terminate upon the
             discharge in full of all amounts owing by it under any Funding
             Intercompany Loan Agreement, provided that this shall be without
             prejudice to any claims in respect of such obligations and rights
             arising on or prior to such date; and

        (b)  all obligations to, and rights of, Funding 2 under or in
             connection with this Agreement (other than its obligations under
             Clause 22 (Confidentiality) herein) shall automatically terminate
             upon the discharge in full of all amounts owing by it under any
             Funding 2 Intercompany Loan Agreement provided that this shall be
             without prejudice to any claims in respect of such obligations
             and rights arising on or prior to such date.

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<PAGE>

22.     Confidentiality

        From the date of this Agreement and notwithstanding its termination,
        each of the Mortgages Trustee and the Beneficiaries shall use its best
        endeavours not to disclose to any person whatsoever any information
        relating to the business, finances or other matters of a confidential
        nature of any other party hereto of which it may 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 22 shall not
        apply:

        (a)  to any information already known to the Mortgages Trustee or the
             Beneficiaries otherwise than as a result of entering into any of
             the Transaction Documents;

        (b)  to any information subsequently received by the Mortgages Trustee
             or the Beneficiaries 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 Mortgages Trustee or the
             Beneficiaries;

        (d)  to the extent that any of the Mortgages Trustee or the
             Beneficiaries is required to disclose the same pursuant to any
             Transaction Document, 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 any of the Mortgages Trustee or the
             Beneficiaries needs to disclose the same for determining the
             existence of, or declaring, an Intercompany Loan Event of Default
             or a Termination Event, the protection or enforcement of any of
             its rights under any of the 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 Mortgages Trustee or the Beneficiaries or (in
             connection with the review of current ratings of the Notes of any
             Issuer or with a prospective rating of any debt to be issued by
             an Issuer) to any credit rating agency or any prospective new
             Administrator or Mortgages Trustee.

23.     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.

24.     Assignment

24.1    Consent: The Mortgages Trustee may not assign or transfer any of its
        rights and obligations under this Agreement without the prior written
        consent of each of the Beneficiaries.

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<PAGE>

24.2    Agreement: The Administrator may not assign or transfer any of its
        rights or obligations under this Agreement (a) without the prior
        written consent of the Mortgages Trustee (as trustee for the
        Beneficiaries) and each of the Beneficiaries and (b) other than to a
        person who agrees to be bound by the provisions contained in Clause 5
        of the Funding Deed of Charge and Clause [o] of the Funding 2 Deed of
        Charge as if such person had been named as an original party thereto
        in place of Northern Rock but without prejudice to their obligations
        under such Clause.

24.3    Assignment of Rights to Security Trustee: The Administrator
        acknowledges that Funding has assigned its rights under this Agreement
        to the Security Trustee pursuant to the Funding Deed of Charge and
        acknowledges that pursuant to the terms of the Funding Deed of Charge,
        Funding has, inter alia, authorised the Security Trustee, following
        the Funding Security becoming enforceable, to exercise, or refrain
        from exercising, all of Funding's rights, powers, authorities,
        discretions and remedies under or in respect of the Funding
        Transaction Documents, including this Agreement, in such manner as in
        the Security Trustee's absolute discretion it shall think fit.

24.4    Assignment of Rights to Funding 2 Security Trustee: The Administrator
        acknowledges that Funding 2 has assigned its rights under this
        Agreement to the Funding 2 Security Trustee pursuant to the Funding 2
        Deed of Charge and acknowledges that pursuant to the terms of the
        Funding 2 Deed of Charge, Funding 2 has, inter alia, authorised the
        Funding 2 Security Trustee, following the Funding 2 Security becoming
        enforceable, to exercise, or refrain from exercising, all of Funding
        2's rights, powers, authorities, discretions and remedies under or in
        respect of the Funding 2 Transaction Documents, including this
        Agreement, in such manner as in the Funding 2 Security Trustee's
        absolute discretion it shall think fit.

25.     Security Trustee; Authorised Third Party

25.1    Vesting of Rights: If there is any change in the identity of the
        security trustee in accordance with the Funding Deed of Charge, the
        Administrator, the Seller, each Funding Beneficiary, the Funding 2
        Security Trustee and the Mortgages Trustee shall execute such
        documents and take such action as the successor security trustee and
        the outgoing security trustee may reasonably require for the purpose
        of vesting in the successor security trustee the rights and
        obligations of the outgoing security trustee under this Agreement and
        releasing the outgoing security trustee from its future obligations
        under this Agreement. If there is any change in the identity of the
        security trustee in accordance with the Funding 2 Deed of Charge, the
        Administrator, the Seller, each Funding Beneficiary, the Security
        Trustee and the Mortgages Trustee shall execute such documents and
        take such action as the successor security trustee and the outgoing
        security trustee may reasonably require for the purpose of vesting in
        the successor security trustee the rights and obligations of the
        outgoing security trustee under this Agreement and releasing the
        outgoing security trustee from its future obligations under this
        Agreement.

25.2    No Assumption: It is hereby acknowledged and agreed that by its
        execution of this Agreement, each Funding Security Trustee shall not
        assume or have any of the obligations or liabilities of the
        Administrator, the Seller, each Funding Beneficiary, the Mortgages
        Trustee or the other Funding Security Trustee under this Agreement.
        Furthermore, any liberty or power which may be exercised or any
        determination which may be made hereunder by each Funding Security
        Trustee may, subject to the

                                      33
<PAGE>

             terms of the Funding Beneficiary Deed:

        (a)  in relation to the Security Trustee, be exercised or made in the
             Security Trustee's absolute discretion without any obligation to
             give reasons therefor, but in any event must be exercised or made
             in accordance with the provisions of the Funding Deed of Charge
             and Schedule 4 (Authorised Third Party) hereto;

        (b)  in relation to the Funding 2 Security Trustee, be exercised or
             made in the Funding 2 Security Trustee's absolute discretion
             without any obligation to give reasons therefor, but in any event
             must be exercised or made in accordance with the provisions of
             the Funding 2 Deed of Charge and Schedule 4 (Authorised Third
             Party) hereto.

25.3    Delegation: Each Funding Security Trustee may delegate the performance
        of all or any of its powers and obligations under all or any of the
        Operating Agreements pursuant to the terms of Schedule 4 (Authorised
        Third Party) of this Agreement and subject always to the provisions of
        the Funding Deed of Charge or the Funding 2 Deed of Charge (as
        applicable) and the Funding Beneficiary Deed.

26.     New Intercompany Loan Agreements

        On each occasion that a Funding Beneficiary enters into an
        Intercompany Loan Agreement or is the recipient of a loan advance
        under an Intercompany Loan Agreement, then the Administrator, the
        Seller, each Funding Beneficiary, each Funding Security Trustee and
        the Mortgages Trustee shall execute such documents and take such
        action as may be necessary or required by the Rating Agencies for the
        purpose of including the relevant Issuer, any Swap Provider, any
        Start-up Loan Provider and any other person who has executed an
        Accession Undertaking or any such Intercompany Loan Agreement in the
        Transaction Documents.

27.     Non Petition Covenant; Limited Recourse

27.1    Non Petition Covenant: Each of the parties hereto hereby agrees that
        it shall not institute against any Funding Beneficiary or the
        Mortgages Trustee any winding-up, administration, insolvency or
        similar proceedings so long as any sum is outstanding under any
        Intercompany Loan Agreement of any Issuer or for two years plus one
        day since the last day on which any such sum was outstanding.

27.2    Limited Recourse:  Each of the parties hereto agrees that:

        (a)  in relation to the Mortgages Trustee, any amount payable by the
             Mortgages Trustee to any other party to this Agreement under this
             Agreement not being an amount payable out of the Trust Property
             in accordance with the terms of the Mortgages Trust Deed shall
             only be payable to the extent that on that date the Mortgages
             Trustee has sufficient funds to pay such amount out of fees paid
             to it under the Mortgages Trust Deed; and

        (b)  in relation to Funding:

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<PAGE>

             (i)    only the Security Trustee may enforce the security created
                    in favour of the Security Trustee under the Funding Deed
                    of Charge in accordance with the provisions thereof;

             (ii)   notwithstanding any other provision of this Agreement or
                    any other Transaction Document, no sum due or owing to any
                    party to this Agreement from or by Funding under this
                    Agreement shall be payable by Funding except to the extent
                    that Funding has sufficient funds available or (following
                    enforcement of the Funding Security) the Security Trustee
                    has realised sufficient funds from the Funding Security to
                    pay such sum subject to and in accordance with the
                    relevant Funding Priority of Payments and provided that
                    all liabilities of Funding required to be paid in priority
                    thereto or pari passu therewith pursuant to such Funding
                    Priority of Payments have been paid, discharged and/or
                    otherwise provided for in full; and

             (iii)  it shall not take any steps for the purpose of recovering
                    any amount payable by Funding or enforcing any rights
                    arising out of this Agreement against Funding otherwise
                    than in accordance with the Funding Deed of Charge.

        (c)  in relation to Funding 2:

             (i)    only the Funding 2 Security Trustee may enforce the
                    security created in favour of the Funding 2 Security
                    Trustee under the Funding 2 Deed of Charge in accordance
                    with the provisions thereof;

             (ii)   notwithstanding any other provision of this Agreement or
                    any other Transaction Document, no sum due or owing to any
                    party to this Agreement from or by Funding 2 under this
                    Agreement shall be payable by Funding 2 except to the
                    extent that Funding 2 has sufficient funds available or
                    (following enforcement of the Funding 2 Security) the
                    Funding 2 Security Trustee has realised sufficient funds
                    from the Funding 2 Security to pay such sum subject to and
                    in accordance with the relevant Funding 2 Priority of
                    Payments and provided that all liabilities of Funding 2
                    required to be paid in priority thereto or pari passu
                    therewith pursuant to such Funding 2 Priority of Payments
                    have been paid, discharged and/or otherwise provided for
                    in full; and

             (iii)  it shall not take any steps for the purpose of recovering
                    any amount payable by Funding 2 or enforcing any rights
                    arising out of this Agreement against Funding 2 otherwise
                    than in accordance with the Funding 2 Deed of Charge.

27.3    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

                                      35
<PAGE>

        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.

28.     Amendments and Waiver

28.1    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 Transaction Documents.

28.2    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.

28.3    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.

28.4    Variation or Waiver: 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.

29.     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 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 Administrator and the Seller, 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 Mortgages Trustee, to Granite Finance Trustees
             Limited, c/o 22 Grenville Street, St. Helier, Jersey JE4 8PX,
             Channel Islands (facsimile number 01534 609 333) for the
             attention of the Company Secretary;

                                      36
<PAGE>

        (c)  in the case of Funding, to Granite Finance Funding Limited, 69
             Park Lane, Croydon CR8 1TQ (facsimile number 020 8409 8911) for
             the attention of the Company Secretary;

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

        (e)  in the case of Funding 2, to Granite Finance Funding 2 Limited at
             Fifth Floor, 100 Wood Street, London, EC2V 7EX (facsimile number
             020 7606 0643) for the attention of the Company Secretary (with a
             copy to the Seller in accordance with (a) above);

        (f)  in the case of the Funding 2 Security Trustee, to The Bank of New
             York, 48th Floor, One Canada Square, London, E14 5AL (facsimile
             number 020 7964 6399) for the attention of Global Structured
             Finance (Corporate Trust);

        (g)  in the case of Fitch, to Fitch Ratings Ltd., at Eldon House, 2
             Eldon Street, London EC2M 7UA (facsimile number 0207 7417 6262)
             for the attention of European Structured Finance Surveillance;

        (h)  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 020 7772 5400) for the attention of Jodi van
             Breda;

        (i)  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 020 7826 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 29. All notices served
        under this Agreement shall be simultaneously copied to each Funding
        Security Trustee by the person serving the same.

30.     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.

31.     Execution in Counterparts; Severability

31.1    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.

31.2    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

                                      37
<PAGE>

        such provision or obligation in any other jurisdiction, shall not be
        affected or impaired thereby.

32.     Governing Law and Submission to Jurisdiction

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

32.2    Submission to 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.

33.     Process Agent

        The Mortgages Trustee irrevocably and unconditionally appoints Mourant
        & Co. Capital (SPV) Limited at 4 Royal Mint Court, London, EC3N 4HJ or
        otherwise 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 Mourant & Co.
        Capital (SPV) Limited ceasing so to act it will appoint another person
        with a registered office in London as its agent for service of
        process.

34.     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 as a
deed the day and year first before written.

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<PAGE>

                                  SCHEDULE 1

                                 THE SERVICES

In addition to the Services set out in the body of the Administration
Agreement, the Administrator shall:

(a)     keep records (written or computerised) and books of account for the
        Mortgages Trustee in relation to the Mortgage Loans comprised in the
        Mortgage Portfolio;

(b)     keep records for all taxation purposes and VAT;

(c)     notify relevant Borrowers of any change in their Monthly Payments;

(d)     assist the auditors of the Mortgages Trustee and provide information
        to them upon reasonable request;

(e)     provide a redemption statement to a Borrower or any person acting on
        the Borrower's behalf, in each case upon written request or otherwise
        at the discretion of the Administrator;

(f)     notify relevant Borrowers of any other matter or thing which the
        applicable Mortgage Conditions or Offer Conditions require them to be
        notified of in the manner and at the time required by the relevant
        Mortgage Terms;

(g)     subject to the provisions of this Agreement (including, without
        limitation, Clause 5.2 herein (Administration and Enforcement of
        Mortgages)) take all reasonable steps to recover all sums due to the
        Mortgages Trustee including without limitation by the institution of
        proceedings and/or the enforcement of any Mortgage Loan comprised in
        the Mortgage Portfolio or any New Mortgage Portfolio or any Related
        Security;

(h)     take all other action and do all other things which it would be
        reasonable to expect a reasonable and prudent mortgage lender to do in
        administering its mortgages;

(i)     keep a Mortgage Account for each Mortgage Loan which shall record all
        proceeds received in respect of that Mortgage Loan and all amounts
        debited to such Mortgage Account;

(j)     at its discretion, prepare and send on request an annual statement to
        Borrowers in relation to each calendar year in the agreed form; and

(k)     assist the Cash Manager in the preparation of the quarterly reports
        substantially in the form set out in the Cash Management Agreement.

                                      39
<PAGE>

                                  SCHEDULE 2

                      FORM OF INVESTORS' QUARTERLY REPORT

Granite Finance Trustees Limited
Monthly Report

Date of Report [  ]

Mortgages

Number of Mortgages in Pool                                         [  ]

Current Balance                                                (GBP)[  ]

Opening Trust Assets                                           (GBP)[  ]

Funding Share                                                  (GBP)[  ]

Funding Share Percentage                                            [  ]%

Funding 2 Share                                                (GBP)[  ]

Funding 2  Share Percentage                                         [  ]%

Seller Share                                                   (GBP)[  ]

Seller Share Percentage                                             [  ]%

Minimum Seller Share (Amount)                                  (GBP)[  ]

Minimum Seller Share (% of Total)                                   [  ]%

Arrears Analysis of Non Repossessed Mortgages

                               Number          Principal            Arrears
Less than [  ] month           [  ]            [  ]                 [  ]

[  ] - [  ] months             [  ]            [  ]                 [  ]

[  ] - [  ] months             [  ]            [  ]                 [  ]

[  ] - [  ] months             [  ]            [  ]                 [  ]

[  ] - [  ] months             [  ]            [  ]                 [  ]

                                      40
<PAGE>

[  ] months +                  [  ]            [  ]                 [  ]

Total                          [  ]            [  ]                 [  ]

Properties in Possession       Number          Principal            Arrears

Total                          [  ]            [  ]                 [  ]

Properties in Possession

Number Brought Forward                                              [  ]

Repossessed                                                         [  ]

Sold                                                                [  ]

Number Carried Forward                                              [  ]

Average Time from  Possession                                       [  ]
to Sale

Average Arrears at Sale                                             [  ]

Repossessed                                                         [  ]

MIG Claims Submitted                                                [  ]

MIG Claims Outstanding                                              [  ]

Average Time from Claim to                                          [  ]
Payment

Note: The arrears analysis and repossession information is as at close of
business for the report month

Substitution                          Number                        Principal

Substituted this period (this month)  [  ]                          [  ]

Substituted to dated (since [  ])     [  ]                          [  ]

CPR Analysis                          Monthly                       Annualised

Current [  ] Month CPR Rate           [  ]%                         [  ]%

Previous [  ] Month CPR Rate          [  ]%                         [  ]%

                                      41
<PAGE>

Weighted Average Seasoning (by value)            [  ]

Average Loan Size                                [  ]

Weighted Average LTV (by value)                  [  ]%

Product Breakdown

Fixed Rate                                       [  ]%

Flexible -Together                               [  ]%

LTV Levels Breakdown                    Number                      Value

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ] - [  ]%                            [  ]                        [  ]

[  ]% +                                 [  ]                        [  ]

Totals                                  [  ]                        [  ]

NR Current Existing Borrowers' SVR                                  [  ]

Effective Date of Change                                            [  ]

                                      42
<PAGE>

Notes           Outstanding            Rating                Reference Rate
                                       Moodys/S&P/Fitch
Funding
Issuer Notes
[ ]            [relevant currency      [ ]/[ ]/[ ]           [ ]%         [ ]%
               amount]
Funding 2
Issuer Notes
[ ]            [relevant currency      [ ]/[ ]/[ ]           [ ]%         [ ]%
               amount]

[Issuer Reserve Fund Requirement]                                     (GBP)[ ]

Balance brought forward                                               (GBP)[ ]

Drawings this period

Reserve Fund Top-up this period*                                      (GBP)[ ]

Excess Spread                                                         (GBP)[ ]

Current Balance                                                       (GBP)[ ]

Funding Reserve Balance                                               (GBP)[ ]

Funding Reserve %                                                          [ ]%

Funding 2 Reserve Balance                                             (GBP)[ ]

Funding 2 Reserve %                                                        [ ]%

*Top-ups only occur at the end of each quarter.

                                      43
<PAGE>

                                  SCHEDULE 3

                 ADMINISTRATOR REPRESENTATIONS AND WARRANTIES

The Administrator makes the following representations and warranties to the
Mortgages Trustee, each Funding Beneficiary and each Funding Security 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 its 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)    result in the existence or imposition of, nor oblige it to
               create, any Security Interest in favour of any person over all
               or any of its present or future revenues or assets;

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

        (c)    conflict with its constitutional documents; or

        (d)    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 Licences: All governmental consents, licences and other
        approvals, permissions and authorisations required by it (in its
        capacity as Administrator) 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
        Administrator, and the Administrator is not insolvent.

                                      44
<PAGE>

8.      Financial Statements: The most recent financial statements of the
        Administrator:

        (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 Administrator; and

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

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

        (a)    no significant change in the financial position of the
               Administrator; and

        (b)    no material adverse change in the financial position or
               prospects of the Administrator.

10.     Ranking of Claims

        Under the laws of England and Wales in force as at the date of making
        this representation, claims against the Administrator 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:

        (a)    All information in the Prospectus and the Offering Circular
               with regard to the Administrator, its business and its
               experience administering mortgage loans (including its arrears
               and repossession experience) are true and accurate in all
               material respects and not misleading in any material respect.

        (b)    Any opinions, predictions and intentions expressed in the
               Prospectus and/or the Offering Circular on the part of the
               Administrator are honestly held and not misleading in any
               material respect.

        (c)    Each of the Prospectus and the Offering Circular does not omit
               to state any material fact necessary to make such information,
               opinions, predictions or intentions not misleading in any
               material respect.

        (d)    The Administrator has made all proper inquiries to ascertain
               and to verify the foregoing.

                                      45
<PAGE>

                                  SCHEDULE 4

                            AUTHORISED THIRD PARTY

1.      Agreement to Allow Delegation

1.1.    The Seller and the Administrator agree (subject to the other
        provisions of this Schedule, including paragraph 2 (Appointment and
        Payment) and subject to the Funding Deed of Charge or the Funding 2
        Deed of Charge, as applicable) that a Funding Security Trustee may
        appoint or facilitate the appointment of an Authorised Third Party to
        implement, administer and carry out the duties and powers of such
        Funding Security Trustee:

        (a)  under the Seller's Power of Attorney;

        (b)  in connection with and following a Completion Event; and

        (c)  in connection with and following a Termination Event,

        (together the "Back-up Functions").

1.2.    Each of the Seller and the Administrator shall authorise such
        Authorised Third Party on their behalf and in their name or otherwise
        to sign or execute or make any alteration or addition or deletion in
        or to any agreements or documents or certificates or instructions or
        notices which they are entitled or required to give, receive,
        implement, transact or become a party to in relation to the Back-up
        Functions or for doing any other act or thing required to be done by
        them under or in connection with the Back-up Functions and otherwise
        generally to sign, seal and deliver any agreement, assurance,
        document, certificate, instruction or act which may be required by
        such Authorised Third Party acting in connection with the Back-up
        Functions.

2.      Appointment and Payment

        The appointment of such Authorised Third Party shall be on the terms
        and conditions as negotiated between the relevant Funding Security
        Trustee, the Seller and/or the Administrator (as the case may be) and
        such Authorised Third Party. The fees, costs and expenses payable to
        such Authorised Third Party shall be considered as part of the
        additional remuneration and expenses of the relevant Funding Security
        Trustee and therefore shall be payable in the manner contemplated, in
        the case of the Security Trustee, by and in accordance with Clause 18
        of the Funding Deed of Charge from funds that the Security Trustee
        receives in accordance with the Funding Priority of Payments and in
        the case of the Funding 2 Security Trustee, by and in accordance with
        Clause [o] of the Funding 2 Deed of Charge from funds that the Funding
        2 Security Trustee receives in accordance with the Funding 2 Priority
        of Payments.

3.      Delegation

3.1.    Each Funding Security Trustee shall use reasonable endeavours (in its
        opinion) to appoint in writing one or more persons to act as an
        Authorised Third Party in respect of its Back-up Functions (on any
        terms other than the power to appoint a delegate),

                                      46
<PAGE>

        and references in the Operating Agreements to the "Security Trustee"
        or the "Funding 2 Security Trustee" shall be construed accordingly
        and, unless the context does not permit, include such Authorised Third
        Party. The appointment of such Authorised Third Party may be revoked
        by the Funding Security Trustee at any time.

3.2.    In the event that a Funding Security Trustee has not, having used such
        reasonable endeavours, appointed such Authorised Third Party, such
        Funding Security Trustee shall have no liability to any person and,
        notwithstanding any other provision of the Operating Agreements, shall
        not itself be required to perform any Back-up Functions or any other
        duties of the Seller or the Administrator either during the period it
        is seeking to appoint an Authorised Third Party or thereafter.

3.3.    As conditions precedent to the appointment of such Authorised Third
        Party, the arrangements to be entered into between such Authorised
        Third Party and the Seller or Administrator (as the case may be) shall
        provide that (1) the Authorised Third Party shall make timely transfer
        of information to the Seller or Administrator (as appropriate); and
        (2) each Funding Security Trustee shall provide any Authorised Third
        Party appointed by it hereunder with a copy of the Operating
        Agreements and, where the Security Trustee is the Funding Security
        Trustee, the Funding Deed of Charge or, where the Funding 2 Security
        Trustee is the Funding Security Trustee, the Funding 2 Deed of Charge,
        and shall request such Authorised Third Party to confirm in writing to
        the Seller, the Administrator and the relevant Funding Security
        Trustee that it has read and understood the terms of this Agreement
        and the other Operating Agreements.

4.      Ratification

        Each of the Seller and the Administrator shall, upon the written
        request of a Funding Security Trustee or its Authorised Third Party,
        ratify and confirm all documents, deeds, certificates, instructions,
        acts and things which such Funding Security Trustee or such Authorised
        Third Party shall execute or do in the exercise of any of the powers
        conferred, or purported to be conferred, on him by this Agreement and
        the other Operating Agreements. The terms of appointment of such
        Authorised Third Party shall oblige the Authorised Third Party to
        provide information concerning its activities on a regular basis and
        on request to:

        (a)  the Seller;

        (b)  the Administrator;

        (c)  where the Security Trustee is the Funding Security Trustee,
             Funding and the Security Trustee; and

        (d)  where the Funding 2 Security Trustee is the Funding Security
             Trustee, Funding 2 and the Funding 2 Security Trustee.

5.      Limitations on the Responsibility of the Funding Security Trustee

        A Funding Security Trustee shall not be obliged to monitor or
        supervise the performance by any Authorised Third Party appointed by
        it hereunder of its duties hereunder or in relation to the Operating
        Agreements and shall not be responsible or

                                      47
<PAGE>

        liable for any act or omission of such Authorised Third Party or for
        any loss caused thereby, provided that if any party to a Transaction
        Document notifies a Funding Security Trustee that an Authorised Third
        Party appointed by it is implementing, administering or carrying out
        the duties and powers of that Funding Security Trustee in breach of
        the terms and conditions of the relevant Operating Agreement pursuant
        to which such duties and powers are to be performed, that Funding
        Security Trustee shall use its reasonable endeavours to appoint or
        facilitate the appointment of a substitute Authorised Third Party to
        implement, administer and carry out such duties and powers. The terms
        of appointment of an Authorised Third Party and the appointing Funding
        Security Trustee's responsibilities in relation thereto as set out in
        this Schedule 4 shall apply to the appointment of a substitute
        Authorised Third Party. Nothing in this Schedule constitutes a Funding
        Security Trustee in its role as specified in this schedule as trustee
        or fiduciary for any person. Each Funding Security Trustee shall
        assume, until it receives notice thereof pursuant to the relevant
        Operating Agreement, that no Back-up Trigger Event has occurred and
        until such time that it receives such notification and is first
        indemnified and/or secured to its satisfaction, is not entitled to
        take any action in respect of the Back-up Functions under the
        Operating Agreements.

6.      Exoneration

6.1.    Without limiting paragraph 6.2 below, each Funding Security Trustee
        shall not be liable to any Person for any action taken or not taken by
        it or its Authorised Third Party under or in connection with the
        Operating Agreements, other than in respect of any loss, liability,
        claim, expense or damage suffered or incurred by such Person in
        respect of the gross negligence or wilful default of the Funding
        Security Trustee or such Authorised Third Party in carrying out its
        functions under the relevant Operating Agreement.

6.2.    No Person may take any proceedings against any officer, employee or
        agent of a Funding Security Trustee in respect of any claim it might
        have against such Funding Security Trustee in respect of any act or
        omission of any kind by their officer, employee or agent.

7.      Funding Beneficiary Deed

        The rights and powers in respect of a Funding Security Trustee which
        have been delegated to an Authorised Third Party hereunder shall be
        delegated subject to the terms of the Funding Beneficiary Deed.

                                      48
<PAGE>

                                  SCHEDULE 5

                          MINIMUM SERVICING STANDARDS

The following list sets forth (i) certain of the Services provided for in the
body of the Administration Agreement and (ii) certain of the functions
required of the Cash Manager under the terms of the Cash Management Agreement,
which together are known as the "minimum servicing standards" for purposes of
Clause 5.7 (Independent Auditors' Annual Servicer Compliance Certificate) of
the Administration Agreement.

1.      (Maintain records) keep and maintain records in relation to the
        Mortgage Portfolio on a Mortgage Loan by Mortgage Loan basis for the
        purposes of identifying amounts paid by each Borrower, any amount due
        from a Borrower and the balance from time to time outstanding on a
        Borrower's account (5.3).

2.      (Collections) using reasonable endeavours credit all monthly payments
        made by a Borrower to the relevant Collection Account within three (3)
        London Business Days of receipt (5.1).

3.      (Qualifications and compliance of laws) maintain all licences,
        approvals, authorisations and consents necessary in connection with
        the Administrator's performance of its obligations under the
        Administration Agreement and not knowingly to fail to comply with any
        legal requirements in the performance of those obligations. (17.1(d)
        and (e)).

4.      (Enforcement) in relation to any default by a Borrower under a
        Mortgage Loan or a Mortgage, enforce the terms of such Mortgage Loan
        or Mortgage in accordance with the Enforcement Procedures and as
        otherwise provided in the Administration Agreement (5.2).

5.      (Insurance) (a) administer the arrangements for insurance in which the
        Mortgages Trustee or the Seller has an interest (14.1); (b) not
        knowingly take or omit to take any action that could result in
        avoidance, termination or invalidity of any Insurance Policy in
        relation to any Mortgage Loans and Mortgages or reduce the amount
        payable on any claim made on behalf of the Mortgage Trustees under any
        Insurance Policy (14.2); (c) prepare and submit any claim under the
        Insurance Policies in accordance with their terms (14.3); and (d) use
        reasonable endeavours to credit all proceeds received under any
        Insurance Policy to the relevant Collection Account within three (3)
        London Business Days of such receipt (14.4).

6.      (Determination of interest rates) (a) determine the Standard Variable
        Rate chargeable to Borrowers from time to time and the Existing
        Borrowers' Re-Fix Rate in accordance with section 4.1 of the
        Administration Agreement; and (b) take all steps necessary pursuant to
        the relevant Mortgage Conditions or applicable law to bring such
        change in the Standard Variable Rate to the attention of the relevant
        borrowers and notify details of such change to the Mortgages Trustee,
        the Security Trustee, the Funding 2 Security Trustee and the
        Beneficiaries (4.2).

7.      (Provision of information) provide such information from its records
        in relation to the Mortgage Loans to the Mortgages Trustee, Funding,
        Funding 2, the Security Trustee

                                      49
<PAGE>

        or the Funding 2 Security Trustee at any time upon reasonable notice,
        subject to the conditions set forth in the Administration
        Agreement (5.3).

8.      (Access to books and records) permit the Mortgages Trustee, Funding,
        Funding 2 (and their auditors), the Security Trustee and the Funding 2
        Security Trustee and any other person nominated by the beneficiaries
        (to whom the Administrator has no reasonable objection) upon
        reasonable notice during normal office hours to have access to all
        books of record and account (including Title Deeds and Mortgage Loan
        Files) relating to the administration of the Mortgage Loans and the
        Related Security, subject to applicable law and the conditions set
        forth in the Administration Agreement (12.3).

9.      (Custody of records) keep the Mortgage Loan Files relating to the
        Mortgage Portfolio in safe custody and shall take appropriate
        technical and organisational measures against the unauthorised or
        unlawful processing of personal data and against accidental loss or
        destruction of, or damage to, personal data. The Administrator shall
        maintain in an adequate form such records as are necessary to enforce
        each Mortgage comprised in the Mortgage Portfolio and, where relevant,
        any other Related Security. The Administrator shall keep the Mortgage
        Loan Files in relation to the Mortgage Portfolio in such a way that
        they can be distinguished from information held by the Administrator
        for its own behalf as mortgagee or heritable creditor or for other
        third persons (12.1(a)).

10.     (Ledgers)

        (a)    establish and maintain memorandum ledgers in the books of the
               Mortgages Trustee to enable the ongoing identification and
               segregation of principal, revenue, and overpayments;

        (b)    on a monthly basis ensure that the memorandum ledgers are
               reconciled to the Mortgages Trustee Bank Accounts;

        (c)    establish and maintain memorandum ledgers in the books of
               Funding to enable the ongoing identification and segregation of
               principal, revenue and amounts constituting the Funding Reserve
               Fund and any Issuer Reserve Funds and any Issuer Liquidity
               Reserve Funds;

        (d)    establish and maintain memorandum ledgers in the books of
               Funding 2 to enable the ongoing identification and segregation
               of principal, revenue and amounts constituting the Funding 2
               Reserve Fund and the Funding 2 Liquidity Reserve Fund;

        (e)    on a monthly basis ensure that the memorandum ledgers are
               reconciled to the Funding Bank Accounts and the Funding 2 Bank
               Accounts (as applicable); and

        (f)    establish and maintain ledgers in the books of Funding, Funding
               2 and each Issuer to record the Intercompany Loans and, where
               applicable, the Loan Tranches and subsequent payments of
               interest and principal on each of the Intercompany Loans and,
               where applicable, the Loan Tranches.

                                      50
<PAGE>

                                EXECUTION PAGE

as Administrator
EXECUTED for and on behalf of                      )
NORTHERN ROCK PLC                                  )
by:                                                )

-------------------------
Authorised Signatory

Name:

Title:

as Seller
EXECUTED for and on behalf of                      )
NORTHERN ROCK PLC                                  )
by:                                                )

-------------------------
Authorised Signatory

Name:

Title:

EXECUTED for and on behalf of                      )
GRANITE FINANCE TRUSTEES LIMITED                   )
by:                                                )

-------------------------
Authorised Signatory

Name:

Title:

EXECUTED for and on behalf of                      )
GRANITE FINANCE FUNDING LIMITED                    )
by:                                                )

-------------------------
Authorised Signatory

Name:

Title:

                                      51
<PAGE>

     Definitions (to be included in a revised Master Definitions Schedule)

"AAA Loan Tranche" means, a tranche of any Funding 2 Intercompany Loan which
has been structured so as to reflect the payment obligations on the Notes of
the relevant Issuer which are rated AAA by S&P, Aaa by Moody's and AAA by
Fitch at their date of issue;

"Authorised Third Party" means any Person appointed by a Funding Security
Trustee pursuant to the terms of Schedule 4 of the Administration Agreement
and whom the Rating Agencies have previously confirmed in writing to (where
the Security Trustee is the Funding Security Trustee) Funding and the Security
Trustee or (where the Funding 2 Security Trustee is the Funding Security
Trustee) Funding 2 and the Funding 2 Security Trustee will not cause the then
current ratings of the Notes of any Issuer to be downgraded, withdrawn or
qualified provided that if the responsibilities that such appointed Person
will assume include setting the interest rate applicable to any Mortgage Loan,
such Person must be a lender in the United Kingdom residential mortgage
market;

"Bank Account Agreement" means the agreement entered into on or about the
Initial Closing Date between the Account Banks, the Mortgages Trustee, Funding
and the Security Trustee which governs the operation of the Mortgages Trustee
Bank Accounts, the Funding Bank Accounts other than the Funding (Issuer) GIC
Accounts;

"Beneficiaries" means Funding, Funding 2 and the Seller, as beneficiaries of
the Mortgages Trust and "Beneficiary" means any one of them;

"Funding Beneficiaries" means Funding and Funding 2, as beneficiaries of the
Mortgages Trust and "Funding Beneficiary" means either of them;

"Funding Intercompany Loan" means a loan of the net proceeds of any issue of
Notes by a Funding Issuer, such loan being advanced to Funding by such Funding
Issuer pursuant to the terms of a Funding Intercompany Loan Agreement;

"Funding Intercompany Loan Agreement" means an intercompany loan agreement
entered into between Funding and a Funding Issuer in relation to a Funding
Intercompany Loan;

"Funding Interest Rate Shortfall" has the meaning given in Clause [4.3(a)(2)]
of the Administration Agreement;

"Funding Issuer" means a wholly-owned subsidiary of Funding, which is
established to issue Notes and to make a Funding Intercompany Loan to Funding;

"Funding Security Trustees" means the Security Trustee and the Funding 2
Security Trustee and "Funding Security Trustee" means either of them;

"Funding 2" means Granite Finance Funding 2 Limited, a company incorporated
with limited liability in England and Wales, registered number 5249387;

"Funding 2 Bank Account Agreement" means the agreement entered into on or
about the Funding 2 Programme Date between the Account Bank, Funding 2 and the
Funding 2 Security Trustee which governs the operation of the Funding 2 Bank
Accounts;

                                      52
<PAGE>

"Funding 2 Bank Accounts" means the Funding 2 GIC Account and the Funding
Transaction Account and each such additional or replacement account in the
name of Funding that may be opened with the prior approval of the Funding 2
Security Trustee after the Funding 2 Programme Date;

"Funding 2 Basis Rate Swap Agreement" means the ISDA Master Agreement,
Schedule and Confirmations thereto each entered into on or about the Funding 2
Program Date and any Credit Support Annex or other credit support documents
entered into at any time among Funding 2 and the Funding 2 Basis Rate Swap
Provider and/or any credit support provider and shall include any additional
basis rate swap agreement entered into by Funding 2 from time to time in
accordance with the Transaction Documents;

"Funding 2 Basis Rate Swap Provider" means Northern Rock and/or, as
applicable, any other basis rate swap provider appointed from time to time by
Funding 2 in accordance with the Transaction Documents;

"Funding 2 Deed of Charge" means the deed of charge entered into on or about
the Funding 2 Program Date between Funding 2, the Funding 2 Security Trustee,
the Issuer Security Trustee, Granite Master Issuer plc, the Funding 2 Basis
Rate Swap Provider, the Corporate Services Provider, the Account Bank, the
Funding 2 GIC Provider, the Mortgages Trustee, and the Cash Manager and the
Schedules thereto and including each Deed of Accession or Accession
Undertaking entered into in connection therewith;

"Funding 2 GIC Account" means the account in the name of Funding 2 (sort code
30-00-59, account number [o]) held at Northern Rock, and maintained subject to
the Funding 2 Guaranteed Investment Contract and the Funding 2 Bank Account
Agreement and such additional or replacement accounts as may for the time
being be in place with the prior consent of the Funding 2 Security Trustee;

"Funding 2 GIC Provider" means, Northern Rock or such other person or persons
as are for the time being the GIC Provider to Funding under the Funding 2
Guaranteed Investment Contract;

"Funding 2 Guaranteed Investment Contract" means the guaranteed investment
contract entered into on or about the Funding 2 Program Date between Funding
2, the Funding 2 GIC Provider, the Cash Manager and the Funding 2 Security
Trustee under which the Funding 2 GIC Provider agrees to pay Funding 2 a
guaranteed rate of interest on the balance from time to time of the Funding 2
GIC Account and shall include any additional guaranteed investment contract
entered into by Funding 2 in accordance with the Transaction Documents;

"Funding 2 Intercompany Loan" means a loan (or the aggregate of a number of
separate loans) of the net proceeds of any issue (or all issues) of Notes by a
Funding 2 Issuer, such loan(s) being advanced to Funding 2 by such Funding 2
Issuer pursuant to the terms of a Funding 2 Intercompany Loan Agreement;

"Funding 2 Intercompany Loan Agreement" means an intercompany loan agreement
entered into between Funding 2 and a Funding 2 Issuer in relation to a Funding
2 Intercompany Loan;

                                      53
<PAGE>

"Funding 2 Interest Rate Shortfall" has the meaning given in Clause
[4.3(a)(1)] of the Administration Agreement;

"Funding 2 Issuer" means a wholly-owned subsidiary of Funding 2, which is
established to issue Notes and to make a Funding 2 Intercompany Loan to
Funding 2;

"Funding 2 Post-Enforcement Priority of Payments" means the rules and the
order of priority in which Funding 2 Available Revenue Receipts, Funding 2
Available Principal Receipts and all other monies, income, receipts and
recoveries of Funding 2 or the Funding 2 Security Trustee or any Receiver of
Funding 2 and the proceeds of enforcement of the Funding 2 Security are to be
applied following service of an Intercompany Loan Enforcement Notice or
otherwise following an enforcement of the Funding 2 Security as set out in
Part [o] of Schedule [o](Funding 2 Priority of Payments) to the Funding 2 Deed
of Charge, as the same may be amended, varied or superseded from time to time
in accordance with the terms of the Funding 2 Deed of Charge;

"Funding 2 Pre-Enforcement Principal Priority of Payments" means the rules and
the order of priority in which Funding 2 Available Principal Receipts will be
applied prior to the enforcement of the Funding 2 Security as set out in Part
[o] of Schedule [o] (Funding 2 Priority of Payments) to the Funding 2 Deed of
Charge, as the same may be amended, varied or superseded from time to time in
accordance with the terms of the Funding 2 Deed of Charge;

"Funding 2 Pre-Enforcement Revenue Priority of Payments" means the rules and
the order of priority in which Funding 2 Available Revenue Receipts will be
applied prior to the enforcement of the Funding 2 Security as set out in Part
[o] of Schedule [o] (Funding 2 Priority of Payments) to the Funding 2 Deed of
Charge, as the same may be amended, varied or superseded from time to time in
accordance with the terms of the Funding 2 Deed of Charge;

"Funding 2 Priority of Payments" means, as applicable, any of the Funding 2
Pre-Enforcement Revenue Priority of Payments, the Funding 2 Pre-Enforcement
Principal Priority of Payments or the Funding 2 Post-Enforcement Priority of
Payments;

"Funding 2 Reserve Fund" means the reserve fund established in the name of
Funding 2 on the Funding 2 Program Date in an amount up to the Funding 2
Reserve Maximum Amount, which prior to enforcement may be allocated to help
meet any deficit in Funding Available Revenue Receipts and thereby any deficit
recorded on the Issuer Principal Deficiency Ledgers and/or utilised to fund
expenses in connection with the issuance of Notes by Issuers;

"Funding 2 Secured Creditors" means the Funding 2 Security Trustee (and any
Receiver of Funding 2 appointed pursuant to the Funding 2 Deed of Charge),
Granite Master Issuer plc, the Corporate Services Provider in relation to
Funding 2, the Account Bank, the Funding 2 GIC Provider, the Mortgages
Trustee, the [NR] Start-up Loan Provider, the Cash Manager and each New
Funding 2 Secured Creditor who accedes to the Funding 2 Deed of Charge from
time to time pursuant to a Deed of Accession (including, for the avoidance of
doubt, any new Funding 2 Issuer);

"Funding 2 Security" means the security granted by Funding 2 under or pursuant
to the Funding 2 Deed of Charge in favour of the Funding 2 Security Trustee
for the benefit of

                                      54
<PAGE>

the Funding 2 Secured Creditors or any of them including the security granted
by Funding 2 under or pursuant to any Deed of Accession;

"Funding 2 Security Trustee" means The Bank of New York acting through its
office at 48th Floor, One Canada Square, London E14 5AL, or such other persons
and all other persons for the time being acting as the security trustee or
security trustees pursuant to the Funding 2 Deed of Charge;

"Funding 2 Swap Collateral Account" means an account opened in the name of
Funding 2 for the purposes of holding Swap Collateral and maintained in
accordance with the Cash Management Agreement;

"Intercompany Loan Agreements" means the Funding Intercompany Loan Agreements
and the Funding 2 Intercompany Loan Agreements and "Intercompany Loan
Agreement" means, as applicable, a Funding Intercompany Loan Agreement or a
Funding 2 Intercompany Loan Agreement;

"Interest Rate Shortfalls" means the Funding Interest Rate Shortfall and the
Funding 2 Interest Rate Shortfall and "Interest Rate Shortfall" means, as
applicable, the Funding Interest Rate Shortfall and/or the Funding 2 Interest
Rate Shortfall;

"Issuer" means, as applicable, a Funding Issuer or a Funding 2 Issuer;

"Issuer Reserve Fund" means:

(a)   with respect to the Funding Issuers, in relation to the First Issuer,
      the First Issuer Reserve Fund, in relation to the Second Issuer, the
      Second Issuer Reserve Fund and in relation to any other Funding Issuer,
      the Current Issuer Reserve Fund as defined in the Issuer Master
      Definitions Schedule relating to that Funding Issuer, in each case
      established in the name of Funding in respect of such Funding Issuer as
      required under the terms of the relevant Intercompany Loan of such
      Funding Issuer on the relevant Closing Date in an amount equal to the
      Issuer Reserve Required Amount; and

(b)   with respect to the Funding 2 Issuers, the Issuer Reserve Fund as
      defined in the Issuer Master Definitions Schedule relating to that
      Funding 2 Issuer, in each case established on the relevant Closing Date
      in an amount equal to the Issuer Reserve Required Amount as defined in
      the Issuer Master Definitions Schedule relating to that Funding 2
      Issuer;

"Issuer Swap Agreement" means, for any Issuer, the ISDA Master Agreement(s),
Schedule(s), Confirmation(s) and any credit support documents thereto entered
into among such Issuer, the relevant Issuer Swap Provider, the relevant Note
Trustee and any credit support provider and shall include any additional
and/or replacement currency swap agreement entered into by such Issuer from
time to time in connection with the Notes issued by such Issuer;

"Issuer Swap Provider" means in relation to any Issuer the swap counterparty
to such Issuer under any relevant Issuer Swap Agreement of such Issuer;

                                      55
<PAGE>

"Issuer Transaction Accounts" means, in relation to the First Issuer, the
Second Issuer and the Third Issuer, the First Issuer Transaction Accounts, the
Second Issuer Transaction Accounts and the Third Issuer Transaction Accounts
and in relation to any other Issuer, the Current Issuer Transaction Accounts
[or Issuer Transaction Accounts] as defined in the Issuer Master Definitions
Schedule relating to that Issuer;

"Lead Arrangers" means [o];

"Note Trust Deed" means, in relation to any Issuer, the trust deed entered
into between that Issuer and the Note Trustee in respect of that Issuer that
constitutes the Notes of that Issuer;

"Swap Collateral" means any asset (including, without limitation, Cash and/or
securities) paid or transferred to Funding 2 by the Funding 2 Basis Rate Swap
Provider in accordance with the terms of the relevant Funding 2 Basis Rate
Swap Agreement as collateral to secure the performance of the Funding 2 Basis
Rate Swap Provider's obligations under the Funding 2 Basis Rate Swap Agreement
together with any income or distributions received in respect of such asset
and any equivalent of or replacement of such asset into which such asset is
transformed;

"Swap Provider" means any of the Currency Swap Provider and/or the Basis Rate
Swap Provider and/or the Interest Rate Swap Providers and/or the Issuer Swap
Providers, as the context requires, or any other swap provider appointed from
time to time in accordance with the Transaction Documents or relevant Issuer
Transaction Documents;

"Termination Event" has the meaning given in Clause [19] of the Administration
Agreement;

                                      56

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