Document:

Exhibit 4.4

 

Security Trust
Deed

 

 

Permanent
Custodians Limited

 

Australian
Securitisation Management Pty Limited

 

Permanent
Registry Limited

 

The Bank of
New York

 

 

ARMS II Global
Fund 2

 

 

The Chifley
Tower

2 Chifley
Square

Sydney NSW
2000

Australia

Tel 61 2 9230
4000

Fax 61 2 9230
5333

 

 

© Copyright
Allens Arthur Robinson 2003

 

 

	
  Security Trust Deed

  	
   

  	
  

  

 

Table of Contents

 

	
  1.

  	
  Interpretation

  
	
   

  	
  1.1

  	
  Definitions

  
	
   

  	
  1.2

  	
  Bond Trust Deed
  and Master Trust Deed

  
	
   

  	
  1.3

  	
  Interpretation

  
	
   

  	
  1.4

  	
  Liability of Chargor

  
	
   

  	
  1.5

  	
  Status of this Deed

  
	
   

  	
  1.6

  	
  Knowledge of Bond Trustee

  
	
   

  	
  1.7

  	
  Determination, statement and
  certificate sufficient evidence

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Appointment of security
  trustee

  
	
   

  	
  2.1

  	
  The Security Trustee

  
	
   

  	
  2.2

  	
  Benefit of Trusts

  
	
   

  	
  2.3

  	
  Resolution of Conflicts

  
	
   

  	
  2.4

  	
  Acknowledgement of
  Indebtedness

  
	
   

  	
  2.5

  	
  Repayment of Secured Moneys

  
	
   

  	
  2.6

  	
  Interest on Unpaid Amounts

  
	
   

  	
  2.7

  	
  Discharge by Payment

  
	
   

  	
  2.8

  	
  Duration of Trust

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Charge and
  dealings with charged property

  
	
   

  	
  3.1

  	
  Charge and Ranking of
  the Charge

  
	
   

  	
  3.2

  	
  Floating Charge

  
	
   

  	
  3.3

  	
  Automatic Crystallisation

  
	
   

  	
  3.4

  	
  Operation as Fixed Charge

  
	
   

  	
  3.5

  	
  Security for a Limited
  Amount

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Covenants

  
	
   

  	
  4.1

  	
  Positive Covenants of
  the Chargor

  
	
   

  	
  4.2

  	
  Negative Covenants of
  the Chargor

  
	
   

  	
  4.3

  	
  Covenant of Trust Manager

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Representations and
  warranties

  
	
   

  	
  5.1

  	
  Representations and Warranties

  
	
   

  	
  5.2

  	
  Repetition

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Consequences of Event
  of Default

  
	
   

  	
  6.1

  	
  Events of Default

  
	
   

  	
  6.2

  	
  Consequences of Default

  
	
   

  	
  6.3

  	
  Commencement of enforcement

  
	
   

  	
  6.4

  	
  No individual enforcement

  
	
   

  	
  6.5

  	
  Limitation
  on exercise of enforcement powers

  
	
   

  	
  6.6

  	
  Convening of meeting

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Enforcement

  
	
   

  	
  7.1

  	
  Appointment of Receiver

  
	
   

  	
  7.2

  	
  Joint Receivers

  
	
   

  	
  7.3

  	
  Remuneration of Receiver

  

 

1

 

	
   

  	
  7.4

  	
  Agent of the Chargor

  
	
   

  	
  7.5

  	
  Status of Receiver
  after Commencement of Winding Up

  
	
   

  	
  7.6

  	
  Powers of Receiver

  
	
   

  	
  7.7

  	
  Separate Powers

  
	
   

  	
  7.8

  	
  Terms of Exercise

  
	
   

  	
  7.9

  	
  Indemnities

  
	
   

  	
  7.10

  	
  Security Trustee
  may exercise Powers

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Liability for exercise
  of powers

  
	
   

  	
  8.1

  	
  No Notice or Enforcement

  
	
   

  	
  8.2

  	
  No Liability for Loss

  
	
   

  	
  8.3

  	
  No Liability to Account

  
	
   

  	
  8.4

  	
  Indemnity
  Regarding Exercise of Powers

  
	
   

  	
  8.5

  	
  No Conflict

  
	
   

  	
  8.6

  	
  Contract Involving
  Conflict of Duty

  
	
   

  	
  8.7

  	
  Confidential Information

  
	
   

  	
  8.8

  	
  Benefit for Receiver etc.

  
	
   

  	
  8.9

  	
  Limitation of liability

  
	
   

  	
  8.10

  	
  Liability for Agents

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Protection
  of persons dealing with Security Trustee or Receiver

  
	
   

  	
  9.1

  	
  No
  Inquiry

  
	
   

  	
  9.2

  	
  Receipts

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Application of money

  
	
   

  	
  10.1

  	
  Establishment
  of Secured Moneys Account

  
	
   

  	
  10.2

  	
  Priority of Payments

  
	
   

  	
  10.3

  	
  Payments Conditional
  and Limited

  
	
   

  	
  10.4

  	
  Money Received

  
	
   

  	
  10.5

  	
  Power To
  Invest Amounts Contingently Due

  
	
   

  	
  10.6

  	
  Concerning Payments

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Continuing security
  and releases

  
	
   

  	
  11.1

  	
  Liability Preserved

  
	
   

  	
  11.2

  	
  Chargor’s Liability
  Not Affected

  
	
   

  	
  11.3

  	
  Waiver by Chargor

  
	
   

  	
  11.4

  	
  Discharge of Securities

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Perfection and
  protection of security

  
	
   

  	
  12.1

  	
  Further Assurance

  
	
   

  	
  12.2

  	
  Power of Attorney

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Security provisions

  
	
   

  	
  13.1

  	
  Statutory Powers

  
	
   

  	
  13.2

  	
  Continuing Security

  
	
   

  	
  13.3

  	
  Continuing Indemnities

  
	
   

  	
  13.4

  	
  No Merger of Security

  
	
   

  	
  13.5

  	
  Moratorium Legislation

  
	
   

  	
  13.6

  	
  Conflict

  
	
   

  	
  13.7

  	
  Consent of Security Trustee

  

 

2

 

	
   

  	
  13.8

  	
  Settlement Conditional

  
	
   

  	
  13.9

  	
  Remedies Cumulative

  
	
   

  	
  13.10

  	
  Chargor To Bear Cost

  
	
   

  	
  13.11

  	
  Certificates Conclusive

  
	
   

  	
  13.12

  	
  Written waiver, consent and approval

  
	
   

  	
   

  	
   

  
	
  14.

  	
  The security trustee

  
	
   

  	
  14.1

  	
  Covenants of Security
  Trustee

  
	
   

  	
  14.2

  	
  Protection of Security
  Trustee

  
	
   

  	
  14.3

  	
  Supplemental
  Powers of Security Trustee

  
	
   

  	
  14.4

  	
  Remuneration and Expenses

  
	
   

  	
  14.5

  	
  Conflicts

  
	
   

  	
  14.6

  	
  Reliance on Certificates

  
	
   

  	
  14.7

  	
  No Liability

  
	
   

  	
  14.8

  	
  Keep Records

  
	
   

  	
  14.9

  	
  Removal

  
	
   

  	
  14.10

  	
  Retirement of Security
  Trustee

  
	
   

  	
  14.11

  	
  Removal or
  Retirement not Effective

  
	
   

  	
  14.12

  	
  Appointment of New
  Security Trustee

  
	
   

  	
  14.13

  	
  Funds to be Vested in
  New Trustee

  
	
   

  	
  14.14

  	
  Release of
  Outgoing Security Trustee

  
	
   

  	
  14.15

  	
  Incoming
  Security Trustee to Execute Deed

  
	
   

  	
  14.16

  	
  Settlement
  Amounts Payable to Outgoing Security Trustee

  
	
   

  	
  14.17

  	
  Outgoing
  Security Trustee to Retain Lien

  
	
   

  	
  14.18

  	
  Delivery of Documents

  
	
   

  	
  14.19

  	
  Notice
  to Secured Creditors of New Security Trustee

  
	
   

  	
  14.20

  	
  Additional
  Security Trustee’s Powers

  
	
   

  	
  14.21

  	
  Notification

  
	
   

  	
  14.22

  	
  No Ratings Downgrade

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Amendment

  
	
   

  	
  15.1

  	
  Amendment by Security
  Trustee

  
	
   

  	
  15.2

  	
  Certain Provisions
  Not to be Varied

  
	
   

  	
  15.3

  	
  Copy of
  Amendments to Secured Creditors

  
	
   

  	
  15.4

  	
  Copy
  of Amendments in Advance to Designated Rating Agencies

  
	
   

  	
  15.5

  	
  Evidence of Variation

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Meetings

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Bond Trustee

  
	
   

  	
  17.1

  	
  Capacity

  
	
   

  	
  17.2

  	
  Exercise of rights

  
	
   

  	
  17.3

  	
  Instructions or directions

  
	
   

  	
  17.4

  	
  Payments

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Notices

  
	
   

  	
  18.1

  	
  Notices Generally

  
	
   

  	
  18.2

  	
  Notices to Secured
  Creditors

  
	
   

  	
  18.3

  	
  Notices to
  Designated Rating Agencies

  

 

3

 

	
  19.

  	
  Governing law and
  jurisdiction

  
	
   

  	
  19.1

  	
  Governing Law

  
	
   

  	
  19.2

  	
  Jurisdiction

  
	
   

  	
   

  	
   

  
	
  20.

  	
  General

  
	
   

  	
  20.1

  	
  Severability of Provisions

  
	
   

  	
  20.2

  	
  Counterparts

  

 

4

 

	
  Date

  	
  2003

  
	
   

  
	
  Parties

  	
   

  
	
   

  
	
  1.

  	
   

  	
  Permanent Custodians Limited
  (ACN 001 426 384) of 35 Clarence Street, Sydney, NSW 2000,
  Australia (PCL);

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Australian Securitisation Management Pty Limited (ACN 103 852 428) of Level 6, 12 Castlereagh Street, Sydney,
  NSW 2000, Australia (the Trust Manager);

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Permanent Registry Limited
  (ACN 000 334 636) of 35 Clarence Street, Sydney, NSW 2000,
  Australia (included in the expression the Security Trustee); and

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  The Bank of New York of 101 Barclay
  Street, 21W, New York, New York, 10286 (included in the expression the Bond Trustee).

  
	
   

  
	
  Recitals

  	
   

  
	
   

  
	
  A

  	
   

  	
  The Chargor enters into this
  Deed in its capacity as trustee of the Fund known as ARMS II Global Fund 2 constituted under the
  Master Trust Deed and at the request of the Trust Manager.

  
	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  The Chargor intends to enter
  into certain transactions in that capacity under the Secured Documents
  including the raising of money by the issue of Bonds, and the acquisition of
  Authorised Investments with the proceeds of issue.

  
	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  The Security Trustee has
  agreed for the consideration referred to in this Deed to act as trustee for
  the benefit of the Secured Creditors on the terms and conditions and with the
  powers and authorities set out in this Deed.

  
				

 

This deed provides

 

1.                                      Interpretation

 

1.1                               Definitions

 

In this Deed:

 

Attorney means
any attorney appointed under any of the Secured Documents (including under
clause 12.2 of this Deed).

 

1

 

Bond Trustee’s Secured Moneys means all debts and monetary liabilities owing to the Bond Trustee
under or in respect of the Secured Documents.

 

Bondholders’ Secured Moneys means all debts and monetary liabilities of the Chargor to the
Bondholders, or to the Security Trustee on behalf of the Bondholders, in either
case under or in respect of the Bonds.

 

Bond Trust Deed means
the deed, so entitled, dated on or about the date of this Deed between the
parties to this Deed and Australian Mortgage Securities Ltd.

 

Calculation Agent’s Secured Moneys means all debts and monetary liabilities owing to the Calculation
Agent under or in respect of the Secured Documents.

 

Charge means the
charge created by clause 3.1.

 

Charged Property
means all of the Chargor’s right, title, benefit and interest in and to:

 

(a)                                  all of the Assets of the Fund; and

 

(b)                                 the Trustee’s Indemnity in relation to the
Fund.

 

Chargor means
PCL in its capacity as trustee of the Fund, and every reference in this Deed to
the Chargor is a
reference to PCL acting in that capacity, and not in its personal capacity or
in its capacity as trustee of any other trust.

 

Currency Swap Counterparties’ Secured Moneys means all debts and monetary liabilities of the Chargor to the
Currency Swap Counterparties or to the Security Trustee on behalf of the
Currency Swap Counterparties, in either case, under or in respect of the
Currency Swaps.

 

Eligible Account
means an account in the sole name of the Security Trustee with an Eligible
Financial Institution.

 

Enhancement
means each Enhancement entered into by the Chargor, except for any Mortgage
Insurance Policy, any Cash Reserve Top-Up Loans, the Cash Reserve and the
Advances Reserve.

 

Event of Crystallisation means each or any of the following events:

 

(a)                                  the Chargor deals, attempts or purports to deal
with all or any of the Charged Property otherwise than in accordance with this
Deed;

 

(b)                                 an Event of Insolvency occurs in relation to
the Chargor;

 

(c)                                  the Commissioner of Taxation, or its delegate,
determines to issue a notice under Subdivision 260-A (Schedule 1) of the
Taxation Administration Act 1953 or section 218 of the Income Tax Assessment
Act 1936 for any amount in excess of A$1,000,000 due by the Chargor in respect
of any Tax under such Act or any fines and costs imposed on the Chargor under
such Act;

 

2

 

(d)                                 any person levies or attempts or purports to
levy distress, execution or any other like process over any Charged Property or
any Security Interest over any Charged Property is or becomes enforceable; and

 

(e)                                  an Event of Default occurs.

 

Expiration Date
means the day 6 months after the day on which the Security Trustee discharges
the Charged Property from the Charge under clause 11.4.

 

Extraordinary Resolution has the meaning given in the Conditions.

 

Indebtedness
means moneys borrowed or raised, including rentals under financial leases and
interest thereon, any liability under any bill of exchange, debenture, note or
other security or under any acceptance credit facility, any liability in
respect of the acquisition cost of assets or services to the extent payable
after the time of acquisition or possession thereof, and any guarantee or other
assurance against financial loss in respect of any moneys borrowed or raised,
interest or liabilities.

 

Interest Rate Swap Counterparties’ Secured Moneys means all debts and monetary liabilities of the Chargor to the
Interest Rate Swap Counterparties or to the Security Trustee on behalf of the
Interest Rate Swap Counterparties, in either case, under or in respect of the
Interest Rate Swaps.

 

Notice means a
notice, certificate, request, demand or other communication to be given, served
or made pursuant to this Deed.

 

Paying Agent Secured Moneys means all debts and monetary liabilities owing to each Paying Agent
under or in respect of the Secured Documents.

 

Power means any
right, power, authority, discretion or remedy conferred on the Security
Trustee, any Receiver or any Attorney by this Deed or any applicable law.

 

Receiver means a
receiver, or receiver and manager, of all or any part of the Charged Property
appointed under this Deed.

 

Secured Creditor
means each of:

 

(a)                                  each Bondholder;

 

(b)                                 each Interest Rate Swap Counterparty;

 

(c)                                  each Currency Swap Counterparty;

 

(d)                                 the Security Trustee;

 

(e)                                  the Bond Trustee;

 

(f)                                    the Calculation Agent;

 

(g)                                 each Paying Agent; and

 

(h)                                 the US$ Registrar.

 

3

 

Secured Document means each of:

 

(a)                                  this Deed;

 

(b)                                 the Bond Trust Deed;

 

(c)                                  the Master Trust Deed, in so far as it relates
to the Fund;

 

(d)                                 the Master Origination and Servicing Agreement
in so far as it relates to the origination and management and servicing of
Mortgages comprised in the Assets of the Fund;

 

(e)                                  each Mortgage comprised in the Assets of the
Fund;

 

(f)                                    each Ancillary Document entered into or held by
the Chargor;

 

(g)                                 each Bond (including the Supplementary Bond
Terms);

 

(h)                                 each Enhancement, in so far as it relates to
the Fund;

 

(i)                                     each Interest Rate Swap;

 

(j)                                     each Currency Swap;

 

(k)                                  each Subscription Agreement; and

 

(l)                                     each Paying Agency Agreement,

 

and all other documents which are at any
time entered into by the Chargor under or pursuant to, or which are ancillary
or incidental to, or which are contemplated by any of the abovementioned
documents.

 

Secured Moneys
means:

 

(a)                                  the Bondholders’ Secured Moneys;

 

(b)                                 the Interest Rate Swap Counterparties’ Secured Moneys;

 

(c)                                  the Currency Swap Counterparties’ Secured Moneys;

 

(d)                                 the Security Trustee’s Secured Moneys;

 

(e)                                  the Bond Trustee’s Secured Moneys;

 

(f)                                    the Calculation Agent’s Secured Moneys;

 

(g)                                 the Paying Agent Secured Moneys; and

 

(h)                                 the US$ Registrar Secured Moneys,

 

in each case irrespective of whether those
debts or monetary liabilities:

 

(e)                                  are present or future;

 

(f)                                    are actual, prospective or contingent;

 

(g)                                 are ascertained or unascertained;

 

4

 

(h)                                 are owed or incurred by or on account of the
Chargor alone, or severally or jointly with any other person;

 

(i)                                     are owed or incurred to or for the account of
the relevant Secured Creditor alone, or severally or jointly with any other
person;

 

(j)                                     are owed or incurred as principal, interest,
fees, charges, taxes, duties or other imposts, damages (whether for breach of
contract or tort or incurred on any other ground), losses, costs or expenses,
or on any other account; or

 

(k)                                  comprise any combination of the above.

 

Secured Moneys Account means the Eligible Account established and maintained by the
Security Trustee pursuant to clause 10.1(a).

 

Security Trust
means the trust created by this Deed.

 

Security Trust Fund means all property, rights and assets which are or become subject
to the Security Trust.

 

Security Trustee
means the person who from time to time holds the office of trustee of the
Security Trust (in its capacity as trustee of the Security Trust only) which
person is, at the date of this Deed, Permanent Registry Limited.

 

Security Trustee’s Secured Moneys means all debts and monetary liabilities of the Chargor to the
Security Trustee under or in respect of this Deed.

 

US$ Registrar Secured Moneys means all debts and monetary liabilities owing to the US$ Registrar
under or in respect of the Secured Documents.

 

1.2                               Bond Trust Deed and Master
Trust Deed

 

Words and expressions which are defined in
the Bond Trust Deed (including by incorporation by reference) and the Master
Trust Deed have the same meanings when used in this Deed, unless otherwise
defined in this Deed, or unless the context otherwise requires.  To the extent of any inconsistency between a
word or expression defined in the Bond Trust Deed and the Master Trust Deed,
the definition of that word or expression in the Bond Trust Deed will prevail.

 

1.3                               Interpretation

 

Clause 1.3 of the Bond Trust Deed is
incorporated in this Deed as if set out in full in this Deed.

 

1.4                               Liability of Chargor

 

(a)                                  The Chargor has no personal liability in relation to any of its
obligations under or arising out of this Deed or any of the Transaction Documents
entered into in its capacity as trustee of the Fund.

 

5

 

(b)                                 In relation to each such obligation, the liability of the Chargor is
limited to and does not extend beyond the Assets of the Fund as they stand at
the time at which the obligation is met or satisfied.

 

(c)                                  The Chargor is not liable to meet or satisfy any such obligation
from its own assets (except the Trustee’s Indemnity) and each such obligation
must be met or satisfied from the Assets of the Fund or the Trustee’s
Indemnity.

 

(d)                                 The preceding paragraphs apply notwithstanding the fact that the
liabilities of the Chargor in its capacity as trustee of the Fund may from time
to time almost equal, equal or exceed the value of the Assets of the Fund at
the relevant time.

 

(e)                                  The previous paragraphs of this clause 1.4 do not apply to the
liability of the Chargor in relation to any obligation which the Chargor
expressly assumes in its personal capacity.

 

(f)                                    It is acknowledged by the Chargor that the Assets of the Fund at any
time will include the amount of any compensation found by a Final Judgment (or
admitted by the Chargor) to be payable by the Chargor to restore the Fund
because of a failure by the Chargor to exercise in relation to the Fund the degree
of care, diligence and prudence required of a trustee or because of some other
neglect, default or breach of duty by the Chargor having regard to the powers
and duties conferred on the Chargor by the Master Trust Deed, in either case
occurring before the time in question and causing loss to the Fund quantified
before the time in question.

 

(g)                                 For the purposes of this clause 1.4, Final Judgment means a judgment of a court of
law in Australia against which there can be no appeal or in relation to which
the time to appeal has expired.

 

1.5                               Status of this Deed

 

This Deed is:

 

(a)                                  the Security Trust Deed for the Fund; and

 

(b)                                 a Transaction Document.

 

1.6                               Knowledge of Bond Trustee

 

The Bond Trustee will only be considered to
have knowledge, notice of or to be aware of any matter or thing if the Bond
Trustee has knowledge, notice or awareness of that matter or thing by virtue of
the actual knowledge, notice of awareness of the officers or employees of the
Bond Trustee who have day to day responsibility for the administration of the
trust established by the Bond Trust Deed.

 

1.7                              Determination, statement and
certificate sufficient evidence

 

Except where otherwise provided in this
Deed, any determination, statement or certificate by the Security Trustee or an
Authorised Signatory of the Security Trustee provided for in this

 

6

 

Deed is sufficient evidence of each thing
determined, stated or certified in the absence of manifest error or proof to
the contrary.

 

2.                                      Appointment of security
trustee

 

2.1                               The Security Trustee

 

The Security Trustee:

 

(a)                                  is appointed to act as trustee on behalf of the Secured Creditors on
the terms and conditions of this Deed; and

 

(b)                                 acknowledges and declares that it:

 

(i)                                     holds the sum of A$10.00 received on the date of this Deed from the
Trust Manager; and

 

(ii)                                  will hold the benefit of the Charge, the Charged Property and the
benefit of each of the Secured Documents to which it is a party,

 

in each case,
on trust for the Secured Creditors, on the terms and conditions of this Deed.

 

2.2                               Benefit of Trusts

 

(a)                                  Each Secured Creditor is entitled to the benefit of the Security
Trust.

 

(b)                                 The provisions of this Deed are binding on the Chargor and the
Secured Creditors and all persons claiming through them, respectively.

 

2.3                               Resolution of Conflicts

 

If there is at any time a conflict between
a duty owed by the Security Trustee to any Secured Creditor or class of Secured
Creditor and a duty owed by it to another Secured Creditor or class of Secured
Creditor, the Security Trustee must give priority to the interests of the
Secured Creditors according to the order in which moneys are to be applied set
out in clause 10.2.  Provided that
the Security Trustee acts in good faith, it shall not incur any liability to
any Secured Creditor for so doing.

 

2.4                               Acknowledgement of
Indebtedness

 

The Chargor acknowledges its indebtedness
to the Security Trustee as trustee for the Secured Creditors in respect of the
Secured Moneys.

 

2.5                               Repayment of Secured Moneys

 

The Chargor covenants with the Security
Trustee for the benefit of the Secured Creditors that as and when any Secured
Moneys becomes due to be paid, repaid or redeemed in accordance with the terms
upon which they are outstanding or under any provision of this Deed, the

 

7

 

Chargor will unconditionally pay or cause
to be paid to or to the order of the Security Trustee (as the case requires)
the Secured Moneys as they fall due.

 

2.6                               Interest on Unpaid Amounts

 

The Chargor covenants with the Security
Trustee for the benefit of the Secured Creditors that it will pay or cause to
be paid to or to the order of the Security Trustee interest on the amount of
any Secured Moneys which have become due but remain unpaid until actual payment
of that unpaid amount (whether before or after any judgment or other order of a
court of competent jurisdiction), at such intervals, in such amount and on such
conditions (if any) as are set out in the Secured Document which governs the
payment of that unpaid amount.

 

2.7                               Discharge by Payment

 

Notwithstanding clauses 2.5 and 2.6, every
payment on account of Secured Moneys made by the Chargor direct to the
corresponding Secured Creditors (or, in the case of the US$ Bondholders, to the
Bond Trustee or a Paying Agent) will satisfy to that extent the Chargor’s
obligations to the Security Trustee under this Deed.

 

2.8                               Duration of Trust

 

The Security Trust commences on the date of
this Deed and terminates on the earlier of:

 

(a)                                  the 80th anniversary of the date of this Deed; and

 

(b)                                 the Expiration Date.

 

3.                                      Charge and dealings
with charged property

 

3.1                               Charge and Ranking of the
Charge

 

(a)                                  The Chargor charges all of its right, title, benefit and interest in
and to the Charged Property to the Security Trustee on behalf of the Secured
Creditors as security for the due and punctual payment of the Secured Moneys.

 

(b)                                 The Charge is a first ranking charge having priority over all other
Security Interests of the Chargor.

 

3.2                               Floating Charge

 

Subject to clauses 3.3 and 3.4, the Charge
is a floating charge, and accordingly the Chargor may, subject to the terms of
this Deed, deal with the Charged Property in accordance with and as
contemplated by the Secured Documents.

 

3.3                               Automatic Crystallisation

 

If an Event of Crystallisation occurs:

 

8

 

(a)                                  the Charge will at that time automatically crystallise and
immediately become a fixed charge over that part of the Charged Property in
respect of which that Event of Crystallisation occurs;

 

(b)                                 the Security Trustee will be deemed to have intervened and to have
exercised all its rights of intervention in respect of that Charged Property;
and

 

(c)                                  the Security Trustee will have the right (either in its own name or in
the name of the Chargor) immediately to seek and obtain appropriate relief in
relation to that Charged Property.

 

3.4                               Operation as Fixed Charge

 

Notwithstanding any other provision of this
Deed, the Security Trustee may at any time by notice in writing to the Chargor
determine the floating character of the Charge as regards any part of the
Charged Property specified in that notice either particularly or
generally.  Upon the giving of such a
notice, the Charge will immediately cease to be a floating charge and will
become and operate as a fixed charge as regards that part of the Charged
Property.

 

3.5                               Security for a Limited Amount

 

Notwithstanding any other term of this Deed
and notwithstanding that the Charge is security for the whole of the Secured
Moneys, the amount recoverable by the Security Trustee under the Charge is
limited to A$10,000,000,000.

 

4.                                      Covenants

 

4.1                               Positive Covenants of the
Chargor

 

The Chargor must:

 

(a)                                  (Compliance With Agreements): subject to the terms of the
Master Trust Deed, enforce fully and punctually perform and comply with its
obligations under each of the Secured Documents;

 

(b)                                 (Documents of title): subject to the terms of this Deed,
immediately upon demand deposit with the Security Trustee, or as the Security
Trustee, in exercising its Powers, may direct all property comprised in the
Charged Property and all documents or indicia of title to the Charged Property;

 

(c)                                  (Inform of Material Events): promptly upon receiving actual
notice, inform the Security Trustee, the Bond Trustee and each Designated
Rating Agency in writing of the occurrence of any of the following:

 

(i)                                     the commencement or, to the best of its knowledge, threatened
commencement of litigation, arbitration, administrative or judicial proceeding
or investigation against the Chargor which is likely to have a Material Adverse
Effect;

 

9

 

(ii)                                  the commencement of any liquidation proceedings by or against the
Chargor under any applicable law or any proceeding in which a receiver,
receiver and manager, liquidator, provisional liquidator, administrator,
trustee or other similar official shall have been, or may be, appointed or
requested for the Chargor;

 

(iii)                               the occurrence of an Event of Crystallisation, Event of Default or
Potential Event of Default; or

 

(iv)                              the retirement or removal from office of:

 

(A)                              the Trust Manager as manager of the Fund;

 

(B)                                the Chargor as trustee of the Fund;

 

(C)                                the Bond Trustee as trustee for the US$ Bondholders; and

 

(D)                               the Security Trustee as trustee for the Secured Creditors;

 

(d)                                 (Maintain Approvals): obtain and maintain in full force and
effect all Approvals which are necessary or material to the conduct of its
business;

 

(e)                                  (Protect Property): subject to the terms of the Master Trust
Deed, maintain, protect and enforce its rights under or arising from the
Charged Property, remedy every defect in its title to any part of the Charged
Property, and with the consent of, and at the direction of the Security
Trustee, take, defend, settle or compromise all legal proceedings for the
protection or recovery of any of the Charged Property;

 

(f)                                    (Observe Statutes): comply with and observe all Statutes and
lawful requirements of a Government Body which are binding on it or the Charged
Property where failure to do so may have a Material Adverse Effect;

 

(g)                                 (Attend Meetings of Bondholders): permit the Security Trustee
to attend any meeting of Bondholders convened in accordance with the Bond Trust
Deed and to be heard on any part of the business of the meeting which concerns
the Security Trust Fund or the Secured Moneys;

 

(h)                                 (Information): whenever requested, give to the Security
Trustee, each Designated Rating Agency, any Secured Creditor or any Auditor
such information in the Chargor’s possession or control as any such person may
reasonably require with respect to all matters relating to the Chargor’s
affairs and the interests of Secured Creditors; and

 

(i)                                     (Semi-annual reports): provide, or procure that the Trust
Manager on its behalf provides, promptly upon request by the Security Trustee,
reports which:

 

(i)                                     confirm, that to the knowledge of the Chargor and the Trust Manager,
no Event of Default nor Potential Event of Default is subsisting, or giving
details of any Event of Default or Potential Event of Default that is
subsisting; and

 

10

 

(ii)                                  attach either the most recent audited Financial Statements of the
Fund or, if no audited Financial Statements have been produced for the
financial year or half-year immediately preceding the date which is six months
before the request, unaudited management Financial Statements prepared in
accordance with Approved Accounting Standards for that period.

 

4.2                               Negative Covenants of the
Chargor

 

The Chargor must not without the prior
written consent of the Security Trustee and without prior written confirmation
from each Designated Rating Agency that such action will not affect the
Designated Rating of the Bonds (if any) then outstanding:

 

(a)                                  (Alter Rights): subject to the terms of the Master Trust Deed,
waive, novate, modify or amend, or release any party from its obligations
under, or consent to any waiver, modification, novation or amendment of, or
release of any party from its obligations under, any of the Secured Documents
or waive or alter any rights with respect to the Charged Property in any such
case, in a manner which would materially and adversely affect the rights of any
Secured Creditor;

 

(b)                                 (Dealings with Assets): sell, transfer, exchange, create or
permit any Security Interest over, or otherwise dispose of all or part of the
Charged Property except:

 

(i)                                     as contemplated by or permitted under the Secured Documents; and

 

(ii)                                  in the ordinary course of the exercise of its rights and the
performance of its obligations under the Secured Documents;

 

(c)                                  (Other Business): in its capacity as trustee of the Fund,
engage in any business or activity other than the business and activities
contemplated by or permitted under the Secured Documents;

 

(d)                                 (Increased Fees): agree to any increase in fees payable or
expenses reimbursable by the Chargor to any other party under or in connection
with any of the Secured Documents;

 

(e)                                  (Creation of Indebtedness): in its capacity as trustee of the
Fund, create, incur, assume or suffer to exist any Indebtedness except for
Indebtedness created or arising under or in accordance with the Secured
Documents;

 

(f)                                    (Bank accounts): in its capacity as trustee of the Fund, open
or operate any bank account except as contemplated by or permitted under the
Secured Documents; or

 

(g)                                 (Insolvency) institute any proceedings in relation to any Event
of Insolvency in relation to the Fund.

 

11

 

4.3                               Covenant of Trust Manager

 

(a)                                  The Trust Manager repeats the covenants contained in
clauses 12.2(l) and (m) of the Master Trust Deed for the benefit of the
Security Trustee and the Bond Trustee as trustees for the Secured Creditors and
the US$ Bondholders respectively.

 

(b)                                 The Trust Manager on behalf of the Chargor will promptly lodge this
Deed for registration by the Australian Securities and Investments Commission
pursuant to the Corporations Act.

 

(c)                                  The Trust Manager must deliver to each Designated Rating Agency such
periodic reports as to the Fund, its assets and liabilities as the Trust
Manager and that Designated Rating Agency may from time to time agree.

 

(d)                                 The Trust Manager must provide promptly upon request by the Security
Trustee the most recent audited Financial Statements of the Fund or, if no audited
Financial Statements have been produced for the financial year or half year
immediately preceding the date which is six months before the request,
unaudited management Financial Statements prepared in accordance with Approved
Accounting Standards for that period.

 

(e)                                  The Trust Manager must promptly upon receiving actual notice, inform
the Security Trustee, the Chargor, the Bond Trustee and each Designated Rating
Agency in writing of the occurrence of any of the following:

 

(i)                                     the commencement or threatened commencement of litigation,
arbitration, administrative or judicial proceeding or investigation against the
Chargor which is likely to have a Material Adverse Effect;

 

(ii)                                  the commencement of any liquidation proceedings by or against the
Chargor or the Fund under any applicable law or any proceeding in which a
receiver, receiver and manager, liquidator, provisional liquidator, official
manager, trustee or other similar official shall have been, or may be,
appointed or requested for the Chargor or the Fund;

 

(iii)                               the occurrence of an Event of Default or Potential Event of Default;

 

(iv)                              the occurrence of an Event of Crystallisation; or

 

(v)                                 its retirement or removal from office as manager of the Fund or the
retirement or removal from office of the Chargor as trustee of the Fund or the
Security Trustee as trustee of the Security Trust.

 

12

 

5.                                      Representations and
warranties

 

5.1                               Representations and
Warranties

 

The Chargor represents and warrants to the
Security Trustee, on behalf of the Secured Creditors, that:

 

(a)                                  (Due Incorporation): it is duly incorporated and validly
existing under the laws of the Commonwealth of Australia and has the corporate
power to own its property and to carry on its business as is now being
conducted;

 

(b)                                 (Constitution): the execution delivery and performance of the
Secured Documents does not violate its constitution;

 

(c)                                  (Corporate Power): it has the power and has taken all corporate
and other action required to enter into the Secured Documents and to authorise
the execution and delivery of the Secured Documents and the performance of its
obligations under the Secured Documents;

 

(d)                                 (Filings): it has filed all corporate notices and effected all
registrations with the Australian Securities and Investments Commission or
similar office in its jurisdiction of incorporation and in any other
jurisdiction as required by law and all such filings and registrations are
current, complete and accurate;

 

(e)                                  (Legally Binding Obligation): each Secured Document to which it
is a party constitutes a valid, legally binding and enforceable obligation of
the Chargor in accordance with its terms except as such enforceability may be
limited by any applicable bankruptcy, insolvency, reorganisation, moratorium or
trust or other similar laws affecting creditors’ rights generally;

 

(f)                                    (Execution, Delivery and Performance): the execution, delivery
and performance of the Secured Documents (other than the Mortgages) by the
Chargor does not violate any existing law or regulation or any document or
agreement to which it is a party or which is binding upon it or any of its
assets;

 

(g)                                 (Authorisation): all Approvals of every Government Body
required to be obtained by it in connection with the execution, delivery and
performance of the Secured Documents have been obtained and are valid and
subsisting;

 

(h)                                 (Good Title): it is the legal owner of, and is entitled to
charge in the manner provided in this Deed, the Charged Property and, subject
only to this Deed, the Charged Property is free of all other Security Interests
other than the Trustee’s Indemnity and any Security Interest arising by
operation of law;

 

(i)                                     (Pending Litigation or Other Proceeding): it does not have
actual notice of any pending action, proceeding or investigation before any
court, Government Body or administrative agency or arbitrator against or
affecting the Charged Property or the

 

13

 

Chargor, or any assets or rights of the
Chargor, or, to the Chargor’s knowledge, any threatened action or proceeding
before any of the foregoing, which, if decided adversely to the Chargor, would
materially and adversely affect:

 

(i)                                     the business or financial condition of the Chargor;

 

(ii)                                  the Charged Property;

 

(iii)                               the efficacy or first priority of the Charge; or

 

(iv)                              the exercise of the rights of the Security Trustee in respect of the
Charged Property;

 

(j)                                     (No Other Default): it is not in default under any document or
agreement relating to Indebtedness or any other agreement to an extent or in a
manner which has (or could have) an adverse effect on the Chargor or its
ability to perform its obligations under the Secured Documents; and

 

(k)                                  (Events of Default): the Chargor is not aware of the occurrence
of an Event of Default or Potential Event of Default which is continuing
unremedied.

 

5.2                               Repetition

 

Each representation and warranty contained
in clause 5.1 is deemed to be given or repeated (as the case may be) on each
day on which obligations in respect of the Secured Moneys are incurred,
undertaken or are due to be satisfied by the Chargor (including, but not
limited to, each Issue Date) with reference to the facts and circumstances then
subsisting, as if made on each such day.

 

6.                                      Consequences of Event of
Default

 

6.1                               Events of Default

 

Each of the events set out in Condition
11.1 constitutes an Event of Default.

 

6.2                               Consequences of Default

 

At any time after the occurrence of an
Event of Default, the Security Trustee may, and must:

 

(a)                                  if an Extraordinary Resolution is passed to that effect; or

 

(b)                                 if it is required to do so in writing by:

 

(i)                                     if any Class A Bonds or Fast Prepayment Bonds remain outstanding,
the Bondholders of not less than 51% of the aggregate of:

 

(A)                              the Face Value of all outstanding Class A Bonds; and

 

(B)                                the US$ Equivalent of the Face Value of all outstanding Fast
Prepayment Bonds; or

 

14

 

(ii)                                  if all Class A Bonds and Fast Prepayment Bonds have been redeemed in
full, the Bondholders of not less than 51% of the aggregate Face Value of all
outstanding Class B Bonds; or

 

(iii)                               if all Class A Bonds, Class B Bonds and Fast Prepayment Bonds have
been redeemed in full, by the Secured Creditor ranking the highest in priority
for payment under clause 10.2,

 

by notice in writing to the Issuer, do any
one or more of the following:

 

(c)                                  declare the Charge to be enforceable;

 

(d)                                 exercise all or any of its Powers which arise or which are expressed
to arise upon the occurrence of an Event of Default or upon the Charge becoming
enforceable; and

 

(e)                                  declare the Secured Moneys immediately due and payable, whereupon
the same will become so due and payable.

 

6.3                               Commencement of enforcement

 

Immediately upon the giving by the Security
Trustee of a notice under clause 6.2:

 

(a)                                  the Security Trustee must give a copy of that notice to each Secured
Creditor, each Paying Agent and each Designated Rating Agency; and

 

(b)                                 the right of the Chargor to deal with the Charged Property ceases.

 

6.4                               No individual enforcement

 

Unless the Security Trustee having become
bound to perform its obligations under this Deed fails to do so within 7
Business Days of being obliged to do so and such failure is continuing, the
rights of each Secured Creditor (other than the Security Trustee) to enforce
the obligations of the Chargor with respect to payment of the Secured Moneys
are limited to the exercise of its rights to enforce and seek due
administration by the Security Trustee of this Deed.  In particular, unless the Security Trustee having become bound to
perform its obligations under this Deed fails to do so within 7 Business Days
of being obliged to do so and such failure is continuing, no Secured Creditor
(other than the Security Trustee) may, with respect to payment of any such
amount:

 

(a)                                  sue the Chargor;

 

(b)                                 obtain judgment against the Chargor;

 

(c)                                  apply for or seek to wind up the Fund; or

 

(d)                                 levy execution against any Asset of the Fund.

 

6.5                               Limitation on
exercise of enforcement powers

 

The Security Trustee must not:

 

(a)                                  give a notice under clause 6.2; or

 

15

 

(b)                                 exercise any of the Powers which arise, or are expressed to arise,
upon the occurrence of an Event of Default or upon the Charge becoming
enforceable,

 

without having first been directed to do so
by an Extraordinary Resolution or by notice in writing in accordance with
clause 6.2(b), unless it reasonably believes that it is necessary to do so to
protect the interests of the Secured Creditors.

 

6.6                               Convening of meeting

 

Promptly upon receiving actual notice of
the occurrence of an Event of Default:

 

(a)                                  the Bond Trustee must convene a meeting of US$ Bondholders and
request directions from the US$ Bondholders as to what action the US$
Bondholders require the Bond Trustee to require the Security Trustee to take;
and

 

(b)                                 the Security Trustee must convene a meeting of Fast Prepayment
Bondholders and request directions from the Fast Prepayment Bondholders as to
what action the Fast Prepayment Bondholders require the Security Trustee to
take.

 

7.                                      Enforcement

 

7.1                               Appointment of Receiver

 

Subject to clause 6.5, at any time after an
Event of Default has occurred which has not been remedied or waived in writing
by the Security Trustee, the Security Trustee may:

 

(a)                                  (Appoint Receiver): appoint in writing any person or persons to
be a Receiver of all or any part of the Charged Property;

 

(b)                                 (Terminate Receiver): from time to time terminate the
appointment of any Receiver so appointed as to all or any part of the Charged
Property; and

 

(c)                                  (Replace Receiver): in case of the termination, retirement or
death of any such Receiver, appoint another person or persons in his place.

 

7.2                               Joint Receivers

 

If more than one person is appointed as a
Receiver of the Charged Property, the Security Trustee may, at its option,
specify whether such appointment and the powers of each such person are to be
joint or joint and several, and failing such specification, such appointment
and the powers of each such person will be deemed to be joint and several.

 

7.3                               Remuneration of Receiver

 

The Security Trustee may fix the
remuneration of any Receiver at such rate as the Security Trustee from time to
time determines, but not exceeding whichever is the greater of the standard
hourly rate from time to time charged by the firm of which the Receiver is a
member and 5% of the gross amount of all money collected by the Receiver.

 

16

 

7.4                               Agent of the Chargor

 

Every Receiver is the agent of the Chargor
and the Chargor is (subject to clause 1.4) solely responsible for all acts and
omissions by, and the remuneration of, the Receiver.  Except in cases in which, on a reasonable judgement, it is
impractical to do so, the Security Trustee must only appoint a Receiver if the
Receiver, upon being appointed covenants with the Security Trustee not to
exercise any Power:

 

(a)                                  as agent of or in the name of the Chargor unless the Receiver has
(except in cases in which on a reasonable judgment it is impracticable to do
so) obtained a written acknowledgement from any person to whom a liability is
incurred as a result of the exercise of that Power that:

 

(i)                                     in the exercise of that Power, the Receiver is the agent of the
Chargor and is acting in no other capacity; and

 

(ii)                                  the Chargor’s liability in relation to the exercise of the Power is
limited to the Security Trust Fund; and

 

(b)                                 as agent of or in the name of the Security Trustee unless the
Receiver has (except in cases in which on a reasonable judgment it is
impracticable to do so) obtained a written acknowledgement from any person to
whom a liability is incurred as a result of the exercise of that Power that:

 

(i)                                     in the exercise of that Power, the Receiver is the agent of the
Security Trustee and is acting in no other capacity; and

 

(ii)                                  that the Security Trustee’s liability in relation to the exercise of
the Power is limited to the Security Trustee’s rights against the Security
Trust Fund.

 

7.5                               Status of Receiver
after Commencement of Winding Up

 

If for any reason a Receiver ceases to be
the agent of the Chargor, and the Receiver becomes the agent of the Security
Trustee:

 

(a)                                  the Receiver’s rights of recourse to the Security Trustee are
limited to the Security Trustee’s rights against the assets which from time to
time constitute the Charged Property;

 

(b)                                 the Receiver has no authority to act in a way which exposes the
Security Trustee to any personal liability; and

 

(c)                                  no act or omission of the Receiver will be considered fraud,
negligence or wilful default of the Security Trustee.

 

7.6                               Powers of Receiver

 

Every Receiver has the following powers in
addition to any other powers conferred by law:

 

17

 

(a)                                  (To take possession): to take possession of and collect and get
in the Charged Property, and to retain all books, records and documents of
title relating to the Charged Property;

 

(b)                                 (To collect money): to convert, liquidate and reduce the whole
or any part of the Charged Property into money;

 

(c)                                  (To carry on business): to carry on or concur in carrying on
any business of the Chargor in relation to the Charged Property and to do any
thing which the Chargor is authorised or obliged to do under this Deed and to
protect, maintain, preserve and enforce the Charged Property;

 

(d)                                 (To Borrow or raise money): to incur Indebtedness for the
purposes of or in connection with the exercise of any Power and to grant
Security Interests over the Charged Property to secure such Indebtedness,
whether ranking in priority to, pari passu with, or after this Deed;

 

(e)                                  (To employ): to employ any person as employee, contractor,
professional adviser, agent, broker or auctioneer, to discharge any such
person, to rely upon the advice of any such person, and to delegate to any such
person any Power (including this Power to employ and the Power to delegate);

 

(f)                                    (To sell property): to sell or concur in selling the Charged
Property (whether or not the Receiver has taken possession of it), whether by
public auction, private treaty or tender; for cash or on credit; in one lot or
in parcels; with or without special conditions or stipulations as to title, the
time and the mode of payment of purchase money or otherwise; with power to
allow payment of all or part of the purchase money to be deferred (whether with
or without security); and otherwise on such terms and conditions as the
Receiver considers expedient;

 

(g)                                 (Promote Companies): to incorporate or participate in
incorporating companies to purchase the Charged Property or assume the
obligations of the Chargor;

 

(h)                                 (To give up possession): to give up possession of the whole or
any part of the Charged Property at any time;

 

(i)                                     (To invest proceeds against contingencies): to invest the
Charged Property as the Receiver thinks fit, with full power to vary, transpose
or re-invest such investments from time to time;

 

(j)                                     (To enter into contracts): to enter into any contract or
arrangement for the purposes of or in connection with the exercise of any
Power;

 

(k)                                  (To perform contracts): to perform, enforce, exercise or
refrain from exercising the Chargor’s rights and powers under, obtain the
benefit of and to vary, rescind or terminate, all contracts and rights forming
part of the Charged Property (including

 

18

 

those arising under the Secured Documents),
and all contracts or arrangements entered into by the Receiver in exercise of
his Powers;

 

(l)                                     (To take proceedings): to institute, conduct, defend,
discontinue, compromise or settle any legal proceedings relating to the Charged
Property and to submit to arbitration;

 

(m)                               (To bankrupt debtors and wind-up companies): to make debtors
bankrupt, to wind-up companies, and to do all things in connection with any
bankruptcy or winding up which the Receiver thinks necessary for the recovery
or protection of the Charged Property;

 

(n)                                 (To delegate): to delegate from time to time any Power
including this Power of delegation;

 

(o)                                 (To Compromise): to make any settlement, arrangement or
compromise regarding any action or dispute arising in connection with the
Charged Property, to grant to any person involved therein time or other
indulgence and to execute such releases or discharges in connection therewith
as the Receiver thinks expedient in the interests of the Security Trustee;

 

(p)                                 (To Appeal): to appeal against or to enforce any judgment or
order;

 

(q)                                 (To File): to file all certificates, registrations and other
documents and to take any and all action on behalf of the Chargor which the
Security Trustee or Receiver believes necessary to protect, preserve or improve
any or all of the Charged Property and the rights of the Chargor and the
Security Trustee in respect of any agreement for sale and to obtain for the
Security Trustee all of the benefits of this Deed and in particular the placing
of the Chargor into liquidation or the appointment of a Receiver shall be
deemed to be an event against which the Security Trustee may protect its
rights;

 

(r)                                    (To Operate Bank Accounts): to operate to the exclusion of the
Chargor any bank account in the name of the Chargor whether alone or jointly
and to withdraw any moneys to the credit of such account and to sign and
endorse or to authorise others to sign and endorse in the name of the Chargor
cheques, promissory notes, bills of exchange and other negotiable instruments;

 

(s)                                  (Incidental Power): to do all such other things which the
Receiver considers necessary for or incidental to the exercise of any other
Power conferred on the Receiver by this Deed, or for the protection of the
interests of the Secured Creditors under this Deed; and

 

(t)                                    (To Do Such Things As Are Expedient): to do all such other acts
and things without limitation as such Receiver shall think expedient for the
interests of the Security Trustee or the Secured Creditors,

 

19

 

and such further powers and discretions as
the Security Trustee by notice in writing to the Receiver confers upon the
Receiver for the purposes referred to in this clause 7.

 

7.7                               Separate Powers

 

Each of the paragraphs of clause 7.6
confers a separate and independent Power, none of which limits any of the
others.

 

7.8                               Terms of Exercise

 

Any exercise by a Receiver of any Power may
be:

 

(a)                                  on such terms and conditions as the Receiver in his discretion
considers appropriate, necessary or expedient; and

 

(b)                                 without prejudice to clause 7.4, expressed to be in the name of the
Chargor or otherwise.

 

7.9                               Indemnities

 

The Security Trustee may, but shall not
under any circumstances be obliged to, give such indemnities to the Receiver
concerning the performance of the Receiver’s duties as are permitted by law,
and if the Security Trustee is obliged to pay any money under any indemnity,
that money will become part of the Secured Moneys.

 

7.10                        Security Trustee may
exercise Powers

 

At any time after an Event of Default has
occurred which has not been remedied or waived in writing, and whether or not a
Receiver has been appointed, the Security Trustee may exercise all or any of
the Powers conferred on a Receiver as if the Powers had been conferred on the
Security Trustee.  The Security Trustee
may:

 

(a)                                  exercise those Powers itself or appoint an agent or joint and
several agents for that purpose (or do both);

 

(b)                                 fix, in accordance with clause 7.3, the remuneration of any agent
appointed by the Security Trustee as if that agent were appointed as Receiver;

 

(c)                                  from time to time terminate the appointment of any such agent; and

 

(d)                                 in the case of the termination, retirement or death of any such
agent, appoint another person or persons in his place.

 

8.                                      Liability for exercise of
powers

 

8.1                               No Notice or Enforcement

 

It is not incumbent on the Security Trustee
to:

 

(a)                                  give any notice of the Charge to any person;

 

(b)                                 enforce payment of any moneys payable to the Chargor;

 

20

 

(c)                                  realise any of the Charged Property; or

 

(d)                                 take any steps or proceedings for that purpose,

 

unless, in any such case, the Security
Trustee thinks fit to do so or is expressly required to do so under this Deed.

 

8.2                              No
Liability for Loss

 

Neither the Security Trustee nor any
Receiver is liable for any omission, delay, mistake or irregularity in or about
the exercise, attempted exercise, non-exercise or purported exercise of any
Power except for fraud, negligence or wilful default.

 

8.3                              No
Liability to Account

 

Neither the Security Trustee nor any
Receiver is, by reason of the Security Trustee or the Receiver entering into
possession of the Charged Property, liable to account as mortgagee or chargee
in possession or for anything except actual receipts or be liable for any loss
upon realisation or for any default, omission, delay or mistake for which a
mortgagee or chargee in possession might be liable (except where that loss
results from, or that default, omission, delay or mistake constitutes, fraud,
negligence or wilful default on the part of the Security Trustee or a Receiver
(as the case may be)).

 

8.4                               Indemnity Regarding Exercise of Powers

 

(a)                                  Without prejudice to the right of indemnity given to trustees by
law, each of the Security Trustee, the Receiver, any Attorney and each of their
respective officers, directors, employees and affiliates is, except where
caused by fraud, negligence or wilful default, entitled to be indemnified out
of the Charged Property in respect of all costs, expenses, liabilities, Taxes
and losses incurred by it in the exercise of any Power or obligation under this
Deed, and against all actions, proceedings, costs, claims and demands in
respect of any matter or thing done or omitted relating to the Charged
Property, even if caused by a mistake, oversight, error of judgment or want of
prudence by the Security Trustee, the Receiver, the relevant Attorney or their
respective officers, directors, employees and affiliates.

 

(b)                                 Notwithstanding any other provision of this Deed, if the Security
Trustee considers that the Charged Property will be insufficient to fully
reimburse, exonerate or indemnify the Security Trustee under paragraph (a) in
respect of any amount in respect of which it is entitled to be indemnified
under that paragraph, the Security Trustee shall not be obliged to exercise any
Power or comply with any obligation under this Deed unless and until it has
received an indemnity in respect of such amounts in form and substance and from
a party reasonably satisfactory to it.

 

21

 

8.5                               No Conflict

 

The Security Trustee and any Receiver may
exercise any Power, notwithstanding that the exercise of that Power involves a
conflict between any duty owed to the Chargor by the Security Trustee or such
Receiver and:

 

(a)                                  any duty owed by the Security Trustee or Receiver to any other
person; or

 

(b)                                 the interests of the Security Trustee or Receiver.

 

8.6                               Contract Involving Conflict of Duty

 

Any contract which involves any such
conflict of duty or interest shall not be void or voidable by virtue of any
such conflict of duty or interest nor shall the Security Trustee or Receiver be
liable to account to the Chargor or any other person for any moneys because of
any such conflict of interest or duty.

 

8.7                               Confidential
Information

 

The Security Trustee or any Receiver may
for the purpose of exercising any Power, disclose to any person any documents
or records of, or information about, the Chargor, the Chargor’s property or the
Chargor’s business or affairs, whether or not confidential, if it reasonably
considers such disclosure necessary for the purposes of exercising any Power.

 

8.8                               Benefit
for Receiver etc.

 

The Security Trustee is deemed to have accepted
the benefit of this clause 8 and any provision of this Deed expressed to
be in favour or for the benefit of a Receiver, Attorney or delegate as agent
for all such persons, and the Security Trustee holds the benefit of such
provisions on trust for the benefit of all such persons.

 

8.9                               Limitation
of liability

 

Notwithstanding any other provision of this
Deed, the Security Trustee will have no liability under or in connection with
this Deed or any other Transaction Document (whether to the Secured Creditors,
the Chargor, the Trust Manager or any other person) other than to the extent to
which the liability is able to be satisfied out of the property of the Security
Trust Fund from which the Security Trustee is actually indemnified for the
liability.  This limitation will not
apply to a liability of the Security Trustee to the extent that it is not
satisfied because, under this Deed or by operation by law, there is a reduction
in the extent of the Security Trustee’s indemnification as a result of the
Security Trustee’s fraud, negligence or wilful default.  Nothing in this clause 8.9 or any similar
provision in any other Transaction Document limits or adversely affects the
rights or Powers of the Security Trustee, any Receiver or Attorney.

 

22

 

8.10                        Liability
for Agents

 

The Security Trustee will not be
responsible to any Secured Creditor for any misconduct or default on the part
of any agent or delegate appointed by the Security Trustee in accordance with
this Deed, provided that any such person will be a person who is, in the
opinion of the Security Trustee, appropriately qualified and the Security
Trustee has exercised good faith in the selection of such agent or delegate.

 

9.                                      Protection of persons dealing with Security Trustee or Receiver

 

9.1                               No Inquiry

 

No person dealing with the Security
Trustee, a Receiver or any Attorney is bound to inquire as to whether any of
the Secured Moneys are owing or payable, whether any Receiver or Attorney has
been properly appointed, or as to the propriety or regularity of the exercise
or purported exercise of any Power or any other matter or thing, or be affected
by actual or constructive notice that any such exercise is improper.  Any transaction entered into as a result of
any such exercise or purported exercise will be valid and binding
notwithstanding any irregularity or impropriety in such exercise.

 

9.2                               Receipts

 

The receipt of the Security Trustee, the
Receiver or any Attorney for any money or assets which come into the hands of
the Security Trustee, the Receiver or such Attorney by virtue of any Power,
will discharge any person paying or handing over the same from being concerned
to see to their application, or being answerable or accountable for their loss
or misapplication.

 

10.                               Application
of money

 

10.1                        Establishment of Secured Moneys Account

 

Upon the Charge becoming enforceable under
clause 6.2:

 

(a)                                  the Security Trustee must establish and thereafter maintain an
Eligible Account designated ARMS II Global Fund 2 (or any other name which is
appropriate to identify the account as being established for the purposes of
the Security Trust); and

 

(b)                                 thereafter, the Security Trustee must credit to the Secured Moneys
Account, all moneys received by the Security Trustee under the Secured
Documents or as a result of the exercise of any Power, provided that the
Security Trustee may credit such moneys to an account with an Eligible
Financial Institution if the moneys are not deposited for more than
30 days and the aggregate of the moneys held in such accounts at any time
is not more than 20% of the aggregate Face Value of the Bonds at that time.

 

23

 

10.2                        Priority
of Payments

 

Subject to any law which applies
notwithstanding any agreement to the contrary and subject to clause 10.3, all
money received by the Security Trustee or a Receiver after the Charge has
become enforceable pursuant to the Secured Documents or as a result of the
exercise of any Power must be applied:

 

(a)                                  (Costs of enforcement): first, in payment on a full indemnity
basis of all costs, charges, expenses and disbursements incurred in the
exercise or performance or attempted exercise or performance of any Powers
(including, for the avoidance of doubt, the Manager’s Fee and those incurred by
the Security Trustee) and any powers of the Bond Trustee under the Transaction
Documents;

 

(b)                                 (Fees and Expenses): second, in payment of or towards
satisfaction (pari passu and rateably) of fees and other expenses payable to
the Security Trustee, the Bond Trustee, each Paying Agent, the Calculation
Agent, the US$ Registrar, the Chargor and the Receiver’s remuneration;

 

(c)                                  (Class A Bondholders, Fast Prepayment Bondholders, Interest Rate Swap
Counterparties and Class A Currency Swap Counterparties):  third, in or towards satisfaction (pari
passu and rateably) of:

 

(i)                                     the Bondholders’ Secured Moneys owing to the Bondholders of Class A
Bonds and Fast Prepayment Bonds, pari passu and rateably;

 

(ii)                                  the Currency Swap Counterparties’ Secured Moneys owing to the Class
A Currency Swap Counterparties, pari passu and rateably; and

 

(iii)                               the Interest Rate Swap Counterparties’ Secured Moneys owing to the
Interest Rate Swap Counterparties, pari passu and rateably;

 

(d)                                 (Class B Bondholders): fourth, in or towards satisfaction (pari
passu and rateably) of:

 

(i)                                     the Bondholders’ Secured Moneys owing to the Bondholders of Class B
Bonds, pari passu and rateably; and

 

(ii)                                  the Currency Swap Counterparties’ Secured Moneys owing to the Class
B Currency Swap Counterparties, pari passu and rateably.

 

(e)                                  (Surplus): fifth, in payment to the persons entitled thereto.

 

10.3                        Payments
Conditional and Limited

 

The obligations of the Security Trustee and
any Receiver under clause 10.2 are subject to the following:

 

(a)                                  neither the Security Trustee nor the Receiver must make any payments
pursuant to clause 10.2(c) or (d) until and to the extent that the
relevant Secured Moneys has

 

24

 

become due and payable, and until then must
invest all surplus moneys in accordance with clause 10.5; and

 

(b)                                 the liability of the Security Trustee to make any payments or
distribution of moneys under clause 10.2 is limited to making such
payments in the order set out in clause 10.2 and to the extent of funds
available in the Secured Moneys Account.

 

10.4                        Money Received

 

In applying any moneys towards satisfaction
of the Secured Moneys, the Chargor will be credited only with so much of such
moneys available for that purpose as are actually received by the Security
Trustee or the Receiver and not required for whatever reason to be disgorged,
such credit to date from the time of such receipt.

 

10.5                        Power To Invest Amounts Contingently Due

 

Unless expressly prohibited by this Deed,
all moneys received by the Security Trustee following the Charge becoming
enforceable and not required to be immediately applied under any of the
discretions or Powers contained in this Deed will be held by the Security
Trustee in the Secured Moneys Account, or invested as the Security Trustee
thinks appropriate in Authorised Investments on the following terms and
conditions:

 

(a)                                  the Security Trustee may from time to time vary and deal with or
dispose of such investments provided that it does not incur a capital loss in
doing so; and

 

(b)                                 if the Security Trustee invests any amount under this clause, it
must (subject to clause 10.1(b)) ensure that any such Authorised
Investments are rated at least the Designated Rating by each Designated Rating
Agency, and mature such that the Security Trustee is able to distribute the
proceeds of those investments in or towards discharge of the Secured Moneys as
they become due.

 

10.6                        Concerning
Payments

 

If there is any dispute as to whether any
moneys received or payable by the Chargor or the Security Trustee are capital
or income, such dispute will be referred to the Auditor, acting as an expert,
and his determination is final and binding. 
The Security Trustee in making any payment may make such payment against
receipt of such information, invoices or receipts or certificates as it may
reasonably require.

 

11.                               Continuing
security and releases

 

11.1                        Liability
Preserved

 

Notwithstanding any payout figure quoted or
other form of account stated by the Security Trustee, no grant of full or
partial satisfaction of or discharge from this Deed by the Security Trustee
releases the Chargor hereunder until all the Secured Moneys have in fact been
received by the Security Trustee and are not liable for whatever reason to be
disgorged notwithstanding

 

25

 

that such quotation or statement of account
may have arisen from the mistake, negligence, error of law or error of fact of
the Security Trustee.

 

11.2                        Chargor’s
Liability Not Affected

 

This Deed and the liability of the Chargor
under it are not affected or discharged by any of the following:

 

(a)                                  (Indulgence): the granting to the Chargor or to any other
person of any time or other indulgence or consideration;

 

(b)                                 (Delay in Recovery): the Security Trustee failing or neglecting
to recover by the realisation of any other security or otherwise any of the
Secured Moneys;

 

(c)                                  (Laches): any other laches, acquiescence, delay, act, omission
or mistake on the part of the Security Trustee or any other person; or

 

(d)                                 (Release): the release, discharge, abandonment or transfer
whether wholly or partially and with or without consideration of any other
security, judgment or negotiable instrument held from time to time or recovered
by the Security Trustee from or against the Chargor or any other person.

 

11.3                        Waiver by
Chargor

 

The Chargor hereby waives in favour of the
Security Trustee:

 

(a)                                  all rights whatsoever against the Security Trustee and any other
person, estate or assets so far as necessary to give effect to anything in this
Deed;

 

(b)                                 promptness and diligence on the part of the Security Trustee and any
other requirement that the Security Trustee take any action or exhaust any
right against any other person before enforcing this Deed; and

 

(c)                                  all rights inconsistent with the provisions of this Deed including
any rights as to contribution or subrogation which the Chargor might otherwise
be entitled to claim or enforce.

 

11.4                        Discharge
of Securities

 

Upon proof being given to the reasonable
satisfaction of the Security Trustee that all Secured Moneys have been duly
paid and satisfied, or that provision for payment and satisfaction has been
duly made in accordance with the provisions of this Deed, the Security Trustee
must:

 

(a)                                  at the request and cost of the Chargor (including the payment of any
stamp duty) release and discharge the Charged Property from the Charge; and

 

(b)                                 issue a certificate to the Chargor to that effect which certificate
is conclusive in the absence of manifest error.

 

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12.                               Perfection and protection of security

 

12.1                        Further
Assurance

 

The Chargor must from time to time, as and
when required to do so by the Security Trustee, execute all documents and do
all things as the Security Trustee requires for more satisfactorily assuring
the Charged Property to the Security Trustee. 
In particular, the Chargor must execute in favour of the Security
Trustee such legal mortgages, transfers, assignments or other assurances for
all or any part of the Charged Property in such form and containing such powers
and provisions as the Security Trustee requires.

 

12.2                        Power of
Attorney

 

By way of security, the Chargor appoints
the Security Trustee, each director and manager from time to time of the
Security Trustee, and any Receiver appointed under this Charge, severally, as
attorney of the Chargor as follows:

 

(a)                                  (Powers): Each such attorney has power to:

 

(i)                                     appoint (and remove at will) at any time any person(s) as a
substitute(s) for an attorney or attorneys;

 

(ii)                                  do all acts which ought to be done by the Chargor under the Charge;

 

(iii)                               take all action which is in the opinion of the Security Trustee or
the attorney(s) necessary or expedient to secure or perfect the Charge,
including the power to execute legal mortgages, fixed charges, transfers,
assignments and other assurances in favour of the Security Trustee, and to
ensure the prompt stamping and registration of any of them;

 

(iv)                              demand, sue for, recover and receive all or any part(s) of the
Charged Property from any person, in the name of and on behalf of the Chargor,
or in the name of the Security Trustee or an attorney appointed under this
Charge;

 

(v)                                 give effective receipts for all or any part of the Charged Property
to any person;

 

(vi)                              take further action and to execute further instruments which are, or
are in the opinion of the Security Trustee, either necessary to more
satisfactorily secure the payment of the Secured Moneys or are expedient in
relation to the Charged Property; and

 

(vii)                           take any action which the attorney reasonably considers expedient or
necessary to remedy an Event of Default or Potential Event of Default.

 

(b)                                 (Ratification): The Chargor ratifies and confirms now and for
the future all actions lawfully undertaken by or on behalf of its attorney
under this Power of Attorney.

 

27

 

(c)                                  (Survives termination): This Power of Attorney continues in
force until all actions taken under it have been completed, notwithstanding the
determination of this Deed or any of the agreements or arrangements to which it
refers.

 

(d)                                 (Irrevocable): This Power of Attorney is irrevocable.

 

13.                               Security
provisions

 

13.1                        Statutory
Powers

 

To the extent not prohibited by law, the
Security Trustee is not required to give any notice to any person or allow the
expiration of any time to any person before enforcing this Deed or exercising
any Power.

 

13.2                        Continuing
Security

 

This Deed is a continuing security despite
any settlement of account or any other thing until the Charge is fully and
finally discharged in accordance with this Deed.

 

13.3                        Continuing
Indemnities

 

(a)                                  Each indemnity of the Chargor contained in this Deed or in any
Secured Document is a continuing obligation of the Chargor, notwithstanding any
settlement of account or the occurrence of any other thing, and remains in full
force and effect until all Secured Moneys have been paid in full and the Charge
has been fully and finally discharged in accordance with this Deed.

 

(b)                                 Each indemnity of the Chargor in this Deed is an additional,
separate and independent obligation of the Chargor and no one indemnity limits
the generality of any other indemnity.

 

13.4                        No Merger
of Security

 

Nothing in this Deed merges, extinguishes,
postpones, lessens or otherwise prejudicially affects any other right, power or
remedy arising by law or under any other Secured Document.

 

13.5                        Moratorium
Legislation

 

To the fullest extent permitted by law, the
provisions of all Statutes operating directly or indirectly to lessen or affect
in favour of the Chargor any obligation under this Deed, or to delay or
otherwise prevent or prejudicially affect the exercise of any Power, are hereby
expressly waived, negatived and excluded.

 

13.6                        Conflict

 

Where any Power of the Security Trustee,
Receiver or Attorney under this Deed is inconsistent with the powers conferred
by applicable law then, to the extent not prohibited by that law, the

 

28

 

powers conferred by applicable law are
deemed to be negated or varied to the extent of the inconsistency.

 

13.7                        Consent
of Security Trustee

 

Whenever the doing of anything by the
Chargor is dependent upon the consent or approval of the Security Trustee, the
Security Trustee, may withhold its consent or approval or give it conditionally
or unconditionally in its absolute discretion unless expressly stated
otherwise.

 

13.8                        Settlement
Conditional

 

Any settlement or discharge between the
Chargor and the Security Trustee is conditional on any security or payment
given or made to the Security Trustee by the Chargor or any other person in
relation to the Secured Moneys not being avoided, repaid or reduced by virtue
of any law relating to insolvency and any provision of any agreement,
arrangement or scheme, formal or informal, relating to the administration of
any assets of any person.  If the
security or payment is avoided, repaid or reduced, the Security Trustee is
entitled to recover the value or amount of such security or payment avoided,
repaid or reduced from the Chargor subsequently as if that settlement or
discharge had not occurred.

 

13.9                        Remedies
Cumulative

 

The rights and remedies conferred by this
Deed on the Security Trustee and the Receiver are cumulative and in addition to
all other rights or remedies available to the Security Trustee or the Receiver
by Statute, by general law, or by virtue of any other Secured Document.

 

13.10                 Chargor To
Bear Cost

 

Anything which must be done by the Chargor
under this Deed, whether or not at the request of the Security Trustee, is to
be done at the cost of the Chargor.

 

13.11                 Certificates
Conclusive

 

A certificate of the Security Trustee as to
the amount of the Secured Moneys at any time is conclusive in the absence of
manifest error.

 

13.12                 Written waiver, consent and approval

 

Any waiver, consent or approval given by
the Security Trustee under this Deed will only be effective and only binds the
Security Trustee if it is given in writing or given verbally and subsequently
confirmed in writing and executed by the Security Trustee or on its behalf by
an officer for the time being of the Security Trustee.

 

14.                               The
security trustee

 

14.1                        Covenants
of Security Trustee

 

Until it retires or is removed from office
as Security Trustee, the Security Trustee must:

 

29

 

(a)                                  (Power): act continuously as trustee of the Security Trust;

 

(b)                                 (Performance): act honestly and in good faith in the
performance of its duties and the exercise of any discretions having regard to
the rights and interests of the Secured Creditors;

 

(c)                                  (No Commingling): keep the Charged Property separate from all
other assets, investments and other property of the Security Trustee or any
other person, including, but not limited to, assets, investments or other
property vested in or held by the Security Trustee as trustee of trusts other
than the Security Trust.  Nothing in
this clause 14.1(c) prohibits the Security Trustee investing any moneys
received by it in accordance with clause 10.5; and

 

(d)                                 (Notice to Dealers): promptly upon becoming aware of the
occurrence of any event which, pursuant to the Secured Documents, has the
effect of obliging the Chargor not to issue Bonds, give notice to each person
which the Trust Manager has notified the Security Trustee to be a dealer or
underwriter in respect of the Bonds, to each Paying Agent and to each
Designated Rating Agency of such event.

 

14.2                        Protection
of Security Trustee

 

In addition to any protections under any
applicable Statute or contained in this Deed:

 

(a)                                  (Reliance on Resolutions): the Security Trustee is not
responsible for acting or relying upon any resolution purporting to have been
passed at any meeting of the Bondholders in respect of which proper minutes
have been made and which the Security Trustee believes in good faith to have
been properly passed even though it afterwards appears that such resolution is
not binding or valid by reason of a defect in the convening of, or proceedings
at, the meeting or otherwise howsoever;

 

(b)                                 (Enquiry into title) the Security Trustee is not bound to
enquire into, or liable for:

 

(i)                                     any defects or failure in the title of the Chargor to the Charged
Property;

 

(ii)                                  any insufficiency of the Charged Property as security for the
Secured Moneys; or

 

(iii)                               any ineffectiveness or unenforceability of the Charge,

 

whether any such matter might have been
discovered upon enquiry and remedied or not except (in the case only of the
matters referred to in sub-paragraphs (ii) and (iii)) to the extent that such
insufficiency, ineffectiveness or unenforceability is caused by the Security
Trustee’s fraud, negligence or wilful default, or a failure by the Security
Trustee to comply with the obligations imposed on it by law;

 

(c)                                  (Monitoring compliance): the Security Trustee is not bound to
monitor, investigate or otherwise inform itself as to the Chargor’s compliance
with the Secured Documents except as expressly provided in this Deed;

 

30

 

(d)                                 (Discretion to Enforce): notwithstanding any actual or
constructive notice which the Security Trustee has of the occurrence of an
Event of Default, the Security Trustee may exercise or refrain from exercising
its Powers in relation to that Event of Default as it sees fit in its absolute
discretion unless in any such case:

 

(i)                                     the Security Trustee is directed as to the manner in which it should
exercise that Power pursuant to an Extraordinary Resolution or pursuant to a
notice in writing in accordance with clause 6.2(b);

 

(ii)                                  the Security Trustee’s liability is limited in a manner consistent
with clause 8.9; and

 

(iii)                               the Security Trustee is indemnified to its satisfaction against all
actions, proceedings, claims and demands to which the Security Trustee may
render itself liable and all costs, charges and expenses which the Security
Trustee may thereby incur; and

 

(e)                                  (No Obligation to Inform): except where expressly provided in
this Deed, nothing in this Deed imposes on the Security Trustee an obligation
to inform the Secured Creditors of the occurrence of an Event of Default or
Potential Event of Default.

 

14.3                        Supplemental Powers of Security Trustee

 

In addition to the provisions of any
applicable Statute and the other Powers contained in this Deed:

 

(a)                                  (Act on Advice): the Security Trustee may, without liability
for loss, obtain, accept and act on or decline and elect not to act on:

 

(i)                                     the opinion or advice of any professional adviser, agent, broker,
auctioneer or other expert selected by the Security Trustee with due care,
despite the same being subsequently found to contain some error or not be
authentic, if the Security Trustee acted, accepted or declined in good faith;
or

 

(ii)                                  a certificate signed by any two directors on behalf of the Chargor
or the Trust Manager as to any fact or matter prima facie within the knowledge
of the Chargor or the Trust Manager, as sufficient evidence of such fact;

 

(b)                                 (Absolute Discretion): except as expressly provided otherwise
in this Deed, the Security Trustee has absolute discretion as to the exercise
of its Powers and performance of its duties (including, without limitation, the
exercise of any Powers where it reasonably believes that it is necessary to do
so in order to protect the interests of the Secured Creditors (as contemplated
by clause 6.5)) and, as to the conduct of any action, proceeding or claim and,
provided it has acted with reasonable care and diligence, it will not be
responsible for any loss, damages or expenses that may result from the exercise
or non-exercise of its Powers or performance of its duties;

 

31

 

(c)                                  (Delegation and Agents): the Security Trustee, whenever it
believes in good faith that it is in the best interests of the Secured
Creditors to do so, may:

 

(i)                                     act through agents;

 

(ii)                                  authorise such person as it thinks fit to act as its representative
at any meeting; or

 

(iii)                               delegate its powers, discretions, duties or obligations to any
person as provided, whether expressly or by implication, in any of the Secured
Documents, and no person dealing with any such agent or delegate is bound to
enquire as to the regularity or authority of such agent or delegate or as to
whether it has the requisite power;

 

(d)                                 (Convene Meetings): the Security Trustee may at any time in
accordance with the Meetings Procedures convene a meeting or meetings of
Bondholders for any purpose which the Security Trustee considers desirable;

 

(e)                                  (Represent Secured Creditors): the Security Trustee may at any
time of the Security Trustee’s own volition, or pursuant to any directions, or
in accordance with any policy given or indicated by any meeting of Bondholders,
represent the Secured Creditors generally in:

 

(i)                                     any investigation, negotiation, action, transaction or proceeding
relating to or affecting the interests of the Secured Creditors; or

 

(ii)                                  the enforcement of the rights of the Secured Creditors or the
Security Trustee;

 

(f)                                    (Discretion in Representing Secured Creditors): except as
provided in this Deed, in representing the Secured Creditors, the Security
Trustee has an absolute discretion to act or to refrain from acting and to
commence, prosecute, vary or discontinue, abandon, waive or compromise any
action, proceeding or claim on any terms or conditions as it thinks fit;

 

(g)                                 (Apply to the Court for Direction): the Security Trustee may
apply to the Court for directions in relation to any question, and assent to
and approve of or oppose any application to the Court made by any Secured
Creditor; and

 

(h)                                 (Power to Determine): except as expressly otherwise provided in
this Deed, the Security Trustee has full power as between itself and the
Secured Creditors to determine all questions and matters of doubt arising in
relation to any of the provisions of this Deed and every such determination
shall be conclusive and binding on the Secured Creditors except in the case of
a manifest error.

 

14.4                        Remuneration
and Expenses

 

The Security Trustee agrees that:

 

32

 

(a)                                  (Fees): its sole remuneration for undertaking its obligations
under this Deed is the payment of the fees agreed between the Security Trustee
and the Trust Manager on behalf of the Chargor on or before the date of this
Deed;

 

(b)                                 (No claim against Chargor): it has no claim against the Chargor
for payment of expenses other than for expenses relating to enforcement of the
Charge pursuant to clause 10.2; and

 

(c)                                  (Meet own ordinary costs and expenses): it will pay from its
own funds any costs and expenses incurred by it in performing its obligations
and exercising its rights in the ordinary course of its duties under this Deed
but is not obliged to undertake legal proceedings or other extraordinary action
not in the ordinary course of its duties unless it has been indemnified to its
reasonable satisfaction for liabilities, costs and expenses incurred and for
reasonable remuneration for the services provided by it in respect of those
legal proceedings or that other extraordinary action.

 

14.5                        Conflicts

 

Provided it acts in good faith, nothing in
this Deed prevents the Security Trustee or any Related Body Corporate or
Associate (as defined in Part 1.2 Division 2 of the Corporations Act) (all
being included in this clause in references to the Security Trustee) from:

 

(a)                                  subscribing for, buying or selling Bonds;

 

(b)                                 in the ordinary course of its business contracting or acting in any
capacity as representative or agent or otherwise or entering into any
financial, banking, development, insurance, agency, broking or other
transaction with the Chargor, the Trust Manager or any Secured Creditor;

 

(c)                                  providing any advice or services to the Chargor, the Trust Manager
or any Secured Creditor; or

 

(d)                                 being interested in any such contract or transaction.

 

The Security Trustee shall not be in any
way liable to account to any Chargor, the Trust Manager, any Secured Creditor
or any other person for any profits or benefits made or derived from or in
connection with any such transaction.

 

14.6                        Reliance
on Certificates

 

The Security Trustee shall not incur any
liability in respect of any action taken or thing suffered by it in reliance
upon any document (including, for example, any notice, resolution, direction,
consent, certificate, receipt or statement) given to or served on it for the
purposes of or pursuant to this Deed which it reasonably believes to be
genuine, and to be signed by persons authorised to do so and having power to
bind the person on whose behalf the document is or purports to be given.

 

33

 

14.7                        No Liability

 

If the Security Trustee incurs any
liability to any person as a consequence of having relied, in accordance with
clause 14.6, upon a document which was forged or does not bind the person on
whose behalf it was purportedly given, the Security Trustee is entitled to
reimbursement for the amount of such loss from the Security Trust Fund.

 

14.8                        Keep Records

 

The Security Trustee must:

 

(a)                                  (Keep records): keep and maintain proper and accurate books,
records and accounts in regard to its duties under this Deed;

 

(b)                                 (Inspection): make available during normal office hours and
upon reasonable request to each of the Auditor, the Chargor and the Trust
Manager, for inspection and copying, any of those books, records and accounts;
and

 

(c)                                  (Extracts): deliver to the Auditor such extracts or copies of
those books, records and accounts and such other information as it may
reasonably require.

 

14.9                        Removal

 

If:

 

(a)                                  (Default): the Security Trustee defaults in:

 

(i)                                     the payment of any moneys required to be paid by the Security
Trustee; or

 

(ii)                                  the observance or performance of any of its obligations under this
Deed (and, if that default is capable of rectification, it is not rectified
within 5 Business Days of its occurrence);

 

(b)                                 (Insolvent): an Event of Insolvency occurs in relation to the
Security Trustee; or

 

(c)                                  (Extraordinary Resolution): an Extraordinary Resolution is
passed that the Security Trustee be removed from office,

 

the Trust Manager may (or in the case of
clause 14.9(c), must), subject to clause 14.11, by at least 15 Business
Days’ written notice to the Security Trustee remove the Security Trustee from
office.

 

14.10                 Retirement
of Security Trustee

 

The Security Trustee may, subject to clause
14.11, retire at any time upon giving not less than 4 months notice in writing
(or such shorter period as the parties may agree) to the Chargor and each
Secured Creditor.

 

34

 

14.11                 Removal or Retirement not Effective

 

No removal or retirement of the Security
Trustee under this clause 14 is effective unless and until a new Security
Trustee has accepted the office of Security Trustee pursuant to clause 14.12.

 

14.12                 Appointment of New Security Trustee

 

Subject to clauses 14.9(c), 14.22 and
16.2(d), the power of appointing a new Security Trustee is vested in the Trust
Manager.

 

14.13                 Funds
to be Vested in New Trustee

 

Upon retiring or being removed from office,
the Security Trustee (the Outgoing Security Trustee) must execute all documents
and do all things necessary to vest the Security Trust Fund or cause it to be
vested, in the person appointed as the successor Security Trustee (the Incoming Security Trustee).

 

14.14                 Release of Outgoing Security Trustee

 

Upon retirement or removal, the Outgoing
Security Trustee shall have no further obligations under this Deed, but
retirement or removal will not affect any of the rights, obligations or
liabilities of the Outgoing Security Trustee accrued or arising before
retirement or removal.

 

14.15                 Incoming Security Trustee to Execute Deed

 

The Incoming Security Trustee must execute
all documents as the Chargor requires to:

 

(a)                                  assume with effect from the date its appointment becomes effective,
all of the rights, powers, discretions and obligations of the Security Trustee
under this Deed as if the Incoming Security Trustee had originally been a party
to this Deed as the Security Trustee; and

 

(b)                                 indemnify the Outgoing Security Trustee for all liabilities and
expenses incurred by the Outgoing Security Trustee for which it is entitled to
be indemnified out of the Security Trust Fund and which have not been recouped
by it, provided that the liability of the Incoming Security Trustee under such
indemnity shall be limited to the same extent provided for in clause 1.4 and
any payment shall rank in the same priority pursuant to clause 1.4 as the
corresponding liability for which the Outgoing Security Trustee claims such
indemnification.

 

14.16                 Settlement Amounts Payable to Outgoing Security Trustee

 

The Chargor or the Trust Manager may:

 

(a)                                  settle with the Outgoing Security Trustee the amount of any sums
payable by the Outgoing Security Trustee to the Chargor, the Trust Manager or
the Incoming Security Trustee; and

 

(b)                                 give or accept from the Outgoing Security Trustee a discharge in
respect thereof.

 

35

 

Any such settlement or discharge shall
(except in the case of any fraud, negligence or wilful default on the part of
the Outgoing Security Trustee or its officers, employees, agents and delegates)
be conclusive and binding upon all persons.

 

14.17                 Outgoing Security Trustee to Retain Lien

 

Notwithstanding the retirement or removal
of the Outgoing Security Trustee and the indemnity in favour of the Outgoing
Security Trustee by the Incoming Security Trustee as contemplated by clause 14.15,
the Outgoing Security Trustee will retain a lien over the Security Trust Fund
to meet claims of any creditors of the Outgoing Security Trustee as trustee of
the Security Trust Fund, to the extent that the claims of those creditors are
not properly and duly satisfied by the Incoming Security Trustee.

 

14.18                 Delivery
of Documents

 

The Outgoing Security Trustee must
immediately upon termination of its appointment becoming effective deliver to
the Incoming Security Trustee (or at its direction) all books, documents,
records and property relating to the Security Trust Fund.  The Outgoing Security Trustee is entitled to
take, and keep copies of such books, documents and records.  The Incoming Security Trustee must produce
the originals of such books, documents and records in its possession upon the
giving of reasonable written notice by the Outgoing Security Trustee.

 

14.19                 Notice to Secured Creditors of New Security Trustee

 

The Incoming Security Trustee or the
Chargor must give notice to the Secured Creditors as soon as practicable
following the appointment of the Incoming Security Trustee.

 

14.20                 Additional Security Trustee’s Powers

 

The powers conferred by this Deed upon the
Security Trustee are in addition to any powers which may from time to time be
vested in trustees by law and to any powers which may from time to time be
vested in the Security Trustee as a Secured Creditor.

 

14.21                 Notification

 

(a)                                  The Security Trustee must promptly notify each Designated Rating
Agency, the Bond Trustee and each Secured Creditor (other than the US$
Bondholders) of:

 

(i)                                     the occurrence of an Event of Default (upon the Security Trustee
receiving actual notice of same); or

 

(ii)                                  the giving of a notice under clause 6.2; or

 

(iii)                               any proposal to vary, replace or terminate this Deed or to replace
the Security Trustee.

 

(b)                                 The Bond Trustee must promptly notify each US$ Bondholder of the
occurrence of an Event of Default (upon the Bond Trustee receiving actual
notice of the same).

 

36

 

14.22                 No Ratings
Downgrade

 

The Trust Manager must exercise the power
of appointment conferred by clause 14.12 in such a way that the appointment of
the Incoming Security Trustee does not cause the credit rating assigned by each
of the Designated Rating Agencies to Bonds issued prior to, or to be issued by
the Chargor following, such appointment to be less than the relevant Designated
Rating, qualified or withdrawn.

 

15.                               Amendment

 

15.1                        Amendment
by Security Trustee

 

Subject to clause 15.2, the Security
Trustee may by way of supplemental deed made with the Chargor, the Trust
Manager and the Bond Trustee vary or amend this Deed (including this
clause 15), the Bond Trust Deed or any Condition so long as such variation
or amendment is:

 

(a)                                  to correct a manifest error or ambiguity or is of a formal,
technical or administrative nature only;

 

(b)                                 in the opinion of the Security Trustee necessary to comply with the
provisions of any existing or proposed statute or regulation or with the
requirements of any Government Body;

 

(c)                                  in the opinion of the Security Trustee appropriate or expedient as a
consequence of an amendment or proposed amendment to any statute or regulation
or altered requirements of any Government Body and is not prejudicial to the
interests of any Secured Creditor;

 

(d)                                 in the reasonable opinion of the Security Trustee not prejudicial to
the interests of any Secured Creditor; or

 

(e)                                  approved by an Extraordinary Resolution.

 

15.2                        Certain Provisions Not to be Varied

 

The Security Trustee may not vary or amend
clauses 6.1, 6.2, 10.2, this clause 15 or Conditions 4.4, 4.5, 5.1 or 5.2
(except pursuant to paragraph (b) of clause 15.1) without the prior approval of
an Extraordinary Resolution and the consent of all Currency Swap Counterparties
and Interest Rate Swap Counterparties.

 

15.3                        Copy of Amendments to Secured Creditors

 

The Security Trustee must upon request by:

 

(a)                                  a Secured Creditor; or

 

(b)                                 the Bond Trustee on behalf of a US$ Bondholder,

 

make available for inspection and copying
by any such Secured Creditor or the Bond Trustee (as the case may be) at its
offices on reasonable notice and during normal business hours a copy

 

37

 

of the supplemental deed effecting any
variation or amendment to this Deed, the Bond Trust Deed or any Condition.

 

15.4                        Copy of Amendments in Advance to Designated Rating Agencies

 

The Trust Manager on behalf of the Security
Trustee must provide a copy of any proposed variation or amendment to this
Deed, the Bond Trust Deed or a Condition which has been reviewed by the
Security Trustee, to each Designated Rating Agency at least 10 Business Days
(or such other period as may from time to time be agreed between the Security
Trustee and the Designated Rating Agency) prior to the same taking effect.

 

15.5                        Evidence
of Variation

 

If a variation or amendment to this Deed,
the Bond Trust Deed or a Condition is made pursuant to this clause 15, any
person may rely upon a certificate from the Security Trustee describing the variation
and the certificate is deemed to be conclusive evidence of the variation or
amendment.

 

16.                               Meetings

 

The Meetings Procedures apply to all
meetings and resolutions of Bondholders.

 

17.                               Bond Trustee

 

17.1                        Capacity

 

(a)                                  The Bond Trustee is a party to this Deed in its capacity as trustee
for the US$ Bondholders from time to time under the Bond Trust Deed.

 

(b)                                 Notwithstanding any other provision of this Deed, this Deed becomes
effective against the Bond Trustee only upon execution of the Bond Trust Deed.

 

(c)                                  Notwithstanding any other provision of this Deed (except for
paragraph (b)) or any other Transaction Document, the Bond Trustee’s rights and
obligations under this Deed only apply to the US$ Bonds and the Bond Trustee is
not in any way responsible for the Fast Prepayment Bonds.

 

17.2                        Exercise of
rights

 

Except as otherwise provided in this Deed
and in the Bond Trust Deed:

 

(a)                                  the rights, remedies and discretions of the US$ Bondholders under
this Deed (including all rights to vote or give instructions to the Security
Trustee and to enforce any undertaking or warranty under this Deed) may only be
exercised by the Bond Trustee on behalf of the US$ Bondholders in accordance
with the Bond Trust Deed; and

 

38

 

(b)                                 the US$ Bondholders may only exercise enforcement rights in respect
of the Charged Property through the Bond Trustee and only in accordance with
this Deed and the Bond Trust Deed.

 

17.3                        Instructions
or directions

 

The Security Trustee may rely on any
instructions or directions given to it by the Bond Trustee as being given on
behalf of all US$ Bondholders of a particular Class from time to time and need
not inquire whether the Bond Trustee or the US$ Bondholders of that Class from
time to time have complied with any requirements under the Bond Trust Deed or
as to the reasonableness or otherwise of the instructions or directions given
to it by the Bond Trustee.

 

17.4                        Payments

 

Any payment to be made by the Chargor or
the Security Trustee to a US$ Bondholder under this Deed may be made to the
Bond Trustee or a Paying Agent on behalf of that US$ Bondholder and any such
payment is a good discharge to the Chargor or the Security Trustee to the
extent of the same.

 

18.                               Notices

 

18.1                        Notices
Generally

 

Subject to clause 18.2, every Notice:

 

(a)                                  must be in writing in order to be valid;

 

(b)                                 must be deemed to have been duly served, given or made in relation
to a party if it is:

 

(i)                                     delivered to the address of that party set out in paragraph (e) (or
at such other address as may be notified in writing by that party to the other
party from time to time); or

 

(ii)                                  posted by prepaid registered post to such address; or

 

(iii)                               sent by facsimile to the facsimile number set out in
sub-paragraph (e) (or to such other number as may be notified in writing
by that party to the other party from time to time);

 

(c)                                  shall be sufficient if executed by the party giving, serving or
making the same or on its behalf by any two then Authorised Signatories of such
party;

 

(d)                                 shall be deemed to be given, served or made:

 

(i)                                     (in the case of prepaid registered post) within 2 Business Days
after posting;

 

(ii)                                  (in the case of facsimile) on receipt of a transmission report
confirming successful transmission; and

 

(iii)                               (in the case of delivery by hand) on delivery;

 

39

 

(e)                                  the addresses and facsimile numbers for service of notices as
referred to in sub-paragraph (b) of this clause are as follows:

 

The Chargor

 

35 Clarence Street

 

SYDNEY 
NSW  2000

 

By fax: (02) 8295 8675

 

Attention: Senior Manager, Securitisation

 

The Trust Manager

 

Level 6

 

12 Castlereagh Street

 

SYDNEY 
NSW  2000

 

By fax: (02) 9225 0864

 

Attention: Financial Controller

 

The Security Trustee

 

35 Clarence Street

 

SYDNEY 
NSW  2000

 

By fax: (02) 8295 8675

 

Attention: Senior Manager, Securitisation

 

The Bond Trustee

 

The Bank of New York

 

101 Barclay Street, Floor 21 West

 

NEW YORK 
NY  10286  USA

 

By fax: (212) 815 5915

 

Attention: Global Structured Finance Unit

 

18.2                        Notices
to Secured Creditors

 

A notice, request or other communication by
the Security Trustee to:

 

(a)                                  US$ Bondholders, shall be deemed to be duly given if given to the
Bond Trustee in accordance with clause 18.1;

 

(b)                                 Fast Prepayment Bondholders, shall be deemed to be duly given if
given in accordance with the Conditions; and

 

(c)                                  any other Secured Creditor, must be given in accordance with the
Secured Document under which the Secured Moneys outstanding to that Secured
Creditor is or may become owing.

 

40

 

18.3                        Notices to Designated Rating Agencies

 

The Security Trustee must provide a copy of
each Notice to each Secured Creditor or the Bond Trustee (on behalf of the US$
Bondholders) and to each Designated Rating Agency as from time to time agreed
in writing with the relevant Designated Rating Agency.

 

19.                               Governing
law and jurisdiction

 

19.1                        Governing Law

 

This Deed is governed by and construed in
accordance with the laws of New South Wales.

 

19.2                        Jurisdiction

 

(a)                                  The Chargor, the Bond Trustee, the Security Trustee and the Secured
Creditors each irrevocably submits to and accepts generally and unconditionally
the non-exclusive jurisdiction of the Courts and appellate Courts of New South
Wales with respect to any legal action or proceedings which may be brought at
any time relating in any way to this Deed.

 

(b)                                 The Chargor, the Bond Trustee, the Security Trustee and the Secured
Creditors each irrevocably waives any objection it may now or in the future
have to the venue of any such action or proceedings and any claim it may now or
in the future have that any such action or proceedings have been brought in an
inconvenient forum.

 

20.                               General

 

20.1                        Severability
of Provisions

 

Any provision of this Deed which is
illegal, void or unenforceable will be ineffective to the extent only of that
illegality, voidness or unenforceability without invalidating the remaining
provisions.

 

20.2                        Counterparts

 

This Deed may be executed in a number of
counterparts.  Each counterpart is to be
considered an original and all such counterparts together constitute one and
the same instrument.

 

41

 

Executed as a deed.

 

 

	
  Signed  Sealed and Delivered for Permanent

  	
   

  	
   

  
	
  Custodians Limited by its attorneys in
  the 

  	
   

  	
   

  
	
  presence of:

  	
   

  	
  Attorney Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
  Attorney Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  

 

 

	
  Signed Sealed and Delivered for Australian

  Securitisation Management Pty Limited by

  its attorney in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
  Attorney Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  

 

 

	
  Signed  Sealed and Delivered for Permanent

  	
   

  	
   

  
	
  Registry Limited by its attorneys in
  the 

  	
   

  	
   

  
	
  presence of:

  	
   

  	
  Attorney Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
  Attorney Signature

  

 

42

 

 

	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  

 

 

	
  Executed as a deed by The Bank
  of New

  York in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  

 

43Exhibit 4.5

 

Bond Trust Deed

 

 

Permanent
Custodians Limited

 

Australian
Securitisation Management Pty Limited

 

Australian
Mortgage Securities Ltd

 

The
Bank of New York

 

Permanent
Registry Limited

 

 

ARMS II Global Fund 2

 

 

The
Chifley Tower

2
Chifley Square

Sydney  NSW 
2000

Tel  61 2 9230 4000

Fax  61 2 9230 5333

www.aar.com.au

 

 

© Copyright Allens Arthur Robinson 2003

 

 

 

	
  Bond Trust
  Deed

  	
   

  	
  

  

 

Table of Contents

 

	
  1.

  	
  Definitions and
  interpretation

  
	
   

  	
  1.1

  	
  Definitions

  
	
   

  	
  1.2

  	
  Master Trust Deed
  definitions

  
	
   

  	
  1.3

  	
  Interpretation

  
	
   

  	
  1.4

  	
  Status of
  this Deed

  
	
   

  	
  1.5

  	
  Liability
  of Issuer

  
	
   

  	
  1.6

  	
  Opinion of
  Counsel

  
	
   

  	
  1.7

  	
  Knowledge of Bond Trustee

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Appointment of Bond Trustee

  
	
   

  	
  2.1

  	
  The Bond
  Trustee

  
	
   

  	
  2.2

  	
  Benefit of
  Trusts

  
	
   

  	
  2.3

  	
  Duration of
  Trust

  
	
   

  	
  2.4

  	
  Responsibility of Bond
  Trustee

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Covenant
  to pay

  
	
   

  	
  3.1

  	
  Covenant to pay

  
	
   

  	
  3.2

  	
  Discharge
  by payment

  
	
   

  	
  3.3

  	
  Bond
  Trustee’s requirements following an Event of Default

  
	
   

  	
  3.4

  	
  Discharge

  
	
   

  	
   

  	
   

  
	
  4.

  	
  The Bonds

  
	
   

  	
  4.1

  	
  Designation
  of Bonds

  
	
   

  	
  4.2

  	
  Classes of
  Bonds

  
	
   

  	
  4.3

  	
  Amount of
  the Bonds

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Form and issue of US$
  Bonds

  
	
   

  	
  5.1

  	
  Form
  and Denomination

  
	
   

  	
  5.2

  	
  Issue
  of Global Bond

  
	
   

  	
  5.3

  	
  Effect
  of registration

  
	
   

  	
  5.4

  	
  Form of
  Global Bond

  
	
   

  	
  5.5

  	
  Procedures
  for exchange

  
	
   

  	
  5.6

  	
  Dealings with US$
  Bondholders

  
	
   

  	
  5.7

  	
  Preparation
  and Delivery of Definitive Bonds

  
	
   

  	
  5.8

  	
  Notification
  of issue of Definitive Bonds

  
	
   

  	
  5.9

  	
  Issue of Definitive Bonds

  
	
   

  	
  5.10

  	
  Registration of
  Definitive Bonds

  
	
   

  	
  5.11

  	
  Form of the Definitive
  Bonds

  
	
   

  	
  5.12

  	
  Failure
  by the Issuer to issue Definitive Bonds

  
	
   

  	
  5.13

  	
  US Tax
  Treatment

  
	
   

  	
  5.14

  	
  Covenant
  of Compliance

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Cancellation of US$ Bonds

  
	
   

  	
  6.1

  	
  Cancellation

  
	
   

  	
  6.2

  	
  Records

  
	
   

  	
  6.3

  	
  US$ Register and US$
  Registrar

  

 

i

 

	
  7.

  	
  Currency
  indemnity and payment of duties and Taxes on the Bonds

  
	
   

  	
  7.1

  	
  Currency
  Indemnity

  
	
   

  	
  7.2

  	
  Payment of
  duties and Taxes on the Bonds

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Form and issue
  of Fast Prepayment Bonds

  
	
   

  	
  8.1

  	
  Form and
  denomination

  
	
   

  	
  8.2

  	
  Action
  following Issue

  
	
   

  	
  8.3

  	
  Effect of
  registration

  
	
   

  	
  8.4

  	
  Location of Fast
  Prepayment Bonds

  
	
   

  	
  8.5

  	
  Restriction
  on Issues

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Transfers of Fast
  Prepayment Bonds

  
	
   

  	
  9.1

  	
  No
  Restrictions on Transfer of Fast Prepayment Bonds

  
	
   

  	
  9.2

  	
  Selling restriction

  
	
   

  	
  9.3

  	
  Form of
  Transfer

  
	
   

  	
  9.4

  	
  Registration
  of Transferee as Bondholder

  
	
   

  	
  9.5

  	
  A$
  Registrar entitled to refuse to register Transfer and Acceptance Form

  
	
   

  	
  9.6

  	
  Notice of refusal to
  Register

  
	
   

  	
  9.7

  	
  No fee for
  Registration of a Bond Transfer

  
	
   

  	
  9.8

  	
  Taking Effect of Bond
  Transfers

  
	
   

  	
  9.9

  	
  Transmission of
  entitlements

  
	
   

  	
  9.10

  	
  Marking
  of Transfers

  
	
   

  	
  9.11

  	
  Specimen
  signatures

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Registration Confirmations

  
	
   

  	
  10.1

  	
  Issue of
  Registration Confirmation

  
	
   

  	
  10.2

  	
  No
  Certificate of Title

  
	
   

  	
  10.3

  	
  Joint holdings

  
	
   

  	
   

  	
   

  
	
  11.

  	
  The Register

  
	
   

  	
  11.1

  	
  Details to be kept
  on the Register

  
	
   

  	
  11.2

  	
  Place of
  keeping Registers, copies and access

  
	
   

  	
  11.3

  	
  A$ Branch
  Registers

  
	
   

  	
  11.4

  	
  Details on Registers
  Conclusive

  
	
   

  	
  11.5

  	
  Closing
  of Registers

  
	
   

  	
  11.6

  	
  Alteration of
  details on Registers

  
	
   

  	
  11.7

  	
  Rectification of Registers

  
	
   

  	
  11.8

  	
  Issuer may appoint
  Registrars

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Covenants by
  the Issuer and Trust Manager

  
	
   

  	
  12.1

  	
  Covenants by
  the Issuer and Trust Manager

  
	
   

  	
  12.2

  	
  Covenant by the Trust
  Manager

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Remuneration and expenses

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Removal and
  retirement of Bond Trustee

  
	
   

  	
  14.1

  	
  Removal

  
	
   

  	
  14.2

  	
  Retirement of Bond Trustee

  
	
   

  	
  14.3

  	
  Removal or retirement
  not effective

  
	
   

  	
  14.4

  	
  Appointment of new Bond
  Trustee

  
	
   

  	
  14.5

  	
  Bond
  Trust Fund to be vested in new Bond Trustee

  

 

ii

 

	
   

  	
  14.6

  	
  Release of outgoing
  Bond Trustee

  
	
   

  	
  14.7

  	
  Incoming
  Bond Trustee to execute documents

  
	
   

  	
  14.8

  	
  Settlement
  amounts payable to outgoing Bond Trustee

  
	
   

  	
  14.9

  	
  Outgoing Bond
  Trustee to retain lien

  
	
   

  	
  14.10

  	
  Delivery
  of documents

  
	
   

  	
  14.11

  	
  Notice to
  Bondholders of new Bond Trustee

  
	
   

  	
  14.12

  	
  No
  ratings downgrade

  
	
   

  	
  14.13

  	
  Eligibility;
  Disqualification

  
	
   

  	
  14.14

  	
  Requirement for Bond
  Trustee

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Substitution of Issuer

  
	
   

  	
  15.1

  	
  Incoming Trustee to be
  Issuer

  
	
   

  	
  15.2

  	
  Effect
  of Substitution

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Amendment

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Bondholders’ Lists and
  Reports

  
	
   

  	
  17.1

  	
  Provision
  of information

  
	
   

  	
  17.2

  	
  Preservation
  of Information; Communications to US$ Bondholders

  
	
   

  	
  17.3

  	
  Reports
  by Bond Trustee

  
	
   

  	
  17.4

  	
  Reports by
  Issuer

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Trust Indenture
  Act - Miscellaneous

  
	
   

  	
  18.1

  	
  Compliance
  Certificates and Opinions, etc

  
	
   

  	
  18.2

  	
  Exclusion
  of section 316

  
	
   

  	
  18.3

  	
  Unconditional
  Rights of US$ Bondholders to Receive Principal and Interest

  
	
   

  	
  18.4

  	
  Conflict with Trust
  Indenture Act

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Meetings

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Limited
  Responsibilities of Bond Trustee

  
	
   

  	
  20.1

  	
  Limited Responsibilities

  
	
   

  	
  20.2

  	
  Examination
  of Documents

  
	
   

  	
   

  	
   

  
	
  21.

  	
  Limitation of
  Bond Trustee’s Liability

  
	
   

  	
  21.1

  	
  Limitation
  of liability

  
	
   

  	
  21.2

  	
  Conflicts

  
	
   

  	
  21.3

  	
  Reliance
  on Certificates

  
	
   

  	
  21.4

  	
  No Liability

  
	
   

  	
  21.5

  	
  No
  notice or enforcement

  
	
   

  	
  21.6

  	
  No
  liability for loss

  
	
   

  	
  21.7

  	
  Indemnity
  regarding exercise of Powers

  
	
   

  	
  21.8

  	
  Confidential
  information

  
	
   

  	
  21.9

  	
  Agents
  and Delegates

  
	
   

  	
  21.10

  	
  Liability for Agents
  and Delegates

  
	
   

  	
  21.11

  	
  No inquiry

  
	
   

  	
  21.12

  	
  Exercise of
  rights

  
	
   

  	
  21.13

  	
  Performance
  of duties

  
	
   

  	
   

  	
   

  
	
  22.

  	
  Notices

  
	
   

  	
  22.1

  	
  Notices
  generally

  
	
   

  	
  22.2

  	
  Notices
  to Bondholders

  

 

iii

 

	
  23.

  	
  Governing law and
  jurisdiction

  
	
   

  	
   

  	
   

  
	
  24.

  	
  General

  
	
   

  	
  24.1

  	
  Remedies
  Cumulative

  
	
   

  	
  24.2

  	
  Severability of provisions

  
	
   

  	
  24.3

  	
  Counterparts

  
	
   

  	
   

  	
   

  
	
  Schedule
  1 – Part 1

  
	
   

  	
  Form of Class A Global Bond

  
	
   

  	
   

  	
   

  
	
  Schedule
  1 – Part 2

  
	
   

  	
  Form of Class B Global Bond

  
	
   

  	
   

  	
   

  
	
  Schedule
  2 – Part 1

  
	
   

  	
  Form of Class A
  Definitive Bond

  
	
   

  	
   

  	
   

  
	
  Schedule
  2 – Part 2

  
	
   

  	
  Form of Class B
  Definitive Bond

  
	
   

  	
   

  	
   

  
	
  Schedule 3

  
	
   

  	
  Terms and Conditions
  of the Bonds

  
	
   

  	
   

  	
   

  
	
  Schedule 4

  
	
   

  	
  Form
  of Bond Application

  
	
   

  	
   

  	
   

  
	
  Schedule 5

  
	
   

  	
  Form of Registration
  Confirmation

  
	
   

  	
   

  	
   

  
	
  Schedule 6

  
	
   

  	
  Form of Transfer and
  Acceptance

  
	
   

  	
   

  	
   

  
	
  Schedule 7

  
	
   

  	
  Meetings
  Procedures

  
	
   

  	
   

  	
   

  
	
  Schedule 8

  
	
   

  	
  Information
  to be contained in Bondholders Report

  

 

iv

 

	
  Date

  	
   

  	
   

  	
  2003

  
	
   

  	
   

  	
   

  	
   

  
	
  Parties

  	
   

  	
   

  
	
  1.

  	
   

  	
  Permanent Custodians Limited (ACN 001 426 384) of
  35 Clarence Street, Sydney, NSW 2000, Australia (included in the
  expression the Issuer);

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Australian Securitisation Management Pty Limited (ACN 103 852 428) of Level 6, 12 Castlereagh
  Street, Sydney, NSW 2000, Australia (the Trust Manager);

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Australian Mortgage Securities Ltd (ABN 89 003 072 446) of Level 6, 12
  Castlereagh Street, Sydney, NSW 2000, Australia (the Master Servicer);

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  The Bank of New York, a New York banking corporation,  of
  101 Barclay Street, 21W, New York, New York, 10286 (included in the
  expression the Bond Trustee,
  the Calculation Agent,
  the US$Registrar
  and the Principal Paying
  Agent); and

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Permanent Registry Limited (ACN 000 334 636) of 35 Clarence
  Street, Sydney, NSW 2000, Australia (included in the expression the Security Trustee).

  

 

It is agreed as
follows.

 

1.                                     Definitions and
interpretation

 

1.1                              Definitions

 

In this Deed:

 

Approval means any licence, permit, consent,
approval, registration or authority.

 

A$  and Australian Dollar
means the lawful currency of Australia.

 

A$ Register means the register maintained in
relation to the Fast Prepayment Bonds by or on behalf of the Issuer pursuant to
clause 11.

 

A$ Registrar means the Issuer or each person (if
any) from time to time appointed by the Issuer to maintain the A$ Register
under clause 11.8.

 

Bond means each bond referred to in
clause 4 issued by the Issuer in accordance with the Master Trust Deed,
this Deed, the Security Trust Deed and the relevant Subscription Agreement and
designated ARMS II Global Fund 2
Bond.

 

Bond Application means an application for a Fast
Prepayment Bond in the form of Schedule 4 or such other form as may from time
to time be agreed between the Issuer and the Trust Manager.

 

1

 

Bond Depository Agreement means the agreement, so entitled,
dated on or about the date of this Deed between the Issuer, the Bond Trustee
and DTC.

 

Bondholder means, in relation to a Bond and
at any time, the person inscribed in a Register as the holder of that Bond at
that time.

 

Bondholders
Report means the report to be delivered by the Trust Manager
in accordance with clause 12.1(f) containing the information set out in
Schedule 8.

 

Bondholders’ Secured Moneys has the meaning given in the Security
Trust Deed.

 

Bond Owner means each Class A Bond Owner and each
Class B Bond Owner.

 

Bond Trust means the trust created by this Deed.

 

Bond Trustee means the person who from time to
time holds the office of trustee of the Bond Trust (in its capacity as trustee
of the Bond Trust only) which person is, at the date of this Deed, The Bank of
New York.

 

Bond Trust Fund means all property, rights and assets
which are or become subject to the Bond Trust.

 

Business Day means a day, other than a Saturday,
Sunday or a public holiday on which banks are open for business:

 

(a)                                 in relation to any
Payment Date, in Sydney, Melbourne, London and New York; and

 

(b)                                in relation to any
Determination Date, in London and New York.

 

Calculation Agent means, initially, The
Bank of New York and subsequently any successor appointed under a Paying Agency
Agreement to make calculations in relation to the US$ Bonds.

 

Charge has the meaning given in
the Security Trust Deed.

 

Charged Property has the meaning given in
the Security Trust Deed.

 

Class means, as the context requires:

 

(a)                                 all Class A Bonds;

 

(b)                                all Class B Bonds; or

 

(c)                                 all Fast Prepayment
Bonds.

 

Class A Bond means each Bond designated in the US$
Register as a Class A Bond.

 

Class A Bondholder means a Bondholder of a Class A Bond.

 

Class A Bond Owner means each person who is the
beneficial owner of all or part of the Class A Global Bond, as reflected on the
books of the Clearing Agency or on the books of the person maintaining an
account with such Clearing Agency (directly as a Clearing Agency Participant or
as an indirect participant) in each case in accordance with the rules of such
Clearing Agency.

 

2

 

Class A Currency Swap means each Currency Swap which the
Issuer, the Trust Manager and the relevant Currency Swap Counterparty agree
between them, at the time of entering into that Currency Swap, is to be a Class
A Currency Swap for the purposes of the Conditions.

 

Class A Currency Swap Counterparty means, in relation to a Class A
Currency Swap, the person who has entered into or agreed to make that Class A
Currency Swap available to the Issuer.

 

Class A Global Bond means the global bond issued or to be
issued by the Issuer under this Deed representing the Class A Bonds.

 

Class B Bond means each Bond designated in the US$
Register as a Class B Bond.

 

Class B Bondholder means a Bondholder of a Class B Bond.

 

Class B Bond Owner means each person who is the beneficial
owner of all or part of the Class B Global Bond, as reflected on the books of
the Clearing Agency or on the books of the person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant) in each case in accordance with the rules of such
Clearing Agency.

 

Class B Currency Swap means each Currency Swap which the
Issuer, the Trust Manager and the relevant Currency Swap Counterparty agree
between them, at the time of entering into that Currency Swap, is to be a Class
B Currency Swap for the purposes of the Conditions.

 

Class B Currency Swap Counterparty means, in relation to a Class B
Currency Swap, the person who has entered into or agreed to make that Class B
Currency Swap available to the Issuer.

 

Class B Global Bond means the global bond issued or to be
issued by the Issuer under this Deed representing the Class B Bonds.

 

Clearing Agency means an organisation registered as a
clearing agency
pursuant to section 17A of the Exchange Act and appointed by the Issuer (at the
direction of the Trust Manager) to hold Bonds and, initially, means DTC.

 

Clearing Agency Participant means a broker, dealer, bank, other
financial institution or other person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with
the Clearing Agency.

 

Common Depository means Cede & Co, as depository for
DTC or any Clearing Agency appointed from time to time to hold the Global
Bonds.

 

Conditions means the terms and conditions
applicable to the Bonds as set out in Schedule 3, and references to a specified
Condition are to the relevant Condition of Schedule 3 (in each case, as varied
or modified from time to time in accordance with this Deed).

 

Corporations Act means the Corporations Act, 2001
(Commonwealth of Australia).

 

Corporate Trust
Office means the principal office of the Bond Trustee at
which, at any particular time, its corporate trust business is administered,
which at the date of the execution

 

3

 

of this Deed is 101 Barclay Street, Floor 21 West,
New York, NY 10286 USA (Attention: Global Structured Finance Unit) or at such
other address as the Bond Trustee may designate by notice to the Trust Manager,
the US$ Bondholders and the Issuer or the principal corporate trust office of
any successor Bond Trustee.

 

Crown means the Crown in respect of the
Commonwealth of Australia and the various states of Australia.

 

Currency Swap means:

 

(a)                                 each interest rate and
currency swap Transaction made or to be made between the Issuer and a Currency
Swap Counterparty pursuant to an ISDA Master Agreement for the purposes of
hedging the mismatches between:

 

(i)                                    the currency and basis of
calculation of interest of the payment obligations of the Issuer under the
Bonds; and

 

(ii)                                 the currency in which the
Issuer is entitled to receive payments in respect of the Assets and the basis
of calculation of the underlying rate of interest payable in respect of Loans
comprised in the Assets (having regard to the effect on such underlying rate of
any relevant Interest Rate Swap); and

 

(b)                                each other Transaction
made between the Issuer and an Eligible Financial Institution entered into in
replacement or substitution for any such Transaction,

 

in each case on such terms that will not cause the credit rating assigned
by each Designated Rating Agency to the Bonds to be less than the Designated
Rating, qualified or withdrawn.

 

Currency Swap Counterparty means, in relation to a Currency
Swap, the person who has entered into or agreed to make that Currency Swap
available to the Issuer.

 

Definitive Bond means each Class A Bond and each
Class B Bond in definitive form issued or to be issued in the circumstances
specified in clause 5.7 and includes any replacement issued under the
Conditions.

 

DTC means The Depository Trust Company.

 

Eligible Financial Institution means:

 

(a)                                 in relation to a Currency
Swap or an Interest Rate Swap, a bank or financial institution whose rating by
each Designated Rating Agency is such that it being a party to a Currency Swap
or an Interest Rate Swap will not cause any credit rating assigned to the Bonds
to be less than the Designated Rating, qualified or withdrawn; and

 

(b)                                for all other purposes of
the Transaction Documents relating to the Fund, and at any time, any bank or
financial institution carrying on business in Australia whose short term debt
obligations have at that time a rating of at least “A-1+” (S&P) and “P1”
(Moody’s) and whose long term debt obligations have at that time a rating of at
least “AAA” (S&P) and “Aa” (Moody’s).

 

4

 

Event of Default means each of the events specified in
Condition 11.1.

 

Exchange Act means the United States Securities
Exchange Act of 1934 (as amended from time to time).

 

Expiration Date has the meaning given in the Security
Trust Deed.

 

Extraordinary Resolution has the meaning given in Condition
1.2.

 

Fast Prepayment Bond means each Bond which the Issuer
issues or is required to issue following the giving of an Issue Notice in
accordance with Condition 3.1 and which is inscribed in the A$ Register as a
Fast Prepayment Bond.

 

Fast Prepayment Bondholder means a Bondholder of a Fast
Prepayment Bond.

 

Fund means the Issuing Fund constituted
under the Master Trust Deed known as ARMS II Global Fund 2.

 

Global Bond means the Class A Global Bond and the
Class B Global Bond.

 

Incoming Bond Trustee has the meaning given in clause 14.5.

 

Indebtedness means moneys borrowed or raised,
including rentals under financial leases and interest thereon, any liability
under any bill of exchange, debenture, note or other security or under any
acceptance credit facility, any liability in respect of the acquisition cost of
assets or services to the extent payable after the time of acquisition or
possession thereof, and any guarantee or other assurance against financial loss
in respect of any moneys borrowed or raised, interest or liabilities.

 

Independent Certificate means, in relation to a person or a
matter in relation to a person (the Relevant Person), a certificate or opinion issued by a
person (including, in the case of an accountant or lawyer, a firm of
accountants or lawyers or any member of such firm) who:

 

(a)                                 does not have and is not committed to
acquire any material direct or any material indirect financial interest in the
Relevant Person or in any Associate of the Relevant Person; and

 

(b)                                is not connected with the Relevant
Person as an officer, employee, promoter, underwriter, voting trustee, partner,
director or person performing similar functions.

 

A certificate or opinion issued by an accountant, in relation to a
Relevant Person or any matter in relation to a Relevant Person, may include an
accountant who audits the books of the Relevant Person if, in addition to
satisfying the above criteria, the accountant is independent with respect to a
Relevant Person within the meaning of Rule 101 of the Code of Ethics of the
American Institute of Certified Public Accountants.

 

If an Independent Certificate is to be provided to the Bond Trustee, such
opinion or certificate must state that the signer of that opinion or
certificate has read this definition and that the opinion or certificate is an
Independent Certificate within the meaning of this definition.

 

5

 

Initial Paying Agency Agreement means the paying agency agreement
dated on or about the date of this Deed between the Issuer, the Trust Manager
and The Bank of New York.

 

Interest Rate Swap means each futures contract, option
agreement, swap, cap, forward rate agreement or other arrangement in relation
to interest rates made or to be made between the Issuer, the Trust Manager and
an Eligible Financial Institution for the purposes of hedging mismatches
between the rate or basis of calculation of interest payable in respect of
Mortgages in the Portfolio comprised in the Assets of the Fund and the rate or
basis of calculation of Interest Entitlements on such terms that will not cause
the credit rating assigned by each Designated Rating Agency to Bonds to be less
than the Designated Rating, qualified or withdrawn.

 

Interest Rate Swap Counterparty means, in relation to an Interest Rate
Swap, the person who has entered into or agreed to make that Interest Rate Swap
available to the Issuer.

 

ISDA Definitions means the defined meanings given to
certain words and expressions in the document entitled 2000 ISDA Definitions, as published by the
International Swaps and Derivatives Association, Inc.

 

ISDA Master Agreement means:

 

(a)                                 initially, each agreement
made between the Issuer, the Trust Manager and an initial Currency Swap
Counterparty; and

 

(b)                                subsequently, each other
agreement made between the Issuer, the Trust Manager and a Currency Swap
Counterparty,

 

in each case, incorporating the standard form of Master Agreement
(Multicurrency-Cross Border) (1992 Version) published by the International
Swaps and Derivatives Association, Inc.

 

Issuer means initially, PCL in its capacity
as trustee of the Fund and in no other capacity; and subsequently any
substitute issuer appointed in accordance with clause 15.

 

Marked T&A means a Transfer and Acceptance Form
marked by the A$ Registrar in accordance with clause 9.10.

 

Master Trust Deed means the Master Trust Deed for the
ARMS II Funds dated 7 March 1995 made between PCL and Australian Mortgage
Securities Ltd (as amended and restated on or about the date of this Deed by a
Deed of Variation made between PCL, Australian Mortgage Securities Ltd and the
Trust Manager and as applicable to the Fund).

 

Material Adverse Effect means a material adverse effect on
the amount or timing of any payment to a Bondholder.

 

Meetings Procedures means the procedures and other
provisions contained in Schedule 7.

 

6

 

Officer’s
Certificate means a certificate signed by any Authorised
Signatory of the Issuer or the Trust Manager on behalf of the Issuer, under the
circumstances described in, and otherwise complying with, the applicable
requirements of section 314 of the TIA.

 

Opinion of
Counsel means one or more written opinions of legal counsel who
may, except as otherwise expressly provided in this Deed, be employees of or
counsel to the Issuer or the Trust Manager, on behalf of the Issuer, and who
shall be satisfactory to the Issuer or the Bond Trustee, as applicable, and
which opinion or opinions shall be addressed to the Issuer or the Bond Trustee,
as applicable, and shall be in form and substance satisfactory to the Issuer or
the Bond Trustee, as applicable.

 

Outgoing Bond Trustee has the meaning given in clause 14.5.

 

Paying Agency Agreement means each agreement entered into
from time to time between (among others) the Issuer and one or more persons
acting as Paying Agents (however described), pursuant to which those persons
agree (among other things) to act as the agent of the Issuer for the purposes
of receiving and making payments in respect of Bonds and, in relation to the
US$ Bonds, includes the Initial Paying Agency Agreement.

 

Paying Agent means each person who is from time to
time appointed by the Issuer as its agent for the purposes of issuing and
receiving and making payments in respect of Bonds pursuant to a Paying Agency
Agreement.

 

Payment Date has the meaning given in Condition
1.2.

 

PCL means Permanent Custodians Limited
(ACN 001 426 384).

 

Potential Event of Default means an event which with the giving
of notice, lapse of time or satisfaction of any other applicable condition
would constitute an Event of Default.

 

Principal Paying Agent means, initially, The Bank of New
York and subsequently any successor appointed under a Paying Agency Agreement.

 

Record Date has the meaning given in Condition
1.2.

 

Register means each of the A$ Register and the
US$ Register.

 

Registrar means each of the A$ Registrar and
the US$ Registrar.

 

Registration Confirmation means a confirmation as to the
registration of a person as the holder of a Fast Prepayment Bond in the form
set out in Schedule 5 or in such other form as may from time to time be agreed
between the Issuer and the Trust Manager.

 

Secured Creditor has the meaning given in the Security
Trust Deed.

 

Secured Document has the meaning given in the Security
Trust Deed.

 

Secured Moneys has the meaning given in the Security
Trust Deed.

 

Securities Act means the United States Securities Act
of 1933 (as amended from time to time).

 

7

 

Security Trust Deed means the deed, so entitled, dated on
or about the date of this Deed between the Issuer, the Trust Manager, the
Security Trustee and the Bond Trustee.

 

Statute means any legislation of any
jurisdiction in force from time to time, and any rule, regulation, ordinance,
by-law, statutory instrument, order or notice made under any such legislation
from time to time.

 

Subscription Agreement means:

 

(a)                                 each agreement pursuant to which
subscribers agree from time to time to purchase or subscribe for Bonds; and

 

(b)                                in relation to the US$ Bonds, the
Underwriting Agreement.

 

Subsidiary has the meaning given to it in the
Corporations Act.

 

Substitution Date has the meaning given in clause 15.1.

 

TIA means the
United States Trust Indenture Act of 1939 (as amended from time to time).

 

Transaction has the same meaning as in the ISDA
Definitions.

 

Transfer and Acceptance Form means a form of transfer and
acceptance of Fast Prepayment Bonds in the form of Schedule 6, or such other
form as may from time to time be agreed between the Issuer and the Trust
Manager.

 

Trust
Corporation means any person eligible for appointment as a
trustee under an indenture to be qualified pursuant to the TIA, as set forth in
section 310(a) of the TIA, which shall include The Bank of New York for so long
as it complies with such section.

 

Underwriting Agreement means the agreement, so entitled,
dated or about the date of this Deed between the Issuer, the Master Servicer,
the Trust Manager, ABN AMRO Incorporated and Deutsche Bank Securities Inc..

 

US$ and US Dollar means the lawful currency of the
United States of America.

 

US$ Bond means each Class A Bond and each Class
B Bond.

 

US$ Bondholder means each Bondholder of a US$ Bond.

 

US$ Register means the register maintained in
relation to the US$ Bonds by or on behalf of the Issuer pursuant to clause 11.

 

US$ Registrar means the Issuer or each person (if
any) from time to time appointed by the Issuer to maintain the US$ Register
under clause 11.8.

 

1.2                              Master Trust Deed
definitions

 

Words and expressions which are defined in the Master Trust Deed have the
same meanings when used in this Deed, unless otherwise defined in this Deed, or
unless the context otherwise requires.

 

8

 

1.3                              Interpretation

 

In this Deed, unless the context indicates a
contrary intention:

 

(a)                                  person includes an individual, a body
politic, a corporation and a statutory or other authority or association
(incorporated or unincorporated);

 

(b)                                 references to a party include that
party’s executors, administrators, successors, substitutes and assigns,
including any person taking by way of novation;

 

(c)                                  references to any legislation or to
any section or provision thereof includes any statutory modification or
re-enactment or any statutory provision substituted therefor and all
ordinances, by-laws, regulations and other statutory instruments issued
thereunder;

 

(d)                                 corporation means any body corporate wherever
formed or incorporated, including any public authority or any instrumentality
of the Crown;

 

(e)                                  the expression certified means:

 

(i)                                    in the case of the Bond Trustee,
certified in writing by an Authorised Signatory of the Bond Trustee; or

 

(ii)                                 in the case of any other corporation
or person, certified in writing by 2 Authorised Signatories of the corporation
or by that person respectively,

 

and certify
and like expressions shall be construed accordingly;

 

(f)                                    words importing the singular shall
include the plural (and vice versa) and words denoting a given gender shall
include all other genders;

 

(g)                                 headings are for convenience only and
shall not affect the interpretation of this Deed;

 

(h)                                 references to a clause or a Schedule
are to a clause or a Schedule of this Deed;

 

(i)                                     where any word or phrase is given a
defined meaning, any other part of speech or other grammatical form of that
word or phrase has a corresponding meaning;

 

(j)                                     if the due date for payment of any
amount, or the doing of any thing, in respect of this Deed is not a Business
Day, then the Modified Following Business Day Convention (as defined in the
ISDA Definitions) shall apply to the making of that payment or the doing of
that thing;

 

(k)                                  all accounting terms shall be
interpreted in accordance with the Approved Accounting Standards;

 

(l)                                     month means calendar month;

 

(m)                               a reference to any document or
agreement is to such document or agreement as amended, varied, supplemented or
novated from time to time;

 

(n)                                 a reference to this Deed includes a
reference to a Schedule and an exhibit to this Deed; and

 

9

 

(o)                                 where this Deed refers to a provision
of the TIA, that provision is incorporated by reference in and made part of
this Deed.  The following terms used in
the TIA have the following meanings in this Deed.

 

Commission means the Securities and Exchange
Commission of the United States of America.

 

indenture securities means the US$ Bonds.

 

indenture security
holder
means each US$ Bondholder.

 

indenture to be
qualified
means this Deed.

 

indenture trustee or institutional trustee means the Bond Trustee.

 

obligor on the indenture securities means the
Issuer.

 

Any other term which is used in this Deed in respect of a section or
provision of the TIA and which is defined in the TIA, defined in the TIA by
reference to another statute or defined by or in any rule of or issued by the
Commission, will have the meaning assigned to it by such definitions.

 

1.4                              Status of this Deed

 

This Deed is:

 

(a)                                  the Bond Trust Deed for the Fund; and

 

(b)                                 a Transaction Document.

 

1.5                              Liability of Issuer

 

(a)                                  The Issuer has no personal liability
in relation to any of its obligations under or arising out of this Deed or any
of the Transaction Documents entered into in its capacity as trustee of the
Fund.

 

(b)                                 In relation to each such obligation,
the liability of the Issuer is limited to and does not extend beyond the Assets
of the Fund as they stand at the time at which the obligation is met or
satisfied.

 

(c)                                  The Issuer is not liable to meet or
satisfy any such obligation from its own assets (except the Trustee’s
Indemnity) and each such obligation must be met or satisfied from the Fund or
the Trustee’s Indemnity.

 

(d)                                 The preceding paragraphs apply
notwithstanding the fact that the liabilities of the Issuer in its capacity as
trustee of the Fund may from time to time almost equal, equal, or exceed the
value of the Assets of the Fund at the relevant time.

 

(e)                                  The previous paragraphs of this clause
1.5 do not apply to the liability of the Issuer in relation to any obligation
which in any Transaction Document the Issuer expressly assumes in its personal
capacity.

 

10

 

(f)                                    It is acknowledged by the Issuer that
the Assets of the Fund at any time will include the amount of any compensation
found by a Final Judgment (or admitted by the Issuer) to be payable by the
Issuer to restore the Fund because of a failure by the Issuer to exercise in
relation to the Fund the degree of care, diligence and prudence required of a
trustee or because of some other neglect, default or breach of duty by the
Issuer having regard to the powers and duties conferred on the Issuer by the
Master Trust Deed, in either case occurring before the time in question and
causing loss to the Fund quantified before the time in question.

 

(g)                                 For the purposes of this clause 1.5, Final Judgment means
a judgment of a court of law in Australia against which there can be no appeal
or in relation to which the time to appeal has expired.

 

1.6                              Opinion of Counsel

 

For the purposes of this Deed, the Issuer or the Bond Trustee may, where
necessary, seek and rely conclusively on, any Opinion of Counsel on any matters
relating to or connected with the TIA. 
Where the Issuer or the Bond Trustee has sought the Opinion of Counsel
it shall not be required to take any action under this Deed unless and until it
has received such an Opinion of Counsel. 
The cost of any such Opinion of Counsel will be an Expense of the Issuer in relation to the
Fund.

 

1.7                              Knowledge of Bond
Trustee

 

The Bond Trustee will only be considered to have knowledge, notice of or
to be aware of any matter or thing if the Bond Trustee has knowledge, notice or
awareness of that matter or thing by virtue of the actual knowledge, notice or
awareness of the officers or employees of the Bond Trustee who have day to day
responsibility for the administration of the Bond Trust.

 

2.                                     Appointment of Bond Trustee

 

2.1                              The Bond Trustee

 

Upon execution of this Deed by the Bond Trustee, the Bond Trustee:

 

(a)                                  is appointed to act as trustee on
behalf of the US$ Bondholders on the terms and conditions of this Deed; and

 

(b)                                 acknowledges and declares that it:

 

(i)                                    holds the sum of US$10.00 received on
the date of this Deed from the Trust Manager; and

 

(ii)                                 will hold the benefit of each of the
Secured Documents to which it is a party,

 

in each case, on trust for the US$ Bondholders, on and subject to the
terms and conditions of this Deed.

 

11

 

2.2                              Benefit of Trusts

 

Each US$ Bondholder is entitled to the benefit of the Bond Trust.

 

2.3                              Duration of Trust

 

The Bond Trust commences on the date of this Deed and terminates on the
earlier of:

 

(a)                                  the 80th anniversary of the date of
this Deed; and

 

(b)                                 the Expiration Date.

 

2.4                              Responsibility of
Bond Trustee

 

Notwithstanding any other provision of this Deed or any other Transaction
Document, the Bond Trustee’s rights and obligations under this Deed apply only
to the US$ Bonds and it is not in any way responsible for the Fast Prepayment
Bonds.

 

3.                                     Covenant
to pay

 

3.1                              Covenant to pay

 

The Issuer covenants with the Bond Trustee for the benefit of the US$
Bondholders to pay or repay unconditionally to or to the order of the Bond
Trustee (as the case requires) in immediately available funds, the Bondholders’
Secured Moneys owing to the US$ Bondholders as and when they fall due under the
Transaction Documents.

 

3.2                              Discharge by
payment

 

Notwithstanding clause 3.1 and subject to clauses 3.3 and 3.4, every
payment on account of Secured Moneys made by the Issuer direct to the
corresponding US$ Bondholder of a particular Class or to a Paying Agent in
accordance with the relevant Paying Agency Agreement will satisfy, to that
extent, the Issuer’s obligations to the Bond Trustee under this Deed in respect
of its obligations to that US$ Bondholder of that Class.

 

3.3                              Bond
Trustee’s requirements following an Event of Default

 

At any time after an Event of Default or a Potential Event of Default has
occurred and is continuing unremedied, the Bond Trustee may, so far as
permitted by applicable law:

 

(a)                                  by notice in writing to the Issuer and
each Paying Agent require the Paying Agents, until notified by the Bond Trustee
to the contrary, to:

 

(i)                                    act as agents of the Bond Trustee
under this Deed and the US$ Bondholders on the terms of the relevant Paying
Agency Agreement; and

 

(ii)                                 hold all US$ Bonds and all moneys,
documents and records held by them in respect of the US$ Bonds to the order of
the Bond Trustee; and

 

12

 

(b)                                 by notice in writing to the Issuer,
require it to make all subsequent payments in respect of the US$ Bonds to or to
the order of the Bond Trustee and not to the Paying Agents.

 

3.4                              Discharge

 

Subject to clause 3.3, any payment to be made in respect of the US$ Bonds
by the Issuer or the Bond Trustee may be made as provided in the Conditions and
any payment so made will to that extent be a good discharge to the Issuer or
the Bond Trustee, as the case may be.

 

4.                                     The
Bonds

 

4.1                              Designation of
Bonds

 

This Deed relates to and governs the issue by the Issuer, in accordance
with the Master Trust Deed, this Deed, the Security Trust Deed and the relevant
Subscription Agreement, of bonds designated collectively as ARMS II Global Fund 2 Bonds.

 

4.2                              Classes of Bonds

 

The Bonds will be comprised of 3 Classes designated Class A Bonds, Class B Bonds and Fast Prepayment Bonds respectively.

 

4.3                              Amount of the Bonds

 

(a)                                  The aggregate Face Value of all Class
A Bonds will not exceed US$1,000,000,000.

 

(b)                                 The aggregate Face Value of all Class
B Bonds will not exceed US$33,500,000.

 

5.                                     Form and issue of US$ Bonds

 

5.1                              Form and
Denomination

 

Each US$ Bond will be:

 

(a)                                  issued in the form of a registered
bond;

 

(b)                                 denominated in US Dollars; and

 

(c)                                  issued in denominations and multiples
of US$100,000.

 

5.2                              Issue of Global
Bond

 

(a)                                  On the Initial Issue Date, the US$
Registrar must procure the registration in the US$ Register of:

 

(i)                                    Cede & Co as nominee for the
Clearing Agency, as Bondholder of each Global Bond; and

 

(ii)                                 all other information required by
clause 11.1.

 

13

 

(b)                                 The Class A Global Bond will have an
aggregate initial Face Value of US$1,000,000,000.

 

(c)                                  The Class B Global Bond will have an
aggregate initial Face Value of US$33,500,000.

 

5.3                              Effect of
registration

 

Registration of the details of the Bondholder of each US$ Bond in the US$
Register in accordance with clauses 5.2(a) and 5.10(a) creates an obligation on
the Issuer to pay to the person registered as the Bondholder of each such Bond:

 

(a)                                  the Face Value of each such Bond; and

 

(b)                                 the Interest Entitlements relating to
each such Bond,

 

in each case in accordance with this Deed, the Master Trust Deed, the
Security Trust Deed and the Conditions.

 

5.4                              Form of Global Bond

 

Each Global Bond must be:

 

(a)                                  printed or typed in the form or
substantially in the form set out in Schedule 1 Part 1 in relation to
Class A Bonds and Schedule 1 Part 2 in relation to Class B Bonds;

 

(b)                                 signed by an Authorised Signatory of
the Issuer; and

 

(c)                                  authenticated by an Authorised
Signatory of the Principal Paying Agent.

 

No Global Bond will be valid for any purpose unless and until so authenticated.

 

5.5                              Procedures for
exchange

 

The procedures for the exchange, authentication, delivery, surrender,
cancellation, presentation and marking down of a Global Bond (or part thereof)
and any other matters to be carried out by the relevant parties upon exchange
(in whole or part) of a Global Bond will be made in accordance with the
provisions of the terms of the relevant Global Bond and the normal practice of
the Common Depository, the Paying Agents and the rules and procedures of the
Clearing Agency from time to time.

 

5.6                              Dealings with US$
Bondholders

 

Unless and until the Definitive Bonds have been
issued to the Bond Owners pursuant to clause 5.7:

 

(a)                                  the US$
Registrar, the Issuer, the Trust Manager, each Paying Agent, the Security
Trustee and the Bond Trustee shall be entitled to deal with the Clearing Agency
for all purposes of this Deed (including the payment of principal and interest
on the US$ Bonds and the giving of notices to US$ Bondholders) as the sole
holder of the US$ Bonds, and shall have no obligation to any Bond Owners in
relation to the same;

 

14

 

(b)                                 the rights of
Bond Owners shall be exercised only through the Clearing Agency and shall be
limited to those established by law and agreements between such Bond Owners and
the Clearing Agency and/or the Clearing Agency Participants.  Pursuant to the Bond Depository Agreement,
unless and until Definitive Bonds are issued pursuant to clause 5.7, the
Clearing Agency will make book-entry transfers among the Clearing Agency
Participants and receive and transmit payments of principal and interest on the
US$ Bonds to such Clearing Agency Participants; and

 

(c)                                  to the extent
that the provisions of this clause conflict with any other provisions of this
Deed, the provisions of this clause shall prevail.

 

5.7                              Preparation
and Delivery of Definitive Bonds

 

If, while any US$ Bonds are represented by a Global Bond:

 

(a)                                  DTC is no longer willing or able to
discharge its responsibilities as depository for the US$ Bonds and the Trust
Manger is unable to locate a qualified successor; or

 

(b)                                 the Issuer, at the direction of the
Trust Manager, elects to terminate the book-entry system through DTC; or

 

(c)                                  after the occurrence of an Event of
Default, the Bond Trustee, at the direction of an Extraordinary Resolution of
the US$ Bondholders, advises the Issuer that the continuation of a book-entry
system is no longer in the best interests of the relevant US$ Bondholders,

 

then the Trust Manager must instruct the Issuer to, and the Issuer must,
subject to clause 5.9, within 30 days after the occurrence of the relevant
event, prepare (in accordance with clause 5.11) and deliver to the Principal
Paying Agent the relevant
Definitive Bonds.

 

5.8                              Notification
of issue of Definitive Bonds

 

The Trust Manager, on behalf of the Issuer, will notify the Bond Trustee
immediately upon the occurrence of any of the events referred to in clause 5.7
and will, unless the Bond Trustee agrees otherwise, promptly, in accordance
with Condition 15, give notice of the same and of the Issuer’s obligations to
issue Definitive Bonds in accordance with clause 5.9.

 

5.9                              Issue of Definitive
Bonds

 

All Definitive Bonds delivered to the Principal Paying Agent in
accordance with clause 5.7 must be held by it and issued to the relevant Bond
Owners upon request by those Bond Owners. 
The Principal Paying Agent undertakes to deliver the Definitive Bonds to
the relevant Bond Owners as soon as practicable upon request by those Bond
Owners.  The Definitive Bonds will be
deemed to have been issued by the Issuer in accordance with this clause 5.9 as
soon as they have been delivered by the Principal Paying Agent to the relevant
Bond Owners on behalf of the Issuer. 
The Face Value of the relevant Global Bond will be reduced by an amount
equal to the Face Value of those Definitive Bonds which are so issued.  The Issuer will

 

15

 

not be liable for any delay in the delivery of Definitive Bonds by the
Principal Paying Agent to the Bond Owners in accordance with this clause 5.9.

 

5.10                       Registration
of Definitive Bonds

 

(a)                                  Upon the issue of each Definitive
Bond, the US$ Registrar must procure the registration in the US$ Register of
the beneficial owner of that Definitive Bond and all other information required
by clause 11.1.

 

(b)                                 Title to the Definitive Bonds will
pass by registration in accordance with this Deed.

 

5.11                       Form of the
Definitive Bonds

 

Each Definitive Bond must be:

 

(a)                                  printed or typed in the form or
substantially in the form set out in Schedule 2 Part 1 in relation to
Class A Bonds and Schedule 2 Part 2 in relation to Class B Bonds;

 

(b)                                 signed by an Authorised Signatory of
the Issuer; and

 

(c)                                  authenticated by an Authorised
Signatory of the Principal Paying Agent.

 

None of the Definitive Bonds will be valid for any purpose unless and
until so authenticated and issued in accordance with clause 5.9.

 

5.12                       Failure
by the Issuer to issue Definitive Bonds

 

If the Issuer becomes obliged to issue Definitive Bonds pursuant to
clause 5.7(c), but fails to do so within 30 days of the occurrence of the
relevant event described in clause 5.7(c), then the Issuer will indemnify and
keep indemnified from the Fund, the Bond Trustee, the US$ Bondholders and the
Bond Owners in respect of the relevant US$ Bonds against any loss or damage
incurred by any of them if the amount received by the Bond Trustee, the US$
Bondholders or the relevant Bond Owners in respect of the relevant US$ Bonds is
less than the amount that would have been received had Definitive Bonds been
issued in accordance with clause 5.7(c). 
If, and for so long as, the Issuer discharges its obligations under this
indemnity, the breach by the Issuer of the provisions of clause 5.7(c)
will be deemed to be cured.

 

5.13                       US Tax Treatment

 

It is the intention of the parties to this Deed and, by their holding of
the US$ Bonds, the US$ Bondholders, that those US$ Bonds be treated for United
States federal income tax purposes as debt denominated in US Dollars.

 

5.14                       Covenant of Compliance

 

Each of the Issuer and the Trust Manager covenants with the Bond Trustee
that it will comply with and perform and observe all provisions of the
Transaction Documents which are expressed to be binding on it for the benefit
of the Bond Trustee or any US$ Bondholder. 
The Transaction Documents to which the Issuer and the Bond Trustee are a
party shall be binding on the Issuer, the Bond Trustee and the US$ Bondholders.

 

16

 

6.                                     Cancellation of US$ Bonds

 

6.1                              Cancellation

 

The Issuer must procure that all US$ Bonds which have been:

 

(i)                                    redeemed in full;

 

(ii)                                 surrendered and replaced pursuant to
Condition 10.9; or

 

(iii)                              purchased by the Issuer and
surrendered for cancellation,

 

are immediately cancelled by or on behalf of the Issuer.

 

6.2                              Records

 

The Trust Manager, on behalf of the Issuer, must procure that:

 

(a)                                  the Principal Paying Agent keeps a
full and complete record of all US$ Bonds and of their redemption, purchase,
surrender, cancellation and exchange and of all replacement US$ Bonds issued in
substitution for lost, stolen, mutilated, defaced or destroyed US$ Bonds;

 

(b)                                 each Paying Agent keeps a full and
complete record of all amounts paid in respect of the US$ Bonds; and

 

(c)                                  such records shall be made available
by the relevant Paying Agent to the US$ Bond Trustee at all reasonable times.

 

6.3                              US$ Register and
US$ Registrar

 

(a)                                  Upon surrender
for registration of the transfer of any US$ Bond at the office or agency of the
US$ Registrar in relation to the US$ Bonds to be maintained as provided in
clause 12(c), if the requirements of Section 8-401(a) of the Uniform Commercial
Code of New York (the UCC) are met, the Issuer must execute and, upon its
written request, the Principal Paying Agent must authenticate in the name of
the designated transferee or transferees, one or more new US$ Bonds of the same
Class, in any authorised denominations and of a like aggregate Face Value.

 

(b)                                 At the option
of the relevant US$ Bondholder, US$ Bonds may be exchanged for other US$ Bonds
of the same Class in any authorised denominations and a like aggregate Face
Value, upon surrender of the US$ Bonds to be exchanged at any such office or
agency referred to in paragraph (a) above. 
Whenever any US$ Bonds are so surrendered for exchange, if the
requirements of Section 8-401(a) of the UCC are met, the Issuer must execute
and upon its written request the Principal Paying Agent must authenticate, the
US$ Bonds which the US$ Bondholder making the exchange is entitled to receive.

 

(c)                                  Every US$ Bond
presented or surrendered for registration of transfer or exchange shall be:

 

17

 

(i)                                    duly endorsed
by, or be accompanied by a written instrument of transfer in a form
satisfactory to the US$ Registrar duly executed by the transferring US$
Bondholder or its attorney duly authorised in writing, with such signature
guaranteed by an “eligible guarantor institution” meeting the requirements of
the US$ Registrar which requirements include membership or participation of
Securities Transfer Agents Medallion Program (Stamp) or such other “signature guarantee
program” as may be determined by the US$ Registrar in addition to, or in
substitution for, Stamp, all in accordance with the Exchange Act; and

 

(ii)                                 accompanied by
such other documents as the US$ Registrar may require.

 

(d)                                 No service
charge shall be made to a US$ Bondholder for any registration of transfer or
exchange of any US$ Bonds, but the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of the US$ Bonds.

 

(e)                                  Notwithstanding
the preceding provisions of this clause, the Issuer shall not be required to
make and the US$ Registrar need not register transfers or exchanges of any US$
Bonds for a period of 10 days preceding the due date for any payment with
respect to those US$ Bonds.

 

7.                                     Currency indemnity and payment of duties and Taxes on the Bonds

 

7.1                              Currency Indemnity

 

The Issuer must indemnify from the Fund the Bond Trustee and the US$ Bondholders and keep them indemnified
against:

 

(a)                                  (Non-payment by the Issuer) any loss or
damage incurred by any of them arising from the non-payment by the Issuer of
all or any part of the Bondholders’ Secured Moneys owing in respect of US$ Bonds by reason of any variation in the
rates of exchange between those used for calculating the amount due under a
judgment, order or proof of debt and those prevailing at the date of actual
payment by the Issuer; and

 

(b)                                 (Variation of exchange) any deficiency
arising or resulting from any variation in the rates of exchange between:

 

(i)                                    the date on which the local currency
equivalent of the Bondholders’ Secured Moneys owing in respect of US$ Bonds (other than amounts due under this
clause) is calculated for the purposes of any winding up of the Fund; and

 

(ii)                                 the final date for determining the
amount of claims in such winding up.

 

The amount of such deficiency shall not be reduced by any variation in
rates of exchange occurring between the said final date and the date of any
distribution of assets in connection with any such winding up.

 

18

 

7.2                              Payment
of duties and Taxes on the Bonds

 

The Issuer must pay any stamp, issue, documentary or other duties and
Taxes, payable in respect of:

 

(a)                                  the execution and delivery of this
Deed and the creation of the Charge; and

 

(b)                                 the creation, issue and delivery of
the Bonds.

 

The Issuer must also indemnify the Bond Trustee and the Bondholders from
and against all stamp, issue, documentary or other duties and Taxes paid by any
of them in any jurisdiction in connection with any action taken by or on behalf
of the Bond Trustee or (where permitted under this Deed) any Bondholder to
enforce the provisions of the Bonds or this Deed or to enforce the Charge.

 

8.                                     Form and issue of Fast Prepayment Bonds

 

8.1                              Form and denomination

 

Each Fast Prepayment Bond will be:

 

(a)                                  in the form of inscribed stock;

 

(b)                                 denominated in Australian Dollars; and

 

(c)                                  subject to clause 8.5, issued in
denominations of A$100,000.

 

8.2                              Action following
Issue

 

As soon as practicable after an Issue Date for any Fast Prepayment Bonds,
the A$ Registrar must:

 

(a)                                  inscribe in the A$ Register in accordance
with clause 11:

 

(i)                                    the Conditions for those Bonds, as attached to the
corresponding Issue Notice, with any amendments made to them under
clause 6.4 of the Master Trust Deed;

 

(ii)                                 the details of each Bondholder of
those Bonds, as contained in the relevant Bond Application; and

 

(iii)                              the Class in which each such Bond is
comprised;

 

(b)                                 issue a Registration Confirmation to
each Bondholder of those Bonds in respect of the Bonds held by it; and

 

(c)                                  if requested by a Bondholder of any
those Bonds in its Bond Application, issue a Transfer and Acceptance Form to
the Bondholder, marked in accordance with clause 9.10.

 

19

 

8.3                              Effect of
registration

 

Inscription of the Conditions and the details of the Bondholder of each
Fast Prepayment Bond in the A$ Register in accordance with clause 8.2(a)
creates an obligation on the Issuer to pay to the person registered as the
Bondholder of that Fast Prepayment Bond:

 

(a)                                  the Face Value of each such Fast
Prepayment Bond; and

 

(b)                                 the Interest Entitlements relating to
each such Fast Prepayment Bond,

 

in each case in accordance with this Deed, the Master Trust Deed, the
Security Trust Deed and the Conditions.

 

8.4                              Location
of Fast Prepayment Bonds

 

The property in Fast Prepayment Bonds shall for all purposes be regarded
as situated at the place where the A$ Register for those Bonds is located.

 

8.5                              Restriction on
Issues

 

Each offer for subscription or purchase and each invitation to subscribe
for or buy Fast Prepayment Bonds must be made:

 

(a)                                  on terms that the minimum amount
payable for such Bonds on acceptance of any such offer or invitation will be at
least A$500,000 (disregarding any amount paid or payable to the extent to which
it was paid or is to be paid out of money lent by the person offering those
Bonds or an associate (as defined in the Corporations Act) of that person); or

 

(b)                                 on such other terms as will result in
the offer or invitation not requiring disclosure to investors under Chapter
6D.2 of the Corporations Act.

 

9.                                     Transfers of Fast Prepayment Bonds

 

9.1                              No
Restrictions on Transfer of Fast Prepayment Bonds

 

Subject to this Deed and the Conditions, there are no restrictions on the
transfer of Fast Prepayment Bonds.

 

9.2                              Selling restriction

 

A Bondholder may not transfer any of its Fast Prepayment Bonds unless the
offer or invitation to the transferee by the Bondholder in relation to such
Bonds is an offer which does not require disclosure to investors pursuant to
Chapter 6D.2 of the Corporations Act.

 

9.3                              Form of Transfer

 

Every transfer of Fast Prepayment Bonds shall be effected by a Transfer
and Acceptance Form, duly completed and executed by the transferor and
transferee, duly stamped (if applicable), and lodged with the A$ Registrar.

 

20

 

9.4                              Registration
of Transferee as Bondholder

 

Subject to the terms of this Deed, the A$ Registrar must promptly
following receipt of a Transfer and Acceptance Form enter the transferee in the
A$ Register as the holder of the Bonds the subject of that Transfer and
Acceptance Form.

 

9.5                              A$
Registrar entitled to refuse to register Transfer and Acceptance Form

 

The A$ Registrar may refuse to register any Transfer and Acceptance Form
which would result in:

 

(a)                                  a breach of the terms of this Deed,
the Master Trust Deed, the Security Trust Deed, the Conditions, or a law of an
Australian Jurisdiction; or

 

(b)                                 the Issuer being required to take any
action upon or following registration to avoid any such breach.

 

9.6                              Notice of refusal to
Register

 

If the A$ Registrar refuses to register a Transfer and Acceptance Form,
it must as soon as practicable (and in any event not later than 7 days after
the date the Transfer and Acceptance Form was lodged with it) send to the
transferor and the transferee notice of such refusal.

 

9.7                              No fee
for Registration of a Bond Transfer

 

No fee shall be charged for the registration of any Transfer and
Acceptance Form.

 

9.8                              Taking Effect of
Bond Transfers

 

(a)                                  A Transfer and Acceptance Form shall
not take effect until registered and until the transferee is inscribed in the
A$ Register as the holder of the relevant Bonds, the transferor shall remain
the holder of those Bonds.

 

(b)                                 If a Transfer and Acceptance Form is
received by the A$ Registrar during any period when the A$ Register is closed,
the A$ Registrar need not register the Transfer and Acceptance Form until after
the A$ Register is re-opened.

 

9.9                              Transmission of
entitlements

 

(a)                                  (Election) Any person becoming entitled to a
Fast Prepayment Bond as a result of the death, mental incapacity or bankruptcy
of a Bondholder may, upon producing such evidence as the A$ Registrar requires
of the person’s entitlement, either elect to be registered as the Bondholder or
to transfer the relevant Bonds in the manner specified in this clause 9.9.

 

(b)                                 (Method of Election) If such an entitled
person elects to be registered as the Bondholder, the person shall deliver to
the A$ Registrar a notice in writing to that effect signed by the person.  A person who elects to have another person
registered shall execute a Transfer and Acceptance Form in relation to the
relevant Bonds in favour of that person. 
All the provisions of this Deed relating to the transfer of Fast

 

21

 

Prepayment Bonds shall be
applicable to any such notice or Transfer and Acceptance Form as if the death,
mental incapacity or bankruptcy of the relevant Bondholder had not occurred and
the notice or Transfer and Acceptance Form was executed by the relevant Bondholder.

 

(c)                                  (Discharge) A person entitled to a Fast
Prepayment Bond under this clause shall be entitled to receive and may give a
good discharge for all moneys payable in respect of that Bond but, except as
otherwise provided by this Deed, shall not be entitled to any of the rights or
privileges of a Fast Prepayment Bondholder unless and until the person is
entered in the A$ Register as the holder of that Bond.

 

9.10                       Marking of
Transfers

 

(a)                                  The A$ Registrar must, upon request of
a Fast Prepayment Bondholder, mark a Transfer and Acceptance Form with a
certificate to the effect that the Bond referred to in that Transfer and
Acceptance Form is registered in the name of that Bondholder, and that no
transfer of that Bond will be registered other than pursuant to such Transfer
and Acceptance Form for the period specified in such certificate.

 

(b)                                 Where any Transfer and Acceptance Form
is marked pursuant to paragraph (a) above, the A$ Registrar must not, during
the specified period, register any transfer of any Bond referred to in that
Transfer and Acceptance Form except as effected by such Marked T&A.

 

9.11                       Specimen signatures

 

The A$ Registrar may (but need not) require each Fast Prepayment
Bondholder to submit specimen signatures (and in the case of a corporation may
require those signatures to be authenticated by the secretary or director of
such Bondholder) of persons authorised to execute Transfer and Acceptance Forms
on behalf of such Bondholder and shall be entitled to assume (until notified to
the contrary) that such authority has not been revoked.

 

10.                              Registration Confirmations

 

10.1                       Issue of
Registration Confirmation

 

As soon as practicable (and in any event no later than 5 Business Days)
after a person has been entered and inscribed in the A$ Register as the holder
of a Fast Prepayment Bond, the A$ Registrar must issue a Registration
Confirmation to:

 

(a)                                  that person in respect of that Bond;
and

 

(b)                                 if the transferor of that Bond
continues to hold any Fast Prepayment Bond, the transferor in respect of the
Fast Prepayment Bond(s) which it continues to hold.

 

22

 

10.2                       No Certificate of
Title

 

Neither a Registration Confirmation, a Transfer and Acceptance Form nor a
Marked T&A constitutes a certificate of title as to Bonds.

 

10.3                       Joint holdings

 

If a Fast Prepayment Bond is held by more than one person, only the
person whose name appears first in the A$ Register in relation to that Bond
shall be entitled to:

 

(a)                                  be issued a Registration Confirmation
and a Marked T&A; and

 

(b)                                 be paid any moneys or exercise any
other rights in respect of that Bond.

 

11.                              The
Register

 

11.1                       Details
to be kept on the Register

 

The Issuer must, subject to clause 11.8, keep a register in relation to
the Fast Prepayment Bonds (the A$ Register) and a register in relation to the US$ Bonds
(the US$ Register) in
which shall be inscribed the following information in respect of the Fast
Prepayment Bonds or US$ Bonds (as the case may be):

 

(a)                                  the Issue Dates for such Bonds;

 

(b)                                 the number and Face Value of such
Bonds issued on each Issue Date;

 

(c)                                  the Conditions (and any amendments or
variations thereto made pursuant to clause 16) for all such Bonds;

 

(d)                                 the name, address and tax file or tax
identification number of each holder of such Bonds;

 

(e)                                  the number of such Bonds held by each
Bondholder;

 

(f)                                    in the case of Fast Prepayment Bonds,
details of any Registration Confirmation issued to a Bondholder;

 

(g)                                 the date on which a person was entered
as the holder of such Bonds;

 

(h)                                 the date on which a person ceased to
be a Bondholder of such Bonds;

 

(i)                                     the account to which any payments due
to a Bondholder of such Bonds are to be made (if applicable);

 

(j)                                     a record of each payment in respect of
such Bonds (including the then Face Value of such Bonds); and

 

(k)                                  such other information as the Issuer
or the Trust Manager considers necessary or desirable.

 

23

 

11.2                       Place of keeping
Registers, copies and access

 

Each Register must be:

 

(a)                                  kept at the relevant Registrar’s
principal office;

 

(b)                                 open for inspection by a Bondholder
during normal business hours but only in respect of information relating to
that Bondholder; and

 

(c)                                  not available to be copied by any
person (other than the Trust Manager) except in compliance with such terms and
conditions (if any) as the Trust Manager and Issuer in their absolute
discretion may impose.

 

11.3                       A$ Branch Registers

 

(a)                                  The A$ Registrar must if requested by
the Trust Manager establish and maintain a branch register or registers (each
an A$  Branch Register) on
which shall be entered the names of those Bondholders who request that their
names, and the Fast Prepayment Bonds held by them, shall be so recorded, the
Fast Prepayment Bonds in respect of which the request is made, the date on
which the name of any Bondholder was entered on such A$ Branch Register and any
other details considered necessary or desirable by the Issuer or the Trust
Manager.  The name of such Bondholder and
details regarding such Fast Prepayment Bonds shall be removed from the A$
Register other than such A$ Branch Register.

 

(b)                                 Every A$ Branch Register shall be
designated as the A$ Branch Register for the place where it is established.

 

(c)                                  The Trust Manager may direct the A$
Registrar to discontinue an A$ Branch Register and if it does so, the A$
Registrar must transfer all entries from that A$ Branch Register to some other
A$ Branch Register or to the A$ Register as directed by the Trust Manager.

 

(d)                                 Except where otherwise expressly
stated in this Deed or where the context otherwise requires, every reference in
this Deed to the A$  Register shall
include every A$ Branch Register.

 

(e)                                  Bonds registered on an A$ Branch
Register may, at the request of the relevant Bondholder and with the consent of
the A$ Registrar, be transferred to another A$ Branch Register or to the A$
Register.

 

11.4                       Details
on Registers Conclusive

 

A Registrar is:

 

(a)                                  not obliged to enter on any Register
notice of any trust, Security Interest or other interest in respect of any
Bonds;

 

(b)                                 entitled to recognise the person
inscribed as a Bondholder in a Register as the absolute owner of the relevant
Bonds; and

 

24

 

(c)                                  not bound or affected by any trust
affecting the ownership of any Bonds,

 

in each case unless ordered by a court or required by Statute.

 

11.5                       Closing of
Registers

 

(a)                                  (Determining Entitlements) Each Register
shall be closed by the relevant Registrar for the purpose of determining the
Interest Entitlements and entitlements to principal payments of Bondholders
during the period commencing from the Record Date prior to, and ending on the
commencement of business on the Business Day immediately after, each Payment
Date of the relevant Bonds.

 

(b)                                 (In Normal Course) A Registrar may with
prior notice to the relevant Bondholders close a Register for such other
periods as that Registrar may nominate in the notice, provided that the
aggregate period for which a Register may be closed in total (under this
paragraph and paragraph (a)) in any calendar year must not exceed 30 Business
Days or such other period as that Registrar and the Trust Manager may agree.

 

11.6                       Alteration
of details on Registers

 

Upon a Registrar being notified in writing of any change
of name or address or payment or other details of a Bondholder by the relevant
Bondholder, that Registrar must alter the relevant Register accordingly.

 

11.7                       Rectification of
Registers

 

If:

 

(a)                                  an entry is omitted from a Register;

 

(b)                                 an entry is made in a Register
otherwise than in accordance with this Deed;

 

(c)                                  an entry wrongly exists in a Register;

 

(d)                                 there is an error or defect in any
entry in a Register; or

 

(e)                                  default is made or unnecessary delay
takes place in entering in a Register that any person has ceased to be the
holder of a Bond,

 

the relevant Registrar must rectify the same promptly upon becoming aware
of its existence.

 

11.8                       Issuer may appoint
Registrars

 

The Issuer may, and must if required to do so by the Trust Manager,
appoint another person to be the A$ Registrar and/or the US$ Registrar and to
do all of the things which this Deed requires a Registrar to do or contemplates
will be done by it, provided that:

 

(a)                                  the appointment of that person must be
by written agreement between the Issuer, the Trust Manager and the relevant
Registrar;

 

25

 

(b)                                 the Issuer or the Trust Manager on
behalf of the Issuer must exercise its rights and enforce performance by that
person of its obligations under that agreement in accordance with clause 15.3
of the Master Trust Deed; and

 

(c)                                  subject to paragraph (b), neither the
Issuer, the Trust Manager nor the Bond Trustee shall have any liability to any
Bondholder for the performance by that person of its obligations.

 

12.                              Covenants by the Issuer and Trust Manager

 

12.1                       Covenants
by the Issuer and Trust Manager

 

Each of the Issuer and the Trust Manager severally
undertakes to the Bond Trustee, on behalf of the US$ Bondholders, that it will,
for so long as any of the
US$ Bonds remain
outstanding (except to the extent that the Bond Trustee otherwise
consents):

 

(a)                                  (Security
Trust Deed covenants)  comply
with each covenant and undertaking and repeat (on each date specified for
repetition in the Security Trust Deed) each representation and warranty given
by it in the Security Trust Deed;

 

(b)                                 (Notice of Default) in the
case of the Issuer only, provide to the Bond Trustee within 5 Business Days
prior to each anniversary of the date of this Deed and within 5 Business Days
of receiving a request from the Bond Trustee to do so, a report which confirms
that, to the knowledge of the Issuer, no Event of Default nor Potential Event
of Default is subsisting, or giving details of any Event of Default or
Potential Event of Default that is subsisting and any other matter which is
expressly required to be brought to the Bond Trustee’s attention under this
Deed or the Security Trust Deed;

 

(c)                                  (Maintenance
of Office or Agency)  in the
case of the Trust Manager only, maintain, on behalf of the Issuer, in the
Borough of Manhattan, The City of New York an office or agency where US$ Bonds
may be surrendered for registration of transfer or exchange.  The Issuer hereby initially appoints the US$
Registrar to serve as its agent for the foregoing purposes.  The US$ Registrar shall act solely for, and
as agent of, the Issuer and shall not have any obligations towards or
relationship or agency or trust with any other person in respect of its
appointment under this sub-paragraph (c). 
The Trust Manager will give prompt written notice to the Bond Trustee of
the location, and of any change in the location, of any such office or
agency.  If at any time the Trust
Manager, on behalf of the Issuer, fails to maintain any such office or agency
or fails to furnish the Bond Trustee with the address thereof, such surrenders
may be made or served at the Corporate Trust Office and the Issuer hereby
appoints the Bond Trustee as its agent to receive all such surrenders;

 

(d)                                 (Annual
Statement as to Compliance) 
deliver to the Bond Trustee, within 120 days after the end of each
fiscal year of the Fund (commencing on 29 October 2004), and

 

26

 

otherwise
in compliance with the requirements of section 314(a)(4) of the TIA, an
Officer’s Certificate stating that:

 

(i)                                    a review of
the activities of the Issuer in respect of the Fund during such year and of its
performance under the Transaction Documents has been made under supervision of
the person signing the Officer’s Certificate (the Signatory); and

 

(ii)                                 to the best of
the knowledge of the Signatory, based on the review referred to in paragraph
(i), the Issuer has complied with all conditions and covenants under the
Transaction Documents throughout the relevant year, or, if there has been a
default in the compliance of any such condition or covenant, specifying each
such default known to the Signatory and the nature, date of occurrence and
status of the default.

 

For the purposes of this clause 12.1(d) compliance
shall be determined without regard to any period of grace or requirement of
notice under the Transaction Documents;

 

(e)                                  (Opinions as
to Trust Estate)  in the case
of the Trust Manager only, furnish to the Bond Trustee an Opinion of Counsel
either stating that in the opinion of such counsel the Security Trust Deed has
been properly  recorded and filed so as
to make effective the Security Interest intended to be created by the Security
Trust Deed, and reciting the details of such action, or stating that in the
opinion of such counsel no such action is necessary to make such Security
Interest effective (as the case may be).

 

Within 120 days after the end of each fiscal year
commencing on 29 October 2004 the Trust Manager shall furnish to the Bond
Trustee an Opinion of Counsel either stating that in the opinion of such
counsel such action has been taken with respect to the recording, filing,
re-recording and refiling of the Security Trust Deed as is necessary to
maintain the Security Interest created by the Security Trust Deed, and reciting
the details of such action, or stating that in the opinion of such counsel no
such action is necessary to maintain such Security Interest (as the case may
be);

 

(f)                                    (Bondholders
Report)  in the case of the
Trust Manager only, deliver to the Principal Paying Agent, the Issuer and the
Bond Trustee within 5 Business Days of each Payment Date, the Bondholders
Report for the related Calculation Period, with written instructions for the
Bond Trustee to forward the Bondholders Report to each US$ Bondholder.  Each Bondholders Report shall contain the
information set out in Schedule 8;

 

(g)                                 (Notices)  provide a copy of each notice required to be
given to the US$ Bondholders under the Transaction Documents to the Bond
Trustee prior to such notice being given to the US$ Bondholders; and

 

(h)                                 (Listing)  in the case of the Issuer only, it will use
its best endeavours to:

 

27

 

(i)                                    obtain and maintain the
listing of the US$ Bonds on the Irish Stock Exchange (including compliance with
the continuing obligations applicable to the Issuer by virtue of the admission
of the US$ Bonds, on the Irish Stock Exchange) or, if it is unable to do so
having used best endeavours, use best endeavours to obtain and maintain a
quotation or listing of the US$ Bonds on any other stock exchange or exchanges
or securities market or markets as the Trust Manager decides and following that
quotation or listing enter into a deed supplemental to this Deed to effect such
consequential amendments to this Deed necessary to comply with the requirements
of any such stock exchange or securities market; and

 

(ii)                                 procure that there will
at all times be furnished to the Irish Stock Exchange (or to any other relevant
stock exchange or securities market) any information which the Irish Stock
Exchange or, as the case may be, any other such stock exchange or securities
market, may require to be furnished in accordance with its requirements.

 

12.2                       Covenant by the Trust Manager

 

(a)                                  Without limiting any other obligation
of the Trust Manager under any Transaction Document, as soon as practicable
upon reasonable request by the Issuer, the Trust Manager must:

 

(i)                                    provide to the Issuer all information,
notices, certificates, consents, approvals and other documents available to the
Trust Manager and necessary to enable the Issuer to comply with its obligations
under each of the TIA and the Exchange Act; and

 

(ii)                                 take such other actions as the Issuer
may reasonably require to assist the Issuer to comply with its obligations under
each of the TIA and the Exchange Act,

 

and the Trust Manager agrees that any breach by the Issuer of any
obligation under any of the TIA, the Exchange Act or this Deed will not be
considered to be neglect, default or breach of duty for the purposes of
clause 1.5 to the extent that it results from a breach by the Trust
Manager of this clause 12.2(a).

 

(b)                                 Upon receiving notice of any amendment
to any provision of the TIA or the Exchange Act which has the effect of
changing the obligations of the Issuer referred to in paragraph (b), the Trust
Manager must, as soon as practicable, notify the Issuer of such amendment and
consult with the Issuer as to any action the Issuer should take as a result of
such amendment in order to comply with its obligations under the TIA and the
Exchange Act (as so amended).

 

28

 

13.                              Remuneration and expenses

 

(a)                                  (Fees)  The Issuer agrees to pay to the Bond Trustee
as its sole remuneration for undertaking its obligations under this Deed the
fees agreed between the Bond Trustee and the Trust Manager, on behalf of the
Issuer, on or before the date of this Deed.

 

(b)                                 (No claim against Issuer)  The Bond Trustee agrees that it has no claim
against the Issuer for payment of expenses other than under and in accordance with clause 10.2 of the
Security Trust Deed or Condition 4.4.

 

14.                              Removal and retirement of Bond Trustee

 

14.1                       Removal

 

If:

 

(a)                                  (Ceases business) the Bond Trustee ceases
its business;

 

(b)                                 (Failure to comply) the Bond Trustee fails
to comply with any of its obligations under any Transaction Document and such
failure has had, or if continued will have, a Material Adverse Effect (as
determined by the Trust Manager) and, if capable of remedy, the Bond Trustee
does not remedy the failure within 10 Business Days after the earlier of:

 

(i)                                    the Bond Trustee becoming aware of the
failure; and

 

(ii)                                 receipt by the Bond Trustee of a
written notice in respect of the failure from either the Trust Manager or the
Issuer;

 

(c)                                  (Insolvent) an Event of Insolvency occurs in
relation to the Bond Trustee;

 

(d)                                 (Extraordinary Resolution) an Extraordinary
Resolution of the US$ Bondholders is passed that the Bond Trustee be removed from office; or

 

(e)                                  (TIA) the Bond Trustee fails to comply with
any obligation imposed on it under the TIA with respect to the Fund or this
Deed or to comply with this clause 14,

 

the Trust Manager may (or in the case of clause 14.1(d), must), subject
to the following provisions of this clause 14, by at least 5 Business Days’
written notice to the Bond Trustee, remove the Bond Trustee from office.

 

14.2                       Retirement of Bond
Trustee

 

The Bond Trustee may, subject to the following provisions of this clause
14, retire at any time upon giving not less than 2 months notice in writing (or
such shorter period as the parties may agree) to the Issuer, the Trust Manager
and each US$ Bondholder.

 

14.3                       Removal
or retirement not effective

 

No removal or retirement of the Bond Trustee under this clause 14 is
effective unless and until:

 

29

 

(a)                                  a new Bond Trustee that is a Trust
Corporation has accepted the office of Bond Trustee pursuant to clause 14.4;
and

 

(b)                                 the Trust Manager has received
confirmation from Moody’s (such confirmation not to be unreasonably withheld or
delayed) that the appointment of the new Bond Trustee will not result in the
credit rating of any Bond being less than the Designated Rating, qualified or
withdrawn.  For the avoidance of doubt,
the Trust Manager is responsible for obtaining such confirmation from Moody’s.

 

14.4                       Appointment of new
Bond Trustee

 

(a)                                  Subject to clauses 14.1(d), 14.4(c),
14.12 and paragraph 17(f) of the Meetings Procedures, the power of appointing a
new Bond Trustee is vested in the Trust Manager.

 

(b)                                 The Trust Manager agrees that if the
Bond Trustee retires or is removed from office in accordance with this Deed, it
will use its best endeavours to appoint a new Bond Trustee as soon as
reasonably practicable.

 

(c)                                  If the Trust Manager fails to appoint
a new Bond Trustee by the date that is one month prior to the date of the Bond
Trustee’s proposed retirement or removal, the Bond Trustee may:

 

(i)                                    itself appoint a successor; or

 

(ii)                                 petition a court of competent
jurisdiction for the appointment of a successor.  The cost of any such petition will be an Expense of the Issuer in relation to the
Fund.

 

(d)                                 If the Trust Manager and/or the Bond
Trustee do not appoint, or cannot find a person to act as, a new Bond Trustee,
the US$ Bondholders may, subject to this clause 14, appoint a US$ Bondholder as
the new Bond Trustee.

 

14.5                       Bond
Trust Fund to be vested in new Bond Trustee

 

Upon retiring or being removed from office, the Bond Trustee (the Outgoing Bond Trustee)
must execute all documents and do all things necessary to vest the Bond Trust
Fund or cause it to be vested, in the person appointed as the successor Bond
Trustee (the Incoming Bond Trustee).

 

14.6                       Release
of outgoing Bond Trustee

 

Upon retirement or removal, the Outgoing Bond Trustee shall have no
further obligations under any Transaction Document, but retirement or removal
will not affect any of the rights, obligations or liabilities of the Outgoing
Bond Trustee accrued or arising before retirement or removal.

 

30

 

14.7                       Incoming
Bond Trustee to execute documents

 

The Incoming Bond Trustee must execute all documents as the Issuer
requires to:

 

(a)                                  assume with effect from the date its
appointment becomes effective, all of the rights, powers, discretions and
obligations of the Bond Trustee under each Transaction Document as if the
Incoming Bond Trustee had originally been a party to each Transaction Document
as the Bond Trustee; and

 

(b)                                 indemnify the Outgoing Bond Trustee
for all liabilities and expenses incurred by the Outgoing Bond Trustee for
which it is entitled to be indemnified out of the Bond Trust and which have not
been recouped by it, provided that the liability of the Incoming Bond Trustee
under such indemnity shall be limited to the assets of the Bond Trust and any
payment shall rank the same priority as the corresponding liability for which
the Outgoing Bond Trustee claims such indemnification.

 

14.8                       Settlement
amounts payable to outgoing Bond Trustee

 

The Issuer or the Trust Manager must:

 

(a)                                  settle with the Outgoing Bond Trustee
the amount of any sums payable by the Outgoing Bond Trustee to the Issuer, the
Trust Manager or the Incoming Bond Trustee and by the Issuer, the Trust Manager
or the Incoming Bond Trustee to the Outgoing Bond Trustee; and

 

(b)                                 give or accept from the Outgoing Bond
Trustee a discharge in respect thereof.

 

Any such settlement or discharge shall (except in the case of any fraud,
negligence or wilful default on the part of the Outgoing Bond Trustee or its
officers, employees, agents and delegates) be conclusive and binding upon all
persons.

 

14.9                       Outgoing
Bond Trustee to retain lien

 

Notwithstanding the retirement or removal of the Outgoing Bond Trustee
and the indemnity in favour of the Outgoing Bond Trustee by the Incoming Bond
Trustee as contemplated by clause 14.7, the Outgoing Bond Trustee will retain a
lien over the Bond Trust to meet claims of any creditors of the Outgoing Bond
Trustee as trustee of the Bond Trust, to the extent that the claims of those
creditors are not properly and duly satisfied by the Incoming Bond Trustee.

 

14.10                Delivery of
documents

 

The Outgoing Bond Trustee must immediately upon termination of its
appointment becoming effective deliver to the Incoming Bond Trustee (or at its
direction) all books, documents, records and property relating to the Bond
Trust.  The Outgoing Bond Trustee is
entitled to take, and keep copies of such books, documents and records.  The Incoming Bond Trustee must produce the
originals of such books, documents and records in its possession upon the
giving of reasonable written notice by the Outgoing Bond Trustee.

 

31

 

14.11                Notice
to Bondholders of new Bond Trustee

 

The Incoming Bond Trustee or the Trust Manager must give notice to each
Designated Rating Agency and each US$ Bondholder as soon as practicable
following the appointment of the Incoming Bond Trustee.

 

14.12                No ratings
downgrade

 

The Trust Manager must exercise the power of appointment conferred by
clause 14.4 in such a way that the appointment of the Incoming Bond Trustee
does not cause the credit rating assigned by each of the Designated Rating
Agencies to the US$ Bonds issued prior to, or to be issued by the Issuer
following, such appointment to be less than the relevant Designated Rating,
qualified or withdrawn.

 

14.13                Eligibility; Disqualification

 

(a)                                  The Bond
Trustee must at all times satisfy the requirements of section 310(a) of the
TIA.

 

(b)                                 The Bond
Trustee must have a combined capital and surplus (as those terms are used in
the TIA) of at least US$50,000,000 as set forth in its most recent published
annual report of condition of the Bond Trustee.

 

(c)                                  The Bond
Trustee must comply with section 310(b) of the TIA, provided that any indenture
or indentures under which other securities of the Issuer are outstanding shall
be excluded from the operation of section 310(b)(1) of the TIA for the purposes
of paragraph (b) if the requirements for such exclusion set out in section
310(b)(1) of the TIA are met.

 

14.14                Requirement for Bond Trustee

 

Notwithstanding anything in this Deed to the contrary, no person shall
become a Bond Trustee under this Deed unless it meets the requirements of
Section 26(a)(1) of the United States Investment Company Act of 1940, as
amended (the Investment Company Act).

 

15.                              Substitution
of Issuer

 

15.1                       Incoming Trustee to
be Issuer

 

If:

 

(a)                                  the Issuer, as Outgoing Trustee,
retires or is removed from office as trustee of the Fund in accordance with
clause 17 of the Master Trust Deed;

 

(b)                                 the Outgoing Trustee and the Incoming
Trustee have executed all documents and done all things necessary to vest all
of the Assets of the Fund in the Incoming Trustee (as contemplated by clause
17.5 of the Master Trust Deed);

 

32

 

(c)                                  the Incoming Trustee has assumed all
of the rights, powers, discretions and obligations of the Outgoing Trustee,
including (without limitation) under each Paying Agency Agreement, but
excluding under this Deed and the Bonds (as contemplated by clause 17.7 of the
Master Trust Deed);

 

(d)                                 the Incoming Trustee has executed all
such documents and done all such things as are necessary to ensure that all of
the Charged Property continues to be charged to the Security Trustee for the
benefit of the Secured Creditors, upon and subject to the terms and conditions
of this Deed; and

 

(e)                                  all necessary Approvals of any
Government Body have been obtained,

 

then the Outgoing Trustee and the Incoming Trustee may by written notice
to all Secured Creditors with effect from the date (the Substitution Date) specified in the notice
(which must be not less than 5 Business Days after the date on which the notice
is given) substitute the Incoming Trustee as the obligor in respect of the
Bonds in place of the Outgoing Trustee.

 

15.2                       Effect of
Substitution

 

If the Issuer, as Outgoing Trustee, and the Incoming Trustee give a
notice in accordance with clause 15.1 on and with effect from the Substitution
Date, and without the need for any person to do any other act or thing:

 

(a)                                  the Incoming Trustee shall be bound by
the terms and conditions of the Security Trust Deed, this Deed and by the Bonds
and the Conditions relating to them; and

 

(b)                                 the Outgoing Trustee shall cease to
have any obligations under the Security Trust Deed, this Deed or the Bonds or
the Conditions relating to them.

 

16.                              Amendment

 

(a)                                  Subject to paragraph (b), this Deed
(including this clause 16 and any of the Conditions) may only be amended in
accordance with clause 15.1 of the Security Trust Deed.

 

(b)                                 No amendment to this Deed will be
effective unless:

 

(i)                                    such amendment conforms to the
requirements of the TIA; and

 

(ii)                                 after such amendment, this Deed (as
amended) is qualified under the TIA.

 

In this regard, the Security Trustee and the Bond Trustee are entitled to
rely on the advice of the Trust Manager, the Bond Trustee (in the case of the
Security Trustee) and/or their respective US legal counsel.

 

33

 

17.                              Bondholders’ Lists and Reports

 

17.1                       Provision of information

 

The Trust Manager, on behalf of the Issuer, will
furnish or cause to be furnished to the Bond Trustee:

 

(a)                                  every six
months (with the first six month period commencing on the Initial Issue Date)
(each such date being a Notice Date), a list, in such form as the Bond Trustee
may reasonably require, of the names and addresses of the US$ Bondholders as of
the Record Date immediately preceding that Notice Date; and

 

(b)                                 at such other
times as the Bond Trustee may request in writing, within 30 days after receipt
by the Trust Manager with a copy provided to the Issuer of any such request, a
list of similar form and content as of a date not more than 10 days prior to
the time such list is furnished,

 

provided that so long as:

 

(c)                                  the Bond
Trustee is the US$ Registrar; or

 

(d)                                 the US$ Bonds
are Global Bonds,

 

no such list shall be required to be furnished.

 

17.2                       Preservation of Information; Communications to US$
Bondholders

 

(a)                                  The Bond
Trustee shall preserve, in as current a form as is reasonably practicable, the
names and addresses of the US$ Bondholders contained in the most recent list
(if any) furnished to the Bond Trustee as provided in clause 17.1 and if it
acts as US$ Registrar, the names and addresses of US$ Bondholders received by
the Bond Trustee in its capacity as US$ Registrar.  The Bond Trustee may destroy any list furnished to it as provided
in such clause 17.1 upon receipt of a new list so furnished.

 

(b)                                 US$
Bondholders may communicate pursuant to section 312(b) of the TIA with other
US$ Bondholders with respect to their rights under this Deed or under the US$
Bonds.

 

(c)                                  The Issuer,
the Bond Trustee and the US$ Registrar shall have the protection of section
312(c) of the TIA.

 

17.3                       Reports by Bond Trustee

 

If required by section 313(a) of the TIA, within
60 days after each 30 June, beginning with 30 June 2004, the Bond Trustee must
mail to each US$ Bondholder, the Issuer and the Trust Manager as required by
section 313(c) of the TIA a brief report dated as of such date that complies
with section 313(a) of the TIA.  The
Bond Trustee must also comply with section 313(b) of the TIA.  A copy of each report at the time of its
mailing to US$ Bondholders must be filed by the Bond Trustee with the
Commission and each stock exchange, if any, on which

 

34

 

the US$ Bonds are listed.  The Trust Manager, on behalf of the Issuer,
must notify the Bond Trustee if and when the US$ Bonds are listed on any stock
exchange.

 

17.4                       Reports by Issuer

 

The Issuer (or the Trust Manager on its behalf)
must:

 

(a)                                  file with the
Bond Trustee, within 15 days after the Issuer is required to file the same with
the Commission, copies of the annual reports and of the information, documents
and other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which the
Issuer is required to file with the Commission pursuant to section 13 or 15(d)
of the Exchange Act;

 

(b)                                 file with the
Bond Trustee and the Commission in accordance with the rules and regulations
prescribed from time to time by the Commission such additional information,
documents and reports with respect to compliance by the Issuer with the
conditions and covenants of this Deed as may be required from time to time by
such rules and regulations; and

 

(c)                                  supply to the
Bond Trustee (and the Bond Trustee must transmit the same by mail to all US$
Bondholders described in section 313(c) of the TIA) such summaries of any
information, documents and reports required to be filed by the Issuer pursuant
to clauses (a) and (b) of this clause 17.4 as may be required by rules and
regulations prescribed from time to time by the Commission.

 

18.                              Trust Indenture Act - Miscellaneous

 

18.1                       Compliance Certificates and Opinions, etc

 

(a)                                  Upon any
application or request by the Issuer or the Trust Manager to the Bond Trustee
to take any action under any provision of this Deed, the Issuer (or the Trust
Manager on its behalf) must furnish to the Bond Trustee:

 

(i)                                    an Officer’s
Certificate stating that all conditions precedent, if any, provided for in this
Deed relating to the proposed action have been complied with;

 

(ii)                                 an Opinion of
Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with; and

 

(iii)                              (if required
by the TIA) an Independent Certificate from a firm of certified public
accountants meeting the applicable requirements of section 314(c)(3) of the
TIA, except that, in the case of any such application or request as to which
the furnishing of such documents is specifically required by any provision of
this Deed, no additional certificate or opinion need be furnished.

 

35

 

(b)                                (i)                                     Prior to the
deposit of any property or securities with the Issuer that is to be made the
basis for the release of any property or securities subject to the Security
Interest created by the Security Trust Deed, the Issuer (or the Trust Manager
on its behalf) must, in addition to any obligation imposed in clause 18.1(a) or
elsewhere in this Deed, furnish to the Bond Trustee an Officer’s Certificate
certifying or stating the opinion of each person signing such certificate as to
the fair value (within 90 days of such deposit) of the property or securities
to be so deposited.

 

(ii)                                 Whenever any
property or securities are to be released from the Security Interest created by
the Security Trust Deed, the Issuer must also furnish to the Bond Trustee an
Officer’s Certificate certifying or stating the opinion of each person signing
such certificate as to the fair value (within 90 days of such release) of the
property or securities proposed to be released and stating that in the opinion
of such person the proposed release will not impair the security under the
Security Trust Deed in contravention of the provisions of the Security Trust
Deed or this Deed.

 

(iii)                              Whenever the
Issuer is required to furnish to the Bond Trustee an Officer’s Certificate
certifying or stating the opinion of any signer thereof as to the matters
described in paragraphs (i) and (ii), the Issuer (or the Trust Manager on its
behalf) must also furnish to the Bond Trustee an Independent Certificate as to
the same matters if the fair value of the property or securities and of all
other property or securities deposited or released from the Security Interest
created by the Security Trust Deed since the commencement of the then current
calendar year, as set forth in the certificate required by clause (ii) and this
clause (iii), equals 10% or more of the aggregate Face Value of the US$ Bonds
at that time, but such certificate need not be furnished in the case of any
release of property or securities if the fair value thereof as set forth in the
related Officer’s Certificate is less than US$25,000 or less than one percent
of the aggregate Face Value of the US$ Bonds at that time.

 

(iv)                             Notwithstanding any other provision of
this clause, the Issuer may collect, liquidate, sell or otherwise dispose of
the Assets of the Fund as and to the extent permitted or required by the
Transaction Documents.

 

(c)                                  Every
Officer’s Certificate or opinion with respect to compliance with a condition or
covenant provided for in this Deed must include:

 

(i)                                    a statement
that each signatory of such certificate or opinion has read or has caused to be
read such covenant or condition and the definitions herein relating thereto;

 

36

 

(ii)                                 a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based;

 

(iii)                              a statement
that, in the opinion of each such signatory, such signatory has made such
examination or investigation as is necessary to enable such signatory to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and

 

(iv)                             a statement as
to whether, in the opinion of each such signatory, such condition or covenant
has been complied with.

 

18.2                       Exclusion of section 316

 

(a)                                  Section
316(a)(1) of the TIA is expressly excluded by this Deed.

 

(b)                                 For the
purposes of section 316(a)(2) of the TIA, in determining whether any US$
Bondholders have concurred in any relevant direction or consent, US$ Bonds owned
by the Issuer or by any Associate of the Issuer, shall be disregarded, except
that for the purposes of determining whether the Bond Trustee shall be
protected in relying on any such direction or consent, only US$ Bonds which the
Bond Trustee knows are so owned shall be so disregarded.

 

18.3                       Unconditional Rights of US$ Bondholders to Receive
Principal and Interest

 

Notwithstanding any other provisions in this Deed,
each US$ Bondholder shall have a right, which is absolute and unconditional, to
receive payment of the principal and interest on each US$ Bond held by it on or
after the respective due dates for payment and to institute suit for the
enforcement of any such payments, and such right shall not be impaired, without
the consent of such US$ Bondholder, except to the extent that the institution
or prosecution thereof or the entry of judgment therein would, under applicable
law, result in the surrender, impairment, waiver, or loss of the Security
Interest created by the Security Trust Deed upon any property subject to such
Security Interest.

 

18.4                       Conflict with Trust Indenture Act

 

(a)                                  If any
provision of this Deed limits, qualifies or conflicts with another provision of
this Deed that is required to be included in this indenture by any of the
provisions of the TIA, such required provision shall prevail.

 

(b)                                 The provisions
of section 310 to 317 (inclusive) of the TIA that impose duties on any person
(except to the extent expressly excluded in this Deed) form part of this Deed,
whether or not contained expressly  in
this Deed.

 

19.                              Meetings

 

The Meetings Procedures apply to all meetings and resolutions of
Bondholders.

 

37

 

20.                              Limited Responsibilities of Bond Trustee

 

20.1                       Limited Responsibilities

 

Subject to clause 21.1, the parties agree that:

 

(a)                                  any advice,
opinion or information obtained by the Bond Trustee from any lawyer, valuer,
accountant, banker, broker, credit-rating agency, lead manager or other expert
may be sent or obtained by letter, telex, telegram, facsimile transmission,
email or cable and the Bond Trustee shall not be liable for acting on any
advice, opinion or information purporting to be conveyed by any such letter,
telex, telegram, facsimile transmission, email or cable although the same shall
contain some error or shall not be authentic;

 

(b)                                 the Bond
Trustee may call for and shall be at liberty to accept as sufficient evidence
of any fact or matter or the expediency of any transaction or thing, a
certificate signed by two Authorised Signatories of the Issuer or the Trust
Manager (as the case may be) and the Bond Trustee shall not be bound in any
such case to call for further evidence or be responsible for any loss that may
be occasioned by the Bond Trustee acting on that certificate;

 

(c)                                  the Bond
Trustee is at liberty to hold or to place this Deed and any other documents
relating to this Deed in any part of the world with any banker or banking
company or company whose business includes undertaking the safe custody of
documents or lawyer or firm of lawyers reasonably considered by the Bond
Trustee to be of good repute;

 

(d)                                 except in the
case of fraud, negligence or wilful default of the Bond Trustee, the Bond
Trustee shall not be responsible for any loss, expense or liability which may
be suffered as a result of any Secured Property or any deed or documents of
title  to the Secured Property being
uninsured or inadequately insured or being held by or to the order of any
clearing organisations or their operators or by any person on behalf of the
Bond Trustee if prudently chosen by the Bond Trustee in accordance with the
Transaction Documents;

 

(e)                                  the Bond
Trustee shall not be responsible for the application of the Issue Proceeds of
the US$ Bonds by the Issuer or any moneys borrowed by the Issuer under any
Transaction Document or the exchange of any Global Bond for any Definitive
Bonds;

 

(f)                                    except as
otherwise provided in this Deed or any other Transaction Document to which it
is a party, the Bond Trustee shall not be bound to give notice to any person of
the execution of this Deed or any other Transaction Document or any transaction
contemplated by this Deed or any Transaction Document or to take any steps to
ascertain whether any Event of Default has occurred and, until it has knowledge
or notice to the contrary, the Bond Trustee is entitled to assume that no Event
of Default

 

38

 

has
occurred and that the Issuer and each other party to each Transaction Document
are observing and performing their respective obligations;

 

(g)                                 save as
expressly otherwise provided in this Deed or any other Transaction Document:

 

(i)                                    the Bond
Trustee shall have absolute and uncontrolled discretion as to the exercise of
the discretions vested in it by this Deed and each other Transaction Document
(the exercise of which as between the Bond Trustee and the US$ Bondholders shall be conclusive and
binding on the US$
Bondholders) but whenever the Bond Trustee is under the provisions of this Deed or
any other Transaction Document bound to act at the request or direction of a
particular Class of US$
Bondholders, or any of them, the Bond Trustee shall not be so bound unless it is
first indemnified or accepts security to its satisfaction against all actions,
proceedings, claims and demands to which it may render itself liable and all
costs, charges, damages, expenses and liabilities which it may incur by so
doing; and

 

(ii)                                 in the absence
of fraud, negligence or wilful default, the Bond Trustee shall not be in any
way responsible for any loss (whether consequential or otherwise), costs,
damages or inconvenience that may result from the exercise or non-exercise of
any powers, authorities and discretions vested in it;

 

(h)                                 the Bond
Trustee shall not be liable for acting upon any resolution purporting to have
been passed at any meeting of the US$ Bondholders in respect of which minutes have been made and signed
even though subsequently it may be found that there was some defect in the
constitution of the meeting or the passing of the resolution or that for any
reason the resolution was not valid or binding upon the US$ Bondholders;

 

(i)                                     the Bond
Trustee shall not be liable to the Issuer or any US$ Bondholder by reason of having
accepted as valid or not having rejected any entry in the US$ Register which is
subsequently found to be incorrect and the Bond Trustee shall be at liberty to
accept and place full reliance on the US$ Register as complete and accurate
evidence to the effect that at any particular time or through any particular period
any particular person is, was, or will be, shown in its records as entitled to
a particular number of US$
Bonds;

 

(j)                                     any consent or
approval given by the Bond Trustee for the purpose of this Deed or any other
Transaction Document may be given on any terms and subject to any conditions as
the Bond Trustee thinks fit and despite anything to the contrary contained in
this Deed or any other Transaction Document may be given retrospectively;

 

(k)                                  save as
otherwise expressly provided in this Deed or any other Transaction Document,
the Bond Trustee shall not (unless and to the extent ordered so to do by a
court of competent jurisdiction) be required to disclose to any US$ Bondholder or any Secured Creditor,
any information made available to the Bond Trustee by the Issuer, the Trust

 

39

 

Manager
or any other person in connection with the Bond Trust and no US$ Bondholder shall be
entitled to take any action to obtain from the Bond Trustee any such
information;

 

(l)                                     where it is
necessary or desirable for any purpose in connection with this Deed to convert
any sum from one currency to another it shall (unless otherwise provided by
this Deed or any other Transaction Document or required by law) be converted at
the rate or rates, in accordance with the method and as at the date for the
determination of the rate of exchange, as may be agreed by the Bond Trustee in
consultation with the Issuer and the Trust Manager as  relevant and any rate,
method and date so agreed shall be binding on the Issuer and the US$ Bondholders;

 

(m)                               the Bond
Trustee shall not be bound to take any steps to ascertain whether any event,
condition or act, the happening of which would cause a right or remedy to
become exercisable by the Bond Trustee under this Deed or by the Issuer under
any of the Transaction Documents has happened or to monitor or supervise the
observance and performance by the Issuer or any other party of their respective
obligations under any Transaction Document and, until it has knowledge or
notice to the contrary, the Bond Trustee shall be entitled to assume that no
such event, condition or act has happened and that the Issuer and each of other
party to the Transaction Documents are observing and performing all their
respective obligations under those Transaction Documents;

 

(n)                                 the Bond
Trustee shall not be responsible for recitals, statements, warranties or
representations of any party (other than itself) contained in any Transaction
Document or other document entered into in connection with any Transaction
Document and shall assume the accuracy and correctness of all such recitals,
statements, warranties and representations and (except with respect to itself)
the execution, legality, effectiveness, adequacy, genuineness, validity or
enforceability or admissibility in evidence of each such document and any
security constituted by such document. 
The Bond Trustee may accept without enquiry, requisition or objection
all title as the Issuer may have to any of the Secured Property or as any other  person
may have to any other security charged from time to time to the Security
Trustee  and
shall  not
be bound to investigate or make any enquiry in the title of the Issuer to any
of the Secured Property or the title of any other person to any other security
charged from time to time to the Security Trustee whether or not any default or
failure might be, or might have been, discovered upon examination inquiry or
investigation and whether or not capable of remedy.  Notwithstanding the generality of the foregoing, each US$ Bondholder is solely responsible
for making its own independent appraisal of and investigation into the Fund and
the US$ Bonds and the Bond
Trustee shall not at any time have any responsibility for the same and no US$ Bondholder  shall rely on the Bond
Trustee in that respect;

 

40

 

(o)                                 the Bond
Trustee shall not be liable for any failure, omission or defect in filing or
procuring registration of, or otherwise protecting or perfecting, the Security
Trust Deed, the Secured Property or any other security or failure to call for
or delivery of documents of title to the Secured Property or any other security
or to require any further assurances in relation to any property or assets
comprised in the Secured Property or any other security;

 

(p)                                 the Bond
Trustee shall, as regards all the powers, trusts, authorities, duties and
discretions vested in it by this Deed, the Transaction Documents or the US$ Bonds, except where expressly
provided otherwise, have regard to the interests of the US$ Bondholders;

 

(q)                                 without
prejudice to the provisions of any Transaction Document, the Bond Trustee shall
not be under any obligation to insure any of the Secured Property (or any other
property) or any deeds or documents of title or other evidence relating to that
property;

 

(r)                                    the Bond
Trustee shall not be responsible for any loss, expense or liability (including,
without limitation, any decline in value or loss realised upon any sale or
disposition made under the Security Trust Deed) occasioned to the Secured
Property or any other property however caused (including any bank, broker,
depository, warehouseman or other intermediary or any clearing system or its
operator acting in accordance with or contrary to the terms of any of the
Transaction Documents or otherwise), unless that loss is occasioned by the
fraud, negligence, or wilful default of the Bond Trustee;

 

(s)                                  the Bond
Trustee has no responsibility whatsoever to the Issuer or any US$ Bondholder as regards any
deficiency or additional payment, as the case may be, which might arise because
the Bond Trustee or the Issuer is subject to any Tax in respect of the Secured
Property, the Security Trust Deed or any other security, income or proceeds
from them;

 

(t)                                    the Bond
Trustee shall not be liable in respect of any failure to perform or do any act
or thing which, by reason of any applicable law, ordinance, rule, regulation or
by-law or any decree, order or judgment of any competent court or other
tribunal, the Bond Trustee is prevented or forbidden from performing or doing;

 

(u)                                 the Bond
Trustee is not responsible (except as to itself) for the genuineness, validity,
effectiveness or suitability of any of the Transaction Documents or any of the
Mortgages, Security Interests or other documents entered into in connection
with them or any Mortgage Insurance Policy or the priority constituted by or
purported to be constituted by or pursuant to any Security Interest, nor shall
it (except as to itself) be responsible or liable to any person because of any
invalidity of any provision of those documents or the unenforceability of those
documents, whether arising from statute, law or decision of any court and
(without limitation) the Bond Trustee shall

 

41

 

not be responsible for or have
any duty to make any investigation in respect of or in any way be liable
whatsoever for:

 

(i)                                    the nature,
status, creditworthiness or solvency of any Borrower or any other person or
entity who has at any time provided any security or support whether by way of
guarantee, Security Interest or otherwise in respect of any advance made to any
Borrower;

 

(ii)                                 the execution,
legality, validity, adequacy, admissibility in evidence or enforceability of any
Mortgage or Loan or any other document entered into in connection with them;

 

(iii)                              the title,
ownership, value, sufficiency or existence of any Land, Secured Property or any
Mortgage Insurance Policy;

 

(iv)                             the
registration, filing, protection or perfection of any Mortgage or the priority
of the security created under a Mortgage whether in respect of any initial
advance or any subsequent advance or any other sums or liabilities;

 

(v)                                the scope or
accuracy of any representations, warranties or statements made by or on behalf
of any Borrower in any application for any advance or in any Mortgage or Loan
or in any document entered into in connection with them;

 

(vi)                             the
performance or observance by any Borrower or any other person of any provisions
of any Mortgage or Loan or in any document entered into in connection with them
or the fulfilment or satisfaction of any conditions contained in them or
relating to them or as to the existence or occurrence at any time of any
default, event of default or similar event contained in them or any waiver or
consent which has at any time been granted in relation to any of the above;

 

(vii)                          the existence,
accuracy or sufficiency of any legal or other opinions, searches, reports,
certificates, valuations or investigations delivered or obtained or required to
be delivered or obtained at any time in connection with any Mortgage or Loan;

 

(viii)                       the title of
the Issuer to any Mortgage or Loan or other Secured Property;

 

(ix)                               the
suitability, adequacy or sufficiency of any guidelines under which Loans are
entered into or compliance with those guidelines or compliance with any
applicable criteria for any further advances or the legality or ability or
enforceability of the advances or the priority of the Mortgages in relation to
the advances;

 

(x)                                  the compliance
of any person with the provisions and contents of and the manner and
formalities applicable to the execution of the Mortgages and Loans and any
documents connected with them or the making of any advance

 

42

 

intended to be secured by them
or with any applicable laws or regulations (including the Consumer Credit Code
and the Consumer Credit Regulations);

 

(xi)                               the failure of
the Master Servicer, the Trust Manager or the Issuer to obtain or comply with
any authorisation in connection with the origination, sale, purchase or
administration of any of the Mortgages or Loans or the making of any advances
in connection with them or the failure to effect or procure registration of or to
give notice to any person in relation to or otherwise protect the security
created or purported to be created by or pursuant to any of the Mortgages or
Loans or other documents entered into in connection with them;

 

(xii)                            the failure to
call for delivery of documents of title to or require any transfers, legal
mortgages, charges or other further assurances in relation to any of the assets
the subject matter of any of the Transaction Documents or any other document;

 

(xiii)                         any accounts,
books, records or files maintained by the Master Servicer, the Issuer, the
Trust Manager or any other person in respect of any of the Mortgages or Loans;
or

 

(xiv)                        any other
matter or thing relating to or in any way connected with any Mortgage or Loan
or any document entered into in connection with any Mortgage or Loan whether or
not similar to the above;

 

(v)                                 the Bond
Trustee is not liable in respect of it being treated as, or being deemed to be,
a credit provider, for the purposes of the Consumer Credit Code, in respect of any
of the Mortgages;

 

(w)                               in connection
with any proposed modification, waiver, authorisation or determination
permitted by this Deed, the Bond Trustee shall not have regard to the
consequences thereof for individual US$ Bondholders resulting from their being for any purpose domiciled
or resident in, or otherwise connected with, or subject to, the jurisdiction of
any particular territory;

 

(x)                                   except as
otherwise provided in this Deed or any other Transaction Document, the Bond
Trustee shall have no responsibility for the maintenance of any rating of any US$ Bonds by a Designated Rating
Agency or any other credit-rating agency or any other person;

 

(y)                                 the Bond
Trustee shall be under no obligation to monitor or supervise the functions of
any person under any Authorised Investment, Mortgage, Loan or Transaction
Document or any other deed, agreement or arrangement incidental to any of the
above, and is entitled, in the absence of knowledge of a breach of duty or
obligation, to assume that each person is properly performing its obligations
in accordance with each Authorised Investment, Mortgage, Loan and Transaction
Document;

 

43

 

(z)                                   subject to
Condition 4.8, the Bond Trustee acknowledges that the Calculation Agent is
responsible, under the Paying Agency Agreement, for calculating all amounts
referred to in Condition 4.7 and the Bond Trustee has no liability in respect
of these calculations;

 

(aa)                            the Bond
Trustee shall comply with section 311(a) of the TIA, excluding any creditor
relationship listed in section 311(b) of the TIA.  A Bond Trustee who has resigned or been removed shall be subject
to section 311(a) of TIA only to the extent required by the TIA;

 

(bb)                          the Bond
Trustee may act on any opinion, statement, certificate, advice or other
information obtained from the Security Trustee, an attorney, barrister,
solicitor (whether instructed by the Bond Trustee or not), banker, accountant,
broker, valuer or other person believed by it in good faith to be an expert in
relation to the matters the subject of such opinion, statement, certificate,
advice or other information and shall not be liable for anything suffered by it
in good faith in reliance on such opinion, statement, certificate, advice or
information; and

 

(cc)                            subject to
this Deed, the Bond Trustee shall not be liable for any act, omission,
misconduct, mistake, oversight, error of judgment, forgetfulness or want of
prudence on the part of any attorney, banker, receiver, barrister, solicitor,
agent or any other person appointed by the Bond Trustee and on whom the Bond
Trustee is entitled to rely under this Deed (other than a related body
corporate (as defined in the Corporations Act) of the Bond Trustee).

 

20.2                       Examination of Documents

 

The Bond Trustee shall examine
the evidence furnished to it pursuant to section 314 of the TIA to determine
whether the opinions, searches, reports, certificates, valuations and
investigations delivered or obtained or required to be delivered or obtained at
any time in connection with any Mortgage or Loan in the Portfolio conform to
the requirements of this Deed but shall not be obliged to confirm or verify the
mathematical calculations or other facts stated therein.

 

21.                              Limitation of Bond Trustee’s Liability

 

21.1                       Limitation of
liability

 

Notwithstanding any other
provision of this Deed, the Bond Trustee will have no liability under or in
connection with this Deed or any other Transaction Document (whether to the US$
Bondholders, the Issuer, the Trust Manager or any other person) other than to
the extent to which the liability is able to be satisfied out of the assets of
the Bond Trust from which the Bond Trustee is actually indemnified for the
liability.  This limitation will not
apply to a liability of the Bond Trustee to the extent that it is not satisfied
because, under this Deed or by

 

44

 

operation by law, there is a
reduction in the extent of the Bond Trustee’s indemnification as a result of
the Bond Trustee’s fraud, negligence or wilful default.  Nothing in this clause 21.1 or any similar
provision in any other Transaction Document limits or adversely affects the
rights of the Bond Trustee.

 

21.2                       Conflicts

 

Nothing in this Deed prevents
the Bond Trustee or any Associate (as defined in Part 1.2 Division 2 of the
Corporations Act) of it (being included in this clause in references to the
Bond Trustee) from:

 

(a)                                  subscribing for, buying or selling
Bonds (provided that, to the extent the Bond Trustee acquires any Bonds for its
own benefit or interest, such Bonds shall be disregarded in connection with any
Extraordinary Resolution to remove the Bond Trustee from office under clause
14.1(d));

 

(b)                                 in the ordinary course of its business
contracting or acting in any capacity as representative or agent or otherwise
or entering into any financial, banking, development, insurance, agency,
broking or other transaction with the Issuer, the Trust Manager, any Bondholder
or any Associate of any of them;

 

(c)                                  providing any advice or services to
the Issuer, the Trust Manager or any Bondholder; or

 

(d)                                 being interested in any such contract
or transaction.

 

The Bond Trustee shall not be in
any way liable to account to any Issuer, the Trust Manager, any Bondholder or
any other person for any profits or benefits (including any bank charges,
commission, exchange, brokerage and fees) made or derived from or in connection
with any such transaction.

 

21.3                       Reliance on
Certificates

 

The Bond Trustee shall not:

 

(a)                                  incur any liability in respect of any
action taken or thing suffered by it in reliance upon any document (including,
for example, any notice, resolution, direction, consent, certificate, receipt
or statement and whether an original or in facsimile form) given to or served
on it by the Trust Manager, the Issuer or the Security Trustee unless it has
reason to believe that such document was not signed by an Authorised Signatory
of the Trust Manager, the Issuer or the Security Trustee (as the case may be);

 

(b)                                 be responsible for any loss arising
from any act, neglect, mistake or discrepancy of the Trust Manager, the Issuer
or the Security Trustee or any officer, employee, agent or delegate of the
Trust Manager, the Issuer or the Security Trustee in preparing any document or
in compiling, verifying or calculating any matter or information contained in
any document if the Bond Trustee is not aware (in the manner provided

 

45

 

in clause 1.7) that such document is not genuine and
correct, whether or not an error in any such document is reproduced by the Bond
Trustee in any step taken by it; and

 

(c)                                  except as otherwise required by this
Deed, be obliged to confirm or investigate the accuracy of any mathematical
calculations or other facts stated in any such document.

 

21.4                       No Liability

 

If the Bond Trustee incurs any
liability to any person as a consequence of having relied, in accordance with
clause 21.3, upon a document which was forged or does not bind the person on
whose behalf it was purportedly given, the Bond Trustee is entitled to
reimbursement for the amount of such loss from the Bond Trust pursuant to
clause 21.7.

 

21.5                       No notice or
enforcement

 

The Bond Trustee is not required
to:

 

(a)                                  enforce payment of any moneys payable
by the Issuer or any other right of any US$ Bondholder; or

 

(b)                                 take any steps or proceedings for that
purpose,

 

unless directed or requested to
do so by an Extraordinary Resolution of the US$ Bondholders and then only if
the Bond Trustee is indemnified in accordance with clause 21.7.

 

21.6                       No liability for
loss

 

The Bond Trustee is not liable
for any omission, delay, mistake or irregularity in or about the exercise,
attempted exercise, non-exercise or purported exercise of any power under this
Deed except for fraud, negligence or wilful default on its part.

 

21.7                       Indemnity
regarding exercise of Powers

 

(a)                                  (Indemnity) 
Without prejudice to the right of indemnity given to trustees by law,
the Bond Trustee and each agent or delegate appointed by the Bond Trustee in
accordance with clause 21.9 is, except where caused by fraud, negligence or
wilful default of the Bond Trustee, such agent or delegate (as the case may be)
entitled to be indemnified out of the assets of the Bond Trust in respect of
all costs, disbursements, expenses, liabilities, Taxes and losses incurred by
it in the exercise of any power or obligation under the Security Trust Deed,
this Deed or a US$ Bond, and against all actions, proceedings, costs, claims,
losses, liabilities and demands in respect of any matter or thing done or
omitted relating to the Bond Trust or any Transaction Document (including,
without limitation, any Currency Swap), even if caused by a mistake, oversight,
error of judgment or want of prudence by the Bond Trustee, such agent or
delegate (as the case may be).

 

(b)                                 (Assets of Bond Trust Insufficient)  Notwithstanding any other provision of the
Security Trust Deed, this Deed or a US$ Bond, if the Bond Trustee considers
that the assets of the Bond Trust will be insufficient to fully reimburse,
exonerate or indemnify

 

46

 

the Bond Trustee under paragraph (a) in respect of any
amount in respect of which it is entitled to be indemnified under that
paragraph, the Bond Trustee shall not be obliged to exercise any power or
comply with any obligation under the Security Trust Deed, this Deed or a US$
Bond unless and until it has received an indemnity in respect of such amounts
in form and substance and from a party reasonably satisfactory to it.

 

(c)                                  The provisions of this clause 21.7
shall survive the termination of the Security Trust Deed, this Deed or a US$
Bond and the resignation or removal of the Bond Trustee.

 

21.8                       Confidential
information

 

The Bond Trustee may for the
purpose of exercising any power under this Deed, disclose to any person any
documents or records of, or information about, the Issuer, the Issuer’s
property or the Issuer’s business or affairs, whether or not confidential, if
it reasonably considers such disclosure necessary for the purposes of exercising
any such power.

 

21.9                       Agents and
Delegates

 

The Bond Trustee may:

 

(a)                                  delegate to any person or persons,
upon such terms and subject to such conditions as the Bond Trustee, in the
interests of the US$ Bondholders, thinks fit; or

 

(b)                                 appoint one or more agents to perform,

 

all or any of the trusts,
rights, powers and authorities vested in the Bond Trustee by this Deed provided
that the Bond Trustee has given prior written notice of such appointment or
delegation to each Designated Rating Agency.

 

21.10                Liability
for Agents and Delegates

 

The Bond Trustee will not be
responsible to any Bondholder or any party to this Deed for any misconduct or
default on the part of any agent or delegate appointed by the Bond Trustee in
accordance with this Deed, provided that any such person will be a person who
is, in the opinion of the Bond Trustee, appropriately qualified and the Bond
Trustee has exercised good faith in the selection of such agent or delegate.

 

21.11                No inquiry

 

No person dealing with the Bond
Trustee is bound to inquire as to whether any of the Secured Moneys are owing
or payable, or as to the propriety or regularity of the exercise or purported
exercise of any power of the Bond Trustee under this Deed or any other matter
or thing, or be affected by actual or constructive notice that any such
exercise is improper.  Any transaction
entered into as a result of any such exercise or purported exercise will be
valid and binding notwithstanding any irregularity or impropriety in such
exercise.

 

47

 

21.12                Exercise of rights

 

If an Event of Default is
subsisting, the Bond Trustee must exercise the rights and powers vested in it
by this Deed and use the same degree of care and skill in their exercise as a
prudent person would use or exercise under the circumstances in the conduct of
his or her own affairs.

 

21.13                Performance of
duties

 

Except while an Event of Default
is subsisting, the Bond Trustee undertakes to perform such duties and only such
duties as are specifically set out in the Transaction Documents and no implied
covenants or obligations shall be read into this Deed against the Bond Trustee.

 

22.                              Notices

 

22.1                       Notices generally

 

Subject to clause 22.2, every notice to be served,
given or made under the terms of this Deed on or to a party to this Deed:

 

(a)                                  must be in writing in order to be
valid;

 

(b)                                 must be deemed to have been duly
served, given or made in relation to a party if it is:

 

(i)                                    delivered to the address of that party
set out in paragraph (e) (or at such other address as may be notified in
writing by that party to the other party from time to time); or

 

(ii)                                 posted by prepaid registered post to
such address; or

 

(iii)                              sent by facsimile to the facsimile
number set out in sub-paragraph (e) (or to such other number as may be
notified in writing by that party to the other party from time to time);

 

(c)                                  shall be sufficient if executed by the
party giving, serving or making the same or on its behalf by a then Authorised
Signatory of such party;

 

(d)                                 shall be deemed to be given, served or
made:

 

(i)                                    (in the case of prepaid registered
post) within 5 Business Days after posting;

 

(ii)                                 (in the case of facsimile) on receipt
of a transmission report confirming successful transmission; and

 

(iii)                              (in the case of delivery by hand) on
delivery;

 

(e)                                  the addresses and facsimile numbers
for service of notices as referred to in sub-paragraph (b) of this clause are
as follows:

 

48

 

The Issuer

 

35 Clarence Street

SYDNEY  NSW  2000

AUSTRALIA

 

By fax: (02) 8295 8675

 

Attention: Senior Manager, Securitisation Trusts

 

The Trust Manager

 

Level 6

12 Castlereagh Street

SYDNEY  NSW  2000

AUSTRALIA

 

By fax: (02) 9225 0864

 

Attention: Financial Controller

 

The Bond Trustee

 

101 Barclay Street

Floor 21 West

NEW YORK  NY  10286 

USA

By fax: (212) 815 5915

 

Attention:  Global Structured
Finance Unit

 

The Security Trustee

 

35 Clarence Street

SYDNEY NSW 2000

AUSTRALIA

 

By fax: (02) 8295 8659

 

Attention:  Senior Manager,
Securitisation

 

22.2                       Notices to
Bondholders

 

A notice, request or other
communication by the Bond Trustee to the US$ Bondholders shall be deemed to be
duly given or made if given in accordance with the Conditions.

 

23.                              Governing law and jurisdiction

 

(a)                                  This Deed and the Bond Trust are
governed by the laws of New South Wales, Australia.  The parties submit to the non-exclusive jurisdiction of Courts
exercising jurisdiction there.

 

(b)                                 The administration of the Bond Trust,
including the exercise of the Bond Trustee’s powers under this Deed and its
standard of care, are governed by the laws of the State

 

49

 

of New York, United States of America.  To the extent of any inconsistency between
the operation of the laws of New South Wales, Australia and the laws of the
State of New York, United States of America in respect of the application of
those powers and that standard of care, the laws of the State of New York will
prevail.

 

24.                              General

 

24.1                       Remedies Cumulative

 

The rights conferred by this
Deed on the Bond Trustee are cumulative and in addition to all other rights
available to the Bond Trustee by Statute, by general law, or by virtue of any
other Secured Document.

 

24.2                       Severability of
provisions

 

Any provision of this Deed which
is illegal, void or unenforceable will be ineffective to the extent only of
that illegality, voidness or unenforceability without invalidating the
remaining provisions.

 

24.3                       Counterparts

 

This Deed may be executed in a
number of counterparts.  Each
counterpart is to be considered an original and all such counterparts together
constitute one and the same instrument.

 

50

 

Executed as a deed.

 

Each attorney executing this
Deed states that he or she has no notice of revocation or suspension of his or
her power of attorney

 

 

	
  Signed Sealed and Delivered for Permanent

  Custodians Limited by its attorneys under

  power of attorney in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorney Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
  Attorney Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  

 

 

	
  Signed Sealed and Delivered for Australian

  Securitisation Management Pty Limited by

  its attorney under power of attorney in the

  presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
  Attorney Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  

 

51

 

	
  Signed Sealed and Delivered for Australian

  Mortgage Securities Limited by its attorney

  under the power of attorney in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
  Attorney Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  

 

 

	
  Signed Sealed and Delivered for Permanent

  Registry Limited by its attorneys under

  power of attorney in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attorney Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print Name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
  Attorney Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  

 

52

 

	
  Executed as a deed by The Bank of New

  York in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Print Name

  

 

53

 

Schedule 1 –
Part 1

 

Form of Class A Global Bond

 

UNLESS THIS CERTIFICATE OR ANY
CERTIFICATE EVIDENCING OR ACKNOWLEDGING THIS GLOBAL BOND IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (DTC),
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY SUCH CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
HEREOF OR THEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

THIS GLOBAL BOND IS A GLOBAL
NOTE FOR THE PURPOSES OF SECTION 128F(10) OF THE INCOME TAX ASSESSMENT ACT 1936
OF THE COMMONWEALTH OF AUSTRALIA.

 

 

PERMANENT
CUSTODIANS LIMITED

 

(ACN 001 426 384)

 

(a limited liability company incorporated under
the laws of the Commonwealth of Australia)

 

in its capacity as trustee of ARMS II Global Fund
2 (the Fund)

 

GLOBAL BOND

 

representing

 

US$[*]

 

Class A Secured Floating Rate Bonds Due October
2034

 

This
Global Bond certifies that Cede & Co is the registered holder of this
Global Bond and that this Global Bond is a Global Bond without principal or
interest coupons in respect of a duly authorised issue of Bonds of Permanent
Custodians Limited in its capacity as trustee of the Fund (the Issuer), designated,
as specified in the title above (the Bonds), in an initial aggregate Face Value of US$[*] [*]
United States Dollars) and (a) issued pursuant to a Master Trust Deed (the Master Trust Deed)
dated 7 March 1995 between Permanent Custodians Limited and Australian Mortgage
Securities Ltd (as amended and restated) and applying to the Fund by reason of
the Fund Creation Notice given by Australian Securitisation Management Pty
Limited (the Trust Manager)
to the Issuer on 11 September

 

54

 

2003 and
by the Conditions (as defined below); (b) constituted by a Bond Trust Deed
dated [ ] 2003 (the Bond Trust Deed)
between (among others) the Issuer, the Trust Manager, The Bank of New York (the
Bond Trustee) and
Permanent Registry Limited (the Security Trustee); and (c) secured by a Security Trust
Deed (the Security Trust Deed)
dated [ ] 2003 between the Issuer, the Trust Manager, the Bond Trustee and the
Security Trustee.  References to the Conditions
(or to any particular numbered Condition) shall be to the Terms and Conditions
of the Bonds (or that particular one of them) set out in Schedule 3 to the Bond
Trust Deed but with the deletion of those provisions which are applicable only
to Class A Bonds in definitive form. Terms and expressions defined in the Bond
Trust Deed and the Conditions shall, save as expressly stated otherwise, bear
the same meanings when used herein.

 

If the
Issuer is obliged to issue Definitive Bonds under clause 5.7 of the Bond Trust
Deed, this Global Bond may be exchanged in whole by registration on the US$
Register for Definitive Bonds and the Issuer shall procure that the US$
Registrar delivers by registration in the US$ Register, in full exchange for
this Global Bond, Definitive Bonds in an aggregate Face Value equal to the Face
Value of all Class A Bonds represented by this Global Bond.  The Issuer is not obliged to issue
Definitive Bonds until 30 days after the occurrence of an event set out in
clause 5.7 of the Bond Trust Deed.

 

The
Issuer in its capacity as trustee of the Fund, subject to this Global Bond and
subject to and in accordance with the Conditions and the Bond Trust Deed,
promises to pay to the registered holder of this Global Bond the principal sum
of US$[*] ([*] United States Dollars) or such lesser amount as may from time to
time be represented by this Global Bond (or such part of that amount as may
become repayable under the Conditions, the Security Trust Deed and the Bond
Trust Deed) on such date(s) that that principal sum (or any part of it) becomes  repayable
in accordance with the Conditions, the Security Trust Deed and the Bond Trust
Deed and to pay interest in arrears on each Payment Date on the Face Value of
this Global Bond at rates determined in accordance with Condition 4 and all
subject to and in accordance with the certification requirements described in
this Global Bond, the Conditions, the Security Trust Deed and the Bond Trust
Deed, which shall be binding on the registered holder of this Global Bond (as
if references in the Conditions to the Bonds and the Bondholders were
references to this Global Bond and the registered holder of this Global Bond
respectively and as if the same had been set out in this Global Bond in full
with all necessary changes, except as otherwise provided in this Global Bond).

 

Interest
and principal on this Global Bond will be payable under this Global Bond in
accordance with the relevant Conditions. 
Each of the persons appearing from time to time in the records of DTC as
the holder of a Class A Bond represented by this Global Bond will be entitled
to receive any payment so made in respect of that Class A Bond but only in
accordance with the respective rules and procedures of DTC.  Such persons will have no claim directly
against the Issuer in respect of payments due on the Class A Bonds which must
be made by the holder of this Global Bond, for so long as this Global Bond is
outstanding.

 

On any
payment of principal and/or interest on the Class A Bonds as set out above,
details of that payment shall be endorsed by or on behalf of the Issuer on the
US$ Register and, in the case of

 

55

 

payments
of principal, the Face Value of the Class A Bonds shall be reduced for all purposes
by the amount so paid and endorsed.  Any
such record shall be prima facie evidence that the payment in
question has been made.

 

The
Definitive Bonds to be issued on an exchange of this Global Bond will be in
registered form each in the denomination of US$100,000.  If the Issuer fails to meet its obligations
to issue Definitive Bonds, this shall be without prejudice to the Issuer’s
obligations with respect to the Bonds under the Bond Trust Deed, the Master
Trust Deed, the Security Trust Deed and this Global Bond.

 

On an
exchange of this Global Bond, this Global Bond shall be surrendered to the
Principal Paying Agent.

 

This
Global Bond is governed by, and shall be construed  in accordance with, the laws of New South Wales, Australia.

 

IN
WITNESS the Issuer has caused this Global Bond to be signed by a person duly
authorised on its behalf

 

PERMANENT CUSTODIANS LIMITED

in its capacity as trustee of the ARMS II Global Fund 2

 

	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorised
  Signatory

  	
   

  
			

 

IMPORTANT NOTES:

 

(a)                                 The liability of the Issuer
under the Class A Bonds is limited (in accordance with and subject to the
Master Trust Deed and the Conditions) to and does not extend beyond the assets
of the Fund as they stand at the time at which the obligation is met or
satisfied.  The Issuer issues the Class
A Bonds only in its capacity as trustee of the Fund and in no other
capacity.  The Issuer is not liable to
meet or satisfy any such obligation from its own assets (except the Issuer’s
right to be indemnified from the assets of the Fund) and each such obligation
must be met or satisfied from the Fund or the Issuer’s right to be indemnified
from the assets of the Fund.

 

(b)                                 Neither
Permanent Custodians Limited (in its capacity as trustee of the Fund, trustee
of any other trust or in its personal capacity), the Security Trustee nor the
Bond Trustee stands behind the capital value and/or performance of the Class A
Bonds or the assets of the Fund except to the limited extent provided for in
the Transaction Documents.

 

 

CERTIFICATE OF AUTHENTICATION

 

This
Global Bond is authenticated by The Bank of New York, as Principal Paying Agent
and until so authenticated shall not be valid for any purpose.

 

The Bank of New York

 

56

 

as
Principal Paying Agent

 

	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorised
  Signatory

  	
   

  
			

 

For The
Bank of New York

 

(without
recourse, warranty or liability)

Issued in New York on [*] 2003

 

57

 

Schedule 1 –
Part 2

 

Form of Class B Global Bond

 

UNLESS THIS CERTIFICATE OR ANY
CERTIFICATE EVIDENCING OR ACKNOWLEDGING THIS GLOBAL BOND IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (DTC),
TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY SUCH CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR
IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
HEREOF OR THEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

THIS GLOBAL BOND IS A GLOBAL
NOTE FOR THE PURPOSES OF SECTION 128F(10) OF THE INCOME TAX ASSESSMENT ACT 1936
OF THE COMMONWEALTH OF AUSTRALIA.

 

 

PERMANENT
CUSTODIANS LIMITED

 

(ACN 001 426 384)

 

(a limited liability company incorporated under
the laws of the Commonwealth of Australia)

 

in its capacity as trustee of ARMS II Global Fund
2 (the Fund)

 

GLOBAL BOND

 

representing

 

US$[*]

 

Class B Secured Floating Rate Bonds Due October
2034

 

This
Global Bond certifies that Cede & Co is the registered holder of this
Global Bond and that this Global Bond is a Global Bond without principal or
interest coupons in respect of a duly authorised issue of Bonds of Permanent
Custodians Limited in its capacity as trustee of the Fund (the Issuer), designated,
as specified in the title above (the Bonds), in an initial aggregate Face Value of US$[*]
([*] United States Dollars) and (a) issued pursuant to a Master Trust Deed (the
Master Trust Deed)
dated 7 March 1995 between Permanent Custodians Limited and Australian Mortgage
Securities Ltd (as amended and restated) and applying to the Fund by reason of
the Fund Creation Notice given by Australian Securitisation Management Pty
Limited (the Trust Manager)
to the Issuer on 11 September

 

58

 

2003 and
by the Conditions (as defined below); (b) constituted by a Bond Trust Deed
dated [ ] 2003 (the Bond Trust Deed)
between (among others) the Issuer, the Trust Manager, The Bank of New York (the
Bond Trustee) and
Permanent Registry Limited (the Security Trustee); and (c) secured by a Security Trust
Deed (the Security Trust Deed)
dated [ ] 2003 between the Issuer, the Trust Manager, the Bond Trustee and the
Security Trustee.  References to the
Conditions (or to any particular numbered Condition) shall be to the Terms and
Conditions of the Bonds (or that particular one of them) set out in Schedule 3
to the Bond Trust Deed but with the deletion of those provisions which are
applicable only to Class B Bonds in definitive form. Terms and expressions
defined in the Bond Trust Deed and the Conditions shall, save as expressly
stated otherwise, bear the same meanings when used herein.

 

If the
Issuer is obliged to issue Definitive Bonds under clause 5.7 of the Bond Trust
Deed, this Global Bond may be exchanged in whole by registration on the US$
Register for Definitive Bonds and the Issuer shall procure that the US$
Registrar delivers by registration in the US$ Register, in full exchange for
this Global Bond, Definitive Bonds in an aggregate Face Value equal to the Face
Value of all Class B Bonds represented by this Global Bond.  The Issuer is not obliged to issue
Definitive Bonds until 30 days after the occurrence of an event set out in
clause 5.7 of the Bond Trust Deed.

 

The
Issuer in its capacity as trustee of the Fund, subject to this Global Bond and
subject to and in accordance with the Conditions and the Bond Trust Deed,
promises to pay to the registered holder of this Global Bond the principal sum
of US$[*] ([*] United States Dollars) or such lesser amount as may from time to
time be represented by this Global Bond (or such part of that amount as may
become repayable under the Conditions, the Security Trust Deed and the Bond
Trust Deed) on such date(s) that that principal sum (or any part of it) becomes  repayable
in accordance with the Conditions, the Security Trust Deed and the Bond Trust
Deed and to pay interest in arrears on each Payment Date on the Face Value of
this Global Bond at rates determined in accordance with Condition 4 and all
subject to and in accordance with the certification requirements described in
this Global Bond, the Conditions, the Security Trust Deed and the Bond Trust
Deed, which shall be binding on the registered holder of this Global Bond (as
if references in the Conditions to the Bonds and the Bondholders were
references to this Global Bond and the registered holder of this Global Bond
respectively and as if the same had been set out in this Global Bond in full
with all necessary changes, except as otherwise provided in this Global Bond).

 

Interest
and principal on this Global Bond will be payable under this Global Bond in
accordance with the relevant Conditions. 
Each of the persons appearing from time to time in the records of DTC as
the holder of a Class B Bond represented by this Global Bond will be entitled
to receive any payment so made in respect of that Class B Bond but only in
accordance with the respective rules and procedures of DTC.  Such persons will have no claim directly
against the Issuer in respect of payments due on the Class B Bonds which must
be made by the holder of this Global Bond, for so long as this Global Bond is
outstanding.

 

On any
payment of principal and/or interest on the Class B Bonds as set out above,
details of that payment shall be endorsed by or on behalf of the Issuer on the
US$ Register and, in the case of

 

59

 

payments
of principal, the Face Value of the Class B Bonds shall be reduced for all
purposes by the amount so paid and endorsed. 
Any such record shall be prima facie evidence that the payment in
question has been made.

 

The
Definitive Bonds to be issued on an exchange of this Global Bond will be in
registered form each in the denomination of US$100,000.  If the Issuer fails to meet its obligations
to issue Definitive Bonds, this shall be without prejudice to the Issuer’s
obligations with respect to the Bonds under the Bond Trust Deed, the Master
Trust Deed, the Security Trust Deed and this Global Bond.

 

On an
exchange of this Global Bond, this Global Bond shall be surrendered to the
Principal Paying Agent.

 

This
Global Bond is governed by, and shall be construed  in accordance with, the laws of New South Wales, Australia.

 

IN
WITNESS the Issuer has caused this Global Bond to be signed by a person duly
authorised on its behalf

 

PERMANENT CUSTODIANS LIMITED

in its capacity as trustee of the ARMS II Global Fund 2

 

	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorised
  Signatory

  	
   

  
			

 

IMPORTANT NOTES:

 

(a)                                 The liability of the
Issuer under the Class B Bonds is limited (in accordance with and subject to
the Master Trust Deed and the Conditions) to and does not extend beyond the
assets of the Fund as they stand at the time at which the obligation is met or
satisfied.  The Issuer issues the Class
B Bonds only in its capacity as trustee of the Fund and in no other
capacity.  The Issuer is not liable to
meet or satisfy any such obligation from its own assets (except the Issuer’s
right to be indemnified from the assets of the Fund) and each such obligation
must be met or satisfied from the Fund or the Issuer’s right to be indemnified
from the assets of the Fund.

 

(b)                                 Neither
Permanent Custodians Limited (in its capacity as trustee of the Fund, trustee
of any other trust or in its personal capacity), the Security Trustee nor the
Bond Trustee stands behind the capital value and/or performance of the Class B
Bonds or the assets of the Fund except to the limited extent provided for in
the Transaction Documents.

 

 

CERTIFICATE OF AUTHENTICATION

 

This
Global Bond is authenticated by The Bank of New York, as Principal Paying Agent
and until so authenticated shall not be valid for any purpose.

 

The Bank of New York

 

60

 

as
Principal Paying Agent

 

	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorised
  Signatory

  	
   

  
			

 

For The
Bank of New York

 

(without
recourse, warranty or liability)

Issued in New York on [*] 2003

 

61

 

Schedule 2 –
Part 1

 

Form of Class A Definitive Bond

 

PERMANENT
CUSTODIANS LIMITED

(ACN 001 426 384)

(a limited liability company incorporated under the laws of the Commonwealth
Australia)

 

in its capacity as trustee of ARMS II GLOBAL FUND
2 (the Fund)

 

US$100,000

 

Class A Secured Floating Rate Bonds Due October
2034

 

The
issue of the Class A Bonds was authorised by resolutions of the Board of
Directors of Permanent Custodians Limited in its capacity as trustee of the
Fund (the Issuer)
passed on 5 July 1993.

 

This
Class A Bond forms one of a series of Bonds which are (a) issued pursuant to a
Master Trust Deed (the Master Trust Deed) dated 7 March 1995 between Permanent
Custodians Limited and Australian Mortgage Securities Ltd (as amended and
restated) and applying to the Fund by reason of the Fund Creation Notice given
by Australian Securitisation Management Pty Limited (the Trust Manager) to the Issuer on 11 September
2003 and by the terms and conditions attached to this Bond (the Conditions); (b)
constituted by a Bond Trust Deed dated [ ] 2003 (the Bond Trust Deed) between the Issuer, the
Trust Manager, Australian Mortgage Securities Ltd, The Bank of New York (the Bond Trustee) and
Permanent Registry Limited (the Security Trustee); and (c) secured by a Security Trust
Deed (the Security Trust Deed)
dated [ ] 2003 between the Issuer, the Trust Manager, the Bond Trustee and the
Security Trustee.

 

The
Issuer, in its capacity as trustee of the Fund, subject to this Class A Bond
and subject to and in accordance with the Conditions and the Bond Trust Deed,
for value received promises to pay to the registered holder on the Payment Date
(as defined in the Conditions) endorsed on the form of this Class A Bond)
falling in October 2034 (or on such earlier date(s) as the Face Value of this
Class A Bond (or part of it) may become repayable in accordance with the
Conditions) the principal sum of:

 

US$100,000 (One Hundred Thousand United States
Dollars)

 

or such
part of that amount as may be repayable on such date(s) in accordance with the
Conditions, the Security Trust Deed, the Master Trust Deed and the Bond Trust
Deed, together with interest on the Face Value payable in arrears on each
Payment Date and such other amounts (if any) as may be payable, all subject to
and in accordance with the Conditions and the provisions of the Security Trust
Deed, the Master Trust Deed and the Bond Trust Deed.

 

62

 

This
Class A Bond shall not become valid for any purpose unless and until the
attached Certificate of Authentication has been signed by any authorised
signatory of The Bank of New York as Principal Paying Agent.

 

 

IN
WITNESS this Bond has been executed on behalf of the Issuer.

 

PERMANENT CUSTODIANS LIMITED

 

 

	
  By:

  	
   

  	
   

  
	
  Authorised
  Signatory

  

 

Dated as
of [*],

Issued in [*]

 

IMPORTANT NOTES:

 

(a)                                 The liability of the
Issuer under the Class A Bonds is limited (in accordance with and subject to the Master Trust Deed
and the Conditions) to and does not extend beyond the assets of the Fund as
they stand at the time at which the obligation is met or satisfied.  The Issuer issues the Class A Bonds only in
its capacity as trustee of the Fund and in no other capacity.  The Issuer is not liable to meet or satisfy
any such obligation from its own assets (except the Issuer’s right to be
indemnified from the assets of the Fund) and each such obligation must be met
or satisfied from the Fund or the Issuer’s right to be indemnified from the
assets of the Fund.

 

(b)                                 Neither
Permanent Custodians Limited (in its capacity as trustee of the Fund, trustee
of any other trust or in its personal capacity), the Security Trustee nor the
Bond Trustee stands behind the capital value and/or performance of the Class A
Bonds or the assets of the Fund except to the limited extent provided for in
the Transaction Documents.

 

 

CERTIFICATE
OF AUTHENTICATION

 

This
Bond is one of the Class A Bonds

referred to in the Bond Trust Deed

 

The Bank
of New York

 

as
Principal Paying Agent

 

	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorised
  Signatory

  	
   

  
			

 

For The
Bank of New York

 

63

 

(without
recourse, warranty or liability)

 

Issued
in [*]
on [*]

 

64

 

Schedule 2 – Part 2

 

Form of Class B Definitive Bond

 

 

PERMANENT
CUSTODIANS LIMITED

(ACN 001 426 384)

(a limited liability company incorporated under the laws of the Commonwealth
Australia)

 

in its capacity as trustee of ARMS II GLOBAL FUND
2 (the Fund)

 

US$100,000

 

Class B Secured Floating Rate Bonds Due October
2034

 

The
issue of the Class B Bonds was authorised by resolutions of the Board of
Directors of Permanent Custodians Limited in its capacity as trustee of the
Fund (the Issuer)
passed on 5 July 1993.

 

This
Class B Bond forms one of a series of Bonds which are (a) issued pursuant to a
Master Trust Deed (the Master Trust Deed) dated 7 March 1995 between Permanent
Custodians Limited and Australian Mortgage Securities Ltd (as amended and
restated) and applying to the Fund by reason of the Fund Creation Notice given
by Australian Securitisation Management Pty Limited (the Trust Manager) to the Issuer on 11 September
2003 and by the terms and conditions attached to this Bond (the Conditions); (b) constituted
by a Bond Trust Deed dated [ ] 2003 (the Bond Trust Deed) between the Issuer, the Trust Manager,
Australian Mortgage Securities Ltd, The Bank of New York (the Bond Trustee) and
Permanent Registry Limited (the Security Trustee); and (c) secured by a Security Trust
Deed (the Security Trust Deed)
dated [ ] 2003 between the Issuer, the Trust Manager, the Bond Trustee and the
Security Trustee.

 

The
Issuer, in its capacity as trustee of the Fund, subject to this Class B Bond
and subject to and in accordance with the Conditions and the Bond Trust Deed,
for value received promises to pay to the registered holder on the Payment Date
(as defined in the Conditions) endorsed on the form of this Class B Bond)
falling in October 2034 (or on such earlier date(s) as the Face Value of this
Class B Bond (or part of it) may become repayable in accordance with the
Conditions) the principal sum of:

 

US$100,000 (One Hundred Thousand United States
Dollars)

 

or such
part of that amount as may be repayable on such date(s) in accordance with the
Conditions, the Security Trust Deed, the Master Trust Deed and the Bond Trust
Deed, together with interest on the Face Value payable in arrears on each
Payment Date and such other amounts (if any) as may be payable, all subject to
and in accordance with the Conditions and the provisions of the Security Trust
Deed, the Master Trust Deed and the Bond Trust Deed.

 

65

 

This
Class B Bond shall not become valid for any purpose unless and until the
attached Certificate of Authentication has been signed by any authorised
signatory of The Bank of New York as Principal Paying Agent.

 

 

IN
WITNESS this Bond has been executed on behalf of the Issuer.

 

PERMANENT CUSTODIANS LIMITED

 

 

	
  By:

  	
   

  	
   

  
	
  Authorised
  Signatory

  

 

Dated as
of [*],

Issued in [*]

 

IMPORTANT NOTES:

 

(a)                                 The liability of the
Issuer under the Class B Bonds is limited (in accordance with and subject to
the Master Trust Deed and the Conditions) to and does not extend beyond the
assets of the Fund as they stand at the time at which the obligation is met or
satisfied.  The Issuer issues the Class
B Bonds only in its capacity as trustee of the Fund and in no other
capacity.  The Issuer is not liable to
meet or satisfy any such obligation from its own assets (except the Issuer’s
right to be indemnified from the assets of the Fund) and each such obligation
must be met or satisfied from the Fund or the Issuer’s right to be indemnified
from the assets of the Fund.

 

(b)                                 Neither
Permanent Custodians Limited (in its capacity as trustee of the Fund, trustee
of any other trust or in its personal capacity), the Security Trustee nor the
Bond Trustee stands behind the capital value and/or performance of the Class B
Bonds or the assets of the Fund except to the limited extent provided for in
the Transaction Documents.

 

 

CERTIFICATE
OF AUTHENTICATION

 

This
Bond is one of the Class B Bonds

referred to in the Bond Trust Deed

 

The Bank of New York

 

as Principal Paying Agent

 

	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorised
  Signatory

  	
   

  
			

 

For The
Bank of New York

 

66

 

(without
recourse, warranty or liability)

 

Issued in [*] on [*]

 

67

 

Schedule 3

 

Terms and Conditions of the Bonds

 

 

ARMS II GLOBAL
FUND 2

 

General

 

The following are the
terms and conditions (the Conditions) which will be applicable to:

 

(a)                                                  each US$ Bond (whether
represented by a Global Bond or a Definitive Bond);

 

(b)                                                 each Fast Prepayment
Bond,

 

in each case, issued
under the Bond Trust Deed, the Master Trust Deed, the Security Trust Deed and
the relevant Subscription Agreement, designated collectively as ARMS II Global Fund 2 Bonds.

 

These Conditions are
created under the Master Trust Deed and constitute the Supplementary Bond Terms
applicable to the Bonds, as defined in and for the purposes of the Master Trust
Deed.

 

These Conditions will
appear on the reverse side of the US$ Bonds in definitive form.

 

Form, Denomination and Title

 

The Bonds will be
comprised of 3 Classes designated Class A Bonds, Class B Bonds and Fast Prepayment Bonds respectively.

 

All Bonds will be in the
form of inscribed stock.  They are
issued upon inscription in the relevant Register.

 

1.                                     Definitions and
interpretation

 

1.1                              General

 

In these Conditions:

 

(a)                                 references to these Conditions or to a specified Condition
are to the Conditions set out in this Schedule 3 or the relevant Condition (as
the case may be) set out in this Schedule 3;

 

(b)                                words and expressions defined in
clause 1.1 of the Bond Trust Deed or clause 1.1 of the Master Trust Deed have
the same meanings when used in these Conditions, unless otherwise defined in
them.  To the extent of any
inconsistency between a word or expression defined in the Bond Trust Deed and
the Master Trust Deed, the definition in the Bond Trust Deed will prevail.  To the extent of any inconsistency between a
word or expression defined in the Bond Trust Deed and  these Conditions, the definition in these Conditions will
prevail;

 

68

 

(c)                                 a reference to an amount being paid to
a person includes a reference to that amount being paid at the direction of
that person; and

 

(d)                                clause 1.3 of the Bond Trust Deed is
incorporated in these Conditions as if set out in full in these Conditions but
as if a reference to this Deed in clause 1.3 of the Bond Trust Deed were a
reference to these Conditions.

 

1.2                              Definitions

 

In these Conditions:

 

Adjusted LVR means, in relation to a Loan, at any time, the
ratio (expressed as a percentage) of:

 

(a)                                 the Face Value plus any undrawn line of credit
under the Loan at that time; to

 

(b)                                the Valuation of the Land the subject of the
Mortgage securing that Loan.

 

Advances Request means each Redraw Request, each Line of Credit
Advance Request and each Further Advance Request.

 

Advances Reserve means the ledger account established and
maintained by the Trust Manager in accordance with Condition 7.1(a), or the
balance of that account from time to time, as the context requires.

 

A$ Equivalent of any amount expressed in US Dollars means the
Australian Dollar equivalent of that amount calculated at the Exchange Rate.

 

Aggregate Loss Amount means, in relation to a Calculation Period, an
amount equal to the aggregate of all Loss Amounts for that Calculation Period.

 

Available Amortisation Amount means, on any Payment Date:

 

(a)                                  the Principal Collections
for the Calculation Period to which that Payment Date relates; minus

 

(b)                                 the amount (if any)
deducted therefrom or (as the case may be) plus the amount (if any) added
thereto in accordance with Conditions 6.4(b), 6.5(b)(iii), 7.2 or 7.3; plus

 

(c)                                  the aggregate of all
amounts applied on that Payment Date under paragraphs (i) to (l) (inclusive) of
Condition 4.4.

 

BBSW means:

 

(a)                                  in relation to an
Interest Accrual Period and a Currency Swap, the rate determined by the party
to that Currency Swap specified as the Calculation Agent (as defined in that
Currency Swap) for the purposes thereof in accordance with the definition “AUD
- BBR - BBSW” contained in the ISDA Definitions, on the basis that the Reset
Date is the first day of that Interest Accrual Period, and the Designated
Maturity is a period of the same length as that Interest Accrual Period; and

 

69

 

(b)                                (i)                                    in relation to an
Interest Accrual Period and a Bond, the rate calculated by the Trust Manager
taking the rates quoted on the Reuters Screen BBSW Page at approximately 10.00
am, Sydney time, on the first day of that Interest Accrual Period as being the
mean buying and selling rate for a bill of exchange of the type specified for
the purpose of quoting on the Reuters Screen BBSW Page, having a tenor equal or
approximately equal to that Interest Accrual Period, eliminating the highest
and the lowest mean rates and taking the average of the remaining mean rates
and then (if necessary) rounding the resultant figure to four decimal places in
accordance with market practice; or

 

(iii)                              if fewer than five banks
have quoted rates on the Reuters Screen BBSW Page, the rate shall be calculated
as above by taking the rates otherwise quoted by five banks or financial
institutions authorised to quote on the Reuters Screen BBSW Page on application
by the Trust Manager for such a bill of the same tenor.  If the rate cannot be determined in
accordance with the foregoing procedures then the rate shall mean such rate as
is determined by the Trust Manager in good faith having regard to comparable
indices then available.

 

Bondholders’ Cash Reserve means, on any date, an amount of the
Cash Reserve equal to:

 

(a)                                  the amount credited to
the Cash Reserve Account on the Initial Issue Date in accordance with
Condition 6.2; minus

 

(b)                                 the aggregate of all
amounts applied as part of the Available Amortisation Amount in accordance with
Condition 6.5(b)(iii) prior to that date.

 

Bond Trust Deed means the Bond Trust Deed of which this Schedule
3 forms part.

 

Borrower means a person to whom a Loan secured by a
Mortgage has been made.

 

Calculation Amount means, in relation to a Class A Currency Swap or a Class
B Currency Swap and at any time, the amount (in US Dollars) equal to the
Specified Percentage of the aggregate Face Value of the Class A Bonds or Class
B Bonds (as the case may be) at that time.

 

Calculation Period means:

 

(a)                                 the period from the Initial
Issue Date until the first Cut-Off; and

 

(b)                                 subsequently, each period
commencing immediately after one Cut-Off and ending at the next Cut-Off,

 

and in relation to a Payment Date, means the period referred to above
ending at the last Cut-Off before that Payment Date.

 

Call Option Redemption Date means the Payment Date specified in a
direction given by the Trust Manager under Condition 8.2.

 

Cash Reserve means, at any time, the balance of the Cash
Reserve Account at that time.

 

70

 

Cash Reserve Account means the ledger account established and
maintained by the Trust Manager in accordance with Condition 6.1.

 

Cash Reserve Lender means a person who makes a Cash Reserve Top-Up
Loan to the Issuer.

 

Cash Reserve Top-Up Loan means, at any time, any amount
borrowed by the Issuer at the request of the Trust Manager and credited to the
Cash Reserve Account, to the extent not previously repaid in accordance with
Condition 6.5.

 

Charge-off means, in relation to a Bond and a Payment Date,
the amount of any reduction in the Stated Value of that Bond on that Payment
Date made under Condition 4.10.

 

Class means, as the context requires:

 

(a)                                  all Class A Bonds;

 

(b)                                 all Class B Bonds; or

 

(c)                                  all of the Fast
Prepayment Bonds comprised in an Issue of Fast Prepayment Bonds.

 

Class A A$ Exchange Amount means, in relation to a Payment Date,
the A$ Equivalent of the aggregate Calculation Amounts of the Class A Currency
Swaps on that date.

 

Class A Currency Swaps Payment Amount means, in relation to a Payment Date,
the aggregate of the Floating Amounts payable by the Issuer on that Payment
Date under the Class A Currency Swaps, being an amount (in Australian Dollars)
calculated as follows:

 

 

Where:

 

ACSA           is the Class A Currency Swaps Payment Amount

 

AFVA            is the A$ Equivalent of
the aggregate Face Value of the Class A Bonds on the immediately preceding
Payment Date (after taking account of any payments made in redemption of the
Face Value of the Class A Bonds on that date)

 

SR                                is the Swap Rate for the
Class A Currency Swaps for the Interest Accrual Period ending on that Payment
Date

 

n                                        is the number of days in
the Interest Accrual Period ending on that Payment Date.

 

Class A Currency Swap Receipts means, in relation to a Payment Date,
the aggregate of the Floating Amounts payable on that Payment Date by the Class
A Currency Swap Counterparties to the Issuer under the Class A Currency Swaps,
being an amount (in US Dollars) equal to the lesser of:

 

(a)                                 the amount calculated as
follows:

 

 

71

 

where:

 

ACSR           is the Class A Currency Swap Receipts

 

AFVA            is the aggregate Face
Value of the Class A Bonds on the immediately preceding Payment Date (after
taking account of any payment made in redemption of the Face Value of the Class
A Bonds on that date)

 

IR                                   is the Interest Rate
applicable to the Class A Bonds for the Interest Accrual Period ending on that
Payment Date

 

n                                        is the number of days in
the Interest Accrual Period ending on that Payment Date; and

 

(b)                                 if the aggregate amount
payable to the Class A Swap Counterparties under Condition 4.4(e) on that
Payment Date is less than the Class A Currency Swaps Payment Amount because of
the operation of the final paragraph of Condition 4.4, an amount equal to the
same proportion of the amount referred to in paragraph (a) as the amount so
payable under Condition 4.4(e) bears to the Class A Currency Swaps Payment
Amount for that Payment Date.

 

Class A US$ Exchange Amount means, in relation to a Payment Date,
the aggregate of the Exchange Amounts payable by the relevant Currency Swap
Counterparties under the Class A Currency Swaps on that Payment Date,
being the US$ Equivalent of the aggregate of the amounts paid by the Issuer on
that Payment Date under Condition 5.1(b)(i) in or towards payment of the Class
A A$ Exchange Amount.

 

Class B A$ Exchange Amount means, in relation to a Payment Date,
the A$ Equivalent of the aggregate Calculation Amounts of the Class B Currency
Swaps on that date.

 

Class B Currency Swaps Payment Amount means, in relation to a Payment Date,
the aggregate of the Floating Amounts payable by the Issuer on that Payment
Date under the Class B Currency Swaps, being an amount (in Australian Dollars)
calculated as follows:

 

 

Where:

 

BCSA             is the Class B Currency
Swaps Payment Amount

 

BFVA              is the A$ Equivalent of
the aggregate Face Value of the Class B Bonds on the immediately preceding
Payment Date (after taking account of any payments made in redemption of the
Face Value of the Class B Bonds on that date)

 

SR                                is the Swap Rate for the
Class B Currency Swaps for the Interest Accrual Period ending on that Payment
Date

 

n                                        is the number of days in
the Interest Accrual Period ending on that Payment Date.

 

72

 

Class B Currency Swap Receipts means, in relation to a Payment Date,
the aggregate of the Floating Amounts payable on that Payment Date by the Class
B Currency Swap Counterparties to the Issuer under the Class B Currency Swaps,
being an amount (in US Dollars) equal to the lesser of:

 

(a)                                 the amount calculated as
follows:

 

 

where:

 

BCSR             is the Class B Currency
Swap Receipts

 

BFVA              is the aggregate Face
Value of the Class B Bonds on the immediately preceding Payment Date (after
taking account of any payment made in redemption of the Face Value of the Class
B Bonds on that date)

 

IR                                   is the Interest Rate
applicable to the Class B Bonds for the Interest Accrual Period ending on that
Payment Date

 

n                                        is the number of days in
the Interest Accrual Period ending on that Payment Date; and

 

(b)                                 if the aggregate amount
payable to the Class B Swap Counterparties under Condition 4.4(f) on that
Payment Date is less than the Class B Currency Swaps Payment Amount because of
the operation of the final paragraph of Condition 4.4, an amount equal to the
same proportion of the amount referred to in paragraph (a) as the amount so
payable under Condition 4.4(f) bears to the Class B Currency Swaps Payment
Amount for that Payment Date.

 

Class B US$ Exchange Amount means, in relation to a Payment Date,
the aggregate of the Exchange Amounts payable by the relevant Currency Swap
Counterparties under the Class B Currency Swaps on that Payment Date,
being the US$ Equivalent of the aggregate of the amounts paid by the Issuer on
that Payment Date under Condition 5.1(c) in or towards payment of the Class B
A$ Exchange Amount.

 

Confirmation has the same meaning as in the ISDA Definitions.

 

Contract Amount has the same meaning as in the ISDA Definitions.

 

Core Surplus has the meaning given in Condition 6.5(b).

 

Cut-Off means 5.00 p.m. on the last Business Day of
March, June, September and December in each year, the first such date being 31
December 2003.

 

Designated Rating has, in relation to the Bonds, the meaning set
out in Condition 14.1.

 

Designated Rating Agency has, in relation to the Bonds, the
meaning set out in Condition 14.2.

 

73

 

Determination Date means each date which is two Business Days
before a Payment Date and for the purposes of calculating LIBOR in respect of
the initial Interest Accrual Period only, the date which is two Business Days
before the Initial Issue Date.

 

Exchange Amount means, in relation to a Currency Swap and a
Payment Date, the Exchange Amount (as defined in the ISDA Definitions) payable
by the relevant Currency Swap Counterparty to the Issuer on that date, being an
amount equal to the US$ Equivalent of the amount paid by the Issuer to that
Currency Swap Counterparty on that Payment Date under Condition 5.1.

 

Exchange Rate means, in relation to a Currency Swap, the
A$/US$ exchange rate specified as such in the relevant Confirmation.

 

Extraordinary Resolution means:

 

(a)                                  a resolution in writing
signed by all Bondholders (or the relevant Class of Bondholders) entitled to
vote on the resolution; or

 

(b)                                 a resolution passed or
adopted at a meeting of Bondholders (or the relevant Class of Bondholders, as
the case may be) duly convened and held in accordance with the Meetings
Procedures by a majority consisting of not less than 75% of the votes cast in
respect of such resolution.

 

Fast Prepayment Period means, in relation to a Fast
Prepayment Bond, the period of 1 year commencing on the date which is the
Payment Date for the Interest Accrual Period current at the Issue Date of that
Bond.

 

Final Payment Date means the earlier of:

 

(a)                                  the Payment Date on which
the aggregate of the Available Amortisation Amount, the Core Surplus and the
balance of the Advances Reserve is equal to or exceeds the aggregate Face Value
of all of the Bonds (in each case calculated prior to the making of any
payments or applications under Conditions 4 or 5 on that Payment Date);
and

 

(b)                                the Maturity Date.

 

Fixed Rate Mortgage means, at any time, a Mortgage which secures a
Loan in respect of which the applicable interest rate is not, at that time,
variable at the discretion of the lender.

 

Fixed Rate Term means, in relation to a Fixed Rate
Mortgage, the period (calculated from the date of commencement) for which the
interest rate applicable to the relevant Loan is not variable at the discretion of the lender.

 

Floating Amount has the same meaning as in the ISDA Definitions.

 

Further Advance means, in respect of a Loan, an advance by way of
loan to a Borrower where the principal amount of the Loan after the advance
exceeds the scheduled principal balance of the Loan at the time of the advance.

 

Further Advance Request means a request by a Borrower for a Further Advance.

 

74

 

Initial Exchange Amount has the same meaning as in the ISDA
Definitions.

 

Initial Issue Date means the Issue Date of the Class A Bonds and
the Class B Bonds.

 

Interest Accrual Period means, in relation to a Bond:

 

(a)                                  the period commencing on
(and including) the Issue Date for that Bond, and ending on (but excluding) the
first Payment Date for that Bond; and

 

(b)                                 each subsequent period
commencing on (and including) each Payment Date for that Bond, and ending on
(but excluding) the next Payment Date for that Bond except that the last
Interest Accrual Period will end on (but exclude) the Final Payment Date.

 

Interest Collections means, in relation to a Calculation Period, the
aggregate of:

 

(a)                                  all moneys received by
the Issuer during that Calculation Period under, in respect of, or which relate
to, each Mortgage comprised in the Assets of the Fund which are determined by
the Trust Manager to be in respect of interest, fees or other amounts of an
income nature, including, for the avoidance of doubt, any such amounts received
from the Trust Manager in respect of damages or compensation for any breach by
the Trust Manager of any of its obligations, or of any representation or
warranty given or made by it in respect of the Fund or any Assets of the Fund,
under or in connection with any Transaction Document relating to the Fund;

 

(b)                                 subject to Condition 6.7,
all income derived from Authorised Investments standing to the credit of the
Cash Reserve Account received by the Issuer during that Calculation Period;

 

(c)                                  the Interest Rate Swap
Receipts for that Calculation Period; and

 

(d)                                 all amounts paid by the
Trust Manager under Condition 13.3 during that Calculation Period.

 

For these purposes, moneys
received under or in respect of a Mortgage will be deemed to be received when
they are treated as received under that Mortgage.

 

Interest Entitlement means,  in relation to a Bond and an Interest Accrual
Period, the amount of interest accrued in respect of that Bond during that
Interest Accrual Period, as determined in accordance with these Conditions.

 

Interest Rate means, in relation to each Bond and each
Interest Accrual Period relating thereto, the rate per annum equal to the
aggregate of the Reference Rate relating to that Bond for that Interest Accrual
Period plus the Margin for that Bond.

 

Interest Rate Swap Break Costs means, in relation to a Calculation
Period, the aggregate net amount (if any) paid or payable by the Issuer to the
Interest Rate Swap Counterparties during that Calculation Period following the
occurrence of an Early Termination Date (as defined in the ISDA Definitions)
under any Interest Rate Swap which has become a Terminated Transaction (as
defined in the ISDA Definitions).

 

75

 

Interest Rate Swap Payments means, in relation to a Calculation
Period, the aggregate net amount (if any) paid or payable by the Issuer to the
Interest Rate Swap Counterparties under or in respect of the Interest Rate
Swaps during that Calculation Period, but excluding any Interest Rate Swap Break
Costs.

 

Interest Rate Swap Receipts means, in relation to a Calculation
Period, the aggregate net amount (if any) paid or payable to the Issuer by the
Interest Rate Swap Counterparties under or in respect of the Interest Rate
Swaps during that Calculation Period.

 

Issuer Call Option Event means each of the events specified as
such in Condition 8.1.

 

LIBOR means:

 

(a)                                  in relation to an Interest Accrual
Period (other than the first Interest Accrual Period), the rate determined by
the Calculation Agent on the Determination Date immediately before that
Interest Accrual Period commences as the rate USD-LIBOR-BBA (as defined in the ISDA
Definitions) being the rate applicable for three month deposits in US Dollars
which appears on the Telerate Page 3750 as of 11.00 am, London time, on that
Determination Date; and

 

(b)                                 in relation to the first Interest
Accrual Period, the rate determined by the Calculation Agent on the
Determination Date immediately before that Interest Accrual Period commences as
the rate USD-LIBOR-BBA (as
defined in the ISDA Definitions) being an interpolation (in respect of tenor of
the Interest Accrual Period) of the rates applicable for two and three month
deposits in US Dollars which appear on the Telerate Page 3750 as of 11.00am,
London time, on that Determination Date.

 

If such rate or rates (as the
case may be) do not appear on the Telerate Page 3750, the rate for that
Interest Accrual Period will be determined as if the Issuer and Calculation
Agent had specified USD-LIBOR-Reference
Banks as the applicable Floating Rate Option under the ISDA
Definitions.  USD-LIBOR-Reference Banks means, in relation
to an Interest Accrual Period, the rate determined by the Calculation Agent on
the Determination Date immediately before that Interest Accrual Period
commences on the basis of the rates at which deposits in US Dollars are offered
by the Reference Banks (being four major banks in the London interbank market
agreed to by the Calculation Agent and the relevant Currency Swap Counterparty
at approximately 11.00 am, London time, on the relevant Determination Date
(each a Reference Bank))
to prime banks in the London interbank market for a period of three months and,
in relation to paragraph (b), two months commencing on the first day of the
Interest Accrual Period and in a Representative Amount (as defined in the ISDA
Definitions).  The Calculation Agent
will request the principal London office of each of the Reference Banks to
provide a quotation of its rates for each period.  If at least two such quotations are provided, the rate for that
period and that Interest Accrual Period will be the arithmetic mean of the
quotations.  If fewer than two
quotations are provided as requested, the rate for that period and that Interest
Accrual Period will be the arithmetic mean of the rates quoted by major banks

 

76

 

in New York City, agreed to by
the Calculation Agent and the relevant Currency Swap Counterparty, at
approximately 11.00 am, New York City time, on the first day of the Interest
Accrual Period for loans in US Dollars to leading European banks for a period
of three months and, in relation to paragraph (b), two months commencing on the
first day of the Interest Accrual Period and in a Representative Amount.  If no such rates are available in New York
City, then the rate for such period and Interest Accrual Period shall be the
most recently determined rate in accordance with this paragraph.

 

Line of Credit Advance means, in relation to a Loan, an
advance by way of loan to a Borrower of any undrawn portion of the credit limit
in respect of the Loan under and in accordance with a Line of Credit Mortgage
and the related Terms of Loan.

 

Line of Credit Advance Request means a request by a Borrower for a
Line of Credit Advance which is made under and in accordance with a Line of
Credit Mortgage and the related Terms of Loan.

 

Line of Credit Mortgage means a Mortgage which secures a
revolving Loan in respect of which the relevant Terms of Loan:

 

(a)                                  permit the Borrower to make
multiple borrowings by way of Loan up to a maximum credit limit; and

 

(b)                                 grant to the Issuer a
right to refuse to lend if at any time the Issuer does not have funding
available to enable it to meet a request that it lends an amount to the
Borrower.

 

Liquidated Mortgage means a Mortgage with
respect to which a default has occurred and the Trust Manager has determined
that all Liquidation Proceeds likely to be recoverable have been recovered,
having regard to:

 

(a)                                 the enforcement of the Mortgage and any
Collateral Security;

 

(b)                                any sale of the Land subject to the Mortgage;

 

(c)                                  any proceeds paid on the compulsory
acquisition of that Land by any Government Body;

 

(d)                                 any payments received from any
relevant Borrower on account of any amount outstanding under the relevant Loan;

 

(e)                                  such other matters as the Trust
Manager reasonably determines to be relevant.

 

Liquidation Proceeds means, in relation to a Mortgage, the amount
received by or on behalf of the Issuer in connection with the liquidation of
such Mortgage including, without limitation:

 

(a)                                  proceeds arising from the enforcement
of the Mortgage and sale of the Land subject to that Mortgage;

 

(b)                                proceeds arising from the enforcement of any
Collateral Security;

 

(c)                                 the proceeds of any claim under the relevant
Mortgage Insurance Policy; and

 

77

 

(d)                                 proceeds arising from any resumption
or compulsory acquisition of the relevant Land by any Government Body.

 

Loss Amount means, in relation to a Mortgage which becomes a
Liquidated Mortgage during a Calculation Period, the Face Value of that
Mortgage after the application of all Liquidation Proceeds relating to that
Mortgage.

 

LVR means, in relation to a Loan, at any time. the ratio (expressed as a
percentage) of:

 

(a)                                 the Face Value of the Loan at that time; to

 

(b)                                the Valuation of the Land the subject of the
Mortgage securing that Loan.

 

Manager’s Fee means, in respect of a Payment Date, the amount
calculated as follows:

 

 

where:

 

MF                          is the Manager’s Fee

 

n                                        is the number of days in
the Interest Accrual Period ending on that Payment Date

 

FV                                is the Face Value of all
Mortgages outstanding which are comprised in the Assets of the Fund on the
first day of the Interest Accrual Period ending on that Payment Date

 

P                                      is 0.20% or such other
percentage as agreed between the Issuer and the Trust Manager from time to
time.

 

Margin means:

 

(a)                                 in relation to each Class
A Bond:

 

(i)                                   before the Margin Step-Up
Date, [*]% per annum; and

 

(ii)                                after the Margin Step-Up
Date, [*]% per annum;

 

(b)                                in relation to each Class
B Bond:

 

(i)                                   before the Margin Step-Up
Date, [*] per annum; and

 

(ii)                                after the Margin Step-Up
Date, [*] per annum;

 

(c)                                  in relation to each Fast
Prepayment Bond, and at any time, the applicable margin as at that time, as
agreed between the Trust Manager, the Issuer and the initial subscribers for
those Bonds.

 

Margin Step-Up Date means the first date upon which an Issuer Call
Option Event occurs.

 

Maturity Date means in relation to each Class A Bond, each Class
B Bond and each Fast Prepayment Bond, 10 October 2034.

 

78

 

Maximum Advances Reserve means, at any time, the greater of:

 

(a)                                 A$40,000,000; and

 

(b)                                 an amount equal to 3% of
the A$ Equivalent of the aggregate Face Value of all US$ Bonds at that time;

 

or such other amount determined by the Trust Manager from time to time in
consultation with the Designated Rating Agencies and notified to the Issuer.

 

Mortgage means a Mortgage (as defined in the
Master Trust Deed) which is comprised in the Portfolio specified in the Issue Notice for the Bonds
and which the Issuer comes to hold on the Initial Issue Date.

 

Net Interest Collections means, in relation to a Calculation
Period:

 

(a)                                 the Interest Collections
for that Calculation Period; minus

 

(b)                                 the aggregate of the
amounts required to be applied under paragraphs (a)-(d) (inclusive) of
Condition 4.4 on the next Payment Date to occur after the end of that
Calculation Period.

 

Notional Amount has the same meaning as in the ISDA Definitions.

 

Payment Date means:

 

(a)                                  in relation to each Class
A Bond and each Class B Bond, the 10th day of January, April, July
and October in each year, the first such date being 10 January 2004;

 

(b)                                in relation to each Fast
Prepayment Bond:

 

(i)                                    during the Fast
Prepayment Period, each date agreed between the Trust Manager, the Issuer and
the initial subscribers for those Bonds; and

 

(ii)                                 after the Fast Prepayment
Period, each Payment Date for the Class A Bonds; and

 

(c)                                  in relation to a Calculation
Period, the next such date to occur after the end of that Calculation Period.

 

Permitted Further Advance means a Further Advance:

 

(a)                                  made or to be made (as the context
requires) at any time prior to the second anniversary of the Initial Issue
Date; and

 

(b)                                 in respect of which, immediately after
the making of that Further Advance, the Adjusted LVR of the relevant Loan would
not exceed 80%; and

 

(c)                                  in respect of which the aggregate
principal amount of all Further Advances (other than Further Advances in
respect of Loans sold or transferred by the Issuer under this Deed) immediately
after the making of that Further Advance would not exceed 5% of the A$
Equivalent of the Face Value of all Bonds on the Initial Issue Date; and

 

79

 

(d)                                 in respect of which, immediately after
the making of that Further Advance, the weighted average LVR of all Loans
forming part of the Assets of the Fund would not exceed what the weighted
average LVR of all Loans forming part of the Assets of the Fund would have been
had no Line of Credit Advances, Redraw Advances or principal payments (other
than scheduled principal payments) been made in respect of those Loans.

 

Principal Collections means, in relation to a Calculation Period, the
aggregate of all moneys received by the Issuer under, in respect of, or which
relate to, the Assets of the Fund (including, for the avoidance of doubt any
amounts received from the Trust Manager in respect of damages or compensation
for any breach by the Trust Manager of any of its obligations, or of any
representation or warranty given or made by it in respect of the Fund or any
Assets of the Fund under or in connection with any Transaction Document
relating to the Fund) and which are not Interest Collections.

 

Principal Paying Agent means, in relation to the US$ Bonds,
initially The Bank of New York, and thereafter the person who is from time to
time appointed as the Principal Paying Agent in accordance with these
Conditions and the relevant Paying Agency Agreement.

 

Record Date means, in relation to a date on which a payment
is due by the Issuer under or in respect of a Bond, 5.00pm (Sydney time) on the
date that is 5 Business Days before that date.

 

Redraw Advance means, in relation to a Loan, an advance by way of loan to a
Borrower which is a reborrowing of amounts previously prepaid in respect of the
Loan as unscheduled principal payments.

 

Redraw Mortgage means a Mortgage which secures a Loan in respect
of which the relevant Terms of Loan:

 

(a)                                  permits the Borrower to
request a reborrowing of amounts previously prepaid in respect of that Loan as
unscheduled principal payments; and

 

(b)                                either:

 

(i)                                    grants to the Issuer a
discretion as to the acceptance or rejection of that request; or

 

(ii)                                 grants to the Issuer a
discretion to reject that request if the Assets of the Fund are not sufficient
to enable the request to be accepted.

 

Redraw Request means a request by a Borrower for a Redraw
Advance which is made under and in accordance with a Redraw Mortgage and the
related Terms of Loan.

 

Reference Bank has the meaning given to that term in the
definition of LIBOR
in this Condition 1.2.

 

Reference Rate means:

 

(a)                                 in relation to each US$
Bond, LIBOR; and

 

80

 

(b)                                in relation to each Fast
Prepayment Bond, BBSW.

 

Required Cash Reserve means:

 

(a)                                  at all times while the A$
Equivalent of the aggregate Face Value of all US$ Bonds is greater than or equal to 25% of the
aggregate Issue Proceeds of the US$ Bonds, an amount of 0.25% of the aggregate
Issue Proceeds of the US$ Bonds; and

 

(b)                                 at any time thereafter,
an amount equal to 1% of the A$ Equivalent of the aggregate Face Value of all
US$ Bonds outstanding at that time,

 

or such other amount determined from time to time by the Trust Manager
and notified to the Issuer subject to each Designated Rating Agency confirming
that such amount will not cause the rating assigned by it to Bonds to be
downgraded below the Designated Rating, qualified or withdrawn.

 

Senior Bonds  means the Class A Bonds and the Fast Prepayment Bonds.

 

Specified Percentage means, in relation to a Currency Swap, the
percentage specified as such in the Confirmation for that Currency Swap.

 

Stated Value  means, in relation to a Bond, at any time:

 

(a)                                 the Face Value of that Bond at that time; minus

 

(b)                                any Unreimbursed Charge-offs in respect of that
Bond at that time.

 

Surplus Cash Reserve means, subject to Condition 6.7, on any
Payment Date the amount by which the Cash Reserve exceeds the Required Cash
Reserve on that Payment Date (after taking account of any payments to be made
on that date to the Cash Reserve under Condition 4.4(g) or from the Cash
Reserve under Condition 6.4).

 

Swap Margin means:

 

(a)                                 in relation to each Class
A Currency Swap:

 

(i)                                    before the Margin Step-Up
Date, [*]% per annum;

 

(ii)                                 on or after the Margin
Step-Up Date, [*]% per annum;

 

(b)                                 in relation to each
Class B Currency Swap:

 

(i)                                    before the Margin Step-Up
Date, [*]% per annum;

 

(ii)                                 on or after the Margin
Step-Up Date, [*]% per annum;

 

Swap Rate means, in relation to a Currency Swap and an
Interest Accrual Period, the rate (expressed as a percentage per annum) equal
to BBSW for that Interest Accrual Period plus the relevant Swap Margin.

 

Terms of Loan means, in relation to a Loan secured by a Mortgage,
the Ancillary Documents for that Loan.

 

81

 

United States means the United States of America (including
the States thereof and the District of Columbia) and its possessions (including
Puerto Rico, the US Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands).

 

Unreimbursed Advances Reserve Liquidity Draws means, at any time:

 

(a)                                 the aggregate of all
amounts previously applied under Condition 7.5; minus

 

(b)                                 the aggregate of all
amounts previously credited to the Advances Reserve under
Condition 4.4(h).

 

Unreimbursed Cash Reserve Liquidity Draws means, at any time:

 

(a)                                 the aggregate of all
amounts previously applied under Condition 6.4(a); minus

 

(b)                                 the aggregate of all
amounts previously credited to the Cash Reserve Account under
Condition 4.4(g).

 

Unreimbursed Charge-off means, in relation to a
Bond and a Payment Date, the aggregate amount of all Charge-offs in respect of
that Bond made prior to that Payment Date and which have not been reinstated
under Conditions 4.4(j) or (l) (as the case may be).

 

US$ Equivalent of any amount expressed in Australian Dollars
means the US Dollar equivalent of that amount calculated at the Exchange Rate.

 

Valuation means, in relation to Land the subject of a
Mortgage:

 

(a)                                  where a new valuation of that Land has
been obtained since the date the relevant Loan was settled, that valuation;

 

(b)                                where:

 

(i)                                    a new valuation of that Land has not
been obtained since the date the relevant Loan was settled; and

 

(ii)                                 the Face Value of the Loan was not
used in whole or part to purchase that Land,

 

the most recent valuation of that Land as at the date the Loan was
settled; or

 

(c)                                  where:

 

(i)                                    a new valuation of that Land has not
been obtained since the date the relevant Loan was settled; and

 

(ii)                                 the Face Value of the Loan was used in
whole or part to purchase that Land, the lower of:

 

(iii)                              the most recent valuation of that Land
as at the date the Loan was settled; and

 

(iv)                             the purchase price paid by the
Borrower to purchase that Land.

 

82

 

1.3                              Payment Dates

 

Each Payment Date is an Interest
Payment Date and an Amortisation Date for the purposes of the Master Trust
Deed.

 

2.                                     The Bonds

 

2.1                              Designation of Bonds

 

These Conditions relate to and
govern the issue by the Issuer in accordance with and pursuant to the Master
Trust Deed, the Bond Trust Deed, the Security Trust Deed and each Subscription
Agreement of the Bonds.

 

2.2                              Application of Proceeds of Issue - Class A Bonds and
Class B Bonds

 

On the Initial Issue Date, the
Trust Manager must direct the Issuer to, and the Issuer must:

 

(a)                                 apply the aggregate Subscription
Amount received by it in respect of the Class A Bonds and the Class B Bonds in
payment to the Class A Currency Swap Counterparties and the Class B Currency
Swap Counterparties of the Initial Exchange Amounts payable under the Class A
Currency Swaps and the Class B Currency Swaps respectively; and

 

(b)                                hold and apply the aggregate Initial
Exchange Amounts received by it under the Class A Currency Swaps and the Class
B Currency Swaps (being the A$ Equivalent of the Issue Proceeds of the Class A
Bonds and the Class B Bonds) in accordance with clause 6.8 of the Master Trust
Deed.

 

3.                                     Fast Prepayment Bonds

 

3.1                              Issue notice

 

Subject to Condition 3.4, the
Trust Manager may, at any time if it considers that the Advances Reserve is
insufficient to enable the Issuer to accept such Advances Requests as the Trust
Manager directs that it should accept, give an Issue Notice to the Issuer in
accordance with the Master Trust Deed and the following provisions of this
Condition 3, requiring the Issuer to issue Bonds designated Fast Prepayment Bonds.

 

3.2                              Terms of Fast Prepayment Bonds

 

Fast Prepayment Bonds:

 

(a)                                 shall be issued on and subject to the
terms and conditions set out in the Master Trust Deed, the Bond Trust Deed, the
Security Trust Deed and the relevant Subscription Agreement; and

 

(b)                                shall bear interest calculated and payable
in accordance with Condition 4.2.

 

83

 

3.3                              Investment of Issue Proceeds

 

Upon receipt of the Issue
Proceeds of any Fast Prepayment Bonds, the Trust Manager must direct the Issuer
to, and the Issuer must credit to the Advances Reserve the amount of those
Issue Proceeds.

 

3.4                              Conditions to further issue

 

The Trust Manager must not give
an Issue Notice under Condition 3.1:

 

(a)                                 if, upon:

 

(i)                                     making the credit in accordance with
Condition 3.3; and

 

(ii)                                  the Issuer subsequently accepting
those Advances Requests referred to in Condition 3.1,

 

the balance of the Advances Reserve would exceed the Maximum Advances
Reserve; or

 

(b)                                unless each Designated Rating Agency
has confirmed that any proposed Issue of Fast Prepayment Bonds will not cause
the credit rating assigned to any Bonds by that Designated Rating Agency to be
downgraded below the Designated Rating, qualified or withdrawn.

 

3.5                              Certain provisions of Master Trust Deed not to apply

 

(a)                                 Clauses 6.1(d)(vii), 6.1(e)(i) and
clause 6.1(f)(ii) of the Master Trust Deed shall not apply to an Issue Notice
given in accordance with Condition 3.1.

 

(b)                                Each such Issue Notice must contain a
certification by the Trust Manager to the Issuer that the issue of the Bonds
specified therein is consistent with all offering circulars, information
memoranda, notices and reports previously given to Bondholders and will not
cause any statement made in any such document or statement to be misleading or
deceptive or likely to mislead or deceive.

 

(c)                                 Upon receipt by the Issuer of an Issue
Notice given in accordance with Condition 3.1, clause 6.7(c)(iii) and clause
6.8 of the Master Trust Deed shall not apply.

 

(d)                                Clauses 6.9, 6.12 and 6.13 of the
Master Trust Deed shall not apply to an Issue of Fast Prepayment Bonds.

 

3.6                              Prior approval of Bondholders to issue of Fast
Prepayment Bonds

 

Each Bondholder, by subscribing
for or purchasing each Bond held by it, approves of, and consents to, the issue
by the Issuer at any time and from time to time of Fast Prepayment Bonds,
provided that each such issue complies with and is made in accordance with this
Condition 3.

 

84

 

4.                                     Interest entitlements

 

4.1                              Period during which interest accrues

 

Each Bond bears interest
calculated and payable in accordance with these Conditions from (and including)
the Issue Date to (but excluding) the date on which its Face Value is reduced
to zero in accordance with the Master Trust Deed, the Bond Trust Deed, the Security
Trust Deed and these Conditions.

 

4.2                              Calculation of interest

 

Interest payable on each Bond in
respect of each Interest Accrual Period relating thereto is calculated:

 

(a)                                 on a daily basis at the applicable
Interest Rate;

 

(b)                                on the Face Value of that Bond on the
commencement of the Interest Accrual Period (after taking into account any
repayments of the Face Value of that Bond made on the day on which that
Interest Accrual Period commences); and

 

(c)                                 on the basis of the actual number of
days in that Interest Accrual Period and:

 

(i)                                     in relation to each US$ Bond, a year
of 360 days; and

 

(ii)                                  in relation to each Fast Prepayment
Bond, a year of 365 days.

 

4.3                              Payment of interest

 

Subject to these Conditions, the
Master Trust Deed, the Bond Trust Deed and the Security Trust Deed, the Issuer
must, at the direction of the Trust Manager, on each Payment Date pay or cause
to be paid to each Bondholder the Interest Entitlement for the Interest Accrual
Period ending on that Payment Date.

 

4.4                              Application of interest collections

 

Subject to these Conditions, on
each Payment Date, the Trust Manager must direct the Issuer to, and the Issuer
must, apply or cause to be applied, the Interest Collections for the relevant
Calculation Period as follows:

 

(a)                                 (Taxes)  first, in or towards payment or reimbursement of all Taxes in
respect of the Fund payable or paid during that Calculation Period or which the
Issuer on the advice of the Trust Manager considers it necessary, on or before
the date which is three Business Days before the Payment Date relating to that
Calculation Period, to make provision for;

 

(b)                                (Expenses) 
second, in or towards payment or reimbursement of all Expenses of the
Fund (except for the Manager’s Fee but including, for the avoidance of doubt,
all costs, charges, fees and expenses properly incurred by the Security Trustee
in exercising its rights or performing its obligations under the Security Trust
Deed) payable or paid during that Calculation Period or which the Issuer on the
advice of the

 

85

 

Trust Manager considers it necessary, on or before the date which is
three Business Days before the Payment Date relating to that Calculation
Period, to make provision for;

 

(c)                                 (Interest Rate Swap Payments)  third, in or towards payment or
reimbursement of the aggregate Interest Rate Swap Payments for that Calculation
Period;

 

(d)                                (Manager’s Fee)  fourth, in or towards payment of the Manager’s Fee (including any
Manager’s Fee remaining unpaid from previous Payment Dates);

 

(e)                                 (Class A Currency Swaps and Fast Prepayment Bonds)  fifth, in or towards payment or
satisfaction, pari passu and rateably:

 

(i)                                     to the Class A Currency Swap
Counterparties (pari passu and rateably) of the Class A Currency Swaps Payment Amount
for that Payment Date; and

 

(ii)                                  of its obligations under Condition 4.3
with respect to payment of Interest Entitlements on the Fast Prepayment Bonds
for the Interest Accrual Period ending on that Payment Date, pari passu and
rateably;

 

(f)                                   (Class B Currency Swaps)  sixth, in or towards payment or satisfaction
to the Class B Currency Swap Counterparties (pari passu and rateably) of the
Class B Currency Swaps Payment Amount for that Payment Date;

 

(g)                                (Cash Reserve Liquidity Draws)  seventh, in crediting to the Cash Reserve
Account an amount equal to the Unreimbursed Cash Reserve Liquidity Draws at
that time;

 

(h)                                (Advances Reserve Liquidity Draws)  eighth, in crediting to the Advances Reserve
an amount equal to the Unreimbursed Advances Reserve Liquidity Draws at that
time;

 

(i)                                    (Avoiding Senior Bond Charge-offs): ninth, in reducing, pari passu and
rateably, any Charge-offs that would otherwise occur on that date in relation
to the Senior Bonds;

 

(j)                                    (Reinstating Senior Bond Unreimbursed  Charge-offs)  tenth, in reinstating, pari passu and
rateably, the Stated Value of the Senior Bonds to the extent of the
Unreimbursed Charge-offs in relation to the Senior Bonds;

 

(k)                                 (Avoiding Class B Bond Charge-offs)  eleventh, in reducing, pari passu and
rateably, any Charge-offs that would otherwise occur on that date in relation
to the Class B Bonds;

 

(l)                                    (Reinstating Class B Bond Unreimbursed  Charge-offs)  twelfth, in reinstating, pari passu and
rateably, the Stated Value of the Class B Bonds to the extent of the Unreimbursed
Charge-offs in relation to the Class B Bonds;

 

86

 

(m)                              (Interest Rate Swap Break Costs)  thirteenth, in or towards payment to the
Interest Rate Swap Counterparties, pari passu and rateably, of all Interest
Rate Swap Break Costs paid or payable during that Calculation Period; and

 

(n)                                (Beneficiary)  fourteenth, in payment of the balance (if any) to the Residual
Income Beneficiary of the Fund by way of a distribution of the income of the
Fund.

 

The obligation of the Issuer to
make any payment or application under each of the above paragraphs is limited
in each case to the Interest Collections or (as the case may be) to the balance
of the Interest Collections after application in accordance with the preceding
paragraph or paragraphs (if any), provided that nothing in this Condition 4.4
limits the operation of Condition 11.1(a).

 

4.5                              Application of Class A Currency Swap Receipts and the
Class B Currency Swap Receipts

 

(a)                                 On each Payment Date, the
Trust Manager must direct the Issuer to, and the Issuer must, apply or cause to
be applied:

 

(i)                                     the Class A Currency Swap
Receipts in or towards satisfaction (pari passu and rateably) of its obligations
under Condition 4.3 with respect to payment of the Interest Entitlements on the
Class A Bonds for the Interest Accrual Period ending on that Payment Date.

 

(ii)                                  the Class B Currency Swap
Receipts in or towards satisfaction (pari passu and rateably) of its obligations
under Condition 4.3 with respect to payment of the Interest Entitlements on the
Class B Bonds for the Interest Accrual Period ending on that Payment Date.

 

(b)                                The obligation of the
Issuer to make any payment or application under paragraph (a) is limited to the
Class A Currency Swap Receipts or the Class B Currency Swap Receipts (as the
case may be), provided that nothing in this Condition 4.5 limits the operation
of Condition 11.1(a).

 

(c)                                 The Issuer may comply
with its obligations under this Condition by arranging for each Currency Swap
Counterparty to pay amounts payable by it under the relevant Currency Swap
direct to the Principal Paying Agent for payment to the relevant US$
Bondholders in accordance with the Paying Agency Agreement.

 

4.6                              Calculation Agent

 

The Trust Manager must procure
that until the Face Value of all US$ Bonds has been reduced to zero, there will
at all times be a Calculation Agent.

 

4.7                              Calculation of interest

 

The Trust Manager must procure
that, as soon as practicable after 11.00 am on each Determination Date, the
Calculation Agent:

 

87

 

(a)                                 determines the Interest Rate for all
US$ Bonds for the Interest Accrual Period commencing on the next Payment Date;
and

 

(b)                                notifies the Issuer, the Trust
Manager, the Bond Trustee, each of the US$ Bondholders (in accordance with
Condition 15) and each of the Paying Agents of the Interest Rate so determined
specifying to the Trust Manager the basis of such determination.

 

4.8                              Failure by Calculation Agent to make determination

 

If for any reason the
Calculation Agent does not make the determination contemplated by Condition
4.7, the Trust Manager must request the Bond Trustee to make, and the Bond
Trustee must make, that determination as if it were the Calculation Agent.  Any such determination will be deemed to
have been made by the Calculation Agent.

 

4.9                              Determinations binding

 

Any determination made by the
Calculation Agent, the Bond Trustee, or any Reference Bank in accordance with
or as contemplated by these Conditions will (in the absence of negligence,
wilful default or bad faith) be binding on the Issuer and the Bondholders and
(in the absence of negligence, wilful default or bad faith) the Calculation
Agent and the Bond Trustee will have no liability to the Issuer or Bondholders
in connection with the making of, or failure to make, any determination under
these Conditions.

 

4.10                       Charge-offs

 

If on any Payment Date, the
Aggregate Loss Amount for the corresponding Calculation Period exceeds the
aggregate of the amounts allocated or available for allocation on that Payment
Date under paragraphs (i) and (k) of Condition 4.4, the Trust Manager must
direct the Issuer to, and the Issuer must, on and with effect from that Payment
Date:

 

(a)                                 reduce, pari passu and rateably, the
Stated Value of the Class B Bonds by the amount of that excess until the Stated
Value of each Class B Bond is reduced to zero; and

 

(b)                                if the Stated Value of all Class B
Bonds is zero and any amount of that excess has not been applied under
paragraph (a), reduce, pari passu and rateably, the Stated Value of the Senior
Bonds by the balance of that excess until the Stated Value of each Senior Bond
is zero.

 

5.                                     Repayment of principal of
Bonds

 

5.1                              Currency exchange of Available Amortisation Amount

 

On each Payment Date, the Trust
Manager must direct the Issuer to, and the Issuer must, apply or cause to be
applied the Available Amortisation Amount:

 

88

 

(a)                                 first, in or towards repayment, of the
Face Value of all Fast Prepayment Bonds in respect of which the Fast Prepayment
Period has not expired, pari passu and rateably among each tranche of those
Fast Prepayment Bonds in order of issue;

 

(b)                                second, in or towards payment or
repayment, pari passu and rateably:

 

(i)                                     to the Class A Currency Swap
Counterparties (pari passu and rateably) of an amount equal to the Class
A A$ Exchange Amount on that Payment Date; and

 

(ii)                                  of the Face Value of all
Fast Prepayment Bonds in respect of which the Fast Prepayment Period has
expired, pari passu and rateably; and

 

(c)                                 third, in or towards repayment, pari
passu and rateably, to the Class B Currency Swap Counterparties (pari passu and
rateably) of an amount equal to the Class B A$ Exchange Amount on that Payment
Date.

 

The obligation of the Issuer to
make any payment or application under each of the above paragraphs is limited
in each case to the Available Amortisation Amount or (as the case may be) to
the balance of the Available Amortisation Amount after application in
accordance with the preceding paragraph or paragraphs (if any), provided that
nothing in this Condition 5.1 limits the operation of Condition 11.1(a).

 

5.2                              Pass-through of Exchange Amounts

 

(a)                                 On each Payment Date, the Trust
Manager must direct the Issuer to, and the Issuer must, apply or cause to be
applied:

 

(i)                                    the Class A US$ Exchange Amount in or
towards repayment, pari passu and rateably, of the Face Value of the Class A
Bonds; and

 

(ii)                                 the Class B US$ Exchange Amount in or
towards repayment, pari passu and rateably, of the Face Value of the Class B
Bonds.

 

(b)                                The obligation of the Issuer to make
any payment or application under paragraph (a) is limited to the Class A US$
Exchange Amount or the Class B US$ Exchange Amount (as the case may be) on that
Payment Date, provided that nothing in this Condition 5.2 limits the operation
of Condition 11.1(a).

 

(c)                                 The Issuer may comply with its
obligations under this Condition by arranging for each Currency Swap
Counterparty to pay amounts payable by it under the relevant Currency Swap direct
to the Principal Paying Agent for payment to the relevant US$ Bondholders in
accordance with the Paying Agency Agreement.

 

5.3                              Rounding of payments

 

The Issuer must, if directed to
do so by the Trust Manager, round any amount payable in respect of a Bond under
Condition 5.1 or 5.2 downwards to the nearest whole dollar.

 

89

 

5.4                              Maturity Date

 

Subject to the Master Trust
Deed, the Bond Trust Deed, the Security Trust Deed and these Conditions, the
Issuer must repay the Face Value of each Bond in full on the Maturity Date.

 

5.5                              Effect of Pass-through

 

Any repayment made in respect of
a Bond reduces the Face Value of that Bond to the extent of the amount repaid.

 

6.                                     Cash reserve

 

6.1                              Cash Reserve Account

 

On the Initial Issue Date, the
Trust Manager must establish and at all times until the Face Value of all Bonds
is reduced to zero maintain a ledger account in the accounting records
maintained by it pursuant to the Master Trust Deed designated ARMS II Global Fund 2 - Cash Reserve
Account.

 

6.2                              Initial Cash Reserve

 

On the Initial Issue Date, the
Trust Manager must credit to the Cash Reserve Account an amount not less than
an amount equal to 0.25% of the aggregate Issue Proceeds of the Class A
Bonds and the Class B Bonds.  This
amount will represent part of the Issue Proceeds equal to part of the
difference between the aggregate Issue Proceeds of the Class A Bonds and the
Class B Bonds and the aggregate Face Value of the Mortgages.

 

6.3                              Investment of Cash Reserve

 

Amounts credited to the Cash
Reserve Account must be invested in Authorised Investments:

 

(a)                                 which are rated “AAA” or “A-1+” by
S&P and “Aaa” or “P1” by Moody’s or such other rating determined from time
to time by the Trust Manager (subject to each Designated Rating Agency
confirming that such other rating will not cause the rating assigned by it to
Bonds to be downgraded below the Designated Rating, qualified or withdrawn);

 

(b)                                which mature not later than the
Payment Date immediately after the date on which they are made; and

 

(c)                                 which are otherwise made in accordance
with the Master Trust Deed.

 

6.4                              Use of Cash Reserve

 

(a)                                 If on any Payment Date, the Net
Interest Collections for the relevant Calculation Period are less than the
aggregate of the Class A Currency Swaps Payment Amount and the Class B Currency
Swaps Payment Amount due to be paid on that Payment Date and the Interest
Entitlements due to be paid on that Payment Date to Fast Prepayment
Bondholders, the Cash Reserve must, to the extent of funds available, be

 

90

 

applied in or towards payment of the deficiency in the same order and
manner as set out in Condition 4.4(e) and (f), as if the Cash Reserve formed
part of the Net Interest Collections available for application on the relevant
Payment Date.

 

(b)                                On the Final Payment Date, the Trust
Manager must debit the balance of the Cash Reserve (after taking account of all
payments to be made on that date to the Cash Reserve under
Condition 4.4(g) or from the Cash Reserve under Condition 6.4(a)) and
add that amount to the Available Amortisation Amount.

 

6.5                              Surplus Cash Reserve

 

(a)                                 If on any Payment Date:

 

(i)                                     there is Surplus Cash Reserve; and

 

(ii)                                  the Required Cash Reserve is equal to
or exceeds the Bondholders’ Cash Reserve,

 

the Issuer may (at the direction of the Trust Manager) on that Payment
Date apply the Surplus Cash Reserve (in whole or in part):

 

(iii)                               first, in or towards payment, pari
passu and rateably, to the Cash Reserve Lenders of interest payable in respect
of Cash Reserve Top-Up Loans;

 

(iv)                              secondly, in or towards repayment,
pari passu and rateably, to the Cash Reserve Lenders of Cash Reserve Top-Up
Loans; and

 

(v)                                 thirdly, in payment of the Manager’s
Fee payable on that date.

 

(b)                                If on any Payment Date:

 

(i)                                     there is Surplus Cash Reserve; and

 

(ii)                                  the Required Cash Reserve is less than
the Bondholders’ Cash Reserve (the amount of the deficiency being referred to
as the Core Surplus),

 

then, on that Payment Date, the Issuer (at the direction of the Trust
Manager):

 

(iii)                               first, must apply the Surplus Cash
Reserve as part of the Available Amortisation Amount in the same order and
manner as set out in Condition 5.1 up to an amount equal to the Core Surplus;

 

(iv)                              second, must apply the balance of the
Surplus Cash Reserve (if any) in or towards payment, pari passu and rateably,
to the Cash Reserve Lenders of amounts outstanding under or in respect of Cash
Reserve Top-Up Loans; and

 

(v)                                 third, must apply the balance of the
Surplus Cash Reserve (if any) in making a payment to the Residual Income
Beneficiary in accordance with Condition 4.4(n).

 

(c)                                 The obligation of the Issuer to make
any payment or application under any sub-paragraph of each of paragraphs (a)
and (b) is limited in each case to the Surplus Cash

 

91

 

Reserve or (as the case may be) the balance of the Surplus Cash Reserve
after application in accordance with the preceding sub-paragraph or
sub-paragraphs (if any).

 

6.6                              Cash Reserve Top-Up Loans

 

The Trust Manager must not
direct the Issuer to borrow and the Issuer must not borrow any loan the
proceeds of which are credited to the Cash Reserve Account unless that loan is
on terms that:

 

(a)                                 the rights of the lender
to receive or demand payment are limited to receiving payments of amounts and
at the times as expressly contemplated by and provided for in Condition 6.5;

 

(b)                                with respect to payment
of any such amount, the lender may not, except for the purposes of enforcing
its rights referred to in paragraph (a):

 

(i)                                     sue the Issuer;

 

(ii)                                  obtain judgment against
the Issuer;

 

(iii)                               apply for or seek to wind
up the Fund; or

 

(iv)                              levy execution against
any Asset of the Fund.

 

6.7                              Income from Cash Reserve

 

After the date on which the
aggregate of the A$ Equivalent of the Face Value of the Class A Bonds and the
Face Value of the Class B Bonds is reduced to an amount equal to or less than
10% of the original aggregate of the A$ Equivalent of the Face Value of the
Class A Bonds and the Face Value of the Class B Bonds, all income derived from
Authorised Investments standing to the credit of the Cash Reserve Account shall
not be included in Interest Collections but shall be credited to and form part
of the Cash Reserve.  All amounts so
credited shall be disregarded for the purpose of calculating the Surplus Cash
Reserve.

 

7.                                     Advances Reserve

 

7.1                              Advances Reserve

 

In addition to the obligations
under Condition 3.3, on the Initial Issue Date, the Trust Manager must:

 

(a)                                 establish and maintain at all times, a
ledger account in the accounting records maintained by it pursuant to the
Master Trust Deed designated ARMS II Global Fund 2 - Advances Reserve; and

 

(b)                                credit to the Advances Reserve an
amount equal to the aggregate Issue Proceeds of the Class A Bonds and the Class
B Bonds minus the aggregate of:

 

92

 

(i)                                     the aggregate Face Value of the
Mortgages comprised in the Portfolio specified on the Issue Notice for the
Class A Bonds and the Class B Bonds; and

 

(ii)                                  the amount credited to the initial
Cash Reserve in accordance with Condition 6.2.

 

7.2                              Amount of Advances Reserve

 

The Trust Manager may, if it
considers it appropriate to do so on any Payment Date:

 

(a)                                 deduct from the Available Amortisation
Amount and credit to the Advances Reserve such amount as the Trust Manager
determines up to but not exceeding the amount by which the Maximum Advances
Reserve exceeds the balance of the Advances Reserve; or

 

(b)                                debit from the Advances Reserve and
add to the Available Amortisation Amount such amount as the Trust Manager
determines.

 

The Trust Manager must exercise
its discretion under this Condition 7.2 in good faith, having regard to the
actual and anticipated volume of Advances Requests, and the manner in which the
Trust Manager proposes to direct the Issuer with respect to Advances
Requests.  Without limiting any other
provision of these Conditions, the Master Trust Deed, the Bond Trust Deed and
the Security Trust Deed, the Issuer shall be entitled to accept and rely
conclusively on the exercise by the Trust Manager of its discretion under this
Condition 7.2.

 

7.3                              Final Payment Date

 

On the Final Payment Date, the
Trust Manager must debit the balance of the Advances Reserve (after taking
account of all payments to be made to the Advances Reserve under
Condition 4.4(h) or from the Advances Reserve under Condition 7.5)
and add that balance to the Available Amortisation Amount.

 

7.4                              Application of Advances Reserve

 

Amounts standing to the credit
of the Advances Reserve may only be applied, subject to Condition 7.5:

 

(a)                                 in making Redraw Advances;

 

(b)                                in making Line of Credit Advances;

 

(c)                                 in making Permitted Further Advances;
or

 

(d)                                in adding to the Available
Amortisation Amount in accordance with Condition 7.2(b) or Condition 7.3,
for distribution in accordance with Condition 5.1.

 

7.5                              Use of Advances Reserve

 

If on any Payment Date, the
aggregate of the Net Interest Collections for the relevant Calculation Period
plus the amount available to be applied under Condition 6.4(a) are less than

 

93

 

the aggregate of the Class A
Currency Swaps Payment Amount and the Class B Currency Swaps Payment Amount due
to be paid on that Payment Date and the Interest Entitlements due to be paid on
that Payment Date to Fast Prepayment Bondholders, the Advances Reserve must, to
the extent of funds available, be applied in or towards payment of the
deficiency in the same order and manner as set out in Condition 4.4(e) and (f),
as if the Advances Reserve formed part of the Net Interest Collections
available for application on the relevant Payment Date.

 

8.                                     Issuer’s Call Option

 

8.1                              Issuer Call Option Events

 

Each of the following is an
Issuer Call Option Event:

 

(a)                                 10 July 2009;

 

(b)                                the aggregate of the A$ Equivalent of
the Face Value of the Class A Bonds and the Face Value of the Class B Bonds is
reduced to an amount which is less than 10% of the original aggregate of the A$
Equivalent of the Face Value of the Class A Bonds and the Face Value of the
Class B Bonds;

 

(c)                                 the Trust Manager has delivered to the
Bond Trustee an Opinion of Counsel that either:

 

(i)                                     on the next Payment Date the Issuer
will be required to deduct or withhold from any payment of principal or
interest in respect of any Bonds any amount for or on account of any present or
future Taxes imposed, levied, collected, withheld or assessed by any Government
Body of any Australian Jurisdiction; or

 

(ii)                                  the total amount payable in respect of
interest in relation to the Loans secured by the Mortgages comprised in the
Assets of the Fund ceases to be receivable by reason of any deduction or
withholding for or on account of any present or future Taxes imposed, levied,
collected, withheld or assessed by any Government Body of any Australian
Jurisdiction; or

 

(d)                                any Class A Currency Swap or Class B
Currency Swap is terminated and is not replaced by a Class A Currency Swap or a
Class B Currency Swap (as the case may be) on terms such that the credit rating
of the Bonds by any Designated Rating Agency is downgraded to lower than the
Designated Rating, qualified or withdrawn.

 

8.2                              Exercise of Call Option

 

At any time on or after the
occurrence of an Issuer Call Option Event, the Issuer must, subject to
Condition 8.3, if directed to do so by the Trust Manager, redeem all (but not
some only) of the Bonds in full on the Payment Date specified in the direction.

 

94

 

8.3                              Notice of exercise

 

The Trust Manager may only give
a direction under Condition 8.2 if:

 

(a)                                 it does so not less than 15 Business
Days nor more than 30 Business Days before the Call Option Redemption Date;

 

(b)                                it takes such action as may be
required to ensure that the Issuer has available to it on the Call Option Redemption
Date sufficient funds to enable it to redeem the Face Value of all Bonds and
pay all accrued Interest Entitlements and other amounts payable in respect of
the Bonds in full;

 

(c)                                 it is satisfied that having regard to
the terms upon which any such funds are made available to the Issuer and all
other relevant matters, the Issuer will (subject to clause 25.9 of the Master
Trust Deed) be able to meet its obligations to all of its Creditors in full;
and

 

(d)                                it gives or procures the giving of
notice to Bondholders of the redemption not less than 15 Business Days nor more
than 30 Business Days before the Call Option Redemption Date.

 

The Trust Manager must provide
to the Issuer confirmation of the matters referred to in Conditions 8.3(b) and
(c) on which the Issuer may conclusively rely.

 

9.                                     Master Servicer’s and
Trust Manager’s obligations

 

9.1                              Threshold rate

 

In exercising its powers and
performing its obligations under the Master Trust Deed and the Master
Origination and Servicing Agreement, the Master Servicer must at all times
ensure that, to the extent that the Issuer is entitled to do so under the terms
of the Mortgages, the rate of interest payable on or in respect of Loans
secured by Mortgages comprised in the Assets of the Fund is changed from time to
time so that that rate of interest is not less than 0.25% higher than the
minimum rate required to ensure that:

 

(a)                                 on the assumption that all parties to
all of the Transaction Documents and all issuers of Authorised Investments from
time to time comprised in the Assets of the Fund have complied and will at all
times comply in full with their respective obligations under those Transaction
Documents and Authorised Investments; and

 

(b)                                having regard to:

 

(i)                                     the terms of the Transaction
Documents;

 

(ii)                                  the terms of the Mortgages comprised
in the Assets of the Fund;

 

(iii)                               the anticipated Expenses of the Fund;

 

(iv)                              the amount of the Cash Reserve
(including any Cash Reserve Top- Up Loans borrowed by the Issuer);

 

95

 

(v)                                 all other information available to the
Master Servicer;

 

(vi)                              the Reference Rate relating to the
Bonds from time to time;

 

(vii)                           any mismatch between the time at which
the Reference Rate relating to the Bonds is determined and the time at which
the rate of interest payable on or in respect of Mortgages comprised in the
Assets of the Fund may be reset;

 

(viii)                        the amounts payable by the Issuer
under the Currency Swaps; and

 

(ix)                                the income earned on all Authorised
Investments,

 

the Issuer will have available
to it at all times sufficient funds to enable it to comply with all of its
obligations under the Transaction Documents relating to the Fund as they fall
due.

 

9.2                              Interest rate risk management

 

The Trust Manager undertakes to
the Issuer to exercise its rights and powers under the Master Trust Deed and
each Interest Rate Swap in such a way so as to ensure that, except to the
extent that each Designated Rating Agency has confirmed in writing that any
failure to so exercise those rights and powers will not result in any credit
rating assigned by it to any of the Bonds to be downgraded, qualified or
withdrawn:

 

(a)                                 any mismatch between:

 

(i)                                     the basis of calculating interest
payable (and the principal amount by reference to which such interest is
payable) in respect of any Loan comprised in the Assets of the Fund; and

 

(ii)                                  the basis of calculating interest or
other amounts payable to the Fast Prepayment Bondholders, the Class A Currency
Swap Counterparties and the Class B Currency Swap Counterparties (and the
principal amount or other sum by reference to which such interest or other
amount is payable),

 

is fully hedged;

 

(b)                                the aggregate of the Notional Amounts
and Contract Amounts of all Interest Rate Swaps entered into by the Issuer and
in force from time to time is not more than 20% of the aggregate Face
Value of all Mortgages comprised in the Assets of the Fund (or such other
percentage as the Designated Rating Agencies may from time to time agree with
the Trust Manager and the Issuer);

 

(c)                                 the aggregate Face Value of all Fixed
Rate Mortgages having a Fixed Rate Term of between 3.5 years and 5.5 years is
not at any time more than 10% of the aggregate Face Value of all Mortgages
comprised in the Assets of the Fund (or such other term or percentage as the
Designated Rating Agencies may from time to time agree with the Trust Manager
and notify to the Issuer); and

 

(d)                                to the extent that the Issuer is
entitled to do so under the terms of the relevant Fixed Rate Mortgage, the rate
of interest payable on or in respect of a Loan secured by that

 

96

 

Fixed Rate Mortgage is such that the average interest rates payable on or
in respect of all Fixed Rate Mortgages comprised in the Assets of the Fund at
any time is not less than 1.20% higher than the average percentage rate per
annum at which payments payable to the Issuer under all Interest Rate Swaps
relating to all such Fixed Rate Mortgages are calculated or such other rate as
agreed from time to time between the Trust Manager and each Designated Rating
Agency.

 

9.3                              Transfer of Mortgage

 

If:

 

(a)                                 a Mortgage is to become a Fixed Rate
Mortgage; and

 

(b)                                on becoming a Fixed Rate Mortgage, the
Trust Manager will be unable to comply with its obligations under Conditions
9.2(b), 9.2(c) or 9.2(d); and

 

(c)                                 each Designated Rating Agency does not
give its prior written confirmation as contemplated by Condition 9.2,

 

the Trust Manager must, subject
to Condition 9.6, ensure that the relevant Mortgage and all rights under all
Ancillary Documents are sold or transferred by the Issuer prior to that
Mortgage becoming a Fixed Rate Mortgage.

 

9.4                              Loan portability

 

If:

 

(a)                                 a Mortgage is discharged; but

 

(b)                                the Loan secured by that Mortgage is
not repaid in full, and another mortgage is executed in favour of the Issuer as
security for that Loan,

 

the Trust Manager must ensure
that prior to or upon any such discharge, that Mortgage and all rights under
all relevant Ancillary Documents are, subject to Condition 9.6, sold or transferred
by the Issuer.

 

9.5                              Redraw Advances, Line of Credit Advances and Permitted
Further Advances

 

If the Trust Manager proposes
that the Issuer should lend any additional amount by way of Loan to a Borrower
after the Initial Issue Date:

 

(a)                                 otherwise than by a Redraw Advance, a
Line of Credit Advance or a Permitted Further Advance; or

 

(b)                                by way of a Redraw Advance, a Line of
Credit Advance or a Permitted Further Advance; and

 

(i)                                     the balance of the Advances Reserve is
insufficient to make that Loan; and

 

(ii)                                  the Trust Manager, having
considered the terms on which the Issuer is able to issue Fast Prepayment
Bonds, elects not to give the Issuer a notice in accordance with Condition 3.1,

 

97

 

the Trust Manager must ensure
that prior to any such additional Loan being made, the relevant Mortgage and
all rights under all relevant Ancillary Documents are, subject to Condition
9.6, sold or transferred by the Issuer.

 

9.6                              Consideration

 

Any sale or transfer of a Mortgage
and the rights under the relevant Ancillary Documents pursuant to Condition
9.3, 9.4 or 9.5 must, without limiting Condition 9.7, be made in consideration
of payment to the Issuer of the Face Value of that Mortgage.

 

9.7                              Subsequent Adjustment

 

(a)                                 (Accrued Interest):  The terms of a sale or transfer pursuant to
Condition 9.3, 9.4 or 9.5 must provide that, following such sale or transfer,
the Issuer shall be entitled to any interest proceeds received by the
transferee that represents interest accrued on the relevant Loan up to (but not
including) the date of such sale or transfer.

 

(b)                                (Other Costs):  Subject to paragraph (c) below, the Trust Manager may in its
absolute discretion direct PCL in writing on or at any time after a sale or
transfer from the Issuer to PCL, in its capacity as trustee of a Fund (as
defined in the Master Trust Deed) other than the Fund (the Acquiring Fund) to transfer funds between the
corresponding Fund or Acquiring Fund with such other amounts as the Trust
Manager considers appropriate, so that:

 

(i)                                     the Fund has the benefit of any
receipts, and bears the cost of any losses or outgoings, in respect of each
relevant Mortgage and the rights under the Ancillary Documents up to (but not
including) the date of the sale or transfer of that Mortgage; and

 

(ii)                                  the Acquiring Fund has the benefit of
such receipts, and bears such costs, from (and including) the date of the sale
or transfer of that Mortgage.

 

(c)                                 (Trust Manager to Certify Adjustments):  A written direction by the Trust Manager
pursuant to this Condition 9.7 must certify that the relevant amount is, in the
opinion of the Trust Manager, to be properly debited or credited to the Fund or
the Acquiring Fund (as the case may be).

 

(d)                                (PCL to Act in accordance with Direction):  PCL must act in accordance with, and may rely
upon, a written direction of the Trust Manager and any certificate given in
accordance with this Condition 9.7.

 

10.                              Payments

 

10.1                       Payment generally

 

The Issuer must make or cause to
be made all payments in respect of each Bond to the Bondholder on the due date
for payment in accordance with this Condition 10.  Payments in

 

98

 

respect of each US$ Bond are to
be made in US Dollars.  Payments in
respect of each Fast Prepayment Bond are to be made in Australian Dollars.

 

10.2                       No deduction for Taxes and no set-off or counterclaim

 

All payments by the Issuer under
or in respect of any Bond, whether of principal, interest or other amounts must
be made:

 

(a)                                 free of any set-off or counterclaim;
and

 

(b)                                without deduction or withholding for
any present or future Taxes, unless the Issuer is compelled by law to deduct or
withhold the same.

 

10.3                       Payment net of Taxes

 

If the Issuer is legally obliged
to make any deduction or withholding for or on account of Taxes from any amount
payable by it under or in respect of any Bond, the Issuer must:

 

(a)                                 pay to the appropriate Government Body
any amount deducted or withheld in respect of Taxes within the time permitted
for payment; and

 

(b)                                within 30 days after a request by the
relevant Bondholder, provide to that Bondholder evidence satisfactory to it of
that payment having been made.

 

The Issuer has no obligation to
make any additional payment to the Bondholders or any other person in respect
of any such deduction or withholding.

 

10.4                       Prescription

 

Claims against the Issuer for
payment under the Bonds are void unless made within 10 years (in the case
of principal) or 5 years (in the case of interest and other amounts) of the due
date for payment.

 

10.5                       Payments on Business Days

 

If the due date for payment of
any amount, or the doing of any thing, in respect of any Bond is not a Business
Day, then the Modified Following Business Day Convention (as defined in the
ISDA Definitions) shall apply to the making of that payment or the doing of
that thing.

 

10.6                       Unpaid amounts

 

If any amount is not paid in
respect of any Bond on the date when due and payable, that amount shall itself
bear interest at the Interest Rate applicable from time to time to that Bond
until the amount, and interest on it, is available for payment and notice of
that availability has been duly given in accordance with Condition 15.  Interest which has accrued under this
Condition 10.6 will not itself accrue interest pursuant to this Condition.

 

10.7                       Paying Agents

 

The Issuer may at any time and
in accordance with the relevant Paying Agency Agreement vary or terminate the
appointment of the Principal Paying Agent and appoint additional or other

 

99

 

Paying Agents, provided that it
will at all times maintain a Paying Agent having a specified office in New York
City.  Notice of any such termination or
appointment and of any change in the office through which any Paying Agent will
act must be given in accordance with Condition 15.

 

10.8                       Payments to Bondholders

 

Any moneys payable to a
Bondholder must be paid by:

 

(a)                                 a “not negotiable” cheque:

 

(i)                                     in the case of a payment to a US$
Bondholder, drawn on a bank in New York City; and

 

(ii)                                  in the case of a payment to a Fast
Prepayment Bondholder, drawn on a bank in Australia,

 

in favour of the relevant Bondholder despatched by post to the address of
that Bondholder as it appears on the relevant Register on the relevant Record
Date; or

 

(b)                                by direct transfer to a bank account:

 

(i)                                     in the case of a US$ Bondholder, with
a bank in New York City; and

 

(ii)                                  in the case of a Fast Prepayment
Bondholder, with a bank in Australia,

 

designated by the relevant Bondholder as it appears on the relevant
Register on the relevant Record Date.

 

10.9                       Replacement of US$ Bonds

 

If any US$ Bond is lost, stolen,
mutilated, defaced or destroyed, it may be replaced at the specified office of
any Paying Agent upon payment by the claimant of the costs incurred in
connection with that replacement and on such terms as to evidence and indemnity
as the Paying Agent may reasonably require. 
Mutilated or defaced US$ Bonds must be surrendered before replacements
will be issued.

 

10.10                Final Redemption of Bonds

 

Each Bond will be finally
redeemed, and the obligations of the Issuer with respect to the payment of the
Face Value of that Bond will be finally discharged, upon the first to occur of:

 

(a)                                 the date on which the Face Value of
that Bond is reduced to zero;

 

(b)                                the date on which the relevant
Bondholder renounces in writing all of its rights to any amounts payable under
or in respect of that Bond;

 

(c)                                 the date on which all amounts received
by the Security Trustee with respect to the enforcement of the Security Trust
Deed are paid to that Bondholder;

 

100

 

(d)                                the Payment Date immediately following
the date on which the Issuer completes a sale and realisation of all of the
assets of the Fund in accordance with the Master Trust Deed.

 

11.                              Events of Default

 

11.1                       Events of Default

 

Each of the following events
constitutes an Event of Default:

 

(a)                                 the Issuer fails to pay all or any
part of the Secured Moneys (other than the Interest Rate Swap Counterparties’
Secured Moneys owing in respect of Interest Rate Swap Break Costs, the Currency
Swap Counterparties’ Secured Moneys and, for so long as any Bondholders’
Secured Moneys are owing to the Class A Bondholders, any Bondholders’ Secured
Moneys owing to the Class B Bondholders) within 5 Business Days from the date
such Secured Moneys fall due for payment;

 

(b)                                the Issuer fails to comply with any of
its obligations (other than an obligation referred to in paragraph (a)) under
the Bond Trust Deed or the Security Trust Deed where such failure will have a
Material Adverse Effect and such default, if capable of remedy is not remedied
within 15 Business Days after written notice (or such longer period as may be
specified in the notice) from the Security Trustee requiring the same to be
remedied;

 

(c)                                 any representation or warranty made by
the Issuer in the Bond Trust Deed or the Security Trust Deed is untrue or
incorrect in any material respect when made or deemed to be repeated;

 

(d)                                an Event of Insolvency:

 

(i)                                     occurs in relation to PCL (in its
personal capacity) and a new Issuer is not appointed in accordance with clause
17 of the Master Trust Deed within 30 days of the occurrence of that event; or

 

(ii)                                  occurs in relation to the Fund;

 

(e)                                 any of the Secured Documents (other
than a Mortgage or an Ancillary Document):

 

(i)                                     is or becomes illegal, invalid or
unenforceable in whole or in any material respect which would have a Material
Adverse Effect;

 

(ii)                                  is terminated, and in the case of the
Master Origination and Servicing Agreement, an Interest Rate Swap or a Currency
Swap is not replaced immediately (or within such other period as the Trust
Manager and the Security Trustee may approve, such approval only to be given if
each Designated Rating Agency has confirmed that the giving of such approval
will not result in the rating assigned to the Bonds being downgraded below the

 

101

 

Designated Rating, qualified or withdrawn) by an agreement or arrangement
on terms and with a party such that each Designated Rating Agency confirms that
such replacement agreement or arrangement will not result in the rating
assigned to the Bonds being downgraded below the Designated Rating, qualified
or withdrawn;

 

(f)                                   the Charge is not or ceases to be a
first ranking charge, ranking over the Charged Property to the extent of the
Secured Moneys, in priority to all other claims against the Issuer or the
Charged Property;

 

(g)                                the Issuer becomes entitled to
terminate the appointment of the Trust Manager under the Master Trust Deed and
does not do so within 20 Business Days of becoming so entitled or such other
period specified in a written notice from the Security Trustee requiring the
Issuer to terminate such appointment; and

 

(h)                                the Trust Manager resigns or is
removed from office and another person is not appointed in accordance with the
Master Trust Deed immediately (in the case of a resignation) or within
3 months (in the case of a removal from office) as a successor trust
manager:

 

(i)                                     who is approved by the Security
Trustee, such approval not to be unreasonably withheld or delayed; and

 

(ii)                                  whose appointment will not cause the
credit rating of any Bond to be downgraded below its Designated Rating,
qualified or withdrawn.

 

11.2                       Consequences of Default

 

At any time after the occurrence
of an Event of Default, the Security Trustee may, upon and subject to the terms
of the Security Trust Deed (but without limiting any of those terms), do any
one or more of the following:

 

(a)                                 declare the Charge to be enforceable;

 

(b)                                declare the Secured Moneys to be
immediately due and payable on demand, whereupon the same shall become so due
and payable; and

 

(c)                                 exercise all or any of its Powers
which are or are expressed to arise upon the Charge becoming enforceable.

 

12.                              Limitation on enforcement
of Bonds

 

Unless the Security Trustee
having become bound to perform its obligations under the Security Trust Deed
fails to do so within 7 Business Days of being obliged to do so and such
failure is continuing, the rights of the Bond Trustee and/or each Bondholder to
enforce the obligations of the Issuer with respect to payment of amounts due
under or in respect of any Bonds are limited to the exercise of its rights to
enforce and seek due administration of the

 

102

 

Security Trust Deed.  In particular, unless the Security Trustee
having become bound to perform its obligations under the Security Trust Deed
fails to do so within 7 Business Days of being obliged to do so and such failure
is continuing, neither the Bond Trustee nor any Bondholder may, with respect to
payment of any such amount:

 

(a)                                 sue the Issuer;

 

(b)                                obtain judgment against the Issuer;

 

(c)                                 apply for or seek to wind up the Fund;
or

 

(d)                                levy execution against any Asset of
the Fund.

 

13.                              Manager’s Fee

 

13.1                       Calculation of Fee

 

The Trust Manager shall, subject
to Condition 13.2, be entitled to be paid on each Payment Date, in respect of
the performance of its duties as Trust Manager in relation to the Fund, the
Manager’s Fee in respect of the Interest Accrual Period then ended.  The Manager’s Fee payable on each Payment
Date in respect of the Interest Accrual Period then ended accrues on a daily
basis on the actual number of days in that Interest Accrual Period.

 

13.2                       Payment of Fee

 

The Trust Manager’s entitlement
to be paid the Manager’s Fee in respect of an Interest Accrual Period on the
Payment Date for that Interest Accrual Period is limited to the amount it is
entitled to receive on that Payment Date in accordance with Conditions 4.4(d)
and 6.5(a)(v).  However, nothing in this
Condition 13.2 shall be construed as limiting the entitlement of the Trust
Manager to any unpaid Manager’s Fee payable in accordance with Condition 4.4 in
respect of prior Payment Dates.

 

13.3                       Trust Manager’s obligations

 

Without limiting the Trustee’s
Indemnity in relation to the Assets of the Fund, the Trust Manager must,
subject to Condition 13.4 pay and be responsible for all Expenses of the Fund
(other than the Manager’s Fee but including, for the avoidance of doubt, all
costs, charges, fees and expenses properly incurred by each of the Bond Trustee
and the Security Trustee in exercising its rights or performing its obligations
under the Bond Trust Deed and the Security Trust Deed) and must indemnify the
Issuer on demand for all Expenses of the Fund (other than the Manager’s Fee)
incurred or paid by the Issuer.

 

13.4                       Trust Manager’s aggregate liability

 

The Trust Manager’s aggregate
liability under Condition 13.3 at any time is limited to the aggregate of the
Manager’s Fee paid to the Trust Manager or to which the Trust Manager is
entitled as at that time.

 

103

 

14.                              Rating requirements

 

14.1                       Designated Ratings

 

The Designated Ratings for the
Bonds are as follows:

 

	
  Class of Bond

  	
   

  	
  Designated Rating

  
	
   

  	
   

  	
   

  
	
  Class
  A Bonds

  	
   

  	
  “AAA”
  (S&P) “Aaa” (Moody’s)

  
	
   

  	
   

  	
   

  
	
  Class
  B Bonds

  	
   

  	
  “AA”
  (S&P) and “Aa3” (Moody’s)

  
	
   

  	
   

  	
   

  
	
  Fast
  Prepayment Bonds

  	
   

  	
  As
  specified in the Conditions relating thereto

  

 

14.2                       Designated Rating Agency

 

The Designated Rating Agencies
as at the Initial Issue Date:

 

(a)                                 for the Class A Bonds are S&P and
Moody’s; and

 

(b)                                for the Class B Bonds are S&P and
Moody’s.

 

14.3                       Minimum rating requirements

 

Subject to Condition 6.3, all
Authorised Investments of the Fund other than cash and Mortgages must be rated
“AAA” or “A-1+” by S&P and “Aaa” or “P1” by Moody’s (or in any such case,
such other credit rating as the relevant Designated Rating Agency may from time
to time agree) and must mature such that the Issuer is able to meet its
obligations under the Transaction Documents as they fall due.

 

14.4                       No other requirements

 

For the purposes of clause
6.3(h) of the Master Trust Deed, there are no minimum rating requirements in
relation to the Fund, other than those expressly set out in these Conditions or
the Master Trust Deed.

 

15.                              Notices

 

(a)                                 Subject to paragraph (b), all notices
to US$ Bondholders, including any notices specifying a Payment Date, an
Interest Rate, an Interest Entitlement, the amount of any payment of principal
(or the absence of any payment of principal) shall be deemed to be duly given
or made if sent by prepaid mail to the address of each relevant US$ Bondholder
as it appears on the US$ Register.  Any
such notice will be deemed to have been given or made on the date that it is
sent.

 

(b)                                If and for so long as the US$ Bonds
are listed on the Irish Stock Exchange and the rules of the Irish Stock
Exchange so require, all notices to the Bondholders in respect

 

104

 

of those US$ Bonds must be published in the Irish Stock Exchange Daily
Official List.  Any such notice will be
deemed to have been given or made on the date that it is first so published.

 

(c)                                 All notices to Fast Prepayment
Bondholders shall be deemed to be duly given or made by an advertisement placed
on a Business Day in the Australian Financial Review (or other newspaper
distributed nationally in Australia). 
Any such notice will be deemed to have been given or made on the date on
which the relevant advertisement is first published.

 

(d)                                The Bondholders will be deemed for all
purposes to have notice of the contents of any notice given in accordance with
this Condition 15.

 

16.                              Liability of Issuer

 

(a)                                 The Issuer has no personal liability
in relation to any of its obligations under or arising out of these Conditions
or any of the Transaction Documents entered into in its capacity as trustee of
the Fund.

 

(b)                                In relation to each such obligation,
the liability of the Issuer is limited to and does not extend beyond the Assets
of the Fund as they stand at the time at which the obligation is met or
satisfied.

 

(c)                                 The Issuer is not liable to meet or
satisfy any such obligation from its own assets (except the Trustee’s
Indemnity) and each such obligation must be met or satisfied from the Fund or
the Trustee’s Indemnity.

 

(d)                                The preceding paragraphs apply
notwithstanding the fact that the liabilities of the Issuer in its capacity as
the trustee of the Fund may from time to time and at any time almost equal,
equal or exceed the value of the Assets of the Fund at the relevant time.

 

(e)                                 The previous paragraphs of this
Condition 16 do not apply to the liability of the Issuer in relation to any
obligation which in any Transaction Document the Issuer expressly assumes in
its personal capacity.

 

(f)                                   It is acknowledged by the Issuer that
the Assets of the Fund at any time will include the amount of any compensation
found by a Final Judgment (or admitted by the Issuer) to be payable by the
Issuer to restore the Fund because of a failure by the Issuer to exercise in
relation to the Fund the degree of care, diligence and prudence required of a
trustee or because of some other neglect, default or breach of duty by the
Issuer having regard to the powers and duties conferred on the Issuer by the
Master Trust Deed, in either case occurring before the time in question and
causing loss to the Fund quantified before the time in question.

 

105

 

(g)                                For the purposes of this Condition 16,
Final Judgment means
a judgment of a court of law in Australia against which there can be no appeal
or in relation to which the time to appeal has expired.

 

17.                              Meetings of Bondholders

 

17.1                       General

 

The Bond Trust Deed contains
provisions for convening meetings of Bondholders to consider any matter
affecting their interests including, by Extraordinary Resolution, to approve of
a person to be appointed as a successor Bond Trustee or Security Trustee and to
remove the Bond Trustee or the Security Trustee.

 

17.2                       Resolutions binding

 

(a)                                 Subject to the provisions of the
Meetings Procedures and to the Bond Trust Deed and the Security Trust Deed, any
resolution passed at a meeting of Bondholders duly convened and held shall be
binding upon all the Bondholders, whether or not present, or entitled to be
present, at such meeting and whether or not voting, and each of the Issuer and
the Bondholders shall be bound to give effect to such resolution accordingly
and the passing of any such resolution shall be conclusive evidence that the
circumstances justify the passing thereof.

 

(b)                                Subject to Condition 17.3, an
Extraordinary Resolution passed at any meeting of the Class A Bondholders shall
be binding on the Class B Bondholders irrespective of the effect upon them.

 

(c)                                 An Extraordinary Resolution of the
Bondholders of Class B Bonds shall not be effective for any purpose while any
Class A Bonds remain outstanding unless either:

 

(i)                                     the Bond Trustee is of the opinion
that it would not be materially prejudicial to the interests of the Class A
Bondholders; or

 

(ii)                                  it is sanctioned by an Extraordinary
Resolution of the Class A Bondholders.

 

17.3                       Basic Terms Modification

 

(a)                                 No Extraordinary Resolution of the
Class A Bondholders to sanction any of the following matters (each a Basic Terms Modification):

 

(i)                                     modification of the date upon which
all or any part of the Bondholders’ Secured Moneys are payable;

 

(ii)                                  modification of any amount of the
Bondholders’ Secured Moneys payable or of the method of calculating any such
amount;

 

(iii)                               alteration of the currency in which
all or any part of the Bondholders’ Secured Moneys is payable; and

 

106

 

(iv)                              alteration of the majority required to
pass an Extraordinary
Resolution;

 

(v)                                 the sanctioning of any scheme or
proposal described in paragraph 17(k) of Schedule 7;

 

(vi)                              the alteration of clause 10.2 of the
Security Trust Deed; and

 

(vii)                           the alteration of paragraph 5 or 6 of
Schedule 7,

 

of any Class or Classes of Bonds shall be effective for any purpose
unless its becoming effective shall have been sanctioned by an Extraordinary
Resolution of the Fast Prepayment Bondholders and by an Extraordinary
Resolution of the Class B Bondholders or the Security Trustee is of the opinion
that its becoming effective will not be materially prejudicial to the interests
of the Fast Prepayment Bondholders and the Class B Bondholders.

 

(b)                                No Extraordinary Resolution of the
Fast Prepayment Bondholders to sanction a Basic Terms Modification of any Class
or Classes of Bonds shall be effective for any purpose unless its becoming
effective shall have been sanctioned by an Extraordinary Resolution of the
Class A Bondholders and by an Extraordinary Resolution of the Class B
Bondholders or the Security Trustee is of the opinion that its becoming
effective will not be materially prejudicial to the interests of the Class A
Bondholders and the Class B Bondholders.

 

(c)                                 No Extraordinary Resolution of the
Class B Bondholders to sanction a Basic Terms Modification of any Class or
Classes of Bonds shall be effective for any purpose unless its becoming
effective shall have been sanctioned by an Extraordinary Resolution of Class A
Bondholders and by an Extraordinary Resolution of the Fast Prepayment
Bondholders or the Security Trustee is of the opinion that its becoming
effective will not be materially prejudicial to the interests of the Class A
Bondholders and the Fast Prepayment Bondholders.

 

18.                              Law and jurisdiction

 

18.1                       Governing law

 

These Conditions shall be
governed by and construed in accordance with the laws of the State of New South
Wales, Australia.  The Bond Trust Deed
is governed by the laws of the State of New South Wales, Australia and the
administration of the trust constituted under the Bond Trust Deed is governed
by the laws of the State of New York, United States of America.

 

18.2                       Jurisdiction

 

Each Bondholder irrevocably:

 

(a)                                 submits to and accepts, generally and
unconditionally, the non-exclusive jurisdiction of the courts and appellate
courts of the State of New South Wales with respect to any

 

107

 

legal action or proceedings which may be brought at any time relating in
any way to these Conditions; and

 

(b)                                waives any objection it may now or in
the future have to the venue of any such action or proceedings and any claim it
may now or in the future have that any such action or proceedings have been
brought in an inconvenient forum.

 

108

 

Schedule 4

 

Form of Bond Application

 

 

ARMS II GLOBAL
FUND 2

 

To:                                              Permanent Custodians
Limited [the Issuer]

 

and

 

Australian Securitisation Management Pty Limited [the Trust Manager]

 

From:                                                                
ACN

[insert name]

 

of:                                                                                    
(the Applicant)

[insert address]

 

The Applicant applies for
the following bonds (the Bonds) to be issued by the Issuer, as Trustee of ARMS II
Global Fund 2 (the Fund)
established pursuant to the Master Trust Deed (the Master Trust Deed) dated 7 March 1995 (as
amended and restated) made between the Issuer and Australian Mortgage
Securities Ltd relating to the ARMS II Funds.

 

Bonds Applied For

 

Name/Designation:

 

Maturity Date:

 

Number of Bonds:

 

[Series:]

 

Interest Payment Dates:

 

[Amortisation Dates:]

 

Aggregate Face Value
applied for:

 

Acknowledgement and Agreement of
Applicant

 

The Applicant
acknowledges and agrees that:

 

1.                                                       the Bonds will be issued
upon and subject to the terms of the Master Trust Deed, the Conditions, the
Bond Trust Deed dated [ ] 2003 executed by the Issuer in its capacity as
trustee of the Fund, the Trust Manager, Permanent Registry Limited as Security
Trustee and The Bank of New York as Bond Trustee and the Security Trust Deed
dated [ ] 2003 between the Issuer in its capacity as trustee of the Fund, the
Trust Manager, the Security Trustee and the Bond Trustee;

 

109

 

2.                                                       the Issuer has no
personal liability in relation to any of its obligations under or arising out
of the Bonds or any other Transaction Document entered into in its capacity as
trustee of the Fund;

 

3.                                                       the liability of the
Issuer under or in respect of the Bonds and the other Transaction Documents
entered into in its capacity as trustee of the Fund is limited to and does not
extend beyond the Assets of the Fund as they stand at the time at which such
obligations are to be met or satisfied; and

 

4.                                                       the Issuer is not liable
to meet or satisfy any such obligation from its own assets (except the
Trustee’s Indemnity) and each such obligation must be met or satisfied from the
Fund or the Trustee’s Indemnity.

 

Payments

 

Payments due under the
Bonds should be made:

 

o                                   By cheque posted to the
above address.

 

o                                   To the credit of the
following account:

 

Name of Bank:

 

Address of Bank:

 

Account No.:

 

Name of Account:

 

Applicant’s tax file number:

 

Interpretation

 

Words and expressions
which are defined in the Bond Trust Deed have the same meanings when used in
this Bond Application.

 

SIGNED:
                              

 

DATED: 
                              

 

•                  If the Applicant is a
trustee, this Bond Application must be completed in the name of the Applicant
and signed by the Applicant without reference to any trust.

 

•                  If the Applicant is a
corporation, it must be executed either under the Applicant’s common seal or
under Power of Attorney executed under its common seal.

 

•                  If this Bond Application
is signed under Power of Attorney, the Attorney certifies that he or she has
not received notice of revocation of that Power of Attorney.  A certified copy of the Power of Attorney
must be lodged with this Bond Application.

 

110

 

Schedule 5

 

Form of Registration Confirmation

 

 

ARMS II GLOBAL
FUND 2

 

Name/Designation of Bonds:

 

[Series]:

 

Face Value (as at the date hereof):

 

Interest Rate:

 

Interest Payment Dates:

 

[Amortisation Dates]:

 

Maturity Date:

 

This confirms that:

 

Bondholder:

 

ACN (if applicable):

 

Address:

 

appears in the A$
Register as the holder of the abovementioned Bonds (the Bonds).

 

The Bonds are issued by
Permanent Custodians Limited, ACN 001 426 384 in its capacity as trustee (the Issuer) of the
abovementioned Fund (the Fund) established pursuant to a Master Trust Deed (the Master Trust Deed)
dated 7 March 1995 for the ARMS II Funds (as amended and restated and as
applicable to the Fund).

 

The Bonds are issued
subject to the provisions of the Master Trust Deed, the Conditions, the Bond
Trust Deed dated [ ] 2003 executed by the Issuer, Australian Mortgage
Securities Ltd, Australian Securitisation Management Pty Limited as the Trust
Manager, Permanent Registry Limited as the Security Trustee and The Bank of New
York as the Bond Trustee and the Security Trust Deed dated [ ] 2003 between the
Issuer, the Trust Manager, the Security Trustee and the Bond Trustee.  A copy of the Master Trust Deed, the
Conditions, the Security Trust Deed and the Bond Trust Deed are available for
inspection by Bondholders at the offices of the Trust Manager at
[                    ].

 

The Issuer has no
personal liability in relation to any of its obligations under or arising out
of the Bonds or any other Transaction Document entered into in its capacity as
trustee of the Fund.

 

The liability of the
Issuer under or in respect of the Bonds and the other Transaction Documents
entered into in its capacity as trustee of the Fund is limited to and does not
extend beyond the Assets of the Fund as they stand at the time at which such
obligations are to be met or satisfied.

 

111

 

The Issuer is not liable
to meet or satisfy any such obligation from its own assets (except the
Trustee’s Indemnity) and each such obligation must be met or satisfied from the
Fund or the Trustee’s Indemnity.

 

This Registration Confirmation
is not a certificate of title and the A$ Register is the only conclusive
evidence of the abovementioned Bondholder’s entitlement to Bonds.

 

Transfers of Bonds must
be effected pursuant to a Transfer and Acceptance Form in the form required by
the Bond Trust Deed.  Executed Transfer
and Acceptance Forms must be submitted to the A$ Registrar.

 

Words and expressions
which are defined in the Bond Trust Deed or the Master Trust Deed have the same
meanings when used in this Registration Confirmation.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
  For
  and on behalf of the A$ Registrar

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorised
  Signatory

  	
   

  
			

 

112

 

Schedule 6

 

Form of Transfer and Acceptance

 

 

ARMS II GLOBAL
FUND 2

 

	
  To:                             Permanent Custodians
  Limited

   

  ACN 001 426 384 (the A$ Registrar)

  	
  Registry Use Only

  	
  Date
  Lodged

  

        /      /      

  

 

	
  TRANSFEROR

  	
   

  
	
   

  	
   

  
	
  (Full
  Name ACN (if applicable)

  and Address)

  	
   

  
	
   

  	
   

  
	
  (Please
  Print)

  	
   

  

 

	
  TRANSFERS TO

  	
   

  
	
   

  	
   

  
	
  TRANSFEREE

  	
   

  
	
   

  	
   

  
	
  (Full
  Name ACN (if applicable)

  and Address)

  	
   

  
	
   

  	
   

  
	
  (Please
  Print)

  	
   

  

 

The following Bonds (the Bonds) issued by
Permanent Custodians Limited, as trustee (the Issuer) of ARMS II Global Fund 2 (the Fund) constituted
under the Master Trust Deed (the Master Trust Deed) dated 7 March 1995 made between the
Issuer and Australian Mortgage Securities Ltd (as amended and restated and as
applicable to the Fund):

 

 

Name/Designation:

Maturity Date:

Number of Bonds:

[Series]:

[Original Face Value as at Issue Date]:

Interest Payment Dates:

[Amortisation Dates]:

 

113

 

	
   

  	
   

  	
   

  	
  Settlement Amount

  

  $

  

 

and all of the
Transferor’s right, title, benefit and interest in and to the same (including
all Interest Entitlements accrued thereon but unpaid).

 

TRANSFEROR

 

(Signature: see Notes)

 

	
  WITNESS

  	
   

  	
  Date
      /     /

  

 

 

TRANSFEREE

 

(Signature: see Notes)

 

	
  WITNESS

  	
   

  	
  Date
      /     /

  

 

 

PAYMENTS

(Tick where appropriate)

 

	
   

  	
  o  In
  accordance with existing instructions (existing Bondholders only) 

  
	
   

  	
  o  By
  cheque posted to the above address    

  	
  o  By
  credit to the following account in 
  Australia and the name of the Transferee only

  
	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
  Tax File Number (if
  applicable):

  

 

 

	
  Authorised
  Signature of Transferee

  	
   

  	
  Date
      /     /

  

 

Notes for Completion

 

•                                         If the
Transferor/Transferee is a trustee, this Transfer and Acceptance must be
completed in the name of the Transferor/Transferee and signed by it without
reference to any trust.

 

•                                         If the
Transferor/Transferee is a corporation, this Transfer and Acceptance must be
executed either under common seal or under Power of Attorney.

 

114

 

•                                         If this Transfer and
Acceptance is signed under Power of Attorney, the Attorney certifies that he or
she has not received notice of revocation of that Power of Attorney.  A certified copy of the Power of Attorney
must be lodged with this Transfer and Acceptance.

 

•                                         This Transfer and
Acceptance must be lodged with the A$ Registrar for registration.

 

Conditions of Transfer

 

•                                         The Transferor and the
Transferee acknowledge that the transfer of the Bonds shall only take effect on
the inscription of the Transferee’s name in the A$ Register as the Bondholder
of the Bonds.

 

•                                         The Transferee accepts
the Bonds upon and subject to the provisions of the Master Trust Deed, the
Conditions inscribed in the A$ Register, the Security Trust Deed dated [ ] 2003
executed by the Issuer, Australian Securitisation Management Pty Limited as
Trust Manager, Permanent Registry Limited as Security Trustee and The Bank of
New York as Bond Trustee and the Bond Trust Deed dated [ ] 2003 between the
Issuer, the Trust Manager, Australian Mortgage Securities Ltd, the Security
Trustee and the Bond Trustee.

 

•                                         The Transferee
acknowledges that it has made its own independent assessment and investigations
regarding its investment in the Bonds. 
It has not relied upon the Issuer, Australian Mortgage Securities Ltd,
or any other person or any materials or other information prepared or
distributed by any of them.

 

•                                         The A$ Register shall be
closed by the A$ Registrar for the purpose of determining the Interest
Entitlements and entitlements to principal payments of Bondholders during the
period commencing from the close of business on the day which is 5 Business
Days (or such other period agreed between the A$ Registrar and the Trust Manager)
prior to, and ending on the commencement of business on the Business Day
immediately after, each Payment Date of the relevant Bonds.  The A$ Registrar may with prior notice to
the Bondholders close the A$ Register for such other periods as the A$ Registrar
may nominate in the notice, provided that the aggregate period for which the A$
Register may be closed in total (under this paragraph) in any calendar year
must not exceed 30 Business Days or such other period as the A$ Registrar and
the Trust Manager may agree.

 

•                                         If the Transferee is a
non-resident for Australian taxation purposes, withholding tax will be deducted
from all interest payments unless proof of an exemption is provided to the
Issuer.

 

•                                         [Insert any restrictions
on the transfer of Bonds.]

 

•                                         The Issuer has no
personal liability in relation to any of its obligations under or arising out
of the Bonds or any other Transaction Documents entered into in its capacity as
trustee of the Fund.

 

•                                         The liability of the
Issuer under or in respect of the Bonds and the other Transaction Documents
entered into in its capacity as trustee of the Fund is limited to and does not
extend

 

115

 

beyond the Assets of the Fund as they stand at the time
at which such obligations are to be met or satisfied.

 

•                                         The Issuer is not liable
to meet or satisfy any such obligation from its own assets (except the
Trustee’s Indemnity) and each such obligation must be met or satisfied from the
Fund or the Trustee’s Indemnity.

 

Marking (if
applicable)

 

The A$ Registrar certifies that the Transferor is
inscribed in the A$ Register as the holder of the Bonds specified in this
Transfer and Acceptance.  The A$
Registrar will not register any transfer of such Bonds other than pursuant to
this Transfer and Acceptance before [insert date].

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
  For
  and on behalf of Permanent Custodians Limited

  (as A$ Registrar)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorised
  Signatory

  	
   

  
			

 

116

 

Schedule 7

 

Meetings Procedures

 

 

1.                                     Definitions and Interpretation

 

1.1                              Incorporated Definitions and Interpretation

 

(a)                                 Words and expressions
which are defined in clause 1.1 of this Deed have the same meanings when used
in this Schedule unless otherwise defined in it.

 

(b)                                These Meetings Procedures
apply, mutatis mutandis, to a meeting of any Class of Bondholders.

 

1.2                              Definitions

 

In this Schedule:

 

Block Voting Instruction means an English language document
issued by a Paying Agent appointed in respect of the US$ Bonds and dated in which:

 

(a)                                                   it is certified that on
the date thereof:

 

(i)                                                     US$ Bonds (not being US$
Bonds in respect of which a Voting Certificate has been issued and is
outstanding in respect of the meeting specified in such document and any
adjourned such meeting) are held (to the satisfaction of such Paying Agent) to
its order or under its control or blocked by a depository holding the same in a
manner approved by the Bond Trustee; and

 

(ii)                                                  no such US$ Bonds will
cease to be so held or blocked until the first to occur of:

 

A.                                                   the conclusion of the
meeting specified in such document or, if applicable, any adjourned such
meeting; and

 

B.                                                     the US$ Bond or US$ Bonds
ceasing with the agreement of the Paying Agent to be held to its order or under
its control or blocked and the giving of notice by that Paying Agent to the
Issuer in accordance with paragraph 15.1 of the necessary amendment to the
Block Voting Instruction;

 

(b)                                                  it is certified that each
Bond Owner of such US$ Bonds has instructed such Paying Agent and/or that the
Clearing Agency has advised that Paying Agent that each Bond Owner of such US$
Bonds has given instructions, that the vote(s)

 

117

 

attributable to the US$ Bond(s) so held or blocked
should be cast in a particular way or not cast in relation to each resolution
to be put to such meeting or any adjourned such meeting and appearing in the
notice of such meeting and that all such instructions are, during the period
commencing 48 hours prior to the time for which such meeting or any
adjourned such meeting is convened and ending at the conclusion or adjournment
thereof, neither revocable nor capable of amendment;

 

(c)                                                   the aggregate Face Value
of the US$ Bonds so held or blocked is stated distinguishing, with regard to
each such resolution, between those in respect of which instructions have been
given, as referred to in paragraph (b), that the votes attributable thereto
should be cast in favour of the resolution, those in respect of which
instructions have been so given that the votes attributable thereto should be
cast against the resolution and those in respect of which instructions have
been so given that the votes attributable thereto should not be cast on such
resolution; and

 

(d)                                                  one or more persons
(which need not be a Bondholder) named in such document as a Proxy is or are
authorised and instructed by such Paying Agent to cast and/or (as the case may
be) to refrain from casting the votes attributable to the US$ Bonds so listed
in accordance with the instructions referred to in paragraph (b) as set out in
such document.

 

Bond means:

 

(a)                                 in relation to a meeting of Class A Bondholders,
a Class A Bond;

 

(b)                                in relation to a meeting of Class B Bondholders,
a Class B Bond; and

 

(c)                                  in relation to a meeting of Fast Prepayment
Bondholders, a Fast Prepayment Bond;

 

and references to all Bonds shall be construed as references to all Bonds
(as defined in clause 1.1 of this Deed) in the relevant Class.

 

Bondholder means:

 

(a)                                 in relation to a meeting of Class A Bondholders, a
Class A Bondholder;

 

(b)                                in relation to a meeting of Class B Bondholders,
a Class B Bondholder; and

 

(c)                                  in relation to a meeting of Fast
Prepayment Bondholders, a Fast Prepayment Bondholder.

 

and references to all Bondholders shall be construed as references to all
Bondholders (as defined in clause 1.1 of this Deed) in the relevant Class.

 

Chairman means the person appointed as
chairman in accordance with paragraph 4.

 

Entitled Voter means:

 

(a)                                                   in relation to a US$
Bond, a person holding a Voting Certificate or a Proxy in relation to that US$
Bond; and

 

118

 

(b)                                                  in relation to a Fast
Prepayment Bond, the Bondholder of that Bond, or a Proxy in relation to that
Bond.

 

Proxy means:

 

(a)                                                   in relation to a US$ Bond,
each person named as a proxy in relation to that US$ Bond in a Block Voting
Instruction in the manner referred to in sub-paragraph (d) of the definition of
that expression contained in paragraph 1.2; and

 

(b)                                                  in relation to any Bond,
each person appointed as a proxy in accordance with paragraph 15 in relation to
that Bond.

 

Voting Certificate means an English language certificate
issued by a Paying Agent appointed in respect of the US$ Bonds and dated in which it is stated:

 

(a)                                                   that on the date thereof:

 

(i)                                                     US$ Bonds (not being US$
Bonds in respect of which a Block Voting Instruction has been issued and is
outstanding in respect of the meeting specified in such certificate and any
adjourned such meeting) were (to the satisfaction of such Paying Agent) held to
its order or under its control or blocked by a depository holding the same in a
manner approved by the Bond Trustee; and

 

(ii)                                                  no such US$ Bonds will
cease to be so held or blocked until the first to occur of:

 

A.                                                   the conclusion of the
meeting specified in such certificate or, if applicable, any adjourned such
meeting; and

 

B.                                                     the surrender of the
certificate to the Paying Agent who issued the same; and

 

(b)                                                  that the bearer of the
certificate is entitled to attend and vote at such meeting and any adjourned
such meeting in respect of the US$ Bonds represented by such certificate.

 

48 hours  means a period of 48 hours including all or part
of two days upon which banks are open for business in both the place where the
relevant meeting is to be held and in each of the places where the Paying
Agents have their specified offices (disregarding for this purpose the day upon
which such meeting is to be held) and such period shall be extended by one or,
to the extent necessary, more periods of 24 hours until there is included as
aforesaid all or part of two days upon which banks are open for business as
aforesaid.

 

24 hours  means a period of 24 hours including all or part
of a day upon which banks are open for business in both the place where the
meeting is to be held and in each of the places where the Paying Agents have
their specified offices (disregarding for this purpose the day upon which such
meeting is to be held) and such period shall be extended by one or, to the
extent

 

119

 

necessary, more periods of 24 hours until there is included as aforesaid
all or part of a day upon which banks are open for business as aforesaid.

 

2.                                     Convening of meetings

 

The Issuer, the Bond Trustee or
the Security Trustee may at any time and must:

 

(a)                                 in the case of the Issuer and the Bond
Trustee, upon a requisition in writing signed by the Bondholders of not less
than one-tenth of the aggregate Face Value of all US$ Bonds at that time; and

 

(b)                                in the case of the Issuer and the
Security Trustee, upon a requisition in writing signed by Bondholders of not
less than one-tenth of the US$ Equivalent of the aggregate Face Value of  all Fast Prepayment Bonds at that
time,

 

convene a meeting of Bondholders and if the Issuer, the Bond Trustee or
the Security Trustee (as the case may be) fails to convene such a meeting for a
period of seven days the same may be convened by  such Bondholders or (in the case of a failure by the Issuer) the
Bond Trustee or the Security Trustee.

 

(c)                                 Every such meeting shall be held at such place as:

 

(i)                                     in the case of a meeting of a Class of
US$ Bondholders, the Bond Trustee; or

 

(ii)                                  in the case of a meeting of Fast
Prepayment Bondholders, the Security Trustee,

 

may appoint or approve.

 

3.                                     Notice of meetings

 

3.1                              At least 21 days’ notice
(exclusive of the day on which the notice is given and the day on which the
meeting is held) specifying the place, day and hour of meeting shall be given
to the Bondholders prior to any meeting of the Bondholders in the manner
provided by Condition 15.

 

3.2                              Such notice shall:

 

(a)                                  state generally the
nature of the business to be transacted at the meeting thereby convened but
(except for an Extraordinary Resolution) it shall not be necessary to specify
in such notice the terms of any resolution to be proposed;

 

(b)                                 in the case of a meeting
of US$ Bondholders, include a statement to the effect that US$ Bonds may be
held (to their satisfaction) to the order of the relevant Paying Agent(s) or
under their control or blocked by a depository holding the same in a manner
approved by the Bond Trustee for the purpose of obtaining Voting Certificates
or appointing Proxies.

 

120

 

3.3                              A copy of the notice of
meeting of:

 

(a)                                  a Class of US$ Bondholders,
shall be given to the Bond Trustee (unless the meeting is convened by the Bond
Trustee) and to the Issuer (unless the meeting is convened by the Issuer); and

 

(b)                                 Fast Prepayment
Bondholders, shall be given to the Security Trustee (unless the meeting is
convened by the Security Trustee) and to the Issuer (unless the meeting is
convened by the Issuer).

 

4.                                     Chairman

 

Some person (who may but need not be a Bondholder) nominated in writing
by:

 

(a)                                 in the case of a meeting of a Class of US$ Bondholders, the Bond Trustee; and

 

(b)                                in the case of a meeting of Fast
Prepayment Bondholders, the Security Trustee,

 

shall be entitled to take the chair at every meeting of Bondholders but
if no such nomination is made by, or if at any meeting the person nominated
shall not be present, within fifteen minutes after the time appointed for
holding the meeting, the Bondholders present shall choose one of their number
to be Chairman.

 

5.                                     Quorum

 

5.1                              At any meeting of
Bondholders two or more Entitled Voters holding or representing in the
aggregate not less than 5% of the US$ Equivalent of the aggregate Face Value of
all Bonds at that time shall (except for the purpose of passing an
Extraordinary Resolution) form a quorum for the transaction of business and no
business (other than choosing a Chairman) shall be transacted at any meeting
unless the requisite quorum be present at the commencement of business.

 

5.2                              Subject to paragraph 5.3,
the quorum at any meeting of Bondholders for passing an Extraordinary
Resolution shall be two or more Entitled Voters holding or representing in the
aggregate a clear majority of the aggregate US$ Equivalent of the Face Value of
all Bonds at that time.

 

5.3                              At any meeting of
Bondholders the business of which includes any of the following matters (each a
Basic Terms Modification
and each of which shall only be capable of being effected after having been
approved by Extraordinary Resolution):

 

(a)                                  modification of the date
upon which all or any part of the Bondholders’ Secured Moneys are payable;

 

(b)                                 modification of any
amount of the Bondholders’ Secured Moneys payable or of the method of
calculating any such amount;

 

(c)                                  alteration of the
currency in which all or any part of the Bondholders’ Secured Moneys is
payable;

 

121

 

(d)                                 alteration of the
majority required to pass an Extraordinary Resolution;

 

(e)                                  the sanctioning of any
scheme or proposal described in paragraph 17(i);

 

(f)                                    alteration of clause 10.2
of the Security Trust Deed or Conditions 4.4, 4.5, 5.1 or 5.2;

 

(g)                                 alteration of paragraph 5
or paragraph 6,

 

the quorum shall be two or more Entitled Voters holding or representing
in the aggregate not less than 75% of the US$ Equivalent of the aggregate Face
Value of all Bonds at that time.

 

6.                                     Adjournment

 

6.1                              If within 15 minutes
after the time appointed for a meeting of Bondholders a quorum is not present,
the meeting shall, if convened upon the requisition of Bondholders, be
dissolved. In any other case it shall stand adjourned to the same day in the
next week (or if such day is a public holiday the next succeeding Business Day)
at the same time and place (except in the case of a meeting at which an
Extraordinary Resolution is to be proposed in which case it shall stand
adjourned for such period being not less than 14 days nor more than 42 days,
and at such place as may be appointed by the Chairman and approved by the Bond
Trustee (in the case of a meeting of a Class of US$ Bondholders) or the
Security Trustee (in the case of a meeting of Fast Prepayment Bondholders))
and, subject to paragraph 6.2, at such adjourned meeting two or more Entitled
Voters (whatever the US$ Equivalent of the aggregate Face Value of all Bonds at
that time) shall form a quorum to decide upon all matters which could properly
have been dealt with at the meeting from which the adjournment took place had
the requisite quorum been present.

 

6.2                              If at any adjourned
meeting the business of which includes any of the matters specified in
paragraph 5.3, the quorum shall be two or more Entitled Voters holding or
representing in the aggregate not less than 33.3% of the US$ Equivalent of the
aggregate Face Value of all Bonds at that time.

 

7.                                     Notice of adjourned meeting

 

Notice of any adjourned meeting
at which an Extraordinary Resolution is to be submitted shall be given in the
same manner as notice of an original meeting but as if 10 were substituted for
21 in paragraph 3.1 and such notice must state what the quorum for such
adjourned meeting shall be (determined in accordance with paragraph 6).

 

8.                                     Chairman’s casting vote

 

Every question submitted to a
meeting of Bondholders shall be decided in the first instance by a show of
hands and in case of equality of votes the Chairman shall both on a show of
hands and on a poll have a casting vote in addition to the vote or votes (if
any) to which he may be entitled as an Entitled Voter.

 

122

 

9.                                     Right to demand a poll

 

At any meeting unless a poll is
(before or on the declaration of the result of the show of hands) demanded in
accordance with paragraph 10, a declaration by the Chairman that a resolution
has been carried or carried by a particular majority or not carried or not
carried by a particular majority shall be conclusive evidence of the fact
without proof of the number or proportion of the votes recorded in favour of or
against such resolution.

 

10.                              Voting on a poll

 

Subject to paragraph 12, if at
any meeting of Bondholders a poll is demanded by the Chairman, the Issuer, the
Bond Trustee (in the case of a meeting of a Class of US$ Bondholders), the Security Trustee (in the case
of a meeting of Fast Prepayment Bondholders) or by two or more Entitled Voters
holding or representing in the aggregate not less than 2% of the US$ Equivalent
of the aggregate Face Value of all Bonds at that time, it shall be taken in
such manner and, subject to these Meetings Procedures, either at once or after
an adjournment as the Chairman directs and the result of such poll shall be
deemed to be the resolution of the meeting at which the poll was demanded as at
the date of the taking of the poll.  The
demand for a poll shall not prevent the continuance of the meeting for the
transaction of any business other than the motion on which the poll has been
demanded.

 

11.                              Business at adjourned meetings

 

The Chairman may with the
consent of (and must if directed by), any meeting of Bondholders adjourn the
same from time to time and from place to place but no business shall be
transacted at any adjourned meeting except business which might lawfully (but
for lack of required quorum) have been transacted at the meeting from which the
adjournment took place.

 

12.                              No adjournment of polls

 

Any poll demanded at any meeting
of Bondholders on the election of a Chairman or on any question of adjournment
shall be taken at the meeting without adjournment.

 

13.                              Right to attend and speak

 

13.1                       The Bond Trustee, the
Security Trustee, the Issuer, any Secured Creditor, their respective lawyers,
financial advisers, directors, officers or employees, and any other person
authorised to do so by the Chairman may, but (subject to these Meetings
Procedures) are not required to, attend and speak at any meeting of
Bondholders.  No other person shall be
entitled to attend and speak nor shall any person be entitled to vote at any
meeting of Bondholders unless he or she is an Entitled Voter.

 

123

 

13.2                       Neither the Issuer, any
subsidiary or holding company of the Issuer, nor any other subsidiary of such
holding company shall be entitled to vote at any meeting in respect of Bonds
held beneficially by it or for its account. 
Nothing herein contained shall prevent any Proxy from being a director,
officer or representative of or otherwise connected with the Issuer or any of
such other companies.

 

14.                              Voting entitlements

 

Subject to paragraph 13.2, at
any meeting of Bondholders:

 

(a)                                 on a show of hands, every
Entitled Voter shall have one vote; and

 

(b)                                on a poll, every person
who is so present shall have one vote in respect of each US$1 of Bondholders’
Secured Moneys in respect of which he or she is an Entitled Voter.

 

Without prejudice to the
obligations of the Proxies named in any Block Voting Instruction, any person
entitled to more than one vote need not use all his votes or cast all the votes
to which he is entitled in the same way.

 

15.                              Proxies and block voting
instructions

 

15.1                       Each appointment of a
Proxy and each Block Voting Instruction:

 

(a)                                  must be in writing;

 

(b)                                 in the case of a Block
Voting Instruction or a Proxy in relation to a US$ Bond, if so required by the
Bond Trustee must be accompanied by proof satisfactory to the Bond Trustee of
its due execution;

 

(c)                                  in the case of a Proxy in
relation to a Fast Prepayment Bond, if so required by the Security Trustee must
be accompanied by proof satisfactory to the Security Trustee of its due
execution; and

 

(d)                                 must be deposited with
the Bond Trustee (in the case of a meeting of a Class of US$ Bondholders) or
the Security Trustee (in the case of a meeting of Fast Prepayment Bondholders)
at its address for service of notices under this Deed or at such other place as
the Bond Trustee or the Security Trustee (as the case may be) designates or
approves not less than 24 hours before the time appointed for holding the
meeting or adjourned meeting at which the named Proxy proposes to vote.

 

In default, the appointment of Proxy is not valid unless the Chairman of
the meeting decides otherwise before such meeting or adjourned meeting proceeds
to business.

 

15.2                       The Proxy named in any
appointment of Proxy or Block Voting Instruction need not be a Bondholder.

 

15.3                       A Bondholder which is a
corporation may by a certificate in writing under its common seal appoint any
person as its representative to act as that Bondholder’s representative at any

 

124

 

meeting of Bondholders and to exercise on the
Bondholder’s behalf all of the powers which the Bondholder is entitled to
exercise under these Meetings Procedures.

 

15.4                       Neither the Bond Trustee
nor the Security Trustee is obliged to investigate or be concerned with the
validity of, or the authority of, the Proxy named in any appointment of Proxy
or Block Voting Instruction.

 

16.                              Block voting instructions,
proxies and voting certificates

 

16.1                       Any vote given in
accordance with the terms of a Block Voting Instruction or a Proxy shall be
valid notwithstanding the previous revocation or amendment of the Block Voting
Instruction or Proxy (as the case may be) or of any of the Bondholder’s
instructions pursuant to which it was executed provided that no intimation in
writing of such revocation or amendment is received from the relevant Paying
Agent by the Issuer (in the case of a Block Voting Instruction) or from the
relevant Bondholder by the Bond Trustee or Security Trustee (in the case of any
other Proxy) in each case at the relevant address for the giving of notices
under this Deed by the time being 24 hours before the time appointed for
holding the meeting or adjourned meeting at which the Block Voting Instruction
or Proxy (as the case may be) is to be used.

 

16.2                       The holder of any Voting
Certificate or the Proxies named in any Block Voting Instruction shall, for all
purposes in connection with the meeting or adjourned meeting of Bondholders, be
deemed to be the holder of the Bonds to which such Voting Certificate or Block
Voting Instruction relates and the person holding the same to the order or
under the control of any Paying Agent or the person holding the same blocked as
aforesaid shall be deemed for such purposes not to be the holder of those
Bonds.

 

17.                              Extraordinary resolutions

 

A meeting of the Bondholders
shall, in addition to the powers specified in this Deed and the Security Trust
Deed as being exercisable by Extraordinary Resolution, have the following
powers exercisable by Extraordinary Resolution (subject to the provisions
relating to quorum contained in paragraphs 5 and 6):

 

(a)                                 power to sanction any
compromise or arrangement proposed to be made between the Issuer and the Bondholders
(or any of them);

 

(b)                                power to sanction any
abrogation, modification, compromise or arrangement in respect of the rights of
the Bondholders (or any of them) against the Issuer or against any of the
Charged Property or against any other person;

 

(c)                                 power to assent to any
modification of this Deed, the Bonds, the Conditions or any other Secured
Document;

 

125

 

(d)                                power to give any
authority or sanction which under the provisions of any Secured Document are
required to be given by Extraordinary Resolution;

 

(e)                                 power to appoint any
persons (whether Bondholders or not) as a committee or committees to represent
the interests of the Bondholders and to confer upon such committee or
committees any powers or discretions which the Bondholders could themselves
exercise by Extraordinary Resolution;

 

(f)                                   in the case of a meeting
of US$ Bondholders only, power to approve of a person to be appointed as a
successor Bond Trustee and power to remove the Bond Trustee;

 

(g)                                power to approve of a
person to be appointed as a successor Security Trustee and power to remove the
Security Trustee;

 

(h)                                in the case of a meeting
of US$ Bondholders only, power to discharge or exonerate the Bond Trustee from
all liability in respect of any act or omission for which the Bond Trustee may
have become responsible under the US$ Bonds or any other Secured Document;

 

(i)                                    power to discharge or
exonerate the Security Trustee from all liability in respect of any act or
omission for which the Security Trustee may have become responsible under the
Bonds or any other Secured Document;

 

(j)                                    power to authorise the
Security Trustee and/or (in the case of a meeting of Class A Bondholders only)
the Bond Trustee to concur in and execute and do all such deeds, instruments,
acts and things as may be necessary to carry out and give effect to any
Extraordinary Resolution;

 

(k)                                 power to sanction any
scheme or proposal for the exchange or sale of the Bonds for, or the conversion
of the Bonds into, or the cancellation of the Bonds in consideration of,
shares, stock, notes, bonds, debentures, debenture stock and/or other
obligations and/or securities of the Issuer or any other company formed or to
be formed, or for, or in consideration of, cash, or partly for, or into, or in
consideration of, such shares, stock, notes, bonds, debentures, debenture stock
and/or other obligations and/or securities as aforesaid and partly for, or
into, or in consideration of, cash,

 

provided that:

 

(l)                                    no Extraordinary
Resolution of the Bondholders of Class A Bonds to sanction a Basic Terms
Modification of any Class or Classes of Bonds shall be effective for any
purpose unless its becoming effective shall have been sanctioned by an
Extraordinary Resolution of the Bondholders of Fast Prepayment Bonds and by an
Extraordinary Resolution of the Bondholders of Class B Bonds or the Security
Trustee is of the opinion that its becoming effective will not be materially
prejudicial to the interests of the Bondholders of Fast Prepayment Bonds and
the Bondholders of Class B Bonds;

 

126

 

(m)                              no Extraordinary
Resolution of the Bondholders of Fast Prepayment Bonds to sanction a Basic
Terms Modification of any Class or Classes of Bonds shall be effective for any
purpose unless its becoming effective shall have been sanctioned by an
Extraordinary Resolution of the Bondholders of Class A Bonds and by an
Extraordinary Resolution of the Bondholders of Class B Bonds or the Security
Trustee is of the opinion that its becoming effective will not be materially
prejudicial to the interests of the Bondholders of Class A Bonds and the
Bondholders of Class B Bonds;

 

(n)                                no Extraordinary
Resolution of the Bondholders of Class B Bonds to sanction a Basic Terms
Modification of any Class or Classes of Bonds shall be effective for any
purpose unless its becoming effective shall have been sanctioned by an
Extraordinary Resolution of Bondholders of Class A Bonds and by an
Extraordinary Resolution of the Bondholders of Fast Prepayment Bonds or the
Security Trustee is of the opinion that its becoming effective will not be
materially prejudicial to the interests of the Bondholders of Class A Bonds and
the Bondholders of Fast Prepayment Bonds.

 

18.                              Resolutions binding

 

(a)                                 Subject to the provisions
of these Meetings Procedures and of the other provisions of this Deed and the
Security Trust Deed, any resolution passed at a meeting of the Bondholders duly
convened and held in accordance with this Deed shall be binding upon all the Bondholders,
whether or not present, or entitled to be present, at such meeting and whether
or not voting, and each of the Issuer and the Bondholders shall be bound to
give effect to such resolution accordingly and the passing of any such
resolution shall be conclusive evidence that the circumstances justify the
passing thereof.  Notice of the result
of the voting on any resolution appearing in the notice of such meeting duly
considered by the Bondholders shall be published by the Issuer in accordance
with Condition 15 within 14 days of such result being known provided that the
non-publication of such notice shall not invalidate such resolution.

 

(b)                                Subject to the proviso to
paragraph 17, an Extraordinary Resolution passed at any meeting of Class A
Bondholders shall be binding on the Class B Bondholders irrespective of the
effect upon them.

 

(c)                                 An Extraordinary
Resolution of the Class B Bondholders shall not be effective for any purpose
while any Class A Bonds remain outstanding unless either:

 

(i)                                     the Security Trustee is
of the opinion that it would not be materially prejudicial to the interests of
the Class A Bondholders; or

 

(ii)                                  it is sanctioned by an
Extraordinary Resolution of the Class A Bondholders.

 

127

 

19.                              Minutes of resolutions

 

Minutes of all resolutions and
proceedings at every meeting of Bondholders shall be made and duly entered in
books to be from time to time provided for that purpose by:

 

(a)                                 in the case of a meeting of a Class of US$ Bondholders, the Bond Trustee; and

 

(b)                                in the case of a meeting of Fast
Prepayment Bondholders, the Security Trustee,

 

and any such minutes if
purporting to be signed by the Chairman of the meeting at which such
resolutions were passed or proceedings had shall be conclusive evidence of the
matters set out in them and until the contrary is proved every such meeting in
respect of the proceedings of which minutes have been made shall be deemed to
have been duly held and convened and all resolutions passed or proceedings had
at any such meeting to have been duly passed or had.

 

20.                              Written resolutions

 

Notwithstanding the preceding
provisions of these Meetings Procedures, a resolution of all Bondholders
(including an Extraordinary Resolution) may be passed, without any meeting or
previous notice being required, by an instrument or instruments in writing
which is or are signed by all Bondholders. 
Any such instrument or instruments are effective upon presentation to:

 

(a)                                 the Bond Trustee; and

 

(b)                                in the case of a meeting of Fast
Prepayment Bondholders, the Security Trustee,

 

for entry in the records
referred to in paragraph 19.

 

128

 

Schedule 8

 

Information to be contained in Bondholders Report

 

The following information is to
be included in the Bondholders Report for each Calculation Period:

 

(a)                                 the aggregate Face Value and the
aggregate Stated Value of each Class of Bonds on the first day after the
Payment Date in relation to that Calculation Period;

 

(b)                                the aggregate of the Interest
Entitlements for each Class of Bonds on the Payment Date in relation to that
Calculation Period;

 

(c)                                 the aggregate of all principal
repayments (if any) to be made in respect of each Class of Bonds on the Payment
Date in relation to that Calculation Period;

 

(d)                                the Income Collections for that
Calculation Period;

 

(e)                                 the Principal Collections for that
Calculation Period;

 

(f)                                   the Available Amortisation Amount on
the Payment Date in relation to that Calculation Period;

 

(g)                                the aggregate of all Redraw Advances,
Line of Credit Advances and Permitted Further Advances made during that
Calculation Period in relation to Loans forming part of the Assets of the Fund;

 

(h)                                the Interest Rate for the Class A
Bonds and the Class B Bonds for the Interest Accrual Period ending on (but
excluding) the Payment Date in relation to that Calculation Period, as
calculated by the Calculation Agent;

 

(i)                                    the scheduled and unscheduled payments
of principal on the Loans forming part of the Assets of the Fund during that
Calculation Period;

 

(j)                                    the aggregate Face Value of the Loans
forming part of the Assets of the Fund as at the last day of that Calculation
Period;

 

(k)                                 the Aggregate Loss Amount (if any) for
that Calculation Period;

 

(l)                                    the Charge-offs and Unreimbursed
Charge-offs (if any) in relation to each Class A Bond and each Class B Bond on
the Payment Date in relation to that Calculation Period; and

 

(m)                              delinquency and loss statistics with respect to the
Loans forming part of the Assets to the Fund during that Calculation Period.

 

129

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