Document:

EXECUTION

                         GRANITE FINANCE FUNDING LIMITED
                                   as Funding

                              THE BANK OF NEW YORK
                               as Security Trustee

                                       and

                                     OTHERS

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                             FUNDING DEED OF CHARGE
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                               DATED 26 MARCH 2001

                                  BROWN & WOOD
                          (A MULTINATIONAL PARTNERSHIP)
                                     LONDON

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                                    CONTENTS

CLAUSE                                                                PAGE NO.

1.  Interpretation........................................................3

2.  Covenant to Pay and to Perform........................................4

3.  Funding Security......................................................4

4.  Release of Funding Charged Property..................................11

5.  Declaration of Trust.................................................12

6.  Restrictions on Exercise of Certain Rights...........................13

7.  Enforcement..........................................................17

8.  Upon Enforcement.....................................................20

9.  Receiver.............................................................22

10. Further Assurance and Power of Attorney..............................26

11. Crystallisation......................................................27

12. Provisions relating to the Security..................................28

13. Protection of Third Parties..........................................30

14. Set-Off..............................................................30

15. Representations and Covenants........................................30

16. Terms of Appointment.................................................33

17. Modification and Waiver..............................................45

18. Remuneration of the Security Trustee.................................46

19. Appointment, Removal and Retirement of Security Trustee..............49

20. Miscellaneous Provisions.............................................51

21. Rights cumulative....................................................52

22. Assignment...........................................................52

23. Non Petition Covenant; Corporate Obligations.........................52

24. Notices..............................................................53

25. Third Party Rights...................................................54

26. Execution in Counterparts; Severability..............................54

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27. Governing Law and Submission to Jurisdiction.........................55

SCHEDULE 1  FORM OF SECURITY POWER OF ATTORNEY...........................56

SCHEDULE 2  FORM OF DEED OF ACCESSION....................................60

SCHEDULE 3  FUNDING PRIORITY OF PAYMENTS.................................74

SCHEDULE 4  FORM OF NOTICE OF ASSIGNMENT.................................82

SCHEDULE 5  UTILISATION OF ISSUER RESERVES...............................85

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THIS DEED OF CHARGE is made on 26 March 2001

BETWEEN:

(1)  GRANITE FINANCE FUNDING LIMITED (registered number 79308) a private limited
     liability company incorporated under the laws of Jersey whose London Branch
     is at 4th Floor, 35 New Bridge Street, London EC4V 6BW ("FUNDING");

(2)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at One Canada Square, 48th Floor, London E14 5AL, United
     Kingdom, as security trustee (the "SECURITY TRUSTEE" which expression shall
     include such person and all other persons for the time being acting as the
     security trustee or security trustees pursuant to this Funding Deed of
     Charge);

(3)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at One Canada Square, 48th Floor, London E14 5AL, United
     Kingdom, as note trustee (the "NOTE TRUSTEE" which expression shall include
     such person and all other persons for the time being acting as the note
     trustee or note trustees pursuant to the First Issuer Trust Deed and the
     First Issuer Deed of Charge);

(4)  GRANITE MORTGAGES 01-1 PLC (registered number 4129652) a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX (the "FIRST
     ISSUER");

(5)  GRANITE FINANCE TRUSTEES LIMITED (registered number 79309) a private
     limited liability company incorporated under the laws of Jersey whose
     registered office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX
     Channel Islands as trustee of the Mortgages Trust (the "MORTGAGES
     TRUSTEE");

(6)  NORTHERN ROCK PLC (registered number 03273685) a public limited company
     incorporated under the laws of England and Wales whose registered office is
     at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as cash manager under the Cash Management Agreement (the "CASH
     MANAGER", which expression shall include such person and all other persons
     for the time being acting as the cash manager or cash managers pursuant to
     the Cash Management Agreement);

(7)  LLOYDS TSB BANK PLC, acting through its office at City Office, Bailey
     Drive, Gillingham Business Park, Kent ME8 0LS in its capacity as account
     bank under the Bank Account Agreement (the "ACCOUNT BANK", which expression
     shall include such person and all other persons for the time being acting
     as the account bank or account banks to Funding pursuant to the Bank
     Account Agreement) and acting through its office at 25 Monument Street,
     London EC3R 8BQ in its capacity as GIC provider to Funding pursuant to the
     Funding Guaranteed Investment Contract (the "FUNDING GIC PROVIDER", which
     expression shall include such person and all other persons for the time
     being acting as the GIC provider to Funding pursuant to the Funding
     Guaranteed Investment Contract and each Funding (Issuer) Guaranteed
     Investment Contract);

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(8)  MOURANT & CO. CAPITAL (SPV) LIMITED, a private limited company incorporated
     under the laws of Jersey whose registered office is 4th Floor, 35 New
     Bridge Street, London, EC4V 6BW (the "CORPORATE SERVICES PROVIDER" which
     expression shall include such person and all other persons for the time
     being acting as the corporate services provider or corporate services
     providers pursuant to the Corporate Services Agreement); and

(9)  NORTHERN ROCK PLC (registered number 03273685) acting through its office at
     Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL as start-up loan
     provider pursuant to the Start-Up Loan Agreement (the "START-UP LOAN
     PROVIDER", which expression shall include such person or all other persons
     for the time being acting as start-up loan provider pursuant to the
     Start-Up Loan Agreement).

WHEREAS:

(A)  Pursuant to the terms of the First Issuer Intercompany Loan Agreement of
     even date herewith, the First Issuer has agreed to make available the First
     Issuer Intercompany Loan, upon and subject to the terms thereof.

(B)  The Seller has agreed to assign the Initial Mortgage Portfolio to the
     Mortgages Trustee (as trustee for the Seller and Funding) pursuant to the
     Mortgage Sale Agreement to be held on the terms of the Mortgages Trust Deed
     for the consideration including the Deferred Consideration set out therein.
     The Seller may assign New Mortgage Portfolios to the Mortgages Trustee
     after the Initial Closing Date. Save as expressly provided otherwise in the
     Funding Transaction Documents, the Initial Mortgage Portfolio and each New
     Mortgage Portfolio will form part of the Trust Property under the terms of
     the Mortgages Trust Deed. Pursuant to the Mortgages Trust Deed, Funding has
     agreed to pay to the Mortgages Trustee from time to time consideration for
     the Funding Share of the Trust Property in the form of Contributions
     including Deferred Contributions subject to and in accordance with the
     terms of the Mortgages Trust Deed.

(C)  The Cash Manager has agreed to provide certain cash management services to
     Funding on the terms set out in the Cash Management Agreement.

(D)  The Account Bank has agreed to provide certain banking services to Funding
     on the terms set out in the Bank Account Agreement and the Funding (First
     Issuer) Bank Account Agreement.

(E)  The Funding GIC Provider has agreed to provide certain guaranteed
     investment services to Funding on the terms set out in the Funding
     Guaranteed Investment Contract and the Funding (First Issuer) Guaranteed
     Investment Contract.

(F)  The Corporate Services Provider has agreed to provide certain corporate
     services to Funding on the terms set out in the Corporate Services
     Agreement.

(G)  The Start-Up Loan Provider has agreed to make available the Start-Up Loan
     to Funding on the terms set out in the Start-Up Loan Agreement.

(H)  Funding has agreed to provide security for the benefit of each of the
     Funding Secured Creditors in respect of Funding's obligations under the
     Funding Transaction Documents

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     including any New Intercompany Loan Agreement and associated agreements,
     subject to and in accordance with the terms thereof and hereof.

(I)  Funding has agreed to provide the Security Trustee with the benefit of the
     security described in this Funding Deed of Charge to secure Funding's
     obligations under the Funding Transaction Documents, upon and subject to
     the terms of this Funding Deed of Charge. The Security Trustee shall hold
     such security on trust for the benefit of the Funding Secured Creditors.

(J)  Pursuant to the terms of the First Issuer Deed of Charge dated of even date
     herewith, the First Issuer will grant security to the Note Trustee (as Note
     Trustee for the First Issuer Secured Creditors) in and to all of its right,
     title, interest and benefit, present and future, under this Funding Deed of
     Charge to secure the First Issuer's obligations to the First Issuer Secured
     Creditors upon and subject to the terms thereof.

(K)  Funding and the Funding Secured Creditors have each agreed with the
     Security Trustee and the Note Trustee that in exercising its powers granted
     under this Funding Deed of Charge, the Security Trustee shall, save as
     otherwise contemplated in this Funding Deed of Charge, act only at the
     direction of the Note Trustee in accordance with the terms hereof.

NOW THIS DEED WITNESSES AS FOLLOWS:

1.   INTERPRETATION

1.1  DEFINITIONS: The Master Definitions Schedule signed for the purposes of
     identification by Brown & Wood and Clifford Chance Limited Liability
     Partnership on 26 March 2001 (as the same may be amended, varied or
     supplemented from time to time with the consent of the parties hereto) are
     expressly and specifically incorporated into this Deed and, accordingly,
     the expressions defined in the Master Definitions Schedule (as so amended,
     varied or supplemented) shall, except where the context otherwise requires
     and save where otherwise defined herein, have the same meanings in this
     Deed, including the recitals hereto and this Deed shall be construed in
     accordance with the interpretation provisions set out in Clause 2
     (Interpretation and Construction) of the Master Definitions Schedule.

1.2  CONSTRUCTION: In this Deed, except where the context otherwise requires:

     (a)  the terms of the First Issuer Intercompany Loan Agreement, the Master
          Definitions Schedule and of any agreement in existence at the date
          hereof between the parties hereto in relation to any such documents
          are incorporated in this Deed to the extent required to ensure that
          any proposed disposition of the Funding Charged Property contained in
          this Deed is a valid disposition in accordance with Section 2(1) of
          the Law of Property (Miscellaneous Provisions) Act 1989;

     (b)  a reference in this Deed to any property, assets, undertakings or
          rights includes, unless the context otherwise requires, present and
          future property, assets, undertakings or rights;

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     (c)  "THIS FUNDING DEED OF CHARGE" or "THIS DEED" means this Deed of Charge
          and all the Schedules hereto (as from time to time modified and/or
          supplemented in accordance with the provisions set out herein) and all
          Deeds of Accession entered into pursuant to this Deed of Charge and
          each other document or deed entered into pursuant hereto (as from time
          to time modified/and or supplemented as aforesaid) and expressed to be
          supplemental hereto.

2.   COVENANT TO PAY AND TO PERFORM

     Subject to the provisions of the Funding Transaction Documents, including,
     without limitation, any limited recourse provisions, Funding covenants with
     and undertakes to the Security Trustee for itself and as trustee for the
     Funding Secured Creditors that it will:

     (a)  duly and punctually pay and discharge all monies and liabilities
          whatsoever which now are or at any time hereafter may (whether before
          or after demand) become due and payable by Funding to the Security
          Trustee (whether for its own account or as trustee for the Funding
          Secured Creditors) or to any of the other Funding Secured Creditors,
          whether actually or contingently, under this Deed or any other of the
          Funding Transaction Documents; and

     (b)  observe, perform and satisfy all its other obligations and liabilities
          under this Deed and/or any of the Funding Transaction Documents,

     PROVIDED THAT every payment in respect of any Funding Transaction Document
     made to the relevant Funding Secured Creditor in the manner provided in
     such Funding Transaction Document shall operate in satisfaction pro tanto
     of the relevant covenant by Funding in this Clause.

3.   FUNDING SECURITY

3.1  TRUST PROPERTY:

     (a)  Funding, by way of first fixed charge for the payment or discharge of
          the Funding Secured Obligations, subject to Clause 4 (Release of
          Funding Charged Property), hereby charges to the Security Trustee,
          save to the extent that the same may be situate in Jersey at any
          relevant time, all of its right, title, benefit and interest, present
          and future, in, to and under the Funding Share of the Trust Property
          including all rights to receive payment of any amounts which may
          become payable to Funding thereunder and all payments received by
          Funding thereunder including, without limitation, all rights to serve
          notices and/or make demands thereunder and/or to take such steps as
          are required to cause payments to become due and payable thereunder
          and all rights of action in respect of any breach thereof and all
          rights to receive damages or obtain relief in respect thereof and the
          proceeds of any of the foregoing, TO HOLD the same unto the Security
          Trustee absolutely.

     (b)  To the intent that the Security Trustee shall have a security interest
          in accordance with the Security Interests (Jersey) Law 1983 (the
          "JERSEY SECURITY LAW") (and as secured party for the purposes of such
          law) for the payment or discharge of the

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          Funding Secured Obligations, subject to Clause 4 (Release of Funding
          Charged Property), Funding (as debtor for the purposes of the Jersey
          Security Law) hereby assigns to the extent that the same may be
          situate in Jersey at any relevant time to the Security Trustee all of
          its right, title, benefit and interest, present and future, in, to and
          under the Funding Share of the Trust Property including all rights to
          receive payment of any amounts which may become payable to Funding
          thereunder and all payments received by Funding thereunder including,
          without limitation, all rights to serve notices and/or make demands
          thereunder and/or to take such steps as are required to cause payments
          to become due and payable thereunder and all rights of action in
          respect of any breach thereof and all rights to receive damages or
          obtain relief in respect thereof and the proceeds of any of the
          foregoing, TO HOLD the same unto the Security Trustee absolutely.

3.2  CONTRACTUAL RIGHTS:

     (a)  Funding, by way of first fixed security for the payment or discharge
          of the Funding Secured Obligations, subject to Clause 4 (Release of
          Funding Charged Property), hereby assigns to the Security Trustee,
          save to the extent that the same may be situate in Jersey at any
          relevant time, all of its right, title, benefit and interest, present
          and future, in, to and under:

          (i)    the Mortgages Trust Deed;

          (ii)   the Mortgage Sale Agreement;

          (iii)  the Administration Agreement;

          (iv)   the Corporate Services Agreement;

          (v)    the Bank Account Agreement;

          (vi)   the Funding Guaranteed Investment Contract;

          (vii)  the Cash Management Agreement;

          (viii) the Start-up Loan Agreement;

          (ix)   the Collection Bank Agreement;

          (x)    the First Issuer Intercompany Loan Agreement;

          (xi)   each New Intercompany Loan Agreement to be entered into by
                 Funding after the date hereof; and

          (xii) (save to the extent that the same are at such time subject to
                the Security Interests created under or pursuant to Clause 3.6
                (Accounts for Issuer Reserves) or any Deed of Accession) each
                other Funding Transaction Document (other than this Funding Deed
                of Charge) entered into or to be entered into by Funding
                pursuant to or in connection with any of the

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               documents set out in paragraphs (i) through (xi) above (including
               any agreement entered into by Funding as a replacement of any of
               the above agreements upon the termination of such agreement),

          including, without limitation, Funding's rights against the Mortgages
          Trustee under the Mortgages Trust Deed, all rights to receive payment
          of any amounts which may become payable to Funding thereunder and all
          payments received by Funding thereunder including, without limitation,
          all rights to serve notices and/or make demands thereunder and/or to
          take such steps as are required to cause payments to become due and
          payable thereunder and all rights of action in respect of any breach
          thereof and all rights to receive damages or obtain relief in respect
          thereof and the proceeds of any of the foregoing, TO HOLD the same
          unto the Security Trustee absolutely.

     (b)  To the intent that the Security Trustee shall have a security interest
          in accordance with the Jersey Security Law (and as secured party for
          the purposes of such law) for the payment or discharge of the Funding
          Secured Obligations, subject to Clause 4 (Release of Funding Charged
          Property), Funding (as debtor for the purposes of the Jersey Security
          Law) hereby assigns, to the extent that the same may be situate in
          Jersey at any relevant time to the Security Trustee all of its right,
          title, benefit and interest, present and future, in, to and under:

               (i)    the Mortgages Trust Deed;

               (ii)   the Mortgage Sale Agreement;

               (iii)  the Administration Agreement;

               (iv)   the Corporate Services Agreement;

               (v)    the Bank Account Agreement;

               (vi)   the Funding Guaranteed Investment Contract;

               (vii)  the Cash Management Agreement;

               (viii) the Start-up Loan Agreement;

               (ix)   the Collection Bank Agreement;

               (x)    the First Issuer Intercompany Loan Agreement;

               (xi)   each New Intercompany Loan Agreement to be entered into by
                      Funding after the date hereof; and

               (xii)  (save to the extent that the same are at such time subject
                      to the Security Interests created under or pursuant to
                      Clause 3.6 (Accounts for Issuer Reserves) or any Deed of
                      Accession) each other Funding Transaction Document (other
                      than this Funding Deed of Charge) entered into or to be

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                    entered into by Funding pursuant to or in connection with
                    any of the documents set out in paragraphs (i) through
                    (xi) above (including any agreement entered into by Funding
                    as a replacement of any of the above agreements upon the
                    termination of such agreement),

          including, without limitation, Funding's rights against the Mortgages
          Trustee under the Mortgages Trust Deed, all rights to receive payment
          of any amounts which may become payable to Funding thereunder and all
          payments received by Funding thereunder including, without limitation,
          all rights to serve notices and/or make demands thereunder and/or to
          take such steps as are required to cause payments to become due and
          payable thereunder and all rights of action in respect of any breach
          thereof and all rights to receive damages or obtain relief in respect
          thereof and the proceeds of any of the foregoing, TO HOLD the same
          unto the Security Trustee absolutely.

3.3  ACCOUNTS: Funding, by way of first fixed security for the payment or
     discharge of the Funding Secured Obligations, subject to Clause 4 (Release
     of Funding Charged Property), hereby assigns in favour of the Security
     Trustee all of its rights, title, benefit and interest, present and future,
     in:

     (a)  the Funding GIC Account (including, without limitation, all monies at
          any time constituting the whole or any part of the Funding Reserve
          Fund); and/or

     (b)  the Funding Transaction Account; and/or

     (c)  (save to the extent that the same are at such time subject to the
          Security Interests created under or pursuant to Clause 3.6 (Accounts
          for Issuer Reserves) or any Deed of Accession) each other account (if
          any) in which Funding may at any time have or acquire any right,
          title, benefit or interest,

     and to all monies now or at any time hereafter standing to the credit
     thereof and the debts represented by them together with all rights and
     claims relating or attached thereto including, without limitation, the
     right to interest and the proceeds of any of the foregoing, TO HOLD the
     same unto the Security Trustee absolutely.

3.4  AUTHORISED INVESTMENTS: Funding, by way of first fixed charge for the
     payment or discharge of the Funding Secured Obligations, subject to Clause
     4 (Release of Funding Charged Property), hereby charges to the Security
     Trustee all of its right, title, benefit and interest, present and future
     in, to and under any Authorised Investment purchased using monies standing
     to the credit of (save to the extent that the same are at such time subject
     to the Security Interests created under or pursuant to Clause 3.6 (Accounts
     for Issuer Reserves) or any Deed of Accession) any Funding Bank Account for
     the time being owned by it and all rights in respect of or ancillary to
     such Authorised Investments, including the right to income and the proceeds
     of any of the foregoing, TO HOLD the same unto the Security Trustee
     absolutely.

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3.5  FLOATING CHARGE: Funding, by way of first floating security for the payment
     or discharge of the Funding Secured Obligations, subject to Clause 4
     (Release of Funding Charged Property), hereby charges by way of first
     floating charge in favour of the Security Trustee the whole of its
     undertaking and all its property, assets and rights, whatsoever and
     wheresoever, both present and future other than any property or assets from
     time to time or for the time being the subject of a fixed charge or
     effectively assigned by way of security pursuant to any of the foregoing
     provisions of this Clause 3 (Funding Security), Clause 3.6 (Accounts for
     Issuer Reserves) and/or any Deed of Accession.

3.6  ACCOUNTS FOR ISSUER RESERVES:

     (a)  Funding, by way of first fixed security for the payment or discharge
          of only that portion of the Funding Secured Obligations which
          represent Funding's obligations and liabilities to the First Issuer
          under the First Issuer Intercompany Loan Agreement (the "FUNDING
          (FIRST ISSUER) SECURED OBLIGATIONS"), subject to Clause 4 (Release of
          Funding Charged Property), hereby:

          (i)  assigns by way of security to the Security Trustee for the
               benefit of the First Issuer (but not any other Funding Secured
               Creditor) all of its right, title, benefit and interest, present
               and future, in, to and under:

               (1)  the Funding (First Issuer) Bank Account Agreement; and/or

               (2)  the Funding (First Issuer) Guaranteed Investment Contract;

               including all rights to receive payment of any amounts which may
               become payable to Funding thereunder and all payments received by
               Funding thereunder including, without limitation, all rights to
               serve notices and/or make demands thereunder and/or to take such
               steps as are required to cause payments to become due and payable
               thereunder and all rights of action in respect of any breach
               thereof and all rights to receive damages or obtain relief in
               respect thereof and the proceeds of any of the foregoing, TO HOLD
               the same unto the Security Trustee absolutely;

          (ii) assigns in favour of the Security Trustee for the benefit of the
               First Issuer (but not any other Funding Secured Creditor) all of
               its rights, title, benefit and interest, present and future, in
               and to all monies now or at any time hereafter standing to the
               credit of the Funding (First Issuer) GIC Account and the debts
               represented by them together with all rights and claims relating
               or attached thereto including, without limitation, the right to
               interest and the proceeds of any of the foregoing, TO HOLD the
               same unto the Security Trustee absolutely; and

          (iii) charges to the Security Trustee for the benefit of the First
               Issuer (but not any other Funding Secured Creditor) all of its
               right, title, benefit and interest, present and future in, to and
               under any Authorised Investment purchased using monies standing
               to the credit of the Funding (First Issuer) GIC Account

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               and all rights in respect of or ancillary to such Authorised
               Investments, including the right to income and the proceeds of
               any of the foregoing, TO HOLD the same unto the Security Trustee
               absolutely;

     (b)  Each Funding Secured Creditor (other than the First Issuer)
          acknowledges that for so long as any of the Funding (First Issuer)
          Secured Obligations are not paid or discharged in full, the Security
          Trustee shall hold the Security Interests created under Clause 3.6(a)
          for the sole benefit of the First Issuer and such Funding Secured
          Creditor shall have no right or claim in respect of the relevant
          Funding Charged Property so assigned or charged pursuant to Clause
          3.6(a).

     (c)  Funding covenants and undertakes with and to the Security Trustee on
          behalf of the relevant Funding Secured Creditors that, as a condition
          precedent to the drawing of each New Intercompany Loan from any New
          Issuer, Funding will enter into a Deed of Accession (substantially in
          the form set out in Schedule 2 (Form of Deed of Accession) or such
          other form as shall be agreed by the parties thereto) pursuant to
          which (if required by the terms of the relevant Intercompany Loan
          Agreement) Funding will grant in favour of the Security Trustee for
          the benefit of the relevant New Issuer, by way of first fixed security
          for the payment or discharge of only that portion of the Funding
          Secured Obligations which represent Funding's obligations and
          liabilities to such New Issuer under such New Intercompany Loan
          Agreement (being the relevant "FUNDING (ISSUER) SECURED OBLIGATIONS"),
          subject to Clause 4 (Release of Funding Charged Property), the
          Security Interests contemplated thereunder in its right, title,
          interest and benefit in and to, the relevant Funding (Issuer) GIC
          Account for the New Issuer (into which the Issuer Reserve Fund and the
          Issuer Liquidity Reserve Fund (if any) of such New Issuer will be
          deposited) the Funding Transaction Documents relating thereto and the
          Authorised Investments purchased using monies standing to the credit
          of such account.

     (d)  Each Funding Secured Creditor (other than the relevant New Issuer
          referred to in paragraph (c) above) including the First Issuer
          acknowledges that for so long as the relevant Funding (Issuer) Secured
          Obligations in relation to such New Issuer are not paid or discharged
          in full, the Security Trustee shall hold the Security Interests
          created pursuant to the related Deed of Accession referred to in
          paragraph (c) above for the sole benefit of the relevant New Issuer
          and each other Funding Secured Creditor shall have no right or claim
          in respect of the relevant Funding Charged Property so assigned or
          charged pursuant to such Deed of Accession.

3.7  TITLE GUARANTEE: Each of the dispositions of or charges over property
     effected in or pursuant to this Funding Deed of Charge is made with full
     title guarantee.

3.8  FURTHER ACQUIRED ITEMS: For the avoidance of doubt, it is hereby confirmed
     that the Security Interests (including the Jersey Security Interests)
     created under or pursuant to Clauses 3.1 (Trust Property) to Clause 3.4
     (Authorised Investments) (inclusive), Clause 3.6 (Accounts for Issuer
     Reserves) and/or any Deed of Accession are intended to be specific and
     fixed assignments by way of security of, or specific and fixed charges over
     (as the case may be) the property and assets to which they relate, both
     present and future, including property and

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     assets which are acquired after the date hereof and are given for the
     purpose of securing New Intercompany Loans made to Funding by any New
     Issuer and Funding's obligations that may arise from time to time to any
     person (other than the First Issuer) who has delivered a duly completed
     Deed of Accession to the Security Trustee in accordance with the terms of
     this Deed.

3.9  NO TRANSFER OF OBLIGATIONS: Notwithstanding anything else in this Funding
     Deed of Charge, it is hereby agreed that dispositions of property effected
     in or pursuant to this Funding Deed of Charge do not transfer obligations,
     and nothing herein or in any Deed of Accession shall be construed as a
     transfer of obligations to, the Security Trustee.

3.10 NOTICE AND ACKNOWLEDGEMENT:

     (a)  The execution of this Funding Deed of Charge by each Funding Secured
          Creditor shall constitute express notice to such Funding Secured
          Creditor of the assignments, charges and Security Interests (including
          the Jersey Security Interests) made by Funding pursuant to this
          Funding Deed of Charge;

     (b)  By its execution of this Funding Deed of Charge each Funding Secured
          Creditor acknowledges that it has notice of and consents to the
          assignments, charges and Security Interests (including the Jersey
          Security Interests) made or granted by Funding under or pursuant to
          this Funding Deed of Charge and also acknowledges that as at the date
          hereof it has not received from any other person any notice of any
          assignment or charge of any of the property the subject of such
          Security Interests.

     (c)  Notwithstanding the assignments, charges and Security Interests
          (including the Jersey Security Interests) granted under or pursuant to
          this Funding Deed of Charge and subject as provided otherwise in this
          Funding Deed of Charge, each of the parties hereto acknowledges that:

          (i)  each Funding Secured Creditor and each other party to any Funding
               Transaction Document may continue to make all payments becoming
               due to Funding under any Funding Transaction Document in the
               manner envisaged by such Funding Transaction Document until the
               receipt of written notice from the Security Trustee or any
               Receiver requiring payments to be made otherwise; and

          (ii) until the Funding Security becomes enforceable in accordance with
               Clause 7.2 (Enforceable), Funding shall be entitled to exercise
               its rights, powers and discretions and perform its obligations in
               relation to the Funding Charged Property and under the Funding
               Transaction Documents in accordance with the provisions of the
               Funding Transaction Documents.

3.11 SECURITY TRUSTEE'S DISCRETION IN RELATION TO FUNDING CHARGED PROPERTY:
     Without prejudice to any other rights of the Security Trustee after the
     security created under this Deed has become enforceable and subject to the
     terms of the Funding Transaction Documents, the

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     Security Trustee may at any time after any part or parts of the Funding
     Security have become enforceable:

     (a)  enter into, make, execute, sign, deliver and do all such contracts,
          agreements, deeds, receipts, payments, assignments, transfers,
          conveyances, assurances and things and bring, prosecute, enforce,
          defend and abandon all such actions, suits and proceedings in relation
          to the Funding Charged Property as it may think expedient;

     (b)  exercise or refrain from exercising, in such manner as in its absolute
          discretion the Security Trustee shall think fit, all or any of the
          rights, powers, authorities discretions or remedies of Funding under
          or in relation to the Funding Charged Property or incidental to the
          ownership thereof and, in particular but without limiting the
          generality of the foregoing, exercise all rights to vote or to give
          any consent or notification or make any declaration in relation to
          such Funding Charged Property. For the avoidance of doubt, the
          Security Trustee shall not be required to have regard to the interests
          of Funding in the exercise or non-exercise of any such rights, powers,
          authorities, discretions and remedies or to comply with any direction
          given by Funding in relation thereto; and

     (c)  demand, sue for and take any advice or institute any proceedings to
          recover or obtain payment of any amounts which may then be due and
          payable to Funding but which remains unpaid under or in respect of the
          Funding Charged Property or any part thereof either in its own name or
          in the name of Funding.

3.12 NEW INTERCOMPANY LOANS: If Funding enters into a New Intercompany Loan
     Agreement, then:

     (a)  as conditions precedent thereto, in addition to the relevant New
          Issuer acceding to the terms of this Funding Deed of Charge,

          (i)  any other relevant creditors (as determined by the Security
               Trustee) shall accede to the terms of this Funding Deed of Charge
               by executing a Deed of Accession; and

          (ii) Funding shall provide confirmation to the parties to this Funding
               Deed of Charge that the Note Trustee in respect of the New Notes
               to be issued shall be the same legal entity as the existing Note
               Trustee at the time of the issuance of the New Notes; and

     (b)  each other party to this Funding Deed of Charge agrees that it shall
          enter into the relevant Deed of Accession.

4.   RELEASE OF FUNDING CHARGED PROPERTY

4.1  RELEASE, REASSIGNMENT OR DISCHARGE: Upon the irrevocable and unconditional
     payment in full or discharge (or any combination of the foregoing) of all
     the Funding Secured Obligations and upon the Security Trustee being
     satisfied that Funding is under no further actual or contingent obligation
     under this Deed or any other Funding Transaction Document, the

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     Security Trustee shall at the request and cost of Funding release, reassign
     and/or discharge from the Security Interests (including the Jersey Security
     Interests) all the relevant Funding Charged Property to, or to the order
     of, Funding; provided that where any such release, re-assignment or
     discharge is made in whole or in part on the faith of any payment, security
     or other disposition which is avoided or which must be repaid on
     bankruptcy, liquidation or otherwise, the security constituted by or
     pursuant to this Funding Deed of Charge and the liability of Funding
     hereunder and thereunder shall continue as if there had been no such
     release, re-assignment or discharge.

4.2  DISPOSAL OF AUTHORISED INVESTMENTS: On the making at any time by the Cash
     Manager on behalf of Funding or the Security Trustee of a disposal of any
     Authorised Investment charged pursuant to this Funding Deed of Charge, the
     Security Trustee shall, if so requested by and at the sole cost and expense
     of Funding, but without the Security Trustee being responsible for any
     loss, costs, claims or liabilities whatsoever occasioned by so acting upon
     such request, release, reassign or discharge from the Security Interests
     constituted by or pursuant to this Funding Deed of Charge the relevant
     Authorised Investments, provided that in the case of a disposal of an
     Authorised Investment, the proceeds of such disposal are paid by Funding
     into the Funding Bank Account from which the monies to make such Authorised
     Investment were originally drawn, subject to and in accordance with the
     provisions of the this Funding Deed of Charge and the Funding Transaction
     Documents.

4.3  TRUST PROPERTY: On the repurchase by the Seller from the Mortgages Trustee
     of any Mortgage Loan together with its Related Security pursuant to and in
     accordance with the terms of the Mortgage Sale Agreement, such Mortgage
     Loan and its Related Security shall no longer form part of the Trust
     Property and shall automatically be released from any Security Interest
     created under or pursuant to this Deed in respect of the Funding Share of
     the Trust Property.

4.4  WITHDRAWALS FROM FUNDING BANK ACCOUNTS: Subject to and in accordance with
     this Funding Deed of Charge and the other Funding Transaction Documents,
     the Cash Manager, on behalf of the Funding and the Security Trustee, is
     permitted pursuant to Clause 6 (Restrictions on Exercise of Certain Rights)
     from time to time to withdraw amounts from the Funding Bank Accounts in
     order to apply such amounts in accordance with the relevant Funding
     Priority of Payments. Any amount so withdrawn shall be released from the
     Security Interests (including the Jersey Security Interests) created under
     or pursuant to this Funding Deed of Charge provided that such amount is
     applied in accordance with and subject to the relevant Funding Priority of
     Payments.

5.   DECLARATION OF TRUST

Each of the Funding Secured Creditors declares the Security Trustee as trustee
of, and the Security Trustee hereby declares that it holds on trust for the
Funding Secured Creditors (or, as the case may be, the relevant Funding Secured
Creditor), upon and subject to the terms and conditions of this Funding Deed of
Charge, all of the covenants, undertakings and representations made to the
Security Trustee under this Funding Deed of Charge or any other Funding
Transaction Document and all of the charges, assignments, security and Security
Interests made or given to the Security Trustee or to be

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made or given to it for the purpose of securing the Funding Secured Obligations
under or pursuant to this Funding Deed of Charge or any other Funding
Transaction Document.

6.   RESTRICTIONS ON EXERCISE OF CERTAIN RIGHTS

6.1  FUNDING BANK ACCOUNTS: At all times prior to the release, reassignment or
     discharge of the Funding Security pursuant to Clause 4 (Release of Funding
     Charged Property):

     (a)  (save as otherwise provided in the Funding Transaction Documents or
          unless the Security Trustee otherwise agrees in writing (and then only
          on such terms and in such manner as the Security Trustee may
          require)), Funding shall procure that:

          (i)  any distribution of Mortgages Trustee Available Revenue Receipts
               to Funding and any distribution of Principal Receipts to Funding
               pursuant to the Mortgages Trust is deposited into the Funding GIC
               Account;

          (ii) all other income of Funding (if any) is deposited into the
               Funding GIC Account; and

          (iii) all Issuer Reserve Funds and Issuer Liquidity Reserve Funds (if
               any) held by Funding in respect of any New Issuer are deposited
               into the relevant Funding (Issuer) GIC Account established by
               Funding for such purpose; and

     (b)  Funding shall not be entitled to withdraw or transfer from any Funding
          Bank Account any monies standing to the credit thereof or direct any
          payment to be made therefrom to any person without the Security
          Trustee's prior written consent.

6.2  PERMITTED WITHDRAWALS FROM FUNDING BANK ACCOUNTS; AUTHORISED INVESTMENTS:

     (a)  Funding covenants with the Security Trustee that the amounts standing
          to the credit of the Funding Bank Accounts may only be withdrawn in
          accordance with this Clause 6.2 (Permitted Withdrawals from Funding
          Bank Accounts; Authorised Investments) or otherwise with the Security
          Trustee's prior written consent.

     (b)  On any day during an Interest Period prior to the security becoming
          enforceable pursuant to Clause 7.2 (Enforceable), the Security Trustee
          hereby authorises the Cash Manager to transfer such monies from the
          Funding GIC Account to the Funding Transaction Account as are to be
          applied on such date to meet any amounts then due and payable by
          Funding to third parties in accordance with item (B) of the Funding
          Pre-Enforcement Revenue Priority of Payments and further authorises
          the Cash Manager to withdraw such amounts from the Funding Transaction
          Account on such date to apply such monies in making such payments on
          behalf of Funding. For the purpose of this paragraph (b), the
          remaining provisions of this Clause 6.2 (Permitted Withdrawals from
          Funding Bank Accounts; Authorised Investments), Clause 6.3 (Funding
          Pre-Enforcement Revenue Priority of Payments) and Clause 6.4 (Funding
          Pre-Enforcement Principal Priority of Payments), the Cash Manager
          shall be entitled to assume that the security is not enforceable
          pursuant to Clause 7.2 (Enforceable) unless it has received notice
          from Funding or the Security Trustee or is otherwise

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          aware that the security has become so enforceable and shall not be
          liable to the Security Trustee, Funding or any other Funding Secured
          Creditor for making payments based on this assumption.

     (c)  On each Payment Date prior to the security becoming enforceable
          pursuant to Clause 7.2 (Enforceable), the Security Trustee hereby
          authorises the Cash Manager to transfer:

          (i)  from the Funding GIC Account and (subject as provided in
               paragraph (ii) below) each Funding (Issuer) GIC Account to the
               Funding Transaction Account (or, in the case of any such amounts
               which are to be used to fund or replenish any Issuer Reserve Fund
               or Issuer Liquidity Reserve Fund (if any) of any Issuer, to the
               relevant Funding (Issuer) GIC Account for such Issuer) such
               amounts of Funding Available Revenue Receipts as may be necessary
               on such date to be applied to meet Funding's payment obligations
               in accordance with the Funding Pre-Enforcement Revenue Priority
               of Payments (as the same may be amended or varied from time to
               time); and

          (ii) for so long as the relevant Funding (Issuer) Secured Obligations
               in respect of any Issuer are not paid or discharged in full, the
               Cash Manager shall only transfer funds from the relevant Funding
               (Issuer) GIC Account on any Payment Date to pay amounts due to
               such Issuer.

     (d)  On each Payment Date, prior to the security becoming enforceable
          pursuant to Clause 7.2 (Enforceable), the Security Trustee hereby
          authorises the Cash Manager to transfer:

          (i)  from the Funding GIC Account and (subject as provided in
               paragraph (ii) below) each Funding (Issuer) GIC Account to the
               Funding Transaction Account (or, in the case of any such amounts
               which are to be used to fund or replenish any Issuer Liquidity
               Reserve Fund (if any) of any Issuer, to the relevant Funding
               (Issuer) GIC Account for such Issuer) such amounts of Funding
               Available Principal Receipts as may be necessary on such date to
               be applied to meet Funding's payment obligations in accordance
               with the Funding Pre-Enforcement Principal Priority of Payments
               (as the same may be amended or varied from time to time); and

          (ii) for so long as the relevant Funding (Issuer) Secured Obligations
               in respect of any Issuer are not paid or discharged in full the
               Cash Manager shall only transfer funds from the relevant Funding
               (Issuer) GIC Account on any Payment Date to pay amounts due to
               such Issuer.

     (e)  The Security Trustee hereby authorises the Cash Manager, prior to the
          security becoming enforceable pursuant to Clause 7.2 (Enforceable), to
          make withdrawals from the relevant Funding Bank Accounts for the
          purposes of acquiring Authorised Investments provided that all amounts
          received in respect of the Authorised

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          Investments (including earnings thereon) shall be deposited into the
          relevant Funding Bank Account from which they were originally drawn.

6.3  FUNDING PRE-ENFORCEMENT REVENUE PRIORITY OF PAYMENTS: On each Payment prior
     to the security becoming enforceable pursuant to Clause 7.2 (Enforceable),
     the Security Trustee hereby authorises Funding or the Cash Manager in its
     place to withdraw Funding Available Revenue Receipts from the Funding
     Transaction Account and to apply such monies in accordance with the rules
     and the order of priority of the Funding Pre-Enforcement Revenue Priority
     of Payments.

6.4  FUNDING PRE-ENFORCEMENT PRINCIPAL PRIORITY OF PAYMENTS: On each Payment
     Date prior to the security becoming enforceable pursuant to Clause 7.2
     (Enforceable), the Security Trustee hereby authorises Funding or the Cash
     Manager in its place to make withdrawals of Funding Available Principal
     Receipts standing to the credit of the Funding Transaction Account and to
     apply such monies to repay principal due and payable by Funding under each
     Intercompany Loan Agreement or otherwise in accordance with the rules and
     the order of priority of the Funding Pre-Enforcement Principal Priority of
     Payments.

6.5  AMENDMENT TO FUNDING PRIORITY OF PAYMENTS: If any New Intercompany Loans
     are made available by any New Issuer to Funding in accordance with the
     terms of the Funding Transaction Documents and any amendment to the Funding
     Priority of Payments is required as a result thereof, then, subject to the
     parties to this Funding Deed of Charge agreeing the necessary amendments to
     the priority of payments, the parties to this Funding Deed of Charge,
     together with such New Issuer and any person entering into a Deed of
     Accession shall set out the new Funding Priority of Payments accordingly in
     a schedule to that Deed of Accession. The new Funding Priority of Payments
     so amended shall supersede those set out in Schedule 3 (Funding Priority of
     Payments) to this Deed.

6.6  NO ENFORCEMENT AGAINST ISSUERS: Each party to this Funding Deed of Charge
     undertakes to the First Issuer and each of the Funding Secured Creditors
     (including the Security Trustee in its capacity as such under this Funding
     Deed of Charge) that it shall not:

     (a)  take any steps or pursue any action whatsoever for the purpose of
          recovering any debts or amounts due or owing to it by any Issuer; or

     (b)  take any steps or legal proceedings for the winding-up, dissolution or
          reorganisation of, or the institution of insolvency proceedings
          against, any Issuer or for the appointment of a receiver,
          administrator, liquidator or similar officer of any Issuer in respect
          of any or all of its revenues and assets.

6.7  NO ENFORCEMENT BY FUNDING SECURED CREDITORS AND LIMITED RECOURSE: Each of
     the Funding Secured Creditors (other than the Security Trustee and any
     Receiver) hereby agrees with Funding and the Security Trustee that:

     (a)  only the Security Trustee may enforce the security created in favour
          of the Security Trustee by this Deed in accordance with the provisions
          hereof;

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<PAGE>

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

     (c)  it shall not take any steps for the purpose of recovering any of the
          Funding Secured Obligations (including, without limitation, by
          exercising any rights of set-off) or enforcing any rights arising out
          of the Funding Transaction Documents against Funding and it shall not
          take any steps or legal proceedings for the winding-up, dissolution or
          reorganisation of, or the institution of insolvency proceedings
          against, Funding or for the appointment of a receiver, administrator,
          liquidator or similar officer of Funding in respect of any or all of
          its revenues and assets

     PROVIDED THAT if the Security Trustee having become bound to do so subject
     to and in accordance with the terms of this Funding Deed of Charge and the
     Funding Transaction Documents, fails to serve an Intercompany Loan
     Enforcement Notice and/or, to take any steps or proceedings to enforce the
     security created hereunder within 30 days of becoming so bound and such
     failure is continuing, then (for so long as any Intercompany Loan is
     outstanding) the Note Trustee (or in the event of the failure of the Note
     Trustee) any Issuer or (if there are no Intercompany Loans outstanding) any
     other Funding Secured Creditor shall be entitled to take such steps and
     proceedings to enforce the security created under and in accordance with
     this Funding Deed of Charge as it shall deem necessary other than the
     presentation of a petition for the winding up, dissolution or
     reorganisation of, or the institution of insolvency proceedings against,
     Funding or the appointment of an administrator or liquidator of Funding.

6.8  ACKNOWLEDGEMENT OF SECURITY TRUSTEE: The Security Trustee hereby
     acknowledges and agrees that notwithstanding any other provision of this
     Funding Deed of Charge or any other Funding Transaction Document, no sum
     due or owing to any Funding Secured Creditor or to the Security Trustee
     (whether for itself or on behalf of the Funding Secured Creditors) from or
     by Funding under this Funding Deed of Charge or any other Funding
     Transaction Document shall be payable by Funding except to the extent that
     Funding has sufficient funds available or (following enforcement of the
     Funding Security) the Security Trustee has realised sufficient funds from
     the Funding Security to pay such sum subject to and in accordance with the
     relevant Funding Priority of Payments and provided that all liabilities of
     Funding required to be paid in priority thereto or pari passu therewith
     pursuant to such Funding Priority of Payments have been paid, discharged
     and/or otherwise provided for in full.

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6.9  UTILISATION OF ISSUER RESERVES: Funding and the Cash Manager shall procure
     that, subject to and in accordance with the Funding Priority of Payments,
     amounts standing to the credit of the Issuer Reserve Fund Ledger or the
     Issuer Liquidity Reserve Ledger of any Issuer shall only be debited for the
     purpose of making payments falling due under the Intercompany Loan
     Agreement of such Issuer and then only for the purposes specified in (in
     the case of the First Issuer) Schedule 5 (Utilisation of Issuer Reserves)
     or, in the case of any New Issuer, Schedule I to the Deed of Accession.

7.   ENFORCEMENT

7.1  NOTIFICATION: The Security Trustee shall, if reasonably practicable, give
     prior notification to the Seller, and the Cash Manager and each Funding
     Secured Creditor of the Security Trustee's intention to enforce the
     security created by this Funding Deed of Charge. However, the failure of
     the Security Trustee to provide such notification shall not in any way
     prejudice the ability of the Security Trustee to enforce the security
     created by this Funding Deed of Charge.

7.2  ENFORCEABLE:

     (a)  Without prejudice to the provisions of Clause 9 (Receiver) the
          security created under or pursuant to this Funding Deed of Charge
          shall become immediately enforceable and the power of sale and other
          powers conferred by Section 101 of the 1925 Act, as varied or amended
          by this Funding Deed of Charge, shall be exercisable by the Security
          Trustee, in each case at any time:

          (i)  upon the service on Funding by the Security Trustee of an
               Intercompany Loan Enforcement Notice; or

          (ii) if there are no Intercompany Loans outstanding, following a
               default in payment of any other Funding Secured Obligation on its
               due date or within any applicable grace period following such due
               date stated in the relevant Funding Transaction Document but
               subject always to any limited recourse provisions stated therein
               and to Clause 6.7 (No Enforcement by Funding Secured Creditors
               and Limited Recourse) hereof.

     (b)  For the purposes of the Jersey Security Interests, upon the occurrence
          of any of the events specified in Clause 7.2 (a) (i) or (ii) (which
          shall constitute events of default for the purposes of the Jersey
          Security Interests in accordance with the Jersey Security Law) the
          Security Trustee shall have the right but not subject to Clause 7.5
          (Mandatory Enforcement) the obligation to give notice (the "FUNDING
          JERSEY ENFORCEMENT NOTICE") to Funding in accordance with the Jersey
          Security Law and the power of sale of the Funding Jersey Secured
          Property shall become exercisable without the order of the Jersey
          court in accordance with the Jersey Security Law so that the Jersey
          Security Interests shall be enforceable in accordance with the
          provisions of the Jersey Security Law.

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7.3  POWER OF SALE:

     (a)  Notwithstanding any other provision of this Funding Deed of Charge,
          the Funding Secured Obligations shall be deemed to have become due and
          payable for the purposes of Section 101 of the 1925 Act and Article 8
          of the Jersey Security Law, and (to the extent applicable) the
          statutory power of sale and of appointing a receiver and other powers
          which are conferred on mortgagees under the 1925 Act as varied or
          extended by this Funding Deed of Charge shall be deemed to arise
          immediately after execution of this Deed.

     (b)  Section 103 of the 1925 Act shall not apply to this Deed and forthwith
          after the security has become enforceable in accordance with Clause
          7.2 (Enforceable) the statutory power of sale, as extended by this
          Funding Deed of Charge, and all other powers shall become immediately
          exercisable without notice to Funding and the provisions of the 1925
          Act regulating the power of sale shall, so far as they relate to the
          Funding Charged Property, be varied and extended accordingly.

7.4  DISCRETIONARY ENFORCEMENT: Subject to the provisions of this Funding Deed
     of Charge, the Security Trustee may at any time, at its discretion and
     without notice, take such proceedings and/or other action as it may think
     fit against, or in relation to, Funding or any other party to any of the
     Funding Transaction Documents to enforce their obligations under any of the
     Funding Transaction Documents. Subject to the provisions of this Funding
     Deed of Charge, at any time after the security has become enforceable in
     accordance with Clause 7.2 (Enforceable), the Security Trustee may, at its
     discretion and without notice, take such steps as it may think fit to
     enforce the security created pursuant to this Funding Deed of Charge.

7.5  MANDATORY ENFORCEMENT: The Security Trustee shall not, and shall not be
     bound to, take any proceedings, actions or steps under or in connection
     with any of the Funding Transaction Documents (including, without
     limitation, any steps to enforce the security constituted by this Funding
     Deed of Charge) unless:

     (a)  it shall have been directed to do so by the Note Trustee acting in
          accordance with the provisions of this Funding Deed of Charge; or

     (b)  if there are no Intercompany Loans outstanding, it shall have been
          directed to do so by the Funding Secured Creditor which ranks highest
          in the Funding Post-Enforcement Priority of Payments; and

     (c)  in either case, it shall have been indemnified to its satisfaction
          against all liabilities, actions, proceedings, claims, costs, charges,
          damages and expenses to which it may become liable or which may be
          incurred by it in connection therewith.

7.6  LAW OF PROPERTY ACT 1925: Subject in the case of the Funding Jersey Secured
     Property to the provisions of the Jersey Security Law, the provisions of
     the 1925 Act relating to the power of sale and the other powers conferred
     by Section 101(1) and (2) are hereby extended in relation to Funding as if
     such extensions were contained in the 1925 Act such that at any time after
     the

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     security constituted by this Funding Deed of Charge has become enforceable
     in accordance with Clause 7.2 (Enforceable) above, the Security Trustee may
     in its absolute discretion:

     (a)  make demand in the name of the Funding Secured Creditors or in its own
          right for any monies and liabilities in respect of the Funding Charged
          Property;

     (b)  enforce any rights it may have in respect of the whole or any part of
          the Funding Charged Property in such manner and upon such terms as the
          Security Trustee shall think fit;

     (c)  take possession of, get in and collect the Funding Charged Property
          and perfect the interests comprised therein;

     (d)  subject as expressly provided in Clause 7.7 (Restriction on Disposal
          of Funding Charged Property), sell, transfer, convey, dispose of vary
          or otherwise deal with, and also to grant any option to purchase, and
          to effect exchanges of, the whole or any part of the Funding Charged
          Property or any interest therein in such manner, for such
          consideration (if any) and generally upon such terms (including by
          deferred payment or payment by instalments) as it may think fit and/or
          to concur in any of the foregoing (and nothing shall preclude any such
          disposal being made to a Funding Secured Creditor);

     (e)  carry out any transaction, scheme or arrangement which the Security
          Trustee may, in its absolute discretion, consider appropriate with a
          view to or in connection with the sale of the Funding Charged
          Property;

     (f)  do all or any of the things or exercise all or any of the powers,
          authorities and discretions conferred expressly or by implication on
          any Receiver under Clause 9.6 (Powers of the Receiver) or otherwise
          under this Funding Deed of Charge; and

     (g)  exercise all or any of the powers conferred on mortgagees by the 1925
          Act as varied or extended by this Funding Deed of Charge and any other
          rights and remedies that may be conferred by statute or common law or
          in equity on mortgagees or receivers.

7.7  RESTRICTION ON DISPOSAL OF FUNDING CHARGED PROPERTY: Notwithstanding the
     foregoing provisions of this Clause 7 (Enforcement), if the Funding
     Security has become enforceable otherwise than by reason of a default in
     payment of any amount due in respect of any Intercompany Loan which would
     be utilised to fund the payment of any amount due on the Class A Notes of
     any Issuer, the Security Trustee will not be entitled to dispose of all or
     part of the Funding Charged Property unless either:

     (a)  a sufficient amount would be realised to allow a full and immediate
          discharge of such amount under each Intercompany Loan as would be
          sufficient to fund the payment in full of all amounts owing in respect
          of the Class A Notes of each Issuer and all prior ranking amounts due
          by Funding in accordance with the relevant Funding Priority of
          Payments; or

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     (b)  the Security Trustee is of the opinion, which shall be binding on the
          Funding Secured Creditors, reached after considering at any time and
          from time to time the advice of any financial or such other
          professional advisers selected by the Security Trustee for the purpose
          of giving such advice that the cashflow prospectively receivable by
          Funding will not, or that there is a significant risk that it will
          not, be sufficient, having regard to any other relevant actual,
          contingent or prospective liabilities of Funding, to discharge in full
          in due course such amount under each Intercompany Loan as would be
          sufficient to fund the payment in full of all amounts owing in respect
          of the Class A Notes of each Issuer and all prior ranking amounts due
          by Funding. The fees and expenses of the aforementioned financial
          adviser or such other professional adviser selected by the Security
          Trustee shall be paid by Funding; and

     (c)  the Security Trustee shall not be bound to make the determination set
          out above unless it shall have been indemnified and/or secured to its
          satisfaction against all liabilities to which it may thereby become
          liable or which it may incur by so doing,

     PROVIDED THAT if the Security Trustee is unable to obtain the advice
     referred to in paragraph (b) above having made reasonable efforts to do so,
     this Clause 7.7 (Restriction on Disposal of Funding Charged Property) shall
     not apply.

7.8  AUTHORISED INVESTMENTS: Any monies which under the trusts of this Funding
     Deed of Charge ought to or may be invested by the Security Trustee (or the
     Cash Manager on its behalf) after the security has become enforceable in
     accordance with Clause 7.2 (Enforceable) may be invested in the name or
     under the control of the Security Trustee in any Authorised Investments and
     the Security Trustee may at any time vary or transfer (or direct the Cash
     Manager to vary or transfer) any of such Authorised Investments for or into
     other such Authorised Investments as the Security Trustee in its absolute
     discretion may determine, and shall not be responsible (save where any loss
     results from the Security Trustee's fraud, wilful default or gross
     negligence or that of its officers or employees) for any loss occasioned by
     reason of any such investments whether by depreciation in value or
     otherwise, provided that such Authorised Investments were made in
     accordance with the foregoing provisions.

8.   UPON ENFORCEMENT

8.1  SERVICE OF INTERCOMPANY LOAN ENFORCEMENT NOTICE: Subject to the provisions
     of the Funding Transaction Documents (including, without limitation, Clause
     14.10 (Acceleration) of the Intercompany Loan Terms and Conditions), in the
     event that an Intercompany Loan Enforcement Notice has been served (and not
     withdrawn) by the Security Trustee on Funding, the Security Trustee shall
     as soon as practicable serve a copy of that Intercompany Loan Enforcement
     Notice on the Funding Secured Creditors.

8.2  CRYSTALLISATION: From and including the date when the Security Trustee
     serves an Intercompany Loan Enforcement Notice (which has not been
     withdrawn) on Funding:

     (a)  notwithstanding any other provision hereof or of any other Funding
          Transaction Document, no amount may be withdrawn from the Funding Bank
          Accounts except with the prior written consent of the Security
          Trustee; and

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     (b)  (provided that the Mortgages Trustee and the Cash Manager have been
          notified of the service of an Intercompany Loan Enforcement Notice) no
          action whatsoever may be taken by the Mortgages Trustee in relation to
          or in respect of the Funding Charged Property without the prior
          written consent of the Security Trustee save for any action required
          to preserve or protect the Mortgages Trustee's right, title or
          interest therein; and

     (c)  if not already crystallised, any charge created by this Funding Deed
          of Charge which is a floating charge shall crystallise.

8.3  FUNDING POST-ENFORCEMENT PRIORITY OF PAYMENTS: At any time after the
     security created under this Funding Deed of Charge has become enforceable
     in accordance with Clause 7.2 (Enforceable) and provided that the
     Intercompany Loan Enforcement Notice has not been withdrawn, all Funding
     Available Revenue Receipts, Funding Available Principal Receipts and all
     other monies paid to or received or recovered by or on behalf of Funding or
     the Security Trustee or any Receiver appointed on its behalf, including all
     proceeds following any sale, realisation or enforcement of the security
     created under this Funding Deed of Charge and all amounts not previously
     distributed and/or standing to the credit of any Funding Bank Account and
     all monies standing to the credit of the Funding Reserve Ledger (if any)
     shall (if not already received by the Security Trustee) be paid to and held
     by the Security Trustee on trust to apply the same (save to the extent
     required otherwise by applicable law) in accordance with the rules and the
     order of priority of the Funding Post-Enforcement Priority of Payments.

8.4  CERTIFICATION OF AMOUNTS:

     (a)  The Security Trustee shall be entitled to rely on (and to accept as
          conclusive evidence save in the case of manifest error) a certificate
          from each Funding Secured Creditor as to the amounts owed to such
          Funding Secured Creditor under the Funding Transaction Documents. The
          Security Trustee shall not take into account for the purpose of the
          application of moneys in accordance with the Funding Post-Enforcement
          Priority of Payments any amounts of which it has not been notified by
          the intended recipient on or prior to the date in question.

     (b)  Each Funding Secured Creditor will, at all times, promptly provide the
          Security Trustee and/or any Receiver on request with a certificate
          setting out detailed information as to the amount of the Funding
          Secured Obligations to which such Funding Secured Creditor is entitled
          and such other information as the Security Trustee and/or any Receiver
          may require to enable or facilitate the Security Trustee and/or any
          Receiver to perform its functions hereunder or under any of the
          Funding Transaction Documents, such certificate to be in a form
          required by the Security Trustee and/or any Receiver. In determining
          the respective entitlements of the Funding Secured Creditors
          hereunder, such certificates shall be binding on all of the Funding
          Secured Creditors.

8.5  RETENTION ACCOUNT: If the Security Trustee enforces the security created
     under this Funding Deed of Charge at a time when either no amounts or not
     all amounts owing in respect of the Funding Secured Obligations have become
     due and payable or any of the Funding Secured

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     Obligations are at such time contingent or future, the Security Trustee or
     a Receiver may, for so long as no such amounts or not all such amounts have
     become due and payable or any of the Funding Secured Obligations are at
     such time contingent or future, pay any monies referred to in Clause 8.3
     (Funding Post-Enforcement Priority of Payments), as the case may be, into,
     and retain such monies in, an interest-bearing account (a "RETENTION
     ACCOUNT") to be held by it as security and applied by it in accordance with
     Clause 8.3 (Funding Post-Enforcement Priority of Payments) as and when any
     of the amounts referred to therein become due and payable.

8.6  SECURITY TRUSTEE RIGHTS UPON ENFORCEMENT: In addition to any other rights
     expressly provided herein, for the period commencing upon the service of an
     Intercompany Loan Enforcement Notice and terminating upon the notification
     to the Funding Secured Creditors by the Security Trustee that all Funding
     Secured Obligations have been satisfied in full:

     (a)  (provided such Funding Secured Creditor has received a copy of, or
          other notice of the service on Funding of, any such Intercompany Loan
          Enforcement Notice) each Funding Secured Creditor agrees that it will
          pay to the Security Trustee or the Receiver, as the case may be, all
          monies received or recovered by such Funding Secured Creditor
          otherwise than in accordance with Clause 8.3 (Funding Post-Enforcement
          Priority of Payments (whether by way of set-off or otherwise) in order
          that such amounts may be applied by the Security Trustee in accordance
          with Clause 8.3 (Funding Post-Enforcement Priority of Payments);

     (b)  save as otherwise expressly provided in this Funding Deed of Charge or
          as required by the Security Trustee, all payments under or arising
          from this Funding Deed of Charge and all amounts payable to Funding by
          any Funding Secured Creditor under any Funding Transaction Document
          shall be paid to the Security Trustee or to its order;

     (c)  save as otherwise expressly provided in this Funding Deed of Charge,
          all rights or remedies provided for by this Funding Deed of Charge or
          available at law or in equity to the Funding Secured Creditors are
          exercisable by the Security Trustee;

     (d)  save as otherwise expressly provided in this Funding Deed of Charge,
          all rights to compel performance of the Funding Transaction Documents
          are exercisable by the Security Trustee; and

     (e)  all payments in respect of the Funding Secured Obligations shall
          operate in satisfaction pro tanto of Funding's covenants to the
          Funding Secured Creditors.

9.   RECEIVER

9.1  APPOINTMENT: At any time after the security constituted hereunder becomes
     enforceable, and whether or not the Security Trustee has taken possession
     of the Funding Charged Property, the Security Trustee may appoint, by
     writing or by deed, such person or persons (including an officer or
     officers of the Security Trustee) as the Security Trustee thinks fit to be
     a receiver, a receiver and manager or an administrative receiver of the
     Funding Charged Property or any

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     part thereof (each a "RECEIVER") and, in the case of an appointment of more
     than one person, to act together or independently of the other or others.

9.2  REMOVAL AND REPLACEMENT: Except as otherwise required by statute, the
     Security Trustee may by writing or by deed remove a Receiver and appoint
     another in its place or to act with a Receiver and the Security Trustee may
     apply to the court for an order removing an administrative receiver.

9.3  EXTENSION OF APPOINTMENT: The exclusion of any part of the Funding Charged
     Property from the appointment of the Receiver shall not preclude the
     Security Trustee from subsequently extending its appointment (or that of
     the Receiver replacing it) to that part of the Funding Charged Property or
     appointing another Receiver over any other part of the Funding Charged
     Property.

9.4  AGENT OF FUNDING: The Receiver shall, so far as the law permits, be the
     agent of Funding and Funding alone shall be responsible for the Receiver's
     contracts, engagements, acts, omissions, misconduct, negligence or default
     and for liabilities incurred by it; and in no circumstances whatsoever
     shall the Security Trustee or any Funding Secured Creditor be in any way
     responsible for or incur any liability in connection with its contracts,
     engagements, acts, omissions, misconduct, negligence or default, and if a
     liquidator of Funding shall be appointed, the Receiver shall act as
     principal and not as agent for the Security Trustee. Notwithstanding the
     generality of the foregoing, such Receiver shall in the exercise of its
     powers, authorities and discretions conform to the regulations (if any)
     from time to time made and given by the Security Trustee.

9.5  REMUNERATION: Subject as provided otherwise by applicable law, the
     remuneration of the Receiver shall be fixed by the Security Trustee and may
     be or include a commission calculated by reference to the gross amount of
     all monies received or otherwise. Such remuneration and such commission)
     (if any) shall be payable hereunder by Funding alone subject always to
     Clause 8.3 (Funding Post-Enforcement Priority of Payments) and the amount
     of such remuneration shall form part of the Funding Secured Obligations and
     shall accordingly be secured on the Funding Charged Property under the
     security created by or pursuant to this Funding Deed of Charge.

9.6  POWERS OF THE RECEIVER: Subject in the case of the Funding Jersey Secured
     Property to the provisions of Jersey Security Law, the Receiver of Funding,
     in addition to any powers conferred on an administrative receiver,
     receiver, manager or receiver and manager by statute or common law, shall
     have the power to:

     (a)  take possession of, get in and collect the Funding Charged Property;

     (b)  subject as expressly provided in Clause 7.7 (Restriction on Disposal
          of Funding Charged Property), sell, transfer, convey, license, release
          or otherwise dispose of vary or deal with, and also to grant any
          option to purchase, and to effect exchanges of, the whole or any part
          of Funding Charged Property or any interest therein and to grant or
          accept surrenders, disclaimers and variations in relation to or
          otherwise affecting the Funding Charged Property in each case in such
          manner, for such

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<PAGE>

          consideration (if any) and generally upon such terms (including by
          deferred payment or payment by instalments) as it may think fit and/or
          to concur in any of the foregoing (and nothing shall preclude any such
          disposal being made to a Funding Secured Creditor);

     (c)  carry out any transaction, scheme or arrangement which the Security
          Trustee may, in its absolute discretion, consider appropriate with a
          view to or in connection with the sale of the Funding Charged
          Property;

     (d)  insure the Funding Charged Property against such risks and for such
          amounts as the Security Trustee may consider prudent and to obtain
          bonds and performance guarantees;

     (e)  otherwise protect, maintain or improve, the Funding Charged Property
          or any part thereof in any manner and for any purpose whatsoever as it
          shall think fit;

     (f)  transfer all or any of the Funding Charged Property and/or any of the
          liabilities to any other company or body corporate, whether or not
          formed or acquired for the purpose (and whether or not a subsidiary or
          associated company of the Security Trustee or any other party to the
          Funding Transaction Documents) and to form a subsidiary or
          subsidiaries of Funding;

     (g)  carry on and manage or concur in managing or appoint a manager of, the
          whole or any part of the business of Funding in such manner as it
          shall in its absolute discretion think fit including the power to
          enter into any contract and to perform, repudiate, rescind or vary any
          contract to which Funding is a party;

     (h)  sell or concur in selling the whole or any part of Funding's business
          whether as a going concern or otherwise;

     (i)  appoint, dismiss, engage or vary the terms of employment of any
          employees, managers, agents or advisers of Funding upon such terms as
          to remuneration and otherwise for such periods as it may in its
          absolute discretion think fit;

     (j)  in connection with the exercise or proposed exercise of any of its
          powers or in order to obtain payment of its remuneration or
          reimbursement of its expenses (in each case, whether or not already
          due), to borrow or raise money from any person, without security or on
          the security of the Funding Charged Property (either in priority to
          the security constituted by this Funding Deed of Charge or otherwise)
          and generally in such manner and on such terms as it may think fit;

     (k)  bring, defend, submit to arbitration, negotiate, compromise, enforce,
          abandon and settle actions, suits, claims and proceedings concerning
          or affecting the Funding Charged Property or the security created
          under or pursuant to this Funding Deed of Charge;

     (l)  exercise any powers, discretions, voting, conversion or other rights
          or entitlements in relation to any of the Funding Charged Property or
          incidental to the ownership of or

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<PAGE>

          rights in or to any of the Funding Charged Property and to complete or
          effect any transaction entered into by Funding or disclaim, abandon or
          modify all or any of the outstanding contracts or arrangements of
          Funding relating to or affecting the Funding Charged Property;

     (m)  generally carry out, or cause to be carried out any transaction or
          scheme or arrangement whatsoever, whether similar or not to any of the
          foregoing, in relation to the Funding Charged Property which it may
          consider expedient as effectual as if it were solely and absolutely
          entitled to the Funding Charged Property;

     (n)  in connection with the exercise of any of its powers, execute or do,
          or cause or authorise to be executed or done, on behalf of or in the
          name of Funding or otherwise, as it may think fit, all documents, acts
          or things, acts or things which it may consider appropriate;

     (o)  redeem, discharge or compromise any security whether or not having
          priority to the security created hereunder;

     (p)  enter into covenants, guarantees, commitments, indemnities and other
          obligations or liabilities as it shall think fit;

     (q)  pay and discharge out of the profits and income of the Funding Charged
          Property and the monies to be made by it carrying on any such business
          as aforesaid the expenses in and about the carrying on and management
          of such business or in the exercise of any of the powers conferred by
          Clause 9 (Receiver) or otherwise in respect of the Funding Charged
          Property and all outgoings which it shall think fit to pay and to
          apply the residue of the said profits, income or monies in the manner
          provided by Clause 8.3 (Funding Post-Enforcement Priority of
          Payments); and

     (r)  exercise any other powers, rights and/or remedies that may be
          available at law or in equity including the powers referred to in
          Section 1 of the Insolvency Act 1986.

9.7  SECURITY: The Security Trustee may from time to time and at any time
     require any such Receiver to give security for the due performance of its
     duties and may fix the nature and amount of the security to be so given but
     the Security Trustee shall not be bound in any such case to require any
     such security.

9.8  APPLICATION BY RECEIVER: Save so far as otherwise directed by the Security
     Trustee, all monies from time to time received by such Receiver shall be
     paid over to the Security Trustee to be held by it on the trusts declared
     under this Funding Deed of Charge and to be distributed in accordance with
     Clause 8.3 (Funding Post-Enforcement Priority of Payments) and Schedule 3
     (Funding Priority of Payments).

9.9  PAYMENT TO RECEIVER: The Security Trustee may pay over to such Receiver any
     monies constituting part of the Funding Charged Property to the intent that
     the same may be applied for the purposes of this Funding Deed of Charge by
     such Receiver and the Security Trustee may from time to time determine what
     funds the Receiver shall be at liberty to keep in hand with a view to the
     performance of its duties as such Receiver.

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<PAGE>

9.10 NO RESTRICTIONS: None of the restrictions imposed by the 1925 Act in
     relation to the appointment of receivers or the giving of notice or
     otherwise shall apply in relation to the Receiver.

9.11 PETITION FOR ADMINISTRATION: Upon receipt of notice of a petition to a
     court of competent jurisdiction for an administration order in relation to
     Funding or other order having substantially the same effect to be made on
     application by a creditor or creditors of Funding, the Security Trustee
     shall, subject to it being indemnified to its satisfaction, as soon as
     practicable appoint a Receiver in accordance with this Funding Deed or
     Charge (who shall, to the extent permitted by law, be an "administrative
     receiver" under Section 29 (2) of the Insolvency Act 1986) of the whole of
     the Funding Charged Property and the Security Trustee shall instruct the
     Receiver to attend at the hearing of the petition and take such steps as
     are necessary to prevent the appointment of an administrator. The Funding
     Secured Creditors shall co-operate and do all acts and enter into such
     further documents, deeds or agreements as the Security Trustee may deem
     necessary or desirable to ensure that an administration order is not made
     and that an administrative receiver is appointed.

10.  FURTHER ASSURANCE AND POWER OF ATTORNEY

10.1 FURTHER ASSURANCE: Funding covenants with and undertakes to the Security
     Trustee from time to time (notwithstanding that the security may not have
     become enforceable and the Security Trustee may not have served an
     Intercompany Loan Enforcement Notice) upon demand:

     (a)  to execute, at Funding's cost, any document or do any act or thing
          which the Security Trustee or any Receiver may specify (including
          executing such Security Interests over its rights in and over the
          Funding Charged Property and any other assets of Funding in such form
          as the Security Trustee and/or any Receiver may require) with a view
          to:

          (i)  registering, perfecting, protecting or improving any charge or
               security or Security Interest (including any Jersey Security
               Interest) created or intended to be created by or pursuant to
               this Funding Deed or Charge (including any act or document which
               may be required or desirable under the laws of any jurisdiction
               in which any property or assets may be located in order to confer
               on the Security Trustee security over such property and assets
               equivalent or similar to the security intended to be conferred by
               or pursuant to this Funding Deed of Charge) and in such form as
               the Security Trustee or the Receiver may specify; and/or

          (ii) facilitating the realisation of or enforcement of rights of, all
               or any part of the Funding Charged Property or the exercise, or
               proposed exercise, of any of the powers, duties or discretions
               vested or intended to be vested in the Security Trustee or such
               Receiver by or pursuant to this Funding Deed of Charge or doing
               any act or thing deemed necessary by the Security Trustee or the
               Receiver,

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<PAGE>

     (b)  to give or join in giving or procuring the giving of any notices to
          any persons and obtain or procure that there is obtained any necessary
          acknowledgements in relation to such notices, all in such form as the
          Security Trustee or the Receiver may require and at the cost of
          Funding,

     and for the purpose of this Clause 10.1 a certificate in writing signed by
     the Security Trustee to the effect that any particular assurance or thing
     is required by it shall be conclusive evidence of that fact.

10.2 EXECUTION OF POWER OF ATTORNEY: Immediately upon execution of this Deed,
     Funding shall execute and deliver to the Security Trustee the Power of
     Attorney in or substantially in the form set out in Schedule 1.

10.3 FUNDING CHARGED PROPERTY ON TRUST: To the extent permitted to do so under
     the Funding Transaction Documents, for the purpose of giving effect to this
     Funding Deed of Charge, Funding hereby declares that, after service of an
     Intercompany Loan Enforcement Notice, it will hold all the Funding Charged
     Property (subject to the right of redemption) upon trust to convey, assign
     or otherwise deal with such Funding Charged Property in such manner and to
     such person as the Security Trustee shall direct pursuant to this Funding
     Deed of Charge, and declares that it shall be lawful for the Security
     Trustee to appoint a new trustee or trustees of the Funding Charged
     Property in place of Funding.

11.  CRYSTALLISATION

11.1 NOTICE: In addition and without prejudice to any other event resulting in a
     crystallisation of the floating charge created by this Funding Deed or
     Charge or any other right the Security Trustee may have, the Security
     Trustee may, by notice in writing to Funding, declare that the floating
     charge hereby created shall be converted into first specific fixed charges
     over such of the undertaking, property and assets of Funding as the
     Security Trustee may specify in such notice at any time if:

     (a)  a Potential Intercompany Loan Event of Default has occurred; or

     (b)  it believes that the Funding Charged Property or any part thereof is
          in danger of being seized or sold under any form of distress,
          execution or diligence levied or is otherwise in jeopardy or;

     (c)  it considers that it is desirable in order to protect the priority of
          the security created by this Funding Deed of Charge.

11.2 AUTOMATIC CRYSTALLISATION: In addition and without prejudice to any other
     event resulting in a crystallisation of the floating charge contained
     herein and without prejudice to any rule of law which may have a similar
     effect, the floating charge created under this Funding Deed of Charge shall
     automatically and without notice be converted with immediate effect into a
     fixed charge as regards:

     (a)  all property, assets or undertaking of Funding, subject to the
          floating charge, upon:

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<PAGE>

          (i)  the presentation of a petition for the compulsory winding-up of
               Funding;

          (ii) the convening of a meeting for the passing of a resolution for
               the voluntary winding-up of Funding;

          (iii) the presentation of a petition for the making of an
               administration order in relation to Funding;

          (iv) the presentation or making of an application for a warrant of
               execution, writ of fieri facias, garnishee order or charging
               order in respect of any of the assets of Funding subject to the
               floating charge;

          (v)  the occurrence of an Intercompany Loan Event of Default; and/or

     (b)  any property, assets or undertaking of Funding, which become subject
          to an Encumbrance in favour of any person other than the Security
          Trustee or which is/are the subject of a sale, transfer or other
          disposition, in either case, contrary to the covenants and
          undertakings contained in the Funding Transaction Documents,
          immediately prior to such Encumbrance arising or such sale, transfer
          or other disposition being made.

12.  PROVISIONS RELATING TO THE SECURITY

12.1 CONTINUING SECURITY: The security created under or pursuant to this Funding
     Deed of Charge shall be:

     (a)  in addition to and independent of and shall not operate so as to
          prejudice or affect or merge in any other security, right of recourse
          or other right whatsoever which may be held by any of the Funding
          Secured Creditors or the Security Trustee on their behalf in respect
          of the whole or any part of the Funding Secured Obligations and shall
          not be affected by any release, reassignment or discharge of such
          other security; and

     (b)  a continuing security for the Funding Secured Obligations and shall
          remain in force as continuing security for the Funding Secured
          Creditors and shall not be considered as satisfied or discharged by
          any intermediate payment or settlement of the whole or any part of the
          Funding Secured Obligations or the existence at any time of a credit
          balance on any current or other account or any other matter or thing
          whatsoever.

12.2 CONSOLIDATION: Section 93 of the 1925 Act shall not apply in relation to
     any of the Security Interest contained in this Funding Deed of Charge.

12.3 RULING OFF: If the Security Trustee receives notice of any Encumbrance
     affecting the whole or any part of the Funding Charged Property or any
     security granted hereunder in contravention of the provisions hereof:

     (a)  the Security Trustee may open a new account in the name of Funding
          and, if it does not, it shall nevertheless be deemed to have done so
          at the time it received such notice; and

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<PAGE>

     (b)  all payments made by Funding to the Security Trustee after the
          Security Trustee receives such notice shall be credited or deemed to
          have been credited to the new account, and in no circumstances
          whatsoever shall operate to reduce the Funding Secured Obligations as
          at the time the Security Trustee received such notice.

12.4 AVOIDANCE OF PAYMENTS: Any settlement, discharge or release between (a)
     Funding and (b) the Security Trustee or any Receiver (the "RELEVANT
     PERSON(S)") shall be conditional upon no security or payment granted or
     made to the Relevant Person(s) by Funding or any other person being avoided
     or reduced by virtue of any provisions or enactments relating to
     bankruptcy, insolvency or liquidation for the time being in force and, in
     the event of such security or payment being so avoided or reduced, the
     Relevant Person(s) shall be entitled to recover the value or amount of such
     security or payment from Funding and from the security subsequently as if
     such settlement, discharge or release had not occurred.

12.5 RETENTION OF CHARGES: If the Security Trustee shall have reasonable grounds
     for believing that Funding may be insolvent or deemed to be insolvent
     pursuant to the provisions of the Insolvency Act 1986 (and production of a
     solvency certificate of a duly authorised officer of Funding shall be prima
     facie evidence of the solvency of Funding) as at the date of any payment
     made by Funding to the Security Trustee or otherwise in respect of the
     Funding Secured Obligations and that as a result, such payment may be
     capable of being avoided or clawed back, the Security Trustee shall be at
     liberty to retain the charges contained in or created pursuant to this
     Funding Deed of Charge until the expiry of a period of one month plus such
     statutory period within which any assurance, security, guarantee or payment
     can be avoided or invalidated after the payment and discharge in full of
     all Funding Secured Obligations notwithstanding any release, settlement,
     discharge or arrangement which may be given or made by the Security Trustee
     on, or as a consequence of, such payment or discharge of liability provided
     that, if at any time within such period, a petition shall be presented to a
     competent court for an order for the winding up or the making of an
     administration order in respect of Funding, or if Funding shall commence to
     be wound up or to go into administration or any analogous proceedings shall
     be commenced by or against Funding, as the case may be, the Security
     Trustee shall be at liberty to continue to retain such security for such
     further period as the Security Trustee may determine and such security
     shall be deemed to continue to have been held as security for the payment
     and discharge to the Security Trustee of all Funding Secured Obligations.

12.6 POSSESSION: Entry into possession of the Funding Charged Property or any
     part thereof shall not render the Security Trustee or any Receiver of
     Funding liable to account as mortgagee in possession for anything except
     actual receipts. If and whenever the Security Trustee or the Receiver
     enters into possession of the Funding Charged Property, it shall be
     entitled at any time to go out of such possession.

12.7 CHANGE OF NAME, ETC.: This Funding Deed of Charge shall remain valid and
     enforceable notwithstanding any change in the name, composition or
     constitution of the Security Trustee or Funding or any amalgamation, merger
     or consolidation by the Security Trustee or Funding, with any other
     corporation (whether, in the case of Funding, permitted under the Funding
     Transaction Documents or not).

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13.  PROTECTION OF THIRD PARTIES

13.1 NO ENQUIRY: No purchaser from, or other person dealing with, the Security
     Trustee or a Receiver shall be concerned to enquire whether any of the
     powers exercised or purported to be exercised under this Funding Deed of
     Charge has arisen or become exercisable, whether the Funding Secured
     Obligations remain outstanding or have become payable, whether the Security
     Trustee or the Receiver is authorised to act or as to the propriety or
     validity of the exercise or purported exercise of any power; and the title
     and the position of such a purchaser or other person shall not be
     impeachable by reference to any of those matters and all the protection to
     purchasers contained in Sections 104 and 107 of the 1925 Act shall apply to
     any person purchasing from or dealing with the Security Trustee or any such
     Receiver.

13.2 RECEIPTS TO THIRD PARTIES: Upon any sale, calling in, collection,
     enforcement or other realisation of the Funding Charged Property in
     accordance with the terms hereof and upon any other dealing or transaction
     under or pursuant to this Funding Deed of Charge, the receipt of the
     Security Trustee or any Receiver shall be an absolute and a conclusive
     discharge to a purchaser or other person dealing with the Security Trustee
     or such Receiver and shall relieve it of any obligation to see to the
     application of any monies paid to or by the direction of the Security
     Trustee or such Receiver.

14.  SET-OFF

     The Security Trustee may at any time following the service of an
     Intercompany Loan Enforcement Notice without notice and notwithstanding any
     settlement of account or other matter whatsoever combine or consolidate all
     or any existing accounts of Funding whether in its own name or jointly with
     others and held by it or any Funding Secured Creditor and may set-off or
     transfer all or any part of any credit balance or any sum standing to the
     credit of any such account (whether or not the same is due to Funding from
     the Security Trustee or relevant Funding Secured Creditor and whether or
     not the credit balance and the account in debit or the Funding Secured
     Obligations are expressed in the same currency in which case the Security
     Trustee is hereby authorised to effect any necessary conversions at its
     prevailing rates of exchange) in or towards satisfaction of any of the
     Funding Secured Obligations (and on or at any time after the security
     created under this Funding Deed of Charge has become enforceable in
     accordance with Clause 7.2 (Enforceable) the Security Trustee may make such
     application notwithstanding any specified maturity of any deposits) but
     subject always to the Funding Priority of Payments and may in its absolute
     discretion estimate the amount of any liability of Funding which is
     contingent or unascertained and thereafter set-off such estimated amount
     and no amount shall be payable by the Security Trustee to Funding unless
     and until all Funding Secured Obligations have been ascertained and fully
     repaid or discharged.

15.  REPRESENTATIONS AND COVENANTS

15.1 REPRESENTATIONS AND WARRANTIES:

     (a)  Funding hereby represents to the Security Trustee that it is, as of
          the date hereof, the beneficial owner of all of the Funding Charged
          Property free and clear of all liens, claims, charges or Encumbrances
          except those specifically created by this Funding

                                       30

<PAGE>

          Deed of Charge, and undertakes that it will retain all rights
          associated with ownership of the Funding Charged Property free and
          clear of all liens, claims, charges, Encumbrances except those
          specifically created by this Funding Deed of Charge or any other
          Transaction Document.

     (b)  Funding represents that it has taken all necessary steps to enable it
          to create the Security Interests in respect of the Funding Charged
          Property in accordance with this Funding Deed of Charge and has taken
          no action or steps which will or may prejudice its right, title and
          interest in, to and under the Funding Charged Property.

15.2 NEGATIVE COVENANTS: Funding hereby undertakes that, for so long as any
     Funding Secured Obligation remains outstanding, Funding shall not, save to
     the extent contemplated in or provided in the Funding Transaction Documents
     or unless it has obtained the prior written consent of the Security
     Trustee:

     (a)  open or maintain any bank account or deposit account with any bank or
          any other financial institution other than the Funding Bank Accounts
          or close the Funding Bank Accounts other than in accordance with the
          Funding Transaction Documents provided that upon its entering into any
          New Intercompany Loan Agreement Funding shall be entitled to establish
          from time to time new Funding (Issuer) GIC Accounts;

     (b)  either in a single transaction or in a series of transactions, whether
          related or not and whether voluntarily or involuntarily, sell,
          transfer, lease or otherwise dispose of or grant any option over all
          or any part of its assets, properties or undertakings or any interest,
          estate, right, title or benefit therein or agree or purport to do any
          of the foregoing, other than as provided for pursuant to the Funding
          Transaction Documents;

     (c)  create or permit to subsist any Security Interest over or in respect
          of any of its assets (unless arising by operation of law) other than
          as provided pursuant to the Funding Transaction Documents provided
          that upon its entering into any New Intercompany Loan Agreement
          Funding shall be entitled to create the Security Interests
          contemplated under the Deed of Accession;

     (d)  engage in any activities in the United States (directly or through
          agents), nor derive any income from United States sources as
          determined under United States income tax principles and will not hold
          any property if doing so would cause it to be engaged or deemed to be
          engaged in a trade or business within the United States as determined
          under United States tax principles; or

     (e)  consent to any amendment to, or agree to waive or authorise any breach
          of any provision of any of the Funding Transaction Documents without
          the prior written consent of the Security Trustee.

15.3 POSITIVE COVENANTS: Funding covenants and undertakes with the Security
     Trustee for the benefit of the Funding Secured Creditors that it shall:

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     (a)  file or procure the filing with the Registrar of Companies pursuant to
          Chapter I of Part XII of the Companies Act 1985 of duly completed
          Forms 395 together with an executed original of this Funding Deed of
          Charge and the required fee within 21 days after the date of this
          Funding Deed of Charge;

     (b)  on the date hereof join with the Security Trustee in giving notice of
          the assignments by way of security and the security created under or
          pursuant to this Funding Deed of Charge to each of the Seller, the
          Administrator and each Collection Bank and any other party to any
          Funding Transaction Document not being a party to this Funding Deed of
          Charge and, for the purposes of the Jersey Security Interests, to any
          person not being a party to this Funding Deed of Charge from whom
          Funding would have been entitled to claim the collateral (but for the
          Jersey Security Interests), and on any date hereafter (to the extent
          only that such notice and acknowledgement is not given under or
          pursuant to this Funding Deed of Charge) join with the Security
          Trustee in giving notice of the assignments by way of security and the
          security created under this Funding Deed of Charge to any party to a
          Funding Transaction Document entered into by Funding after the date
          hereof and, for the purposes of the Jersey Security Interests, to any
          person from whom Funding would have been entitled to claim the
          collateral (but for the Jersey Security Interests), in each case in
          the form (or substantially in the form) set out in Schedule 4 (Form of
          Notice of Assignment);

     (c)  cause to be prepared and certified by its auditors in respect of each
          Financial Year accounts in such form as will comply with relevant
          legal and accounting requirements for the time being;

     (d)  at all times keep or procure the keeping of such books of account and
          records as may be necessary to comply with all applicable laws and so
          as to enable financial statements to be prepared and allow the
          Security Trustee and any person or persons appointed by the Security
          Trustee free access to such books of account and records at all
          reasonable times during normal business hours upon reasonable notice
          in writing, provided that such inspection shall only be for the
          purposes of carrying out its duties under this Funding Deed of Charge
          and any information so obtained shall only be used and passed on to
          any other person for the purpose of the Security Trustee carrying out
          its duties under this Funding Deed of Charge;

     (e)  give notice in writing to the Security Trustee of the occurrence of
          any Intercompany Loan Event of Default, Potential Intercompany Loan
          Event of Default immediately upon becoming aware thereof and without
          waiting for the Security Trustee to take any further action;

     (f)  give to the Security Trustee (i) within seven days after demand by the
          Security Trustee therefor and (ii) (without the necessity for any such
          demand) promptly after the publication of its audited accounts in
          respect of each Financial Year and in any event not later than the
          date required by statute to file or publish (whichever is earlier)
          such audited accounts after the end of each such Financial Year a
          certificate signed by two directors of Funding to the effect that as
          at a date not more than seven days before delivering such certificate
          (the "CERTIFICATION DATE") there did not exist and

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<PAGE>

          had not existed since the certification date of the previous
          certificate (or in the case of the first such certificate the date
          hereof) any Intercompany Loan Event of Default or any Potential
          Intercompany Loan Event of Default (or if such then exists or existed
          specifying the same) and that during the period from and including the
          certification date of the last such certificate (or in the case of the
          first such certificate the date hereof) to and including the
          certification date of such certificate Funding has complied with all
          its obligations contained in this Funding Deed of Charge and each of
          the other Funding Transaction Documents or (if such is not the case)
          specifying the respects in which it has not so complied;

     (g)  at all times execute all such further documents and do all such
          further acts and things as may in the opinion of the Security Trustee
          be necessary at any time or times to give effect to the terms and
          conditions of this Funding Deed of Charge and the other Funding
          Transaction Documents;

     (h)  at all times comply with the provisions of this Funding Deed of Charge
          and of any other Funding Transaction Document which are expressed to
          be binding on it and to observe and perform the same;

     (i)  so far as permitted by applicable law, at all times give to the
          Security Trustee such information as it requires for the performance
          of its functions;

     (j)  duly and promptly pay and discharge all Taxes imposed upon it or its
          assets unless such Taxes are, in the opinion of the Security Trustee,
          being contested in good faith by Funding;

     (k)  in the event of termination of the Bank Account Agreement (or any
          Funding (Issuer) Bank Account Agreement), subject to and in accordance
          with the provisions of the Bank Account Agreement (or such other
          agreement) use its reasonable endeavours to enter into a replacement
          Bank Account Agreement (or replacement Funding (Issuer) Bank Account
          Agreement);

     (l)  in the event of termination of the Cash Management Agreement, subject
          to and in accordance with the provisions of the Cash Management
          Agreement, use its reasonable endeavours to enter into a replacement
          Cash Management Agreement.

16.  TERMS OF APPOINTMENT

16.1 By way of supplement to the Trustee Act 1925 and the Trustee Act 2000 it is
     expressly declared as set out in the following provisions of this Clause 16
     (Terms of Appointment).

16.2 RELIANCE ON INFORMATION:

     (a)  The Security Trustee may in relation to this Funding Deed of Charge
          act on the opinion or advice of, or a certificate or any information
          obtained from, any lawyer, banker, valuer, surveyor, securities
          company, broker, auctioneer, accountant or other expert in the United
          Kingdom or elsewhere, whether obtained by the Security Trustee or any
          Receiver, and shall not be responsible for any loss occasioned by so
          acting.

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          Any such opinion, advice, certificate or information may be sent or
          obtained by letter, facsimile reproduction or in any other form and
          the Security Trustee shall not be liable for acting in good faith on
          any opinion, advice, certificate or information purporting to be so
          conveyed although the same shall contain some error or shall not be
          authentic provided that such error or lack of authenticity is not
          manifest.

     (b)  The Security Trustee may call for and shall be entitled to rely upon,
          unless any of its officers in charge of the administration of this
          Funding Deed of Charge shall have actual knowledge or express notice
          to the contrary, a certificate signed by two directors of Funding or a
          certificate of any other person in respect of every matter and
          circumstance for which a certificate is expressly provided for under
          this Funding Deed of Charge or the other Funding Transaction Documents
          and to call for and rely upon, unless any of its officers in charge of
          the administration of this Funding Deed of Charge shall have actual
          knowledge or express notice to the contrary, a certificate of Funding
          or any other person as to any other fact or matter prima facie within
          the knowledge of Funding or such person as sufficient evidence thereof
          and the Security Trustee shall not be bound in any such case to call
          for further evidence or be responsible for any loss, liability, costs,
          damages, expenses or inconvenience that may be caused by it failing to
          do so.

     (c)  The Security Trustee may call for and shall be entitled to rely,
          unless any of its officers in charge of the administration of this
          Funding Deed of Charge shall have actual knowledge or express notice
          to the contrary, upon any document provided to it by Funding, the
          Mortgages Trustee or the Cash Manager in respect of every matter and
          circumstance prima facie within the knowledge of Funding, the
          Mortgages Trustee or the Cash Manager and the Security Trustee shall
          not be bound in any such case to call for further evidence or be
          responsible for any loss, liability, costs, damages, expenses or
          inconvenience that may be caused by it failing to do so.

     (d)  The Security Trustee shall be entitled to act on any requests or
          instructions of the Note Trustee without further enquiry and to assume
          that any requests or instructions of the Note Trustee pursuant to this
          Funding Deed of Charge or any of the other Transaction Documents are
          (a) given in accordance with the provisions of this Funding Deed of
          Charge and (b) given, where appropriate, in accordance with the
          directions of the Noteholders of the relevant class, and the Security
          Trustee shall not be liable to any person for any action taken or
          omitted under or in connection with this Funding Deed of Charge in
          accordance with any such instructions or requests. The Security
          Trustee shall be entitled to act upon any notice, request or other
          communication of any party to this Funding Deed of Charge for the
          purposes of this Funding Deed of Charge or any of the Transaction
          Documents if such notice, request or other communication purports to
          be signed or sent by or on behalf of any authorised signatory of such
          party.

16.3 POWERS AND DUTIES:

     (a)  The Security Trustee shall not have any responsibility for or have any
          duty to make any investigation in respect of or in any way be liable
          whatsoever for the nature,

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<PAGE>

          status, creditworthiness or solvency of Funding. Each Funding Secured
          Creditor shall be solely responsible for making its own independent
          appraisal of and investigation into the financial condition,
          creditworthiness, affairs, status and nature of Funding and the
          Security Trustee shall not at any time have any responsibility for the
          same and each Funding Secured Creditor shall not rely on the Security
          Trustee in respect thereof.

     (b)  The Security Trustee shall not be responsible for the scope or
          accuracy of any recitals, statements, warranty, representation or
          covenant of any party (other than the Security Trustee) contained
          herein or in any other Funding Transaction Document or any other
          document entered into in connection therewith and shall assume the
          accuracy and correctness thereof.

     (c)  The Security Trustee shall (save as expressly otherwise provided
          herein or in the other Transaction Documents) as regards all trusts,
          powers, authorities and discretions vested in it by this Funding Deed
          of Charge, the other Transaction Documents or by operation of law,
          have absolute and uncontrolled discretion as to the exercise or
          non-exercise thereof and the Security Trustee shall not be responsible
          for any liability that may result from the exercise or non-exercise
          thereof but whenever the Security Trustee is under the provisions of
          this Funding Deed of Charge bound to act at the request or direction
          any party, the Security Trustee shall nevertheless not be so bound
          unless first indemnified and/or provided with 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.

     (d)  The Security Trustee may accept without enquiry, requisition or
          objection such title as Funding may have to the Funding Charged
          Property or any part thereof from time to time and shall not be
          required to investigate or make any enquiry into or be liable for any
          defect or failure in the right or title of Funding to the Funding
          Charged Property or any part thereof from time to time whether or not
          any defect was known to the Security Trustee or might have been
          discovered upon examination, inquiry or investigation and whether or
          not capable of remedy.

     (e)  The Security Trustee shall not be responsible for exercising the
          rights of any of the parties under the Transaction Documents or
          considering the basis upon which the approvals or consents are granted
          by any of the parties under the Transaction Documents.

     (f)  The Security Trustee shall not be bound to give notice to any person
          of the execution of this Funding Deed of Charge nor shall it have any
          duty to make any investigation in respect of or in any way be liable
          whatsoever for the registration, filing, protection or perfection of
          any security constituted by this Funding Deed of Charge or the other
          Funding Transaction Documents relating to the Funding Charged Property
          or the priority of the security thereby and shall not be liable for
          any failure, omission or defect in perfecting, protecting, procuring
          the registration of or further assuring the

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<PAGE>

          security created or purported to be created by or pursuant to this
          Funding Deed of Charge or other documents entered into in connection
          herewith.

     (g)  The Security Trustee shall not have any duty to make any investigation
          in respect of or in any way be liable whatsoever for 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 this Funding Deed or Charge or
          any other document.

     (h)  The Security Trustee shall be under no obligation to monitor or
          supervise and shall not have any duty to make any investigation in
          respect of or in any way be liable whatsoever for the performance or
          observance by Funding or any other person of the provisions of this
          Funding Deed of Charge or any other Funding Transaction Document and
          shall be entitled to assume that each person is properly performing
          and complying with its obligations.

     (i)  The Security Trustee shall not have any responsibility for or have any
          duty to make any investigation in respect of or in any way be liable
          whatsoever for 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 the Funding Charged Property.

     (j)  The Security Trustee shall not be liable or responsible for any loss,
          cost, damage, expense or inconvenience which may result from anything
          done or omitted to be done by it under this Funding Deed of Charge or
          under any of the other Funding Transaction Documents save where the
          same arises as a result of the Security Trustee's fraud, wilful
          default or gross negligence.

     (k)  The Security Trustee shall have no responsibility whatsoever to any
          Funding Secured Creditor as regards any deficiency which might arise
          because the Security Trustee is subject to any Tax in respect of the
          Funding Charged Property or any part thereof or any income therefrom
          or any proceeds thereof or is required by law to make any withholding
          or deduction from any payment to any Funding Secured Creditor.

     (l)  The Security Trustee will not be responsible or liable for any
          inadequacy or unfitness of any Funding Charged Property as security or
          any decline in value or any loss realised upon any disposition of the
          Funding Charged Property.

     (m)  The Security Trustee shall not be obliged to perfect the legal title
          to any mortgage in its name or any of the related security if, in its
          opinion, such perfection would or might result in the Security Trustee
          becoming liable to or incurring any obligation to Funding under a
          mortgage or any of the related security and/or in its opinion, there
          is or would be insufficient cash to discharge, in accordance with the
          provisions of this Funding Deed of Charge such liabilities or
          obligations as and when they arise.

     (n)  Notwithstanding the generality of the above, the Security Trustee
          shall not be responsible for the execution, legality, effectiveness,
          adequacy, genuineness, validity,

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<PAGE>

          enforceability or suitability of any of the Transaction Documents or
          any of the documents relating to the Mortgage Loans or Mortgages or
          other documents entered into in connection therewith or any security
          or the priority thereof constituted or purported to be constituted
          thereby or pursuant thereto nor shall it be responsible or liable to
          any person because of any invalidity of any provisions of such
          documents or the unenforceability thereof, whether arising from
          statute, law or decision of any court and (without prejudice to the
          generality of the foregoing) the Security Trustee shall not have any
          responsibility 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 Funding or
               any other person or entity who has at any time provided any
               security or support whether by way of guarantee, charge or
               otherwise in respect of any advance made to Funding;

          (ii) the title, ownership, value, sufficiency or existence of any
               Mortgaged Property;

          (iii) the registration, filing, protection or perfection of any
               Mortgage Loans or Mortgages or the priority of the security
               created thereby whether in respect of any initial advance or any
               subsequent advance or any other sums or liabilities;

          (iv) the scope or accuracy of any representation, warranties or
               statements made by or on behalf of Funding in any application for
               any advance or in any mortgage or charge or any document entered
               into in connection therewith;

          (v)  the performance or observance by Funding or any other person of
               any provisions of any Mortgage Loans or Mortgages or in any
               document entered into in connection therewith or the fulfilment
               or satisfaction of any conditions contained therein or relating
               thereto or as to the existence or occurrence at any time of any
               default, event of default or similar event contained therein or
               waiver or consent which has at any time been granted in relation
               to any of the foregoing;

          (vi) 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 Mortgage Loans or
               Mortgages;

          (vii) the title of the Seller or the Mortgages Trustee to Mortgage
               Loans or Mortgages;

          (viii) the suitability, adequacy or sufficiency of any Lending
               Criteria and any arrears and enforcement procedures operated by
               the Seller or compliance therewith or compliance with any
               applicable criteria for any Further

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<PAGE>

               Advances or the legality or recoverability or enforceability
               thereof or the priority of the security in relation thereto;

          (ix) the compliance of the provisions and contents of and the manner
               and formalities applicable to the execution of the Mortgage Loans
               or Mortgages and any documents connected therewith or the making
               of any advance intended to be secured thereby, with the relevant
               mortgage indemnity policies and with any applicable laws or
               regulations (including without prejudice to the generality of the
               foregoing, the Consumer Credit Act 1974);

          (x)  the failure by the Seller to obtain or comply with any licence,
               consent or other authority in connection with the origination,
               sale or purchase of any of the Mortgage Loans or Mortgages or the
               making of any advances in connection therewith 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 Mortgage
               Loans or Mortgages or other documents entered into in connection
               therewith;

          (xi) 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 Funding Transaction Documents or any other document;

          (xii) any accounts, books, records or files maintained by the Seller,
               the Administrator or any other person in respect of any of the
               Mortgage Loans or Mortgages; or

          (xiii) any other matter or thing relating to or in any way connected
               with any Mortgage Loans or Mortgages or any document entered into
               in connection therewith whether or not similar to the foregoing.

     (o)  The Security Trustee shall not be responsible for, nor shall it have
          any liability with respect to, any loss or theft of the Funding
          Charged Property and, without prejudice to any provisions relating to
          insurance under the Funding Transaction Documents, the Security
          Trustee shall not be under any obligation to insure any of the Funding
          Charged Property or any deeds or documents of title or other evidence
          in respect of the Security or to require any other person to maintain
          such insurance and the Security Trustee shall not be responsible for
          any loss, expense or liability which may be suffered as a result of
          the lack of or inadequacy of such insurance.

     (p)  The Security Trustee shall not be responsible for any liability
          occasioned to the Funding Charged Property however caused, whether by
          an act or omission of Funding or any other party to the Transaction
          Documents or any other person (including any bank, broker, depositary,
          warehouseman or other intermediary or any clearing system or operator
          thereof) or otherwise irrespective of whether the Funding Charged
          Property is held by or to the order of any such persons, unless such
          loss is caused by the fraud, wilful default or gross negligence of the
          Security Trustee.

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<PAGE>

     (q)  The Security Trustee shall not be responsible for the receipt or
          application by Funding of the proceeds of any Intercompany Loan or any
          Start-up Loan.

     (r)  The Security Trustee shall have full power to determine all questions
          and doubts arising in relation to any of the provisions of this
          Funding Deed of Charge and the other Funding Transaction Documents and
          every such determination, whether made upon a question actually raised
          or implied in the acts or proceedings of the Security Trustee, shall
          be conclusive and shall bind the Security Trustee and the Funding
          Secured Creditors.

     (s)  The Security Trustee may determine whether or not a default in the
          performance by Funding of any obligation under the provisions of this
          Funding Deed of Charge or any other Funding Transaction Document is
          capable of remedy and/or whether the same is materially prejudicial to
          the interests of the Funding Secured Creditors or any of them and if
          the Security Trustee shall certify that any such default is, in its
          opinion, not capable of remedy and/or materially prejudicial to the
          interests of the Funding Secured Creditors or any of them, such
          certificate shall be conclusive and binding upon the Funding Secured
          Creditors.

     (t)  The Security Trustee shall be entitled to assume for the purposes of
          exercising any power, trust, authority, duty or discretion under or in
          relation to these presents or any of the other Transaction Documents,
          that such exercise will not be materially prejudicial to the interests
          of the Noteholders if the Rating Agencies have confirmed in writing
          that the then current ratings of the Notes would not be adversely
          affected by such exercise.

     (u)  Unless provided otherwise in any Transaction Document, where an
          Intercompany Loan Event of Default or a Completion Event refers to
          materiality or like terminology, any determination of materiality or
          like terminology or the absence thereof will be in the opinion of
          Funding as certified to the Security Trustee, which certificate shall
          be conclusive evidence of the occurrence of (or absence of) such
          circumstances.

     (v)  The Security Trustee shall have no liability whatsoever for any loss,
          cost, damages or expenses directly or indirectly suffered or incurred
          by any person as a result of the delivery by the Security Trustee to
          Funding or any other party to the Transaction Documents of a
          certificate as to material prejudice or as to no material prejudice
          pursuant to the Conditions or any Transaction Document and any such
          certificate shall be binding on the Funding Secured Creditors.

     (w)  The Security Trustee may, in the conduct of its trust business,
          instead of acting personally, employ and pay an agent, whether or not
          a lawyer or other professional person, to transact or conduct, or
          concur in transacting or conducting, any business and to do or concur
          in doing all acts required to be done by the Security Trustee
          (including the receipt and payment of monies). The Security Trustee
          shall not be responsible for any misconduct or omission on the part of
          any person appointed by it or be bound to supervise the proceedings or
          acts of any such persons and shall not be

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<PAGE>

          responsible for any loss, costs, liability or expenses incurred by any
          misconduct or default on the part of any such person, provided that
          the Security Trustee has exercised reasonable care in selecting any
          such agent.

     (x)  Any trustee of this Funding Deed of Charge being a lawyer, accountant,
          broker or other person engaged in any profession or business shall be
          entitled to charge and be paid all usual professional and other
          charges for business transacted and acts done by him or his firm in
          connection with the trusts of this deed and the Funding Transaction
          Documents and also his charges in addition to disbursements for all
          other work and business done and all time spent by him or his firm in
          connection with matters arising in connection with this Funding Deed
          of Charge and the Funding Transaction Documents, including matters
          which might or should have been attended to in person by a trustee not
          being a lawyer, accountant, broker or other professional person.

     (y)  The Security Trustee may, in the execution of all or any of the
          trusts, powers, authorities and discretions vested in it by this
          Funding Deed of Charge or any of the other Funding Transaction
          Documents, act by responsible officers or a responsible officer for
          the time being of the Security Trustee. The Security Trustee may also,
          whenever it thinks expedient in the interests of the Funding Secured
          Creditors, whether by power of attorney or otherwise, delegate to any
          person or persons all or any of the trusts, rights, powers, duties,
          authorities and discretions vested in it by this Funding Deed of
          Charge or any of the other Funding Transaction Documents. Any such
          delegation may be made upon such terms and conditions and subject to
          such regulations (including power to sub-delegate) as the Security
          Trustee may think fit in the interests of the Funding Secured
          Creditors, provided that the Security Trustee shall have exercised
          reasonable care in the selection of such delegate and, where a power
          to sub-delegate has been given, shall oblige the delegate to exercise
          reasonable care in the selection of any sub-delegate. The Security
          Trustee shall not be bound to supervise the proceedings of, or be
          responsible for any loss, costs, liability or expenses incurred by any
          misconduct or default on the part of, such delegate or sub-delegate.
          The Security Trustee shall give prompt notice to Funding of the
          appointment of any delegate as aforesaid and shall procure that any
          delegate shall also give prompt notice of the appointment of any
          sub-delegate to Funding.

     (z)  Where it is necessary or desirable for any purpose in connection with
          this Funding Deed of Charge to convert any sum from one currency to
          another it shall (unless otherwise provided by this Funding Deed of
          Charge or required by law) be converted at such rate or rates in
          accordance with such method and as at such date for the determination
          of such rate of exchange, as may be specified by the Security Trustee
          in its absolute discretion but having regard to current rates of
          exchange if available and the Security Trustee shall not be liable for
          any loss occasioned by the said conversion and any rate, method and
          date so specified shall be binding on Funding and the Funding Secured
          Creditors.

     (aa) Any consent given by the Security Trustee for the purposes of this
          Funding Deed of Charge or any of the other Transaction Documents may
          be given on such terms and

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<PAGE>

          subject to such conditions (if any) as the Security Trustee thinks fit
          and may be given retrospectively.

     (bb) The Security Trustee shall not be liable for any error of judgment
          made in good faith by any officer or employee of the Security Trustee
          assigned by the Security Trustee to administer its corporate trust
          matters unless the Security Trustee was grossly negligent in
          ascertaining the pertinent facts.

     (cc) The Security Trustee shall not (unless required by law or ordered to
          do so by a court of competent jurisdiction) be required to disclose to
          any Funding Secured Creditor or other person any information made
          available to the Security Trustee by Funding or any other person in
          connection with the trusts of this Funding Deed of Charge or the
          Funding Transaction Documents and no Funding Secured Creditor or other
          person shall be entitled to take any action to obtain from the
          Security Trustee any such information.

     (dd) Notwithstanding anything else in this Funding Deed of Charge or the
          other Funding Transaction Documents, the Security Trustee may refrain
          from doing anything which would or might in its opinion be contrary to
          any law of any jurisdiction or any directive or regulation of any
          governmental agency or which would or might otherwise render it liable
          to any person and may do anything which is, in its opinion, necessary
          to comply with any such law, directive or regulation.

     (ee) The powers conferred by this Funding Deed of Charge upon the Security
          Trustee or any Receiver shall be in addition to and not in
          substitution for any powers which may from time to time be conferred
          on the Security Trustee or any such Receiver by statute or under
          common law.

     (ff) The Security Trustee has no duties or responsibilities except those
          expressly set out in this Funding Deed of Charge or in the Funding
          Transaction Documents.

     (gg) The Security Trustee shall not be responsible for the maintenance of
          the rating of the Notes.

16.4 NO FINANCIAL LIABILITY: Notwithstanding anything else herein contained, the
     Security Trustee may refrain from taking any action or exercising any
     right, power, authority or discretion vested in it under this Funding Deed
     of Charge, any other Transaction Document, any Funding Charged Property or
     any other agreement relating to the transactions herein or therein
     contemplated until it has been indemnified and/or secured to its
     satisfaction against and all liabilities which might be brought, made or
     conferred against or suffered, incurred or sustained by it as a result.
     Notwithstanding any other provision of this Funding Deed of Charge or of
     any other Transaction Document, nothing shall require the Security Trustee
     to risk its own funds or otherwise incur any financial liability in the
     performance of any of its duties or in the exercise of any of its rights or
     powers or otherwise in connection with this Funding Deed of Charge or any
     other Funding Transaction Document (including, without limitation, forming
     any opinion or employing any legal, financial or other adviser), if it
     shall believe that repayment of such funds or adequate indemnity against
     such risk or liability is not

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<PAGE>

     assured to it. Further, without prejudice to the right of indemnity by law
     given to trustees, Funding hereby covenants further, to reimburse, pay or
     discharge (on a full indemnity basis) on demand the Security Trustee and
     every attorney, receiver, manager, agent, delegate or other person
     appointed by it under this Funding Deed of Charge from and against all
     liabilities, losses, damages, costs, expenses, actions, proceedings, claims
     and demands (including without limitation legal fees and any applicable
     value added tax or similar tax) incurred by or made against it or him in
     the execution or purported execution of the trusts of this Funding Deed of
     Charge or of its or his powers or in respect of any matter or thing done or
     omitted in any way relating to this Funding Deed of Charge or any of the
     other Funding Transaction Documents except such as may arise from the gross
     negligence or wilful misconduct or fraud of any such indemnified person.

16.5     ASSUMPTION OF NO DEFAULT:

     (a)  The Security Trustee shall not be bound to ascertain whether any
          Intercompany Loan Event of Default or Potential Intercompany Loan
          Event of Default has happened and, until it shall have actual
          knowledge or express notice to the contrary, the Security Trustee
          shall be entitled to assume that no such Intercompany Loan Event of
          Default or Potential Intercompany Loan Event of Default has happened
          and that Funding is observing and performing all the obligations on
          its part contained in each Intercompany Loan Agreement and no event
          has happened as a consequence of which any Intercompany Loan may
          become repayable.

     (b)  The Security Trustee shall not be bound to ascertain whether any
          Completion Event or any failure by the Seller to comply with any of
          its obligations under the Mortgage Sale Agreement or any event which
          with the giving of notice or expiry of any grace period or
          certification as specified in respect of such Completion Event or
          Seller failure of its obligations would constitute the same has
          happened and, until it shall receive express notice to the contrary
          from any party to the Transaction Documents, the Security Trustee
          shall be entitled to assume that no such Completion Event or Seller
          failure of its obligations or such other event as described above has
          happened and that Funding, the Administrator or the Seller (as the
          case may be) is observing and performing all of their respective
          obligations contained in each of the Transaction Documents to which
          they are a party.

     (c)  The Security Trustee shall not be bound to ascertain whether any
          material breach of any of the representations and warranties referred
          to in Clause 8 of the Mortgage Sale Agreement or any event which with
          the giving of notice or expiry of any grace period or certification as
          specified in such representation and warranties would constitute the
          same has happened and, until it shall receive express notice to the
          contrary from any party to the Transaction Documents, the Security
          Trustee shall be entitled to assume that no such breach or such other
          event as described above has happened and that the Seller is observing
          and performing its obligations contained in the Mortgage Sale
          Agreement.

     (d)  The Security Trustee shall not be bound to ascertain whether any
          termination event under the Administration Agreement or any event
          which with the giving of notice or

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          expiry of any grace period or certification as specified in respect of
          such termination event would constitute the same has happened and,
          until it shall receive express notice to the contrary pursuant to
          Clause 19.5 of the Administration Agreement, the Security Trustee
          shall be entitled to assume that no such termination event under the
          Administration Agreement or such other event as described above has
          happened and that the Administrator is observing and performing all of
          its obligations contained in each of the Transaction Documents to
          which it is a party.

     (e)  The Security Trustee shall not be bound to ascertain whether any Cash
          Manager Termination Event or any event which with the giving of notice
          or expiry of any grace period or certification as specified in such
          Cash Manager Termination Event would constitute the same has happened
          and, until it shall receive express notice to the contrary pursuant to
          Clause 12.4 of the Cash Management Agreement, the Security Trustee
          shall be entitled to assume that no such Cash Manager Termination
          Event or such other event as described above has happened and that the
          Cash Manager is observing and performing its obligations contained in
          the Cash Management Agreement.

     (f)  The Security Trustee shall not be bound to ascertain whether any
          Termination Event under the Bank Account Agreement or the Funding
          (First Issuer) Bank Account Agreement or any event which with the
          giving of notice or expiry of any grace period or certification as
          specified in such Bank Account Agreement or such Funding (First
          Issuer) Bank Account Agreement, as applicable, would constitute the
          same has happened and, until it shall receive express notice to the
          contrary pursuant to Clause 8.3 of the Bank Account Agreement or the
          Funding (First Issuer) Bank Account Agreement, as applicable, the
          Security Trustee shall be entitled to assume that no such termination
          event under the Bank Account Agreement or the Funding (First Issuer)
          Bank Account Agreement or such other event as described above has
          happened and that the relevant Account Bank is observing and
          performing its obligations contained in the Bank Account Agreement or
          the Funding (First Issuer) Bank Account Agreement, as applicable.

     (g)  The Security Trustee shall not be bound to ascertain whether any
          Flexible Mortgages Loans or part thereof is unenforceable and/or does
          not fall within the first ranking charge by way of legal mortgage over
          the relevant Mortgaged Property has happened and, until it shall
          receive express notice to the contrary from any party to the
          Transaction Documents, the Security Trustee shall be entitled to
          assume that no such event has happened.

16.6 COMMERCIAL TRANSACTIONS: The Security Trustee shall not, and no director,
     officer or employee of any corporation being a Security Trustee hereof
     shall by reason of the fiduciary position of the Security Trustee be in any
     way precluded from making any commercial contracts or entering into any
     commercial transactions with any party to the Funding Transaction
     Documents, whether directly or through any subsidiary or associated
     company, or from accepting the trusteeship of any other debenture stock,
     debentures or securities of any party to the Funding Transaction Documents,
     and without prejudice to the generality of these

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     provisions, it is expressly declared that such contracts and transactions
     include any contract or transaction in relation to the placing,
     underwriting, purchasing, subscribing for or dealing with or lending monies
     upon or making payments in respect of or any stock, shares, debenture
     stock, debentures or other securities of any party to the Funding
     Transaction Documents or any contract of banking or insurance of any party
     to the Funding Transaction Documents and neither the Security Trustee nor
     any such director, officer or employee shall be accountable to any Funding
     Secured Creditor or to any party to the Funding Transaction Documents for
     any profit, fees, commissions, interest, discounts or share of brokerage
     earned, arising or resulting from any such contracts or transactions, and
     the Security Trustee and any such director, officer or employee shall also
     be at liberty to retain the same without accounting therefor.

16.7 TRUSTEE LIABLE FOR NEGLIGENCE: None of the provisions of this Funding Deed
     of Charge shall, in any case in which the Security Trustee has failed to
     show the degree of care and diligence required of it as security trustee
     under this Funding Deed of Charge, having regard to the provisions of this
     Funding Deed of Charge conferring on the Security Trustee any powers,
     authorities or discretions, relieve or indemnify the Security Trustee
     against any liabilities which by virtue of any rule of law would otherwise
     attach to it in respect of any gross negligence, default, breach of duty or
     breach of trust of which it may be guilty in relation to its duties under
     this Funding Deed of Charge.

16.8 DELEGATION OF CERTAIN FUNCTIONS TO AUTHORISED THIRD PARTY: Without
     prejudice to the provisions of this Funding Deed of Charge, references to
     the Security Trustee taking action in connection with any duty of the
     Seller or Administrator under any Transaction Document shall be read
     subject to clause 25 and Schedule 4 of the Administration Agreement.

16.9 SECURITY TRUSTEE TO ACT ON NOTE TRUSTEE DIRECTION: Notwithstanding any
     other provision in any other Funding Transaction Document, the Funding
     Secured Creditors and Funding acknowledge that when exercising its opinion
     and/or when exercising the rights, benefits, power, trusts, authorities,
     directions and obligations expressed to be granted by this Funding Deed of
     Charge, the other Funding Transaction Documents or by operation of law, the
     Security Trustee shall (by virtue of the assignment by way of security by
     each Issuer of its right, title, interest and benefit in its related
     Intercompany Loan to the Note Trustee pursuant to an Issuer Deed of Charge)
     act only at the request or direction of the Note Trustee and shall not be
     responsible for any loss, costs, damages, expenses or inconveniences that
     may result from the exercise or non-exercise thereof PROVIDED THAT:

     (a)  if there is a conflict in directions pursuant to the resolutions of
          holders of Notes issued by more than one Issuer, the Note Trustee
          shall have regard only to the directions of the Issuer or Issuers that
          has or have the highest ranking class of Notes outstanding (meaning
          the Class A Notes for so long as there are Class A Notes outstanding
          and thereafter the Class B Notes so long as there are no Class A Notes
          outstanding, and thereafter the Class C Notes so long as there are
          neither Class A Notes nor Class B Notes outstanding) (the "PRINCIPAL
          DIRECTIONS"); and

     (b)  if there is any conflict between the Principal Directions, due to two
          Issuers having Notes of the same class as their highest ranking class,
          the Note Trustee shall have

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          regard only to the Principal Directions representing the greatest
          aggregate principal amount outstanding of the highest ranking class of
          Notes,

         AND PROVIDED FURTHER THAT

          (i)  the Security Trustee shall not be bound to act unless it is first
               indemnified and/or secured 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) at any time when the Intercompany Loans have been repaid in full
               and/or there is no further claim outstanding under any
               Intercompany Loan Agreement, this Clause 16.9 (Security Trustee
               to act on Note Trustee's Discretion) shall no longer apply and
               the Security Trustee shall no longer be required to act at the
               request or direction of the Note Trustee but instead shall act at
               the request or direction of the Funding Secured Creditor which
               ranks next highest in the Funding Post-Enforcement Priority of
               Payments.

17.  MODIFICATION AND WAIVER

17.1 MODIFICATIONS TO TRANSACTION DOCUMENTS: Subject as expressly provided
     otherwise in any Transaction Document, the Security Trustee (at the
     direction of the Note Trustee) may from time to time and at any time
     without any consent or sanction of the Funding Secured Creditors concur
     with any person in making or sanctioning any modification or amendment:

     (a)  to any of the Transaction Documents which in the opinion of the
          Security Trustee it may be expedient to make, provided that the
          Security Trustee is of the opinion that such modification will not be
          materially prejudicial to the interests of the Noteholders;

     (b)  to any of the Transaction Documents which in the Security Trustee's
          opinion is made to correct a manifest error or is of a formal, minor
          or technical nature; or

     (c)  to any of the Transaction Documents which it may be necessary to make
          or which are required by the Rating Agencies in respect of any New
          Issuer or any other person who has executed a Deed of Accession
          pursuant to Clause 3 (Funding Security) hereto or Clause 2.2 (New
          Intercompany Loan Agreement) of the Intercompany Loan Terms and
          Conditions.

     Any such modification or amendment shall be binding on Funding and the
     Funding Secured Creditors and, unless the Security Trustee otherwise
     agrees, notice thereof shall be given by Funding to the Funding Secured
     Creditors as soon as practicable thereafter. Each of the Funding Secured
     Creditors agrees from time to time to do and perform such other and further
     acts and execute and deliver any and all such other instruments as may be
     required to carry out and effect the intent and purpose of this Clause 17.1
     (Modifications to Transaction Documents).

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17.2 AUTHORISATION OR WAIVER OF BREACH: Subject to Clause 14.10 (Acceleration)
     of the Intercompany Loan Terms and Conditions, the Security Trustee (at the
     direction of the Note Trustee) may, without the consent of the Funding
     Secured Creditors, without prejudice to its right in respect of any further
     or other breach, from time to time and at any time, but only if and in so
     far as in its opinion the interests of the Noteholders will not be
     materially prejudiced thereby authorise or waive, on such terms and
     conditions (if any) as shall seem expedient to it, any proposed or actual
     breach of any of the covenants or provisions contained in or arising
     pursuant to any of the Transaction Documents. Any such authorisation or
     waiver shall be binding on the Funding Secured Creditors and, unless the
     Security Trustee otherwise agrees, notice thereof shall be given by Funding
     to the Funding Secured Creditors as soon as practicable thereafter.

17.3 AMENDMENTS AND WAIVER: Except as expressly provided in the preceding
     provisions of this Clause 17 or any other provision of this Funding Deed of
     Charge, no amendment or waiver of any provision of this Funding Deed of
     Charge nor consent to any departure by any of the parties therefrom shall
     in any event be effective unless the same shall be in writing and signed by
     each of the parties hereto. In the case of a waiver or consent, such waiver
     or consent shall be effective only in the specific instance and as against
     the party or parties giving it for the specific purpose for which it is
     given.

18.  REMUNERATION OF THE SECURITY TRUSTEE

18.1 REMUNERATION: Funding shall (subject as hereinafter provided) pay to the
     Security Trustee an annual fee of such amount as shall from time to time be
     agreed by Funding and the Security Trustee. Such remuneration shall be
     payable on Payment Dates subject to and in accordance with the Funding
     Pre-Enforcement Revenue Priority of Payments or, as the case may be, the
     Funding Post-Enforcement Priority of Payments. Such remuneration shall
     accrue from day to day and be payable up to and including the date when all
     of the Funding Secured Obligations have been paid or discharged and the
     Security Trustee has released, reassigned and/or discharged the Funding
     Charged Property as provided in Clause 4 (Release of Funding Charged
     Property).

18.2 ADDITIONAL REMUNERATION: In the event of the occurrence of an Intercompany
     Loan Event of Default or a Potential Intercompany Loan Event of Default or
     the Security Trustee giving an Intercompany Loan Enforcement Notice or the
     Security Trustee using its reasonable endeavours to appoint and maintain an
     Authorised Third Party or considering it expedient or necessary or being
     requested by Funding to undertake duties which the Security Trustee and
     Funding agree to be of an exceptional nature or otherwise outside the scope
     of the normal duties of the Security Trustee under this Funding Deed of
     Charge, Funding shall pay to the Security Trustee such additional
     remuneration as shall be agreed between them. In the event of the Security
     Trustee failing to agree upon whether such duties shall be of an
     exceptional nature or otherwise outside the scope of the normal duties of
     the Security Trustee under this Funding Deed of Charge, or upon such
     additional remuneration, then such matter shall be determined by a merchant
     bank (acting as an expert and not as an arbitrator) selected by the
     Security Trustee and approved by Funding or, failing such approval,
     nominated (on the application of the Security Trustee) by the President for
     the time being of the Law Society of

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<PAGE>

     England and Wales (the expense involved in such nomination and the fees of
     such merchant bank being payable by Funding) and the determination of any
     such merchant bank shall be final and binding upon the Security Trustee and
     Funding.

18.3 EXPENSES: Funding shall on written request, pay all other costs, charges
     and expenses (including legal and travelling expenses and the cost of using
     its reasonable endeavours to appoint and maintain an Authorised Third
     Party) (against production of invoices) which the Security Trustee or any
     persons appointed by it to whom any trust, power, authority or discretion
     may be delegated by it in relation to this Funding Deed of Charge may
     properly incur including but not limited to:

     (a)  the negotiation, preparation and execution of, the exercise of its
          powers and the performance of its duties under this Funding Deed of
          Charge and any other Funding Transaction Documents to which the
          Security Trustee is a party;

     (b)  the use of its reasonable endeavours to appoint and maintain an
          Authorised Third Party pursuant to Schedule 4 of the Administration
          Agreement;

     (c)  the use of its reasonable endeavours to appoint a substitute Cash
          Manager pursuant to the Cash Management Agreement;

     (d)  the use of its reasonable endeavours to appoint a substitute
          Administrator pursuant to the Administration Agreement;

     (e)  the preservation or attempted preservation of any of the charges
          contained in or granted pursuant to this Funding Deed of Charge or any
          of the Funding Charged Property;

     (f)  any other action taken by or on behalf of the Security Trustee with a
          view to the recovery of the Funding Secured Obligations or for
          enforcing the security constituted in this Funding Deed of Charge; and

     (g)  legal and travelling expenses or documentary expenses paid by the
          Security Trustee in connection with the Funding Charged Property.

18.4 INDEMNITY: Funding shall indemnify the Security Trustee and any Receiver in
     respect of all proceedings, claims, actions, demands, losses, costs,
     charges, expenses and liabilities to which it (or any person appointed by
     it to whom any trust, power, authority or discretion may be delegated by it
     in the execution or purported execution of the trusts, powers, authorities
     or discretions vested in it by or pursuant to this Funding Deed of Charge
     and any of the other Funding Transaction Documents to which the Security
     Trustee is a party) may be or become liable or which may be properly
     incurred by it (or any such person as aforesaid) in the execution or
     purported execution of any of its trusts, powers, authorities and
     discretions hereunder or its functions under any such appointment or in
     respect of any other matter or thing done or omitted in any way relating to
     this Funding Deed of Charge and any of the other Funding Transaction
     Documents to which the Security Trustee is a party save where the same
     arises as a result of the fraud, gross negligence or wilful default by the
     Security Trustee or, as

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     the case may be, such Receiver or any of their officers or employees or the
     breach by the Security Trustee of the terms of this Funding Deed of Charge.

18.5 STAMP DUTIES: Funding shall, to the extent permitted by applicable United
     Kingdom law, pay all stamp duties and other duties or taxes of a similar
     nature, including for the avoidance of doubt any duty levied under the
     Stamp Act 1891 as amended and supplemented, (if any) payable on or arising
     out of or in consequence of:

     (a)  the creation of the security constituted by or pursuant to this
          Funding Deed of Charge; and

     (b)  the execution and delivery of this Funding Deed of Charge and
          documents executed pursuant hereto and the other Funding Transaction
          Documents (except where the obligation to pay all stamp duties and
          other duties or taxes of a similar nature is expressed to be the
          obligation of a person other than Funding).

18.6 VAT: All sums payable by Funding under this Funding Deed of Charge are
     deemed to be exclusive of any amount in respect of VAT. If, pursuant to any
     provision of this Funding Deed of Charge, the Security Trustee or the
     Receiver of Funding makes any taxable or deemed taxable supply to Funding,
     then Funding shall pay to the Security Trustee or the Receiver of Funding
     (as the case may be) (in addition to the consideration for the supply) an
     amount equal to the VAT charged in respect of such taxable or deemed
     taxable supply against production of a valid VAT invoice.

18.7 INTEREST: Subject as provided in Clause 18.8 (Payment), all sums payable by
     Funding under this Clause 18 (Remuneration of the Security Trustee) shall
     be payable on demand or, in the case of any remuneration payable under
     Clause 18.1 (Remuneration) on the due date specified therein and shall
     carry interest at the rate per annum, which is one per cent. per annum
     above the base rate from time to time of the National Westminster Bank Plc
     from the date on which they were paid, charged or incurred by the Security
     Trustee or any Receiver or, in the case of remuneration, the due date for
     payment thereof, to the date of actual payment.

18.8 PAYMENT: Notwithstanding the other provisions of this Funding Deed of
     Charge, any amount owing by Funding pursuant to this Clause 18
     (Remuneration of the Security Trustee) shall only be payable by Funding
     subject to and in accordance with the Funding Pre-Enforcement Revenue
     Priority of Payments or, as the case may be, the Funding Post-Enforcement
     Priority of Payments.

18.9 SURVIVAL: Unless otherwise specifically stated in any discharge of this
     Funding Deed of Charge, the provisions of this Clause 18 (Remuneration of
     the Security Trustee) shall continue in full force and effect
     notwithstanding such discharge.

18.10 JERSEY LAW WAIVERS:

     (a)  Any right which at any time Funding has under the existing or future
          laws of Jersey whether by virtue of the droit de discussion or
          otherwise to require that recourse be had to the assets of any other
          person before any claim is enforced against Funding in

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     respect of the obligations hereby assumed by Funding is hereby abandoned
     and waived.

     (b)  Funding undertakes that if at any time any person indemnified sues
          Funding in respect of any such obligations and the person in respect
          of whose obligations the indemnity is given is not sued also, Funding
          shall not claim that such person be made a party to the proceedings
          and Funding agrees to be bound by this indemnity whether or not it is
          made a party to legal proceedings for the recovery of the amount due
          or owing to the person indemnified, as aforesaid, by the person in
          respect of whose obligations the indemnity is given and whether the
          formalities required by any law of Jersey whether existing or future
          in regard to the rights or obligations of securities shall or shall
          not have been observed.

     (c)  Any right which Funding may have under the existing or future laws of
          Jersey whether by virtue of the droit de division or otherwise to
          require that any liability under this indemnity be divided or
          apportioned with any other person or reduced in any manner whatsoever
          is hereby abandoned and waived.

19.  APPOINTMENT, REMOVAL AND RETIREMENT OF SECURITY TRUSTEE

19.1 POWER OF FUNDING: The power of appointing a new Security Trustee and
     removing the Security Trustee or any new Security Trustee shall be vested
     in Funding but such appointment or removal must be approved by the Note
     Trustee, after consultation with each of the Funding Secured Creditors
     (such approval not to be unreasonably withheld or delayed). A trust
     corporation may be appointed sole trustee hereof but subject thereto there
     shall be at least two trustees hereof, one at least of which shall be a
     trust corporation. Any appointment of a new Security Trustee and any
     retirement of an existing Security Trustee hereof shall as soon as
     practicable thereafter be notified by Funding to the Funding Secured
     Creditors.

19.2 U.S. INVESTMENT COMPANY ACT: Any new Security Trustee must (i) meet the
     requirements of section 26(a)(1) of the U.S. Investment Company Act of
     1940; (ii) not be an affiliate (as defined in Rule 405 of the U.S.
     Securities Act of 1933, as amended) of any relevant Issuer or of any person
     involved in the organisation or operation of any relevant Issuer; (iii) not
     offer or provide credit or credit enhancement to any relevant Issuer; and
     (iv) execute an agreement or instrument concerning the Notes containing
     provisions to the effect set forth in section 26(a)(3) of the U.S.
     Investment Company Act of 1940.

19.3 POWERS OF SECURITY TRUSTEE TO APPOINT: Notwithstanding the provisions of
     Clause 19.1 (Power of Funding), the Security Trustee may (as attorney for
     Funding) upon giving prior notice to Funding but without the consent of
     Funding or the Funding Secured Creditors appoint any person established or
     resident in any jurisdiction (whether a trust corporation or not) to act
     either as a separate trustee or as a co-trustee jointly with the Security
     Trustee:

     (a)  if the Security Trustee considers such appointment to be in the
          interests of the Funding Secured Creditors; or

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     (b)  for the purposes of conforming to any legal requirement, restriction
          or condition in any jurisdiction in which any particular act or acts
          are to be performed or any Funding Charged Property is or is to be
          located; or

     (c)  for the purposes of obtaining a judgment in any jurisdiction or the
          enforcement in any jurisdiction either of a judgment already obtained
          or of the provisions of this Funding Deed of Charge or any of the
          other Funding Transaction Documents to which the Security Trustee is a
          party or obligations arising pursuant thereto or of any of the
          security constituted by or pursuant to this Funding Deed of Charge.

     Funding hereby irrevocably appoints the Security Trustee to be its attorney
     in its name and on its behalf to execute any such instrument of
     appointment. Such a person shall (subject always to the provisions of this
     Funding Deed of Charge and any other Funding Transaction Document to which
     the Security Trustee is a party) have such trusts, powers, authorities and
     discretions (not exceeding those conferred on the Security Trustee by this
     Funding Deed of Charge or any of the other Funding Transaction Documents to
     which the Security Trustee is a party) and such duties and obligations as
     shall be conferred or imposed on it by the instrument of appointment. The
     Security Trustee shall have power in like manner to remove any such person.
     Such proper remuneration as the Security Trustee may pay to any such
     person, together with any attributable costs, charges and expenses incurred
     by it in performing its function as such separate trustee or co-trustee,
     shall for the purposes of this Funding Deed of Charge be treated as costs,
     charges and expenses incurred by the Security Trustee.

19.4 MULTIPLE TRUSTEES: Whenever there shall be more than two trustees hereof,
     the majority of such trustees shall (provided such majority includes a
     trust corporation) be competent to execute and exercise all the trusts,
     powers, authorities and discretions vested by this Funding Deed of Charge
     and any of the other Funding Transaction Documents in the Security Trustee
     generally.

19.5 RETIREMENT OF SECURITY TRUSTEE: Subject as provided in Clause 19.6
     (Retirement or Removal not Effective), any Security Trustee for the time
     being of this Funding Deed of Charge may retire at any time upon giving not
     less than three calendar months' prior notice in writing to Funding without
     assigning any reason therefor and without being responsible for any costs
     resulting from such retirement.

19.6 RETIREMENT OR REMOVAL NOT EFFECTIVE: The retirement or removal of any
     Security Trustee shall not become effective unless (1) there remains at
     least one trustee hereof being a trust corporation in office upon such
     retirement or removal and (2) there remains at least one trustee of each
     Issuer Trust Deed and Issuer Deed of Charge being the same trust
     corporation. Funding covenants that, in the event of a trustee (being a
     sole trustee or the only trust corporation) giving notice under Clause 19.5
     (Retirement of Security Trustee) or being removed as referred to in Clause
     19.1 (Power of Funding) it shall use its best endeavours to procure a new
     Security Trustee of this Deed (being a trust corporation) to be appointed
     as soon as reasonably practicable thereafter (for the avoidance of doubt,
     in the same terms as this Funding Deed of Charge). If within 60 days of
     having given notice of its intention to retire, Funding has failed to
     appoint a replacement Security Trustee, the outgoing Security Trustee will
     be entitled to appoint its successor (provided that the Rating Agencies
     confirm that the

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     then current ratings of the Notes shall not be either downgraded, reviewed
     or withdrawn as a result of such appointment).

19.7 SECURITY TRUSTEE AND NOTE TRUSTEE: If the Security Trustee retires or is
     removed in accordance with the provisions of this Clause 19 (Appointment,
     Removal and Retirement of Security Trustee) then the Note Trustee shall
     retire at the same time in accordance with the provisions of the First
     Issuer Trust Deed and each other Issuer Trust Deed. If the Note Trustee
     retires or is removed in accordance with the provisions of the First Issuer
     Trust Deed and each other Issuer Trust Deed, then the Security Trustee
     shall retire at the same time in accordance with the provisions of this
     Clause 19 (Appointment, Removal and Retirement of Security Trustee). In
     either case the successor Security Trustee and the successor Note Trustee
     shall be the same person or persons.

19.8 MERGER: Any corporation into which the Security Trustee may be merged or
     converted or with which it may be consolidated, or any corporation
     resulting from any merger, conversion or consolidation to which the
     Security Trustee shall be a party, or any corporation succeeding to all or
     substantially all the corporate trust business of the Security Trustee,
     shall be the successor of the Security Trustee hereunder, provided such
     corporation shall be otherwise qualified and eligible under this Clause,
     without the execution or filing of any paper or any further act on the part
     of any of the parties hereto.

20.  MISCELLANEOUS PROVISIONS

20.1 EVIDENCE OF INDEBTEDNESS: In any action, proceedings or claim relating to
     this Funding Deed of Charge or the charges contained in this Funding Deed
     of Charge, a statement as to any amount due to any Funding Secured Creditor
     or of the Funding Secured Obligations or any part thereof or a statement of
     any amounts which have been notified to the Security Trustee as being
     amounts due to any Funding Secured Creditor which is certified as being
     correct by an officer of the Security Trustee or an officer of the relevant
     Funding Secured Creditor shall, save in the case of manifest error, be
     conclusive evidence that such amount is in fact due and payable.

20.2 LIABILITY: All the liabilities and obligations of Funding under or by
     virtue of this Funding Deed of Charge shall not be impaired by:

     (a)  any failure of this Funding Deed of Charge to be legal, valid, binding
          and enforceable as regards Funding whether as a result of a lack of
          corporate powers or of directors' authority, defective execution or
          for any other reason whatsoever;

     (b)  any giving of time, forbearance, indulgence or waiver as regards
          Funding;

     (c)  a discharge or release of Funding; or

     (d)  any other matter or event whatsoever whether similar to the foregoing
          or not which might have the effect of impairing all or any of its
          liabilities or obligations except proper and valid payment or
          discharge of all Funding Secured Obligations and amounts whatsoever
          which this Funding Deed of Charge provides are to be paid by

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          Funding or an absolute discharge or release of Funding signed by the
          Funding Secured Creditors and the Security Trustee.

20.3 FUNDING SECURED CREDITORS: Each Funding Secured Creditor shall be bound by
     the provisions of this Funding Deed of Charge as if it contained covenants
     by each Funding Secured Creditor in favour of the Security Trustee and
     every other Funding Secured Creditor to observe and be bound by all the
     provisions of this Funding Deed expressed to apply to Funding Secured
     Creditors.

21.  RIGHTS CUMULATIVE

     The respective rights of the Security Trustee, the Note Trustee, the
     Funding Secured Creditors and any Receiver to this Funding Deed of Charge
     are cumulative and may be exercised as often as each considers appropriate
     and are in addition to their respective rights under the general law. No
     failure on the part of the Security Trustee, the Note Trustee, the Funding
     Secured Creditors or any Receiver to exercise, and no delay in exercising,
     any right hereunder shall operate as a waiver thereof, nor shall any single
     or partial exercise of any such right preclude any other or further
     exercise thereof or the exercise of any other right. The remedies in this
     Deed are cumulative and not exclusive of any remedies provided by law.

22.  ASSIGNMENT

     None of the Funding Secured Creditors may assign, encumber or transfer all
     or any part of its rights or benefits and/or transfer its obligations under
     this Funding Deed of Charge without the prior written consent of the
     Security Trustee, save that each relevant Issuer may assign its rights
     under this Funding Deed of Charge without such consent to the Note Trustee
     under the First Issuer Deed of Charge or the relevant Issuer Deed of Charge
     applicable to such New Issuer, as the case may be.

23.  NON PETITION COVENANT; CORPORATE OBLIGATIONS

23.1 Each of the parties hereto hereby agrees that it shall not institute
     against Funding, the Mortgages Trustee or any Issuer any winding-up,
     administration, insolvency or similar proceedings in any jurisdiction for
     so long as any sum is outstanding under any Intercompany Loan Agreement of
     any Issuer or for two years plus one day since the last day on which any
     such sum was outstanding provided that the Security Trustee may prove or
     lodge a claim in the event of a liquidation initiated by any other person.

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

                                       52

<PAGE>

     breaches by such person of any of such obligations, covenants or
     agreements, either under any applicable law or by statute or constitution,
     of every such shareholder, officer, agent or director is hereby expressly
     waived by each person expressed to be a party hereto as a condition of and
     consideration for the execution of this Funding Deed of Charge.

24.  NOTICES

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

     (a)  in the case of Funding, to Granite Finance Funding Limited situated at
          4th Floor, 35 New Bridge Street, Blackfriars, London EC4V 6BW
          (facsimile number 020 7332 6199) for the attention of The Company
          Secretary with a copy to Northern Rock plc, Northern Rock House,
          Gosforth, Newcastle upon Tyne NE3 4PL (facsimile number 0191 213 2203)
          for the attention of the Group Secretary;

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

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

     (d)  in the case of the First Issuer, to Granite Mortgages 01-1 PLC
          situated at Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile
          number 020 7606 0643) for the attention of The Company Secretary with
          a copy to Northern Rock plc, Northern Rock House, Gosforth, Newcastle
          upon Tyne NE3 4PL (facsimile number 0191 213 2203) for the attention
          of the Group Secretary;

     (e)  in the case of the Mortgages Trustee, to Granite Finance Trustees
          Limited situated at 22 Grenville Street, St. Helier, Jersey JE4 8PX,
          Channel Islands, (facsimile number 01534 609333) for the attention of
          The Company Secretary with a copy to Northern Rock plc, Northern Rock
          House, Gosforth, Newcastle upon Tyne NE3 4PL (facsimile number 0191
          213 2203) for the attention of the Group Secretary;

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

     (g)  in the case of the Account Bank, to Lloyds TSB Bank plc situated at
          City Office, Bailey Drive, Gillingham Business Park, Kent ME8 0LS
          (facsimile number 0207 775 3642) for the attention of Jason Eperon;

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<PAGE>

     (h)  in the case of the Funding GIC Provider, to Lloyds TSB Bank plc
          situated at 25 Monument Street, London EC3R 8BQ (facsimile number 0207
          623 2338) for the attention of Treasury Division (Graham Sparry);

     (i)  in the case of the Start-Up Loan Provider, to Northern Rock plc
          situated at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
          (facsimile number 0191 213 2203) for the attention of the Group
          Secretary;

     (j)  in the case of the Corporate Services Provider, to Mourant & Co.
          Capital (SPV) Limited situated at 4th Floor, 35 New Bridge Street,
          Blackfriars, London EC4V 6BW (facsimile number 020 7332 6199) for the
          attention of the Company Secretary;

     (k)  in the case of Moody's, to Moody's Investor Services situated at 1st
          Floor, 2 Minster Court, Mincing Lane, London EC3R 7XB (facsimile
          number 020 7772 5400) for the attention of David Harrison, Asset
          Backed Finance;

     (l)  in the case of S&P, to Standard & Poor's situated at Garden House, 18
          Finsbury Circus, London EC2M 7NJ (facsimile number 020 7826 3598) for
          the attention of Heather Dyke; and

     (m)  in the case of Fitch, to Fitch Ratings Limited situated at Eldon
          House, 2 Eldon Street, London EC2M 7UA (facsimile number:020 7417
          6262) for the attention of European Structured Finance Surveillance,

     or to such other address or facsimile number or for the attention of such
     other person or entity as may from time to time be notified by any party to
     the others by fifteen days prior written notice in accordance with the
     provisions of this Clause 24.

25.  THIRD PARTY RIGHTS

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

26.  EXECUTION IN COUNTERPARTS; SEVERABILITY

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

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

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<PAGE>

27.  GOVERNING LAW AND SUBMISSION TO JURISDICTION

27.1 GOVERNING LAW: This Funding Deed of Charge is governed by, and shall be
     construed in accordance with, English law save that those parts of this
     Funding Deed of Charge concerned with the creation, subsistence or
     enforcement of the Jersey Security Interests shall be governed by and in
     accordance with Jersey law.

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

27.3 PROCESS AGENT: The Mortgages Trustee irrevocably and unconditionally
     appoints Mourant & Co. Capital (SPV) Limited at Fourth Floor, New Bridge
     Street, Blackfriars, London EC4V 6BW or otherwise at its registered office
     for the time being as its agent for service of process in England in
     respect of any proceedings in respect of this Funding Deed of Charge and
     undertakes that in the event of Mourant & Co. Capital (SPV) Limited ceasing
     so to act it will appoint another person with a registered office in London
     as its agent for service of process.

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

IN WITNESS of which this Funding Deed of Charge has been executed by the parties
hereto as a deed which has been delivered on the date first appearing on page
one.

                                       55

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                                   SCHEDULE 1

                       FORM OF SECURITY POWER OF ATTORNEY

THIS POWER OF ATTORNEY is made on 26 March 2001 by Granite Finance Funding
Limited. (registered number 79308) a private limited liability company
incorporated under the laws of Jersey whose registered office is at 22 Grenville
Street, St. Helier, Jersey JE4 8PX, Channel Islands (the "PRINCIPAL").

WHEREAS

(1)  By virtue of a Funding Deed of Charge dated 26 March 2001 between Granite
     Finance Funding Limited, Granite Mortgages 01-1 plc, the Security Trustee,
     the Mortgages Trustee, the Cash Manager, the Account Bank, the Funding GIC
     Provider, the Corporate Services Provider, the Start-Up Loan Provider (as
     amended and supplemented from time to time, the "FUNDING DEED OF CHARGE"),
     provision was made for the execution by the Principal of this Power of
     Attorney.

(2)  Words and phrases in this Power of Attorney shall (save where expressed to
     the contrary) have the same meanings respectively as the words and phrases
     in the Funding Deed of Charge.

NOW THIS POWER OF ATTORNEY WITNESSETH

1.   The Principal hereby irrevocably (within the meaning of Section 4 of the
     Powers of Attorney Act 1971) and by way of security for the payment and
     performance of the Funding Secured Obligations and the covenants,
     conditions, obligations and undertakings on the part of the Principal
     contained in the Funding Deed of Charge and the other Funding Transaction
     Documents to which the Principal is a party from time to time appoints The
     Bank of New York and any other person or persons for the time being the
     Security Trustee or Security Trustees of and under the Funding Deed of
     Charge (the "ATTORNEY") and each and every person to whom the Security
     Trustee shall from time to time have delegated the exercise of the power of
     attorney conferred by this Power of Attorney (each a "DELEGATE") and any
     receiver including any administrative receiver and any manager (the
     "RECEIVER") and/or administrator (the "ADMINISTRATOR") appointed from time
     to time by the Attorney or on its behalf its true and lawful attorney for
     and in the Principal's name or otherwise jointly and severally to sign,
     seal, execute, deliver, perfect and do any assurance, act, matter or thing
     which the Attorney, Delegate, Receiver or Administrator considers in each
     case to be necessary for the protection or preservation of the Attorney's
     and the Funding Secured Creditors' interests and rights (as described in
     the Funding Deed of Charge) in and to the Funding Charged Property or which
     ought to be done by the Principal under the covenants, undertakings and
     provisions contained in the Funding Deed of Charge and the other Funding
     Transaction Documents to which the Principal is a party from time to time
     and generally to in its name and on its behalf to exercise all or any of
     the powers, authorities or discretions conferred by or pursuant to the
     Funding Deed of Charge on the Security Trustee and/or any Receiver whether
     on or at any time after the security has become enforceable in accordance
     with Claus 7.2 (Enforceable) of the Funding Deed of Charge or in any other
     circumstances

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<PAGE>

     where the Attorney has become entitled to take any of the steps referred to
     in the Funding Deed of Charge including (without limitation) any or all of
     the following:

     (a)  to do every act or thing which the Attorney, Delegate, Receiver or
          Administrator may deem to be necessary, proper or expedient for
          getting in any of the Funding Charged Property and/or fully and
          effectively vesting, transferring or assigning the Funding Charged
          Property or any part thereof and/or the Principal's estate, right,
          title, benefit and/or interest therein or thereto in or to the
          Attorney and its successors in title or other person or persons
          entitled to the benefit thereof or for carrying into effect any other
          dealing with the Funding Charged Property whatsoever permitted under
          the Funding Deed of Charge in the same manner and as fully and
          effectively as the Principal could have done;

     (b)  the power by writing under its hand by an officer of the Attorney
          (including every Receiver appointed under the Funding Deed of Charge)
          from time to time to appoint a substitute attorney (each a
          "SUBSTITUTE") who shall have power to act on behalf of the Principal
          as if that Substitute shall have been originally appointed Attorney by
          this Power of Attorney and/or to revoke any such appointment at any
          time without assigning any reason therefor.

2.   In favour of the Attorney, any Delegate, any Receiver and/or Administrator
     and/or Substitute, or a person dealing with any of them and the successors
     and assigns of such a person, all acts properly done and documents executed
     or signed by the Attorney, a Delegate, a Receiver, an Administrator or a
     Substitute in the purported exercise of any power conferred by this Power
     of Attorney shall for all purposes be valid and binding on the Principal
     and its successors and assigns.

3.   The Principal irrevocably and unconditionally undertakes to indemnify the
     Attorney and each Delegate, Receiver and/or Administrator and/or Substitute
     appointed from time to time by the Attorney and their respective estates
     (each an "INDEMNIFIED PARTY") against all actions, proceedings, claims,
     costs, expenses and liabilities of every description arising from the
     exercise, or the purported exercise, of any of the powers conferred by this
     Power of Attorney, save where the same arises as the result of the fraud,
     negligence or wilful default of the relevant Indemnified Party or its
     officers or employees.

4.   The provisions of Clause 3 (Funding Security) shall continue in force after
     the revocation or termination, howsoever arising, of this Power of
     Attorney.

5.   The laws of England and Wales shall apply to this Power of Attorney and the
     interpretation thereof and to all acts of the Attorney and each Delegate,
     Receiver and/or Administrator and/or Substitute carried out or purported to
     be carried out under the terms hereof except that in relation to any action
     taken by the Attorney, each Delegate, Receiver and/or Administrator in
     respect of the Jersey Security Interests or the Jersey Secured Property,
     the laws of Jersey law shall apply.

6.   The Principal hereby agrees at all times hereafter to ratify and confirm
     whatsoever the said Attorney or its attorney or attorneys or any Delegate,
     Receiver or Administrator or Substitute

                                       57

<PAGE>

     shall properly and lawfully do or cause to be done in and concerning the
     Funding Charged Property.

                                       58

<PAGE>

IN WITNESS whereof this Power of Attorney has been executed as a deed by the
Principal the day and year first before written.

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

---------------------------------
Director

Name:

Title:

---------------------------------
Director/Secretary

Name:

Title:

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<PAGE>

                                   SCHEDULE 2

                            FORM OF DEED OF ACCESSION

THIS DEED OF ACCESSION is made on [           ]

BETWEEN:

(1)  GRANITE FINANCE FUNDING LIMITED. (registered number 79308) a private
     limited liability company incorporated under the laws of Jersey whose
     London branch is at 4th Floor, 25 New Bridge Street, Blackfriars, London
     EC4V 6BW ("FUNDING");

(2)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at One Canada Square, 48th Floor, London E14 5AL, United
     Kingdom, as security trustee (the "SECURITY TRUSTEE" which expression shall
     include such person and all other persons for the time being acting as the
     security trustee or security trustees pursuant to this Funding Deed of
     Charge);

(3)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at One Canada Square, 48th Floor, London E14 5AL, United
     Kingdom, as note trustee (the "NOTE TRUSTEE" which expression shall include
     such person and all other persons for the time being acting as the note
     trustee or note trustees pursuant to each Issuer Trust Deed and each Issuer
     Deed of Charge );

(4)  GRANITE MORTGAGES 01-1 PLC (registered number 4129652) a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX (the "FIRST
     ISSUER");

(5)  GRANITE FINANCE TRUSTEES LIMITED (registered number 79309) a private
     limited liability company incorporated under the laws of Jersey whose
     registered office is at 22 Grenville Street, St. Helier, Jersey JE4 8PX
     Channel Islands as trustee of the Mortgages Trust (the "MORTGAGES
     TRUSTEE");

(6)  NORTHERN ROCK PLC (registered number 03273685) a public limited company
     incorporated under the laws of England and Wales whose registered office is
     at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity as cash manager under the Cash Management Agreement (the "CASH
     MANAGER", which expression shall include such person and all other persons
     for the time being acting as the cash manager or cash managers pursuant to
     the Cash Management Agreement);

(7)  LLOYDS TSB BANK PLC, acting through its office at City Office, Bailey
     Drive, Gillingham Business Park, Kent ME8 0LS in its capacity as account
     bank under the Bank Account Agreement (the "ACCOUNT BANK", which expression
     shall include such person and all other persons for the time being acting
     as the account bank or account banks to Funding pursuant to the Bank
     Account Agreement) and acting through its office at 25 Monument Street,
     London EC3R 8BQ in its capacity as GIC provider to Funding pursuant to the
     Funding Guaranteed Investment Contract (the "FUNDING GIC PROVIDER", which
     expression shall include such person and all other persons for the time
     being acting as the GIC provider to

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<PAGE>

     Funding pursuant to the Funding Guaranteed Investment Contract and each
     Funding (Issuer) Guaranteed Investment Contract);

(10) MOURANT & CO. CAPITAL (SPV) LIMITED, a private limited company incorporated
     under the laws of Jersey whose registered office is 4th Floor, 35 New
     Bridge Street, London EC4V 6BW. (the "CORPORATE SERVICES PROVIDER" which
     expression shall include such person and all other persons for the time
     being acting as the corporate services provider or corporate services
     providers pursuant to the Corporate Services Agreement); and

(11) NORTHERN ROCK PLC (registered number 03273685) acting through its office at
     Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL as start-up loan
     provider pursuant to the Start-Up Loan Agreement (the "START-UP LOAN
     PROVIDER", which expression shall include such person or all other persons
     for the time being acting as start-up loan provider pursuant to the
     Start-Up Loan Agreement).

(8)  [Any other additional secured creditor of Funding including any New
     Issuer.]

(9)  [             ] (the "NEW FUNDING SECURED CREDITOR").

NOW THIS DEED OF ACCESSION WITNESSES AS FOLLOWS

WHEREAS:

(A)  [Pursuant to the terms of a [describe agreement] (the "AGREEMENT") dated [
     ] made between Funding and the New Funding Secured Creditor, Funding has
     agreed to [describe nature of the obligations of Funding under the
     Agreement].

(B)  This Deed is supplemental to a Deed of Charge dated 26 March 2001 between
     Granite Finance Funding Limited, Granite Mortgages 01-1 plc, the Security
     Trustee, the Mortgages Trustee, the Cash Manager, the Account Bank, the
     Funding GIC Provider, the Corporate Services Provider, the Start-Up Loan
     Provider (as amended and supplemented from time to time the "FUNDING DEED
     OF CHARGE"), pursuant to which Funding agreed to provide the Security
     Trustee with the benefit of the security described in the Funding Deed of
     Charge to secure Funding's obligations to the Funding Secured Creditors
     including the New Funding Secured Creditor.

(C)  The terms of the Funding Deed of Charge permit Funding to secure its
     obligations to a New Funding Secured Creditor thereunder [and (where such
     New Funding Secured Creditor is a New Issuer) permit Funding to create
     certain Security Interests in favour of the Security Trustee for the
     benefit of such New Funding Secured Creditor.]

(D)  The New Funding Secured Creditor has agreed to enter into this Deed of
     Accession (this "DEED") to accede to the provisions of the Funding Deed of
     Charge.

(E)  The Funding Secured Creditors have agreed to enter into this Deed [and to
     agree consequential changes to the Funding Priority of Payments set out in
     PART I, PART II and PART III of SCHEDULE 3 of the Funding Deed of Charge as
     are required and any [other]

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<PAGE>

     amendment as may be required to give effect to this Deed] [and to
     acknowledge the Security Interests created hereunder].

1.   INTERPRETATION

     The Master Definitions Schedule signed for the purposes of identification
     by Brown and Wood and Clifford Chance Limited Liability Partnership on 26
     March 2001 (as the same may be amended, varied or supplemented from time to
     time with the consent of the parties hereto) are expressly and specifically
     incorporated into this Deed and, accordingly, the expressions defined in
     the Master Definitions Schedule (as so amended, varied or supplemented)
     shall, except where the context otherwise requires and save where otherwise
     defined herein, have the same meanings in this Deed, including the recitals
     hereto and this Deed shall be construed in accordance with the
     interpretation provisions set out in Clause 2 (Interpretation and
     Construction) of the Master Definitions Schedule.

2.   REPRESENTATIONS AND WARRANTIES

2.1  The New Funding Secured Creditor hereby represents and warrants to the
     Security Trustee and each of the Funding Secured Creditors in respect of
     itself that as of the date of this Deed:

     (a)  pursuant to the terms of the Agreement, Funding has agreed to pay to
          the New Funding Secured Creditor the amount (if any) [describe in
          relation to the Agreement]; and

     (b)  the Agreement expressly provides that all amounts due from Funding
          thereunder are to be secured by or pursuant to the Funding Deed of
          Charge.

2.2  Funding hereby represents and warrants to the Security Trustee and each of
     the Funding Secured Creditors that as at the date of this Deed, the
     conditions to incurring further secured financial indebtedness set out in
     Clause 2.2 (New Intercompany Loan Agreements) of the Intercompany Loan
     Terms and Conditions are satisfied.

3.   ACCESSION

     In consideration of the New Funding Secured Creditor being accepted as a
     Funding Secured Creditor for the purposes of the Funding Deed of Charge by
     the parties thereto as from [date], the New Funding Secured Creditor:

     (a)  confirms that as from [date], it intends to be a party to the Funding
          Deed of Charge as a Funding Secured Creditor;

     (b)  undertakes to comply with and be bound by all of the provisions of the
          Master Definitions Schedule (as the same may be amended, varied or
          restated from time to time) and the Funding Deed of Charge in its
          capacity as a Funding Secured Creditor, as if it had been an original
          party thereto;

     (c)  undertakes to perform comply with and be bound by all of the
          provisions of the Funding Deed of Charge in its capacity as a Funding
          Secured Creditor, as if it had

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<PAGE>

          been an original party thereto including, without limitation, Clause
          20.3 (Funding Secured Creditors) (including without limitation Clauses
          8.3 (Funding Post-Enforcement Priority of Payments), 8.6 (Security
          Trustee Rights upon Enforcement) and Clause 6 (Restrictions on
          Exercise of Certain Rights)); and

     (d)  agrees that the Security Trustee shall be the Security Trustee of the
          Funding Deed of Charge for all Funding Secured Creditors upon and
          subject to the terms set out in the Funding Deed of Charge.

4.   [ACCOUNTS FOR ISSUERS(1)

     Funding, by way of first fixed security for the payment or discharge of
     that portion of the Funding Secured Obligations which represent the
     obligations and liabilities of Funding to the New Funding Secured Creditor
     under the Agreement (the "FUNDING ([INSERT RELEVANT ISSUER]) SECURED
     OBLIGATIONS"), subject to Clause 4 (Release of Funding Charged Property) of
     the Funding Deed of Charge, hereby:

     (a)  assigns by way of security to the Security Trustee for the benefit of
          the New Funding Secured Creditor all of its right, title, benefit and
          interest, present and future, in, to and under:

     (i)  the [insert relevant Funding (Issuer) Bank Account Agreement]; and

     (ii) the [insert relevant Funding (Issuer) Guaranteed Investment Contract];

          including all rights to receive payment of any amounts which may
          become payable to Funding thereunder and all payments received by
          Funding thereunder including, without limitation, all rights to serve
          notices and/or make demands thereunder and/or to take such steps as
          are required to cause payments to become due and payable thereunder
          and all rights of action in respect of any breach thereof and all
          rights to receive damages or obtain relief in respect thereof and the
          proceeds of any of the foregoing, TO HOLD the same unto the Security
          Trustee absolutely;

     (b)  assigns in favour of the Security Trustee for the benefit of the New
          Funding Secured Creditor all of its rights, title, benefit and
          interest, present and future, in and to all monies now or at any time
          hereafter standing to the credit of the [insert relevant Funding
          (Issuer) GIC Account] and the debts represented by them together with
          all rights and claims relating or attached thereto including, without
          limitation, the right to interest and the proceeds of any of the
          foregoing, TO HOLD the same unto the Security Trustee absolutely; and

     (c)  charges to the Security Trustee for the benefit of the New Funding
          Secured Creditor all of its right, title, benefit and interest,
          present and future in, to and under any Authorised Investment
          purchased using monies standing to the credit of the [insert

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

(1) Include if New Funding Secured Creditor is a New Issuer

                                       63

<PAGE>

          relevant Funding (Issuer) GIC Account] and all rights in respect of or
          ancillary to such Authorised Investments, including the right to
          income and the proceeds of any of the foregoing, TO HOLD the same unto
          the Security Trustee absolutely.

5.   [TITLE GUARANTEE

     Each of the dispositions of or charges over property effected in or
     pursuant to Clause 4 (Accounts for Issuers) is made with full title
     guarantee.](2)

6.   [APPLICATION(3)

     Prior to and following enforcement of the Funding Security all amounts at
     any time held by Funding, the Cash Manager or the Security Trustee in
     respect of the security created under this Deed shall be held and/or
     applied by such person subject to and in accordance with the relevant
     provisions of the Funding Deed of Charge.]

7.   SCOPE OF THE FUNDING DEED OF CHARGE

     Funding, the New Funding Secured Creditor and the Funding Secured Creditors
     (including the Security Trustee) hereby agree that for the relevant
     purposes under the Funding Deed of Charge and the Master Definitions
     Schedule:

     (a)  the Agreement shall be treated as a Funding Transaction Document;
          [and]

     (b)  [[insert relevant Funding (Issuer) Bank Account Agreement] shall be
          treated as a Funding Transaction Document;]

     (c)  [[insert relevant Funding (Issuer) Bank Account Agreement] shall be
          treated as a Funding Transaction Document;]

     (d)  [the property and assets of Funding expressed to be assigned by way of
          security or charged pursuant to this Deed of Accession shall
          constitute Funding Charged Property;][and]

     (e)  the New Funding Secured Creditor shall be treated as a Funding Secured
          Creditor.

8.   NOTICES AND ACKNOWLEDGEMENTS

     (a)  The execution of this Deed by the New Funding Secured Creditor shall
          constitute notice to such New Funding Secured Creditor of the
          assignments made by Funding pursuant to Clause 3 (Funding Security) of
          the Funding Deed of Charge. The execution of this Deed by each other
          Funding Secured Creditor shall constitute notice

----------

(2) as above

(3) Include if necessary

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<PAGE>

          to such Funding Secured Creditor of the assignments made by Funding
          pursuant to this Deed.

     (b)  By its execution of this Deed, the New Funding Secured Creditor
          acknowledges that it has notice of and consents to the assignments,
          charges and Security Interests (including the Jersey Security
          Interests) made or granted by Funding pursuant to Clause 3 (Funding
          Security) of the Funding Deed of Charge and also acknowledges that as
          at the date hereof it has not received from any other person any
          notice of any assignment or charge of any of the property the subject
          of such Security Interests. By its execution of this Deed, each other
          Funding Secured Creditor acknowledges that it has notice of and
          consents to the assignments, charges and Security Interests made or
          granted by Funding pursuant to this Deed of Accession and also
          acknowledges that as at the date hereof it has not received from any
          other person any notice of any assignment or charge of any of the
          property the subject of such Security Interests.

     (c)  Notwithstanding the assignments and charges granted pursuant to Clause
          3 (Funding Security) of the Funding Deed of Charge or pursuant to this
          Deed of Accession, the parties hereto acknowledge that, subject as
          provided otherwise in the Funding Deed of Charge, each Funding Secured
          Creditor and each other party to any Funding Transaction Document may
          continue to make all payments becoming due to Funding under any
          Funding Transaction Document in the manner envisaged by such Funding
          Transaction Document until the receipt of written notice from the
          Security Trustee or any Receiver requiring payments to be made
          otherwise.

[9.  AMENDMENT TO THE FUNDING PRIORITY OF PAYMENTS

     The Funding Secured Creditors agree to amend and restate the Funding
     Priority of Payments set out in PART I and PART II of SCHEDULE 3 of the
     Funding Deed of Charge in accordance with APPENDIX 1 hereto.](4)

10.  NOTICES AND DEMANDS

     Any notice or communication under or in connection with this Deed, the
     Funding Deed of Charge shall be given in the manner and at the times set
     out in Clause 24 (Notices) of the Funding Deed of Charge to the addresses
     given in this Clause or at such other address as the recipient may have
     notified to the other parties hereto and/or thereto in writing.

     The address referred to in this Clause 10 for the New Funding Secured
     Creditor is:

     [           ]

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

(4) Include if necessary

                                       65

<PAGE>

     For the attention of:      [            ]

     Telephone:                 [            ]
     Facsimile:                 [            ]

     or such other address and/or numbers as the New Funding Secured
     Creditor may notify to the parties to the Funding Deed of Charge in
     accordance with the provisions thereof.

11.  NON PETITION COVENANT

     Each of the parties hereto hereby agrees that it shall not institute
     against Funding, the Mortgages Trustee or any Issuer any winding-up,
     administration, insolvency or similar proceedings in any jurisdiction for
     so long as any sum is outstanding under any Intercompany Loan Agreement of
     any Issuer or for two years plus one day since the last day on which any
     such sum was outstanding provided that the Security Trustee may prove or
     lodge a claim in the event of a liquidation initiated by any other person.

12.  THIRD PARTY RIGHTS

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

13.  EXECUTION IN COUNTERPARTS

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

14.  CHOICE OF LAW

     This Deed of Accession is governed by and shall be construed in accordance
     with English law.

                                       66

<PAGE>

DULY EXECUTED AND DELIVERED AS A DEED by each of the parties hereto or on its
behalf on the date appearing on page one.

NEW FUNDING SECURED CREDITOR

[EXECUTED AS A DEED by                                               )
[NEW FUNDING SECURED CREDITOR]                                       )
acting by:                                                           )

---------------------------------
Director

Name:

Title:

---------------------------------
Director/Secretary

Name:

Title:]
FUNDING

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

---------------------------------
Director

Name:

Title:

---------------------------------
Director/Secretary

Name:

Title:

                                       67

<PAGE>

THE SECURITY TRUSTEE

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

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

Name:

Title:
THE NOTE TRUSTEE

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

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

Name:

Title:
EXECUTED AS A DEED by                                                )
GRANITE MORTGAGES 01-1 PLC                                           )
acting by:                                                           )

---------------------------------
Director

Name:

Title:

---------------------------------
Director/Secretary

Name:

Title:

                                       68

<PAGE>

THE MORTGAGES TRUSTEE

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

---------------------------------
Director

Name:

Title:

---------------------------------
Director/Secretary

Name:

Title:
THE CASH MANAGER

EXECUTED under THE COMMON SEAL of                                    )
NORTHERN ROCK PLC                                                    )
affixed by order of the Board of Directors                           )
in the presence of:                                                  )

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

Name:

Title:

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

Name:

Title:

                                       69

<PAGE>

THE ACCOUNT BANK

EXECUTED AS A DEED by                                                )
LLOYDS TSB BANK PLC                                                  )
Acting by its attorney:                                              )

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

in the presence of:

Name:

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

Address:

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

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

Occupation:

---------------------------------
THE FUNDING GIC PROVIDER

EXECUTED AS A DEED by                                                )
LLOYDS TSB BANK PLC                                                  )
Acting by its attorney:                                              )

---------------------------------
in the presence of:

Name:

---------------------------------
Address:

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

---------------------------------
Occupation:

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

                                       70

<PAGE>

THE CORPORATE SERVICES PROVIDER

EXECUTED AS A DEED by                                                )
MOURANT & CO. CAPITAL (SPV)                                          )
LIMITED                                                              )
acting by:                                                           )

---------------------------------
Director

Name:

Title:

---------------------------------
Director/Secretary

Name:

Title:

THE START-UP LOAN PROVIDER

EXECUTED under THE COMMON SEAL of                                    )
NORTHERN ROCK PLC                                                    )
affixed by order of the Board of Directors                           )
in the presence of:                                                  )

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

Name:

Title:

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

Name:

Title:

                                       71

<PAGE>

                                   [SCHEDULE 1

                         UTILISATION OF ISSUER RESERVES]

                                       72

<PAGE>

                                    [APPENDIX

               AMENDED AND RESTATED FUNDING PRIORITY OF PAYMENTS]

                                       73

<PAGE>

                                   SCHEDULE 3

                          FUNDING PRIORITY OF PAYMENTS

                                     PART I

              FUNDING PRE-ENFORCEMENT REVENUE PRIORITY OF PAYMENTS

DISTRIBUTION OF FUNDING AVAILABLE REVENUE RECEIPTS PRIOR TO ENFORCEMENT OF THE
FUNDING SECURITY

On each Payment Date or, in respect of amounts due to third parties by Funding
under paragraph (B), when due, prior to enforcement of the Funding Security, the
Cash Manager will, subject to the rules for application of Funding Available
Revenue Receipts (set out below), apply Funding Available Revenue Receipts in
the following order of priority (the "FUNDING PRE-ENFORCEMENT REVENUE PRIORITY
OF PAYMENTS"):

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

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

(C)  third, towards payment of amounts due to the Cash Manager under the Cash
     Management Agreement (together with (to the extent not already inclusive)
     VAT on those amounts);

(D)  fourth, in no order of priority between them but in proportion to the
     respective amounts due, towards payment of amounts, if any, due to the
     Account Bank under the terms of the Bank Account Agreement and to the
     Corporate Services Provider under the Corporate Services Agreement;

(E)  fifth, to pay to each Issuer an amount up to its Issuer Allocable Revenue
     Receipts in respect of interest and fees due on that Issuer's Intercompany
     Loan but not exceeding the aggregate amount of, and to be applied in the
     amounts and priorities set forth in, the Issuer Pre-Liquidity Payments for
     that Issuer.

(F)  sixth, to pay such amount for each Issuer up to its Issuer Allocable
     Revenue Receipts as is necessary to replenish the Issuer Liquidity Reserve
     Fund, if any, established in respect of that Issuer up to the Issuer
     Liquidity Reserve Required Amount (to the extent that monies have been
     drawn from the Issuer Liquidity Reserve Fund to pay interest and fees due
     under the relevant intercompany loan);

                                       74

<PAGE>

(G)  seventh, to pay to each Issuer an amount up to its Issuer Allocable Revenue
     Receipts in respect of interest and fees due on that issuer's Intercompany
     Loan but not exceeding the aggregate amount of, and to be applied in the
     amounts and priorities set forth in, the Issuer Post-Liquidity Payments for
     that Issuer;

(H)  eighth, to pay such amount for each Issuer up to its Issuer Allocable
     Revenue Receipts as is necessary to replenish the Issuer Reserve Fund
     established in respect of that Issuer up to the Issuer Reserve Required
     Amount;

(I)  ninth, from Issuer Allocable Revenue Receipts, to credit the Funding
     Reserve Ledger in an amount up to the Funding Reserve Required Amount;

(J)  tenth, to pay to each Issuer an amount up to its Issuer Allocable Revenue
     Receipts in respect of interest and fees due on that issuer's Intercompany
     Loan but not exceeding the aggregate amount of, and to be applied in the
     amounts and priorities set forth in, the Issuer Post-Reserve Payments for
     that Issuer;

(K)  eleventh, from Issuer Allocable Revenue Receipts, towards payment of
     interest and principal amounts due to the Start-Up Loan Provider under the
     Start-up Loan Agreement;

(L)  twelfth, to pay to each Issuer an amount up to its Issuer Allocable Revenue
     Receipts in respect of interest and fees and any other amount (if any) due
     on that Issuer's Intercompany Loan but not exceeding the aggregate amount
     of, and to be applied in the amounts and priorities set forth in, the
     Issuer Post Start-Up Payments for that Issuer;

(M)  thirteenth, to apply all Shared Issuer Revenue Receipts in the priorities
     set forth in items (E) through (L) above;

(N)  fourteenth, towards payment to Funding of an amount equal to 0.01% per
     annum of the Funding Available Revenue Receipts, which amount will be
     retained by Funding as profit;

(0)  fifteenth, towards payment of any Deferred Contribution due to the
     Mortgages Trustee pursuant to the terms of the Mortgages Trust Deed; and

(P)  last, towards payment to the shareholders of Funding of any dividend
     declared by Funding.

PROVIDED THAT no amount will be applied in replenishing any of the reserve funds
held by Funding in respect of an issuer under paragraphs (F) and/or (H) above
following an enforcement of the Issuer Security relating to that Issuer.

RULES FOR APPLICATION OF FUNDING AVAILABLE REVENUE RECEIPTS

(1)  Subject as provided in paragraphs (2) through (4) below, the portion of
     Issuer Allocable Revenue Receipts, if any, not required to be applied by
     the Issuer on a Payment Date to pay interest on the Notes or to credit the
     related Issuer Principal Deficiency Ledger or to pay any other costs and
     expenses due by the Issuer on that date pursuant to the relevant Issuer
     Priority of Payments, together with the portion of Issuer Allocable Revenue
     Receipts relating to all

                                       75

<PAGE>

     other Issuers not required to be so applied by those other Issuers on that
     Payment Date (excluding any Issuer Reserve Fund or Issuer Liquidity Reserve
     Fund (if any) of any Issuer), constitute "SHARED ISSUER REVENUE RECEIPTS".
     Shared issuer revenue receipts will be reallocated by the Cash Manager and
     distributed among the Issuers as payments of interest and fees under the
     applicable Intercompany Loans to the extent required to make payments of
     interest due on the Notes, to credit the related Issuer Principal
     Deficiency Ledgers and to pay other costs, expenses and third party amounts
     payable by the Issuers under the relevant Issuer Priority of Payments (but
     excluding principal payable under any Intercompany Loan). Each Issuer will
     be entitled to receive a portion of the Shared Issuer Revenue Receipts
     equal to:

                          [Representation of Graphic]

                                            Outstanding Principal Balance of the
                                              Intercompany Loan of the Issuer
Amount of Shared Issuer Revenue Receipts x  ------------------------------------
                                              Aggregate Outstanding Principal
                                             Balance of the Intercompany Loans
                                                      of all Issuers

(2)  No Issuer shall be entitled to or shall receive any amount of Issuer
     Allocable Revenue Receipts from Funding on a Payment Date which is not
     required by that Issuer to make a payment on that date in accordance with
     the relevant Issuer Pre-Enforcement Revenue Priority of Payments or other
     relevant Issuer Priority of Payments which applies to that Issuer on that
     date, and the Cash Manager will take account of all of the funds which are
     or will become available to that Issuer on that Payment Date and which
     constitute Issuer Available Revenue Receipts (including any payments due
     under any Swap Agreement and any interest or other income received or to be
     received) for that Issuer for the purpose of making this determination.

(3)  Unless and until the Intercompany Loan of any Issuer has been repaid in
     full and Funding has no further liability under the relevant Intercompany
     Loan Agreement, amounts standing to the credit of the Issuer Reserve Ledger
     and the Issuer Liquidity Reserve Ledger, if any, established by Funding for
     that Issuer may only be utilized by Funding in making payments due under
     that Issuer's Intercompany Loan and may not be used in or towards the
     payment of any other liability of Funding. On the payment date following
     the repayment in full of the Intercompany Loan of that Issuer and provided
     that Funding has no further liability in respect of the relevant
     Intercompany Loan Agreement, any remaining amounts standing to the credit
     of the Issuer Reserve Ledger and the Issuer Liquidity Reserve Ledger, if
     any, of that Issuer will constitute "SHARED ISSUER REVENUE RECEIPTS" for
     the purpose of paragraph (1) above and may be utilized by Funding in paying
     any other liability of Funding subject to and in accordance with the
     relevant Funding priority of payments.

(4)  If on any Payment Date any Issuer Allocable Revenue Receipts and/or any
     Shared Issuer Revenue Receipts are paid to an Issuer and are applied by
     that Issuer, in reducing any deficiency recorded on the Issuer Principal
     Deficiency Ledger of that Issuer then the Issuer Allocable Revenue Receipts
     and/or Shared Issuer Revenue Receipts so applied shall constitute
     repayments of principal under the relevant Intercompany Loan and shall
     reduce the outstanding principal balance of that Intercompany Loan
     accordingly.

                                       76

<PAGE>

                                     PART II

             FUNDING PRE-ENFORCEMENT PRINCIPAL PRIORITY OF PAYMENTS

On each payment date prior to enforcement of the Funding security, the Cash
Manager will, subject to the rules for application of Funding Available
Principal Receipts set forth below, apply Funding Available Principal Receipts
in the following order of priority (the "FUNDING PRE-ENFORCEMENT PRINCIPAL
PRIORITY OF PAYMENTS"):

(A)  first, an amount necessary to fund or replenish, as the case may be, the
     Issuer Liquidity Reserve Fund, if any, of each Issuer up to the Issuer
     Liquidity Reserve Required Amount but only from and to the extent of the
     Issuer Allocable Principal Receipts for that Issuer;

(B)  second, to pay to (or, if required under that Issuer's Intercompany Loan,
     set aside for) each Issuer an amount up to its Issuer Allocable Principal
     Receipts in respect of principal due (or, if required under that Issuer's
     Intercompany Loan, to become due) on that Issuer's Intercompany Loan, which
     shall be an amount up to the aggregate amount of, and shall be applied in
     the amounts and priorities set forth in, the Issuer Principal Payments for
     that Issuer;

(C)  last, to pay to (or, if required under that Issuer's Intercompany Loan, set
     aside for) each issuer up to its allocable portion of Shared Issuer
     Principal Receipts in respect of principal due (or, if required under that
     Issuer's Intercompany Loan, to become due) on that Issuer's Intercompany
     Loan, which in the case of the Issuer shall be an amount up to the
     aggregate amount of, and shall be applied in the amounts and priorities set
     forth in, the Issuer Principal Payments for that Issuer until there are no
     remaining Funding Available Principal Receipts on such Payment Date,

PROVIDED THAT no amount will be applied in replenishing the Issuer Liquidity
Reserve Fund held by Funding in respect of an Issuer under paragraph (A) above
following an enforcement of the Issuer Security relating to that Issuer.

RULES FOR APPLICATION OF FUNDING AVAILABLE PRINCIPAL RECEIPTS

(1)  On the Distribution Date immediately preceding such Payment Date, the Cash
     Manager will calculate the "Issuer Allocable Principal Receipts" for each
     Issuer in respect of the relevant Payment Date which, subject as provided
     in paragraphs (2) through (7) below, is for any issuer an amount which is
     equal to the lesser of:

     (a)  (only if relevant) the principal amount due on the Intercompany Loan
          of such Issuer equal to the Controlled Amortisation Amount due, if
          any, on the Payment Date immediately succeeding such Distribution
          Date; and

                                       77

<PAGE>

     (b)  an amount equal to:

                         [REPRESENTATION OF GRAPHIC]

                                         Outstanding Principal Balance on such
                                             Issuer's Intercompany Loan
Funding Available Principal Receipts x -----------------------------------------
                                        Aggregate Outstanding Principal Balance
                                       of the Intercompany Loans of all Issuers

     PROVIDED THAT, subject as provided in paragraphs (2) through (7) below, for
     the purpose only of determining the amount of Issuer Allocable Principal
     Receipts which may be allocated and paid to that Issuer (but not to any
     other Issuer) in accordance with this paragraph (1), following an
     enforcement of the Issuer Security relating to that Issuer the amount so
     determined may be increased to the extent of the aggregate of any amounts
     standing to the credit of the Issuer Liquidity Reserve Ledger, if any, and
     the Issuer Reserve Ledger of that Issuer remaining on that Payment Date
     after the application of such reserve funds in accordance with the Funding
     Pre-Enforcement Revenue Priority of Payments.

(2)  If the Notes of any Issuer have become immediately due and payable as a
     result of the service of a Note Enforcement Notice or if the Intercompany
     Loan of any Issuer and the other Intercompany Loans of any other Issuers
     have become immediately due and payable as a result of the service of an
     Intercompany Loan Enforcement Notice or otherwise on any Payment Date
     following the occurrence of any Trigger Event, principal payments in
     respect of any Intercompany Loan may be made in excess of any Controlled
     Amortisation Amount and paragraph (1)(a) above shall no longer apply in
     relation to that Issuer and the amount of Issuer Allocable Principal
     Receipts payable to that Issuer on the relevant Payment Date may not exceed
     the amount determined under paragraph (1)(b) above but subject always to
     any increase in that amount as a result of the utilisation of the Issuer
     Reserve Fund and the Issuer Liquidity Reserve Fund (if any) following
     enforcement of the Issuer Security relating to that Issuer as provided in
     that paragraph.

(3)  For the purpose of determining the amount of Issuer Allocable Principal
     Receipts which may be paid to any Issuer on a Payment Date pursuant to
     paragraph (1) above or paragraph (6) below, the Outstanding Principal
     Balance of that Intercompany Loan shall be deemed to be reduced by the
     amount of any deficiency recorded on the Issuer Principal Deficiency Ledger
     of that Issuer as at such Payment Date, but only to the extent that such
     deficiency has arisen as a result of (i) losses on the Mortgage Loans
     allocated by Funding to that Issuer and/or (ii) the application of Funding
     Available Principal Receipts to fund the Issuer Liquidity Reserve Fund of
     that Issuer but not as a result of any other principal deficiency of that
     Issuer.

(4)  The amount of Funding Available Principal Receipts payable to each Issuer
     on a Payment Date will be reduced in proportion to the aggregate of the
     Issuer Available Revenue Receipts of that Issuer which are to be applied on
     that Payment Date in reducing deficiencies recorded on the Issuer Principal
     Deficiency Ledgers, but only to the extent that the Issuer Available
     Revenue Receipts which are to be so applied on that Payment Date would not
     otherwise be payable as principal on the relevant Notes on such Payment
     Date.

                                       78

<PAGE>

(5)  No issuer shall be entitled to, or shall receive on a Payment Date, any
     amount of Issuer Allocable Principal Receipts from Funding which is not
     required by that Issuer to make a payment on that date in accordance with
     the relevant Issuer Pre-Enforcement Principal Priority of Payments or
     otherwise to make a payment of principal on the Notes.

(6)  The portion of Issuer Allocable Principal Receipts, if any, not required to
     be applied by the Issuer to pay principal on the notes on a Payment Date
     together with the portion of Issuer Allocable Principal Receipts relating
     to all other Issuers not required to be so applied by such other Issuers
     (or otherwise required to be set aside by Funding for any Issuer) on that
     Payment Date (excluding the amount of any Issuer Reserve Fund or Issuer
     Liquidity Reserve Fund (if any) of any Issuer), constitute "SHARED ISSUER
     PRINCIPAL RECEIPTS". Shared Issuer Principal Receipts will be reallocated
     by the Cash Manager and distributed among the Issuers as payments of
     principal under the applicable Intercompany Loans to the extent required to
     make payments of principal due on the relevant Notes. Save as provided in
     paragraph (2) above, each Issuer will be entitled to receive a portion of
     the Shared Issuer Principal Receipts equal to:

                         [REPRESENTATION OF GRAPHIC]

                                         Outstanding Principal Balance of the
                                            Intercompany Loan of the Issuer
Shared Issuer Principal Receipts x ---------------------------------------------
                                    Aggregate Outstanding Principal Balance of
                                      the Intercompany Loans of all Issuers

(7)  The repayment of any Intercompany Loan prior to the occurrence of a Trigger
     Event, enforcement of the Issuer Security by the Note Trustee under the
     Issuer Deed of Charge or enforcement of the Funding Security by the
     Security Trustee under the Funding Deed of Charge will be made in
     accordance with the terms of the relevant Intercompany Loan Agreement.

                                       79

<PAGE>

                                    PART III

                  FUNDING POST-ENFORCEMENT PRIORITY OF PAYMENTS

At any time after the security created under this Funding Deed of Charge has
become enforceable in accordance with Clause 7.2 (Enforceable) and provided that
the Intercompany Loan Enforcement Notice has not been withdrawn, all Funding
Available Revenue Receipts, Funding Available Principal Receipts and all other
monies paid to or received or recovered by or on behalf of Funding or the
Security Trustee or any Receiver appointed on its behalf, including all proceeds
following any sale, realisation or enforcement of the security created under
this Funding Deed of Charge and all amounts not previously distributed and/or
standing to the credit of any Funding Bank Account and all monies standing to
the credit of the Funding Reserve Ledger (if any) shall (if not already received
by the Security Trustee) be paid to and held by the Security Trustee on trust to
apply the same (save to the extent required otherwise by applicable law) in
accordance with the rules and the order of priority of the Funding
Post-Enforcement Priority of Payments.

The Security Trustee (or the Cash Manager on its behalf) will, subject to the
rules for application of Funding Available Principal Receipts and Funding
Available Revenue Receipts set out in Part I and Part II of this Schedule, apply
all such amounts received or recovered following enforcement of the Funding
Security on each Payment Date in accordance with the following order of priority
(known as the "FUNDING POST-ENFORCEMENT PRIORITY OF PAYMENTS"):

(A)  first, to pay amounts due to the Security Trustee and any Receiver
     appointed by the Security Trustee, together with interest and (to the
     extent not already inclusive) VAT on those amounts, and to provide for any
     amounts due or to become due to the Security Trustee and the Receiver in
     the following Interest Period under the Funding Deed of Charge or any other
     Transaction Document;

(B)  second, towards payment of amounts due and payable to the Cash Manager and
     any costs, charges, liabilities and expenses then due or to become due and
     payable to the Cash Manager under the Cash Management Agreement, together
     with (to the extent not already inclusive) VAT on those amounts;

(C)  third, (in no order of priority between them but in proportion to the
     respective amounts due) towards payment of amounts (if any) due to the
     Account Bank under the terms of the Bank Account Agreement and to the
     Corporate Services Provider under the Corporate Services Agreement;

(D)  fourth, (in no order of priority between them but in proportion to the
     respective amounts due) to each Issuer its share of Issuer Allocable
     Revenue Receipts and Issuer Allocable Principal Receipts towards payment of
     amounts of interest, principal and fees due to such Issuer under such
     Issuer's Intercompany Loan Agreement, which in the case of the Issuer shall
     be up to the aggregate amount of the amounts, and shall be applied in the
     amounts and priorities, as set forth in the Issuer Post-Enforcement
     Priority of Payments;

(E)  fifth, towards payment of amounts due to the Start-Up Loan Provider under
     the Start-Up Loan Agreement;

                                       80

<PAGE>

(F)  sixth, towards payment of any Deferred Contribution due to the Mortgages
     Trustee under the Mortgages Trust Deed; and

(G)  last, to pay any amount remaining following the application of principal
     and revenue set forth in paragraphs (A) through (F) above, to Funding,

Provided that for the avoidance of doubt funds standing to the credit of any
Issuer Reserve Fund or Issuer Liquidity Reserve Fund of any Issuer shall only be
applied in reduction of the liabilities owing under the Intercompany Loan of
such Issuer.

                                       81

<PAGE>

                                   SCHEDULE 4

                          FORM OF NOTICE OF ASSIGNMENT

To:   [Addressee(s)]

In respect of the [Description of Funding Transaction Document or Funding
Charged Property]

                                                                          [Date]

Dear Sirs,

Terms and expressions used in this letter are as defined in the Funding Deed of
Charge (the "FUNDING DEED OF CHARGE") between Granite Finance Funding Limited
(the "FUNDING"), The Bank of New York (the "SECURITY TRUSTEE") and others dated
26 March 2001.

We hereby give notice to each addressee of this letter that by assignment(s)
under or pursuant to the Funding Deed of Charge, Funding has assigned
absolutely, by way of security for the payment and performance of certain
obligations of Funding described in the Funding Deed of Charge (the "FUNDING
SECURED OBLIGATIONS"), to the Security Trustee all its right, title, benefit and
interest under the [Agreement(s)] (the "FUNDING TRANSACTION DOCUMENTS")
[including its right, title interest and benefit in relation to [describe
property] and including, without limitation, all rights to receive payment of
any amounts which may become payable to Funding thereunder, all payments
received by Funding thereunder, all rights to serve notices and/or make demands
thereunder and/or to take such steps as are required to cause payments to become
due and payable thereunder and all rights of action in respect of any breach
thereof and all rights to receive damages or obtain relief in respect thereof
and the proceeds of any of the foregoing, (hereinafter called the "RELEVANT
FUNDING PROPERTY").

In relation to any of the Relevant Funding Property which may be situated in
Jersey at any time, we hereby give notice for the purpose of the Security
Interests (Jersey) Law 1983 to each addressee of this letter that with the
intention of creating a security interest in accordance with such law in such
property in favour of the Security Trustee for the payment and performance of
the Funding Secured Obligations, Funding has assigned all of its rights, title,
benefit and interest, present and future, in, to and under the Relevant Funding
Property to the Security Trustee.

By signing the enclosed copy of this notice you acknowledge and consent to the
assignments and agree that:

     (i)  from the date of this notice you are obliged to and you will pay all
          moneys which are or may become payable to Funding under the aforesaid
          agreements to or to the order of the Security Trustee; and

     (ii) you have not, at the date of this notice, received notice that any
          third party has or will have any right of interest whatsoever in the
          Relevant Funding Property.

                                       82

<PAGE>

Notwithstanding the assignments made by Funding and referred to in this notice,
the Security Trustee hereby confirms and you further acknowledge that:

     (d)  you may continue to make all payments becoming due to Funding in
          respect of the Relevant Funding Property in the manner envisaged by
          the relevant Funding Transaction Document(s); and

     (e)  Funding shall be entitled to exercise its rights, powers and
          discretions and perform its obligations in relation to the Relevant
          Funding Property and under the Funding Transaction Documents in
          accordance with the provisions of the Funding Transaction Documents,

but only until such time as you receive notice from the Security Trustee to the
contrary or to the effect that the security created under the Funding Deed of
Charge has become enforceable, in which event from receipt of such notice you
agree that you will pay all monies becoming due and payable to Funding in
respect of the Relevant Funding Property in accordance with any instructions
received from the Security Trustee.

This letter is governed by, and shall be construed in accordance with, English
law, except that to the extent of any Relevant Funding Property which may be
situated in Jersey at any time, it is governed by and shall be construed in
accordance with the laws of Jersey.

Please acknowledge receipt of this notice by executing and returning the copy of
this letter attached hereto.

Yours faithfully,

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

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

Name:

Title:

                                       83

<PAGE>

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

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

Name:

Title:

We acknowledge receipt of the above notice and the terms of the assignment
created by you in respect of the Relevant Funding Property.

In respect of the [Agreement]:

For and on behalf of:

[Party to Funding Transaction Document]

By:

                                       84

<PAGE>

                                   SCHEDULE 5

                         UTILISATION OF ISSUER RESERVES

RESERVES FOR FIRST ISSUER

1.   FIRST ISSUER RESERVE FUND:

1.1  Prior to enforcement of the First Issuer Security, the First Issuer Reserve
     Fund shall only be applied on any Payment Date to increase that portion of
     Funding Available Revenue Receipts which are allocated to the First Issuer
     to make payments of interest and fees due under the First Issuer
     Intercompany Loan.

1.2  Following enforcement of the First Issuer Security, to the extent not
     applied on a Payment Date in accordance with 1.1 above, amounts standing to
     the credit of the First Issuer Reserve Fund Ledger shall only be applied in
     making payments of principal due under the First Issuer Intercompany Loan
     (but not in respect of any other Intercompany Loan of any New Issuer) to
     fund payments of principal due on the First Issuer Notes on any Payment
     Date.

2.   ISSUER LIQUIDITY RESERVE FUND:

2.1  Prior to enforcement of the First Issuer Security, the First Issuer
     Liquidity Reserve Fund (if any is required to be established) shall only be
     applied on any Payment Date to:

     (a)  increase that portion of Funding Available Revenue Receipts which are
          allocated to the First Issuer to pay amounts due under the First
          Issuer Intercompany Loan, but only to the extent necessary to fund the
          payment by the First Issuer of interest and fees due on the relevant
          Payment Date in respect of the Class A Notes and/or the Class B Notes
          and to credit the Class A Principal Deficiency Sub Ledger; and

     (b)  (provided that there are no Class A Notes outstanding) increase
          Funding Available Revenue Receipts which are allocated to the First
          Issuer to pay interest and fees due on the First Issuer Intercompany
          Loan.

2.2  Following enforcement of the First Issuer Security, to the extent not
     applied on a Payment Date in accordance with 2.1 above, amounts standing to
     the credit of the First Issuer Liquidity Reserve Ledger shall only be
     applied in making payments of principal due under the First Issuer
     Intercompany Loan (but not in respect of any other Intercompany Loan of any
     New Issuer) in order to fund payments of principal due on the First Issuer
     Notes on any Payment Date.

                                       85

<PAGE>

                                 EXECUTION PAGE

FUNDING

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

---------------------------------
Director

Name:

Title:

---------------------------------
Director/Secretary

Name:

Title:

THE SECURITY TRUSTEE

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

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

Name:

Title:

<PAGE>

THE NOTE TRUSTEE

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

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

Name:

Title:

THE FIRST ISSUER

EXECUTED AS A DEED by                                                )
GRANITE MORTGAGES 01-1 PLC                                           )
acting by:                                                           )

---------------------------------
Director

Name:

Title:

---------------------------------
Director/Secretary

Name:

Title:

<PAGE>

THE MORTGAGES TRUSTEE

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

---------------------------------
Director

Name:

Title:

---------------------------------
Director/Secretary

Name:

Title:

THE CASH MANAGER

EXECUTED AS A DEED under                                             )
THE COMMON SEAL of                                                   )
NORTHERN ROCK PLC                                                    )
affixed by order of the Board of Directors                           )
in the presence of:

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

Name:

Title:

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

Name:

Title:

<PAGE>

THE ACCOUNT BANK

EXECUTED AS A DEED by                                                )
LLOYDS TSB BANK PLC                                                  )
Acting by its attorney:                                              )

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

in the presence of:

Name:

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

Address:

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

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

Occupation:

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

THE FUNDING GIC PROVIDER

EXECUTED AS A DEED by                                                )
LLOYDS TSB BANK PLC                                                  )
Acting by its attorney:                                              )

---------------------------------
in the presence of:

Name:

---------------------------------
Address:

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

---------------------------------
Occupation:

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

<PAGE>

THE CORPORATE SERVICES PROVIDER

EXECUTED AS A DEED by                                                )
MOURANT & CO. CAPITAL (SPV)                                          )
LIMITED                                                              )
acting by:                                                           )

---------------------------------
Director

Name:

Title:

---------------------------------
Director/Secretary

Name:

Title:

THE START-UP LOAN PROVIDER

EXECUTED AS A DEED under                                             )
THE COMMON SEAL of                                                   )
NORTHERN ROCK PLC                                                    )
affixed by order of the Board of Directors                           )
in the presence of:

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

Name:

Title:

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

Name:

Title:Exhibit 4.5.2

                           DATED [__] SEPTEMBER, 2002

                         GRANITE FINANCE FUNDING LIMITED
                                   as Funding

                              THE BANK OF NEW YORK
                               as Security Trustee

                           GRANITE MORTGAGES 02-2 PLC
                                as Current Issuer

                                NORTHERN ROCK PLC
                    as Current Issuer Start-up Loan Provider

                                     - AND -

                                     OTHERS

--------------------------------------------------------------------------------
                            ISSUER DEED OF ACCESSION
--------------------------------------------------------------------------------

                           SIDLEY AUSTIN BROWN & WOOD
                              1 THREADNEEDLE STREET
                                 LONDON EC2R 8AQ
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937
                              REF: 30507-13/547080

<PAGE>

                                    CONTENTS

CLAUSE                                                                  PAGE NO.

1.       Interpretation........................................................3

2.       Representations and Warranties........................................3

3.       Accession.............................................................4

4.       Funding Security......................................................4

5.       Title Guarantee.......................................................6

6.       Application...........................................................6

7.       Scope of the Funding Deed of Charge...................................6

8.       Notices and Acknowledgements..........................................7

9.       [Amendment to the Funding Priority of Payments........................8

10.      Notices and Demands...................................................8

11.      Non Petition Covenant.................................................9

12.      Third Party Rights....................................................9

13.      Execution in Counterparts.............................................9

14.      Governing Law and Jurisdiction; Appropriate Forum.....................9

         SCHEDULE I UTILISATION OF ISSUER RESERVES............................17
         [APPENDIX AMENDED AND RESTATED FUNDING PRIORITY OF PAYMENTS].........18

                                       i
<PAGE>

THIS DEED OF ACCESSION is made on [__] September, 2002

BETWEEN:

(1)  GRANITE FINANCE FUNDING LIMITED (registered number 79308), a private
     limited liability company incorporated under the laws of Jersey whose
     London branch is at 4th Floor, 35 New Bridge Street, Blackfriars, London
     EC4V 6BW;

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

(3)  THE BANK OF NEW YORK, a New York banking corporation whose London branch
     address is at One Canada Square, 48th Floor, London E14 5AL United Kingdom,
     (1) in it separate capacities as Note Trustee in respect of the Previous
     Issuers and (2) in its capacity as note trustee under the Current Issuer
     Trust Deed and the Current Issuer Deed of Charge (the "CURRENT ISSUER NOTE
     TRUSTEE" which expression shall include such person and all other persons
     for the time being acting as the note trustee or note trustees pursuant to
     those deeds);

(4)  GRANITE MORTGAGES 01-1 PLC (registered number 4129652), a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX;

(5)  GRANITE MORTGAGES 01-2 PLC (registered number 4270015), a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX;

(6)  GRANITE MORTGAGES 02-1 PLC (registered number 4340767), a public limited
     company incorporated under the laws of England and Wales whose registered
     office is at Fifth Floor, 100 Wood Street, London EC2V 7EX;

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

(8)  NORTHERN ROCK PLC (registered number 03273685), a public limited company
     incorporated under the laws of England and Wales whose registered office is
     at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL in its
     capacity as Cash Manager;

(9)  LLOYDS TSB BANK PLC, acting through its office at City Office, Bailey
     Drive, Gillingham Business Park, Kent ME8 0LS, in its capacity as Account
     Bank and acting

                                       1
<PAGE>

     through its office at 25 Monument Street, London EC3R 8BQ in its capacity
     as Funding GIC Provider;

(10) MOURANT & CO. CAPITAL (SPV) LIMITED, a private limited company incorporated
     under the laws of England and Wales whose registered office is 4th Floor,
     35 New Bridge Street, London EC4V 6BW, in its capacity as Corporate
     Services Provider;

(11) NORTHERN ROCK PLC (registered number 03273685), acting through its office
     at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL, in its
     capacity (1) as the Previous Start-up Loan Provider, and (2) as Current
     Issuer Start-up Loan Provider;

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

NOW THIS DEED OF ACCESSION WITNESSES AS FOLLOWS

WHEREAS:

(A)  Pursuant to the terms of the Current Issuer Intercompany Loan Confirmation,
     the Current Issuer has agreed to make available to Funding the Current
     Issuer Intercompany Loan.

(B)  Pursuant to the terms of the Current Issuer Start-up Loan Agreement, the
     Current Issuer Start-up Loan Provider has agreed to grant to Funding the
     Current Issuer Start-up Loan.

(C)  This Deed is supplemental to the Funding Deed of Charge, pursuant to which
     Funding agreed to provide the Security Trustee with the benefit of the
     security described in the Funding Deed of Charge to secure Funding's
     obligations to the Funding Secured Creditors.

(D)  The terms of the Funding Deed of Charge permit Funding to secure its
     obligations to a New Funding Secured Creditor thereunder and (where such
     New Funding Secured Creditor is a New Issuer) permit Funding to create
     certain Security Interests in favour of the Security Trustee for the
     benefit of such New Funding Secured Creditor.

(E)  The Current Issuer Start-up Loan Provider and the Current Issuer, each of
     whom is a New Funding Secured Creditor, have agreed to enter into this Deed
     of Accession (this "DEED") to accede to the provisions of the Funding Deed
     of Charge.

(F)  The Current Issuer Note Trustee has agreed to enter into this Deed to
     accede to the provisions of the Funding Deed of Charge.

                                       2
<PAGE>

(G)  The Funding Secured Creditors have agreed to enter into this Deed to, among
     other things, acknowledge and agree to such accessions, permit any
     consequential changes to the Funding Priority of Payments set out in PART
     I, PART II and PART III of SCHEDULE 3 of the Funding Deed of Charge as are
     required and any other amendment as may be required to give effect to this
     Deed and to acknowledge the Security Interests created hereunder.

1.   INTERPRETATION

     The provisions of the Master Definitions Schedule as amended and restated
     by (and appearing in Appendix 1 to) the Master Definitions Schedule [Third]
     Amendment Deed made on [__] September, 2002 between, among others, the
     Seller, Funding and the Mortgages Trustee (as the same have been and may be
     amended, varied or supplemented from time to time with the consent of the
     parties hereto) are expressly and specifically incorporated into and shall
     apply to this Agreement.

2.   REPRESENTATIONS AND WARRANTIES

2.1  The Current Issuer hereby represents and warrants to the Security Trustee
     and each of the Funding Secured Creditors in respect of itself that as of
     the date of this Deed:

     (a)  pursuant to the terms of the Current Issuer Intercompany Loan
          Agreement, Funding has agreed to pay to the Current Issuer fees,
          interest and principal in accordance with the terms of the Current
          Issuer Intercompany Loan Agreement; and

     (b)  the Current Issuer Intercompany Loan Agreement expressly provides that
          all amounts due from Funding thereunder are to be secured by or
          pursuant to the Funding Deed of Charge.

2.2  The Current Issuer Start-up Loan Provider hereby represents and warrants to
     the Security Trustee and each of the Funding Secured Creditors in respect
     of itself that as of the date of this Deed:

     (a)  Funding has agreed to pay interest and repay principal to the Current
          Issuer Start-up Loan Provider in accordance with the terms of the
          Current Issuer Start-up Loan Agreement; and

     (b)  the Current Issuer Start-up Loan Agreement expressly provides that all
          amounts due from Funding thereunder are to be secured by or pursuant
          to the Funding Deed of Charge.

2.3  Funding hereby represents and warrants to the Security Trustee and each of
     the Funding Secured Creditors that as at the date of this Deed, the
     conditions to incurring

                                       3
<PAGE>

     further secured financial indebtedness set out in Clause 2.2 (New
     Intercompany Loan Agreements) of the Intercompany Loan Terms and Conditions
     are satisfied.

3.   ACCESSION

3.1  In consideration of the Current Issuer New Funding Secured Creditors being
     accepted as Funding Secured Creditors for the purposes of the Funding Deed
     of Charge by the parties thereto as from the date of this Deed, each of the
     Current Issuer New Funding Secured Creditors:

     (a)  confirms that as from the date of this Deed, it will become and
          intends to be a party to the Funding Deed of Charge as a Funding
          Secured Creditor;

     (b)  undertakes to comply with and be bound by all of the provisions of the
          Master Definitions Schedule and the Current Issuer Master Definitions
          Schedule (as the same may be amended, varied or restated from time to
          time) and the Funding Deed of Charge in its capacity as a Funding
          Secured Creditor, as if it had been an original party thereto;

     (c)  undertakes to perform, comply with and be bound by all of the
          provisions of the Funding Deed of Charge in its capacity as a Funding
          Secured Creditor, as if it had been an original party thereto
          including, without limitation, Clause 20.3 (Funding Secured
          Creditors), Clause 8.3 (Funding Post-Enforcement Priority of
          Payments), Clause 8.6 (Security Trustee Rights upon Enforcement) and
          Clause 6 (Restrictions on Exercise of Certain Rights); and

     (d)  agrees that the Security Trustee shall be the Security Trustee of the
          Funding Deed of Charge for all Funding Secured Creditors upon and
          subject to the terms set out in the Funding Deed of Charge.

3.2  The Current Issuer Note Trustee:

     (a)  confirms that as of the date of this Deed, it becomes and intends to
          be party to the Funding Deed of Charge; and

     (b)  agrees to comply with and be bound by the provisions of the Funding
          Deed of Charge relating to the Note Trustee and agrees that all
          references to the Note Trustee in the Funding Deed of Charge and this
          Deed shall be construed as including the note trustee under the
          Current Issuer Deed of Charge and Current Issuer Trust Deed.

4.   FUNDING SECURITY

4.1  Funding, by way of first fixed security for the payment or discharge of
     that portion of the Funding Secured Obligations which represent the
     obligations and liabilities of

                                       4
<PAGE>

     Funding to the Current Issuer under the Current Issuer Intercompany Loan
     Agreement, subject to Clause 4 (Release of Funding Charged Property) of the
     Funding Deed of Charge, hereby:

     (a)  assigns by way of security to the Security Trustee for the benefit of
          the Current Issuer all of its right, title, benefit and interest,
          present and future, in, to and under:

          (i)  the Funding (Current Issuer) Bank Account Agreement; and

          (ii) the Funding (Current Issuer) Guaranteed Investment Contract,

          including all rights to receive payment of any amounts which may
          become payable to Funding thereunder and all payments received by
          Funding thereunder including, without limitation, all rights to serve
          notices and/or make demands thereunder and/or to take such steps as
          are required to cause payments to become due and payable thereunder
          and all rights of action in respect of any breach thereof and all
          rights to receive damages or obtain relief in respect thereof and the
          proceeds of any of the foregoing, TO HOLD the same unto the Security
          Trustee absolutely;

     (b)  assigns in favour of the Security Trustee for the benefit of the
          Current Issuer all of its rights, title, benefit and interest, present
          and future, in and to all monies now or at any time hereafter standing
          to the credit of the Funding (Current Issuer) GIC Account and the
          debts represented by them together with all rights and claims relating
          or attached thereto including, without limitation, the right to
          interest and the proceeds of any of the foregoing, TO HOLD the same
          unto the Security Trustee absolutely; and

     (c)  charges to the Security Trustee for the benefit of the Current Issuer
          all of its right, title, benefit and interest, present and future in,
          to and under any Authorised Investment purchased using monies standing
          to the credit of the Funding (Current Issuer) GIC Account and all
          rights in respect of or ancillary to such Authorised Investments,
          including the right to income and the proceeds of any of the
          foregoing, TO HOLD the same unto the Security Trustee absolutely.

4.2  (a)  Funding, by way of first fixed security for the payment or discharge
          of the Funding Secured Obligations, subject to Clause 4 (Release of
          Funding Charged Property) of the Funding Deed of Charge, hereby
          assigns to the Security Trustee, save to the extent that the same may
          be situate in Jersey at any relevant time, all of its right, title,
          benefit and interest, present and future, in, to and under the Current
          Issuer Start-up Loan Agreement, including, without limitation, all
          rights to receive payment of any amounts which may

                                       5
<PAGE>

          become payable to Funding thereunder and all payments received by
          Funding thereunder, all rights to serve notices and/or make demands
          thereunder and/or to take such steps as are required to cause payments
          to become due and payable thereunder, all rights of action in respect
          of any breach thereof and all rights to receive damages or obtain
          relief in respect thereof and the proceeds of any of the foregoing, TO
          HOLD the same unto the Security Trustee absolutely.

     (b)  To the intent that the Security Trustee shall have a security interest
          in accordance with the Jersey Security Law (and as secured party for
          the purposes of such law) for the payment or discharge of the Funding
          Secured Obligations, subject to Clause 4 (Release of Funding Charged
          Property) of the Funding Deed of Charge, Funding (as debtor for the
          purposes of the Jersey Security Law) hereby assigns, to the extent
          that the same may be situate in Jersey at any relevant time to the
          Security Trustee all of its right, title, benefit and interest,
          present and future, in, to and under the Current Issuer Start-up Loan
          Agreement, including, without limitation, all rights to receive
          payment of any amounts which may become payable to Funding thereunder
          and all payments received by Funding thereunder, all rights to serve
          notices and/or make demands thereunder and/or to take such steps as
          are required to cause payments to become due and payable thereunder,
          all rights of action in respect of any breach thereof and all rights
          to receive damages or obtain relief in respect thereof and the
          proceeds of any of the foregoing, TO HOLD the same unto the Security
          Trustee absolutely.

5.   TITLE GUARANTEE

     Each of the dispositions of, assignments of and charges over, property
     effected in or pursuant to Clause 4 (Accounts for Issuers) is made with
     full title guarantee.

6.   APPLICATION

     Prior to and following enforcement of the Funding Security all amounts at
     any time held by Funding, the Cash Manager or the Security Trustee in
     respect of the security created under this Deed shall be held and/or
     applied by such person subject to and in accordance with the relevant
     provisions of the Funding Deed of Charge.

7.   SCOPE OF THE FUNDING DEED OF CHARGE

     Funding, the Current Issuer New Funding Secured Creditors and the Funding
     Secured Creditors (including the Security Trustee) hereby agree that for
     the relevant purposes under the Funding Deed of Charge and the Master
     Definitions Schedule:

                                       6
<PAGE>

     (a)  the Current Issuer Intercompany Loan Agreement shall be treated as a
          Funding Transaction Document;

     (b)  the Current Issuer Start-up Loan Agreement shall be treated as a
          Funding Transaction Document;

     (c)  the Funding (Current Issuer) Bank Account Agreement shall be treated
          as a Funding Transaction Document;

     (d)  the Funding (Current Issuer) Guaranteed Investment Contract shall be
          treated as a Funding Transaction Document;

     (e)  the property and assets of Funding expressed to be assigned or charged
          pursuant to this Deed shall constitute Funding Charged Property; and

     (f)  each of the Current Issuer New Funding Secured Creditors shall be
          treated as a Funding Secured Creditor.

8.   NOTICES AND ACKNOWLEDGEMENTS

     (a)  The execution of this Deed by the Current Issuer New Funding Secured
          Creditors shall constitute notice to such Current Issuer New Funding
          Secured Creditors of the assignments made by Funding pursuant to
          Clause 3 (Funding Security) of the Funding Deed of Charge. The
          execution of this Deed by each other Funding Secured Creditor shall
          constitute notice to such Funding Secured Creditor of the assignments
          made by Funding pursuant to this Deed.

     (b)  By its execution of this Deed, each of the Current Issuer New Funding
          Secured Creditors acknowledges that it has notice of and consents to
          the assignments, charges and Security Interests (including the Jersey
          Security Interests) made or granted by Funding pursuant to Clause 3
          (Funding Security) of the Funding Deed of Charge and also acknowledges
          that as at the date hereof it has not received from any other person
          any notice of any assignment or charge of any of the property the
          subject of such Security Interests. By its execution of this Deed,
          each other Funding Secured Creditor acknowledges that it has notice of
          and consents to the assignments, charges and Security Interests made
          or granted by Funding pursuant to this Deed and also acknowledges that
          as at the date hereof it has not received from any other person any
          notice of any assignment or charge of any of the property the subject
          of such Security Interests.

     (c)  Notwithstanding the assignments and charges granted pursuant to Clause
          3 (Funding Security) of the Funding Deed of Charge or pursuant to this
          Deed, the parties hereto acknowledge that, subject as provided
          otherwise in the

                                       7
<PAGE>

          Funding Deed of Charge, each Funding Secured Creditor and each other
          party to any Funding Transaction Document may continue to make all
          payments becoming due to Funding under any Funding Transaction
          Document in the manner envisaged by such Funding Transaction Document
          until the receipt of written notice from the Security Trustee or any
          Receiver requiring payments to be made otherwise.

9.   [AMENDMENT TO THE FUNDING PRIORITY OF PAYMENTS

     The Funding Secured Creditors agree to amend and restate the Funding
     Priority of Payments set out in PART I and PART II of SCHEDULE 3 of the
     Funding Deed of Charge in accordance with APPENDIX 1 hereto.]

10.  NOTICES AND DEMANDS

     Any notice or communication under or in connection with this Deed shall be
     given in the manner and at the times set out in Clause 24 (Notices) of the
     Funding Deed of Charge. For the purposes of such Clause 24 (Notices), as at
     the date of this Deed the relevant contact details for the Current Issuer
     are:

           Granite Mortgages 02-2 plc
           Fifth Floor
           100 Wood Street
           London EC2V  7EX

           For the attention of:     The Company Secretary

           Telephone:                +44 020 7606 5451
           Facsimile:                +44 020 7606 0643

         and for the Current Issuer Start-up Loan Provider are:

           Northern Rock PLC
           Northern Rock House
           Gosforth
           Newcastle upon Tyne

           NE3 4PL

           For the attention of:     The Group Secretary

           Facsimile:                +44 (0)191 213 2203

         and for the Current Issuer Note Trustee are:

                                       8
<PAGE>

           The Bank of New York
           48th Floor, One Canada Square
           London E14 5AL

           For the attention of:     Corporate Trust (Global Structured Finance)

           Facsimile:                +44 (020) 7964 6399.

11.  NON PETITION COVENANT

     Each of the parties hereto hereby agrees that it shall not institute
     against Funding, the Mortgages Trustee or any Issuer any winding-up,
     administration, insolvency or similar proceedings in any jurisdiction for
     so long as any sum is outstanding under any Intercompany Loan Agreement of
     any Issuer or for two years plus one day since the last day on which any
     such sum was outstanding provided that the Security Trustee may prove or
     lodge a claim in the event of a liquidation initiated by any other person.
     The provisions of Clause 6 (Restrictions on Exercise of Certain Rights) of
     the Funding Deed of Charge shall prevail in the event that and to the
     extent that they conflict with the provisions of this Clause.

12.  THIRD PARTY RIGHTS

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

13.  EXECUTION IN COUNTERPARTS

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

14.  GOVERNING LAW AND JURISDICTION; APPROPRIATE FORUM

14.1 This Deed is governed by and shall be construed in accordance with English
     law save that those parts of this Deed concerned with the creation,
     subsistence or enforcement of Jersey Security Interests shall be governed
     by and in accordance with Jersey law.

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

                                       9
<PAGE>

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

                                       10
<PAGE>

DULY EXECUTED AND DELIVERED AS A DEED by each of the parties hereto or on its
behalf on the date appearing on page one.

FUNDING

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

Name:
Title:

Name:
Title:

THE SECURITY TRUSTEE

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

Name:
Title:

THE NOTE TRUSTEE IN RESPECT OF THE PREVIOUS ISSUERS
AND THE CURRENT ISSUER NOTE TRUSTEE

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

Name:
Title:

                                       11
<PAGE>

GRANITE 01-1 PLC

EXECUTED AS A DEED by                                              )
GRANITE MORTGAGES 01-1 PLC                                         )
acting by:                                                         )

Name:
Title:

Name:
Representing LDC Securitisation
Director No. 1 Limited
Title:

GRANITE 01-2 PLC

EXECUTED AS A DEED by                                              )
GRANITE MORTGAGES 01-2 PLC                                         )
acting by:                                                         )

Name:
Title:

Name:
Representing LDC Securitisation
Director No. 1 Limited
Title:

                                       12
<PAGE>

GRANITE 02-1 PLC

EXECUTED AS A DEED by                                              )
GRANITE MORTGAGES 02-1 PLC                                         )
acting by:                                                         )

Name:
Title:

Name:
Representing LDC Securitisation
Director No. 1 Limited
Title:

THE MORTGAGES TRUSTEE

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

Name:
Title:

Name:
Title:

                                       13
<PAGE>

THE CASH MANAGER

EXECUTED AS A DEED by                                              )
                                                                   )
                                                                   )

as attorney for
NORTHERN ROCK PLC in the presence of:

Witness Signature:

Name of Witness:

Occupation:

Address:

THE ACCOUNT BANK AND THE FUNDING GIC PROVIDER

EXECUTED AS A DEED by                                               )
                                                                    )
                                                                    )

as attorney for
LLOYDS TSB BANK PLC
in the presence of:

Witness Signature:

Name of Witness:

Occupation:

Address:

                                       14
<PAGE>

THE CORPORATE SERVICES PROVIDER

EXECUTED AS A DEED by                                              )
MOURANT & CO. CAPITAL (SPV)                                        )
LIMITED                                                            )
acting by:

Name:
Title:

Name:
Title:

THE PREVIOUS START-UP LOAN PROVIDER AND
THE CURRENT ISSUER START-UP LOAN PROVIDER

EXECUTED AS A DEED by                                         )
                                                              )
                                                              )

as attorney for
NORTHERN ROCK PLC in the presence of:

Witness Signature:

Name of Witness:

Occupation:

Address:

                                       15
<PAGE>

THE CURRENT ISSUER

EXECUTED AS A DEED by                                         )
GRANITE MORTGAGES 02-2 PLC                                    )
acting by:                                                    )

Name:
Title:

Name:
Representing LDC Securitisation
Director No. 1 Limited
Title:

                                       16
<PAGE>

                                   SCHEDULE I

                         UTILISATION OF ISSUER RESERVES

RESERVES FOR CURRENT ISSUER

1.   CURRENT ISSUER RESERVE FUND:

1.1  Prior to enforcement of the Current Issuer Security, the Current Issuer
     Reserve Fund shall only be applied on any Payment Date to increase that
     portion of Funding Available Revenue Receipts which are allocated to the
     Current Issuer to make payments of interest and fees due under the Current
     Issuer Intercompany Loan.

1.2  Following enforcement of the Current Issuer Security, to the extent not
     applied on a Payment Date in accordance with 1.1 above, amounts standing to
     the credit of the Current Issuer Reserve Fund Ledger shall only be applied
     in making payments of principal due under the Current Issuer Intercompany
     Loan (but not in respect of any other Intercompany Loan of any other
     Issuer).

2.   CURRENT ISSUER LIQUIDITY RESERVE FUND:

2.1  Prior to enforcement of the Current Issuer Security, the Current Issuer
     Liquidity Reserve Fund (if any is required to be established) shall only be
     applied on any Payment Date to:

     (a)  increase that portion of Funding Available Revenue Receipts which are
          allocated to the Current Issuer to pay amounts due under the Current
          Issuer Intercompany Loan, but only to the extent necessary to fund the
          payment by the Current Issuer of interest and fees due on the relevant
          Payment Date in respect of the Class A Notes and/or the Class B Notes
          and to credit the Class A Principal Deficiency Sub Ledger; and

     (b)  (provided that there are no Class A Notes outstanding) increase
          Funding Available Revenue Receipts which are allocated to the Current
          Issuer to pay interest and fees due on the Current Issuer Intercompany
          Loan.

2.2  Following enforcement of the Current Issuer Security, to the extent not
     applied on a Payment Date in accordance with 2.1 above, amounts standing to
     the credit of the Current Issuer Liquidity Reserve Ledger shall only be
     applied in making payments of principal due under the Current Issuer
     Intercompany Loan (but not in respect of any other Intercompany Loan of any
     other Issuer). Amounts standing to the credit of the Issuer Liquidity
     Reserve Ledger may not be applied in making payments of principal due under
     the Current Issuer Intercompany Loan in order to fund payments of principal
     due on the Class D Notes.

                                       17
<PAGE>

                                    [APPENDIX
               AMENDED AND RESTATED FUNDING PRIORITY OF PAYMENTS]

                                     PART I

              FUNDING PRE-ENFORCEMENT REVENUE PRIORITY OF PAYMENTS

DISTRIBUTION OF FUNDING AVAILABLE REVENUE RECEIPTS PRIOR TO ENFORCEMENT OF THE
FUNDING SECURITY

On each Payment Date or, in respect of amounts due to third parties by Funding
under paragraph (B), when due, prior to enforcement of the Funding Security, the
Cash Manager will, subject to the rules for application of Funding Available
Revenue Receipts (set out below), apply Funding Available Revenue Receipts in
the following order of priority (the "FUNDING PRE-ENFORCEMENT REVENUE PRIORITY
OF PAYMENTS"):

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

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

     (C)  third, towards payment of amounts due to the Cash Manager under the
          Cash Management Agreement (together with (to the extent not already
          inclusive) VAT on those amounts);

     (D)  fourth, in no order of priority between them, but in proportion to the
          respective amounts due, towards payment of amounts, if any, due to the
          Account Bank under the terms of the Bank Account Agreement and to the
          Corporate Services Provider under the Corporate Services Agreement;

     (E)  fifth, to pay, in no order of priority between them, but in proportion
          to the respective amounts due, to each Issuer an amount up to its
          Issuer Allocable

                                       18
<PAGE>

          Revenue Receipts in respect of interest and fees due on that Issuer's
          Intercompany Loan but not exceeding the aggregate amount of, and to be
          applied in the amounts and priorities set forth in, the Issuer
          Pre-Liquidity Payments for that Issuer.

     (F)  sixth, to pay, in no order of priority between them, but in proportion
          to the respective amounts due, such amount for each Issuer up to its
          Issuer Allocable Revenue Receipts as is necessary to replenish the
          Issuer Liquidity Reserve Fund, if any, established in respect of that
          Issuer up to the Issuer Liquidity Reserve Required Amount (to the
          extent that monies have been drawn from such Issuer Liquidity Reserve
          Fund to pay interest and fees due under the relevant Intercompany
          Loan);

     (G)  seventh, to pay, in no order of priority between them, but in
          proportion to the respective amounts due, to each Issuer an amount up
          to its Issuer Allocable Revenue Receipts in respect of interest and
          fees due on that Issuer's Intercompany Loan but not exceeding the
          aggregate amount of, and to be applied in the amounts and priorities
          set forth in, the Issuer Post-Liquidity Payments for that Issuer;

     (H)  eighth, to pay, in no order of priority between them, but in
          proportion to the respective amounts due, such amount for each Issuer
          up to its Issuer Allocable Revenue Receipts as is necessary to fund
          the Issuer Reserve Fund established in respect of that Issuer up to
          the Issuer Reserve Required Amount or to replenish such Issuer Reserve
          Fund up to the related Issuer Reserve Required Amount (to the extent
          that monies have been drawn from such Issuer Reserve Fund to pay
          interest and fees under the relevant Intercompany Loan);

     (I)  ninth, to pay in no order of priority between them, but in proportion
          to the respective amounts due, to each Issuer an amount up to its
          Issuer Allocable Revenue Receipts in respect of interest, principal
          (in the case of the Special Repayment Notes) and fees due on that
          Issuer's Intercompany Loan but not exceeding the aggregate amount of,
          and to be applied in the amounts and priorities set forth in, the
          Issuer Pre-Reserve Payments for that Issuer;

     (J)  tenth, in no order of priority between them, but in proportion to the
          respective amounts due, from Issuer Allocable Revenue Receipts, to
          credit the Funding Reserve Ledger in an amount up to the Funding
          Reserve Required Amount;

     (K)  eleventh, to pay to each Issuer, in no order of priority between them
          but in proportion to the respective amounts due, an amount up to its
          Issuer Allocable Revenue Receipts in respect of interest and fees due
          on that Issuer's Intercompany Loan but not exceeding the aggregate
          amount of, and to be

                                       19
<PAGE>

          applied in the amounts and priorities set forth in, the Issuer
          Post-Reserve Payments for that Issuer;

     (L)  twelfth, in no order of priority between them, but in proportion to
          the respective amounts due, from Issuer Allocable Revenue Receipts,
          towards payment of interest and principal amounts due to each Issuer
          Start-up Loan Provider under the relevant Issuer Start-up Loan
          Agreement;

     (M)  thirteenth, in no order of priority between them, but in proportion to
          the respective amounts due, to pay to each Issuer an amount up to its
          Issuer Allocable Revenue Receipts in respect of interest and fees and
          any other amount (if any) due on that Issuer's Intercompany Loan but
          not exceeding the aggregate amount of, and to be applied in the
          amounts and priorities set forth in, the Issuer Post Start-up Payments
          for that Issuer;

     (N)  fourteenth, to the extent required, to apply all Shared Issuer Revenue
          Receipts in the priorities set forth in items (E) through (M) above;

     (O)  fifteenth, towards payment to Funding of an amount equal to 0.01% per
          annum of the Funding Available Revenue Receipts, which amount will be
          retained by Funding as profit less corporation tax in respect of those
          profits provided for or paid at item (B) above;

     (P)  sixteenth, towards payment of any Deferred Contribution due to the
          Mortgages Trustee pursuant to the terms of the Mortgages Trust Deed;
          and

     (Q)  last, towards payment to the shareholders of Funding of any dividend
          declared by Funding.

PROVIDED THAT no amount will be applied in replenishing any of the reserve funds
held by Funding in respect of an Issuer under paragraphs (F) and/or (H) above
following an enforcement of the Issuer Security relating to that Issuer.

RULES FOR APPLICATION OF FUNDING AVAILABLE REVENUE RECEIPTS

     (1) Subject as provided in paragraphs (2) through (4) below, the portion of
     Issuer Allocable Revenue Receipts, if any, not required to be applied by an
     Issuer on a Payment Date to pay interest on the Notes or to credit the
     related Issuer Principal Deficiency Ledger or to pay any other costs and
     expenses due by that Issuer on that date pursuant to the relevant Issuer
     Priority of Payments, together with the portion of Issuer Allocable Revenue
     Receipts relating to all other Issuers not required to be so applied by
     those other Issuers on that Payment Date (excluding any Issuer Reserve Fund
     or Issuer Liquidity Reserve Fund (if any) of any Issuer), shall constitute
     "SHARED ISSUER REVENUE RECEIPTS". Shared Issuer Revenue Receipts will be

                                       20
<PAGE>

     reallocated by the Cash Manager and distributed on such Payment Date among
     the Issuers as payments of interest and fees under the applicable
     Intercompany Loans to the extent required to make payments of interest due
     on the Notes, to credit the related Issuer Principal Deficiency Ledgers and
     to pay other costs, expenses and third party amounts payable by the Issuers
     under the relevant Issuer Priority of Payments (but excluding principal
     payable under any Intercompany Loan). Such reallocation and distribution
     will continue to be made on such Payment Date until there are no remaining
     amounts of Shared Issuer Revenue Receipts to be reallocated and distributed
     on such Payment Date. Each Issuer will be entitled to receive a portion of
     the Shared Issuer Revenue Receipts equal to:

                                               Outstanding Principal Balance of
                                               Intercompany Loan of the Issuer
     Amount of Shared Issuer Revenue Receipts x---------------------------------
                                               Aggregate Outstanding Principal
                                               Balance of the Intercompany Loans
                                               of all Issuers

     (2) No Issuer shall be entitled to or shall receive any amount of Issuer
     Allocable Revenue Receipts from Funding on a Payment Date which is not
     required by that Issuer to make a payment on that date in accordance with
     the relevant Issuer Pre-Enforcement Revenue Priority of Payments or other
     relevant Issuer Priority of Payments which applies to that Issuer on that
     date, and the Cash Manager will take account of all of the funds which are
     or will become available to that Issuer on that Payment Date and which
     constitute Issuer Available Revenue Receipts (including any payments due
     under any Swap Agreement and any interest or other income received or to be
     received) for that Issuer for the purpose of making this determination.

     (3) Unless and until the Intercompany Loan of any Issuer has been repaid in
     full and Funding has no further liability under the relevant Intercompany
     Loan Agreement, amounts standing to the credit of the Issuer Reserve Ledger
     and the Issuer Liquidity Reserve Ledger, if any, established by Funding for
     that Issuer may only be utilized by Funding in making payments due under
     that Issuer's Intercompany Loan and may not be used in or towards the
     payment of any other liability of Funding. On the Payment Date following
     the repayment in full of the Intercompany Loan of that Issuer and provided
     that Funding has no further liability in respect of the relevant
     Intercompany Loan Agreement, any remaining amounts standing to the credit
     of the Issuer Reserve Ledger and the Issuer Liquidity Reserve Ledger, if
     any, of that Issuer will constitute Shared Issuer Revenue Receipts for the
     purpose of paragraph (1) above and may be utilized by Funding in paying any
     other liability of Funding subject to and in accordance with the relevant
     Funding Priority of Payments.

                                       21
<PAGE>

     (4) If on any Payment Date any Issuer Allocable Revenue Receipts and/or any
     Shared Issuer Revenue Receipts are paid to an Issuer and are applied by
     that Issuer, in reducing any deficiency recorded on the Issuer Principal
     Deficiency Ledger of that Issuer then the Issuer Allocable Revenue Receipts
     and/or Shared Issuer Revenue Receipts so applied shall constitute
     repayments of principal under the relevant Intercompany Loan and shall
     reduce the Outstanding Principal Balance of that Intercompany Loan
     accordingly.

                                       22
<PAGE>

                                     PART II

             FUNDING PRE-ENFORCEMENT PRINCIPAL PRIORITY OF PAYMENTS

On each Payment Date prior to enforcement of the Funding Security, the Cash
Manager will, subject to the rules for application of Funding Available
Principal Receipts set forth below, apply Funding Available Principal Receipts
in the following order of priority (the "FUNDING PRE-ENFORCEMENT PRINCIPAL
PRIORITY OF PAYMENTS"):

     (A)  first, to fund or replenish, as the case may be, the Issuer Liquidity
          Reserve Fund, if any, of each Issuer up to the Issuer Liquidity
          Reserve Required Amount but only from and to the extent of the Issuer
          Allocable Principal Receipts for that Issuer;

     (B)  second, to pay to (or, if required under that Issuer's Intercompany
          Loan, set aside for) each Issuer an amount up to its Issuer Allocable
          Principal Receipts in respect of principal due (or, if required under
          that Issuer's Intercompany Loan, to become due) on that Issuer's
          Intercompany Loan, which shall be an amount up to the aggregate amount
          of, and shall be applied in the amounts and priorities set forth in,
          the Issuer Principal Payments for that Issuer;

     (C)  last, to pay to (or, if required under that Issuer's Intercompany
          Loan, set aside for) each Issuer an amount up to its allocable portion
          of Shared Issuer Principal Receipts in respect of principal due (or,
          if required under that Issuer's Intercompany Loan, to become due) on
          that Issuer's Intercompany Loan, which in the case of the Issuer shall
          be an amount up to the aggregate amount of, and shall be applied in
          the amounts and priorities set forth in, the Issuer Principal Payments
          for that Issuer until there are no remaining Funding Available
          Principal Receipts on such Payment Date,

PROVIDED THAT no amount will be applied in replenishing the Issuer Liquidity
Reserve Fund held by Funding in respect of an Issuer under paragraph (A) above
following an enforcement of the Issuer Security relating to that Issuer.

RULES FOR APPLICATION OF FUNDING AVAILABLE PRINCIPAL RECEIPTS

     (1) On the Distribution Date immediately preceding such Payment Date, the
     Cash Manager will calculate the "ISSUER ALLOCABLE PRINCIPAL RECEIPTS" for
     each Issuer in respect of the relevant Payment Date which, subject as
     provided in paragraphs (2) through (7) below, is for any Issuer an amount
     which is equal to the lesser of:

          (a) (only if relevant) the principal amount due on the Intercompany
          Loan of such Issuer which is an amount equal to the Controlled
          Amortisation

                                       23
<PAGE>

          Amount due, if any, on the Payment Date immediately succeeding such
          Distribution Date; and

          (b) an amount equal to:

                                                Outstanding Principal Balance on
                                                such Issuer's Intercompany Loan
          Funding Available Principal Receipts x--------------------------------
                                                Aggregate Outstanding Principal
                                                Balance of the Intercompany
                                                Loans of all Issuers

     PROVIDED THAT,

     (a) subject as provided in paragraphs (2) through (7) below, for the
     purpose only of determining the amount of Issuer Allocable Principal
     Receipts which may be allocated and paid to that Issuer (but not to any
     other Issuer) in accordance with this paragraph (1), following an
     enforcement of the Issuer Security relating to that Issuer the amount so
     determined may be increased to the extent of the aggregate of any amounts
     standing to the credit of the Issuer Liquidity Reserve Ledger, if any, and
     the Issuer Reserve Ledger of that Issuer remaining on that Payment Date
     after the application of such reserve funds in accordance with the Funding
     Pre-Enforcement Revenue Priority of Payments; and

     (b) for the purposes only of determining the amount of Shared Issuer
     Principal Receipts in accordance with paragraph (6) below, Issuer Allocable
     Principal Receipts shall be an amount equal to the amount calculated in
     accordance with paragraph 1(b) above only and paragraph 1(a) above shall
     not apply.

     (2) If the Notes of any Issuer have become immediately due and payable as a
     result of the service of a Note Enforcement Notice or if the Intercompany
     Loan of any Issuer and the other Intercompany Loans of any other Issuers
     have become immediately due and payable as a result of the service of an
     Intercompany Loan Enforcement Notice or otherwise on any Payment Date
     following the occurrence of any Trigger Event, principal payments in
     respect of any Intercompany Loan may be made in excess of any Controlled
     Amortisation Amount and paragraph (1)(a) above shall no longer apply in
     relation to that Issuer and the amount of Issuer Allocable Principal
     Receipts payable to that Issuer on the relevant Payment Date may not exceed
     the amount determined under paragraph (1)(b) above but subject always to
     any increase in that amount as a result of the utilisation of the Issuer
     Reserve Fund and the Issuer Liquidity Reserve Fund (if any) following
     enforcement of the Issuer Security relating to that Issuer as provided in
     that paragraph.

     (3) For the purpose of determining the amount of Issuer Allocable Principal
     Receipts and/or any Shared Issuer Principal Receipts which may be paid to
     any Issuer on a Payment Date pursuant to paragraph (1) above or paragraph
     (6) below, the

                                       24
<PAGE>

     Outstanding Principal Balance of that Intercompany Loan shall be deemed to
     be reduced by the amount of:

          (a)  any deficiency recorded on the Issuer Principal Deficiency Ledger
               of that Issuer as at such Payment Date, but only to the extent
               that such deficiency has arisen as a result of (i) losses on the
               Mortgage Loans allocated by Funding to that Issuer and/or (ii)
               the application of Funding Available Principal Receipts to fund
               the Issuer Liquidity Reserve Fund of that Issuer but not as a
               result of any other principal deficiency of that Issuer; and

          (b)  the Outstanding Principal Balance as at such Payment Date of any
               Special Repayment Notes issued by that Issuer.

     (4) The amount of Funding Available Principal Receipts payable to each
     Issuer on a Payment Date will be reduced by an amount equal to the
     aggregate of the Issuer Available Revenue Receipts of that Issuer which are
     to be applied on that Payment Date in reducing deficiencies recorded on the
     Issuer Principal Deficiency Ledgers, but only to the extent that the Issuer
     Available Revenue Receipts which are to be so applied on that Payment Date
     would not otherwise be payable as principal on the relevant Notes on such
     Payment Date.

     (5) No Issuer shall be entitled to, or shall receive on a Payment Date, any
     amount of Issuer Allocable Principal Receipts from Funding which is not
     required by that Issuer to make a payment on that date in accordance with
     the relevant Issuer Pre-Enforcement Principal Priority of Payments or
     otherwise to make a payment of principal on the Notes.

     (6) The portion of Issuer Allocable Principal Receipts, if any, not
     required to be applied by the Issuer to pay principal on the Notes on a
     Payment Date together with the portion of Issuer Allocable Principal
     Receipts relating to all other Issuers not required to be so applied by
     such other Issuers (or otherwise required to be set aside by Funding for
     any Issuer) on that Payment Date (excluding the amount of any Issuer
     Reserve Fund or Issuer Liquidity Reserve Fund (if any) of any Issuer),
     shall constitute "SHARED ISSUER PRINCIPAL RECEIPTS". Shared Issuer
     Principal Receipts will be reallocated by the Cash Manager and distributed
     on such Payment Date among the Issuers as payments of principal under the
     applicable Intercompany Loans to the extent required to make payments of
     principal due on the relevant Notes. Such reallocation and distribution
     will continue to be made on such Payment Date until there are no remaining
     amounts of Shared Issuer Principal Receipts to be reallocated and
     distributed on such Payment Date. Save as provided in paragraph (2) above,
     each Issuer will be entitled to receive a portion of the Shared Issuer
     Principal Receipts equal to:

                                       25
<PAGE>

                                       Outstanding Principal Balance of the
                                       Intercompany Loan of the Issuer
     Shared Issuer Principal Receipts x-----------------------------------------
                                       Aggregate Outstanding Principal Balance
                                       of the Intercompany Loans of all Issuers

     (7) The repayment of any Intercompany Loan prior to the occurrence of a
     Trigger Event, enforcement of the Issuer Security by the Note Trustee under
     the Issuer Deed of Charge or enforcement of the Funding Security by the
     Security Trustee under the Funding Deed of Charge will be made in
     accordance with the terms of the relevant Intercompany Loan Agreement.

                                       26
<PAGE>

                                    PART III

                  FUNDING POST-ENFORCEMENT PRIORITY OF PAYMENTS

At any time after the security created under the Funding Deed of Charge has
become enforceable in accordance with Clause 7.2 (Enforceable) thereof and
provided that the Intercompany Loan Enforcement Notice has not been withdrawn,
all Funding Available Revenue Receipts, Funding Available Principal Receipts and
all other monies paid to or received or recovered by or on behalf of Funding or
the Security Trustee or any Receiver appointed on its behalf, including all
proceeds following any sale, realisation or enforcement of the security created
under the Funding Deed of Charge and all amounts not previously distributed
and/or standing to the credit of any Funding Bank Account and all monies
standing to the credit of the Funding Reserve Ledger (if any) shall (if not
already received by the Security Trustee) be paid to and held by the Security
Trustee on trust to apply the same (save to the extent required otherwise by
applicable law) in accordance with the rules and the order of priority of the
Funding Post-Enforcement Priority of Payments.

The Security Trustee (or the Cash Manager on its behalf) will, subject to the
rules for application of Funding Available Principal Receipts and Funding
Available Revenue Receipts set out in Part I and Part II of this Schedule, apply
all such amounts received or recovered following enforcement of the Funding
Security on each Payment Date in accordance with the following order of priority
(the "FUNDING POST-ENFORCEMENT PRIORITY OF PAYMENTS"):

     (A)  first, to pay amounts due to the Security Trustee and any Receiver
          appointed by the Security Trustee, together with interest and (to the
          extent not already inclusive) VAT on those amounts, and to provide for
          any amounts due or to become due to the Security Trustee and the
          Receiver in the following Interest Period under the Funding Deed of
          Charge or any other Transaction Document;

     (B)  second, towards payment of amounts due and payable to the Cash Manager
          and any costs, charges, liabilities and expenses then due or to become
          due and payable to the Cash Manager under the Cash Management
          Agreement, together with (to the extent not already inclusive) VAT on
          those amounts;

     (C)  third, (in no order of priority between them but in proportion to the
          respective amounts due) towards payment of amounts (if any) due to the
          Account Bank under the terms of the Bank Account Agreement and to the
          Corporate Services Provider under the Corporate Services Agreement;

     (D)  fourth, (in no order of priority between them but in proportion to the
          respective amounts due) to each Issuer its share of Issuer Allocable
          Revenue Receipts and Issuer Allocable Principal Receipts towards
          payment of amounts of interest, principal and fees due to such Issuer
          under such Issuer's

                                       27
<PAGE>

          Intercompany Loan Agreement, which in the case of that Issuer shall be
          up to the aggregate amount of the amounts, and shall be applied in the
          amounts and priorities, as set forth in the Issuer Post-Enforcement
          Priority of Payments for that Issuer;

     (E)  fifth, towards payment of amounts due to each Issuer Start-up Loan
          Provider under the relevant Issuer Start-up Loan Agreement;

     (F)  sixth, towards payment of any Deferred Contribution due to the
          Mortgages Trustee under the Mortgages Trust Deed; and

     (G)  last, to pay any amount remaining following the application of
          principal and revenue set forth in paragraphs (A) through (F) above,
          to Funding,

Provided that for the avoidance of doubt funds standing to the credit of any
Issuer Reserve Fund or Issuer Liquidity Reserve Fund of any Issuer shall only be
applied in reduction of the liabilities owing under the Intercompany Loan of
such Issuer.

                                       28

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