Document:

EXHIBIT 4.1

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              MERRILL LYNCH MORTGAGE INVESTORS TRUST, SERIES 2005-2

                                     Issuer,

                             WELLS FARGO BANK, N.A.

                            Securities Administrator

                                       and

                       HSBC BANK USA, NATIONAL ASSOCIATION

                                Indenture Trustee

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

                                    INDENTURE

                           Dated as of August 31, 2005

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

                              MORTGAGE-BACKED NOTES

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

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                                TABLE OF CONTENTS

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Section                                                                                      Page
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                                    ARTICLE I
                                   DEFINITIONS

Section 1.01   Definitions...............................................................      2
Section 1.02   Incorporation by Reference of Trust Indenture Act.........................      2
Section 1.03   Rules of Construction.....................................................      2

                                   ARTICLE II
                           ORIGINAL ISSUANCE OF NOTES

Section 2.01   Form......................................................................      4
Section 2.02   Execution, Authentication and Delivery....................................      4

                                   ARTICLE III
                                    COVENANTS

Section 3.01   Payment Account...........................................................      5
Section 3.02   Existence.................................................................      5
Section 3.03   Payment of Principal and Interest.........................................      5
Section 3.04   Protection of Trust Estate................................................      9
Section 3.05   Opinions as to Trust Estate...............................................     10
Section 3.06   Performance of Obligations................................................     10
Section 3.07   Negative Covenants........................................................     11
Section 3.08   Annual Statement as to Compliance.........................................     11
Section 3.09   [Reserved]................................................................     11
Section 3.10   Representations and Warranties Concerning the Mortgage Loans..............     11
Section 3.11   Investment Company Act....................................................     12
Section 3.12   Issuer May Consolidate, etc...............................................     12
Section 3.13   Successor or Transferee...................................................     14
Section 3.14   No Other Business.........................................................     14
Section 3.15   No Borrowing..............................................................     14
Section 3.16   Guarantees, Loans, Monthly Advances and Other Liabilities.................     14
Section 3.17   Capital Expenditures......................................................     14
Section 3.18   Determination of Note Index...............................................     14
Section 3.19   Restricted Payments.......................................................     15
Section 3.20   Notice of Events of Default...............................................     15
Section 3.21   Further Instruments and Acts..............................................     15
Section 3.22   Reserved..................................................................     16
Section 3.23   Certain Representations Regarding the Trust Estate........................     16
Section 3.24   Allocation of Realized Losses.............................................     16
Section 3.25   Permitted Withdrawals and Transfers from the Payment Account..............     18
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<S>                                                                                           <C>
                                   ARTICLE IV
               THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

Section 4.01   The Notes.................................................................     21
Section 4.02   Registration of and Limitations on Transfer and Exchange of Notes;
               Appointment of Note Registrar and Certificate Registrar...................     21
Section 4.03   Mutilated, Destroyed, Lost or Stolen Notes................................     24
Section 4.04   Persons Deemed Owners.....................................................     24
Section 4.05   Cancellation..............................................................     25
Section 4.06   Form of Notes.............................................................     25
Section 4.07   Notices to Depository.....................................................     26
Section 4.08   Definitive Notes..........................................................     26
Section 4.09   Tax Treatment.............................................................     27
Section 4.10   Satisfaction and Discharge of Indenture...................................     27
Section 4.11   Application of Trust Money................................................     28
Section 4.12   [Reserved]................................................................     28
Section 4.13   Repayment of Monies Held by Paying Agent..................................     28
Section 4.14   Temporary Notes...........................................................     28
Section 4.15   Representation Regarding ERISA............................................     29

                                    ARTICLE V
                              DEFAULT AND REMEDIES

Section 5.01   Events of Default.........................................................     31
Section 5.02   Acceleration of Maturity; Rescission and Annulment........................     31
Section 5.03   Collection of Indebtedness and Suits for Enforcement by Indenture
               Trustee...................................................................     32
Section 5.04   Remedies; Priorities......................................................     34
Section 5.05   Optional Preservation of the Trust Estate.................................     35
Section 5.06   Limitation of Suits.......................................................     35
Section 5.07   Unconditional Rights of Noteholders To Receive Principal and Interest.....     36
Section 5.08   Restoration of Rights and Remedies........................................     36
Section 5.09   Rights and Remedies Cumulative............................................     37
Section 5.10   Delay or Omission Not a Waiver............................................     37
Section 5.11   Control By Noteholders....................................................     37
Section 5.12   Waiver of Past Defaults...................................................     37
Section 5.13   Undertaking for Costs.....................................................     38
Section 5.14   Waiver of Stay or Extension Laws..........................................     38
Section 5.15   Sale of Trust Estate......................................................     38
Section 5.16   Action on Notes...........................................................     40

                                   ARTICLE VI
             THE INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

Section 6.01   Duties of Indenture Trustee and Securities Administrator..................     41
Section 6.02   Rights of Indenture Trustee and Securities Administrator..................     42
Section 6.03   Individual Rights of Indenture Trustee....................................     44
Section 6.04   [Reserved]................................................................     44
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Section 6.05   Indenture Trustee's and Securities Administrator's Disclaimer.............     45
Section 6.06   Notice of Event of Default................................................     45
Section 6.07   Reports to Holders and Tax Administration.................................     45
Section 6.08   Compensation..............................................................     45
Section 6.09   Replacement of Indenture Trustee and the Securities Administrator.........     46
Section 6.10   Successor Indenture Trustee and Securities Administrator by Merger........     47
Section 6.11   Appointment of Co-Indenture Trustee or Separate Indenture Trustee.........     47
Section 6.12   Eligibility; Disqualification.............................................     48
Section 6.13   [Reserved]................................................................     49
Section 6.14   Representations and Warranties............................................     49
Section 6.15   Directions to Indenture Trustee and the Securities Administrator..........     49
Section 6.16   The Agents................................................................     49

                                   ARTICLE VII
                         NOTEHOLDERS' LISTS AND REPORTS

Section 7.01   Issuer To Furnish Securities Administrator Trustee Names and Addresses
               of Noteholders ...........................................................     50
Section 7.02   Preservation of Information; Communications to Noteholders................     50
Section 7.03   Financial Information.....................................................     50
Section 7.04   Statements to Noteholders.................................................     50

                                  ARTICLE VIII
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

Section 8.01   Collection of Money.......................................................     53
Section 8.02   Officer's Certificate.....................................................     53
Section 8.03   Termination Upon Distribution to Noteholders..............................     53
Section 8.04   Release of Trust Estate...................................................     53
Section 8.05   Surrender of Notes Upon Final Payment.....................................     54
Section 8.06   Optional Redemption of the Mortgage Loans.................................     54

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

Section 9.01   Supplemental Indentures Without Consent of Noteholders....................     55
Section 9.02   Supplemental Indentures With Consent of Noteholders.......................     56
Section 9.03   Execution of Supplemental Indentures......................................     58
Section 9.04   Effect of Supplemental Indenture..........................................     58
Section 9.05   Conformity with Trust Indenture Act.......................................     58
Section 9.06   Reference in Notes to Supplemental Indentures.............................     58

                                    ARTICLE X
                                  MISCELLANEOUS

Section 10.01  Compliance Certificates and Opinions, etc.................................     59
Section 10.02  Form of Documents Delivered to Indenture Trustee..........................     60
Section 10.03  Acts of Noteholders.......................................................     61
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<S>                                                                                           <C>
Section 10.04  Notices etc., to Indenture Trustee Issuer, Securities Administrator and
               Rating Agencies ..........................................................     61
Section 10.05  Notices to Noteholders; Waiver............................................     62
Section 10.06  Conflict with Trust Indenture Act.........................................     63
Section 10.07  Effect of Headings........................................................     63
Section 10.08  Successors and Assigns....................................................     63
Section 10.09  Separability..............................................................     63
Section 10.10  Legal Holidays............................................................     63
Section 10.11  GOVERNING LAW.............................................................     63
Section 10.12  Counterparts..............................................................     63
Section 10.13  Recording of Indenture....................................................     63
Section 10.14  Issuer Obligation.........................................................     63
Section 10.15  No Petition...............................................................     63
Section 10.16  Inspection................................................................     63
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EXHIBITS

     Exhibit A-1   --   Form of Class A Notes
     Exhibit A-2   --   Form of Class X Notes
     Exhibit A-3   --   Form of Class M Notes and Class B Notes
     Exhibit B     --   Mortgage Loan Schedule
     Exhibit C     --   Form of Rule 144A Investment Representation Letter
     Exhibit D     --   Form of Transferee Letter
     Exhibit E     --   Form of Transferor Certificate
     Exhibit F     --   Form of Transferee Letter (REIT)
     Exhibit G     --   Form of Transferor Letter
     Exhibit H     --   Form of Mortgage Loan Purchase Agreement
     Exhibit I     --   Tax Transfer Certificate
     Appendix A    --   Definitions

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                 RECONCILIATION AND TIE BETWEEN TRUST INDENTURE
                      ACT OF 1939 AND INDENTURE PROVISIONS*

Act Section     Indenture Section

                                                                  Indenture
Trust Indenture Act Section                                        Section
---------------------------                                    -----------------

310(a)(1)                                                                   6.11
       (a)(2)...............................................                6.11
       (a)(3)...............................................                6.10
       (a)(4)...............................................      Not Applicable
       (a)(5)...............................................                6.11
       (b)..................................................          6.08, 6.11
       (c)..................................................      Not Applicable
311(a)......................................................                6.12
       (b)..................................................                6.12
       (c)..................................................      Not Applicable
312(a)......................................................       7.01, 7.02(a)
       (b)..................................................             7.02(b)
       (c)..................................................             7.02(c)
313(a)......................................................      Not Applicable
       (b)..................................................      Not Applicable
       (c)..................................................      Not Applicable
       (d)..................................................      Not Applicable
314(a)......................................................                3.10
       (b)..................................................                3.07
       (c)(1)...............................................   8.05(c), 10.01(a)
       (c)(2)...............................................   8.05(c), 10.01(a)
       (c)(3)...............................................      Not Applicable
       (d)(1)...............................................   8.05(c), 10.01(b)
       (d)(2)...............................................   8.05(c), 10.01(b)
       (d)(3)...............................................   8.05(c), 10.01(b)
       (e)..................................................            10.01(a)
315(a)......................................................             6.01(b)
       (b)..................................................                6.05
       (c)..................................................             6.01(a)
       (d)..................................................             6.01(c)
       (d)(1)...............................................             6.01(c)
       (d)(2)...............................................             6.01(c)
       (d)(3)...............................................             6.01(c)
       (e)..................................................                5.13
316(a)(1)(A)................................................                5.11
316(a)(1)(B)................................................                5.12
316(a)(2)...................................................      Not Applicable
316(b)......................................................                5.07
317(a)(1)...................................................                5.04

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                                                                  Indenture
Trust Indenture Act Section                                        Section
---------------------------                                    -----------------
317(a)(2)...................................................             5.03(d)
317(b)......................................................          3.03(a)(i)
318(a)......................................................               10.07

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      This Indenture, dated as of August 31, 2005, is entered into among Merrill
Lynch Mortgage  Investors Trust,  Series 2005-2, a Delaware  statutory trust, as
Issuer (the "Issuer"),  Wells Fargo Bank, N.A., as Securities Administrator (the
"Securities   Administrator")  and  HSBC  Bank  USA,  National  Association,  as
Indenture Trustee (the "Indenture Trustee").

                                WITNESSETH THAT:

      Each party hereto agrees as follows for the benefit of the other party and
for the equal and ratable benefit of the Holders of the Issuer's Mortgage-Backed
Notes, Series MLCC 2005-2 (the "Notes").

                                 GRANTING CLAUSE

      The Issuer hereby Grants to the Indenture  Trustee at the Closing Date, as
trustee for the benefit of the Holders of the Notes,  all of the Issuer's right,
title and interest in and to, whether now existing or hereafter created, (a) the
Mortgage  Loans and all  proceeds  thereof  and all  rights  under  the  Related
Documents;  (b) all funds on deposit  from time to time in the  Master  Servicer
Collection  Account,  excluding any investment  income from such funds;  (c) all
funds on  deposit  from time to time in the  Payment  Account  and all  proceeds
thereof;  (d) any REO  Property;  (e) all  rights  under (I) the  Mortgage  Loan
Purchase  Agreement as assigned to the Issuer, to the extent provided in Section
2.03(a)  of the Sale  and  Servicing  Agreement,  (II)  the  Required  Insurance
Policies  and any  amounts  paid or payable by the insurer  under any  Insurance
Policy (to the extent the  mortgagee  has a claim  thereto) and (III) the rights
with respect to the Servicing Agreements,  each as assigned to the Issuer by the
related Assignment  Agreement;  and (f) all present and future claims,  demands,
causes and choses in action in  respect of any or all of the  foregoing  and all
payments on or under,  and all proceeds of every kind and nature  whatsoever  in
respect of, any or all of the  foregoing  and all payments on or under,  and all
proceeds  of  every  kind  and  nature  whatsoever  in the  conversion  thereof,
voluntary or involuntary, into cash or other liquid property, all cash proceeds,
accounts,  accounts receivable,  notes,  drafts,  acceptances,  checks,  deposit
accounts,  rights  to  payment  of any  and  every  kind,  and  other  forms  of
obligations  and  receivables,  instruments and other property which at any time
constitute  all  or  part  of or are  included  in  the  proceeds  of any of the
foregoing (collectively, the "Trust Estate" or the "Collateral").

      The foregoing Grant is made in trust to secure the payment of principal of
and interest on, and any other amounts  owing in respect of, the Notes,  subject
to the priority set forth herein,  and to secure  compliance with the provisions
of this Indenture, all as provided in this Indenture.

      The Indenture  Trustee,  as trustee on behalf of the Holders of the Notes,
acknowledges  such Grant,  accepts the trust under this  Indenture in accordance
with the provisions  hereof and each of the Indenture Trustee and the Securities
Administrator  agree to perform their respective duties as Indenture Trustee and
Securities Administrator as required herein.

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                                    ARTICLE I

                                   DEFINITIONS

      Section 1.01  Definitions.  For all purposes of this Indenture,  except as
otherwise  expressly  provided herein or unless the context otherwise  requires,
capitalized  terms not otherwise defined herein shall have the meanings assigned
to such  terms  in the  Definitions  attached  hereto  as  Appendix  A which  is
incorporated by reference herein.  All other capitalized terms used herein shall
have the meanings specified herein.

      Section 1.02  Incorporation by Reference of Trust Indenture Act.  Whenever
this Indenture refers to a provision of the Trust Indenture Act (the "TIA"), the
provision is incorporated by reference in and made a part of this Indenture. The
following TIA terms used in this Indenture have the following meanings:

      "Commission" means the Securities and Exchange Commission.

      "indenture securities" means the Notes.

      "indenture security holder" means a Noteholder.

      "indenture to be qualified" means this Indenture.

      "indenture  trustee"  or  "institutional   trustee"  means  the  Indenture
Trustee.

      "obligor"  on the  indenture  securities  means the  Issuer  and any other
obligor on the indenture securities.

      All other TIA terms used in this  Indenture  that are  defined by the TIA,
defined by TIA reference to another statute or defined by Commission  rules have
the meanings assigned to them by such definitions.

      Section 1.03 Rules of Construction. Unless the context otherwise requires:

            (i)   a term has the meaning assigned to it;

            (ii)  an  accounting  term not  otherwise  defined  has the  meaning
assigned to it in accordance with generally accepted accounting principles as in
effect from time to time;

            (iii) "or" is not exclusive;

            (iv)  "including" means including without limitation;

            (v)   words in the  singular  include  the  plural  and words in the
plural include the singular; and

            (vi)  any  agreement,  instrument or statute  defined or referred to
herein or in any  instrument or  certificate  delivered in  connection  herewith
means  such  agreement,  instrument  or  statute  as from time to time  amended,
modified or supplemented and includes (in the case of

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agreements or instruments) references to all attachments thereto and instruments
incorporated  therein;  references  to  a  Person  are  also  to  its  permitted
successors and assigns.

                                       3

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                                   ARTICLE II

                           ORIGINAL ISSUANCE OF NOTES

      Section 2.01 Form.  The Class 1-A,  Class 2-A,  Class 3-A,  Class X, Class
M-1, Class M-2,  Class M-3,  Class B-1, Class B-2 and Class B-3 Notes,  together
with the Securities Administrator's  certificate of authentication,  shall be in
substantially the form set forth in Exhibits A-1, A-2 and A-3 to this Indenture,
respectively,  with such appropriate  insertions,  omissions,  substitutions and
other variations as are required or permitted by this Indenture.

      The Notes  shall be  typewritten,  printed,  lithographed  or  engraved or
produced by any  combination  of these methods  (with or without steel  engraved
borders).

      The  terms of the Notes set  forth in  Exhibits  A-1,  A-2 and A-3 to this
Indenture are part of the terms of this Indenture.

      Section 2.02 Execution,  Authentication  and Delivery.  The Notes shall be
executed  on  behalf  of the  Issuer  by any of  its  Authorized  Officers.  The
signature  of any  such  Authorized  Officer  on the  Notes  may  be  manual  or
facsimile.

      Notes bearing the manual or facsimile signature of individuals who were at
any  time   Authorized   Officers   of  the  Issuer   shall  bind  the   Issuer,
notwithstanding  that such  individuals  or any of them have ceased to hold such
offices prior to the  authentication  and delivery of such Notes or did not hold
such offices at the date of such Notes.

      The Securities  Administrator  shall upon Issuer Request  authenticate and
deliver each Class of Notes for original issue in an aggregate initial principal
amount equal to the Initial Note Principal  Balance or Initial  Notional Amount,
as applicable, for such Class of Notes.

      Each of the Notes shall be dated the date of its authentication. The Class
1-A,  Class 2-A and Class 3-A Notes  shall be issuable  as  registered  Notes in
book-entry  form and the Notes shall be issuable  in the  minimum  initial  Note
Principal  Balances  of  $100,000  and in  integral  multiples  of $1 in  excess
thereof.  The Class X Notes shall be issuable  as  registered  Notes in physical
form and the Notes shall be issuable in the minimum  initial  Notional Amount of
$100,000 and in integral multiples of $1 in excess thereof. The Class M-1, Class
M-2,  Class M-3,  Class B-1,  Class B-2 and Class B-3 Notes shall be issuable as
registered Notes in physical form and the Notes shall be issuable in the minimum
initial Note Principal Balances or Notional Amounts, as applicable,  of $100,000
and in integral multiples of $1 in excess thereof.

      No Note shall be entitled to any benefit under this  Indenture or be valid
or obligatory  for any purpose,  unless there appears on such Note a certificate
of authentication  substantially in the form provided for herein executed by the
Securities  Administrator  by the  manual  signature  of  one of its  authorized
signatories,  and such certificate  upon any Note shall be conclusive  evidence,
and the only evidence,  that such Note has been duly authenticated and delivered
hereunder.

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                                   ARTICLE III

                                    COVENANTS

      Section 3.01 Payment  Account.  (a) On or prior to the Closing  Date,  the
Issuer shall cause the Securities  Administrator  to establish and maintain,  in
the name of the Securities Administrator, for the benefit of the Noteholders and
the Certificate  Paying Agent, on behalf of the  Certificateholder,  the Payment
Account.

      (b)   The  Securities  Administrator  shall,  subject to the terms of this
paragraph,  deposit in the  Payment  Account,  on the same day as it is received
from  the  Master   Servicer,   each  remittance   received  by  the  Securities
Administrator  on each  Payment  Date.  On each  Payment  Date,  the  Securities
Administrator  shall  distribute  all amounts on deposit in the Payment  Account
(other  than  amounts  payable  to the  Holder  of the  Trust  Certificates)  to
Noteholders in respect of the Notes,  and in its capacity as Certificate  Paying
Agent,  to the  Certificateholder  in the order of priority set forth in Section
3.03 (except as otherwise provided in Section 5.04(b)).

      (c)   All  monies  deposited  from  time to time  in the  Payment  Account
pursuant to the Sale and Servicing  Agreement and all deposits  therein pursuant
to this  Indenture are for the benefit of the  Noteholders  and the  Certificate
Paying Agent, on behalf of the Certificateholder.

      Section 3.02 Existence. The Issuer will keep in full effect its existence,
rights  and  franchises  as a  statutory  trust  under  the laws of the State of
Delaware  (unless it becomes,  or any successor  Issuer hereunder is or becomes,
organized  under the laws of any other state or of the United States of America,
in which case the Issuer  will keep in full  effect  its  existence,  rights and
franchises  under  the laws of such  other  jurisdiction)  and will  obtain  and
preserve its  qualification  to do business in each  jurisdiction  in which such
qualification   is  or  shall  be   necessary   to  protect  the   validity  and
enforceability  of this  Indenture,  the  Notes  and each  other  instrument  or
agreement included in the Trust Estate.

      Section 3.03 Payment of Principal and Interest.  (a) On each Payment Date,
and to the extent of the funds in the Payment Account  available  therefor,  the
Group I Available Funds,  Group II Available Funds and Group III Available Funds
will be distributed by the Securities Administrator as follows:

(I)   On each Payment  Date,  the Group I Available  Funds for such Payment Date
      shall be distributed as follows:

      (A)   first,  from the Group I Interest Funds, to the Class 1-A Notes, the
            Accrued Note  Interest for such Class for such Payment Date (subject
            to Net Interest Shortfalls allocated to such Class);

      (B)   second,  from the remaining Group I Interest Funds, to the Class 1-A
            Notes,  any Accrued Note Interest  thereon  remaining  undistributed
            from any previous Payment Dates, with accrued interest thereon;

      (C)   third,  from the Group I Principal Funds, to the Class 1-A Notes, in
            reduction of the Note Principal Balance thereof,  the Senior Optimal
            Principal  Amount for such

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            Class  for such  Payment  Date,  until  the Note  Principal  Balance
            thereof has been reduced to zero; and

      (D)   fourth,  from the remaining Group I Interest Funds, to the Class 1-A
            Notes,  in an amount  equal to any Basis  Risk  Shortfall  Carryover
            Amounts on such Class for such Payment Date.

(II)  On each Payment Date,  the Group II Available  Funds for such Payment Date
      shall be distributed as follows:

      (A)   first,  from Group II Interest  Funds,  to the Class 2-A Notes,  the
            Accrued Note  Interest for such Class for such Payment Date (subject
            to Net Interest Shortfalls allocated to such Class);

      (B)   second, from the remaining Group II Interest Funds, to the Class 2-A
            Notes,  any Accrued Note Interest  thereon  remaining  undistributed
            from any previous Payment Dates, with accrued interest thereon;

      (C)   third, from the Group II Principal Funds, to the Class 2-A Notes, in
            reduction of the Note Principal Balance thereof,  the Senior Optimal
            Principal  Amount for such Class for such  Payment  Date,  until the
            Note Principal Balance thereof has been reduced to zero; and

      (D)   fourth, from the remaining Group II Interest Funds, to the Class 2-A
            Notes,  in an amount  equal to any Basis  Risk  Shortfall  Carryover
            Amounts on such Class for such Payment Date.

(III) On each Payment Date, the Group III Available  Funds for such Payment Date
      shall be distributed as follows:

      (A)   first,  from Group III Interest Funds,  to the Class 3-A Notes,  the
            Accrued Note  Interest for such Class for such Payment Date (subject
            to Net Interest Shortfalls allocated to such Class);

      (B)   second,  from the remaining  Group III Interest  Funds, to the Class
            3-A Notes, any Accrued Note Interest thereon remaining undistributed
            from any previous Payment Dates, with accrued interest thereon;

      (C)   third,  from the Group III Principal  Funds, to the Class 3-A Notes,
            in  reduction  of the Note  Principal  Balance  thereof,  the Senior
            Optimal Principal Amount for such Class for such Payment Date, until
            the Note Principal Balance thereof has been reduced to zero; and

      (D)   fourth,  from the remaining  Group III Interest  Funds, to the Class
            3-A Notes, in an amount equal to any Basis Risk Shortfall  Carryover
            Amounts on such Class for such Payment Date.

                                       6

<PAGE>

(IV)  On each  Payment  Date,  the Group I Available  Funds,  Group II Available
      Funds and Group III Available  Funds  remaining after the payments made in
      clauses  (I) and (II) for  such  Payment  Date  shall  be  distributed  as
      follows:

      (A)   first,  from any remaining  Interest Funds, to the Class X Notes, in
            an amount equal to the Accrued Note  Interest on such Class for such
            Payment Date (subject to Net Interest  Shortfalls  allocated to such
            Class);

      (B)   second,  sequentially  to the Class M-1, Class M-2, Class M-3, Class
            B-1, Class B-2 and Class B-3 Notes,  in that order,  up to an amount
            equal to and in the following order with respect to each such Class:
            (a) the Accrued Note Interest thereon for such Payment Date (subject
            to Net Interest Shortfalls allocated to such Class) to the extent of
            any remaining  Interest Funds; (b) any Accrued Note Interest thereon
            remaining  undistributed  from previous Payment Dates,  with accrued
            interest thereon, to the extent of any remaining Interest Funds; and
            (c)  such  Class's  Allocable  Share  of  the  Subordinate   Optimal
            Principal  Amount for such Payment  Date, in each case to the extent
            of any  remaining  Principal  Funds  and  until  the Note  Principal
            Balance thereof has been reduced to zero; and

      (C)   third, to the Certificate Paying Agent for distribution to the Trust
            Certificates as set forth in the Trust Agreement.

      (b)   On each  Payment  Date  prior to the  Cross-Over  Date but after the
reduction  of the Note  Principal  Balance of all of the Senior  Notes of a Note
Group to zero,  the remaining  Class or Classes of Senior Notes in the remaining
Note Group will be entitled  to receive in  reduction  of their Notes  Principal
Balances, pro rata based upon their Note Principal Balances immediately prior to
such Payment  Date,  in addition to any  Principal  Prepayments  related to such
remaining  Senior Notes'  respective  Loan Group allocated to such Senior Notes,
100%  of the  Principal  Prepayments  on any  Mortgage  Loan in the  Loan  Group
relating to the Class or Classes of Senior Notes of the fully repaid Note Group;
provided,  however,  that  if  (A)  the  weighted  average  of  the  Subordinate
Percentages  on such  Payment  Date  equals or  exceeds  two  times the  initial
weighted average of the Subordinate  Percentages and (B) the aggregate Scheduled
Principal  Balance of the Mortgage Loans  delinquent 60 days or more  (including
for this purpose any such  Mortgage  Loans in  foreclosure  and  bankruptcy  and
Mortgage  Loans with  respect to which the related  Mortgaged  Property has been
acquired by the Trust),  averaged  over the last six months,  as a percentage of
the aggregate Note Principal  Balance of the  Subordinate  Notes does not exceed
50%, then the additional allocation of Principal Prepayments to the Senior Notes
in  accordance  with this clause (b) will not be made and 100% of the  Principal
Prepayments  on any Mortgage Loan in the Loan Group relating to the fully repaid
Class or Classes of Senior Notes will be allocated to the Subordinate Notes.

      (c)   If on any Payment Date on which the aggregate Note Principal Balance
of Senior  Notes in a Note Group would be greater than the  aggregate  Scheduled
Principal  Balance  of the  Mortgage  Loans in the  related  Loan  Group and any
Subordinate  Notes are still  outstanding,  in each case after giving  effect to
distributions  to be made on such Payment  Date,  (A) 100% of amounts  otherwise
allocable to the  Subordinate  Notes in respect of principal will be distributed
to such Class or  Classes of Senior  Notes in  reduction  of the Note  Principal
Balances  thereof,  until the aggregate Note Principal  Balance of such Class or
Classes of Senior Notes is an

                                       7

<PAGE>

amount equal to the aggregate  Scheduled Principal Balance of the Mortgage Loans
in the related Loan Group, and (B) the Accrued Note Interest otherwise allocable
to the Subordinate Notes on such Payment Date will be reduced, if necessary, and
distributed  to such Class or Classes of Senior  Notes in an amount equal to the
Accrued Note  Interest for such Payment Date on the excess of (x) the  aggregate
Note  Principal  Balance of such  Class or Classes of Senior  Notes over (y) the
aggregate  Scheduled Principal Balance of the Mortgage Loans in the related Loan
Group. Any such reduction in the Accrued Note Interest on the Subordinate  Notes
will be  allocated  to such  Subordinate  Notes  commencing  with  the  Class of
Subordinate Notes with the lowest payment priority.

      (d)   No Accrued Note  Interest  will be payable with respect to any Class
of Notes after the Payment Date on which the Note Principal  Balance or Notional
Amount of such Note has been reduced to zero.

      (e)   If on any Payment  Date the  Interest  Funds for the Senior Notes in
any Note Group is less than the Accrued  Note  Interest  on the  related  Senior
Notes for such Payment Date prior to reduction for Net Interest  Shortfalls  and
the interest portion of Realized  Losses,  the shortfall will be allocated among
the holders of each Class of Senior  Notes in such Note Group in  proportion  to
the  respective  amounts of Accrued Note Interest that would have been allocated
thereto in the absence of such Net Interest  Shortfalls  and/or  Realized Losses
for such Payment Date. In addition,  the amount of any interest  shortfalls will
constitute  unpaid Accrued Note Interest and will be distributable to holders of
the Notes of the related Classes entitled to such amounts on subsequent  Payment
Dates, to the extent of the applicable  Available  Funds after current  interest
distributions as required herein.  Any such amounts so carried forward will bear
interest.  Shortfalls in interest  payments will not be offset by a reduction in
the servicing  compensation of the Master  Servicer or otherwise,  except to the
extent of applicable Compensating Interest Payments.

      (f)   Each distribution with respect to a Book-Entry Note shall be paid to
the Depository,  as Holder thereof,  and the Depository shall be responsible for
crediting  the amount of such  distribution  to the  accounts of its  Depository
Participants  in  accordance  with  its  normal   procedures.   Each  Depository
Participant  shall be responsible for disbursing  such  distribution to the Note
Owners that it represents and to each indirect  participating  brokerage firm (a
"brokerage firm" or "indirect  participating  firm") for which it acts as agent.
Each brokerage firm shall be responsible for disbursing funds to the Note Owners
that it represents.  None of the Securities  Administrator,  the Note Registrar,
the  Paying  Agent,  the  Depositor  or  the  Master  Servicer  shall  have  any
responsibility therefor.

      (g)   On each Payment Date, the Certificate  Paying Agent shall deposit in
the Certificate  Distribution  Account all amounts it received  pursuant to this
Section   3.03   for  the   purpose   of   distributing   such   funds   to  the
Certificateholders. The Certificate Paying Agent shall make distributions to the
Certificateholders  under the Trust  Agreement  as  directed  by the  Securities
Administrator hereunder.

      (h)   Any  installment  of interest or principal,  if any,  payable on any
Note  that  is  punctually  paid  or  duly  provided  for by the  Issuer  on the
applicable  Payment Date shall,  if such Holder shall have so requested at least
five Business  Days prior to the related  Record Date, be paid to each Holder of
record on the preceding Record Date, by wire transfer to an account

                                       8

<PAGE>

specified  in writing by such Holder as of the  preceding  Record Date or in all
other cases or if no such  instructions  have been  delivered to the  Securities
Administrator, by check to such Noteholder mailed to such Holder's address as it
appears in the Note Register in the amount  required to be  distributed  to such
Holder on such Payment Date pursuant to such Holder's Notes; provided,  however,
that the  Securities  Administrator  shall not pay to such  Holders  any  amount
required to be withheld from a payment to such Holder by the Code.

      (i)   The Note Principal  Balance of each Note shall be due and payable in
full on the Final Scheduled  Payment Date for such Note as provided in the forms
of Note set forth in Exhibits A-1, A-2 and A-3 to this Indenture.  All principal
payments  on the Notes  shall be made to the  Noteholders  entitled  thereto  in
accordance with the Percentage Interests  represented by such Notes. Upon notice
to the Securities  Administrator  by the Issuer,  the  Securities  Administrator
shall  notify  the  Person in whose  name a Note is  registered  at the close of
business on the Record Date preceding the Final Scheduled  Payment Date or other
final  Payment  Date  (including  any  final  Payment  Date  resulting  from any
redemption  pursuant to Section  8.06  hereof).  Such notice shall to the extent
practicable  be mailed no later  than five  Business  Days  prior to such  Final
Scheduled  Payment  Date or other  final  Payment  Date and shall  specify  that
payment of the  principal  amount and any interest due with respect to such Note
at the Final Scheduled  Payment Date or other final Payment Date will be payable
only upon  presentation  and  surrender of such Note and shall specify the place
where such Note may be presented  and  surrendered  for such final  payment.  No
interest shall accrue on the Notes on or after the Final Scheduled  Payment Date
or any such other final Payment Date.

      Section 3.04 Protection of Trust Estate.  (a) The Issuer will from time to
time prepare, execute and deliver all such supplements and amendments hereto and
all such financing statements,  continuation statements,  instruments of further
assurance and other  instruments,  and will take such other action  necessary or
advisable to:

            (i)   maintain or preserve the lien and security interest (and the
priority  thereof) of this Indenture or carry out more  effectively the purposes
hereof;

            (ii)  perfect,  publish  notice of or protect  the  validity  of any
Grant made or to be made by this Indenture;

            (iii) cause the Issuer or the  Indenture  Trustee to enforce  any of
the rights to the Mortgage Loans; or

            (iv)  preserve  and defend  title to the Trust Estate and the rights
of the Indenture  Trustee and the  Noteholders  in such Trust Estate against the
claims of all persons and parties.

      (b)   Except  as  otherwise  provided  in this  Indenture,  the  Indenture
Trustee  shall not remove or permit the  Custodian  to remove any portion of the
Trust  Estate  that  consists  of  money  or  is  evidenced  by  an  instrument,
certificate or other writing from the  jurisdiction  in which it was held at the
date of the most recent  Opinion of Counsel  delivered  pursuant to Section 3.05
hereof  (or from the  jurisdiction  in  which  it was held as  described  in the
Opinion of Counsel  delivered  on the Closing Date  pursuant to Section  3.05(a)
hereof,  if no Opinion of Counsel  has yet been  delivered  pursuant  to Section
3.05(b)  hereof),  unless the  Indenture  Trustee  shall have first  received an
Opinion of Counsel to the effect that the lien and security

                                       9

<PAGE>

interest  created by this  Indenture with respect to such property will continue
to be maintained after giving effect to such action or actions.

      The  Issuer  hereby   designates  the  Indenture  Trustee  its  agent  and
attorney-in-fact  to sign any  financing  statement,  continuation  statement or
other  instrument  required to be signed  pursuant to this Section 3.04 upon the
Issuer's preparation thereof and delivery to the Indenture Trustee.

      Section 3.05  Opinions as to Trust Estate.  (a) On the Closing  Date,  the
Issuer shall furnish to the  Indenture  Trustee and the Owner Trustee an Opinion
of Counsel either stating that, in the opinion of such counsel,  such action has
been  taken with  respect to the  recording  and filing of this  Indenture,  any
indentures  supplemental  hereto,  and any other requisite  documents,  and with
respect to the execution and filing of any financing statements and continuation
statements,  as are  necessary to perfect and make  effective the lien and first
priority  security  interest in the  Collateral and reciting the details of such
action,  or stating  that,  in the  opinion of such  counsel,  no such action is
necessary to make such lien and first priority security interest effective.

      (b)   On or before December 31st in each calendar year, beginning in 2005,
the Issuer shall furnish to the  Indenture  Trustee an Opinion of Counsel at the
expense of the Issuer either stating that, in the opinion of such counsel,  such
action has been taken with respect to the  recording,  filing,  rerecording  and
refiling of this  Indenture,  any indentures  supplemental  hereto and any other
requisite  documents  and  with  respect  to the  execution  and  filing  of any
financing statements and continuation statements as is necessary to maintain the
lien and security  interest in the  Collateral  and reciting the details of such
action  or  stating  that in the  opinion  of such  counsel  no such  action  is
necessary to maintain such lien and security  interest.  Such Opinion of Counsel
shall also describe the  recording,  filing,  re-recording  and refiling of this
Indenture,  any indentures supplemental hereto and any other requisite documents
and the  execution  and  filing of any  financing  statements  and  continuation
statements  that will, in the opinion of such  counsel,  be required to maintain
the lien and  security  interest  in the  Collateral  until  December  31 in the
following calendar year.

      Section 3.06  Performance of  Obligations.  (a) The Issuer will punctually
perform and observe all of its  obligations  and  agreements  contained  in this
Indenture, the Basic Documents and in the instruments and agreements included in
the Trust Estate.

      (b)   The  Issuer  may  contract  with  other  Persons  to  assist  it  in
performing its duties under this  Indenture,  and any performance of such duties
by a Person identified to the Indenture  Trustee in an Officer's  Certificate of
the Issuer shall be deemed to be action taken by the Issuer.

      (c)   The Issuer will not take any action or permit any action to be taken
by others which would release any Person from any of such Person's  covenants or
obligations  under any of the documents  relating to the Mortgage Loans or under
any  instrument  included  in the Trust  Estate,  or which  would  result in the
amendment, hypothecation,  subordination, termination or discharge of, or impair
the validity or effectiveness of, any of the documents  relating to the Mortgage
Loans or any such  instrument,  except  such  actions as the Master  Servicer is
expressly permitted to take in the Servicing Agreement.

                                       10

<PAGE>

      (d)   The Issuer may retain an administrator  and may enter into contracts
with other Persons for the  performance of the Issuer's  obligations  hereunder,
and  performance  of such  obligations  by such  Persons  shall be  deemed to be
performance of such obligations by the Issuer.

      Section 3.07      Negative   Covenants.   So  long  as  any   Notes  are
Outstanding, the Issuer shall not:

            (i)   except  as  expressly  permitted  by  this  Indenture,   sell,
transfer, exchange or otherwise dispose of the Trust Estate.

            (ii)  claim any credit on, or make any deduction  from the principal
or  interest  payable in respect  of, the Notes  (other  than  amounts  properly
withheld  from such  payments  under the Code) or assert any claim  against  any
present or former  Noteholder,  by reason of the payment of the taxes  levied or
assessed upon any part of the Trust Estate;

            (iii) (A) permit the validity or  effectiveness of this Indenture to
be impaired,  or permit the lien of this Indenture to be amended,  hypothecated,
subordinated, terminated or discharged, or permit any Person to be released from
any  covenants or  obligations  with  respect to the Notes under this  Indenture
except as may be  expressly  permitted  hereby,  (B)  permit  any lien,  charge,
excise, claim, security interest,  mortgage or other encumbrance (other than the
lien of this Indenture) to be created on or extend to or otherwise arise upon or
burden  the Trust  Estate or any part  thereof  or any  interest  therein or the
proceeds  thereof or (C) permit the lien of this  Indenture  not to constitute a
valid first priority security interest in the Trust Estate; or

            (iv)  waive or impair,  or fail to assert rights under, the Mortgage
Loans,  or impair or cause to be impaired the Issuer's  interest in the Mortgage
Loans,  the Mortgage Loan Purchase  Agreement or in any Basic  Document,  if any
such  action  would  materially  and  adversely  affect  the  interests  of  the
Noteholders.

      Section 3.08 Annual Statement as to Compliance. The Issuer will deliver to
the Indenture Trustee, by March 1 of each year commencing with the calendar year
2006, an Officer's  Certificate  stating,  as to the Authorized  Officer signing
such Officer's Certificate, that:

            (i)   a review of the  activities  of the Issuer during the previous
calendar  year  and of its  performance  under  this  Indenture  and  the  Trust
Agreement has been made under such Authorized Officer's supervision; and

            (ii)  to the best of such Authorized Officer's  knowledge,  based on
such review,  the Issuer has complied with all  conditions  and covenants  under
this Indenture and the provisions of the Trust  Agreement  throughout such year,
or, if there has been a default in its  compliance  with any such  condition  or
covenant,  specifying each such default known to such Authorized Officer and the
nature and status thereof.

      Section 3.09  [Reserved].

      Section 3.10 Representations and Warranties Concerning the Mortgage Loans.
The Indenture Trustee,  as pledgee of the Mortgage Loans, has the benefit of the
representations  and

                                       11

<PAGE>

warranties made by the Seller in the Mortgage Loan Purchase Agreement concerning
the  Mortgage  Loans and the right to enforce  the  remedies  against the Seller
provided  in such  Section  5 or  Section 7 to the same  extent  as though  such
representations and warranties were made directly to the Indenture Trustee. If a
Responsible  Officer of the Indenture Trustee has actual knowledge of any breach
of any  representation  or  warranty  made by the  Seller in the  Mortgage  Loan
Purchase  Agreement,  the Indenture  Trustee shall promptly notify the Seller of
such finding and of the Seller's obligation to cure such defect or repurchase or
substitute for the related Mortgage Loan.

      Section  3.11  Investment  Company  Act.  The  Issuer  shall not become an
"investment  company" or be under the  "control" of an  "investment  company" as
such terms are defined in the Investment Company Act of 1940, as amended (or any
successor  or  amendatory  statute),  and the rules and  regulations  thereunder
(taking into  account not only the general  definition  of the term  "investment
company"  but  also  any  available  exceptions  to  such  general  definition);
provided, however, that the Issuer shall be in compliance with this Section 3.11
if  it  shall  have  obtained  an  order  exempting  it  from  regulation  as an
"investment  company" so long as it is in compliance with the conditions imposed
in such order.

      Section  3.12  Issuer  May  Consolidate,  etc.  (a) The  Issuer  shall not
consolidate or merge with or into any other Person, unless:

            (i)   the Person (if other than the Issuer)  formed by or  surviving
such  consolidation or merger shall be a Person organized and existing under the
laws of the United  States of America or any state or the  District  of Columbia
and shall expressly assume, by an indenture  supplemental  hereto,  executed and
delivered to the  Indenture  Trustee,  in form  reasonably  satisfactory  to the
Indenture Trustee, the due and punctual payment of the principal of and interest
on all  Notes,  and  all  amounts  payable  to the  Indenture  Trustee  and  the
Securities  Administrator,  the payment to the  Certificate  Paying Agent of all
amounts due to the  Certificateholders,  and the  performance  or  observance of
every  agreement and covenant of this  Indenture on the part of the Issuer to be
performed or observed, all as provided herein;

            (ii)  immediately  after  giving  effect  to  such  transaction,  no
Default or Event of Default shall have occurred and be continuing;

            (iii) each of the Rating  Agencies  shall have  notified  the Issuer
that such  transaction  shall not cause the  rating of the Notes to be  reduced,
qualified, suspended or withdrawn or to be considered by either Rating Agency to
be below investment grade;

            (iv)  the Issuer  shall  have  received  an Opinion of Counsel  (and
shall have delivered a copy thereof to the Indenture  Trustee and the Securities
Administrator)  to the  effect  that such  transaction  will not (A) result in a
"substantial modification" of the Class 1-A, Class 2-A or Class 3-A Notes or any
other  Classes of Notes with respect to which a "will be debt"  opinion has been
rendered by nationally  recognized  tax counsel and furnished to the  Securities
Administrator  under Treasury  Regulation Section 1.1001-3,  or adversely affect
the indebtedness  status of such Notes, and (B) cause the Trust to be subject to
an entity level tax for federal income tax purposes;

                                       12

<PAGE>

            (v)   any action that is necessary to maintain the lien and security
interest created by this Indenture shall have been taken;

            (vi)  the Issuer shall have  delivered to the  Indenture  Trustee an
Officer's  Certificate  and  an  Opinion  of  Counsel  each  stating  that  such
consolidation or merger and such supplemental indenture comply with this Article
III and that all conditions  precedent  herein  provided for or relating to such
transaction  have been  complied  with  (including  any filing  required  by the
Exchange Act), and that such supplemental indenture is enforceable.

      (b)   The Issuer  shall not convey or transfer  any of its  properties  or
assets, including those included in the Trust Estate, to any Person, unless:

            (i)   the  Person  that  acquires  by  conveyance  or  transfer  the
properties  and assets of the  Issuer,  the  conveyance  or transfer of which is
hereby  restricted,  shall (A) be a United States citizen or a Person  organized
and  existing  under  the laws of the  United  States  of  America  or any state
thereof, (B) expressly assume, by an indenture supplemental hereto, executed and
delivered  to the  Indenture  Trustee,  in form  satisfactory  to the  Indenture
Trustee,  the due and punctual  payment of the  principal of and interest on all
Notes and the  performance or observance of every agreement and covenant of this
Indenture on the part of the Issuer to be performed or observed, all as provided
herein,  (C) expressly  agree by means of such  supplemental  indenture that all
right,  title and  interest  so  conveyed  or  transferred  shall be subject and
subordinate  to the rights of the  Holders of the  Notes,  (D) unless  otherwise
provided in such supplemental  indenture,  expressly agree to indemnify,  defend
and hold  harmless  the Issuer and the  Indenture  Trustee  against and from any
loss,  liability or expense  arising under or related to this  Indenture and the
Notes and (E) expressly agree by means of such supplemental  indenture that such
Person (or if a group of  Persons,  then one  specified  Person)  shall make all
filings with the Commission (and any other  appropriate  Person) required by the
Exchange Act in connection with the Notes;

            (ii)  immediately  after  giving  effect  to  such  transaction,  no
Default or Event of Default shall have occurred and be continuing;

            (iii) each of the Rating  Agencies  shall have  notified  the Issuer
that such  transaction  shall not cause the  ratings of the Notes to be reduced,
qualified, suspended or withdrawn;

            (iv)  the Issuer  shall  have  received  an Opinion of Counsel  (and
shall have delivered a copy thereof to the Indenture Trustee) to the effect that
such  transaction  will not (A) result in a  "substantial  modification"  of the
Class  1-A,  Class 2-A or Class 3-A Notes or any  other  Classes  of Notes  with
respect  to which a "will be debt"  opinion  has  been  rendered  by  nationally
recognized  tax counsel and  furnished  to the  Securities  Administrator  under
Treasury  Regulation  Section  1.1001-3,  or adversely  affect the  indebtedness
status of such Notes and (B) cause the Trust to be  subject  to an entity  level
tax for federal income tax purposes;

            (v)   any action that is necessary to maintain the lien and security
interest created by this Indenture shall have been taken;

                                       13

<PAGE>

            (vi)  the Issuer shall have  delivered to the  Indenture  Trustee an
Officer's  Certificate  and  an  Opinion  of  Counsel  each  stating  that  such
conveyance or transfer and such supplemental  indenture comply with this Article
III and that all  conditions  precedent  herein  provided  for  relating to such
transaction  have been  complied  with  (including  any filing  required  by the
Exchange Act).

      Section 3.13 Successor or Transferee. (a) Upon any consolidation or merger
of the Issuer in  accordance  with  Section  3.12(a),  the  Person  formed by or
surviving  such  consolidation  or merger  (if  other  than the  Issuer)  shall,
following the Issuer's satisfaction of all of the conditions precedent set forth
therein  with  respect  thereto,  succeed to, and be  substituted  for,  and may
exercise every right and power of, the Issuer under this Indenture with the same
effect as if such Person had been named as the Issuer herein.

      (b)   Upon a conveyance  or transfer of all the assets and  properties  of
the Issuer pursuant to Section 3.12(b),  the Issuer,  following its satisfaction
of all of the conditions  precedent set forth herein with respect thereto,  will
be released from every  covenant and agreement of this  Indenture to be observed
or  performed  on the part of the Issuer with  respect to the Notes  immediately
upon the delivery of written notice to the Indenture  Trustee of such conveyance
or transfer.

      Section  3.14 No Other  Business.  The  Issuer  shall  not  engage  in any
business other than as set forth with respect thereto in the Trust Agreement and
other than financing,  purchasing,  owning and selling and managing the Mortgage
Loans and the issuance of the  Certificates  in the manner  contemplated by this
Indenture and the Basic Documents and all activities incidental thereto.

      Section  3.15 No Borrowing.  The Issuer shall not issue,  incur,  assume,
guarantee  or  otherwise  become  liable,   directly  or  indirectly,   for  any
indebtedness except for the Notes under this Indenture.

      Section 3.16 Guarantees,  Loans,  Monthly Advances and Other  Liabilities.
Except as  contemplated  by this  Indenture or the Basic  Documents,  the Issuer
shall not make any loan or  advance  or credit  to, or  guarantee  (directly  or
indirectly or by an instrument  having the effect of assuring  another's payment
or  performance  on any  obligation  or  capability  of so doing or  otherwise),
endorse or otherwise  become  contingently  liable,  directly or indirectly,  in
connection  with the  obligations,  stocks or  dividends  of, or own,  purchase,
repurchase or acquire (or agree  contingently to do so) any stock,  obligations,
assets  or  securities  of,  or any  other  interest  in,  or make  any  capital
contribution to, any other Person.

      Section  3.17  Capital  Expenditures.   The  Issuer  shall  not  make  any
expenditure  (by long-term or operating  lease or otherwise)  for capital assets
(either realty or personalty).

      Section 3.18 Determination of Note Index.

      On each Interest  Determination  Date, the Securities  Administrator  will
determine  the  Six-Month  LIBOR  Note  Index  for the  Class  1-A Notes and the
One-Month  LIBOR Note Index for the Class 3-A Notes.  The  Six-Month  LIBOR Note
Index and the One-Month  LIBOR Note Index will be based on the London  interbank
offered  rate  for  six-month  and  one-month  United  States

                                       14

<PAGE>

dollar deposits,  respectively, as such rates appear on the Telerate Screen Page
3750, as of 11:00 a.m. (London time) on such Interest Determination Date. If the
rate for the Six-Month  LIBOR Note Index or One-Month  LIBOR Note Index does not
appear or is not available on Telerate  Screen Page 3750,  the  Six-Month  LIBOR
Note Index or One-Month LIBOR Note Index for the related Interest Accrual Period
will be established by the Securities Administrator as follows:

      (a)   If on such Interest  Determination  Date two or more Reference Banks
provide  such  offered  quotations,  the  Six-Month  LIBOR  Note  Index  and the
One-Month LIBOR Note Index for the related  Interest Accrual Period shall be the
arithmetic mean of such offered quotations  (rounded upwards if necessary to the
nearest whole multiple of 0.0625%).

      (b)   If on such Interest Determination Date fewer than two Reference
Banks provide such offered  quotations,  the Six-Month  LIBOR Note Index and the
One-Month LIBOR Note Index for the related  Interest Accrual Period shall be the
higher of (x) the Six-Month  LIBOR Note Index or the One-Month  LIBOR Note Index
as determined on the previous  Interest  Determination  Date and (y) the Reserve
Interest Rate.

      On each Interest  Determination  Date, the Securities  Administrator  will
determine  the One-Year U.S.  Treasury Note Index for the next Interest  Accrual
Period for the Class 2-A Notes.

      The One-Year U.S.  Treasury Note Index will be based on the weekly average
yield on U.S. Treasury securities adjusted to a constant maturity of one year as
reported in the Release on the related Interest Determination Date or, if not so
available,  as most  recently  available  immediately  prior  to  such  Interest
Determination Date.

      The  establishment  of the Six-Month  LIBOR,  the One-Month  LIBOR and the
One-Year U.S.  Treasury Note Index on each  Interest  Determination  Date by the
Securities Administrator and the Securities  Administrator's  calculation of the
rate of  interest  applicable  to the  related  Class of Notes  for the  related
Interest  Accrual  Period shall (in the absence of manifest  error) be final and
binding.

      Section  3.19  Restricted  Payments.  The Issuer  shall not,  directly  or
indirectly,  (i) pay any  dividend or make any  distribution  (by  reduction  of
capital or otherwise),  whether in cash,  property,  securities or a combination
thereof,  to the Owner  Trustee  or any owner of a  beneficial  interest  in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer,  (ii) redeem,  purchase,  retire or  otherwise  acquire for
value any such  ownership  or equity  interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose;  provided,  however,  that
the Issuer may make, or cause to be made, (x)  distributions and payments to the
Owner Trustee, the Indenture Trustee, the Securities  Administrator,  the Master
Servicer, the Servicer, the Certificate Registrar, the Certificate Paying Agent,
the Noteholders and the Certificateholders as contemplated by, and to the extent
funds  are  available  for such  purpose  under  this  Indenture  and the  Basic
Documents and (y) payments to the Master  Servicer and the Servicer  pursuant to
the terms of the Sale and Servicing Agreement and the Servicing Agreements.  The
Issuer will not, directly or indirectly,  make payments to or distributions from
the  Master  Servicer  Collection  Account  or the  Payment  Account  except  in
accordance with this Indenture and the Basic Documents.

                                       15

<PAGE>

      Section  3.20  Notice of Events of  Default.  The  Issuer  shall  give the
Indenture  Trustee,  the Securities  Administrator and each Rating Agency prompt
written notice of each Event of Default hereunder.

      Section 3.21 Further  Instruments  and Acts. Upon request of the Indenture
Trustee,  the Issuer will execute and deliver such  further  instruments  and do
such  further  acts as may be  reasonably  necessary or proper to carry out more
effectively the purpose of this Indenture.

      Section 3.22 [Reserved].

      Section 3.23 Certain Representations Regarding the Trust Estate.

      (a)   With respect to that portion of the Collateral  described in clauses
(a) through (c) of the definition of Trust Estate,  the Issuer represents to the
Indenture Trustee that:

            (i)   This  Indenture  creates  a  valid  and  continuing   security
interest (as defined in the  applicable  UCC) in the  Collateral in favor of the
Indenture  Trustee,  which security interest is prior to all other liens, and is
enforceable as such as against creditors of and purchasers from the Issuer.

            (ii)  The Collateral  constitutes "deposit accounts,"  "instruments"
or "certificated securities," as applicable within the meaning of the applicable
UCC.

            (iii) The  Issuer  owns  and has good  and  marketable  title to the
Collateral, free and clear of any lien, claim or encumbrance of any Person.

            (iv)  The Issuer has caused or will have caused,  within ten days of
the Closing  Date,  the filing of all  appropriate  financing  statements in the
proper filing office in the appropriate  jurisdictions  under  applicable law in
order  to  perfect  the  security  interest  in the  Collateral  granted  to the
Indenture Trustee hereunder.

            (v)   Other than the  security  interest  granted  to the  Indenture
Trustee pursuant to this Indenture, the Issuer has not pledged,  assigned, sold,
granted a security interest in, or otherwise conveyed any of the Collateral. The
Issuer  has not  authorized  the  filing  of and is not  aware of any  financing
statements against the Issuer that include a description of collateral  covering
the  Collateral  other than any  financing  statement  relating to the  security
interest granted to the Indenture Trustee hereunder or that has been terminated.

            (vi)  The Collateral is not in the name of any Person other than the
Issuer or the Indenture  Trustee.  The Issuer has in its possession all original
copies of the security  certificates that constitute or evidence the Collateral.
The security certificates that constitute or evidence the Collateral do not have
any marks or  notations  indicating  that they have been  pledged,  assigned  or
otherwise  conveyed to any Person other than the Indenture  Trustee.  The Issuer
has not  consented  to the  bank  maintaining  the  Collateral  to  comply  with
instructions of any Person other than the Indenture Trustee.

      Section  3.24  Allocation  of  Realized  Losses.  (a) On or  prior to each
Payment Date, the Master Servicer shall  determine,  based solely on information
provided  to it by the  related

                                       16

<PAGE>

Servicer the amount of any Realized  Loss in respect of each  Mortgage Loan that
occurred during the immediately preceding calendar month.

      (b)   With respect to any Notes on any Payment Date, the principal portion
of each Realized Loss on a Mortgage Loan shall be allocated as follows:

      first, to the Class B-3 Notes until the Note Principal Balance thereof has
been reduced to zero;

      second,  to the Class B-2 Notes until the Note Principal  Balance  thereof
has been reduced to zero;

      third, to the Class B-1 Notes until the Note Principal Balance thereof has
been reduced to zero;

      fourth,  to the Class M-3 Notes until the Note Principal  Balance  thereof
has been reduced to zero;

      fifth, to the Class M-2 Notes until the Note Principal Balance thereof has
been reduced to zero;

      sixth, to the Class M-1 Notes until the Note Principal Balance thereof has
been reduced to zero;

      seventh, to the Class X Notes until its interest  entitlement with respect
to the related Payment Date has been reduced to zero; and

      eighth,  with respect to the principal  portion of Realized  Losses on the
Mortgage  Loans in Loan Group I, to the Class 1-A Notes until the Note Principal
Balance thereof has been reduced to zero; with respect to the principal  portion
of Realized Losses on the Mortgage Loans in Loan Group II to the Class 2-A Notes
until the Note  Principal  Balance  thereof has been  reduced to zero;  and with
respect to the  principal  portion of Realized  Losses on the Mortgage  Loans in
Loan Group III to the Class 3-A Notes until the Note Principal  Balance  thereof
has been reduced to zero.

      (c)   Notwithstanding  the foregoing clause (b), no such allocation of any
Realized  Loss shall be made on a Payment  Date to any Class or Classes of Notes
to the  extent  that  such  allocation  would  result  in the  reduction  of the
aggregate  Note  Principal  Balance  of all of the  Classes  of Notes as of such
Payment Date, after giving effect to all  distributions and prior allocations of
Realized  Losses on such date,  to an amount less than the  aggregate  Scheduled
Principal  Balance  of the  Mortgage  Loans as of the  related  Due  Date  (such
limitation, the "Loss Allocation Limitation").

      (d)   The principal portion of any Realized Losses allocated to a Class of
Notes shall be  allocated  among the Notes of such Class (other than the Class X
Notes) in proportion to their respective Note Principal Balances. Any allocation
of Realized Losses shall be accomplished by reducing the Note Principal  Balance
of the Notes on the related Payment Date.

                                       17

<PAGE>

      (e)   Realized  Losses shall be allocated on the Payment Date in the month
following  the month in which  such loss was  incurred  and,  in the case of the
principal  portion thereof,  after giving effect to  distributions  made on such
Payment Date.

      (f)   On each Payment Date, the Securities  Administrator  shall determine
the Subordinate  Writedown Amount.  Any such Subordinate  Writedown Amount shall
effect a  corresponding  reduction  in the Note  Principal  Balance  of (i) with
respect to the Subordinate  Writedown  Amount,  if prior to the Cross-Over Date,
the Class B-3,  Class B-2,  Class B-1, Class M-3, Class M-2 and Class M-1 Notes,
in that  order,  and (iii)  from and after the  Cross-Over  Date,  to the Senior
Notes,  in accordance  with  priorities  set forth in clause (b) above,  in each
case,  on such Payment Date after giving  effect to  distributions  made on such
Payment Date.

      (g)   The  interest  portion of any  Realized  Losses with  respect to the
Mortgage  Loans  occurring  on or prior  to the  Cross-Over  Date  will be borne
sequentially to the Class B-3, Class B-2, Class B-1, Class M-3, Class M-2, Class
M-1 and Class X Notes, in that order.  Once the aggregate Note Principal Balance
or Notional Amount, as applicable, of the Subordinate Notes have been reduced to
zero,  the interest  portion of Realized  Losses on the  Mortgage  Loans in Loan
Group I will be  allocated  to the Class 1-A  Notes,  the  interest  portion  of
Realized  Losses on the Mortgage Loans in Loan Group II will be allocated to the
Class 2-A Notes,  and the  interest  portion of Realized  Losses on the Mortgage
Loans in Loan Group III will be allocated  to the Class 3-A Notes,  in each case
in reduction Accrued Note Interest on such Class.

      (h)   In addition, in the event that the Securities Administrator receives
any Subsequent  Recoveries from the Servicer or Master Servicer,  the Securities
Administrator  shall  deposit  such funds into the Payment  Account  pursuant to
Section 3.01 of this  Indenture.  If, after taking into account such  Subsequent
Recoveries,  the  amount  of a  Realized  Loss is  reduced,  the  amount of such
Subsequent  Recoveries will be applied to increase the Note Principal Balance of
the Notes with the highest  payment  priority to which Realized Losses have been
allocated,  but not by more  than  the  amount  of  Realized  Losses  previously
allocated to that Class or Classes of Notes  pursuant to this Section 3.24.  The
amount of any Subsequent  Recoveries  following the application set forth in the
immediately preceding sentence will be applied to sequentially increase the Note
Principal Balance of the Notes,  beginning with the Class of Notes with the next
highest payment  priority,  up to the amount of such Realized Losses  previously
allocated  to such Class or  Classes of Notes  pursuant  to this  Section  3.24.
Holders of such Notes will not be entitled to any payments in respect of Accrued
Note Interest on the amount of such  increases for any Interest  Accrual  Period
preceding the Payment Date on which such  increase  occurs.  Any such  increases
shall be  applied  to the Note  Principal  Balance of the Notes of such Class in
accordance with its respective Percentage Interest.

      Section 3.25 Permitted Withdrawals and Transfers from the Payment Account.
(a) The Securities Administrator will, from time to time on demand of the Master
Servicer,  make or cause  to be made  such  withdrawals  or  transfers  from the
Payment  Account as the Master  Servicer  has  designated  for such  transfer or
withdrawal  pursuant to the Sale and  Servicing  Agreement or as the  Securities
Administrator  has instructed  hereunder for the following  purposes (limited in
the case of amounts  due the Master  Servicer  to those not  withdrawn  from the
Master Servicer Collection Account) but not in any order of priority:

                                       18

<PAGE>

            (i)   to reimburse the Master  Servicer or the related  Servicer for
any Monthly  Advance of its own funds,  the right of the Master  Servicer or the
related Servicer to  reimbursement  pursuant to this subclause (i) being limited
to amounts received on a particular Mortgage Loan (including,  for this purpose,
the Repurchase  Price therefor,  Insurance  Proceeds and  Liquidation  Proceeds)
which  represent  late payments or recoveries of the principal of or interest on
such Mortgage Loan respecting which such Monthly Advance was made;

            (ii)  to reimburse the Master Servicer or the related  Servicer from
Insurance  Proceeds or Liquidation  Proceeds  relating to a particular  Mortgage
Loan for amounts  expended by the Master Servicer or such Servicer in good faith
in connection with the restoration of the related  Mortgaged  Property which was
damaged by an Uninsured  Cause or in  connection  with the  liquidation  of such
Mortgage Loan;

            (iii) to reimburse the Master Servicer or the related  Servicer from
Insurance  Proceeds relating to a particular  Mortgage Loan for insured expenses
incurred with respect to such Mortgage Loan and to reimburse the Master Servicer
or the related  Servicer from  Liquidation  Proceeds from a particular  Mortgage
Loan for  Liquidation  Expenses  incurred  with respect to such  Mortgage  Loan;
provided that the Master  Servicer  shall not be entitled to  reimbursement  for
Liquidation  Expenses with respect to a Mortgage Loan to the extent that (i) any
amounts  with  respect  to such  Mortgage  Loan were paid as Excess  Liquidation
Proceeds  pursuant to clause  (viii) of this  Subsection  3.25 (a) to the Master
Servicer;   and  (ii)  such  Liquidation  Expenses  were  not  included  in  the
computation of such Excess Liquidation Proceeds;

            (iv)  to reimburse the Master  Servicer or the related  Servicer for
advances  of funds  (other  than  Monthly  Advances)  made with  respect  to the
Mortgage Loans, and the right to reimbursement  pursuant to this subclause being
limited to amounts received on the related  Mortgage Loan  (including,  for this
purpose,  the Repurchase  Price  therefor,  Insurance  Proceeds and  Liquidation
Proceeds)  which  represent  late  recoveries  of the  payments  for which  such
advances were made;

            (v)   to reimburse the Master  Servicer or the related  Servicer for
any Monthly  Advance or advance,  after a Realized Loss has been  allocated with
respect to the related  Mortgage Loan if the Monthly  Advance or advance has not
been reimbursed pursuant to clauses (i) and (iv);

            (vi)  to pay the Master Servicer as set forth in Section 3.13 of the
Sale and Servicing Agreement;  provided however,  that the Master Servicer shall
be obligated  to pay from its own funds any amounts  which it is required to pay
under Section 5.03 of the Sale and Servicing Agreement;

            (vii) to  reimburse  the Master  Servicer  for  expenses,  costs and
liabilities  incurred by and  reimbursable  to it  pursuant  to  Sections  3.02,
5.04(c)  and (d) of the Sale and  Servicing  Agreement,  to the extent  that the
Master  Servicer  has not already  reimbursed  itself for such  amounts from the
Master Servicer Collection Account;

            (viii)to  pay  to  the  Master  Servicer,  as  additional  servicing
compensation,  any Excess Liquidation Proceeds to the extent not retained by the
related Servicer;

                                       19

<PAGE>

            (ix)  to reimburse  or pay the related  Servicer any such amounts as
are due  thereto  under  the  related  Servicing  Agreements  and  have not been
retained  by or paid to the  related  Servicer,  to the extent  provided  in the
related Servicing Agreement;

            (x)   to reimburse or pay the Indenture Trustee,  the Owner Trustee,
the  Securities  Administrator  and  the  Master  Servicer  any  amounts  due or
expenses,  costs and  liabilities  incurred by or  reimbursable  to such Persons
pursuant  to this  Indenture  or any other Basic  Documents,  to the extent such
amounts have not already been  previously  paid or reimbursed to such party from
the Master Servicer Collection Account;

            (xi)  to remove amounts deposited in error; and

            (xii) to pay to the Holder of the Trust  Certificates any investment
income due and payable to it pursuant to this Indenture.

                                       20

<PAGE>

                               ARTICLE IV

               THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

      Section 4.01 The Notes.  Each Class of Class 1-A, Class 2-A, and Class 3-A
Notes shall be registered in the name of a nominee designated by the Depository.
Beneficial  Owners will hold interests in the Class 1-A, Class 2-A and Class 3-A
Notes through the  book-entry  facilities of the  Depository in minimum  initial
Note  Principal  Balances of $100,000  and  integral  multiples  of $1 in excess
thereof. Registered Holders will hold interests in the Class X Notes in physical
form in minimum initial Notional Amount of $100,000 and integral multiples of $1
in excess thereof.  Registered Holders will hold interests in the Class X, Class
M-1,  Class M-2, Class M-3, Class B-1, Class B-2 and Class B-3 Notes in physical
form in minimum  initial  Note  Principal  Balances  of  $100,000  and  integral
multiples of $1 in excess thereof.

      The Indenture  Trustee and Securities  Administrator  may for all purposes
(including  the making of payments due on the Notes) deal with the Depository as
the authorized representative of the Beneficial Owners with respect to the Notes
for the  purposes of  exercising  the rights of Holders of the Notes  hereunder.
Except as provided in the next  succeeding  paragraph of this Section 4.01,  the
rights of Beneficial  Owners with respect to the Notes shall be limited to those
established  by law  and  agreements  between  such  Beneficial  Owners  and the
Depository  and  Depository  Participants.  Except as provided  in Section  4.08
hereof,  Beneficial Owners shall not be entitled to definitive  certificates for
the Notes as to which they are the  Beneficial  Owners.  Requests and directions
from,  and votes of, the  Depository  as Holder of the Notes shall not be deemed
inconsistent if they are made with respect to different  Beneficial  Owners. The
Securities  Administrator  may establish a reasonable  record date in connection
with  solicitations of consents from or voting by Noteholders and give notice to
the  Depository  of such record date.  Without the consent of the Issuer and the
Securities Administrator, no Note may be transferred by the Depository except to
a  successor  Depository  that  agrees to hold such Note for the  account of the
Beneficial Owners.

      In the event  the  Depository  Trust  Company  resigns  or is  removed  as
Depository,  the Depositor may appoint a successor  Depository.  If no successor
Depository  has  been  appointed  within  30 days of the  effective  date of the
Depository's  resignation or removal, each Beneficial Owner shall be entitled to
certificates   representing  the  Notes  it  beneficially  owns  in  the  manner
prescribed in Section 4.08.

      The Notes shall, on original issue, be executed on behalf of the Issuer by
the Owner Trustee,  not in its individual  capacity but solely as Owner Trustee,
authenticated  by the Securities  Administrator  and delivered by the Securities
Administrator to or upon the order of the Issuer.

      Section 4.02  Registration  of and Limitations on Transfer and Exchange of
Notes; Appointment of Note Registrar and Certificate Registrar. The Issuer shall
cause to be kept at the Corporate Trust Office of the Securities Administrator a
Note  Register  in  which,  subject  to such  reasonable  regulations  as it may
prescribe, the Note Registrar shall provide for the registration of Notes and of
transfers and exchanges of Notes as herein provided.

                                       21

<PAGE>

      Subject  to  the  restrictions  and  limitations  set  forth  below,  upon
surrender for registration of transfer of any Note at the Corporate Trust Office
of the Securities Administrator, the Issuer shall execute and the Note Registrar
shall  authenticate  and deliver,  in the name of the  designated  transferee or
transferees, one or more new Notes in authorized initial Note Principal Balances
evidencing the same Class and aggregate Percentage Interests.

      No transfer,  sale,  pledge or other  disposition of any Privately Offered
Note or interest  therein shall be made unless that  transfer,  sale,  pledge or
other  disposition  is  exempt  from  the  registration   and/or   qualification
requirements of the Securities Act and any applicable  state securities laws, or
is  otherwise  made  in  accordance  with  the  Securities  Act and  such  state
securities  laws.  If a transfer  of any  Privately  Offered  Note is to be made
without registration under the Securities Act (other than in connection with the
initial  issuance  thereof or a transfer  thereof to the Depositor or one of its
Affiliates),  then the Note  Registrar  shall refuse to register  such  transfer
unless  (i) it  receives  (and  upon  receipt,  may  conclusively  rely  upon) a
certificate  substantially  in the form attached as Exhibit C hereto  (provided,
however,  that in the  case of the  Book-Entry  Notes,  the  Noteholder  and the
Noteholder's   prospective   transferee   will  be   deemed  to  have  made  the
representations  set  forth in such  certification)  or (ii) (a) it  receives  a
written Opinion of Counsel acceptable to and in form and substance  satisfactory
to the Note Registrar,  the Securities  Administrator  and the Indenture Trustee
that  such  transfer  may be  made  pursuant  to an  exemption,  describing  the
applicable  exemption and the basis  therefor,  from the  Securities Act and any
applicable state securities laws or is being made pursuant to the Securities Act
and any applicable  state securities laws, which Opinion of Counsel shall not be
an expense of the Issuer, the Seller, the Owner Trustee,  the Indenture Trustee,
the Securities  Administrator,  the Master  Servicer or any Servicer and (b) the
transferee  executes  a  representation  letter,  substantially  in the  form of
Exhibit D attached  hereto,  and transferor  executes a  representation  letter,
substantially  in the form of Exhibit E hereto,  each  acceptable to and in form
and substance satisfactory to the Note Registrar,  the Securities  Administrator
and the Indenture Trustee certifying the facts surrounding such transfer,  which
representation  letters shall not be an expense of the Issuer,  the Seller,  the
Owner Trustee, the Indenture Trustee, the Securities  Administrator,  the Master
Servicer or any  Servicer.  None of the Issuer,  the  Depositor,  the  Indenture
Trustee,  the  Securities  Administrator  or the Note  Registrar is obligated to
register or qualify any Notes under the Securities  Act or any other  securities
law or to take any action not otherwise  required under this Indenture to permit
the  transfer  of  any  Note  or  interest   therein  without   registration  or
qualification.  Any  Noteholder  desiring  to  effect  a  transfer  of  Notes or
interests  therein shall,  and does hereby agree to,  indemnify the Issuer,  the
Depositor,   the  Owner   Trustee,   the  Indenture   Trustee,   the  Securities
Administrator  and the Note  Registrar  against any liability that may result if
the transfer is not so exempt or is not made in accordance with such federal and
state laws or in accordance with any  restrictions on transfer set forth in this
Indenture. Notwithstanding the foregoing, the provisions of this paragraph shall
not apply to the initial transfer of the Notes to the Depositor or any Affiliate
thereof.

      No  transfer,  sale,  pledge or other  disposition  of any Senior  Note or
Privately Offered Notes (other than (A) (i) an Initial Transfer of a Senior Note
with respect to which (x) a certificate  substantially  in the form of Exhibit I
hereto (a "Tax  Transfer  Certificate")  has been  furnished  to the  Securities
Administrator  or (y) a "will be debt"  opinion has been  rendered by nationally
recognized tax counsel and furnished to the Securities Administrator, or (ii) an
Initial  Transfer of a Privately  Offered  Note with respect to which a "will be
debt" opinion has been

                                       22

<PAGE>

rendered by nationally  recognized  tax counsel and furnished to the  Securities
Administrator or (B) a Subsequent Transfer of a Senior Note or Privately Offered
Note) or interest  therein shall be made, and the Note Registrar shall refuse to
register  any such  transfer,  sale,  pledge or other  disposition,  unless  the
transferee  shall have delivered to the Owner Trustee,  the Note Registrar,  the
Securities  Administrator and the Indenture Trustee a certificate  substantially
in the  form  of  Exhibit  F  hereto  certifying  that  (i) it is a real  estate
investment  trust ("REIT") within the meaning of Section 856(a),  or a qualified
REIT subsidiary  ("QRS") within the meaning of Section 856(i) of the Code, or an
entity disregarded as an entity separate from a REIT or a QRS and (ii) following
the  transfer,  100% of the  Subordinate  Notes  and  Certificates  (other  than
Subordinate  Notes,  with  respect  to which a "will be debt"  opinion  has been
rendered by nationally  recognized  tax counsel and furnished to the  Securities
Administrator)  will be owned by a single REIT,  directly or indirectly  through
one or more QRSs of such REIT or one or more  entities  disregarded  as entities
separate  from  such  REIT or such  QRSs;  provided  that,  notwithstanding  the
foregoing,  (x) any Senior  Notes or Privately  Offered  Notes may be pledged to
secure  indebtedness and may be the subject of repurchase  agreements treated by
the Issuer as secured indebtedness for federal income tax purposes,  and (y) any
Senior Notes or Privately Offered Notes may be transferred by the related lender
under any such related loan  agreement or  repurchase  agreement  upon a default
under any such  indebtedness,  in which case the transferor shall deliver to the
Note  Registrar,  the  Securities  Administrator,  the  Owner  Trustee  and  the
Indenture  Trustee a certificate  substantially  in the form attached  hereto as
Exhibit G certifying to such effect.

      Subject to the  foregoing,  and Section  4.08,  Notes may be exchanged for
other Notes of like tenor and in  authorized  initial  Note  Principal  Balances
evidencing the same Class and aggregate  Percentage  Interests upon surrender of
the Notes to be exchanged at the Corporate  Trust Office of the Note  Registrar.
Whenever any Notes are so surrendered for exchange, the Issuer shall execute and
the Securities  Administrator shall authenticate and deliver the Notes which the
Noteholder  making the exchange is entitled to receive.  Each Note  presented or
surrendered  for  registration  of transfer or exchange shall (if so required by
the  Note  Registrar)  be duly  endorsed  by,  or be  accompanied  by a  written
instrument of transfer in form  reasonably  satisfactory  to the Note  Registrar
duly executed by the Holder  thereof or his attorney duly  authorized in writing
with such signature  guaranteed by a commercial bank or trust company located or
having a correspondent located in the city of New York. Notes delivered upon any
such  transfer or  exchange  will  evidence  the same  obligations,  and will be
entitled to the same rights and privileges, as the Notes surrendered.

      No  service  charge  shall be made for any  registration  of  transfer  or
exchange  of  Notes,  but the Note  Registrar  shall  require  payment  of a sum
sufficient  to cover  any tax or  governmental  charge  that may be  imposed  in
connection with any registration of transfer or exchange of Notes.

      The Issuer hereby appoints the Securities Administrator as (i) Certificate
Registrar to keep at its Corporate Trust Office a Certificate  Register pursuant
to Section  3.08 of the Trust  Agreement  in which,  subject to such  reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the
registration of Certificates and of transfers and exchanges  thereof pursuant to
Section  3.04  of the  Trust  Agreement  and  (ii)  Note  Registrar  under  this
Indenture. The Securities Administrator hereby accepts such appointments.

                                       23

<PAGE>

      Section  4.03  Mutilated,  Destroyed,  Lost or  Stolen  Notes.  If (i) any
mutilated Note is surrendered to the Securities Administrator, or the Securities
Administrator receives evidence to its satisfaction of the destruction,  loss or
theft of any Note, and (ii) there is delivered to the  Securities  Administrator
such  security or  indemnity as may be required by it to hold the Issuer and the
Securities Administrator harmless, then, in the absence of notice to the Issuer,
the Note  Registrar  or the  Securities  Administrator  that  such Note has been
acquired by a bona fide purchaser, and provided that the requirements of Section
8-405 of the UCC are met,  the Issuer  shall  execute,  and upon its request the
Securities  Administrator  shall authenticate and deliver, in exchange for or in
lieu of any such mutilated,  destroyed, lost or stolen Note, a replacement Note;
provided,  however,  that if any such destroyed,  lost or stolen Note, but not a
mutilated Note, shall have become or within seven days shall be due and payable,
instead of issuing a replacement  Note, the Issuer may pay such destroyed,  lost
or stolen Note when so due or payable without surrender  thereof.  If, after the
delivery of such replacement Note or payment of a destroyed, lost or stolen Note
pursuant to the proviso to the preceding sentence,  a bona fide purchaser of the
original  Note in lieu of which such  replacement  Note was issued  presents for
payment such original Note, the Issuer and the Securities Administrator shall be
entitled to recover such  replacement  Note (or such payment) from the Person to
whom it was  delivered  or any Person  taking  such  replacement  Note from such
Person to whom such  replacement  Note was  delivered  or any  assignee  of such
Person, except a bona fide purchaser,  and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage,  cost
or expense  incurred  by the Issuer,  the  Indenture  Trustee or the  Securities
Administrator in connection therewith.

      Upon the issuance of any  replacement  Note under this Section  4.03,  the
Issuer may require the payment by the Holder of such Note of a sum sufficient to
cover any tax or other  governmental  charge  that may be  imposed  in  relation
thereto and any other  reasonable  expenses  (including the fees and expenses of
the Securities Administrator) connected therewith.

      Every replacement Note issued pursuant to this Section 4.03 in replacement
of any mutilated,  destroyed,  lost or stolen Note shall  constitute an original
additional  contractual  obligation of the Issuer, whether or not the mutilated,
destroyed,  lost or stolen Note shall be at any time enforceable by anyone,  and
shall  be  entitled  to  all  the  benefits  of  this   Indenture   equally  and
proportionately with any and all other Notes duly issued hereunder.

      The  provisions of this Section 4.03 are exclusive and shall  preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes.

      Section  4.04  Persons  Deemed  Owners.   Prior  to  due  presentment  for
registration of transfer of any Note, the Issuer, the Securities  Administrator,
the Paying Agent and any agent of the Issuer or the Securities  Administrator or
the Paying Agent may treat the Person in whose name any Note is  registered  (as
of the day of  determination)  as the  owner  of such  Note for the  purpose  of
receiving  payments of principal of and  interest,  if any, on such Note and for
all other purposes whatsoever,  whether or not such Note be overdue, and none of
the Issuer,  the Indenture  Trustee,  the Securities  Administrator,  the Paying
Agent or any agent of the Issuer,  the Securities  Administrator,  the Indenture
Trustee or the Paying Agent shall be affected by notice to the contrary.

                                       24

<PAGE>

      Section 4.05 Cancellation. All Notes surrendered for payment, registration
of transfer,  exchange or redemption  shall,  if surrendered to any Person other
than the Securities Administrator,  be delivered to the Securities Administrator
and shall be promptly cancelled by the Securities Administrator.  The Issuer may
at any time deliver to the Securities  Administrator  for cancellation any Notes
previously  authenticated  and  delivered  hereunder  which the  Issuer may have
acquired in any manner whatsoever,  and all Notes so delivered shall be promptly
cancelled by the Securities  Administrator.  No Notes shall be  authenticated in
lieu of or in exchange for any Notes cancelled as provided in this Section 4.05,
except as expressly permitted by this Indenture. All cancelled Notes may be held
or disposed of by the Securities  Administrator  in accordance with its standard
retention  or disposal  policy as in effect at the time unless the Issuer  shall
direct by an Issuer Request that they be destroyed or returned to it;  provided,
however,  that  such  Issuer  Request  is  timely  and the  Notes  have not been
previously disposed of by the Securities Administrator.

      Section 4.06 Form of Notes.  The Class 1-A, Class 2-A and Class 3-A Notes,
upon  original  issuance,  will  be  issued  in the  form of  typewritten  Notes
representing  the  Book-Entry  Notes,  to be delivered to The  Depository  Trust
Company,  the initial  Depository,  by, or on behalf of, the  Issuer.  The Notes
shall  initially be  registered  on the Note Register in the name of Cede & Co.,
the nominee of the initial  Depository,  and no Beneficial  Owner will receive a
Definitive  Note  representing  such Beneficial  Owner's  interest in such Note,
except as provided in Section 4.08. With respect to such Notes, unless and until
definitive,  fully registered Notes (the "Definitive Notes") have been issued to
Beneficial Owners pursuant to Section 4.08:

                  (i)   the  provisions  of this  Section  4.06 shall be in full
force and effect;

                  (ii)  the Note  Registrar,  the Paying  Agent,  the  Indenture
Trustee  and the  Securities  Administrator  shall be  entitled to deal with the
Depository  for all  purposes  of  this  Indenture  (including  the  payment  of
principal  of and  interest  on the Notes  and the  giving  of  instructions  or
directions  hereunder)  as the sole  holder  of the  Notes,  and  shall  have no
obligation to the Beneficial Owners of the Notes;

                  (iii) to the extent that the  provisions  of this Section 4.06
conflict with any other  provisions of this  Indenture,  the  provisions of this
Section 4.06 shall control;

                  (iv)  the rights of Beneficial  Owners shall be exercised only
through  the  Depository  and shall be limited to those  established  by law and
agreements between such Owners of Notes and the Depository and/or the Depository
Participants.  Unless and until  Definitive Notes are issued pursuant to Section
4.08, the initial Depository will make book-entry transfers among the Depository
Participants  and receive and transmit  payments of principal of and interest on
the Notes to such Depository Participants; and

                  (v)   whenever this Indenture  requires or permits  actions to
be taken based upon  instructions or directions of Holders of Notes evidencing a
specified percentage of the Note Principal Balances of the Notes, the Depository
shall be deemed to represent such  percentage  with respect to the Notes only to
the extent that it has  received  instructions  to such  effect from  Beneficial
Owners and/or Depository Participants owning or representing, respectively, such
required  percentage of the  beneficial  interest in the Notes and has delivered
such instructions to the Securities Administrator and the Indenture Trustee.

                                       25

<PAGE>

      None of the Depositor,  the Issuer,  the Master Servicer,  the Seller, the
Securities  Administrator,  the Indenture  Trustee,  the Note  Registrar and the
Owner Trustee shall have any liability for any aspect of the records relating to
or payments made on account of beneficial  ownership interests in the Book-Entry
Notes or for  maintaining,  supervising  or  reviewing  any records  relating to
beneficial ownership interests or transfers thereof.

      The Class X, Class M-1,  Class M-2,  Class M-3,  Class B-1,  Class B-2 and
Class B-3 Notes will be registered in full definitive form.

      Section   4.07  Notices  to   Depository.   Whenever  a  notice  or  other
communication  to the Note Holders is required under this Indenture,  unless and
until Definitive  Notes shall have been issued to Beneficial  Owners pursuant to
Section 4.08, the Indenture Trustee or Securities Administrator,  as applicable,
shall give all such notices and  communications  specified herein to be given to
Holders  of the Notes to the  Depository,  and shall have no  obligation  to the
Beneficial Owners.

      Section 4.08 Definitive Notes. If (i) the Depositor advises the Securities
Administrator  in writing that the  Depository  is no longer  willing or able to
properly discharge its responsibilities with respect to the Book-Entry Notes and
the Depositor is unable to locate a qualified  successor  within 30 days or (ii)
the Depositor, at its option (with the consent of the Securities  Administrator,
such consent not to be unreasonably withheld) elects to terminate the book-entry
system through the Depository,  then the Securities  Administrator shall request
that the Depository  notify all Beneficial  Owners of the occurrence of any such
event  and  of  the  availability  of  Definitive  Notes  to  Beneficial  Owners
requesting  the same.  Upon  surrender to the  Securities  Administrator  of the
typewritten   Notes   representing  the  Book-Entry  Notes  by  the  Depository,
accompanied  by  registration  instructions,  the Issuer  shall  execute and the
Securities  Administrator  shall authenticate the Definitive Notes in accordance
with the instructions of the Depository.  None of the Issuer, the Note Registrar
or the  Securities  Administrator  shall be liable for any delay in  delivery of
such  instructions  and may  conclusively  rely on,  and shall be  protected  in
relying on,  such  instructions.  Upon the  issuance of  Definitive  Notes,  the
Securities  Administrator shall recognize the Holders of the Definitive Notes as
Noteholders.

      In addition,  if an Event of Default has occurred and is continuing,  each
Note Owner  materially  adversely  affected  thereby may at its option request a
Definitive Note evidencing  such  Noteholder's  interest in the related Class of
Notes.  In order to make such request,  such  Noteholder  shall,  subject to the
rules and  procedures of the  Depository,  provide the Depository or the related
Depository  Participant  with  directions  for the Securities  Administrator  to
exchange  or cause the  exchange of the  Noteholder's  interest in such Class of
Notes for an  equivalent  interest in fully  registered  definitive  form.  Upon
receipt by the  Securities  Administrator  of  instructions  from the Depository
directing  the   Securities   Administrator   to  effect  such  exchange   (such
instructions  to contain  information  regarding the Class of Notes and the Note
Principal  Balance being  exchanged,  the Depository  Participant  account to be
debited with the decrease,  the registered  holder of and delivery  instructions
for the Definitive Note, and any other  information  reasonably  required by the
Securities  Administrator),  (i) the Securities Administrator shall instruct the
Depository  to  reduce  the  related  Depository  Participant's  account  by the
aggregate Note Principal  Balance of the  Definitive  Note,  (ii) the Securities
Administrator  shall execute,  authenticate and deliver,  in accordance with the
registration and delivery instructions provided by the Depository,  a Definitive
Note evidencing such Noteholder's  interest in such Class of

                                       26

<PAGE>

Notes and (iii) the Issuer shall execute and the Securities  Administrator shall
authenticate  a new  Book-Entry  Note  reflecting  the  reduction  in  the  Note
Principal Balance of such Class of Notes by the amount of the Definitive Notes.

      Section 4.09 Tax  Treatment.  The Issuer has entered into this  Indenture,
and the  Class  1-A,  Class 2-A and  Class  3-A  Notes  will be issued  with the
intention  that,  for  federal,  state and local  income,  single  business  and
franchise tax purposes,  such Classes of Notes will qualify as  indebtedness  at
any time at which such Notes are treated as issued and  outstanding  for federal
income tax purposes. The Issuer and the Securities  Administrator (in accordance
with Section 6.07 hereof), by entering into this Indenture,  and each Class 1-A,
Class 2-A and  Class 3-A  Noteholder,  by its  acceptance  of its Note (and each
Beneficial  Owner by its acceptance of an interest in the applicable  Book-Entry
Note), agree to treat such Classes of Notes for federal, state and local income,
single  business and franchise tax purposes as indebtedness at any time at which
such  Notes are  treated  as issued  and  outstanding  for  federal  income  tax
purposes.

      Section 4.10 Satisfaction and Discharge of Indenture. This Indenture shall
cease to be of further  effect with respect to the Notes except as to (i) rights
of  registration  of transfer and  exchange,  (ii)  substitution  of  mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09,
3.17, 3.19 and 3.20, (v) the rights, obligations and immunities of the Indenture
Trustee and  Securities  Administrator  hereunder  (including  the rights of the
Securities   Administrator  under  Section  6.08  and  the  obligations  of  the
Securities Administrator under Section 4.11), and (vi) the rights of Noteholders
as  beneficiaries  hereof with  respect to the  property so  deposited  with the
Securities  Administrator  payable  to all or any of  them,  and  the  Indenture
Trustee,  on demand of and at the expense of the Issuer,  shall  execute  proper
instruments  acknowledging  satisfaction  and discharge of this  Indenture  with
respect to the Notes and shall  release and deliver,  or cause the  Custodian to
deliver, the Collateral to or upon the order of the Issuer, when

      (A)   either

      (1)   all Notes  theretofore  authenticated  and delivered (other than (i)
Notes that have been  destroyed,  lost or stolen and that have been  replaced or
paid as provided in Section 4.03 hereof and (ii) Notes for whose  payment  money
has  theretofore  been deposited in trust or segregated and held in trust by the
Issuer and  thereafter  repaid to the Issuer or discharged  from such trust,  as
provided in Section 3.03) have been  delivered to the  Securities  Administrator
for cancellation; or

      (2)   all Notes not theretofore delivered to the Securities  Administrator
for cancellation

            a.    have become due and payable,

            b.    will  become due and  payable at the Final  Scheduled  Payment
                  Date within one year, or

            c.    have been called for early  redemption  and the Trust has been
                  terminated pursuant to Section 8.06 hereof,

                                       27

<PAGE>

and the Issuer,  in the case of a. or b. above,  has  irrevocably  deposited  or
caused to be irrevocably  deposited with the  Securities  Administrator  cash or
direct obligations of or obligations  guaranteed by the United States of America
(which will mature  prior to the date such  amounts are  payable),  in trust for
such  purpose,  in  an  amount  sufficient  to  pay  and  discharge  the  entire
indebtedness on such Notes then  outstanding  not  theretofore  delivered to the
Securities  Administrator  for  cancellation  when  due on the  Final  Scheduled
Payment  Date or other final  Payment Date and has  delivered to the  Securities
Administrator and the Indenture Trustee a verification  report from a nationally
recognized  accounting  firm  certifying  that the  amounts  deposited  with the
Securities  Administrator  are  sufficient  to  pay  and  discharge  the  entire
indebtedness of such Notes,  or, in the case of c. above,  the Issuer shall have
complied with all requirements of Section 8.06 hereof,

            (B)   the  Issuer  has  paid or  caused  to be paid all  other  sums
      payable hereunder; and

            (C)   the Issuer has delivered to the Indenture Trustee an Officer's
      Certificate  and an  Opinion  of  Counsel,  each  meeting  the  applicable
      requirements  of Section  10.01 hereof,  each stating that all  conditions
      precedent  herein provided for relating to the  satisfaction and discharge
      of this  Indenture  have been complied with and, if the Opinion of Counsel
      relates to a deposit made in connection with Section  4.10(A)(2)b.  above,
      such  opinion  shall  further  be to the  effect  that such  deposit  will
      constitute  an  "in-substance  defeasance"  within the  meaning of Revenue
      Ruling 85-42, 1985-1 C.B. 36, and in accordance therewith, the Issuer will
      be the owner of the  assets  deposited  in trust for  federal  income  tax
      purposes.

      Section 4.11  Application  of Trust Money.  All monies  deposited with the
Securities  Administrator pursuant to Section 4.10 hereof shall be held in trust
and  applied  by it, in  accordance  with the  provisions  of the Notes and this
Indenture,  to the payment,  either  directly or through any Paying Agent or the
Certificate   Paying  Agent  as  designee  of  the  Issuer,  as  the  Securities
Administrator may determine,  to the Holders of Securities,  of all sums due and
to become due thereon for principal  and interest or otherwise;  but such monies
need not be segregated  from other funds except to the extent required herein or
required by law.

      Section 4.12 [Reserved].

      Section 4.13 Repayment of Monies Held by Paying Agent.  In connection with
the  satisfaction and discharge of this Indenture with respect to the Notes, all
monies then held by any Person other than the Securities Administrator under the
provisions of this  Indenture  with respect to such Notes shall,  upon demand of
the  Issuer,  be paid to the  Securities  Administrator  to be held and  applied
according to Section 3.03 and  thereupon  such Person shall be released from all
further liability with respect to such monies.

      Section 4.14 Temporary  Notes.  Pending the  preparation of any Definitive
Notes,  the Issuer may execute and upon its written  direction,  the  Securities
Administrator may authenticate and make available for delivery,  temporary Notes
that are printed, lithographed,  typewritten, photocopied or otherwise produced,
in any denomination,  substantially of the tenor of the Definitive Notes in lieu
of which they are issued and with such appropriate insertions, omissions,

                                       28

<PAGE>

substitutions  and other  variations  as the officers  executing  such Notes may
determine, as evidenced by their execution of such Notes.

      If temporary Notes are issued,  the Issuer will cause  Definitive Notes to
be prepared without  unreasonable delay. After the preparation of the Definitive
Notes,  the temporary  Notes shall be  exchangeable  for  Definitive  Notes upon
surrender of the temporary Notes at the Corporate Trust Office of the Securities
Administrator,  without charge to the Holder. Upon surrender for cancellation of
any one or more  temporary  Notes,  the Issuer shall execute and the  Securities
Administrator  shall  authenticate and make available for delivery,  in exchange
therefor,  Definitive Notes of authorized denominations and of like tenor, class
and aggregate principal amount.  Until so exchanged,  such temporary Notes shall
in all  respects  be  entitled  to the same  benefits  under this  Indenture  as
Definitive Notes.

      Section 4.15  Representation  Regarding  ERISA.  By acquiring a Class 1-A,
Class 2-A and Class 3-A Note or  interest  therein,  each Holder of such Note or
Beneficial  Owner of any such interest  will be deemed to represent  that either
(1) it is not acquiring  such Note with Plan Assets or (2) (A) the  acquisition,
holding and  transfer of such Note will not give rise to a nonexempt  prohibited
transaction  under  Section 406 of ERISA or Section 4975 of the Code and (B) the
Notes are rated  investment  grade or better and such person  believes  that the
Notes are properly treated as indebtedness  without  substantial equity features
for purposes of the Department of Labor regulation 29 C.F.R. Section 2510.3-101,
and agrees to so treat the Notes. Alternatively, regardless of the rating of the
Notes,  such  person  may  provide  the  Securities  Administrator  and the Note
Registrar  with an opinion of counsel,  which  opinion of counsel will not be at
the expense of the Issuer, the Seller, the Owner Trustee, the Indenture Trustee,
the Securities  Administrator,  the Note  Registrar,  the Master Servicer or any
servicer which opines that the acquisition, holding and transfer of such Note or
interest  therein is permissible  under  applicable  law, will not constitute or
result in a non-exempt prohibited transaction under ERISA or Section 4975 of the
Code and will not subject  the Issuer,  the  Seller,  the  Depositor,  the Owner
Trustee,  the  Indenture  Trustee,  the  Securities   Administrator,   the  Note
Registrar,  the Master Servicer or any Servicer to any obligation in addition to
those undertaken in the Indenture and the other Basic Documents.

      No transfer of any Privately  Offered Notes or any interest  therein shall
be made to any Person  unless the Indenture  Trustee and the Note  Registrar are
provided with an Opinion of Counsel which establishes to the satisfaction of the
Indenture  Trustee  and the Note  Registrar  that the  purchase  of the Notes is
permissible  under  applicable  law,  will  not  constitute  or  result  in  any
prohibited  transaction  under  ERISA or  Section  4975 of the Code and will not
subject the Issuer,  the Seller, the Owner Trustee,  the Indenture Trustee,  the
Master Servicer or the Note Registrar to any obligation or liability  (including
obligations or liabilities  under ERISA or Section 4975 of the Code) in addition
to those undertaken in this Indenture,  which Opinion of Counsel shall not be an
expense  of the  Depositor,  the  Owner  Trustee,  the  Indenture  Trustee,  the
Securities Administrator, the Notes Registrar or the Master Servicer. In lieu of
such  Opinion  of  Counsel,   a  Person   acquiring  the  Notes  may  provide  a
certification  in the form each  attached  hereto as paragraph 3 of Exhibit C or
clause (d) of Exhibit D, which the Issuer,  the Seller,  the Owner Trustee,  the
Indenture  Trustee,  the Master  Servicer and the Note  Registrar  may rely upon
without  further inquiry or  investigation.  Neither an Opinion of Counsel nor a
certification  will be required in connection  with the initial  transfer of any
such Notes by the Depositor to an affiliate

                                       29

<PAGE>

of the Depositor (in which case, the Depositor or any affiliate thereof shall be
deemed  to have  represented  that  such  affiliate  is not a Plan  or a  Person
investing Plan Assets of any Plan) and the Owner Trustee, the Indenture Trustee,
the Master Servicer and the Note Register shall be entitled to conclusively rely
upon a  representation  (which,  upon the  request  of the  Owner  Trustee,  the
Indenture Trustee, the Master Servicer and the Note Register, shall be a written
representation)  from the  Depositor  of the  status  of such  transferee  as an
affiliate of the Depositor.

                                       30

<PAGE>

                                    ARTICLE V

                              DEFAULT AND REMEDIES

      Section 5.01 Events of Default.  The Issuer shall deliver to the Indenture
Trustee, within five days after learning of the occurrence of a Default, written
notice  in the form of an  Officer's  Certificate  of any event  which  with the
giving of notice  and the lapse of time would  become an Event of Default  under
clause (ii),  (iii) or (iv) of the definition of "Event of Default",  its status
and what action the Issuer is taking or proposes to take with  respect  thereto.
The Indenture  Trustee  shall not be deemed to have  knowledge of any Default or
Event of Default unless a Responsible  Officer has actual  knowledge  thereof or
unless  written  notice of such  Default or Event of Default  is  received  by a
Responsible  Officer and such notice  references the Notes,  the Trust Estate or
this Indenture.

      Section 5.02  Acceleration  of Maturity;  Rescission and Annulment.  If an
Event of Default should occur and be continuing, then and in every such case the
Indenture  Trustee at the  written  direction  of the  Holders  of Senior  Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes may declare such Notes to be immediately due and payable,  by a notice
in writing to the Issuer (and to the  Indenture  Trustee if such notice is given
by Noteholders), and upon any such declaration the unpaid Note Principal Balance
of such Notes,  together with accrued and unpaid  interest  thereon  through the
date of acceleration, shall become immediately due and payable.

      At any time  after such  declaration  of  acceleration  of  maturity  with
respect to an Event of Default has been made and before a judgment or decree for
payment  of the  money  due  has  been  obtained  by the  Indenture  Trustee  as
hereinafter in this Article V provided, Holders of the Senior Notes representing
not less than a majority of the aggregate Note  Principal  Balance of each Class
of Notes,  by  written  notice to the  Issuer and the  Indenture  Trustee,  may,
subject to Section  5.12,  waive the  related  Event of Default  and rescind and
annul such declaration and its consequences if:

            (i)   the Issuer has paid or deposited with the Indenture Trustee or
Securities Administrator a sum sufficient to pay:

                  (A)   all  payments of principal of and interest on the Senior
      Notes and all other  amounts that would then be due hereunder or under the
      Senior Notes if the Event of Default giving rise to such  acceleration had
      not occurred;

                  (B)   all  sums  paid or  advanced  by the  Indenture  Trustee
      hereunder and the reasonable  compensation,  expenses,  disbursements  and
      advances of the Indenture Trustee and its agents and counsel; and

            (ii)  all  Events  of  Default,  other  than the  nonpayment  of the
principal of the Senior  Notes that has become due solely by such  acceleration,
have been cured or waived as provided in Section 5.12.

No such  rescission  shall  affect  any  subsequent  default or impair any right
consequent thereto.

                                       31

<PAGE>

      Section 5.03  Collection  of  Indebtedness  and Suits for  Enforcement  by
Indenture Trustee.

      (a)   The Issuer  covenants  that if (i) default is made in the payment of
any interest on any Senior Note when the same becomes due and payable,  and such
default  continues  for a period of five  days,  or (ii)  default is made in the
payment of the  principal of or any  installment  of the principal of any Senior
Note when the same becomes due and payable, the Issuer shall, upon demand of the
Indenture  Trustee,  acting at the direction of the Holders of a majority of the
aggregate  Note  Principal  Balance of the Senior Notes,  pay to the  Securities
Administrator,  for the benefit of the Holders of such Notes,  the whole  amount
then due and payable on such Notes for principal and interest,  with interest at
the applicable  Note Interest Rate upon the overdue  principal,  and in addition
thereto  such  further  amount  as shall be  sufficient  to cover  the costs and
expenses  of  collection,  including  the  reasonable  compensation,   expenses,
disbursements and advances of the Indenture Trustee and its agents and counsel.

      (b)   In case the Issuer  shall fail  forthwith  to pay such  amounts upon
such demand, the Indenture Trustee, in its own name and as trustee of an express
trust,  subject to the  provisions  of Section  10.15  hereof,  may  institute a
Proceeding for the  collection of the sums so due and unpaid,  and may prosecute
such  Proceeding to judgment or final  decree,  and may enforce the same against
the Issuer or other obligor upon the Notes and collect in the manner provided by
law out of the property of the Issuer or other obligor upon the Notes,  wherever
situated, the monies adjudged or decreed to be payable.

      (c)   If an Event of  Default  occurs  and is  continuing,  the  Indenture
Trustee,  subject  to the  provisions  of Section  10.15  hereof,  may,  as more
particularly  provided in Section 5.04  hereof,  in its  discretion,  proceed to
protect  and  enforce  its  rights  and the  rights of the  Noteholders  by such
appropriate  Proceedings  as directed in writing by Holders of a majority of the
aggregate Note Principal  Balance of each Class of Senior Notes,  to protect and
enforce any such rights, whether for the specific enforcement of any covenant or
agreement  in this  Indenture  or in aid of the  exercise  of any power  granted
herein, or to enforce any other proper remedy or legal or equitable right vested
in the Indenture Trustee by this Indenture or by law.

      (d)   In case there shall be pending,  relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust  Estate,  Proceedings  under Title 11 of the United States Code or any
other applicable  federal or state bankruptcy,  insolvency or other similar law,
or in case a receiver,  assignee  or trustee in  bankruptcy  or  reorganization,
liquidator,  sequestrator  or similar  official shall have been appointed for or
taken  possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial  Proceedings  relative to the Issuer
or other  obligor upon the Notes,  or to the creditors or property of the Issuer
or such other obligor,  the Indenture Trustee, as directed in writing by Holders
of a majority of the aggregate  Note  Principal  Balance of each Class of Notes,
irrespective of whether the principal of any Notes shall then be due and payable
as therein  expressed or by declaration or otherwise and irrespective of whether
the Indenture  Trustee shall have made any demand  pursuant to the provisions of
this  Section,  shall  be  entitled  and  empowered,  by  intervention  in  such
Proceedings or otherwise:

            (i)   to file and  prove a claim or claims  for the whole  amount of
principal  and  interest  owing and unpaid in respect of the Senior Notes and to
file such other papers or

                                       32

<PAGE>

documents  as may be  necessary  or advisable in order to have the claims of the
Indenture  Trustee  (including  any claim  for  reasonable  compensation  to the
Indenture Trustee and each predecessor  Indenture Trustee,  and their respective
agents,  attorneys  and  counsel,  and for  reimbursement  of all  expenses  and
liabilities  incurred,  and all advances made, by the Indenture Trustee and each
predecessor  Indenture  Trustee,  except  as a  result  of  negligence,  willful
misconduct or bad faith) and of the Noteholders allowed in such Proceedings;

            (ii)  unless  prohibited by applicable law and regulations,  to vote
on  behalf of the  Holders  of Notes in any  election  of a  trustee,  a standby
trustee or Person performing similar functions in any such Proceedings;

            (iii) to collect and receive any monies or other property payable or
deliverable  on any such  claims and to  distribute  all amounts  received  with
respect to the claims of the Noteholders  and of the Indenture  Trustee on their
behalf, and

            (iv)  to file such proofs of claim and other  papers or documents as
may be  necessary  or  advisable  in order to have the  claims of the  Indenture
Trustee or the Holders of Notes allowed in any judicial  proceedings relative to
the Issuer, its creditors and its property;

and any trustee,  receiver,  liquidator,  custodian or other similar official in
any such  Proceeding is hereby  authorized by each of such  Noteholders  to make
payments to the Securities  Administrator,  and, in the event that the Indenture
Trustee shall consent to the making of payments directly to such Noteholders, to
pay to the  Indenture  Trustee  such  amounts  as shall be  sufficient  to cover
reasonable  compensation to the Indenture  Trustee,  each predecessor  Indenture
Trustee  and their  respective  agents,  attorneys  and  counsel,  and all other
expenses and  liabilities  incurred,  and all advances  made,  by the  Indenture
Trustee and each predecessor Indenture Trustee.

      (e)   Nothing herein  contained shall be deemed to authorize the Indenture
Trustee to  authorize  or consent to or vote for or accept or adopt on behalf of
any  Noteholder  any  plan  of   reorganization,   arrangement,   adjustment  or
composition  affecting  the Notes or the  rights  of any  Holder  thereof  or to
authorize  the  Indenture  Trustee  to  vote  in  respect  of the  claim  of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar Person.

      (f)   All rights of action and of asserting  claims under this  Indenture,
or under any of the Notes, may be enforced by the Indenture  Trustee without the
possession of any of the Notes or the  production  thereof in any trial or other
Proceedings relative thereto,  and any such action or proceedings  instituted by
the Indenture  Trustee shall be brought in its own name as trustee of an express
trust,  and any  recovery of judgment,  subject to the payment of the  expenses,
disbursements  and  compensation  of the  Indenture  Trustee,  each  predecessor
Indenture  Trustee and their respective  agents and attorneys,  shall be for the
ratable benefit of the Holders of the Notes, subject to Section 5.05 hereof.

      In any  Proceedings  brought  by  the  Indenture  Trustee  (and  also  any
Proceedings  involving the  interpretation of any provision of this Indenture to
which the Indenture  Trustee shall be a party),  the Indenture  Trustee shall be
held to represent all the Holders of the Notes, and it shall not be necessary to
make any Noteholder a party to any such Proceedings.

                                       33

<PAGE>

      Section 5.04 Remedies;  Priorities.  (a) If an Event of Default shall have
occurred and be  continuing  and if an  acceleration  has been  declared and not
rescinded pursuant to Section 5.02 hereof, the Indenture Trustee, subject to the
provisions of Section 10.15 hereof,  may, and shall, at the written direction of
the Holders of a majority of the aggregate Note Principal  Balance of the Senior
Notes, do one or more of the following (subject to Section 5.05 hereof):

            (i)   institute  Proceedings  in its own name and as  trustee  of an
express trust for the collection of all amounts then payable on the Senior Notes
or under  this  Indenture  with  respect  thereto,  whether  by  declaration  or
otherwise,  enforce any judgment  obtained,  and collect from the Issuer and any
other obligor upon such Notes monies adjudged due;

            (ii)  institute  Proceedings  from time to time for the  complete or
partial foreclosure of this Indenture with respect to the Trust Estate;

            (iii) exercise  any  remedies  of a secured  party under the UCC and
take any other appropriate action to protect and enforce the rights and remedies
of the Indenture Trustee and the Holders of the Notes; and

            (iv)  sell the Trust  Estate  or any  portion  thereof  or rights or
interest therein, at one or more public or private sales called and conducted in
any manner permitted by law;

provided,  however,  that  the  Indenture  Trustee  may not  sell  or  otherwise
liquidate  the  Trust  Estate  following  an Event of  Default,  unless  (A) the
Indenture  Trustee  obtains the consent of the Holders of 100% of the  aggregate
Note Principal Balance of the Senior Notes then outstanding, (B) the proceeds of
such sale or  liquidation  distributable  to the Holders of the Senior Notes are
sufficient to discharge in full all amounts then due and unpaid upon such Senior
Notes for principal and interest or (C) the Indenture  Trustee  determines  that
the Mortgage Loans will not continue to provide sufficient funds for the payment
of  principal  of and interest on the Senior Notes as they would have become due
if the Senior Notes had not been  declared due and  payable,  and the  Indenture
Trustee  obtains  the consent of the  Holders of 66 2/3% of the  aggregate  Note
Principal  Balance  of each  Class of  Senior  Notes  then  outstanding,  voting
separately.  In determining such  sufficiency or  insufficiency  with respect to
clause (B) and (C), the  Indenture  Trustee  may, but need not,  obtain and rely
upon an  opinion  (obtained  at the  expense  of the  Trust)  of an  Independent
investment  banking  or  accounting  firm  of  national  reputation  as  to  the
feasibility  of such  proposed  action  and as to the  sufficiency  of the Trust
Estate for such purpose.  Notwithstanding  the foregoing,  any Sale of the Trust
Estate shall be made subject to the continued servicing of the Mortgage Loans by
the  Servicer  (other  than any  Servicer  as to  which  an  Event  of  Servicer
Termination  has  occurred  and is  continuing)  as  provided  in the  Sale  and
Servicing Agreement.

      (b)   If the Indenture  Trustee or the Securities  Administrator  collects
any money or property  pursuant to this Article V, the Securities  Administrator
shall pay out the money or property in the following order:

            FIRST:  to the  Indenture  Trustee,  the  Securities  Administrator,
      Master  Servicer,  the Owner Trustee,  the Custodian and the Servicers for
      amounts due and not  previously  paid  pursuant to the  Indenture  and the
      other Basic Documents;

                                       34

<PAGE>

            SECOND:  to the Class 1-A, Class 2-A and Class 3-A Noteholders,  pro
      rata,  for amounts  due and unpaid on such Notes with  respect to interest
      (not including any Basis Risk Shortfall Carryover  Amounts),  according to
      the amounts due and payable on each such Notes for interest;

            THIRD:  to the Class 1-A, Class 2-A and Class 3-A  Noteholders,  pro
      rata,  for amounts due and unpaid on such Notes with respect to principal,
      and to each such Noteholder ratably, without preference or priority of any
      kind,  according  to the  amounts  due  and  payable  on  such  Notes  for
      principal,  until the Note Principal Balance of each such Class is reduced
      to zero;

            FOURTH:  to the Class 1-A, Class 2-A and Class 3-A Noteholders,  pro
      rata,  in each  case  based on the  amount  of any  Basis  Risk  Shortfall
      Carryover Amounts not previously paid;

            FIFTH: to the Class X Noteholders for amounts due and unpaid on such
      Notes with respect to interest;

            SIXTH: first, to the Class M-1 Noteholders, second, to the Class M-2
      Noteholders, third, to the Class M-3 Noteholders, fourth, to the Class B-1
      Noteholders,  fifth,  to the Class B-2 Notes and  sixth,  to the Class B-3
      Notes,  according  to the amounts due and payable on such Classes of Notes
      for interest and principal; and

            EIGHTH:  to the holders of the Trust  Certificates  on behalf of the
      Issuer.

      The  Securities  Administrator  may fix a record date and Payment Date for
any payment to  Noteholders  pursuant  to this  Section  5.04.  At least 15 days
before  such  record  date,  the  Securities  Administrator  shall  mail to each
Noteholder a notice that states the record date, the Payment Date and the amount
to be paid.

      Section 5.05 Optional  Preservation of the Trust Estate. If the Notes have
been  declared to be due and payable  under  Section 5.02  following an Event of
Default and such  declaration and its  consequences  have not been rescinded and
annulled, the Indenture Trustee may elect to take and maintain possession of the
Trust Estate.  It is the desire of the parties hereto and the  Noteholders  that
there be at all times  sufficient  funds for the  payment  of  principal  of and
interest on the Notes and other  obligations  of the Issuer,  and the  Indenture
Trustee shall take such desire into account when  determining  whether or not to
take and maintain possession of the Trust Estate. In determining whether to take
and maintain possession of the Trust Estate, the Indenture Trustee may, but need
not,  obtain and rely upon an opinion of an  Independent  investment  banking or
accounting  firm of national  reputation as to the  feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

      Section  5.06  Limitation  of Suits.  No Holder of any Note shall have any
right to institute any Proceeding,  judicial or otherwise,  with respect to this
Indenture,  or for the  appointment  of a receiver or trustee,  or for any other
remedy  hereunder,  unless and subject to the  foregoing  and the  provisions of
Section 10.15 hereof:

                                       35

<PAGE>

            (i)   such  Holder  has  previously  given  written  notice  to  the
Indenture Trustee of a continuing Event of Default;

            (ii)  the  Holders  of not  less  than  25% of  the  aggregate  Note
Principal  Balance  of the  Senior  Notes  have  made a written  request  to the
Indenture  Trustee  to  institute  such  Proceeding  in respect of such Event of
Default in its own name as Indenture Trustee hereunder;

            (iii) such Holder or Holders have offered to the  Indenture  Trustee
reasonable indemnity against the costs,  expenses and liabilities to be incurred
in complying with such request;

            (iv)  the Indenture  Trustee,  for 60 days after its receipt of such
notice  of  request  and  offer of  indemnity,  has  failed  to  institute  such
Proceedings; and

            (v)   no direction  inconsistent  with such written request has been
given to the  Indenture  Trustee  during such 60-day  period by the Holders of a
majority of the Note Principal Balances of the Senior Notes.

      It is  understood  and intended that no one or more Holders of Notes shall
have any right in any  manner  whatever  by virtue  of, or by  availing  of, any
provision of this  Indenture to affect,  disturb or prejudice  the rights of any
other Holders of Notes or to obtain or to seek to obtain  priority or preference
over any other Holders or to enforce any right under this  Indenture,  except in
the manner herein provided.

      Subject to the last  paragraph of Section  5.11  herein,  in the event the
Indenture  Trustee  shall  receive  conflicting  or  inconsistent  requests  and
indemnity from two or more groups of Holders of Notes,  each  representing  less
than a majority of the aggregate Note Principal Balance of the Senior Notes, the
Indenture   Trustee   shall  take  such  action  as  requested  by  the  Holders
representing  the  highest  amount  (in the  aggregate)  of the  Note  Principal
Balances, notwithstanding any other provisions of this Indenture.

      Section 5.07 Unconditional  Rights of Noteholders To Receive Principal and
Interest.  Notwithstanding any other provisions in this Indenture, the Holder of
any Senior Note shall have the right,  which is absolute and  unconditional,  to
receive  payment of the  principal of and  interest,  if any, on such Note on or
after  the  respective  due  dates  thereof  expressed  in such  Note or in this
Indenture and to institute  suit for the  enforcement  of any such payment,  and
such right shall not be impaired without the consent of such Holder.

      Section 5.08 Restoration of Rights and Remedies.  If the Indenture Trustee
or any  Noteholder  has instituted any Proceeding to enforce any right or remedy
under this Indenture and such Proceeding has been  discontinued or abandoned for
any reason or has been determined  adversely to the Indenture Trustee or to such
Noteholder,  then and in every such case the Issuer,  the Indenture  Trustee and
the Noteholders  shall,  subject to any  determination  in such  Proceeding,  be
restored  severally and  respectively to their former positions  hereunder,  and
thereafter all rights and remedies of the Indenture  Trustee and the Noteholders
shall continue as though no such Proceeding had been instituted.

                                       36

<PAGE>

      Section 5.09 Rights and  Remedies  Cumulative.  No right or remedy  herein
conferred  upon or reserved to the Indenture  Trustee or to the  Noteholders  is
intended  to be  exclusive  of any other  right or remedy,  and every  right and
remedy shall,  to the extent  permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or  otherwise.  The  assertion or employment of any right or remedy
hereunder,  or  otherwise,   shall  not  prevent  the  concurrent  assertion  or
employment of any other appropriate right or remedy.

      Section 5.10 Delay or Omission  Not a Waiver.  No delay or omission of the
Indenture  Trustee  or any  Holder of any Note to  exercise  any right or remedy
accruing  upon any Event of  Default  shall  impair  any such right or remedy or
constitute  a waiver of any such Event of Default  or an  acquiescence  therein.
Every  right  and  remedy  given by this  Article  V or by law to the  Indenture
Trustee or to the  Noteholders  may be exercised from time to time, and as often
as may be deemed expedient,  by the Indenture Trustee or by the Noteholders,  as
the case may be.

      Section  5.11  Control By  Noteholders.  The  Holders of a majority of the
aggregate Note Principal  Balance of Senior Notes shall have the right to direct
the time, method and place of conducting any Proceeding for any remedy available
to the Indenture  Trustee with respect to the Notes or  exercising  any trust or
power conferred on the Indenture Trustee; provided that:

            (i)   such  direction  shall not be in conflict with any rule of law
or with this Indenture;

            (ii)  any  direction to the  Indenture  Trustee to sell or liquidate
the Trust Estate shall be by Holders of Notes representing not less than 100% of
the aggregate  Note  Principal  Balance of the Senior Notes or the Holders of 66
2/3% of the aggregate Note Principal  Balance of each Class of Senior Notes then
outstanding, voting separately as set forth in Section 5.04(a) hereof; and

            (iii) the Indenture  Trustee may take any other action deemed proper
by the Indenture  Trustee that is not  inconsistent  with such  direction of the
Holders of the  Senior  Notes  representing  a majority  of the  aggregate  Note
Principal Balance of the Senior Notes.

      Notwithstanding  the rights of Noteholders  set forth in this Section 5.11
the Indenture  Trustee need not take any action that it determines might involve
it in liability.

      Section  5.12 Waiver of Past  Defaults.  Prior to the  declaration  of the
acceleration  of the  maturity of the Notes as provided in Section  5.02 hereof,
the Holders of Notes representing not less than a majority of the aggregate Note
Principal  Balance  of each  Class of Senior  Notes may waive any past  Event of
Default  and its  consequences  except an Event of Default  (a) with  respect to
payment  of  principal  of or  interest  on any of the Senior  Notes,  or (b) in
respect of a covenant or  provision  hereof  which cannot be modified or amended
without the consent of the Holder of each Senior  Note.  In the case of any such
waiver,  the Issuer, the Indenture Trustee and the Holders of the Notes shall be
restored to their former positions and rights  hereunder,  respectively,  but no
such waiver shall extend to any  subsequent  or other Event of Default or impair
any right consequent thereto.

                                       37

<PAGE>

      Upon any such  waiver,  any Event of Default  arising  therefrom  shall be
deemed to have been  cured and not to have  occurred  for every  purpose of this
Indenture;  but no such waiver shall extend to any  subsequent or other Event of
Default or impair any right consequent thereto.

      Section 5.13  Undertaking for Costs.  All parties to this Indenture agree,
and each Holder of any Note and each Beneficial Owner of any interest therein by
such Holder's or Beneficial  Owner's  acceptance thereof shall be deemed to have
agreed,  that  any  court  may in its  discretion  require,  in any suit for the
enforcement of any right or remedy under this Indenture,  or in any suit against
the  Indenture  Trustee  for any  action  taken,  suffered  or  omitted by it as
Indenture  Trustee,  the  filing  by any  party  litigant  in  such  suit  of an
undertaking  to pay the  costs of such  suit,  and that  such  court  may in its
discretion  assess  reasonable  costs,  including  reasonable  attorneys'  fees,
against  any party  litigant  in such suit,  having due regard to the merits and
good  faith of the  claims or  defenses  made by such  party  litigant;  but the
provisions  of this Section 5.13 shall not apply to (a) any suit  instituted  by
the Indenture  Trustee,  (b) any suit instituted by any Noteholder,  or group of
Noteholders,  in each case  holding in the  aggregate  more than 10% of the Note
Principal  Balances  of the  Senior  Notes  or (c) any  suit  instituted  by any
Noteholder for the enforcement of the payment of principal of or interest on any
Note on or after the  respective  due dates  expressed  in such Note and in this
Indenture.

      Section 5.14 Waiver of Stay or Extension  Laws.  The Issuer  covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension  law  wherever  enacted,  now or at any time  hereafter in
force,  that may affect the covenants or the performance of this Indenture;  and
the Issuer (to the extent that it may  lawfully do so) hereby  expressly  waives
all  benefit  or  advantage  of any such law,  and  covenants  that it shall not
hinder,  delay or impede  the  execution  of any  power  herein  granted  to the
Indenture Trustee,  but will suffer and permit the execution of every such power
as though no such law had been enacted.

      Section  5.15 Sale of Trust  Estate.  (a) The power to effect  any sale or
other  disposition  (a "Sale") of any  portion of the Trust  Estate  pursuant to
Section 5.04 hereof is expressly  subject to the provisions of Sections 5.05 and
5.11(ii)  hereof and this Section 5.15.  The power to effect any such Sale shall
not be  exhausted by any one or more Sales as to any portion of the Trust Estate
remaining  unsold,  but shall continue  unimpaired until the entire Trust Estate
shall  have  been sold or all  amounts  payable  on the  Notes  and  under  this
Indenture  shall have been paid.  The  Indenture  Trustee  may from time to time
postpone  any public Sale by public  announcement  made at the time and place of
such Sale. The Indenture Trustee hereby expressly waives its right to any amount
fixed by law as compensation for any Sale.

      (b)   The  Indenture  Trustee shall not in any private Sale sell the Trust
Estate, or any portion thereof, unless

            (1)   the  Holders  of all  Senior  Notes  consent  to or direct the
      Indenture Trustee to make, such Sale, or

            (2)   the  proceeds  of such Sale  would be not less than the entire
      amount which would be payable to the Senior  Noteholders  under the Notes,
      in full payment  thereof in  accordance  with Section 5.02 hereof,  on the
      Payment Date next succeeding the date of such Sale, or

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<PAGE>

            (3)   the  Indenture  Trustee  determines  that the  conditions  for
      retention of the Trust  Estate set forth in Section 5.05 hereof  cannot be
      satisfied (in making any such  determination,  the  Indenture  Trustee may
      rely upon an opinion of an  Independent  investment  banking firm obtained
      and  delivered  as provided in Section  5.05  hereof),  and the Holders of
      Notes  representing  at least 100% of the Note  Principal  Balances of the
      Senior Notes consent to such Sale.

The purchase by the Indenture  Trustee of all or any portion of the Trust Estate
at a private  Sale shall not be deemed a Sale or other  disposition  thereof for
purposes of this Section 5.15(b).

      (c)   Subject to this Section  5.15,  unless the Holders  representing  at
least 100% of the aggregate  Note  Principal  Balance of the Senior Notes or the
Holders  of 66 2/3% of the  aggregate  Note  Principal  Balance of each Class of
Senior Notes then outstanding, voting separately as set forth in Section 5.04(a)
hereof,  have  otherwise  consented or directed the  Indenture  Trustee,  at any
public  Sale of all or any  portion of the Trust  Estate at which a minimum  bid
equal to or greater than the amount described in paragraph (2) of subsection (b)
of this Section 5.15 has not been  established  by the Indenture  Trustee and no
Person  bids an amount  equal to or  greater  than such  amount,  the  Indenture
Trustee,  as trustee for the  benefit of the Holders of the Notes,  shall bid an
amount (which shall include the Indenture  Trustee's  right,  in its capacity as
Indenture Trustee, to credit bid) at least $1.00 more than the highest other bid
in order to preserve the Trust Estate on behalf of the Noteholders.

      (d)   In connection with a Sale of all or any portion of the Trust Estate,

            (1)   any Holder or Holders  of Notes may bid for and  purchase  the
      property  offered for sale, and upon compliance with the terms of sale may
      hold,  retain and possess and dispose of such  property,  without  further
      accountability,  and may, in paying the purchase money  therefor,  deliver
      any Notes or claims for interest  thereon in lieu of cash up to the amount
      which  shall,  upon  distribution  of the net  proceeds  of such sale,  be
      payable  thereon,  and such Notes,  in case the amounts so payable thereon
      shall be less  than the  amount  due  thereon,  shall be  returned  to the
      Holders  thereof  after being  appropriately  stamped to show such partial
      payment;

            (2)   the  Indenture  Trustee may bid for and  acquire the  property
      offered for Sale in connection with any Sale thereof,  and, subject to any
      requirements  of,  and to  the  extent  permitted  by,  applicable  law in
      connection therewith,  may purchase all or any portion of the Trust Estate
      in a  private  sale,  and,  in lieu of  paying  cash  therefor,  may  make
      settlement  for the  purchase  price by  crediting  the gross  Sale  price
      against  the sum of (A) the amount  which  would be  distributable  to the
      Holders of the Notes and Holders of  Certificates on the Payment Date next
      succeeding  the date of such Sale and (B) the  expenses of the Sale and of
      any  Proceedings in connection  therewith  which are  reimbursable  to it,
      without being  required to produce the Notes in order to complete any such
      Sale or in order for the net Sale price to be credited against such Notes,
      and any property so acquired by the  Indenture  Trustee  shall be held and
      dealt with by it in accordance with the provisions of this Indenture;

            (3)   the Indenture Trustee shall execute and deliver an appropriate
      instrument of conveyance,  prepared by the Issuer and  satisfactory to the
      Indenture Trustee,

                                       39

<PAGE>

      transferring its interest in any portion of the Trust Estate in connection
      with a Sale thereof;

            (4)   the  Indenture  Trustee is hereby  irrevocably  appointed  the
      agent and  attorney-in-fact  of the  Issuer to  transfer  and  convey  its
      interest  in any  portion of the Trust  Estate in  connection  with a Sale
      thereof, and to take all action necessary to effect such Sale; and

            (5)   no  purchaser or  transferee  at such a Sale shall be bound to
      ascertain the Indenture Trustee's authority, inquire into the satisfaction
      of any conditions precedent or see to the application of any monies.

      Section 5.16 Action on Notes.  The Indenture  Trustee's  right to seek and
recover  judgment on the Notes or under this Indenture  shall not be affected by
the seeking,  obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture  Trustee  against the Issuer or by the levy of any
execution  under such  judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer.  Any money or property  collected by the  Indenture
Trustee or the  Securities  Administrator  shall be  applied  by the  Securities
Administrator in accordance with Section 5.04(b) hereof.

                                       40

<PAGE>

                                   ARTICLE VI

             THE INDENTURE TRUSTEE AND THE SECURITIES ADMINISTRATOR

      Section 6.01 Duties of Indenture Trustee and Securities Administrator. (a)
If an Event of Default has occurred and is  continuing,  the  Indenture  Trustee
shall  exercise the rights and powers vested in it by this Indenture and use the
same  degree  of care and skill in their  exercise  as a  prudent  person  would
exercise  or use under the  circumstances  in the conduct of such  person's  own
affairs.

      (b)  Except  during  the  continuance  of an Event of Default of which
the Indenture  Trustee has actual knowledge or has received  written notice,  in
the  case  of the  Indenture  Trustee  and,  at any  time,  in the  case  of the
Securities Administrator:

          (i) the Indenture Trustee and the Securities  Administrator undertakes
to perform  such  duties and only such duties as are  specifically  set forth in
this  Indenture  and the  other  Basic  Documents  to which it is a party and no
implied covenants or obligations shall be read into this Indenture and the other
Basic Documents against the Indenture  Trustee or the Securities  Administrator;
and

          (ii) in the absence of bad faith on its part,  the  Indenture  Trustee
and the Securities  Administrator may conclusively  rely, as to the truth of the
statements  and  the  correctness  of  the  opinions  expressed  therein,   upon
certificates,  reports,  documents,  Issuer  Requests  or other  instruments  or
opinions  furnished  to  each  of  the  Indenture  Trustee  and  the  Securities
Administrator  and conforming to the requirements of this Indenture or the other
Basic Documents; however, the Indenture Trustee and the Securities Administrator
shall examine the  certificates,  reports,  documents,  Issuer Requests or other
instruments and opinions to determine  whether or not they conform on their face
to the requirements of this Indenture.

      (c) The  Indenture  Trustee and the  Securities  Administrator  may not be
relieved from liability for each of its own negligent action,  its own negligent
failure to act or its own willful misconduct, except that:

          (i) this  paragraph does not limit the effect of paragraph (b) of this
Section 6.01;

          (ii) neither the Indenture  Trustee nor the  Securities  Administrator
shall  not be  liable  for  any  error  of  judgment  made in  good  faith  by a
Responsible  Officer  unless  it is proved  that the  Indenture  Trustee  or the
Securities  Administrator,  as  applicable,  was negligent in  ascertaining  the
pertinent facts; and

          (iii) neither the Indenture  Trustee nor the Securities  Administrator
shall be liable  with  respect  to any  action it takes or omits to take in good
faith in  accordance  with a  direction  received  by it from  Noteholders,  the
Certificateholders or from the Issuer, which they are entitled to give under the
Basic Documents.

                                       41

<PAGE>

      (d) The  Indenture  Trustee  shall not be liable for interest on any money
received by it except as set forth in the Basic  Documents  and as the Indenture
Trustee may agree in writing with the Issuer.

      (e) Money held in trust by the  Indenture  Trustee need not be  segregated
from other trust funds except to the extent required by law or the terms of this
Indenture or the Trust Agreement.

      (f) No provision of this Indenture shall require the Indenture  Trustee or
the Securities  Administrator to expend or risk its own funds or otherwise incur
financial  liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers, if it shall have reasonable  grounds to
believe that  repayment of such funds or  indemnity  satisfactory  to it against
such risk or liability is not reasonably assured to it.

      (g) Every provision of this Indenture relating to the conduct or affecting
the  liability of or affording  protection  to the  Indenture  Trustee  shall be
subject to the provisions of this Section.

      (h) The Indenture  Trustee shall not be deemed to have notice or knowledge
of any Default or Event of Default unless a Responsible Officer of the Indenture
Trustee has actual knowledge  thereof or unless written notice of any such event
that is in fact an Event of  Default or Default  is  received  by the  Indenture
Trustee at its Corporate  Trust Office and such notice  references  the Notes or
Certificates generally, the Issuer, the Trust Estate or this Indenture.

      Section 6.02 Rights of Indenture Trustee and Securities Administrator. (a)
The Indenture Trustee and the Securities  Administrator may rely on any document
believed by it to be genuine and to have been signed or  presented by the proper
person.  The  Indenture  Trustee  and  the  Securities  Administrator  need  not
investigate any fact or matter stated in the document.

      (b) Before the Indenture Trustee or the Securities  Administrator  acts or
refrains from acting,  it may require an Officer's  Certificate or an Opinion of
Counsel. Neither the Indenture Trustee nor the Securities Administrator shall be
liable for any action it takes or omits to take in good faith in reliance on and
in accordance with an Officer's Certificate or Opinion of Counsel.

      (c) Neither the Indenture Trustee nor the Securities  Administrator  shall
be  liable  for any  action  it takes or  omits to take in good  faith  which it
believes to be authorized or within its rights or powers.

      (d) The Indenture Trustee or the Securities Administrator may consult with
counsel, and the written advice or Opinion of Counsel (which shall not be at the
expense of the Indenture Trustee or the Securities  Administrator)  with respect
to legal matters  relating to this Indenture,  the other Basic Documents and the
Notes shall be full and complete  authorization and protection from liability in
respect to any action  taken,  omitted or suffered by it hereunder in good faith
and in accordance with the written advice or opinion of such counsel.

      (e) For the limited  purpose of effecting  any action to be  undertaken by
each  of the  Indenture  Trustee  and  the  Securities  Administrator,  but  not
specifically as a duty of the Indenture Trustee or the Securities  Administrator
in the Indenture, each of the Indenture Trustee

                                       42

<PAGE>

and the  Securities  Administrator  may  execute  any of the  trusts  or  powers
hereunder  or perform  any duties  hereunder,  either  directly or by or through
agents, attorneys, custodians or nominees appointed with due care, and shall not
be  responsible  for any willful  misconduct  or  negligence  on the part of any
agent, attorney, custodian or nominee so appointed.

      (f) The  Securities  Administrator  or its  Affiliates  are  permitted  to
receive  additional  compensation  that could be deemed to be in the  Securities
Administrator's  economic  self-interest for (i) serving as investment  adviser,
administrator,  shareholder  servicing agent,  custodian or  sub-custodian  with
respect to certain of the Permitted Investments, (ii) using Affiliates to effect
transactions in certain Permitted  Investments and (iii) effecting  transactions
in certain Permitted  Investments.  Such compensation shall not be considered an
amount that is  reimbursable or payable to the Securities  Administrator  (i) as
part of the compensation hereunder or (ii) out of Available Funds.

      (g)  Anything in this  Indenture to the  contrary  notwithstanding,  in no
event shall the Indenture Trustee or the Securities  Administrator be liable for
special,  indirect  or  consequential  loss or  damage  of any  kind  whatsoever
(including  but not limited to lost profits),  even if the Indenture  Trustee or
the Securities  Administrator has been advised of the likelihood of such loss or
damage and regardless of the form of action.

      (h) None of the  Securities  Administrator,  the  Issuer or the  Indenture
Trustee shall be  responsible  for the acts or omissions of the other,  it being
understood  that this Indenture  shall not be construed to render them partners,
joint venturers or agents of one another.

      (i) Neither the Indenture Trustee nor the Securities  Administrator  shall
be  required  to  expend  or risk its own  funds or  otherwise  incur  financial
liability in the performance of any of its duties hereunder,  or in the exercise
of any of its rights or powers, if there is reasonable ground for believing that
the repayment of such funds or indemnity  reasonably  satisfactory to it against
such  risk  or  liability  is not  reasonably  assured  to it,  and  none of the
provisions  contained in this Indenture shall in any event require the Indenture
Trustee or the Securities  Administrator  to perform,  or be responsible for the
manner of performance  of, any of the  obligations of the Master  Servicer under
the  Servicing  Agreement,  except  during such time,  if any, as the  Indenture
Trustee shall be the successor to, and be vested with the rights, duties, powers
and  privileges  of, the Master  Servicer  in  accordance  with the terms of the
Servicing Agreement.

      (j) Except for those actions that the Indenture  Trustee or the Securities
Administrator are required to take hereunder,  neither the Indenture Trustee nor
the Securities  Administrator shall have any obligation or liability to take any
action or to refrain from taking any action  hereunder in the absence of written
direction as provided hereunder.

      (k) Neither the Indenture Trustee nor the Securities  Administrator  shall
be under any  obligation to exercise any of the trusts or powers vested in it by
this  Indenture,  other than its  obligation  to give  notices  pursuant to this
Indenture,  or to institute,  conduct or defend any  litigation  hereunder or in
relation  hereto at the request,  order or  direction of any of the  Noteholders
pursuant to the provisions of this Indenture, unless such Noteholders shall have
offered to the Indenture Trustee or the Securities Administrator, as applicable,
reasonable  security or indemnity  against the costs,  expenses and  liabilities
which may be  incurred  therein or  thereby.  Nothing  contained  herein  shall,
however, relieve the Indenture Trustee of the

                                       43

<PAGE>

obligation,  upon the  occurrence  of an Event of Default of which a Responsible
Officer of the Indenture  Trustee has actual knowledge (which has not been cured
or  waived),  to  exercise  such of the rights  and powers  vested in it by this
Indenture  and to use the same  degree of care and skill in their  exercise as a
prudent person would exercise under the  circumstances in the conduct of his own
affairs.

      (l) Neither the Indenture Trustee nor the Securities  Administrator  shall
be bound to make any  investigation  into the  facts or  matters  stated  in any
resolution,   certificate,   statement,  instrument,  opinion,  report,  notice,
request,  consent,  order,  approval,  bond or other paper or  document,  unless
requested in writing to do so by Holders of Notes representing not less than 25%
of the Note Principal  Balance of the Notes and provided that the payment within
a reasonable time to the Indenture Trustee or the Securities  Administrator,  as
applicable, of the costs, expenses or liabilities likely to be incurred by it in
the making of such  investigation is, in the opinion of the Indenture Trustee or
the Securities Administrator, as applicable, reasonably assured to the Indenture
Trustee  by the  security  afforded  to it by the terms of this  Indenture.  The
Indenture  Trustee  or  the  Securities  Administrator  may  require  reasonable
indemnity  against  such  expense or liability as a condition to taking any such
action.  The reasonable  expense of every such examination  shall be paid by the
Noteholders requesting the investigation.

      (m) Should the Indenture Trustee or the Securities  Administrator deem the
nature of any action required on its part to be unclear,  the Indenture  Trustee
or the Securities Administrator,  respectively, may require prior to such action
that it be provided by the Depositor with reasonable further instructions.

      (n) The right of the Indenture Trustee or the Securities  Administrator to
perform  any  discretionary  act  enumerated  in  this  Indenture  shall  not be
construed  as a duty,  and neither  the  Indenture  Trustee  nor the  Securities
Administrator  shall be  accountable  for other than its  negligence  or willful
misconduct in the performance of any such act.

      (o) Neither the Indenture Trustee nor the Securities  Administrator  shall
be  required  to give any bond or surety with  respect to the  execution  of the
trust created hereby or the powers granted hereunder.

      (p) Neither the Indenture Trustee nor the Securities  Administrator  shall
have any duty to conduct any affirmative  investigation  as to the occurrence of
any  condition  requiring  the  repurchase  of any  Mortgage  Loan by the Seller
pursuant  to  this  Indenture  or  the  Mortgage  Loan  Purchase  Agreement,  as
applicable,  or the  eligibility  of any  Mortgage  Loan  for  purposes  of this
Indenture.

      (q) The  Indenture  Trustee  shall not be deemed to have  notice or actual
knowledge  of any  Default  or  Event  of  Default  unless  actually  known to a
Responsible  Officer of the Indenture  Trustee or written notice thereof (making
reference to this  Indenture or the Notes) is received by the Indenture  Trustee
at the Corporate Trust Office.

      Section 6.03 Individual Rights of Indenture Trustee. The Indenture Trustee
in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or its Affiliates with the same rights it
would have if it were not Indenture Trustee,  subject to the requirements of the
Trust Indenture Act. Any Note Registrar,  co-registrar

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<PAGE>

or co-paying  agent may do the same with like  rights.  However,  the  Indenture
Trustee must comply with Section 6.12 hereof.

      Section 6.04 [Reserved].

      Section  6.05   Indenture   Trustee's   and   Securities   Administrator's
Disclaimer. Neither the Indenture Trustee nor the Securities Administrator shall
be responsible for and makes no representation as to the validity or adequacy of
this  Indenture,  the  Notes  or any  other  Basic  Document,  it  shall  not be
accountable  for the Issuer's use of the proceeds  from the Notes,  and it shall
not be  responsible  for any  statement of the Issuer in the Indenture or in any
document  issued in connection  with the sale of the Notes or in the Notes other
than the Securities Administrator's certificate of authentication.

      Section  6.06 Notice of Event of  Default.  Subject to Section  5.01,  the
Indenture  Trustee shall promptly mail to each Noteholder notice of the Event of
Default  after it is known to a Responsible  Officer of the  Indenture  Trustee,
unless such Event of Default shall have been waived or cured. Except in the case
of an Event of Default in payment of principal  of or interest on any Note,  the
Indenture  Trustee may  withhold the notice if and so long as a committee of its
Responsible  Officers in good faith determines that withholding the notice is in
the best interests of Noteholders.

      Section 6.07 Reports to Holders and Tax Administration.

      The  Securities  Administrator  shall  deliver  to  each  Noteholder  such
information  as may be  required  and such other  customary  information  as the
Securities  Administrator  may  determine  and/or be  required  by the  Internal
Revenue  Service or by a federal or state law or rules or  regulations to enable
such holder to prepare its federal and state income tax returns.

      The  Securities  Administrator  shall  prepare  and file  (or  cause to be
prepared and filed),  on behalf of the Owner  Trustee,  all tax returns (if any)
and information  reports,  tax elections and such annual or other reports of the
Issuer as are necessary for preparation of tax returns and  information  reports
as provided in Section 5.03 of the Trust Agreement, including without limitation
Form 1099. All tax returns and information  reports shall be signed by the Owner
Trustee or to the extent  permitted  by law,  the  Securities  Administrator  as
provided in Section 5.03 of the Trust Agreement.

      Section 6.08  Compensation.  An annual fee shall be paid to the  Indenture
Trustee by the Master  Servicer  pursuant  to a separate  agreement  between the
Indenture  Trustee and the Master Servicer.  In addition,  the Indenture Trustee
and the  Securities  Administrator  will each be  entitled  to recover  from the
Payment  Account  pursuant  to Section  3.25 of this  Indenture  all  reasonable
out-of-pocket  expenses,  disbursements  and  advances  and the  expenses of the
Indenture Trustee and the Securities Administrator,  respectively, in connection
with any breach of this  Indenture or any claim or legal action  (including  any
pending or threatened  claim or legal  action) or otherwise  incurred or made by
the Indenture  Trustee or the  Securities  Administrator,  respectively,  in the
administration of the trusts hereunder  (including the reasonable  compensation,
expenses and disbursements of its counsel) except any such expense, disbursement
or advance as may arise from its own  negligence  or  intentional  misconduct or
which  is the  responsibility  of  the  Noteholders  as  provided  herein.  Such
compensation and

                                       45

<PAGE>

reimbursement  obligation shall not be limited by any provision of law in regard
to the compensation of a trustee of an express trust. Additionally,  each of the
Indenture Trustee and the Securities  Administrator  and any director,  officer,
employee or agent of the Indenture Trustee or the Securities Administrator shall
be  indemnified  by the Trust and held harmless  against any loss,  liability or
expense  (including  reasonable  attorney's  fees and expenses)  incurred in the
administration of this Indenture (other than its ordinary out of pocket expenses
incurred  hereunder) or in connection with any claim or legal action relating to
(a) the Basic  Documents  or (b) the Notes,  other than any loss,  liability  or
expense incurred by reason of its own negligence or intentional  misconduct,  or
which is the responsibility of the Noteholders as provided herein.

      The Issuer's payment  obligations to the Indenture  Trustee and Securities
Administrator  pursuant to this Section 6.08 shall survive the discharge of this
Indenture  and the  termination  or  resignation  of the  Indenture  Trustee  or
Securities   Administrator.   When  the  Indenture  Trustee  or  the  Securities
Administrator  incurs  expenses after the occurrence of an Event of Default with
respect to the Issuer,  the  expenses  are  intended to  constitute  expenses of
administration  under Title 11 of the United States Code or any other applicable
federal or state bankruptcy, insolvency or similar law.

      Section  6.09   Replacement  of  Indenture   Trustee  and  the  Securities
Administrator.  No  resignation  or  removal  of the  Indenture  Trustee  or the
Securities  Administrator and no appointment of a successor Indenture Trustee or
a successor Securities Administrator shall become effective until the acceptance
of appointment by the successor Indenture Trustee pursuant to this Section 6.09.
The Indenture Trustee or the Securities  Administrator may resign at any time by
so notifying the Issuer. In the event that the Indenture Trustee determines that
a conflict of interest  exists  between the Holders of the Class A Notes and the
Holders of any Class of Subordinate  Notes,  then the Indenture Trustee shall be
entitled to resign as the indenture  trustee for all Classes of Notes other than
the Class A Notes.  In such event the  Holders of a majority  of Note  Principal
Balances of all of the Subordinate  Notes shall  designate a separate  indenture
trustee to represent  their interests  hereunder.  Holders of a majority of Note
Principal Balances of each Class of Notes may remove the Indenture Trustee by so
notifying the Indenture Trustee and may appoint a successor  Indenture  Trustee.
The Issuer shall remove the Indenture  Trustee or the Securities  Administrator,
as applicable, if:

          (i) the Indenture  Trustee or the  Securities  Administrator  fails to
comply with or qualify pursuant to the provisions of Section 6.12 hereof;

          (ii) the Indenture Trustee or the Securities Administrator is adjudged
a bankrupt or insolvent;

          (iii) a receiver or other public officer takes charge of the Indenture
Trustee or the Securities Administrator or its property;

          (iv) the Indenture Trustee or the Securities  Administrator  otherwise
becomes incapable of acting; or

          (v) the Master Servicer is terminated  pursuant to Section 5.01 of the
Servicing Agreement.

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<PAGE>

      If the Indenture  Trustee or the  Securities  Administrator  resigns or is
removed  or if a vacancy  exists in the office of the  Indenture  Trustee or the
Securities Administrator for any reason (the Indenture Trustee or the Securities
Administrator  in such event being referred to herein as the retiring  Indenture
Trustee or the retiring  Securities  Administrator  ), the Issuer shall promptly
appoint a successor Indenture Trustee or successor Securities Administrator.

      Each  of  a   successor   Indenture   Trustee  or   successor   Securities
Administrator  shall  deliver a written  acceptance  of its  appointment  to the
retiring  Indenture  Trustee  or  the  retiring  Securities  Administrator,   as
applicable,  and to the Issuer.  Thereupon,  the  resignation  or removal of the
retiring Indenture Trustee or the retiring Securities Administrator shall become
effective,   and  the  successor  Indenture  Trustee  or  successor   Securities
Administrator  shall have all the  rights,  powers  and duties of the  Indenture
Trustee or the Securities  Administrator,  as applicable,  under this Indenture.
The successor Indenture Trustee or successor Securities Administrator shall each
mail a notice of its succession to Noteholders.  The retiring  Indenture Trustee
or the retiring  Securities  Administrator  shall promptly transfer all property
held by it as Indenture Trustee or Securities  Administrator,  as applicable, to
the successor Indenture Trustee or successor Securities Administrator.

      If a successor  Indenture  Trustee or successor  Securities  Administrator
does not take office within 60 days after the retiring  Indenture Trustee or the
retiring Securities  Administrator,  as applicable,  resigns or is removed,  the
retiring Indenture Trustee or the retiring Securities Administrator,  the Issuer
or the  Holders  of a  majority  of Note  Principal  Balances  of the  Notes may
petition any court of competent  jurisdiction for the appointment of a successor
Indenture Trustee or successor Securities Administrator.

      Notwithstanding the replacement of the Indenture Trustee or the Securities
Administrator  pursuant to this Section,  the Issuer's obligations under Section
6.07 shall  continue  for the benefit of the retiring  Indenture  Trustee or the
retiring Securities Administrator.

      Section 6.10 Successor  Indenture Trustee and Securities  Administrator by
Merger.  If the Indenture Trustee or the Securities  Administrator  consolidates
with,  merges or converts  into,  or transfers all or  substantially  all of its
corporate   trust  business  or  assets  to,  another   corporation  or  banking
association,  the resulting,  surviving or transferee  corporation,  without any
further act, shall be the successor  Indenture  Trustee or successor  Securities
Administrator,  as  applicable;  provided,  that  such  corporation  or  banking
association shall be otherwise qualified and eligible under Section 6.12 hereof.
The Indenture Trustee and the Securities  Administrator shall provide the Rating
Agencies and the Issuer with prior  written  notice,  and the  Noteholders  with
prompt written notice, of any such transaction.

      If at the time such  successor  or  successors  by merger,  conversion  or
consolidation  to the Indenture  Trustee shall succeed to the trusts  created by
this  Indenture  and any of the  Notes  shall  have been  authenticated  but not
delivered, any such successor to the Indenture Trustee may adopt the certificate
of  authentication  of  any  predecessor  trustee  and  deliver  such  Notes  so
authenticated;  and if at  that  time  any of the  Notes  shall  not  have  been
authenticated,  any successor to the  Indenture  Trustee may  authenticate  such
Notes  either  in the name of any  predecessor  hereunder  or in the name of the
successor  to the  Indenture  Trustee;  and in all such cases such  certificates
shall have the full force  which is in the Notes or in this  Indenture  provided
that the certificate of the Indenture Trustee shall have.

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<PAGE>

      Section 6.11  Appointment of  Co-Indenture  Trustee or Separate  Indenture
Trustee.  (a)  Notwithstanding  any other  provisions of this Indenture,  at any
time, for the purpose of meeting any legal  requirement of any  jurisdiction  in
which any part of the Trust  Estate may at the time be  located,  the  Indenture
Trustee  shall have the power and may execute and  deliver  all  instruments  to
appoint one or more Persons to act as a co-trustee or  co-trustees,  or separate
trustee or separate  trustees,  of all or any part of the Trust  Estate,  and to
vest in such  Person or  Persons,  in such  capacity  and for the benefit of the
Noteholders, such title to the Trust Estate, or any part hereof, and, subject to
the other provisions of this Section, such powers, duties,  obligations,  rights
and trusts as the  Indenture  Trustee may consider  necessary or  desirable.  No
co-trustee or separate trustee  hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.12 hereof.

      (b) Every separate  trustee and co-trustee  shall, to the extent permitted
by law, be appointed and act subject to the following provisions and conditions:

          (i) all rights,  powers,  duties and obligations  conferred or imposed
upon the  Indenture  Trustee shall be conferred or imposed upon and exercised or
performed  by the  Indenture  Trustee and such  separate  trustee or  co-trustee
jointly (it being  understood  that such  separate  trustee or co-trustee is not
authorized to act separately without the Indenture Trustee joining in such act),
except  to the  extent  that  under  any law of any  jurisdiction  in which  any
particular  act or acts  are to be  performed  the  Indenture  Trustee  shall be
incompetent  or  unqualified  to perform  such act or acts,  in which event such
rights,  powers,  duties and obligations  (including the holding of title to the
Trust Estate or any portion thereof in any such jurisdiction) shall be exercised
and performed singly by such separate  trustee or co-trustee,  but solely at the
direction of the Indenture Trustee;

          (ii) no trustee  hereunder shall be personally liable by reason of any
act or omission of any other trustee hereunder; and

          (iii) the Indenture  Trustee may at any time accept the resignation of
or remove any separate trustee or co-trustee.

      (c) Any notice,  request or other writing  given to the Indenture  Trustee
shall be deemed to have been  given to each of the then  separate  trustees  and
co-trustees,  as  effectively  as if  given to each of  them.  Every  instrument
appointing any separate  trustee or co-trustee shall refer to this Indenture and
the conditions of this Article VI. Each separate  trustee and  co-trustee,  upon
its  acceptance  of the trusts  conferred,  shall be vested  with the estates or
property  specified in its  instrument of  appointment,  either jointly with the
Indenture Trustee or separately,  as may be provided therein, subject to all the
provisions of this  Indenture,  specifically  including  every provision of this
Indenture  relating to the conduct of,  affecting the liability of, or affording
protection to, the Indenture Trustee.  Every such instrument shall be filed with
the Indenture Trustee.

      (d) Any separate  trustee or  co-trustee  may at any time  constitute  the
Indenture Trustee, its agent or attorney-in-fact  with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in respect of
this  Indenture  on its  behalf  and in its name.  If any  separate  trustee  or
co-trustee shall die, become incapable of acting,  resign or be removed,  all of
its  estates,  properties,  rights,  remedies  and  trusts  shall vest in and be
exercised by the

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<PAGE>

Indenture Trustee,  to the extent permitted by law, without the appointment of a
new or successor trustee.

      Section 6.12 Eligibility; Disqualification. The Indenture Trustee shall at
all times be an entity that meets the  requirements of Section 3(c)(3) under the
Investment  Company  Act of 1940  applicable  to a  trustee,  and  shall  have a
combined  capital and surplus of at least  $50,000,000  as set forth in its most
recent  published  annual  report of condition and it or its parent shall have a
long-term debt rating of Baa3 or better by Moody's.

      Section 6.13 [Reserved].

      Section 6.14 Representations and Warranties.  The Indenture Trustee hereby
represents that:

          (i) The Indenture  Trustee is duly organized and validly existing as a
national  banking  association  in good  standing  under the laws of the  United
States  with  power and  authority  to own its  properties  and to  conduct  its
business as such  properties are currently  owned and such business is presently
conducted;

          (ii) The Indenture  Trustee has the power and authority to execute and
deliver this Indenture and to carry out its terms;  and the execution,  delivery
and  performance of this  Indenture  have been duly  authorized by the Indenture
Trustee by all necessary corporate action;

          (iii)  The  consummation  of the  transactions  contemplated  by  this
Indenture and the  fulfillment of the terms hereof do not conflict with,  result
in any  breach of any of the terms and  provisions  of, or  constitute  (with or
without notice or lapse of time) a default under,  the articles of incorporation
or bylaws of the Indenture Trustee or any agreement or other instrument to which
the Indenture Trustee is a party or by which it is bound; and

          (iv) To the Indenture Trustee's knowledge, there are no proceedings or
investigations  pending  or  threatened  before  any  court,   regulatory  body,
administrative agency or other governmental  instrumentality having jurisdiction
over the Indenture  Trustee or its  properties:  (A) asserting the invalidity of
this  Indenture,  (B)  seeking  to  prevent  the  consummation  of  any  of  the
transactions  contemplated by this Indenture or (C) seeking any determination or
ruling  that  might  materially  and  adversely  affect the  performance  by the
Indenture  Trustee of its obligations  under, or the validity or  enforceability
of, this Indenture.

      Section  6.15   Directions  to  Indenture   Trustee  and  the   Securities
Administrator. The Indenture Trustee is hereby directed:

      (a) to accept the pledge of the Mortgage  Loans and hold the assets of the
Trust in trust for the Noteholders;

      (b) the Securities  Administrator  is hereby directed to (i)  authenticate
and deliver the Notes  substantially in the form prescribed by Exhibits A-1, A-2
and A-3 to this Indenture in accordance with the terms of this Indenture; and

      (c) to take all  other  actions  as shall be  required  to be taken by the
Securities  Administrator  pursuant to the terms of this Indenture and the other
Basic Documents.

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<PAGE>

      Section 6.16 The Agents.  The provisions of this Indenture relating to the
limitations  of  the  Indenture  Trustee's  liability  and  to  its  rights  and
protections shall inure also to the Paying Agent, Note Registrar and Certificate
Registrar.

                                       50

<PAGE>

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

      Section 7.01 Issuer To Furnish Securities  Administrator Trustee Names and
Addresses  of  Noteholders.  The Issuer will furnish or cause to be furnished to
the Securities Administrator (a) not more than five days after each Record Date,
a list, in such form as the Securities  Administrator may reasonably require, of
the names and addresses of the Holders of Notes as of such Record Date,  and (b)
at such other  times as the  Securities  Administrator  may  request in writing,
within  30 days  after  receipt  by the  Issuer of any such  request,  a list of
similar  form and  content  as of a date not more than 10 days prior to the time
such  list is  furnished;  provided,  however,  that  so long as the  Securities
Administrator  is the Note  Registrar,  no such  list  shall be  required  to be
furnished to the Securities Administrator.

      Section 7.02  Preservation of Information;  Communications to Noteholders.
(a) The  Securities  Administrator  shall  preserve,  in as current a form as is
reasonably  practicable,  the  names  and  addresses  of the  Holders  of  Notes
contained in the most recent list furnished to the Securities  Administrator  as
provided in Section 7.01 hereof and the names and  addresses of Holders of Notes
received by the Securities  Administrator in its capacity as Note Registrar. The
Securities  Administrator  may destroy any list  furnished  to it as provided in
such Section 7.01 upon receipt of a new list so furnished.

      (b)  Noteholders may communicate  with other  Noteholders  with respect to
their rights under this Indenture or under the Notes.

      Section  7.03  Financial  Information.  For so  long  as any of the  Notes
bearing a restrictive legend remains outstanding and is a "restricted  security"
within the meaning of Rule 144(a)(3) under the Securities Act, the Issuer shall,
during  any  period in which it is not  subject  to  Section  13 or 15(d) of the
Exchange Act nor exempt from  reporting  pursuant to Rule  12g3-2(b)  under such
Act, cause the Securities  Administrator  to make available to any Holder of any
such Note in connection with any sale thereof and to any  prospective  purchaser
of any such Note from such Holder,  in each case upon request,  the  information
specified  in, and  meeting  the  requirements  of,  Rule  144A(d)(4)  under the
Securities  Act  that  is  in  the  Securities   Administrator's  possession  or
reasonably obtainable by it, if requested,  from the Master Servicer (and to the
extent such information is in the Master Servicer's  possession or is reasonably
obtainable by it from the Servicers).

      Unless  the Issuer  otherwise  determines,  the fiscal  year of the Issuer
shall end on December 31 of each year.

      Section 7.04 Statements to  Noteholders.  (a) With respect to each Payment
Date,  the  Securities  Administrator  shall make  available via the  Securities
Administrator's   website,   initially  located  at  www.ctslink.com,   to  each
Noteholder and each  Certificateholder,  the Depositor,  the Issuer, the Seller,
the Owner  Trustee,  the  Certificate  Paying Agent and the Rating  Agencies,  a
statement setting forth the following information as to the Notes, to the extent
applicable:

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<PAGE>

          (i) the Available Funds, the Basis Risk Shortfall  Carryover Amount on
each Class of Class A Notes for such Payment Date and the aggregate Net Interest
Shortfall on each Class of Notes for such Payment Date;

          (ii) (a) the amount of such distribution to each Class of Notes (other
than the Class X Notes)  applied to reduce the Note Principal  Balance  thereof,
and  (b)  the  aggregate   amount  included   therein   representing   Principal
Prepayments;

          (iii) the  amount of such  distribution  to  Holders  of each Class of
Notes allocable to interest;

          (iv) the amount of any distribution to the Certificates;

          (v) if the  distribution  to the Holders of any Class of Notes is less
than the full amount that would be  distributable  to such Holders if there were
sufficient funds available therefor, the amount of the shortfall;

          (vi) the number and the aggregate  Scheduled  Principal Balance of the
Mortgage Loans as of the end of the related Due Period;

          (vii) the aggregate Note  Principal  Balance and Notional  Amount,  as
applicable,  of  each  Class  of  Notes,  after  giving  effect  to the  amounts
distributed on such Payment Date,  separately  identifying  any reduction of the
Note Principal  Balance due to Realized  Losses and the aggregate Note Principal
Balance of the Notes after  giving  effect to the  distribution  of principal on
such Payment Date;

          (viii)  the  number  and  aggregate  Scheduled  Principal  Balance  of
Mortgage Loans (a) as to which the Monthly Payment is delinquent for 31-60 days,
61-90 days, 91 or more days, respectively,  (b) in foreclosure and (c) that have
become REO Property, in each case as of the end of the preceding calendar month;

          (ix) the amount of any  Monthly  Advances  and  Compensating  Interest
payments;

          (x) the aggregate  Realized Losses with respect to the related Payment
Date and cumulative Realized Losses since the Closing Date;

          (xi) the number and aggregate  Scheduled Principal Balance of Mortgage
Loans  repurchased  pursuant to the Mortgage  Loan  Purchase  Agreement  for the
related Payment Date and cumulatively since the Closing Date;

          (xii) the book value (if available) of any REO Property;

          (xiii) the amount of any Prepayment  Interest Shortfalls or Relief Act
Shortfalls for such Payment Date; and

          (xiv) the  aggregate  Scheduled  Principal  Balance of Mortgage  Loans
purchased  pursuant to Section 2.04 of the Sale and Servicing  Agreement for the
related Payment Date and cumulatively since the Closing Date.

                                       52

<PAGE>

      Items  (iii)  and (iv)  above  shall be  presented  on the basis of a Note
having a $1,000 denomination.  In addition,  by January 31 of each calendar year
following  any year  during  which  the Notes are  outstanding,  the  Securities
Administrator  shall  furnish  a  report  to each  Noteholder  of  record  if so
requested in writing at any time during each  calendar  year as to the aggregate
of amounts  reported  pursuant  to (iii) and (iv) with  respect to the Notes for
such calendar year.

      The Securities  Administrator  may conclusively  rely upon the information
provided  by  the  Master  Servicer  to  the  Securities  Administrator  in  its
preparation of monthly statements to Noteholders.

      The Securities Administrator will make the monthly statements provided for
in this section (and, at its option,  any additional  files  containing the same
information in an alternative format) available each month to Noteholders,  each
Noteholder and each  Certificateholder,  the Depositor,  the Issuer, the Seller,
the Owner Trustee,  the  Certificate  Paying Agent and the Rating Agency via the
Securities Administrator's website. The Securities Administrator's website shall
initially be located at  "www.ctslink.com."  Assistance in using the website can
be obtained by calling the Securities  Administrator's  customer service desk at
(301) 815-6600.  Parties that are unable to use the website are entitled to have
a paper  copy  mailed to them via first  class mail by  calling  the  Securities
Administrator's  customer  service  desk and  indicating  such.  The  Securities
Administrator  may have the right to change the way the monthly  statements  are
distributed  in order to make such  distribution  more  convenient  and/or  more
accessible to the above parties and the Securities  Administrator  shall provide
timely  and  adequate  notification  to all  above  parties  regarding  any such
changes.

      The Securities Administrator shall be entitled to rely on but shall not be
responsible  for the content or accuracy  of any  information  provided by third
parties for purposes of preparing the monthly  statement,  and may affix thereto
any  disclaimer  it deems  appropriate  in its  reasonable  discretion  (without
suggesting liability on the part of any other party hereto).

                                       53
<PAGE>

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

      Section 8.01 Collection of Money.  Except as otherwise  expressly provided
herein,  the  Securities  Administrator  may demand  payment or delivery of, and
shall receive and collect,  directly and without  intervention  or assistance of
any fiscal agent or other intermediary,  all money and other property payable to
or receivable by the Securities  Administrator  pursuant to this Indenture.  The
Securities  Administrator  shall apply all such money received by it as provided
in this Indenture.  Except as otherwise expressly provided in this Indenture, if
any  default  occurs  in the  making of any  payment  or  performance  under any
agreement or instrument that is part of the Trust Estate,  the Indenture Trustee
may  take  such  action  as  may be  appropriate  to  enforce  such  payment  or
performance,   including  the   institution   and   prosecution  of  appropriate
Proceedings.  Any such action shall be without prejudice to any right to claim a
Default  or Event of  Default  under  this  Indenture  and any right to  proceed
thereafter as provided in Article V.

      Section 8.02 Officer's Certificate. The Indenture Trustee shall receive at
least  seven  Business  Days'  notice when  requested  by the Issuer to take any
action  pursuant  to  Section  8.06(a)  hereof,  accompanied  by  copies  of any
instruments to be executed,  and the Indenture Trustee shall also require,  as a
condition  to such  action,  an  Officer's  Certificate,  in form and  substance
satisfactory  to the  Indenture  Trustee,  stating the legal  effect of any such
action,  outlining the steps required to complete the same, and concluding  that
all conditions precedent to the taking of such action have been complied with.

      Section 8.03 Termination Upon Distribution to Noteholders.  This Indenture
and  the  respective   obligations  and  responsibilities  of  the  Issuer,  the
Securities   Administrator  and  the  Indenture  Trustee  created  hereby  shall
terminate upon the distribution to Noteholders,  the Certificate Paying Agent on
behalf of the Certificateholders, the Securities Administrator and the Indenture
Trustee of all amounts  required  to be  distributed  pursuant  to Article  III;
provided,  however,  that in no event shall the trust  created  hereby  continue
beyond  the  expiration  of 21 years  from  the  death  of the  survivor  of the
descendants  of Joseph P. Kennedy,  the late  ambassador of the United States to
the Court of St. James, living on the date hereof.

      Section  8.04 Release of Trust  Estate.  (a) Subject to the payment of its
fees  and  expenses,  the  Indenture  Trustee  may,  and  when  required  by the
provisions of this Indenture shall, execute instruments to release property from
the lien of this Indenture,  or convey the Indenture  Trustee's  interest in the
same, in a manner and under  circumstances  that are not  inconsistent  with the
provisions  of this  Indenture,  including for the purposes of any purchase of a
Mortgage Loan by the Majority Certificateholder pursuant to Section 8.06 of this
Indenture. No party relying upon an instrument executed by the Indenture Trustee
as provided in Article VIII hereunder  shall be bound to ascertain the Indenture
Trustee's authority,  inquire into the satisfaction of any conditions precedent,
or see to the application of any monies.

      (b) The Indenture Trustee shall, at such time as (i) it is notified by the
Securities  Administrator  that there are no Notes Outstanding and (ii) all sums
then due and unpaid to the Indenture  Trustee  pursuant to this  Indenture  have
been paid,  release any  remaining  portion of the Trust Estate that secured the
Notes from the lien of this Indenture.

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<PAGE>

      (c) The Indenture  Trustee  shall  release  property from the lien of this
Indenture  pursuant to this Section 8.05 only upon receipt of a request from the
Issuer.

      Section 8.05 Surrender of Notes Upon Final  Payment.  By acceptance of any
Note,  the  Holder  thereof  agrees to  surrender  such  Note to the  Securities
Administrator promptly,  prior to such Noteholder's receipt of the final payment
thereon.

      Section 8.06 Optional  Redemption of the Mortgage Loans.  (a) The Majority
Certificateholder  shall have the option to purchase the assets of the Trust and
thereby  cause the  redemption  of the Notes,  in whole,  but not in part, on or
after the Payment Date on which the aggregate Scheduled Principal Balance of the
Mortgage  Loans as of the end of the prior Due  Period is 10% or less of Cut-off
Date  Scheduled  Principal  Balance of the Mortgage as of the Closing Date.  The
aggregate  redemption price (the "Redemption Price") for the Notes will be equal
to 100% of the aggregate  outstanding Note Principal  Balance of the Notes as of
the Payment Date on which the proposed  redemption will take place in accordance
with the  foregoing,  together with accrued and unpaid  interest  thereon at the
applicable  Note Interest Rate through such Payment Date  (including any related
Net Interest  Shortfall  and Basis Risk  Shortfall  Carryover  Amount),  plus an
amount sufficient to pay in full all amounts owing to the Indenture Trustee, the
Master Servicer and the Securities Administrator, pursuant to any Basic Document
(which  amounts  shall be specified  in writing upon request of the Issuer,  the
Indenture  Trustee,  the Master  Servicer and the Securities  Administrator,  as
applicable).

      (b)  In  order  to   exercise   the   foregoing   option,   the   Majority
Certificateholder shall provide written notice of its exercise of such option to
the  Securities  Administrator,  the  Issuer,  the Owner  Trustee and the Master
Servicer  at  least 15 days  prior to its  exercise.  Following  receipt  of the
notice,  the  Securities  Administrator  shall  provide  written  notice  to the
Noteholders  of the final  payment  on the  Notes.  In  addition,  the  Majority
Certificateholder  shall,  not less than one  Business Day prior to the proposed
Payment  Date on which such  redemption  is to be made,  deposit the  Redemption
Price  specified  in (a)  above  with the  Securities  Administrator,  who shall
deposit the Redemption  Price into the Payment Account and shall, on the Payment
Date  after  receipt of the funds,  apply such funds to make final  payments  of
principal and interest on the Notes in  accordance  with Section 3.03 hereof and
payment to the Securities  Administrator and the Master Servicer as set forth in
(a) above,  and this Indenture shall be discharged  subject to the provisions of
Section  4.10  hereof.  If for any reason the amount  deposited  by the Majority
Certificateholder  is not sufficient to make such  redemption or such redemption
cannot be completed for any reason,  (a) the amount so deposited by the Majority
Certificateholder  with  the  Securities   Administrator  shall  be  immediately
returned to the Majority Certificateholder in full and shall not be used for any
other  purpose  or be  deemed to be part of the  Trust  Estate  and (b) the Note
Principal  Balance of the Notes shall  continue to bear  interest at the related
Note Interest Rate.

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<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

      Section 9.01 Supplemental  Indentures Without Consent of Noteholders.  (a)
Without  the  consent of the  Holders of any Notes but with prior  notice to the
Rating  Agencies,   the  Issuer,   the  Indenture  Trustee  and  the  Securities
Administrator,  when authorized by an Issuer Request,  at any time and from time
to time,  may enter into one or more  indentures  supplemental  hereto,  in form
satisfactory to the Indenture Trustee and the Securities Administrator,  for any
of the following purposes:

          (i) to correct or amplify the  description of any property at any time
subject to the lien of this Indenture,  or better to assure,  convey and confirm
unto the Indenture  Trustee any property  subject or required to be subjected to
the  lien  of this  Indenture,  or to  subject  to the  lien  of this  Indenture
additional property;

          (ii) to evidence the  succession,  in compliance  with the  applicable
provisions  hereof,  of another person to the Issuer,  and the assumption by any
such successor of the covenants of the Issuer herein and in the Notes contained;

          (iii) to add to the  covenants  of the Issuer,  for the benefit of the
Holders of the Notes,  or to surrender any right or power herein  conferred upon
the Issuer;

          (iv) to convey,  transfer,  assign, mortgage or pledge any property to
or with the Indenture Trustee;

          (v) to cure any  ambiguity,  to correct or  supplement  any  provision
herein or in any supplemental  indenture that may be inconsistent with any other
provision herein or in any supplemental indenture;

          (vi) to make any other provisions with respect to matters or questions
arising under this Indenture or in any supplemental  indenture;  provided,  that
such action  shall not  materially  and  adversely  affect the  interests of the
Holders of the Notes; provided further, that such supplemental indenture will be
deemed to not  materially  and adversely  affect the interests of the Holders of
the Notes if a Rating Confirmation is received with respect to such supplemental
indenture; or

          (vii) to evidence and provide for the  acceptance  of the  appointment
hereunder  by a  successor  trustee  with  respect to the Notes and to add to or
change  any of the  provisions  of this  Indenture  as  shall  be  necessary  to
facilitate the  administration of the trusts hereunder by more than one trustee,
pursuant to the requirements of Article VI hereof;

provided,  however,  that no such  indenture  supplements  shall be entered into
unless  the  Indenture  Trustee  and the  Securities  Administrator  shall  have
received an Opinion of Counsel not at the  expense of the  Indenture  Trustee or
the  Securities  Administrator  as to the  enforceability  of any such indenture
supplement  and to the effect that (i) such  indenture  supplement  is permitted
hereunder and will not materially and adversely affect the Holders of the Notes,
(ii) entering into such indenture  supplement  will not result in a "substantial
modification"  of the  Notes  under

                                       56

<PAGE>

Treasury Regulation Section 1.1001-3 or adversely affect the indebtedness status
of any Classes of Notes with respect to which a "will be debt"  opinion has been
rendered by nationally  recognized  tax counsel and furnished to the  Securities
Administrator  and (iii)  such  indenture  supplement  does not  materially  and
adversely affect the transfer  restrictions with respect to the Senior Notes set
forth in Section 4.02.

      The  Indenture  Trustee  and  the  Securities   Administrator  are  hereby
authorized  to join in the execution of any such  supplemental  indenture and to
make any further  appropriate  agreements and  stipulations  that may be therein
contained.

      (b) The Issuer,  the Securities  Administrator and the Indenture  Trustee,
when  authorized  by  an  Issuer   Request,   in  the  case  of  the  Securities
Administrator  and the Indenture Trustee may, also without the consent of any of
the Holders of the Notes and prior  notice to the Rating  Agency,  enter into an
indenture  or  indentures  supplemental  hereto  for the  purpose  of adding any
provisions  to, or changing in any manner or  eliminating  any of the provisions
of, this  Indenture  or of  modifying in any manner the rights of the Holders of
the Notes under this Indenture; provided, however, that such action as evidenced
by an Opinion of Counsel,  (i) is  permitted by this  Indenture,  (ii) shall not
adversely affect in any material respect the interests of any Noteholder,  (iii)
if  100% of the  Certificates  and  Privately  Offered  Notes  (other  than  any
Privately  Offered Notes with respect to which a "will be debt" opinion has been
rendered by nationally  recognized  tax counsel and furnished to the  Securities
Administrator)  are not owned by the Investor,  shall not cause the Issuer to be
subject to an entity  level tax for  federal  income tax  purpose  and (iv) such
action does not materially and adversely affect the transfer  restrictions  with
respect to the Senior Notes set forth in Section 4.02.

      Section 9.02  Supplemental  Indentures  With Consent of  Noteholders.  The
Issuer, the Securities  Administrator and the Indenture Trustee, when authorized
by an  Issuer  Request  in the  case  of the  Securities  Administrator  and the
Indenture Trustee,  also may, with prior notice to the Rating Agencies and, with
the consent Holders of not less than a majority of the Note Principal Balance of
each Class of Notes  affected  thereby,  by Act (as  defined  in  Section  10.03
hereof) of such Holders  delivered to the Issuer,  the Securities  Administrator
and the Indenture  Trustee,  enter into an indenture or indentures  supplemental
hereto for the purpose of adding any provisions to, or changing in any manner or
eliminating  any of the  provisions  of, this  Indenture  or of modifying in any
manner the rights of the  Holders of the Notes under this  Indenture;  provided,
however,  that no such supplemental  indenture shall, without the consent of the
Holder of each Note affected thereby:

          (i) change the date of payment of any  installment  of principal of or
interest on any Note,  or reduce the  principal  amount  thereof or the interest
rate  thereon,   change  the  provisions  of  this  Indenture  relating  to  the
application of collections  on, or the proceeds of the sale of, the Trust Estate
and to payment of principal of or interest on the Notes,  or change any place of
payment  where,  or the coin or  currency  in  which,  any Note or the  interest
thereon is payable, or impair the right to institute suit for the enforcement of
the provisions of this Indenture  requiring the  application of funds  available
therefor, as provided in Article V, to the payment of any such amount due on the
Notes on or after the respective due dates thereof;

          (ii)  reduce the  percentage  of the Note  Principal  Balances  of the
Notes,  or any Class of Notes,  the  consent of the Holders of which is required
for any such supplemental

                                       57

<PAGE>

indenture,  or the consent of the Holders of which is required for any waiver of
compliance  with  certain  provisions  of this  Indenture  or  certain  defaults
hereunder and their consequences provided for in this Indenture;

          (iii) modify or alter the  provisions of the proviso to the definition
of the term  "Outstanding" or modify or alter the exception in the definition of
the term "Holder";

          (iv)  reduce the  percentage  of the Note  Principal  Balances  of the
Notes, or any Class of Notes, required to direct the Indenture Trustee to direct
the Issuer to sell or  liquidate  the Trust  Estate  pursuant  to  Section  5.04
hereof;

          (v) modify any  provision  of this Section 9.02 except to increase any
percentage specified herein or to provide that certain additional  provisions of
this Indenture or the Basic  Documents  cannot be modified or waived without the
consent of the Holder of each Note affected thereby;

          (vi) modify any of the  provisions of this Indenture in such manner as
to affect the  calculation of the amount of any payment of interest or principal
due on any Note on any Payment Date  (including  the  calculation  of any of the
individual components of such calculation); or

          (vii) permit the creation of any lien ranking  prior to or on a parity
with the lien of this Indenture with respect to any part of the Trust Estate or,
except as otherwise permitted or contemplated herein, terminate the lien of this
Indenture on any  property at any time  subject  hereto or deprive the Holder of
any Note of the security provided by the lien of this Indenture;

and  provided,  further,  that (i) such  action  shall not, as  evidenced  by an
Opinion of Counsel,  cause the Issuer,  if 100% of the Senior  Notes,  Privately
Offered Notes and Certificates (other than any Senior Notes or Privately Offered
Notes  with  respect  to which a "will be debt"  opinion  has been  rendered  by
nationally recognized tax counsel and furnished to the Securities Administrator)
are not owned by the Investor,  to be subject to an entity level tax for federal
income tax  purposes  and (ii) such action  does not  materially  and  adversely
affect the transfer  restrictions  with respect to the Senior Notes set forth in
Section 4.02.

     Any such action  shall not  adversely  affect in any  material  respect the
interest  of  any  Holder  (other  than a  Holder  who  shall  consent  to  such
supplemental  indenture) as evidenced by an Opinion of Counsel  (provided by the
Person  requesting  such  supplemental  indenture)  delivered  to the  Indenture
Trustee and the Securities Administrator.

     It shall not be  necessary  for any Act of  Noteholders  under this Section
9.02 to approve the particular form of any proposed supplemental indenture,  but
it shall be sufficient if such Act shall approve the substance thereof.

     Promptly after the execution by the Issuer,  the  Securities  Administrator
and the Indenture Trustee of any supplemental indenture pursuant to this Section
9.02,  the  Securities  Administrator  shall mail to the Holders of the Notes to
which such amendment or supplemental indenture relates a notice setting forth in
general terms the substance of such supplemental  indenture.  Any

                                       58

<PAGE>

failure  of the  Securities  Administrator  to mail such  notice,  or any defect
therein,  shall not,  however,  in any way impair or affect the  validity of any
such supplemental indenture.

     Section  9.03  Execution  of  Supplemental  Indentures.  In  executing,  or
permitting  the  additional  trusts  created  by,  any  supplemental   indenture
permitted by this Article IX or the  modification  thereby of the trusts created
by this Indenture,  the Indenture Trustee and the Securities Administrator shall
be entitled to receive,  and subject to Sections 6.01 and 6.02 hereof,  shall be
fully protected in relying upon, an Opinion of Counsel not at the expense of the
Indenture Trustee or the Securities  Administrator stating that the execution of
such  supplemental  indenture is authorized or permitted by this Indenture.  The
Indenture  Trustee and the Securities  Administrator  each may, but shall not be
obligated  to,  enter into any such  supplemental  indenture  that  affects  the
Indenture  Trustee's  or the  Securities  Administrator's  own  rights,  duties,
liabilities or immunities under this Indenture or otherwise.

     Section 9.04 Effect of  Supplemental  Indenture.  Upon the execution of any
supplemental  indenture pursuant to the provisions hereof,  this Indenture shall
be and shall be deemed to be modified and amended in accordance  therewith  with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations,  duties, liabilities and immunities under this Indenture of
the Indenture Trustee, the Securities Administrator,  the Issuer and the Holders
of the Notes shall  thereafter be determined,  exercised and enforced  hereunder
subject in all respects to such modifications and amendments,  and all the terms
and conditions of any such  supplemental  indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

     Section 9.05  Conformity  with Trust Indenture Act. Every amendment of this
Indenture and every supplemental  indenture executed pursuant to this Article IX
shall conform to the  requirements  of the Trust Indenture Act as then in effect
so long as this Indenture shall then be qualified under the Trust Indenture Act.

     Section  9.06  Reference  in  Notes  to  Supplemental   Indentures.   Notes
authenticated  and delivered after the execution of any  supplemental  indenture
pursuant to this Article IX may, and if required by the Securities Administrator
shall,  bear a notation in form approved by the Securities  Administrator  as to
any matter  provided for in such  supplemental  indenture.  If the Issuer or the
Securities  Administrator  shall  so  determine,  new  Notes so  modified  as to
conform,  in the opinion of the Securities  Administrator and the Issuer, to any
such  supplemental  indenture  may be  prepared  and  executed by the Issuer and
authenticated  and  delivered by the  Securities  Administrator  in exchange for
Outstanding Notes.

                                       59

<PAGE>

                                    ARTICLE X

                                  MISCELLANEOUS

      Section 10.01  Compliance  Certificates  and  Opinions,  etc. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee (i) an Officer's Certificate stating that all conditions  precedent,  if
any,  provided for in this Indenture  relating to the proposed  action have been
complied with and (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions  precedent,  if any, have been complied with, except
that, in the case of any such  application or request as to which the furnishing
of such documents is  specifically  required by any provision of this Indenture,
no additional certificate or opinion need be furnished.

      Every  certificate or opinion with respect to compliance  with a condition
or covenant provided for in this Indenture shall include:

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

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

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

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

            (5)   if the signatory of such certificate or opinion is required to
      be  Independent,  the  statement  required by the  definition  of the term
      "Independent".

      (b)   (i) Prior to the  deposit of any  Collateral  or other  property  or
securities  with the  Indenture  Trustee  that is to be made the  basis  for the
release of any property or securities subject to the lien of this Indenture, the
Issuer  shall,  in addition to any  obligation  imposed in Section  10.01 (a) or
elsewhere  in this  Indenture,  furnish to the  Indenture  Trustee an  Officer's
Certificate  certifying  or stating  the  opinion of each  person  signing  such
certificate  as to the fair value  (within 90 days prior to such deposit) to the
Issuer of the  Collateral or other property or securities to be so deposited and
a report from a nationally recognized accounting firm verifying such value.

            (ii)  Whenever  the Issuer is required  to furnish to the  Indenture
Trustee an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters  described in clause (i) above,  the Issuer shall also
deliver to the Indenture  Trustee an

                                       60

<PAGE>

Independent  Certificate from a nationally  recognized accounting firm as to the
same matters,  if the fair value of the securities to be so deposited and of all
other such securities made the basis of any such withdrawal or release since the
commencement of the then current fiscal year of the Issuer,  as set forth in the
certificates delivered pursuant to clause (i) above and this clause (ii), is 10%
or more of the Note Principal Balances of the Notes, but such a certificate need
not be furnished with respect to any securities so deposited,  if the fair value
thereof as set forth in the related  Officer's  Certificate is less than $25,000
or less than one percent of the then outstanding Note Principal  Balances of the
Notes.

            (iii)  Whenever any property or  securities  are to be released from
the lien of this  Indenture,  the  Issuer  shall also  furnish to the  Indenture
Trustee an  Officer's  Certificate  certifying  or stating  the  opinion of each
person  signing such  certificate  as to the fair value (within 90 days prior to
such release) of the property or securities  proposed to be released and stating
that in the  opinion of such  person the  proposed  release  will not impair the
security under this Indenture in contravention of the provisions hereof.

            (iv)  Whenever  the Issuer is required  to furnish to the  Indenture
Trustee an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (iii) above, the Issuer shall also
furnish to the  Indenture  Trustee  an  Independent  Certificate  as to the same
matters  if the fair  value  of the  property  or  securities  and of all  other
property  or  securities  released  from the lien of this  Indenture  since  the
commencement of the then-current calendar year, as set forth in the certificates
required by clause (iii) above and this clause  (iv),  equals 10% or more of the
Note Principal Balances of the Notes, but such certificate need not be furnished
in the case of any release of property or  securities  if the fair value thereof
as set forth in the related  Officer's  Certificate is less than $25,000 or less
than one percent of the then outstanding Note Principal Balances of the Notes.

      Section  10.02 Form of Documents  Delivered to Indenture  Trustee.  In any
case where  several  matters are required to be  certified  by, or covered by an
opinion of, any specified  Person,  it is not necessary that all such matters be
certified  by, or covered by the opinion of, only one such Person,  or that they
be so certified or covered by only one document, but one such Person may certify
or give an  opinion  with  respect  to some  matters  and one or more other such
Persons as to other matters,  and any such Person may certify or give an opinion
as to such matters in one or several documents.

      Any  certificate or opinion of an Authorized  Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or  representations
with respect to the matters upon which his  certificate  or opinion is based are
erroneous.  Any such certificate of an Authorized  Officer or Opinion of Counsel
may be based,  insofar as it relates to factual  matters,  upon a certificate or
opinion of, or  representations  by, an officer or officers of the Seller or the
Issuer,  stating that the information with respect to such factual matters is in
the possession of the Seller or the Issuer, unless such counsel knows, or in the
exercise of  reasonable  care should know,  that the  certificate  or opinion or
representations with respect to such matters are erroneous.

                                       61

<PAGE>

      Where  any  Person  is  required  to  make,  give or  execute  two or more
applications,  requests, consents,  certificates,  statements, opinions or other
instruments  under this Indenture,  they may, but need not, be consolidated  and
form one instrument.

      Whenever  in  this  Indenture,  in  connection  with  any  application  or
certificate or report to the Indenture  Trustee,  it is provided that the Issuer
shall  deliver any document as a condition of the granting of such  application,
or as evidence of the Issuer's  compliance with any term hereof,  it is intended
that the truth and accuracy,  at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and  opinions  stated in such  document  shall in such case be  conditions
precedent to the right of the Issuer to have such application  granted or to the
sufficiency of such certificate or report. The foregoing shall not, however,  be
construed  to affect the  Indenture  Trustee's  right to rely upon the truth and
accuracy of any statement or opinion  contained in any such document as provided
in Article VI.

      Section 10.03 Acts of Noteholders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Noteholders may be embodied in and evidenced by one or more
instruments of substantially  similar tenor signed by such Noteholders in person
or by agents duly appointed in writing; and except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are  delivered  to the  Indenture  Trustee,  and,  where it is hereby  expressly
required, to the Issuer. Such instrument or instruments (and the action embodied
therein and evidenced  thereby) are herein sometimes referred to as the "Act" of
the Noteholders  signing such  instrument or instruments.  Proof of execution of
any  such  instrument  or of a  writing  appointing  any  such  agent  shall  be
sufficient  for any  purpose of this  Indenture  and  (subject  to Section  6.01
hereof)  conclusive in favor of the Indenture Trustee and the Issuer, if made in
the manner provided in this Section 10.03 hereof.

      (b)   The  fact  and  date of the  execution  by any  person  of any  such
instrument  or writing  may be proved in any manner that the  Indenture  Trustee
deems sufficient.

      (c)   The ownership of Notes shall be proved by the Note Registrar.

      (d)   Any request,  demand,  authorization,  direction,  notice,  consent,
waiver or other action by the Holder of any Notes shall bind the Holder of every
Note issued  upon the  registration  thereof or in exchange  therefor or in lieu
thereof,  in respect of  anything  done,  omitted or  suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon,  whether or not notation of
such action is made upon such Note.

      Section  10.04  Notices  etc.,  to Indenture  Trustee  Issuer,  Securities
Administrator  and  Rating  Agencies.   Any  request,   demand,   authorization,
direction,  notice,  consent,  waiver or Act of Noteholders  or other  documents
provided or permitted by this Indenture shall be in writing and if such request,
demand, authorization,  direction, notice, consent, waiver or act of Noteholders
is to be made upon, given or furnished to or filed with:

            (i) the Indenture  Trustee by any  Noteholder or by the Issuer shall
be sufficient for every purpose hereunder if made, given,  furnished or filed in
writing to or with the  Indenture  Trustee at the Corporate  Trust  Office.  The
Indenture  Trustee shall  promptly  transmit any notice  received by it from the
Noteholders to the Issuer;

                                       62

<PAGE>

            (ii)  the  Securities  Administrator  by  any  Noteholder  or by the
Issuer shall be sufficient for every purpose hereunder if made, given, furnished
or filed in writing to or with the Securities Administrator at Wells Fargo Bank,
N.A.,  P.O.  Box 98,  Columbia  Maryland  21046  (or,  in the case of  overnight
deliveries,  9062 Old Annapolis Road,  Columbia,  Maryland 21045), Attn: Merrill
Lynch Mortgage Investors Trust, Series MLCC 2005-2, or such other address as may
hereafter be furnished to the other parties  hereto in writing.  The  Securities
Administrator  shall  promptly  transmit  any  notice  received  by it from  the
Noteholders to the Issuer; or

            (iii) the Issuer by the Indenture Trustee or by any Noteholder shall
be sufficient for every purpose hereunder if made, given,  furnished or filed in
writing and mailed  first-class,  postage  prepaid to the Issuer  addressed  to:
Merrill Lynch Mortgage  Investors  Trust,  Series 2005-2,  in care of Wilmington
Trust  Company,  Rodney  Square  North,  1100 North Market  Street,  Wilmington,
Delaware 19890-0001,  Attention: Corporate Trust Administration, or at any other
address previously  furnished in writing to the Indenture Trustee by the Issuer.
The  Issuer  shall  promptly  transmit  any  notice  received  by  it  from  the
Noteholders to the Indenture Trustee.

      Notices  required to be given to the Rating  Agencies  by the Issuer,  the
Indenture Trustee, the Securities Administrator or the Owner Trustee shall be in
writing,  mailed  first-class  postage  pre-paid:  in the  case of  Moody's,  to
Moody's,  at the following address:  Moody's Investors Service,  Inc., 99 Church
Street,  New York, New York 10007; and in the case of S&P,  Standard & Poor's, a
division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York
10041;  or as to each of the  foregoing,  at such  other  address  as  shall  be
designated by written notice to the other parties.

      Section  10.05  Notices  to  Noteholders;  Waiver.  Where  this  Indenture
provides  for  notice  to  Noteholders  of  any  event,  such  notice  shall  be
sufficiently given (unless otherwise herein expressly  provided) if made, given,
furnished or filed in writing and mailed,  first-class,  postage prepaid to each
Noteholder affected by such event, at such Person's address as it appears on the
Note Register, not later than the latest date, and not earlier than the earliest
date,  prescribed  for the giving of such  notice.  In any case where  notice to
Noteholders  is given by mail,  neither  the failure to mail such notice nor any
defect in any notice so mailed to any  particular  Noteholder  shall  affect the
sufficiency  of such notice with  respect to other  Noteholders,  and any notice
that is mailed in the manner herein  provided shall  conclusively be presumed to
have been duly given  regardless  of  whether  such  notice is in fact  actually
received.

      Where this Indenture provides for notice in any manner, such notice may be
waived in writing by any Person  entitled to receive such notice,  either before
or after the event,  and such waiver  shall be the  equivalent  of such  notice.
Waivers of notice by Noteholders  shall be filed with the Indenture  Trustee but
such filing  shall not be a condition  precedent  to the  validity of any action
taken in reliance upon such a waiver.

      In case,  by reason of the  suspension of regular mail service as a result
of a strike, work stoppage or similar activity,  it shall be impractical to mail
notice of any event to  Noteholders  when such  notice is  required  to be given
pursuant  to any  provision  of this  Indenture,  then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a
sufficient giving of such notice.

                                       63

<PAGE>

      Where this Indenture provides for notice to the Rating Agency,  failure to
give such  notice  shall not  affect  any other  rights or  obligations  created
hereunder, and shall not under any circumstance constitute an Event of Default.

      Section 10.06 Conflict with Trust  Indenture Act. If any provision  hereof
limits, qualifies or conflicts with another provision hereof that is required to
be included in this  Indenture by any of the  provisions of the Trust  Indenture
Act, such required provision shall control.

      The provisions  of TIA Sections 310 through 317 that impose  duties on any
Person  (including the provisions  automatically  deemed  included herein unless
expressly  excluded by this  Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

      Section 10.07 Effect of Headings.  The Article and Section headings herein
are for convenience only and shall not affect the construction hereof.

      Section 10.08 Successors and Assigns. All covenants and agreements in this
Indenture  and the Notes by the Issuer  shall bind its  successors  and assigns,
whether so expressed or not. All  agreements  of the  Indenture  Trustee in this
Indenture shall bind its successors, co-trustees and agents.

      Section 10.09 Separability.  In case any provision in this Indenture or in
the Notes shall be invalid,  illegal or unenforceable,  the validity,  legality,
and enforceability of the remaining  provisions shall not in any way be affected
or impaired thereby.

      Section  10.10  Legal  Holidays.  In any case  where the date on which any
payment  is due shall not be a Business  Day,  then  (notwithstanding  any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next  succeeding  Business  Day with the same  force  and
effect as if made on the date on which  nominally  due,  and no  interest  shall
accrue for the period from and after any such nominal date.

      Section  10.11  GOVERNING  LAW.  THIS  INDENTURE  SHALL  BE  CONSTRUED  IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW  YORK,  WITHOUT  REFERENCE  TO ITS
CONFLICT OF LAW  PROVISIONS  (OTHER THAN  SECTIONS  5-1401 AND 5-1402 OF THE NEW
YORK GENERAL  OBLIGATIONS LAWS, WHICH SHALL APPLY HERETO),  AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES  HEREUNDER  SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

      Section 10.12  Counterparts.  This Indenture may be executed in any number
of  counterparts,  each of  which  when so  executed  shall be  deemed  to be an
original,  but all such counterparts  shall together  constitute but one and the
same instrument.

      Section  10.13  Recording of  Indenture.  If this  Indenture is subject to
recording in any appropriate public recording  offices,  such recording is to be
effected by the Issuer and at its expense  accompanied  by an Opinion of Counsel
at its  expense  (which  may be counsel  to the  Indenture  Trustee or any other
counsel reasonably  acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Noteholders or any other

                                       64

<PAGE>

Person secured  hereunder or for the  enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture.

      Section  10.14 Issuer  Obligation.  No recourse may be taken,  directly or
indirectly,  with respect to the obligations of the Issuer, the Owner Trustee or
the  Securities  Administrator  on the  Notes or  under  this  Indenture  or any
certificate  or other  writing  delivered in  connection  herewith or therewith,
against  (i) the  Indenture  Trustee  or the  Owner  Trustee  in its  individual
capacity,  (ii) any owner of a  beneficial  interest  in the Issuer or (iii) any
partner, owner, beneficiary,  agent, officer, director, employee or agent of the
Securities  Administrator,  the Owner Trustee in its  individual  capacity,  any
holder of a beneficial interest in the Issuer, the Securities Administrator, the
Owner  Trustee or the  Indenture  Trustee or of any  successor  or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as any
such Person may have expressly  agreed (it being  understood  that the Indenture
Trustee  and the Owner  Trustee  have no such  obligations  in their  individual
capacity) and except that any such partner,  owner or beneficiary shall be fully
liable,  to the extent provided by applicable law, for any unpaid  consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity. For all purposes of this Indenture,  in the performance of
any duties or  obligations of the Issuer  hereunder,  the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of Article
VI, VII and VIII of the Trust Agreement.

      Section  10.15 No  Petition.  The  Indenture  Trustee  and the  Securities
Administrator,  by entering into this Indenture, each Noteholder, by accepting a
Note and each Certificateholder, by accepting a Certificate, hereby covenant and
agree  that  they  will  not at any  time  prior  to one  year  from the date of
termination  hereof,  institute  against the Depositor or the Issuer, or join in
any  institution  against  the  Depositor  or the  Issuer  of,  any  bankruptcy,
reorganization,  arrangement,  insolvency or liquidation  proceedings,  or other
proceedings  under any United States federal or state  bankruptcy or similar law
in connection with any obligations  relating to the Notes, this Indenture or any
of the Basic Documents; provided however, that nothing herein shall prohibit the
Indenture Trustee from filing proofs of claim in any proceeding.

      Section  10.16  Inspection.  The Issuer  agrees that,  at its expense,  on
reasonable  prior notice,  it shall permit any  representative  of the Indenture
Trustee or the Securities  Administrator,  during the Issuer's  normal  business
hours, to examine all the books of account, records, reports and other papers of
the Issuer,  to make copies and  extracts  therefrom,  to cause such books to be
audited by Independent certified public accountants, and to discuss the Issuer's
affairs,  finances  and  accounts  with the Issuer's  officers,  employees,  and
Independent  certified public  accountants,  all at such reasonable times and as
often as may be  reasonably  requested.  The  Indenture  Trustee shall cause its
representatives  to hold in confidence all such information except to the extent
disclosure  may  be  required  by  law  (and  all  reasonable  applications  for
confidential  treatment  are  unavailing)  and  except  to the  extent  that the
Indenture Trustee or the Securities  Administrator may reasonably determine that
such disclosure is consistent with its obligations hereunder.

                                       65

<PAGE>

      IN WITNESS  WHEREOF,  the Issuer,  the  Securities  Administrator  and the
Indenture  Trustee  have  caused  their  names  to be  signed  hereto  by  their
respective officers thereunto duly authorized,  all as of the day and year first
above written.

                                 MERRILL LYNCH MORTGAGE INVESTORS TRUST, SERIES
                                 2005-2, as Issuer
                                 BY:  Wilmington  Trust Company,
                                 not in its individual  capacity but
                                 solely as Owner
                                 Trustee

                                 By:    /S/ Anita E. Dallago
                                        ----------------------------------------
                                        Name:  Anita E. Dallago
                                        Title: Senior Financial Services Officer

                                 WELLS FARGO BANK, N.A., as Securities
                                 Administrator

                                 By:    /S/ Peter J. Masterman
                                        ----------------------------------------
                                        Name:  Peter J. Masterman
                                        Title: Vice President

                                 HSBC Bank USA, National Association, as
                                 Indenture Trustee

                                 By:    /S/ Susie Moy
                                        ----------------------------------------
                                        Name:  Susie Moy
                                        Title: Vice President

<PAGE>

STATE OF MARYLAND    )
                     )   ss.:
COUNTY OF BALTIMORE  )

      On the 31st day of August 2005 before me, a notary  public in and for said
State,  personally appeared Peter Masterman,  known to me to be a Vice President
of Wells Fargo Bank, N.A., the entity that executed the within  instrument,  and
also known to me to be the person who executed it on behalf of said entity,  and
acknowledged to me that such entity executed the within instrument.

      IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                               /S/ Graham M. Oglesby
                                               ---------------------------------
                                               Notary Public

[Notarial Seal]

<PAGE>

STATE OF DELAWARE    )
                     )   ss.:
COUNTY OF NEWCASTLE  )

      On this 31st day of August,  2005,  before me  personally  appeared  Anita
Dallago to me known, who being by me duly sworn, did depose and say, that he/she
is a(n)  Senior  Financial  Services  Officer of the Owner  Trustee,  one of the
entities  described  in and which  executed  the above  instrument;  and that he
signed her name thereto by like order.

                                               Notary Public

                                               /S/ Joann A. Rozell
                                               ---------------------------------
                                               NOTARY PUBLIC

[NOTARIAL SEAL]

<PAGE>

STATE OF NEW YORK    )
                     )   ss.:
COUNTY OF NEW YORK   )

      On this 31st day of August,  2005, before me personally appeared Susie Moy
to me known,  who being by me duly sworn, did depose and say, that she is a Vice
President of the Indenture  Trustee,  one of the  corporations  described in and
which executed the above instrument; and that he signed his name thereto by like
order.

                                               Notary Public

                                               /S/ Ecliff Jackman
                                               ---------------------------------
                                               NOTARY PUBLIC

[NOTARIAL SEAL]

<PAGE>

                                   EXHIBIT A-1

                              FORM OF CLASS A NOTES

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"), TO THE SECURITIES  ADMINISTRATOR
OR ITS AGENT FOR REGISTRATION OF TRANSFER,  EXCHANGE,  OR PAYMENT,  AND ANY NOTE
ISSUED  IS  REGISTERED  IN THE NAME OF CEDE & CO.  OR IN SUCH  OTHER  NAME AS IS
REQUESTED  BY AN  AUTHORIZED  REPRESENTATIVE  OF DTC (AND ANY PAYMENT IS MADE TO
CEDE  &  CO.  OR  TO  SUCH  OTHER  ENTITY  AS  IS  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE  OF DTC),  ANY TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE  BY OR TO ANY PERSON IS  WRONGFUL  INASMUCH  AS THE  REGISTERED  OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE HOLDER OF THIS NOTE OR BENEFICIAL  OWNER OF ANY INTEREST HEREIN IS DEEMED TO
REPRESENT  THAT EITHER (1) IT IS NOT  ACQUIRING THE NOTE WITH PLAN ASSETS OR (2)
(A) THE  ACQUISITION,  HOLDING  AND  TRANSFER  OF A NOTE WILL NOT GIVE RISE TO A
NONEXEMPT  PROHIBITED  TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE AND (B) THE NOTES ARE RATED  INVESTMENT GRADE OR BETTER AND SUCH PERSON
BELIEVES THAT THE NOTES ARE PROPERLY TREATED AS INDEBTEDNESS WITHOUT SUBSTANTIAL
EQUITY FEATURES FOR PURPOSES OF THE DOL REGULATIONS,  AND AGREES TO SO TREAT THE
NOTES.  ALTERNATIVELY,  REGARDLESS  OF THE RATING OF THE NOTES,  SUCH PERSON MAY
PROVIDE THE INDENTURE TRUSTEE AND THE NOTE REGISTRAR WITH AN OPINION OF COUNSEL,
WHICH  OPINION OF COUNSEL WILL NOT BE AT THE EXPENSE OF THE ISSUER,  THE SELLER,
THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE SECURITIES ADMINISTRATOR, THE NOTE
REGISTRAR,   THE  MASTER  SERVICER  OR  ANY  SERVICER,  WHICH  OPINES  THAT  THE
ACQUISITION,   HOLDING  AND  TRANSFER  OF  SUCH  NOTE  OR  INTEREST  THEREIN  IS
PERMISSIBLE  UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT
PROHIBITED  TRANSACTION  UNDER  ERISA OR  SECTION  4975 OF THE CODE AND WILL NOT
SUBJECT THE ISSUER, THE SELLER, THE DEPOSITOR,  THE OWNER TRUSTEE, THE INDENTURE
TRUSTEE, THE SECURITIES  ADMINISTRATOR,  THE NOTE REGISTRAR, THE MASTER SERVICER
OR ANY  SERVICER  TO ANY  OBLIGATION  IN  ADDITION  TO THOSE  UNDERTAKEN  IN THE
INDENTURE.

THE  HOLDER OF THIS NOTE OR  BENEFICIAL  OWNER OF ANY  INTEREST  HEREIN  WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN THE INDENTURE.

NO TRANSFER OF THIS NOTE SHALL BE MADE, UNLESS (A) (I) IN THE CASE OF AN INITIAL
TRANSFER  (AS  DEFINED  IN  THE  INDENTURE)  OF  THIS  NOTE,  (X) A  CERTIFICATE
SUBSTANTIALLY  IN THE  FORM OF  EXHIBIT  I TO THE  INDENTURE  (A  "TAX  TRANSFER
CERTIFICATE") HAS BEEN FURNISHED TO

                                      A-1-1

<PAGE>

THE  SECURITIES  ADMINISTRATOR  OR (Y) A "WILL BE DEBT"  OPINION SHALL HAVE BEEN
RENDERED BY A NATIONALLY RECOGNIZED TAX COUNSEL WITH RESPECT TO IT AND FURNISHED
TO THE  SECURITIES  ADMINISTRATOR,  OR (II) AN INITIAL  TRANSFER  OF A PRIVATELY
OFFERED NOTE WITH RESPECT TO WHICH A "WILL BE DEBT" OPINION HAS BEEN RENDERED BY
NATIONALLY RECOGNIZED TAX COUNSEL AND FURNISHED TO THE SECURITIES  ADMINISTRATOR
OR (B) IN THE CASE OF A  SUBSEQUENT  TRANSFER (AS DEFINED IN THE  INDENTURE)  OF
THIS NOTE,  THE TRANSFEREE  SHALL HAVE DELIVERED TO THE OWNER TRUSTEE,  THE NOTE
REGISTRAR,  THE SECURITIES ADMINISTRATOR AND THE INDENTURE TRUSTEE A CERTIFICATE
CERTIFYING  THAT (1) IT IS A REAL ESTATE  INVESTMENT  TRUST ("REIT")  WITHIN THE
MEANING OF SECTION  856(A) OF THE CODE OR A QUALIFIED  REIT  SUBSIDIARY  ("QRS")
WITHIN THE MEANING OF SECTION 856(I) OF THE CODE OR AN ENTITY  DISREGARDED AS AN
ENTITY SEPARATE FROM A REIT OR A QRS AND (2) FOLLOWING THE TRANSFER, 100% OF THE
SUBORDINATE  NOTES AND  CERTIFICATES  (OTHER  THAN ANY  SUBORDINATE  NOTES  WITH
RESPECT  TO WHICH A "WILL BE DEBT"  OPINION  HAS  BEEN  RENDERED  BY  NATIONALLY
RECOGNIZED  TAX COUNSEL AND FURNISHED TO THE SECURITIES  ADMINISTRATOR)  WILL BE
OWNED BY A REIT, DIRECTLY OR INDIRECTLY THROUGH ONE OR MORE QRSs OF SUCH REIT OR
ONE OR MORE  ENTITIES  DISREGARDED  AS ENTITIES  SEPARATE FROM SUCH REIT OR SUCH
QRSs; PROVIDED THAT, NOTWITHSTANDING THE FOREGOING, (X) THIS NOTE MAY BE PLEDGED
TO SECURE  INDEBTEDNESS AND MAY BE THE SUBJECT OF REPURCHASE  AGREEMENTS TREATED
AS SECURED  INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES,  AND (Y) THIS NOTE MAY
BE  TRANSFERRED  BY A RELATED  LENDER UNDER ANY SUCH  RELATED LOAN  AGREEMENT OR
REPURCHASE  AGREEMENT UPON A DEFAULT UNDER ANY SUCH INDEBTEDNESS,  IN WHICH CASE
THE   TRANSFEROR   SHALL  DELIVER  TO  THE  NOTE   REGISTRAR,   THE   SECURITIES
ADMINISTRATOR,  THE  OWNER  TRUSTEE  AND THE  INDENTURE  TRUSTEE  A  CERTIFICATE
CERTIFYING TO SUCH EFFECT.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS  AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

PRINCIPAL  OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH  HEREIN.  ACCORDINGLY,
THE  OUTSTANDING  PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

                                      A-1-2

<PAGE>

              MERRILL LYNCH MORTGAGE INVESTORS TRUST, SERIES 2005-2
                    MORTGAGE-BACKED NOTES, SERIES MLCC 2005-2
                                CLASS [1][2][3]-A

AGGREGATE NOTE PRINCIPAL                  NOTE INTEREST
BALANCE: $[________________]              RATE: Adjustable Rate

INITIAL NOTE PRINCIPAL                    NOTE NO. 1
BALANCE OF THIS NOTE: $[_____________]

                                          CUSIP NO: [_______________]

      MERRILL LYNCH MORTGAGE  INVESTORS TRUST,  SERIES 2005-2 (the "Issuer"),  a
Delaware  statutory trust, for value received,  hereby promises to pay to Cede &
Co. or  registered  assigns,  the principal  sum of  $[____________________]  in
monthly  installments on the  twenty-fifth  day of each month or, if such day is
not a Business Day, the next  succeeding  Business Day (each a "Payment  Date"),
commencing in September  2005 and ending on or before the Payment Date occurring
in [__________  20___] (the "Final Scheduled  Payment Date") and to pay interest
on the Note Principal  Balance of this Note (this "Note")  outstanding from time
to time as provided below.

      This   Note  is  one  of  a  duly   authorized   issue  of  the   Issuer's
Mortgage-Backed  Notes,  Series  MLCC  2005-2  (the  "Notes"),  issued  under an
Indenture dated as of August 31, 2005 (the "Indenture"), among the Issuer, Wells
Fargo Bank, N.A., as Securities  Administrator (the "Securities  Administrator")
and HSBC Bank USA,  National  Association,  as indenture trustee (the "Indenture
Trustee",  which  term  includes  any  successor  Indenture  Trustee  under  the
Indenture) to which Indenture and all indentures  supplemental thereto reference
is hereby  made for a  statement  of the  respective  rights  thereunder  of the
Issuer, the Indenture  Trustee,  and the Holders of the Notes and the terms upon
which the Notes are to be  authenticated  and delivered.  All terms used in this
Note which are defined in the Indenture shall have the meanings assigned to them
in the Indenture.

      Payments  of  principal  and  interest  on this  Note will be made on each
Payment Date to the  Noteholder  of record as of the related  Record  Date.  The
"Note Principal  Balance" of a Note as of any date of  determination is equal to
the initial Note Principal Balance thereof, minus (i) all amounts distributed in
respect of principal  with respect to such Class of Notes and (ii) the aggregate
amount of any  reductions in the Note Principal  Balance  thereof deemed to have
occurred in connection with  allocations of Realized Losses on all prior Payment
Dates in accordance  with the Indenture,  taking account of its applicable  Loss
Allocation Limitation, plus (iii) any Subsequent Recoveries allocated thereto.

      The  principal  of,  and  interest  on,  this Note are due and  payable as
described  in the  Indenture,  in such coin or currency of the United  States of
America  as at the time of payment  is legal  tender  for  payment of public and
private  debts.  All payments made by the Issuer with respect to this Note shall
be equal to this  Note's pro rata share of the  aggregate  payments on all Class
[1][2][3]-A  Notes as described  above, and shall be applied as between interest
and principal as provided in the Indenture.

                                      A-1-3

<PAGE>

      All principal and interest  accrued on the Notes, if not previously  paid,
will become finally due and payable at the Final Scheduled Payment Date.

      The Mortgage  Loans are subject to purchase in whole,  but not in part, by
the Majority  Certificateholder on any Payment Date on or after the Payment Date
on which the aggregate  Scheduled  Principal Balance of the Mortgage Loans as of
the end of the  prior Due  Period is less than or equal to 10% of the  aggregate
Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date.

      The Issuer  shall not be liable  upon the  indebtedness  evidenced  by the
Notes  except to the extent of amounts  available  from the Trust  Estate  which
constitutes  security for the payment of the Notes.  The assets  included in the
Trust Estate will be the sole source of payments on the Class [1][2][3]-A Notes,
and each Holder  hereof,  by its  acceptance of this Note,  agrees that (i) such
Note will be limited in right of  payment  to amounts  available  from the Trust
Estate as provided in the  Indenture and (ii) such Holder shall have no recourse
to the Issuer,  the Owner Trustee,  the Indenture  Trustee,  the Depositor,  the
Seller,  the  Master  Servicer,  the  Securities  Administrator  or any of their
respective affiliates, or to the assets of any of the foregoing entities, except
the assets of the Issuer pledged to secure the Class  [1][2][3]-A Notes pursuant
to the Indenture and the rights conveyed to the Issuer under the Indenture.

      Any  payment  of  principal  or  interest  payable  on this Note  which is
punctually  paid on the  applicable  Payment Date shall be paid to the Person in
whose name such Note is  registered  at the close of business on the Record Date
for such Payment Date by check mailed to such person's  address as it appears in
the Note  Register  on such Record  Date,  except for the final  installment  of
principal and interest payable with respect to such Note, which shall be payable
as provided  below.  Notwithstanding  the foregoing,  upon written  request with
appropriate  instructions by the Holder of this Note delivered to the Securities
Administrator  at least five Business Days prior to the Record Date, any payment
of  principal  or  interest,  other than the final  installment  of principal or
interest,  shall be made by wire  transfer  to an account  in the United  States
designated by such Holder.  All  reductions  in the  principal  amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all  Holders  of this  Note and of any Note  issued  upon  the  registration  of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note.  The final  payment of this Note shall be payable
upon  presentation and surrender thereof on or after the Payment Date thereof at
the office designated by the Securities Administrator or the office or agency of
the Issuer  maintained  by it for such  purpose  pursuant to Section 4.02 of the
Indenture.

      Subject  to the  foregoing  provisions,  each  Note  delivered  under  the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note,  shall carry the right to unpaid  principal  and interest  that were
carried by such other Note.

      If an Event of  Default as defined  in the  Indenture  shall  occur and be
continuing  with  respect to the Notes,  the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture.  If any
such  acceleration  of maturity occurs prior to the payment of the entire unpaid
Note  Principal  Balance of the Notes,  the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this Note,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain

                                      A-1-4

<PAGE>

circumstances  specified therein, all amounts collected as proceeds of the Trust
Estate  securing the Notes or otherwise shall continue to be applied to payments
of principal  of and interest on the Notes as if they had not been  declared due
and payable.

      The failure to pay any Net  Interest  Shortfall at any time when funds are
not  available  to make such  payment as  provided  in the  Indenture  shall not
constitute an Event of Default under the Indenture.

      The  Holder of this Note or  Beneficial  Owner of any  interest  herein is
deemed to  represent  that  either  (1) it is not  acquiring  the Note with Plan
Assets or (2) (A) the acquisition,  holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Notes are rated investment grade or better and such
person  believes  that the Notes are properly  treated as  indebtedness  without
substantial  equity features for purposes of the DOL Regulations,  and agrees to
so treat the Notes.  Alternatively,  regardless of the rating of the Notes, such
person may provide the Indenture  Trustee and the Note Registrar with an opinion
of counsel,  which  opinion of counsel will not be at the expense of the Issuer,
the Seller, the Owner Trustee, the Indenture Trustee,  the Master Servicer,  the
Securities Administrator,  the Note Registrar or any servicer, which opines that
the  acquisition,  holding  and  transfer  of such Note or  interest  therein is
permissible  under applicable law, will not constitute or result in a non-exempt
prohibited  transaction  under  ERISA or  Section  4975 of the Code and will not
subject the Issuer, the Seller, the Depositor,  the Owner Trustee, the Indenture
Trustee, the Note Registrar, the Securities  Administrator,  the Master Servicer
or any  servicer  to any  obligation  in  addition  to those  undertaken  in the
Indenture and the other Basic Documents.

      No transfer  of this note shall be made,  unless (A) (I) In the case of an
Initial  Transfer (as defined in the  indenture) of this Note, (x) a certificate
substantially  in the  form of  Exhibit  I to the  indenture  (a  "Tax  Transfer
Certificate") has been furnished to the Securities  Administrator or (y) a "will
be debt" opinion shall have been rendered by a nationally recognized tax counsel
with respect to it and  furnished to the  Securities  Administrator,  or (ii) an
Initial  Transfer of a Privately  Offered  Note with respect to which a "will be
debt"  opinion  has been  rendered  by  nationally  recognized  tax  counsel and
furnished  to the  Securities  Administrator  or (B) in the case of a Subsequent
Transfer (as defined in the indenture) of this Note,  the transferee  shall have
delivered to the Owner Trustee, the Note Registrar, the Securities Administrator
and the Indenture Trustee a certificate  certifying that (1) it is a real estate
investment  trust ("REIT") within the meaning of section 856(a) of the code or a
qualified  REIT  subsidiary  ("QRS") within the meaning of section 856(i) of the
code or an entity disregarded as an entity separate from a REIT or a QRS and (2)
following the transfer,  100% of the Subordinate  Notes and Certificates  (other
than any  Subordinate  Notes with respect to which a "will be debt"  opinion has
been  rendered  by  nationally  recognized  tax  counsel  and  furnished  to the
Securities  Administrator)  will be  owned  by a REIT,  directly  or  indirectly
through  one or more QRSs of such REIT or one or more  entities  disregarded  as
entities  separate from such REIT or such QRSs;  provided that,  notwithstanding
the foregoing,  (x) this note may be pledged to secure  indebtedness  and may be
the subject of repurchase agreements treated as secured indebtedness for federal
income tax purposes,  and (y) this note may be  transferred  by a related lender
under any such related loan  agreement or  repurchase  agreement  upon a default
under any such  indebtedness,  in which case the transferor

                                      A-1-5

<PAGE>

shall deliver to the Note  Registrar,  the Securities  Administrator,  the Owner
Trustee and the Indenture Trustee a certificate certifying to such effect.

      As provided in the  Indenture and subject to certain  limitations  therein
set forth,  the transfer of this Note may be  registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer  pursuant to the Indenture,  accompanied by proper  instruments of
assignment in form satisfactory to the Securities Administrator, one or more new
Notes of any authorized  denominations  and of a like aggregate then outstanding
Note  Principal  Balance,  will  be  issued  to  the  designated  transferee  or
transferees.

      Prior to the due  presentment  for  registration of transfer of this Note,
the Issuer, the Indenture Trustee, the Securities Administrator and any agent of
the Issuer, the Securities  Administrator or the Indenture Trustee may treat the
Person in whose  name this Note is  registered  as the owner of such Note (i) on
the  applicable  Record Date for the purpose of making  payments and interest of
such Note, and (ii) on any other date for all other purposes whatsoever,  as the
owner hereof,  whether or not this Note be overdue,  and none of the Issuer, the
Securities  Administrator,  the  Indenture  Trustee  nor any  such  agent of the
Issuer, the Securities  Administrator or the Indenture Trustee shall be affected
by notice to the contrary.

      The Indenture permits,  with certain  exceptions as therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Issuer and the rights of the  Holders of the Notes  under the  Indenture  at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions  permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes,  to waive any past Event of Default  and its  consequences  except an
Event of Default (a) with  respect to payment of principal of or interest on any
of the Notes,  or (b) in respect of a covenant  or  provision  of the  Indenture
which  cannot be modified  or amended  without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof,  of this
Note (or any one or more predecessor  Notes) shall bind the Holder of every Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof,  whether  or not  notation  of such  consent or waiver is made upon such
Note.  The  Indenture  also permits the Issuer,  the  Indenture  Trustee and the
Securities  Administrator,  following  prior notice to the Rating  Agencies,  to
amend or waive certain terms and conditions  set forth in the Indenture  without
the consent of the Holders of the Notes issued thereunder.

      Initially,  the  Notes  will be  registered  in the name of Cede & Co.  as
nominee of DTC,  acting in its  capacity as the  Depository  for the Notes.  The
Notes will be delivered by the clearing agency in  denominations  as provided in
the Indenture and subject to certain  limitations  therein set forth.  The Notes
are exchangeable for a like aggregate then outstanding Note Principal Balance of
Notes  of  different  authorized  denominations,  as  requested  by  the  Holder
surrendering same.

      Unless the Certificate of  Authentication  hereon has been executed by the
Securities Administrator by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

                                      A-1-6

<PAGE>

      Anything  herein to the  contrary  notwithstanding,  except  as  expressly
provided in the Basic  Documents,  neither the Owner  Trustee in its  individual
capacity, nor any of its respective partners,  beneficiaries,  agents, officers,
directors,  employees, or successors or assigns, shall be personally liable for,
nor shall  recourse be had to any of them for,  the payment of  principal  of or
interest on, or  performance  of, or omission to perform,  any of the covenants,
obligations  or  indemnifications  contained  in this Note,  it being  expressly
understood that said covenants,  obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that,  except as expressly  provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any  deficiency,  loss or  claim  therefrom;  provided,  however,  that  nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust  Estate  for any and all  liabilities,  obligations  and
undertakings contained in this Note.

      AS PROVIDED IN THE  INDENTURE,  THIS NOTE AND THE INDENTURE  CREATING THIS
NOTE SHALL BE CONSTRUED  IN  ACCORDANCE  WITH,  AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

                                      A-1-7

<PAGE>

      IN WITNESS  WHEREOF,  the Issuer has  caused  this  instrument  to be duly
executed.

Dated: August 31, 2005

                                        MERRILL LYNCH MORTGAGE INVESTORS TRUST,
                                        SERIES 2005-2

                                        BY:    WILMINGTON TRUST COMPANY,
                                               not in its individual capacity
                                               but solely in its capacity as
                                               Owner Trustee

                                        By: ____________________________________
                                               Authorized Signatory

            SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

            This  is one of  the  Class  [1][2][3]-A  Notes  referred  to in the
within-mentioned Indenture.

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                        BY: ____________________________________
                                               Authorized Signatory

                                      A-1-8

<PAGE>

                                  ABBREVIATIONS

      The following  abbreviations,  when used in the inscription on the face of
the Note,  shall be construed as though they were written out in full  according
to applicable laws or regulations:

                  TEN COM           --    as tenants in common

                  TEN ENT           --    as tenants by the entireties

                   JT TEN           --    as joint tenants with right of
                                          survivorship and not as tenants in
                                          common

             UNIF GIFT MIN ACT      --    ____________ Custodian

                                          ______________________________________
                                                 (Cust)           (Minor)

                                          under Uniform Gifts to Minor Act
                                          ______________________________________
                                                         (State)

Additional abbreviations may also be used though not in the above list.

                                      A-1-9

<PAGE>

                                   ASSIGNMENT

      FOR VALUE RECEIVED,  the undersigned  hereby sells,  assigns and transfers
unto

      PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

                          ____________________________

                          ____________________________

                          ____________________________
  (Please print or typewrite name and address, including zip code, of assignee)

________________________________________________________________________________
the within Note and all rights thereunder,  and hereby  irrevocably  constitutes
and  appoints  ________________________  attorney to  transfer  said Note on the
books kept for  registration  thereof,  with full power of  substitution  in the
premises.

Dated:

Signature Guaranteed by    __________________________________

      NOTICE:  The signature(s) to this assignment must correspond with the name
as it appears  upon the face of the  within  Note in every  particular,  without
alteration  or  enlargement  or any  change  whatsoever.  Signature(s)  must  be
guaranteed  by a  commercial  bank or by a  member  firm of the New  York  Stock
Exchange  or  another  national  securities  exchange.  Notarized  or  witnessed
signatures are not acceptable.

                                     A-1-10

<PAGE>

                                   EXHIBIT A-2

                              FORM OF CLASS X NOTES

THIS NOTE IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE CLASS 1-A,  CLASS 2-A AND
CLASS 3-A NOTES AS DESCRIBED IN THE INDENTURE.

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED  UNDER THE  SECURITIES  ACT OF
1933, AS AMENDED,  OR THE SECURITIES  LAWS OF ANY STATE AND MAY NOT BE RESOLD OR
TRANSFERRED UNLESS IT IS REGISTERED  PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR
TRANSFERRED IN TRANSACTIONS  WHICH ARE EXEMPT FROM  REGISTRATION  UNDER SUCH ACT
AND  UNDER  APPLICABLE  STATE  LAW AND IS  TRANSFERRED  IN  ACCORDANCE  WITH THE
PROVISIONS OF THE INDENTURE.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE  TRANSFEREE  IS NOT  ACQUIRING
THE NOTE WITH PLAN ASSETS OR UNLESS THE INDENTURE TRUSTEE AND THE NOTE REGISTRAR
ARE  PROVIDED  WITH AN OPINION OF COUNSEL TO THE EFFECT THAT THE PURCHASE OF THE
NOTES IS PERMISSIBLE  UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN ANY
PROHIBITED  TRANSACTION  UNDER  ERISA OR  SECTION  4975 OF THE CODE AND WILL NOT
SUBJECT THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE DEPOSITOR,  THE SECURITIES
ADMINISTRATOR,  THE MASTER  SERVICER,  ANY SERVICER OR THE NOTE REGISTRAR TO ANY
OBLIGATION OR LIABILITY  (INCLUDING  OBLIGATIONS OR  LIABILITIES  UNDER ERISA OR
SECTION  4975 OF THE CODE) IN ADDITION  TO THOSE  UNDERTAKEN  IN THE  INDENTURE,
WHICH  OPINION OF COUNSEL  SHALL NOT BE AN EXPENSE OF THE  DEPOSITOR,  THE OWNER
TRUSTEE,   THE  INDENTURE   TRUSTEE,   THE  NOTE  REGISTRAR  OR  THE  SECURITIES
ADMINISTRATOR.

NO  TRANSFER  OF THIS NOTE SHALL BE MADE,  UNLESS  (A) A "WILL BE DEBT"  OPINION
SHALL HAVE BEEN RENDERED BY NATIONALLY RECOGNIZED TAX COUNSEL WITH RESPECT TO IT
AND FURNISHED TO THE SECURITIES ADMINISTRATOR,  OR (B) THE TRANSFEREE SHALL HAVE
DELIVERED TO THE OWNER TRUSTEE, THE NOTE REGISTRAR, THE SECURITIES ADMINISTRATOR
AND THE INDENTURE TRUSTEE A CERTIFICATE  CERTIFYING THAT (1) IT IS A REAL ESTATE
INVESTMENT  TRUST ("REIT") WITHIN THE MEANING OF SECTION 856(a) OF THE CODE OR A
QUALIFIED  REIT  SUBSIDIARY  ("QRS") WITHIN THE MEANING OF SECTION 856(i) OF THE
CODE OR AN ENTITY DISREGARDED AS AN ENTITY SEPARATE FROM A REIT OR A QRS AND (2)
FOLLOWING THE TRANSFER,  100% OF THE SUBORDINATE  NOTES AND CERTIFICATES  (OTHER
THAN ANY  SUBORDINATE  NOTES WITH RESPECT TO WHICH A "WILL BE DEBT"  OPINION HAS
BEEN  RENDERED  BY  NATIONALLY  RECOGNIZED  TAX  COUNSEL  AND  FURNISHED  TO THE
SECURITIES  ADMINISTRATOR)  WILL BE  OWNED  BY A REIT,  DIRECTLY  OR  INDIRECTLY
THROUGH  ONE OR MORE QRSs OF SUCH REIT OR ONE OR MORE  ENTITIES  DISREGARDED  AS
ENTITIES  SEPARATE FROM SUCH REIT OR SUCH QRSs;

                                      A-2-1

<PAGE>

PROVIDED THAT (X) THIS NOTE MAY BE PLEDGED TO SECURE INDEBTEDNESS AND MAY BE THE
SUBJECT OF REPURCHASE  AGREEMENTS  TREATED AS SECURED  INDEBTEDNESS  FOR FEDERAL
INCOME TAX PURPOSES,  AND (Y) THIS NOTE MAY BE  TRANSFERRED  BY A RELATED LENDER
UNDER ANY SUCH RELATED LOAN  AGREEMENT OR  REPURCHASE  AGREEMENT  UPON A DEFAULT
UNDER ANY SUCH  INDEBTEDNESS,  IN WHICH CASE THE TRANSFEROR SHALL DELIVER TO THE
NOTE  REGISTRAR,  THE  SECURITIES  ADMINISTRATOR,  THE  OWNER  TRUSTEE  AND  THE
INDENTURE TRUSTEE A CERTIFICATE CERTIFYING TO SUCH EFFECT.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS  AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

                                      A-2-2

<PAGE>

              MERRILL LYNCH MORTGAGE INVESTORS TRUST, SERIES 2005-2
                    MORTGAGE-BACKED NOTES, SERIES MLCC 2005-2
                                     CLASS X

                                              NOTE INTEREST
AGGREGATE NOTIONAL AMOUNT:  :$[__________]    RATE:  Variable Rate

INITIAL NOTIONAL AMOUNT OF THIS NOTE:
:                                             NOTE NO. 1

PERCENTAGE INTEREST:  100%                    CUSIP NO: [__________]

      MERRILL LYNCH MORTGAGE  INVESTORS TRUST,  SERIES 2005-2 (the "Issuer"),  a
Delaware  statutory  trust,  for  value  received,  hereby  promises  to  pay to
[__________] or registered assigns,  interest hereon in monthly  installments on
the  twenty-fifth  day of each month or, if such day is not a Business  Day, the
next succeeding  Business Day (each a "Payment  Date"),  commencing in September
2005 and ending on or before the Payment  Date  occurring  in October  2035 (the
"Final  Scheduled  Payment  Date")  and to pay  interest  on the Note  Principal
Balance of this Note (this  "Note")  outstanding  from time to time as  provided
below.

      This   Note  is  one  of  a  duly   authorized   issue  of  the   Issuer's
Mortgage-Backed  Notes,  Series  MLCC  2005-2  (the  "Notes"),  issued  under an
Indenture,  dated as of August 31,  2005 (the  "Indenture"),  among the  Issuer,
Wells  Fargo  Bank,   N.A.,  as  Securities   Administrator   (the   "Securities
Administrator")  and HSBC Bank USA, National  Association,  as indenture trustee
(the "Indenture  Trustee",  which term includes any successor  Indenture Trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective  rights thereunder of
the  Issuer,  the  Indenture  Trustee and the Holders of the Notes and the terms
upon which the Notes are to be  authenticated  and delivered.  All terms used in
this Note which are defined in the Indenture shall have the meanings assigned to
them in the Indenture.

      Payments of interest on this Note will be made on each Payment Date to the
Noteholder of record as of the related  Record Date.  The  "Notional  Amount" of
this Note as of any date of determination shall be calculated as set forth under
the Indenture.

      The  interest  on this  Note  are  due and  payable  as  described  in the
Indenture,  in such coin or currency  of the United  States of America as at the
time of payment is legal  tender for  payment of public and private  debts.  All
payments  made by the  Issuer  with  respect  to this Note  shall be  applied as
provided in the Indenture.

      The Mortgage  Loans are subject to purchase in whole,  but not in part, by
the Majority  Certificateholder on any Payment Date on or after the Payment Date
on which the aggregate  Scheduled  Principal Balance of the Mortgage Loans as of
the end of the  prior  Due  Period  is less  than or equal  to 10% of  aggregate
Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date.

                                      A-2-3

<PAGE>

      The Issuer  shall not be liable  upon the  indebtedness  evidenced  by the
Notes  except to the extent of amounts  available  from the Trust  Estate  which
constitutes  security for the payment of the Notes.  The assets  included in the
Trust Estate will be the sole source of payments on the Class X Notes,  and each
Holder hereof, by its acceptance of this Note, agrees that (i) such Note will be
limited  in right of  payment  to  amounts  available  from the Trust  Estate as
provided in the  Indenture  and (ii) such  Holder  shall have no recourse to the
Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the Seller, the
Master  Servicer,  the  Securities  Administrator  or  any of  their  respective
affiliates, or to the assets of any of the foregoing entities, except the assets
of the Issuer  pledged to secure the Class X Notes pursuant to the Indenture and
the rights conveyed to the Issuer under the Indenture.

      Any payment of interest  payable on this Note which is punctually  paid on
the applicable  Payment Date shall be paid to the Person in whose name such Note
is  registered at the close of business on the Record Date for such Payment Date
by check mailed to such  person's  address as it appears in the Note Register on
such Record  Date,  except for the final  installment  of interest  payable with
respect to such Note, which shall be payable as provided below.  Notwithstanding
the foregoing,  upon written request with appropriate instructions by the Holder
of this Note  delivered to the Securities  Administrator  at least five Business
Days prior to the Record  Date,  any payment of  interest,  other than the final
installment  of  interest,  shall be made by wire  transfer to an account in the
United States designated by such Holder. The final payment of this Note shall be
payable upon  presentation  and  surrender  thereof on or after the Payment Date
thereof at the Office  designated by the Securities  Administrator or the office
or  agency of the  Issuer  maintained  by it for such  purpose  pursuant  to the
Indenture.

      Subject  to the  foregoing  provisions,  each  Note  delivered  under  the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note,  shall carry the right to unpaid  principal  and interest  that were
carried by such other Note.

      If an Event of  Default as defined  in the  Indenture  shall  occur and be
continuing  with  respect to the Notes,  the Notes may become or be declared due
and  payable in the manner and with the effect  provided in the  Indenture.  The
Indenture provides that, notwithstanding the acceleration of the maturity of the
Notes, under certain  circumstances  specified therein, all amounts collected as
proceeds of the Trust Estate  securing the Notes or otherwise  shall continue to
be applied to payments of principal and interest on the Notes as if they had not
been declared due and payable.

      The failure to pay  principal or interest on the Class X Notes,  shall not
constitute an Event of Default under the Indenture.

      No transfer,  sale,  pledge or other  disposition of this Note or interest
herein shall be made unless that transfer,  sale, pledge or other disposition is
exempt from the registration and/or qualification requirements of the Securities
Act and any applicable state securities laws, or is otherwise made in accordance
with the  Securities Act and such state  securities  laws. If a transfer of this
Note is to be made without  registration under the Securities Act (other than in
connection  with the  initial  issuance  thereof  or a  transfer  thereof by the
Depositor or one of its  Affiliates),  then the Note  Registrar  shall refuse to
register  such  transfer   unless  (i)  it  receives  (and  upon  receipt,   may
conclusively  rely upon) a  certificate  substantially  in the form  attached as
Exhibit C to the  Indenture  or (ii) it  receives  a written  Opinion of Counsel
acceptable to and in form and

                                      A-2-4

<PAGE>

substance  satisfactory to the Note Registrar and the Indenture  Trustee and the
transferee executes a representation letter substantially in the form of Exhibit
D attached to the Indenture,  and transferor  executes a  representation  letter
substantially  in  the  form  of  Exhibit  E  attached  to the  Indenture,  each
acceptable to and in form and substance  satisfactory  to the Note Registrar and
the Indenture Trustee. None of the Issuer, the Depositor,  the Indenture Trustee
or the Note  Registrar  is  obligated to register or qualify any Notes under the
Securities  Act or any other  securities law or to take any action not otherwise
required  under the  Indenture  to permit the  transfer of this Note or interest
herein without registration or qualification.  Any Noteholder desiring to effect
a transfer  of this Note or interest  herein  shall,  and does hereby  agree to,
indemnify the Issuer,  the Depositor,  the Owner Trustee,  the Indenture Trustee
and the Note Registrar  against any liability that may result if the transfer is
not so exempt or is not made in accordance with such federal and state laws.

      No transfer of this Class X Note or any interest  therein shall be made to
any Person unless the Indenture Trustee and the Note Registrar are provided with
an Opinion of Counsel which  establishes  to the  satisfaction  of the Indenture
Trustee  and  the  Note  Registrar  that  the  purchase  of a  Class  X Note  is
permissible  under  applicable  law,  will  not  constitute  or  result  in  any
prohibited  transaction  under  ERISA or  Section  4975 of the Code and will not
subject the Depositor,  the Owner Trustee, the Indenture Trustee, the Securities
Administrator,  the Note  Registrar,  any Servicer or the Master Servicer to any
obligation or liability  (including  obligations or  liabilities  under ERISA or
Section  4975 of the Code) in addition  to those  undertaken  in the  Indenture,
which  Opinion of Counsel  shall not be an expense of the  Depositor,  the Owner
Trustee,  the Indenture Trustee,  the Master Servicer,  any Servicer or the Note
Registrar. In lieu of such Opinion of Counsel, a Person acquiring a Class X Note
may provide a  certification  in the form attached to the  Indenture,  which the
Indenture  Trustee,  Depositor,  the Owner Trustee,  the Master Servicer and the
Note Registrar may rely upon without further inquiry or investigation.

      No transfer of this Class X Note (other than any Class X Note with respect
to which a "will be debt" opinion has been rendered by nationally recognized tax
counsel and furnished to the Securities  Administrator)  or any interest therein
shall be made to any Person, and the Note Registrar shall refuse to register any
such transfer,  unless the transferee shall have delivered to the Owner Trustee,
the Note Registrar,  the Securities  Administrator  and the Indenture  Trustee a
certificate  certifying that (i) it is a real estate  investment  trust ("REIT")
within the meaning of Section  856(a) of the Code, a qualified  REIT  subsidiary
("QRS")  within  the  meaning  of  Section  856(i)  of the  Code,  or an  entity
disregarded  as an entity  separate from a REIT or a QRS and (ii)  following the
transfer,  100% of the Subordinate Notes and Trust Certificates  (other than any
Subordinate  Notes that are characterized as indebtedness for federal income tax
purposes)  will be owned by a REIT,  directly or indirectly  through one or more
qualified  QRSs of such REIT or one or more  entities  disregarded  as  entities
separate from such REIT or such QRSs; provided that (x) this Class X Note may be
pledged to secure  indebtedness and may be the subject of repurchase  agreements
treated as secured  indebtedness  for federal income tax purposes,  and (y) this
Class X Note may be  transferred  by the related  lender  under any such related
loan   agreement  or  repurchase   agreement  upon  a  default  under  any  such
indebtedness,  in which case the transferor shall deliver to the Note Registrar,
the  Securities  Administrator,  the Owner Trustee and the  Indenture  Trustee a
certificate certifying to such effect.

                                      A-2-5

<PAGE>

      As provided in the  Indenture and subject to certain  limitations  therein
set forth,  the transfer of this Note may be  registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer  pursuant to the Indenture,  accompanied by proper  instruments of
assignment in form satisfactory to the Securities Administrator, one or more new
Notes of any authorized  denominations  and of a like aggregate then outstanding
Note  Principal  Balance,  will  be  issued  to  the  designated  transferee  or
transferees.

      Prior to the due  presentment  for  registration of transfer of this Note,
the Issuer, the Indenture Trustee, the Securities Administrator and any agent of
the Issuer, the Securities  Administrator or the Indenture Trustee may treat the
Person in whose  name this Note is  registered  as the owner of such Note (i) on
the  applicable  Record Date for the purpose of making  payments and interest of
such Note, and (ii) on any other date for all other purposes whatsoever,  as the
owner hereof,  whether or not this Note be overdue,  and none of the Issuer, the
Securities  Administrator,  the  Indenture  Trustee  nor any  such  agent of the
Issuer, the Securities  Administrator or the Indenture Trustee shall be affected
by notice to the contrary.

      The Indenture permits,  with certain  exceptions as therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Issuer and the rights of the  Holders of the Notes  under the  Indenture  at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions  permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes,  to waive any past Event of Default  and its  consequences  except an
Event of Default (a) with  respect to payment of principal of or interest on any
of the Notes,  or (b) in respect of a covenant  or  provision  of the  Indenture
which  cannot be modified  or amended  without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof,  of this
Note (or any one or more predecessor  Notes) shall bind the Holder of every Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof,  whether  or not  notation  of such  consent or waiver is made upon such
Note.  The  Indenture  also permits the Issuer,  the  Indenture  Trustee and the
Securities  Administrator,  following  prior notice to the Rating  Agencies,  to
amend or waive certain terms and conditions  set forth in the Indenture  without
the consent of the Holders of the Notes issued thereunder.

      The Notes are exchangeable for a like aggregate then outstanding  Notional
Amount of the Notes of different authorized  denominations,  as requested by the
Holder surrendering same.

      Unless the Certificate of  Authentication  hereon has been executed by the
Securities Administrator by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

      Anything  herein to the  contrary  notwithstanding,  except  as  expressly
provided in the Basic  Documents,  neither the Owner  Trustee in its  individual
capacity, nor any of its respective partners,  beneficiaries,  agents, officers,
directors,  employees, or successors or assigns, shall be personally liable for,
nor shall  recourse be had to any of them for,  the payment of  principal  of or
interest on, or  performance  of, or omission to perform,  any of the covenants,
obligations  or  indemnifications  contained  in this Note,  it being  expressly
understood that said covenants,  obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that,  except as expressly

                                      A-2-6

<PAGE>

provided in the Basic  Documents,  the Holder shall have no claim against any of
the foregoing for any deficiency,  loss or claim therefrom;  provided,  however,
that  nothing  contained  herein  shall be taken to  prevent  recourse  to,  and
enforcement against, the assets of the Trust Estate for any and all liabilities,
obligations and undertakings contained in this Note.

      AS PROVIDED IN THE  INDENTURE,  THIS NOTE AND THE INDENTURE  CREATING THIS
NOTE SHALL BE CONSTRUED  IN  ACCORDANCE  WITH,  AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

                                      A-2-7

<PAGE>

      IN WITNESS  WHEREOF,  the Issuer has  caused  this  instrument  to be duly
executed.

Dated: August 31, 2005

                                        MERRILL LYNCH MORTGAGE  INVESTORS TRUST,
                                        SERIES 2005-2

                                        BY:     WILMINGTON TRUST COMPANY,
                                                not in its  individual  capacity
                                                but  solely in its  capacity  as
                                                Owner Trustee

                                        By:     ________________________________
                                                Authorized Signatory

            SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

 This is one of the Class X Notes referred to in the within-mentioned Indenture.

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                        BY:     ________________________________
                                                Authorized Signatory

                                      A-2-8

<PAGE>

                                  ABBREVIATIONS

      The following  abbreviations,  when used in the inscription on the face of
the Note,  shall be construed as though they were written out in full  according
to applicable laws or regulations:

         TEN COM              --      as tenants in common

         TEN ENT              --      as tenants by the entireties

          JT TEN              --      as   joint    tenants    with   right   of
                                      survivorship and not as tenants in common

    UNIF GIFT MIN ACT         --      __________ Custodian
                                      __________________________________________
                                              (Cust)              (Minor)

                                      under Uniform Gifts to Minor Act
                                      __________________________________________
                                                        (State)

Additional abbreviations may also be used though not in the above list.

                                      A-2-9

<PAGE>

                                   ASSIGNMENT

      FOR VALUE RECEIVED,  the undersigned  hereby sells,  assigns and transfers
unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

                ________________________________________________

                ________________________________________________

                ________________________________________________
  (Please print or typewrite name and address, including zip code, of assignee)

________________________________________________________________________________
the within Note and all rights thereunder,  and hereby  irrevocably  constitutes
and appoints  ____________________  attorney to transfer  said Note on the books
kept for registration thereof, with full power of substitution in the premises.

Dated:

Signature Guaranteed by    ________________________________________

      NOTICE:  The signature(s) to this assignment must correspond with the name
as it appears  upon the face of the  within  Note in every  particular,  without
alteration  or  enlargement  or any  change  whatsoever.  Signature(s)  must  be
guaranteed  by a  commercial  bank or by a  member  firm of the New  York  Stock
Exchange  or  another  national  securities  exchange.  Notarized  or  witnessed
signatures are not acceptable.

                                     A-2-10

<PAGE>

                                   EXHIBIT A-3

                     FORM OF CLASS M NOTES AND CLASS B NOTES

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS 1-A, CLASS 2-A, CLASS
3-A[,] [AND] CLASS X[,] [AND] [CLASS  M-1][,] [AND] [CLASS  M-2][,] [AND] [CLASS
M-3][,]  [AND]  [CLASS  B-1][,]  [AND]  [CLASS  B-2] NOTES AS  DESCRIBED  IN THE
INDENTURE.

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED  UNDER THE  SECURITIES  ACT OF
1933, AS AMENDED,  OR THE SECURITIES  LAWS OF ANY STATE AND MAY NOT BE RESOLD OR
TRANSFERRED UNLESS IT IS REGISTERED  PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR
TRANSFERRED IN TRANSACTIONS  WHICH ARE EXEMPT FROM  REGISTRATION  UNDER SUCH ACT
AND  UNDER  APPLICABLE  STATE  LAW AND IS  TRANSFERRED  IN  ACCORDANCE  WITH THE
PROVISIONS OF THE INDENTURE.

NO TRANSFER OF THIS NOTE SHALL BE MADE UNLESS THE  TRANSFEREE  IS NOT  ACQUIRING
THE NOTE WITH PLAN ASSETS OR UNLESS THE INDENTURE TRUSTEE AND THE NOTE REGISTRAR
ARE  PROVIDED  WITH AN OPINION OF COUNSEL TO THE EFFECT THAT THE PURCHASE OF THE
NOTES IS PERMISSIBLE  UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN ANY
PROHIBITED  TRANSACTION  UNDER  ERISA OR  SECTION  4975 OF THE CODE AND WILL NOT
SUBJECT THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE DEPOSITOR, THE ISSUER, THE
SELLER, THE SECURITIES  ADMINISTRATOR,  THE MASTER SERVICER, ANY SERVICER OR THE
NOTE  REGISTRAR  TO  ANY  OBLIGATION  OR  LIABILITY  (INCLUDING  OBLIGATIONS  OR
LIABILITIES  UNDER  ERISA OR  SECTION  4975 OF THE  CODE) IN  ADDITION  TO THOSE
UNDERTAKEN IN THE INDENTURE, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF
THE DEPOSITOR,  THE OWNER TRUSTEE,  THE INDENTURE TRUSTEE, THE NOTE REGISTRAR OR
THE SECURITIES ADMINISTRATOR.

NO  TRANSFER  OF THIS NOTE SHALL BE MADE,  UNLESS  (A) A "WILL BE DEBT"  OPINION
SHALL HAVE BEEN RENDERED BY NATIONALLY RECOGNIZED TAX COUNSEL WITH RESPECT TO IT
AND FURNISHED TO THE SECURITIES ADMINISTRATOR,  OR (B) THE TRANSFEREE SHALL HAVE
DELIVERED TO THE OWNER TRUSTEE, THE NOTE REGISTRAR, THE SECURITIES ADMINISTRATOR
AND THE INDENTURE TRUSTEE A CERTIFICATE  CERTIFYING THAT (1) IT IS A REAL ESTATE
INVESTMENT  TRUST ("REIT") WITHIN THE MEANING OF SECTION 856(a) OF THE CODE OR A
QUALIFIED  REIT  SUBSIDIARY  ("QRS") WITHIN THE MEANING OF SECTION 856(i) OF THE
CODE OR AN ENTITY DISREGARDED AS AN ENTITY SEPARATE FROM A REIT OR A QRS AND (2)
FOLLOWING THE TRANSFER,  100% OF THE SUBORDINATE  NOTES AND CERTIFICATES  (OTHER
THAN ANY  SUBORDINATE  NOTES WITH RESPECT TO WHICH A "WILL BE DEBT"  OPINION HAS
BEEN  RENDERED  BY  NATIONALLY  RECOGNIZED  TAX  COUNSEL  AND  FURNISHED  TO THE
SECURITIES

                                      A-3-1

<PAGE>

ADMINISTRATOR)  WILL BE OWNED BY A SINGLE REIT,  DIRECTLY OR INDIRECTLY  THROUGH
ONE OR MORE QRSs OF SUCH REIT OR ONE OR MORE  ENTITIES  DISREGARDED  AS ENTITIES
SEPARATE FROM SUCH REIT OR SUCH QRSs; PROVIDED THAT (X) THIS NOTE MAY BE PLEDGED
TO SECURE  INDEBTEDNESS AND MAY BE THE SUBJECT OF REPURCHASE  AGREEMENTS TREATED
AS SECURED  INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES,  AND (Y) THIS NOTE MAY
BE  TRANSFERRED  BY A RELATED  LENDER UNDER ANY SUCH  RELATED LOAN  AGREEMENT OR
REPURCHASE  AGREEMENT UPON A DEFAULT UNDER ANY SUCH INDEBTEDNESS,  IN WHICH CASE
THE   TRANSFEROR   SHALL  DELIVER  TO  THE  NOTE   REGISTRAR,   THE   SECURITIES
ADMINISTRATOR,  THE  OWNER  TRUSTEE  AND THE  INDENTURE  TRUSTEE  A  CERTIFICATE
CERTIFYING TO SUCH EFFECT.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS  AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

PRINCIPAL  OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH  HEREIN.  ACCORDINGLY,
THE  OUTSTANDING  PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

                                      A-3-2

<PAGE>

              MERRILL LYNCH MORTGAGE INVESTORS TRUST, SERIES 2005-2
                    MORTGAGE-BACKED NOTES, SERIES MLCC 2005-2
                             CLASS [M][B]-[1][2][3]

AGGREGATE NOTE PRINCIPAL                      NOTE INTEREST
BALANCE: $[__________]                        RATE:  Variable Rate

INITIAL NOTE PRINCIPAL                        NOTE NO. 1
BALANCE OF THIS NOTE: $[__________]

PERCENTAGE INTEREST: 100%                     CUSIP NO: [__________]

      MERRILL LYNCH MORTGAGE  INVESTORS TRUST,  SERIES 2005-2 (the "Issuer"),  a
Delaware  statutory  trust,  for  value  received,  hereby  promises  to  pay to
[____________________]   or   registered   assigns,   the   principal   sum  of
$[__________] in monthly  installments on the twenty-fifth day of each month or,
if such day is not a Business  Day,  the next  succeeding  Business  Day (each a
"Payment  Date"),  commencing  in  September  2005 and  ending on or before  the
Payment Date occurring in October 2035 (the "Final Scheduled  Payment Date") and
to pay  interest  on the Note  Principal  Balance  of this  Note  (this  "Note")
outstanding from time to time as provided below.

      This   Note  is  one  of  a  duly   authorized   issue  of  the   Issuer's
Mortgage-Backed  Notes,  Series  MLCC  2005-2  (the  "Notes"),  issued  under an
Indenture,  dated as of August 31,  2005 (the  "Indenture"),  among the  Issuer,
Wells  Fargo  Bank,   N.A.,  as  Securities   Administrator   (the   "Securities
Administrator")  and HSBC Bank USA, National  Association,  as indenture trustee
(the "Indenture Trustee",  which term includes any successor Indenture Trustee),
to which Indenture and all indentures  supplemental  thereto reference is hereby
made for a statement of the  respective  rights  thereunder  of the Issuer,  the
Indenture  Trustee  and the  Holders  of the Notes and the terms  upon which the
Notes are to be authenticated  and delivered.  All terms used in this Note which
are defined in the  Indenture  shall have the  meanings  assigned to them in the
Indenture.

      Payments  of  principal  and  interest  on this  Note will be made on each
Payment Date to the  Noteholder  of record as of the related  Record  Date.  The
"Note Principal  Balance" of a Note as of any date of  determination is equal to
the initial Note Principal Balance thereof, minus (i) all amounts distributed in
respect of  principal  with respect to such Class of Notes,  (ii) the  aggregate
amount of any  reductions in the Note Principal  Balance  thereof deemed to have
occurred in connection with  allocations of Realized Losses on all prior Payment
Dates in accordance  with the Indenture,  taking account of its applicable  Loss
Allocation  Limitation,  and (iii) such  Class's pro rata share,  if any, of the
applicable  Subordinate  Writedown Amount for previous Payment Dates,  plus (iv)
any Subsequent Recoveries allocated thereto.

      The  principal  of,  and  interest  on,  this Note are due and  payable as
described  in the  Indenture,  in such coin or currency of the United  States of
America  as at the time of payment  is legal  tender  for  payment of public and
private  debts.  All payments made by the Issuer with respect to this Note shall
be equal to this  Note's pro rata share of the  aggregate  payments on all

                                      A-3-3

<PAGE>

Class [M][B]-[1][2][3] Notes as described above, and shall be applied as between
interest and principal as provided in the Indenture.

      All principal and interest  accrued on the Notes, if not previously  paid,
will become finally due and payable at the Final Scheduled Payment Date.

      The Mortgage  Loans are subject to purchase in whole,  but not in part, by
the Majority  Certificateholder on any Payment Date on or after the Payment Date
on which the aggregate  Scheduled  Principal Balance of the Mortgage Loans as of
the end of the  prior Due  Period is less than or equal to 10% of the  aggregate
Scheduled Principal Balance of the Mortgage Loans as of the Cut-off Date.

      The Issuer  shall not be liable  upon the  indebtedness  evidenced  by the
Notes  except to the extent of amounts  available  from the Trust  Estate  which
constitutes  security for the payment of the Notes.  The assets  included in the
Trust  Estate will be the sole source of payments on the Class  [M][B]-[1][2][3]
Notes, and each Holder hereof,  by its acceptance of this Note,  agrees that (i)
such Note will be limited in right of  payment  to  amounts  available  from the
Trust  Estate as provided in the  Indenture  and (ii) such Holder  shall have no
recourse to the Issuer, the Owner Trustee, the Indenture Trustee, the Depositor,
the Seller,  the Master Servicer,  the Securities  Administrator or any of their
respective affiliates, or to the assets of any of the foregoing entities, except
the assets of the Issuer  pledged  to secure  the Class  [M][B]-[1][2][3]  Notes
pursuant  to the  Indenture  and the rights  conveyed  to the  Issuer  under the
Indenture.

      Any  payment  of  principal  or  interest  payable  on this Note  which is
punctually  paid on the  applicable  Payment Date shall be paid to the Person in
whose name such Note is  registered  at the close of business on the Record Date
for such Payment Date by check mailed to such person's  address as it appears in
the Note  Register  on such Record  Date,  except for the final  installment  of
principal and interest payable with respect to such Note, which shall be payable
as provided  below.  Notwithstanding  the foregoing,  upon written  request with
appropriate  instructions by the Holder of this Note delivered to the Securities
Administrator  at least five Business Days prior to the Record Date, any payment
of  principal  or  interest,  other than the final  installment  of principal or
interest,  shall be made by wire  transfer  to an account  in the United  States
designated by such Holder.  All  reductions  in the  principal  amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all  Holders  of this  Note and of any note  issued  upon  the  registration  of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note.  The final  payment of this Note shall be payable
upon  presentation and surrender thereof on or after the Payment Date thereof at
the Office designated by the Securities Administrator or the office or agency of
the Issuer maintained by it for such purpose pursuant to the Indenture.

      Subject  to the  foregoing  provisions,  each  Note  delivered  under  the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note,  shall carry the right to unpaid  principal  and interest  that were
carried by such other Note.

      If an Event of  Default as defined  in the  Indenture  shall  occur and be
continuing  with  respect to the Notes,  the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture.  If any
such  acceleration  of maturity occurs prior to the payment of the entire unpaid
Note  Principal  Balance of the Notes,  the amount payable to the

                                      A-3-4

<PAGE>

Holder  of this  Note  will be equal  to the sum of the  unpaid  Note  Principal
Balance of this Note,  together  with  accrued  and unpaid  interest  thereon as
described in the Indenture.  The Indenture  provides that,  notwithstanding  the
acceleration of the maturity of the Notes, under certain circumstances specified
therein,  all amounts  collected  as proceeds of the Trust  Estate  securing the
Notes or otherwise  shall continue to be applied to payments of principal of and
interest on the Notes as if they had not been declared due and payable.

      The failure to pay any Net  Interest  Shortfall at any time when funds are
not  available  to make such  payment as  provided  in the  Indenture  shall not
constitute an Event of Default under the Indenture.

      No transfer,  sale,  pledge or other  disposition of this Note or interest
herein shall be made unless that transfer,  sale, pledge or other disposition is
exempt from the registration and/or qualification requirements of the Securities
Act and any applicable state securities laws, or is otherwise made in accordance
with the  Securities Act and such state  securities  laws. If a transfer of this
Note is to be made without  registration under the Securities Act (other than in
connection  with the  initial  issuance  thereof  or a  transfer  thereof by the
Depositor or one of its  Affiliates),  then the Note  Registrar  shall refuse to
register  such  transfer   unless  (i)  it  receives  (and  upon  receipt,   may
conclusively  rely upon) a  certificate  substantially  in the form  attached as
Exhibit C to the  Indenture  or (ii) it  receives  a written  Opinion of Counsel
acceptable to and in form and substance  satisfactory  to the Note Registrar and
the  Indenture  Trustee  and the  transferee  executes a  representation  letter
substantially in the form of Exhibit D attached to the Indenture, and transferor
executes a representation letter substantially in the form of Exhibit E attached
to the Indenture,  each acceptable to and in form and substance  satisfactory to
the Note Registrar and the Indenture Trustee. None of the Issuer, the Depositor,
the Indenture  Trustee or the Note Registrar is obligated to register or qualify
any Notes under the  Securities  Act or any other  securities law or to take any
action not otherwise required under the Indenture to permit the transfer of this
Note or interest herein without  registration or  qualification.  Any Noteholder
desiring to effect a transfer of this Note or interest  herein  shall,  and does
hereby agree to,  indemnify the Issuer,  the Depositor,  the Owner Trustee,  the
Indenture  Trustee and the Note Registrar  against any liability that may result
if the transfer is not so exempt or is not made in accordance  with such federal
and state laws.

      No transfer of this Class  [M][B]-[1][2][3]  Note or any interest  therein
shall be made to any Person unless the Indenture  Trustee and the Note Registrar
are provided with an Opinion of Counsel which establishes to the satisfaction of
the  Indenture  Trustee  and the Note  Registrar  that the  purchase  of a Class
[M][B]-[1][2][3]  Note is permissible  under applicable law, will not constitute
or result in any prohibited  transaction under ERISA or Section 4975 of the Code
and will not subject the Depositor,  the Owner Trustee,  the Indenture  Trustee,
the Master  Servicer,  any Servicer or the Note  Registrar to any  obligation or
liability  (including  obligations or liabilities under ERISA or Section 4975 of
the Code) in addition to those  undertaken  in the  Indenture,  which Opinion of
Counsel  shall  not be an  expense  of the  Depositor,  the Owner  Trustee,  the
Indenture  Trustee,  the  Securities  Administrator,  the Master  Servicer,  any
Servicer and the Note  Registrar.  In lieu of such Opinion of Counsel,  a Person
acquiring a Class  [M][B]-[1][2][3] Note may provide a certification in the form
attached to the Indenture, which the Depositor, the Owner Trustee, the Indenture
Trustee,  the Note  Registrar  and the  Master  Servicer  may rely upon  without
further inquiry or investigation.

                                      A-3-5

<PAGE>

      No  transfer  of this Class  [M][B]-[1][2][3]  Note  (other than any Class
[M][B]-[1][2][3]  Note with  respect to which a "will be debt"  opinion has been
rendered by nationally  recognized  tax counsel and furnished to the  Securities
Administrator) or any interest therein shall be made to any Person, and the Note
Registrar  shall refuse to register  any such  transfer,  unless the  transferee
shall have delivered to the Owner Trustee,  the Note  Registrar,  the Securities
Administrator and the Indenture Trustee a certificate  certifying that (i) it is
a real estate  investment trust ("REIT") within the meaning of Section 856(a) of
the Code,  a qualified  REIT  subsidiary  ("QRS")  within the meaning of Section
856(i) of the Code, or an entity  disregarded as an entity  separate from a REIT
or a QRS and (ii)  following the  transfer,  100% of the  Subordinate  Notes and
Trust  Certificates  (other than any Subordinate Notes that are characterized as
indebtedness for federal income tax purposes) will be owned by a REIT,  directly
or indirectly  through one or more  qualified QRSs of such single REIT or one or
more  entities  disregarded  as entities  separate  from such REIT or such QRSs;
provided  that (x) this  Class  [M][B]-[1][2][3]  Note may be  pledged to secure
indebtedness and may be the subject of repurchase  agreements treated as secured
indebtedness   for   federal   income   tax   purposes,   and  (y)  this   Class
[M][B]-[1][2][3]  Note may be  transferred  by the related lender under any such
related loan  agreement or  repurchase  agreement  upon a default under any such
indebtedness,  in which case the transferor shall deliver to the Note Registrar,
the  Securities  Administrator,  the Owner Trustee and the  Indenture  Trustee a
certificate certifying to such effect.

      As provided in the  Indenture and subject to certain  limitations  therein
set forth,  the transfer of this Note may be  registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer  pursuant to the Indenture,  accompanied by proper  instruments of
assignment in form satisfactory to the Securities Administrator, one or more new
Notes of any authorized  denominations  and of a like aggregate then outstanding
Note  Principal  Balance,  will  be  issued  to  the  designated  transferee  or
transferees.

      Prior to the due  presentment  for  registration of transfer of this Note,
the Issuer, the Indenture Trustee, the Securities Administrator and any agent of
the Issuer, the Securities  Administrator or the Indenture Trustee may treat the
Person in whose  name this Note is  registered  as the owner of such Note (i) on
the  applicable  Record Date for the purpose of making  payments and interest of
such Note, and (ii) on any other date for all other purposes whatsoever,  as the
owner hereof,  whether or not this Note be overdue,  and none of the Issuer, the
Securities  Administrator,  the  Indenture  Trustee  nor any  such  agent of the
Issuer, the Securities  Administrator or the Indenture Trustee shall be affected
by notice to the contrary.

      The Indenture permits,  with certain  exceptions as therein provided,  the
amendment  thereof and the  modification  of the rights and  obligations  of the
Issuer and the rights of the  Holders of the Notes  under the  Indenture  at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions  permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes,  to waive any past Event of Default  and its  consequences  except an
Event of Default (a) with  respect to payment of principal of or interest on any
of the Notes,  or (b) in respect of a covenant  or  provision  of the  Indenture
which  cannot be modified  or amended  without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof,  of this
Note (or any one or more predecessor  Notes) shall bind the Holder of every Note

                                      A-3-6

<PAGE>

issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof,  whether  or not  notation  of such  consent or waiver is made upon such
Note.  The  Indenture  also permits the Issuer,  the  Indenture  Trustee and the
Securities  Administrator,  following  prior notice to the Rating  Agencies,  to
amend or waive certain terms and conditions  set forth in the Indenture  without
the consent of the Holders of the Notes issued thereunder.

      The Notes are  exchangeable  for a like  aggregate then  outstanding  Note
Principal Balance of Notes of different authorized  denominations,  as requested
by the Holder surrendering same.

      Unless the Certificate of  Authentication  hereon has been executed by the
Securities Administrator by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

      Anything  herein to the  contrary  notwithstanding,  except  as  expressly
provided in the Basic  Documents,  neither the Owner  Trustee in its  individual
capacity, nor any of its respective partners,  beneficiaries,  agents, officers,
directors,  employees, or successors or assigns, shall be personally liable for,
nor shall  recourse be had to any of them for,  the payment of  principal  of or
interest on, or  performance  of, or omission to perform,  any of the covenants,
obligations  or  indemnifications  contained  in this Note,  it being  expressly
understood that said covenants,  obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that,  except as expressly  provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any  deficiency,  loss or  claim  therefrom;  provided,  however,  that  nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust  Estate  for any and all  liabilities,  obligations  and
undertakings contained in this Note.

      AS PROVIDED IN THE  INDENTURE,  THIS NOTE AND THE INDENTURE  CREATING THIS
NOTE SHALL BE CONSTRUED  IN  ACCORDANCE  WITH,  AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

                                      A-3-7

<PAGE>

      IN WITNESS  WHEREOF,  the Issuer has  caused  this  instrument  to be duly
executed.

Dated: August 31, 2005

                                        MERRILL LYNCH MORTGAGE  INVESTORS TRUST,
                                        SERIES 2005-2

                                        BY:     WILMINGTON TRUST COMPANY,
                                                not in its  individual  capacity
                                                but  solely in its  capacity  as
                                                Owner Trustee

                                        By:     ________________________________
                                                Authorized Signatory

            SECURITIES ADMINISTRATOR'S CERTIFICATE OF AUTHENTICATION

      This  is  one of  the  Class  [M][B]-[1][2][3]  Notes  referred  to in the
within-mentioned Indenture.

                                        WELLS FARGO BANK, N.A.,
                                        as Securities Administrator

                                        BY:     ________________________________
                                                Authorized Signatory

                                      A-3-8

<PAGE>

                                  ABBREVIATIONS

      The following  abbreviations,  when used in the inscription on the face of
the Note,  shall be construed as though they were written out in full  according
to applicable laws or regulations:

         TEN COM              --      as tenants in common

         TEN ENT              --      as tenants by the entireties

          JT TEN              --      as   joint    tenants    with   right   of
                                      survivorship and not as tenants in common

    UNIF GIFT MIN ACT         --      __________ Custodian

                                      __________________________________________
                                              (Cust)               (Minor)

                                      under Uniform Gifts to Minor Act
                                      __________________________________________
                                                        (State)

Additional abbreviations may also be used though not in the above list.

                                      A-3-9

<PAGE>

                                   ASSIGNMENT

      FOR VALUE RECEIVED,  the undersigned  hereby sells,  assigns and transfers
unto PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

                ________________________________________________

                ________________________________________________

                ________________________________________________
 (Please print or typewrite name and address, including zip code, of assignee)

________________________________________________________________________________
the within Note and all rights thereunder,  and hereby  irrevocably  constitutes
and  appoints  ________________________  attorney to  transfer  said Note on the
books kept for  registration  thereof,  with full power of  substitution  in the
premises.

Dated:

Signature Guaranteed by   __________________________________________

      NOTICE:  The signature(s) to this assignment must correspond with the name
as it appears  upon the face of the  within  Note in every  particular,  without
alteration  or  enlargement  or any  change  whatsoever.  Signature(s)  must  be
guaranteed  by a  commercial  bank or by a  member  firm of the New  York  Stock
Exchange  or  another  national  securities  exchange.  Notarized  or  witnessed
signatures are not acceptable.

                                     A-3-10

<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                             (Provided Upon Request)

                                       B-1

<PAGE>

                                    EXHIBIT C

                  [FORM OF RULE 144A INVESTMENT REPRESENTATION]

             Description of Rule 144A Securities, including numbers:

                       ___________________________________

                       ___________________________________

                       ___________________________________

                       ___________________________________

      The undersigned  seller, as registered  holder (the "Seller"),  intends to
transfer the Rule 144A Securities  described above to the undersigned buyer (the
"Buyer").

            1. In  connection  with such  transfer  and in  accordance  with the
agreements  pursuant to which the Rule 144A Securities  were issued,  the Seller
hereby  certifies the following  facts:  Neither the Seller nor anyone acting on
its behalf has offered, transferred,  pledged, sold or otherwise disposed of the
Rule 144A  Securities,  any  interest in the Rule 144A  Securities  or any other
similar security to, or solicited any offer to buy or accept a transfer,  pledge
or other disposition of the Rule 144A Securities,  any interest in the Rule 144A
Securities  or any other  similar  security  from,  or otherwise  approached  or
negotiated  with respect to the Rule 144A  Securities,  any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general  solicitation  by means of general  advertising or in any other
manner,  or taken any other action,  that would constitute a distribution of the
Rule 144A  Securities  under the  Securities  Act of 1933, as amended (the "1933
Act"),  or that  would  render the  disposition  of the Rule 144A  Securities  a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or  another  "qualified  institutional  buyer" as defined in Rule
144A under the 1933 Act.

            2. The Buyer  warrants and  represents  to, and covenants  with, the
Indenture  Trustee pursuant to Section 4.02 of the Indenture (the  "Indenture"),
dated as of August 31, 2005,  among  Merrill  Lynch  Mortgage  Investors  Trust,
Series  2005-2,   as  Issuer,   and  Wells  Fargo  Bank,   N.A.,  as  Securities
Administrator and HSBC Bank USA, National Association,  as Indenture Trustee, as
follows:

            a. The Buyer understands that the Rule 144A Securities have not been
      registered under the 1933 Act or the securities laws of any state.

            b. The  Buyer   considers   itself  a  substantial,   sophisticated
      institutional  investor  having such knowledge and experience in financial
      and business matters that it is capable of evaluating the merits and risks
      of investment in the Rule 144A Securities.

                                       C-1

<PAGE>

            c. The Buyer has been furnished with all  information  regarding the
      Rule 144A Securities that it has requested from the Seller,  the Indenture
      Trustee, the Owner Trustee or the Master Servicer.

            d. Neither the Buyer nor anyone  acting on its behalf has  offered,
      transferred,  pledged,  sold  or  otherwise  disposed  of  the  Rule  144A
      Securities,  any interest in the Rule 144A Securities or any other similar
      security to, or solicited any offer to buy or accept a transfer, pledge or
      other  disposition of the Rule 144A  Securities,  any interest in the Rule
      144A  Securities  or  any  other  similar   security  from,  or  otherwise
      approached or  negotiated  with respect to the Rule 144A  Securities,  any
      interest in the Rule 144A  Securities or any other similar  security with,
      any person in any  manner,  or made any general  solicitation  by means of
      general  advertising  or in any other  manner,  or taken any other action,
      that would constitute a distribution of the Rule 144A Securities under the
      1933 Act or that would render the  disposition of the Rule 144A Securities
      a violation of Section 5 of the 1933 Act or require registration  pursuant
      thereto,  nor will it act, nor has it  authorized or will it authorize any
      person to act, in such manner with respect to the Rule 144A Securities.

            e. The Buyer is a  "qualified  institutional  buyer" as that term is
      defined  in Rule 144A under the 1933 Act and has  completed  either of the
      forms of  certification to that effect attached hereto as Annex 1 or Annex
      2. The Buyer is aware  that the sale to it is being  made in  reliance  on
      Rule 144A.  The Buyer is acquiring  the Rule 144A  Securities  for its own
      account  or  the  accounts  of  other  qualified   institutional   buyers,
      understands  that such Rule 144A  Securities  may be  resold,  pledged  or
      transferred  only (i) to a person  reasonably  believed  to be a qualified
      institutional  buyer that purchases for its own account or for the account
      of a  qualified  institutional  buyer to whom  notice  is  given  that the
      resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
      pursuant to another exemption from registration under the 1933 Act.

            3. The Buyer  warrants and  represents  to, and covenants  with, the
Seller, the Indenture Trustee, Owner Trustee, the Certificate Registrar,  Master
Servicer  and the  Depositor  that  either (1) the Buyer is (A) not an  employee
benefit  plan  (within the meaning of Section  3(3) of the  Employee  Retirement
Income  Security  Act of 1974,  as amended  ("ERISA")),  or a plan  (within  the
meaning of Section  4975(e)(1) of the Internal  Revenue Code of 1986  ("Code")),
which (in either  case) is subject to ERISA or Section  4975 of the Code (both a
"Plan"),  and  (B) is not  directly  or  indirectly  purchasing  the  Rule  144A
Securities  on behalf of, as  investment  manager of, as named  fiduciary of, as
trustee of, or with "plan assets" of a Plan, or (2) the Buyer  understands  that
registration  of transfer  of any Rule 144A  Securities  to any Plan,  or to any
Person acting on behalf of any Plan,  will not be made unless such Plan delivers
an  opinion  of its  counsel,  addressed  and  satisfactory  to the  Certificate
Registrar, the Owner Trustee, the Indenture Trustee, the Master Servicer and the
Depositor,  to the  effect  that the  purchase  and  holding  of the  Rule  144A
Securities  by, on behalf of or with "plan  assets"  of any Plan is  permissible
under applicable law, would not constitute or result in a prohibited transaction
under ERISA or Section  4975 of the Code,  and would not subject the  Depositor,
the Owner  Trustee,  the Indenture  Trustee,  the  Certificate  Registrar or the
Master  Servicer to any  obligation or liability  (including  liabilities  under
ERISA or Section 4975 of the Code) in addition to those undertaken in the

                                       C-2

<PAGE>

Agreement,  which Opinion of Counsel  shall not be an expense of the  Depositor,
the Owner  Trustee,  the Indenture  Trustee,  the  Certificate  Registrar or the
Master Servicer.

            4. This document may be executed in one or more  counterparts and by
the different  parties hereto on separate  counterparts,  each of which, when so
executed, shall be deemed to be an original; such counterparts,  together, shall
constitute one and the same document.

      IN WITNESS  WHEREOF,  each of the parties has executed this document as of
the date set forth below.

_____________________________                _____________________________
Print Name of Seller                         Print Name of Buyer

By:  _________________________________  By:  _____________________________
     Name:                                   Name:
     Title:                                  Title:

Taxpayer Identification:                     Taxpayer Identification:

No:  _________________________________  No:  _____________________________

Date:_________________________________  Date:_____________________________

                                       C-3

<PAGE>

                                                            ANNEX 1 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

      The  undersigned  hereby  certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

            1. As indicated  below,  the  undersigned  is the  President,  Chief
Financial  Officer,  Senior Vice  President  or other  executive  officer of the
Buyer.

            2. In  connection  with  purchases  by the  Buyer,  the  Buyer  is a
"qualified  institutional  buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested
on a  discretionary  basis  $_________(1) in securities  (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

_____ Corporation,  etc. The Buyer is a corporation  (other than a bank, savings
      and loan  association or similar  institution),  Massachusetts  or similar
      business  trust,  partnership,  or  charitable  organization  described in
      Section 501(c)(3) of the Internal Revenue Code.

_____ Bank.  The Buyer (a) is a national bank or banking  institution  organized
      under the laws of any State,  territory or the  District of Columbia,  the
      business of which is  substantially  confined to banking and is supervised
      by the State or territorial banking commission or similar official or is a
      foreign bank or equivalent  institution,  and (b) has an audited net worth
      of at least  $25,000,000 as  demonstrated  in its latest annual  financial
      statements.

_____ Savings  and  Loan.  The  Buyer  (a) is a  savings  and loan  association,
      building and loan association,  cooperative bank, homestead association or
      similar  institution,  which  is  supervised  and  examined  by a State or
      Federal  authority having  supervision over any such  institutions or is a
      foreign savings and loan association or equivalent institution and (b) has
      an audited net worth of at least $25,000,000 as demonstrated in its latest
      annual financial statements.

_____ Broker-Dealer.  The Buyer is a dealer registered pursuant to Section 15 of
      the Securities Exchange Act of 1934.

_____ Insurance  Company.  The Buyer is an insurance  company  whose primary and
      predominant   business  activity  is  the  writing  of  insurance  or  the
      reinsuring  of risks  underwritten  by  insurance  companies  and which is
      subject to supervision by the insurance commissioner or a similar official
      or agency of a State or territory or the District of Columbia.

----------
(1) Buyer must own and/or invest on a discretionary  basis at least $100,000,000
in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities.

                                    Ax.1-C-1

<PAGE>

_____ State or Local Plan. The Buyer is a plan  established  and maintained by a
      State, its political subdivisions, or any agency or instrumentality of the
      State or its political subdivisions, for the benefit of its employees.

_____ ERISA Plan.  The Buyer is an employee  benefit  plan within the meaning of
      Title I of the Employee Retirement Income Security Act of 1974.

_____ Investment  Adviser.  The Buyer is an investment  adviser registered under
      the Investment Advisers Act of 1940.

_____ SBIC. The Buyer is a Small  Business  Investment  Company  licensed by the
      U.S.  Small  Business  Administration  under Section  301(c) or (d) of the
      Small Business Investment Act of 1958.

_____ Business  Development Company. The Buyer is a business development company
      as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

_____ Trust  Fund.  The Buyer is a trust fund  whose  trustee is a bank or trust
      company and whose  participants are exclusively (a) plans  established and
      maintained  by a State,  its  political  subdivisions,  or any  agency  or
      instrumentality  of the  State  or its  political  subdivisions,  for  the
      benefit of its employees, or (b) employee benefit plans within the meaning
      of Title I of the Employee  Retirement Income Security Act of 1974, but is
      not a trust  fund that  includes  as  participants  individual  retirement
      accounts or H.R. 10 plans.

            3.  The term  "securities"  as used  herein  does  not  include  (i)
securities of issuers that are affiliated  with the Buyer,  (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer,  (iii) bank  deposit  Notes and  certificates  of  deposit,  (iv) loan
participations,  (v) repurchase agreements, (vi) securities owned but subject to
a repurchase agreement and (vii) currency, interest rate and commodity swaps.

            4. For purposes of  determining  the aggregate  amount of securities
owned and/or invested on a discretionary  basis by the Buyer, the Buyer used the
cost of such  securities to the Buyer and did not include any of the  securities
referred to in the preceding  paragraph.  Further, in determining such aggregate
amount,  the Buyer may have included  securities  owned by  subsidiaries  of the
Buyer,  but only if such  subsidiaries  are  consolidated  with the Buyer in its
financial  statements  prepared in accordance with generally accepted accounting
principles  and if the  investments of such  subsidiaries  are managed under the
Buyer's direction.  However, such securities were not included if the Buyer is a
majority-owned,  consolidated  subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

            5. The Buyer  acknowledges  that it is  familiar  with Rule 144A and
understands  that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements  made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

                                    Ax.1-C-2

<PAGE>

________    _________  Will the Buyer be purchasing the Rule 144A Securities
  Yes          No      only for the Buyer's own account?

      6. If the answer to the foregoing question is "no", the Buyer agrees
that,  in connection  with any purchase of securities  sold to the Buyer for the
account of a third party  (including  any separate  account) in reliance on Rule
144A,  the Buyer will only purchase for the account of a third party that at the
time is a "qualified  institutional  buyer"  within the meaning of Rule 144A. In
addition,  the Buyer  agrees that the Buyer will not purchase  securities  for a
third party unless the Buyer has obtained a current  representation  letter from
such third party or taken other appropriate  steps  contemplated by Rule 144A to
conclude that such third party  independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

            7.  The  Buyer  will  notify  each  of the  parties  to  which  this
certification is made of any changes in the information and conclusions  herein.
Until such notice is given,  the Buyer's  purchase of Rule 144A  Securities will
constitute  a  reaffirmation  of  this  certification  as of the  date  of  such
purchase.

                                       ___________________________________
                                       Print Name of Buyer

                                       By: ________________________________
                                           Name
                                           Title
                                           Date:

                                    Ax.1-C-3

<PAGE>

                                                            ANNEX 2 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

      The  undersigned  hereby  certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

      1. As indicated below,  the undersigned is the President,  Chief Financial
Officer or Senior Vice  President  of the Buyer or, if the Buyer is a "qualified
institutional  buyer" as that term is defined in Rule 144A under the  Securities
Act of 1933  ("Rule  144A")  because  Buyer  is part of a Family  of  Investment
Companies (as defined below), is such an officer of the Adviser.

      2. In  connection  with  purchases  by Buyer,  the  Buyer is a  "qualified
institutional  buyer" as  defined in SEC Rule 144A  because  (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least  $100,000,000 in securities  (other than the excluded  securities
referred to below) as of the end of the Buyer's  most recent  fiscal  year.  For
purposes  of  determining  the  amount of  securities  owned by the Buyer or the
Buyer's Family of Investment Companies, the cost of such securities was used.

_____ The  Buyer  owned  $___________________  in  securities  (other  than  the
      excluded  securities  referred to below) as of the end of the Buyer's most
      recent fiscal year (such amount being  calculated in accordance  with Rule
      144A).

_____ The Buyer is part of a Family of Investment  Companies  which owned in the
      aggregate $ in securities (other than the excluded  securities referred to
      below) as of the end of the Buyer's  most recent  fiscal year (such amount
      being calculated in accordance with Rule 144A).

      3. The term "Family of  Investment  Companies" as used herein means two or
more  registered  investment  companies  (or series  thereof) that have the same
investment  adviser or  investment  advisers that are  affiliated  (by virtue of
being majority owned  subsidiaries  of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

      4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated  with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) bank deposit Notes and certificates of deposit, (iii)
loan  participations,  (iv)  repurchase  agreements,  (v)  securities  owned but
subject to a repurchase agreement and (vi) currency, interest rate and commodity
swaps.

      5. The Buyer is familiar with Rule 144A and  understands  that each of the
parties to which this  certification  is made are relying  and will  continue to
rely on the  statements  made herein because one or more sales to the Buyer will
be in reliance on Rule 144A.  In addition,  the Buyer will only purchase for the
Buyer's own account.

                                    Ax.2-C-1

<PAGE>

      6.  The  undersigned  will  notify  each  of the  parties  to  which  this
certification is made of any changes in the information and conclusions  herein.
Until such notice,  the Buyer's purchase of Rule 144A Securities will constitute
a reaffirmation of this  certification by the undersigned as of the date of such
purchase.

                                       ___________________________________
                                       Print Name of Buyer

                                       By: _______________________________
                                           Name
                                           Title

                                       IF AN ADVISER:

                                       ___________________________________
                                       Print Name of Buyer

                                       Date: _____________________________

                                    Ax.2-C-2

<PAGE>

                                    EXHIBIT D

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                     [DATE]

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890-0001

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

      Re:   Merrill  Lynch  Mortgage  Investors  Trust,  Mortgage-Backed  Notes,
            Series MLCC 2005-2, [Class X] [Class M] [Class B] (the "Notes")

Ladies and Gentlemen:

      In  connection  with our  acquisition  of the  above-captioned  Notes,  we
certify that (a) we understand that the Notes are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are  being  transferred  to  us  in  a  transaction  that  is  exempt  from  the
registration  requirements  of  the  Act  and  any  such  laws,  (b)  we  are an
"accredited  investor,"  as defined in Regulation D under the Act, and have such
knowledge and  experience in financial and business  matters that we are capable
of evaluating the merits and risks of investments in the Notes,  (c) we have had
the  opportunity  to ask  questions of and receive  answers  from the  Depositor
concerning  the  purchase of the Notes and all matters  relating  thereto or any
additional  information  deemed necessary to our decision to purchase the Notes,
(d) we are  not an  employee  benefit  plan  that  is  subject  to the  Employee
Retirement Income Security Act of 1974, as amended, or a plan that is subject to
Section 4975 of the Internal Revenue Code of 1986, as amended, nor are we acting
on  behalf  of any such plan or we have  delivered  an  opinion  of  counsel  as
required by the Indenture, (e) we are acquiring the Notes for investment for our
own account and not with a view to any  distribution  of such Notes (but without
prejudice to our right at all times to sell or otherwise dispose of the Notes in
accordance with clause (g) below), (f) we have not offered or sold any Notes to,
or solicited offers to buy any Notes from, any person,  or otherwise  approached
or negotiated  with any person with respect  thereto,  or taken any other action
which would  result in a violation  of Section 5 of the Act, and (h) we will not
sell,  transfer or otherwise dispose of any Notes unless (1) such sale, transfer
or other  disposition  is made pursuant to an effective  registration  statement
under  the  Act  or is  exempt  from  such  registration  requirements,  and  if
requested,  we will at our expense provide an Opinion of Counsel satisfactory to
the addressees of this certificate that such sale, transfer or other disposition
may be made  pursuant  to an  exemption  from  the  Act,  (2) the  purchaser  or
transferee  of such Note has executed  and  delivered  to you a  certificate  to
substantially  the same effect as this  certificate,  and (3) the  purchaser  or
transferee has otherwise  complied with any conditions for transfer set forth in
the Indenture.

                                       D-1

<PAGE>

                                       Very truly yours,

                                       [TRANSFEREE]

                                       By: _______________________________
                                               Authorized Officer

                                       D-2

<PAGE>

                                    EXHIBIT E

                             TRANSFEROR CERTIFICATE

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890-0001

HSBC Bank USA, National Association
Corporate Trust & Loan Agency
452 Fifth Avenue
New York, New York  10018

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

      Re:   Proposed  Transfer  of [Class X] [Class M] [Class B]  Merrill  Lynch
            Mortgage Investors Trust, Series MLCC 2005-2

Gentlemen:

      This   certification   is   being   made  by   ____________________   (the
"Transferor") in connection with the proposed Transfer to  _____________________
(the  "Transferee") of the [Class A Notes][Class X Notes] [Class M Notes] [Class
B Notes] (the "Notes") issued pursuant to the Indenture,  dated August 31, 2005,
being  referred  to herein as the  "Indenture")  among  Merrill  Lynch  Mortgage
Investors Trust, Series 2005-2, as issuer, Wells Fargo Bank, N.A., as securities
administrator and HSBC Bank USA, National  Association as indenture trustee (the
"Indenture").  Initially  capitalized terms used but not defined herein have the
meanings  assigned to them in the Indenture.  The Transferor  hereby  certifies,
represents  and  warrants  to, and  covenants  with,  the Owner  Trustee and the
Indenture Trustee that:

      Neither the  Transferor  nor anyone  acting on its behalf has (a) offered,
pledged,  sold,  disposed of or otherwise  transferred any Note, any interest in
any Note or any other  similar  security  to any person in any  manner,  (b) has
solicited any offer to buy or to accept a pledge,  disposition or other transfer
of any Note,  any interest in any Note or any other  similar  security  from any
person in any manner, (c) has otherwise approached or negotiated with respect to
any Note, any interest in any Note or any other similar security with any person
in any  manner,  (d) has  made any  general  solicitation  by  means of  general
advertising or in any other manner, or (e) has taken any other action,  that (as
to any of (a) through (e) above) would  constitute a  distribution  of the Notes
under the Securities Act of 1933 (the "Act"),  that would render the disposition
of any Note a violation of Section 5 of the Act or any state  securities law, or
that  would  require   registration  or  qualification   pursuant  thereto.  The
Transferor  will not act in any manner set forth in the foregoing  sentence with
respect  to any  Note.  The  Transferor  has not and will not sell or  otherwise
transfer  any of the Notes,  except in  compliance  with the  provisions  of the
Indenture.

                                       E-1

<PAGE>

Date: _____________________            ______________________________
                                            Authorized Officer

                                       ______________________________
                                                 Signature

                                       ______________________________
                                                   Name

                                       ______________________________
                                                   Title

                                       E-2

<PAGE>

                                    EXHIBIT F

                         FORM OF TRANSFEREE CERTIFICATE

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890-0001

HSBC Bank USA, National Association
Corporate Trust & Loan Agency
452 Fifth Avenue
New York, New York  10018

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

      Re:   Proposed  Transfer of [Class A] [Class X] [Class M] [Class B] Notes,
            Merrill Lynch Mortgage Investors Trust, Series MLCC 2005-2

Gentlemen:

      This  certification  is being  made by  _________  (the  "Transferee")  in
connection with the proposed  transfer (the "Transfer") by _________ of a [Class
X] [Class M] [Class B] Note issued pursuant to the Indenture, dated as of August
31, 2005 (the "Indenture"), among Merrill Lynch Mortgage Investors Trust, Series
2005-2,  as issuer,  Wells Fargo Bank,  N.A., as securities  administrator  (the
"Securities  Administrator"),  and  HSBC  Bank  USA,  National  Association,  as
indenture trustee (the "Indenture  Trustee").  Initially  capitalized terms used
but not defined herein have the meanings assigned to them in the Indenture.  The
Transferee hereby certifies, represents and warrants to, and covenants with, the
Owner  Trustee,  the  Note  Registrar,  the  Securities  Administrator  and  the
Indenture Trustee that:

      (a) The Transferee is a REIT or a QRS within the meaning of Section 856(a)
or Section  856(i) of the Code or an entity  disregarded  as an entity  separate
from a REIT or a QRS.

      (b) Following the Transfer, 100% of the Certificates and Subordinate Notes
(other than any Subordinate Notes with respect to which a "will be debt" opinion
has been  rendered by  nationally  recognized  tax counsel and  furnished to the
Securities Administrator) will be owned by a single REIT, directly or indirectly
through  one or more QRSs of such REIT or one or more  entities  disregarded  as
entities separate from such REIT or such QRSs.

                                       F-1

<PAGE>

Date: _____________________            ______________________________
                                            Authorized Officer

                                       ______________________________
                                                 Signature

                                       ______________________________
                                                   Name

                                       ______________________________
                                                   Title

                                       F-2

<PAGE>

                                    EXHIBIT G

                         FORM OF TRANSFEROR CERTIFICATE

Wilmington Trust Company, as Owner Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890-0001

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

HSBC Bank USA, National Association
Corporate Trust & Loan Agency
452 Fifth Avenue
New York, New York  10018

      Re:   Proposed  Transfer of [Class A] [Class X] [Class M] [Class B] Notes,
            Merrill  Lynch  Mortgage  Investors  Trust,  Series MLCC 2005-2 (the
            "Notes")

Gentlemen:

      This certification is being made by  _________________  (the "Transferor")
in connection with the proposed transfer or pledge by the Transferor of a [Class
A] [Class X] [Class M] [Class B] Note issued pursuant to the Indenture, dated as
of August 31, 2005 (the  "Indenture")  among  Merrill Lynch  Mortgage  Investors
Trust,  Series 2005-2, as issuer,  Wells Fargo Bank,  National  Association,  as
securities  administrator  (the "Securities  Administrator")  and HSBC Bank USA,
National Association, as indenture trustee (the "Indenture Trustee").  Initially
capitalized terms used but not defined herein have the meanings assigned to them
in the Indenture.  The Transferor hereby certifies,  represents and warrants to,
and  covenants  with,  the  Securities  Administrator,  the Owner  Trustee,  the
Indenture Trustee and the Note Registrar that:

      (a) The Class  [A][X][M][B]  Notes are being pledged by the  Transferor to
secure  indebtedness of  [___________]  or is the subject of a loan agreement or
repurchase   agreement  treated  by  the  Issuer  as  secured   indebtedness  of
[___________]  for federal income tax purposes as permitted under the Indenture;
or

      (b) The Class  [A][X][M][B]  Notes are being  transferred  by the  related
lender under a loan  agreement or repurchase  agreement upon a default under any
such indebtedness as permitted under the Indenture.

                                       G-1

<PAGE>

Date: _____________________            ______________________________
                                            Authorized Officer

                                       ______________________________
                                                 Signature

                                       ______________________________
                                                   Name

                                       ______________________________
                                                   Title

                                       G-2

<PAGE>

                                    EXHIBIT H

                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

                             (Provided Upon Request)

                                       H-1

<PAGE>

                                    EXHIBIT I

                        FORM OF TAX TRANSFER CERTIFICATE

Wilmington Trust Company
1100 North Market Street
Rodney Square North
Wilmington, Delaware 19890

HSBC Bank USA, National Association
Corporate Trust & Loan Agency
452 Fifth Avenue
New York, New York  10018

Wells Fargo Bank, N.A.
Sixth Street and Marquette Avenue
Minneapolis, Minnesota 55479

Re:      Proposed Transfer of Class [1][2][3]-A Notes,
         Merrill Lynch Mortgage Investors Trust, Series MLCC 2005-2____________

Ladies and Gentlemen:

      This   certification   is   being   made  by   ____________________   (the
"Transferor")   in   connection   with  the  proposed   sale   ("Transfer")   to
_____________________  (the  "Transferee")  of the Class  [1][2][3]-A  Note (the
"Senior Note") issued pursuant to an indenture, dated as of August 31, 2005 (the
"Indenture")  among Merrill Lynch Mortgage  Investors Trust,  Series 2005-2,  as
issuer (the "Issuer"),  Wells Fargo Bank, N.A., as securities administrator (the
"Securities   Administrator")  and  HSBC  Bank  USA,  National  Association,  as
indenture  trustee (the  "Indenture  Trustee").  Capitalized  terms used but not
defined  herein  have  the  meanings  assigned  to  them  in  Appendix  A to the
Indenture.  The  Transferor  hereby  certifies,  represents and warrants to, and
covenants  with,  the Issuer,  the  Securities  Administrator  and the Indenture
Trustee that:

      (1) Based on consultation with counsel,  no adverse changes have been made
to (or that would  adversely  affect the  application of) the Closing Date Legal
Authorities;

      (2) No modifications have been made to the Indenture as of the date hereof
(other than any modification for which an Opinion of Counsel was rendered to the
effect that such  modification  does not  materially  and  adversely  affect the
transfer restrictions with respect to the Senior Notes set forth in Section 4.02
of the Indenture);

      (3) The Rating Agencies'  respective ratings of the Senior Notes as of the
date  hereof  are not lower  than the  ratings  on such  Senior  Notes as of the
Closing Date; and

      (4) the sum of (x) the aggregate Note Principal Balance of the Subordinate
Notes as of the Payment Date on or immediately preceding the date hereof and (y)
the present  value as of the date hereof of the expected  total  cashflow on the
Class X Notes and the Owner Trust Certificates on future Distribution Dates plus
the expected interest cashflow on the Subordinate

                                      I-1
<PAGE>

Notes on future Distribution Dates plus the expected total cashflow on the Owner
Trust Certificates on future  Distribution Dates (such expected cashflow in each
case calculated  assuming no Realized Losses on the Mortgage Loans, a prepayment
assumption  equal to that used in  connection  with the  Transfer of such Senior
Notes, and the forward LIBOR curve in effect on the date hereof),  discounted at
ten  (10%)  percent  per  annum,  is at  least  equal  to 4.0% of the  aggregate
Outstanding  Principal Balance of the Outstanding  Mortgage Loans as of the date
hereof.

                                                     -------------------------
Date: __________________________                        Name of Transferor
                                                     -------------------------
                                                             Signature
                                                     -------------------------
                                                               Name
                                                     -------------------------
                                                               Title

                                      I-2
<PAGE>

                                   APPENDIX A
                                   DEFINITIONS

            Accepted Master  Servicing  Practices:  With respect to any Mortgage
Loan, those customary mortgage servicing practices of prudent mortgage servicing
institutions  that master service Mortgage Loans of the same type and quality as
such Mortgage Loan in the jurisdiction  where the related Mortgaged  Property is
located, to the extent applicable to the Master Servicer (except in its capacity
as successor to the Servicer).

            Account: The Master Servicer Collection Account, the Payment Account
and the Protected Account, as the context may require.

            Accrual Period:  With respect to the Notes and any Payment Date, the
calendar month preceding the month in which such Payment Date occurs.

            Accrued  Note  Interest:  With respect to any Class of Notes and any
Payment Date, the amount of interest  accrued during the related  Accrual Period
at the applicable  Note Interest Rate on the Note Principal  Balance or Notional
Amount of such Note immediately prior to such Payment Date, less (1) in the case
of a Senior Note, such Class's share of (a) Prepayment Interest  Shortfalls,  to
the extent not covered by Compensating  Interest paid by the related Servicer or
the Master  Servicer,  (b) interest  shortfalls  on the related  Mortgage  Loans
resulting  from the  application  of the Relief Act or similar state law and (c)
after the Cross-Over  Date, the interest  portion of any Realized  Losses on the
related  Mortgage Loans and (2) in the case of a Subordinate  Note, such Class's
share of (a) Prepayment Interest Shortfalls on the Mortgage Loans, to the extent
not covered by Compensating  Interest paid by the related Servicer or the Master
Servicer,  (b) interest  shortfalls  on the Mortgage  Loans  resulting  from the
application of the Relief Act or similar state law and (c) the interest  portion
of any Realized Losses on the Mortgage Loans. Prepayment Interest Shortfalls and
interest  shortfalls  resulting  from the  application of the Relief Act will be
allocated  among the Notes in  proportion to the amount of Accrued Note Interest
that  would have been  allocated  thereto  in the  absence  of such  shortfalls.
Accrued Note  Interest on the Notes will be calculated on the basis of a 360-day
year consisting of 30-day months.

            Additional  Collateral:  With respect to any  Additional  Collateral
Mortgage  Loan,  the meaning  assigned  thereto in the  Mortgage  Loan  Purchase
Agreement.

            Additional  Collateral  Mortgage Loan: Each Mortgage Loan identified
as such in the Mortgage Loan Schedule.

            Administration Agreement: The Administration Agreement,  dated as of
August 31, 2005,  among the Issuer,  the  Depositor,  the Owner  Trustee and the
Securities Administrator.

            Adjustment  Date: As to each Mortgage  Loan,  each date set forth in
the related  Mortgage  Note on which an  adjustment to the interest rate on such
Mortgage Loan becomes effective.

            Affiliate: With respect to any Person, any other Person controlling,
controlled  by or under common  control  with such Person.  For purposes of this
definition, "control" means the

<PAGE>

power to direct the management and policies of a Person, directly or indirectly,
whether  through  ownership of voting  securities,  by contract or otherwise and
"controlling" and "controlled" shall have meanings correlative to the foregoing.

            Aggregate Master Servicing  Compensation:  For any Payment Date, any
investment income on funds on deposit in the Master Servicer  Collection Account
that is payable to the Master Servicer on such Payment Date pursuant to the Sale
and Servicing Agreement.

            Allocable  Share:  With  respect  to each Class of Class M Notes and
Class B Notes:

            (a) as to any  Payment  Date and amounts  distributable  pursuant to
clauses (i) and (iv) of the definition of Subordinate  Optimal Principal Amount,
the  fraction,  expressed as a  percentage,  the  numerator of which is the Note
Principal  Balance of such Class and the  denominator  of which is the aggregate
Note Principal Balance of all Classes of Class M Notes and Class B Notes; and

            (b) as to any  Payment  Date and amounts  distributable  pursuant to
clauses (ii), (iii) and (v) of the definition of Subordinate  Optimal  Principal
Amount and as to each Class of Class M Notes and Class B Notes  (other  than the
Class of Class M Notes and Class B Notes having the lowest numerical designation
as to which the Class Prepayment  Distribution  Trigger shall not be applicable)
for  which  (x) the  related  Class  Prepayment  Distribution  Trigger  has been
satisfied on such Payment  Date,  the fraction,  expressed as a percentage,  the
numerator  of  which  is the  Note  Principal  Balance  of  such  Class  and the
denominator of which is the aggregate of the Note Principal Balances of all such
Classes of Subordinate  Notes and (y) the related Class Prepayment  Distribution
Trigger has not been satisfied on such Payment Date,  0%;  provided that if on a
Payment Date, the Note Principal Balance of any Class of Class M Notes and Class
B Notes  for  which  the  related  Class  Prepayment  Distribution  Trigger  was
satisfied  on such  Payment  Date is reduced to zero,  any  amounts  distributed
pursuant to this clause (b), to the extent of such Class's  remaining  Allocable
Share,  shall be distributed to the remaining  Class or Classes of Class M Notes
and Class B Notes  which  satisfy  the  related  Class  Prepayment  Distribution
Trigger and to the Class B-3,  Class B-2,  Class B-1,  Class M-3,  Class M-2 and
Class M-1 Notes, in that order, in reduction of their  respective Note Principal
Balances.

            Allocated Realized Loss Amount:  With respect to any of the Class A,
Class X, Class M and Class B Notes and any Payment  Date, an amount equal to the
sum of any Realized  Loss  allocated to that Class of Notes on that Payment Date
and any Allocated  Realized Loss Amount for that Class remaining unpaid from the
previous  Payment Date, in each case,  with interest  thereon at the  applicable
Note Interest Rate for such Payment Date for such Class for the related  Accrual
Period.

            Applicable Credit Rating:  For any long-term deposit or security,  a
credit rating of AAA from S&P. For any short-term deposit or security,  a rating
of A-1+ from S&P.

            Appraised  Value:  For any Mortgaged  Property related to a Mortgage
Loan, the amount set forth as the appraised value of such Mortgaged  Property in
an appraisal made for the mortgage originator in connection with its origination
of the related Mortgage Loan.

                                       2

<PAGE>

            Assignment  Agreements:  The agreements attached as Exhibit D to the
Sale and  Servicing  Agreement,  whereby the  related  Servicing  Agreement  was
assigned to the Issuer for the benefit of the Noteholders.

            Assignment  of  Mortgage:  An  assignment  of  Mortgage,  notice  of
transfer or equivalent instrument, in recordable form, which is sufficient under
the laws of the jurisdiction  wherein the related Mortgaged  Property is located
to reflect  of record  the sale of the  Mortgage,  which  assignment,  notice of
transfer  or  equivalent  instrument  may be in the form of one or more  blanket
assignments  covering  Mortgages secured by Mortgaged  Properties located in the
same county, if permitted by law.

            Authorized  Newspaper:  A newspaper  of general  circulation  in the
Borough of Manhattan,  The City of New York, printed in the English language and
customarily  published  on  each  Business  Day,  whether  or not  published  on
Saturdays, Sundays or holidays.

            Authorized  Officer:  With respect to the Issuer, any officer of the
Owner Trustee who is authorized to act for the Owner Trustee in matters relating
to the Issuer and who is identified on the list of Authorized Officers delivered
by the Owner Trustee to the Indenture  Trustee and Securities  Administrator  on
the Closing Date (as such list may be modified or supplemented from time to time
thereafter).

            Available  Funds:  With respect to any Payment Date,  the sum of the
Group I Available Funds,  Group II Available Funds and Group III Available Funds
for such Payment Date.

            Available Funds Rate: With respect to any Payment Date and the Class
1-A Notes, a per annum rate, expressed as a percentage, equal to a fraction, the
numerator  of which is the  Interest  Funds for Loan  Group I, for such  Payment
Date,  multiplied by 12, and the denominator of which is the aggregate Scheduled
Principal  Balance of the Mortgage  Loans in Loan Group I as of the beginning of
the  related  Due Period.  With  respect to any  Payment  Date and the Class 2-A
Notes,  a per annum rate,  expressed as a percentage,  equal to a fraction,  the
numerator  of which is the  Interest  Funds for Loan Group II, for such  Payment
Date,  multiplied by 12, and the denominator of which is the aggregate Scheduled
Principal  Balance of the Mortgage Loans in Loan Group II as of the beginning of
the  related  Due Period.  With  respect to any  Payment  Date and the Class 3-A
Notes,  a per annum rate,  expressed as a percentage,  equal to a fraction,  the
numerator  of which is the  Interest  Funds for Loan Group III, for such Payment
Date,  multiplied by 12, and the denominator of which is the aggregate Scheduled
Principal Balance of the Mortgage Loans in Loan Group III as of the beginning of
the related Due Period.

            Average Loss Severity Percentage:  With respect to any Payment Date,
the  percentage  equivalent of a fraction,  the numerator of which is the sum of
the Loss Severity  Percentages  for each Mortgage Loan which had a Realized Loss
and the  denominator of which is the number of Mortgage Loans which had Realized
Losses.

            Bankruptcy  Code: The United States  Bankruptcy  Code, as amended as
codified in 11 U.S.C. Sections 101-1330.

                                       3

<PAGE>

            Bankruptcy  Loss:  With respect to any Mortgage  Loan, any Deficient
Valuation or Debt Service Reduction related to such Mortgage Loan as reported by
the Servicer to the Master Servicer.

            Basic Documents: The Sale and Servicing Agreement, the PHH Servicing
Agreement,  the  Wells  Fargo  Servicing  Agreement,  the  Indenture,  the Trust
Agreement, the Mortgage Loan Purchase Agreement, the Custodial Agreement and the
Administration  Agreement and the other documents and certificates  delivered in
connection with any of the above.

            Basis Risk  Shortfall:  With respect to any Class of Senior Notes on
each Payment Date where the related  Accrued Note  Interest is calculated at the
Available  Funds Rate,  the excess,  if any, of (x) the  aggregate  Accrued Note
Interest  thereon for such Payment Date calculated  pursuant to clause (a)(i) or
(b)(i) or (b)(ii) of the definition of "Note Interest Rate", as applicable,  for
such Payment Date over (y) interest accrued on the Mortgage Loans at the related
Available Funds Rate.

            Basis Risk Shortfall Carryover Amount: If on any Payment Date, the
Note Interest Rate of the Senior Notes are subject to their respective Available
Funds Rate,  such notes  become  entitled  to payment of an amount  equal to the
excess of the (i)  interest  accrued  at their  respective  Note  Interest  Rate
(without giving effect to the related Available Funds Rate) over (ii) the amount
of interest  received on such Notes based on the related  Available  Funds Rate,
together with the unpaid portion of any such excess from previous  Payment Dates
(and any interest  thereon at the then  applicable  Note  Interest  Rate without
giving effect to the related Available Funds Rate).

            Beneficial  Owner:  With respect to any Note,  the Person who is the
beneficial  owner of such Note as reflected on the books of the Depository or on
the books of a Person maintaining an account with such Depository (directly as a
Depository  Participant  or  indirectly  through a  Depository  Participant,  in
accordance with the rules of such Depository).

            Book-Entry Notes:  Beneficial  interests in the Class 1-A, Class 2-A
and Class 3-A Notes, ownership and transfers of which shall be made through book
entries by the Depository as described in the Indenture.

            Business Day: Any day other than (i) a Saturday or a Sunday, or (ii)
a day on which the New York Stock  Exchange  or Federal  Reserve is closed or on
which banking  institutions in the jurisdiction in which the Indenture  Trustee,
the Master Servicer, the Servicer or the Securities Administrator is located are
authorized or obligated by law or executive order to be closed.

            Certificate Paying Agent: Initially,  the Securities  Administrator,
in its capacity as  Certificate  Paying  Agent,  or any  successor to Securities
Administrator in such capacity.

            Certificate  Distribution  Account:  The account or accounts created
and  maintained  pursuant  to  Section  3.09(c)  of  the  Trust  Agreement.  The
Certificate Payment Account shall be an Eligible Account.

                                        4

<PAGE>

            Certificate   Percentage   Interest:   With  respect  to  the  Trust
Certificates and any date of determination, the percentage interest as stated on
the face of any Trust Certificate.

            Certificate  Register:  The register  maintained by the  Certificate
Registrar in which the Certificate  Registrar shall provide for the registration
of Certificates and of transfers and exchanges of Certificates.

            Certificate Registrar:  Initially, the Securities Administrator,  in
its  capacity as  Certificate  Registrar,  or any  successor  to the  Securities
Administrator in such capacity pursuant to the Trust Agreement.

            Certificate of Trust:  The  Certificate of Trust filed for the Trust
pursuant to Section 3810(a) of the Statutory Trust Statute.

            Certificates  or Trust  Certificates:  The  Merrill  Lynch  Mortgage
Investors  Trust  Certificates,  Series MLCC 2005-2,  evidencing  the beneficial
ownership  interest  in  the  Issuer  and  executed  by  the  Owner  Trustee  in
substantially the form set forth in Exhibit A to the Trust Agreement.

            Certificateholder:  The  Person  in  whose  name  a  Certificate  is
registered in the Certificate  Register.  Owners of Certificates  that have been
pledged in good faith may be regarded as Holders if the pledgee  establishes  to
the satisfaction of the Securities  Administrator  or the Owner Trustee,  as the
case may be, the pledgee's right so to act with respect to such Certificates and
that the pledgee is not the Issuer,  any other obligor upon the  Certificates or
any Affiliate of any of the foregoing Persons.

            Class: Any of the Class A, Class X, Class M or Class B Notes.

            Class A Notes:  The Class 1-A,  Class 2-A and Class 3-A Notes in the
form attached as Exhibit A-1 to the Indenture.

            Class B Notes:  The Class B-1,  Class B-2 and Class B-3 Notes in the
form attached as Exhibit A-3 to the Indenture.

            Class M Notes:  The Class M-1,  Class M-2 and Class M-3 Notes in the
form attached as Exhibit A-3 to the Indenture.

            Class X Notes: The Class X Notes in the form attached as Exhibit A-2
to the Indenture.

            Class Prepayment  Distribution Trigger: For a Class of Class M Notes
or Class B Notes for any Payment Date, the Class Prepayment Distribution Trigger
is satisfied if the fraction (expressed as a percentage), the numerator of which
is the aggregate Note Principal  Balance of such Class and each Class of Class M
Notes or Class B Notes subordinate  thereto,  if any, in each case,  immediately
preceding  such Payment  Date,  and the  denominator  of which is the  aggregate
Scheduled  Principal  Balance of the Mortgage  Loans as of the  beginning of the
related Due Date, equals or exceeds such percentage calculated as of the Closing
Date. If on any Payment Date the Note Principal  Balance of any Class or Classes
of Class M Notes or Class B

                                        5

<PAGE>

Notes for which the related Class Prepayment  Distribution Trigger was satisfied
on such Payment Date is reduced to zero, any amounts distributable to such Class
or  Classes  pursuant  to  clauses  (ii),  (iii)  and (v) of the  definition  of
"Subordinate  Optimal Principal Amount," to the extent of such Class's remaining
Allocable Share, shall be distributed to the remaining Class or Classes of Class
M Notes  or Class B Notes  in  reduction  of  their  respective  Note  Principal
Balances,  sequentially,  Class B-3,  Class B-2, Class B-1, Class M-3, Class M-2
and Class M-1 Notes, in that order.

            Closing Date: August 31, 2005.

            Closing  Date  Legal   Authorities:   The  existing   provisions  of
applicable law and regulations issued or proposed thereunder,  published rulings
and releases of applicable  agencies or other  governmental  bodies and existing
case law upon which the tax opinions of Thacher Proffitt & Wood LLP are based.

            Code: The Internal  Revenue Code of 1986, as amended,  and the rules
and regulations promulgated thereunder.

            Collateral:  The meaning  specified  in the  Granting  Clause of the
Indenture.

            Commission: The Securities and Exchange Commission.

            Compensating  Interest  Payment:  As defined in Section  3.21 of the
Sale and  Servicing  Agreement  with  respect to  amounts  payable by the Master
Servicer,  and any amounts in respect of Interest Shortfalls required to be paid
by the related Servicer pursuant to the related Servicing Agreement.

            Corporate Trust Office:  With respect to the Indenture Trustee,  the
principal  corporate  trust  office  of the  Indenture  Trustee  at which at any
particular time its corporate trust business shall be administered, which office
at the date of the  execution  of this  instrument  is located at HSBC Bank USA,
National Association, Corporate Trust & Loan Agency, 425 Fifth Avenue, New York,
New York 10018. With respect to the Owner Trustee, the principal corporate trust
office of the Owner Trustee at which at any particular  time its corporate trust
business  shall be  administered,  which office at the date of the  execution of
this Trust  Agreement is located at  Wilmington  Trust  Company,  Rodney  Square
North, 1100 North Market Street, Wilmington, Delaware 19890. With respect to the
Securities  Administrator,  Certificate  Registrar,  Note  Registrar  and Paying
Agent,  the Corporate  Trust Office of the Note  Registrar  and the  Certificate
Registrar  for  purposes  of  presentment  and  surrender  of the  Notes and the
Certificates  for the final payment or distribution  thereon and for transfer is
located at Sixth Street and  Marquette  Avenue,  Minneapolis,  Minnesota  55479,
Attention:  Merrill Lynch Mortgage Investors Trust,  Series MLCC 2005-2, and for
all other purposes is located at P.O. Box 98, Columbia,  Maryland 21046 (or, for
overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland, 21045), Attn:
Merrill Lynch Mortgage Investors Trust, Series MLCC 2005-2, or any other address
that the Securities  Administrator  may designate from time to time by notice to
the Noteholders and the Certificateholders.

                                        6

<PAGE>

            Cross-Over  Date: The first Payment Date on which the aggregate Note
Principal  Balance of the Class B Notes has been  reduced to zero (after  giving
effect to all distributions on such Payment Date).

            Custodial Agreement: The custodial agreement, dated as of August 31,
2005,  among the  Issuer,  the  Depositor,  the  Indenture  Trustee,  the Master
Servicer and the  Custodian,  relating to the Merrill Lynch  Mortgage  Investors
Trust, Mortgage-Backed Notes, Series MLCC 2005-2.

            Custodian: Wells Fargo Bank, N.A., and its successors and assigns.

            Cut-off Date: With respect to the Mortgage Loans, August 1, 2005.

            Cut-off Date Balance: $1,220,525,429.03.

            Cut-off Date Principal  Balance:  With respect to any Mortgage Loan,
the unpaid  principal  balance thereof as of the Cut-off Date after applying the
principal portion of Monthly Payments due on or before such date, whether or not
received, and without regard to any payments due after such date.

            Debt Service  Reduction:  Any  reduction of the  Scheduled  Payments
which a  Mortgagor  is  obligated  to pay with  respect to a Mortgage  Loan as a
result of any proceeding  under the  Bankruptcy  Code or any other similar state
law or other proceeding.

            Default: Any occurrence which is or with notice or the lapse of time
or both would become an Event of Default.

            Deficient Valuation:  With respect to any Mortgage Loan, a valuation
of the Mortgaged Property by a court of competent jurisdiction in an amount less
than the then outstanding  indebtedness under the Mortgage Loan, which valuation
results  from a  proceeding  initiated  under the  Bankruptcy  Code or any other
similar state law or other proceeding.

            Definitive  Notes:  The  meaning  specified  in Section  4.08 of the
Indenture.

            Deleted  Mortgage  Loan: A Mortgage  Loan replaced or to be replaced
with a Substitute Mortgage Loan.

            Depositor:  Merrill  Lynch  Mortgage  Investors,  Inc.,  a  Delaware
corporation, or its successor in interest.

            Depository:  The Depository  Trust Company,  the nominee of which is
Cede & Co., or any successor thereto.

            Depository  Participant:  A Person for whom,  from time to time, the
Depository effects book-entry transfers and pledges of securities deposited with
the Depository.

            Designated   Depository   Institution:   A  depository   institution
(commercial bank,  federal savings bank, mutual savings bank or savings and loan
association)  or trust company

                                        7

<PAGE>

(which may  include  the  Indenture  Trustee),  the  deposits of which are fully
insured by the FDIC to the extent provided by law.

            Determination  Date:  With respect to any Payment Date, the 15th day
of the related  month,  or if the 15th day of such month is not a Business  Day,
the immediately preceding Business Day.

            Due Date:  With respect to each Mortgage  Loan, the day of the month
on which each scheduled Monthly Payment is due.

            Due Period: With respect to any Payment Date and the Mortgage Loans,
the period commencing on the second day of the month  immediately  preceding the
month of such  Payment Date (or,  with respect to the first Due Period,  the day
following  the  Cut-off  Date) and  ending on the first day of the month of such
Payment Date.

            Eligible  Account:  An  account  that is any of the  following:  (i)
maintained  with a depository  institution  the short-term  debt  obligations of
which have been  rated by each  Rating  Agency in its  highest  rating  category
available,  or (ii) an account or accounts in a depository  institution in which
such accounts are fully insured to the limits established by the FDIC,  provided
that any deposits not so insured shall, to the extent  acceptable to each Rating
Agency,  as evidenced in writing,  be  maintained  such that (as evidenced by an
Opinion of Counsel  delivered to the Indenture  Trustee and each Rating  Agency)
the Indenture  Trustee have a claim with respect to the funds in such account or
a perfected first priority security interest against any collateral (which shall
be limited to  Permitted  Investments)  securing  such funds that is superior to
claims of any other  depositors or creditors of the depository  institution with
which such account is  maintained,  or (iii) in the case of the Master  Servicer
Collection  Account and the Payment  Account,  a trust account or accounts (or a
sub-account  of such)  maintained in the corporate  trust division of the Master
Servicer  or  Securities  Administrator,  or (iv) an  account or  accounts  of a
depository institution acceptable to each Rating Agency (as evidenced in writing
by each  Rating  Agency  that use of any such  account  as the  Master  Servicer
Collection Account or the Payment Account will not reduce the rating assigned to
any of the Notes by such  Rating  Agency as of the  Closing  Date by such Rating
Agency).

            ERISA:  The Employee  Retirement  Income  Security  Act of 1974,  as
amended.

            Event of  Default:  With  respect to the  Indenture,  any one of the
following  events  (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment,  decree or order of any court or any order,  rule or regulation
of any administrative or governmental body):

            (i)   a failure by the Issuer to pay  Accrued  Note  Interest on the
Class 1-A,  Class 2-A and Class 3-A Notes on any Payment  Date and such  default
shall continue for a period of five days; or

            (ii)  the failure by the Issuer on the Final Scheduled  Payment Date
to pay all Accrued Note Interest of any Class A Notes,  all remaining Basis Risk
Shortfall  Carryover

                                        8

<PAGE>

Amounts to any of the Class A Notes and to reduce the Note Principal Balances of
any Class of Class A Notes to zero; or

            (iii) there occurs a default in the observance or performance of any
covenant or agreement of the Issuer made in the Indenture, or any representation
or warranty of the Issuer made in the Indenture or in any  certificate  or other
writing delivered pursuant hereto or in connection herewith proving to have been
incorrect in any  material  respect as of the time when the same shall have been
made, and such default shall continue or not be cured,  or the  circumstance  or
condition  in respect of which such  representation  or warranty  was  incorrect
shall not have been eliminated or otherwise cured, for a period of 30 days after
there shall have been given,  by registered or certified  mail, to the Issuer by
the Indenture  Trustee or to the Issuer and the Indenture Trustee by the Holders
of at least 25% of the  aggregate  Note  Principal  Balance  of the  Outstanding
Notes, a written notice  specifying such default or incorrect  representation or
warranty  and  requiring  it to be remedied  and  stating  that such notice is a
notice of default hereunder; or

            (iv)  there  occurs  the filing of a decree or order for relief by a
court  having  jurisdiction  in the  premises  in  respect  of the Issuer or any
substantial part of the Trust Estate in an involuntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in
effect,  or appointing a receiver,  liquidator,  assignee,  custodian,  trustee,
sequestrator or similar  official of the Issuer or for any  substantial  part of
the Trust  Estate,  or ordering the  winding-up or  liquidation  of the Issuer's
affairs,  and such decree or order  shall  remain  unstayed  and in effect for a
period of 60 consecutive days; or

            (v)   there  occurs the  commencement  by the Issuer of a  voluntary
case under any  applicable  federal  or state  bankruptcy,  insolvency  or other
similar  law now or  hereafter  in effect,  or the  consent by the Issuer to the
entry of an order for relief in an  involuntary  case under any such law, or the
consent by the Issuer to the  appointment  or taking  possession  by a receiver,
liquidator,  assignee,  custodian,  trustee, sequestrator or similar official of
the Issuer or for any substantial part of the assets of the Trust Estate, or the
making by the Issuer of any general assignment for the benefit of creditors,  or
the failure by the Issuer  generally  to pay its debts as such debts become due,
or the  taking  of  any  action  by  the  Issuer  in  furtherance  of any of the
foregoing.

            Event of  Servicer  Termination:  The  occurrence  of an  event,  as
defined in the related Servicing Agreement, permitting termination or removal of
the related Servicer thereunder as servicer of the Mortgage Loans.

            Excess Liquidation  Proceeds:  To the extent that such amount is not
required by law to be paid to the  related  Mortgagor,  the  amount,  if any, by
which Liquidation Proceeds with respect to a Liquidated Mortgage Loan exceed the
sum of (i) the Outstanding  Principal  Balance of such Mortgage Loan and accrued
but unpaid interest at the related  Mortgage  Interest Rate through the last day
of the  month in  which  the  related  Liquidation  Date  occurs,  (ii)  related
Liquidation Expenses (including Liquidation Expenses which are payable therefrom
to the related  Servicer or the Master  Servicer in accordance  with the related
Servicing  Agreement or Sale and  Servicing  Agreement)  and (iii)  unreimbursed
advances by the related Servicer or the Master Servicer and Monthly Advances.

                                        9

<PAGE>

            Exchange Act: The Securities  Exchange Act of 1934, as amended,  and
the rules and regulations promulgated thereunder.

            Expenses:  The  meaning  specified  in  Section  7.02  of the  Trust
Agreement.

            Expiration Notice: The notice to be delivered by the Master Servicer
to the related Servicer (pursuant to the related Servicing  Agreement),  stating
that it has received notice from the Certificate Registrar that (i) the Investor
no longer holds all of the Certificates and Privately  Offered Notes or (ii) the
Investor  has  forfeited  its rights set forth in  Section  4.02 of the  related
Servicing Agreement.

            Fannie Mae:  Fannie Mae  (formerly,  the Federal  National  Mortgage
Association), or any successor thereto.

            FDIC:  The Federal  Deposit  Insurance  Corporation or any successor
thereto.

            Final  Certification:  The  final  certification  delivered  by  the
Custodian  pursuant to Section  2.3(c) of the  Custodial  Agreement  in the form
attached thereto as Exhibit Three.

            Final Scheduled  Payment Date:  With respect to each Class of Notes,
the Payment Date in October 2035.

            Foreclosure  Notice:  The  notice  to be  delivered  by the  related
Servicer to the Master Servicer (pursuant to the related Servicing Agreement) no
later  than  five  Business  Days  prior  to  the  Servicer's   commencement  of
foreclosure  proceedings  with respect to a Mortgage  Loan,  of its intention to
commence such foreclosure proceedings.

            Freddie Mac:  Freddie Mac (formerly,  the Federal Home Loan Mortgage
Corporation), or any successor thereto.

            Grant: Pledge,  bargain, sell, warrant,  alienate,  remise, release,
convey, assign, transfer,  create, and grant a lien upon and a security interest
in and right of set-off against,  deposit,  set over and confirm pursuant to the
Indenture.  A Grant of the  Collateral  or of any other  agreement or instrument
shall include all rights,  powers and options (but none of the  obligations)  of
the granting party  thereunder,  including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments
in respect of such  collateral or other  agreement or  instrument  and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other  agreements,  to exercise  all rights and  options,  to
bring proceedings in the name of the granting party or otherwise,  and generally
to do and receive  anything that the granting  party is or may be entitled to do
or receive thereunder or with respect thereto.

            Gross Margin:  As to each Mortgage  Loan,  the fixed  percentage set
forth in the related  Mortgage  Note and indicated on the Mortgage Loan Schedule
which percentage is added to the related Index on each Interest  Adjustment Date
to determine  (subject to rounding,  the minimum and maximum  Mortgage  Interest
Rate and the  Periodic  Rate  Cap) the  Mortgage  Interest  Rate  until the next
Interest Adjustment Date.

                                       10

<PAGE>

            Group I, Group II or Group III Available Funds: For any Payment Date
with respect to each Loan Group, the related Interest Funds, the Principal Funds
and any amounts transferred from the related Interest Coverage Account.

            Group I Cut-off Date  Balance:  The  aggregate  Scheduled  Principal
Balance of Loan Group I as of the Cut-off Date.

            Group II Cut-off Date  Balance:  The aggregate  Scheduled  Principal
Balance of the Loan Group II as of the Cut-off Date.

            Group III Cut-off Date Balance:  The aggregate  Scheduled  Principal
Balance of the Loan Group III as of the Cut-off Date.

            Group I, Group II or Group III Interest  Funds:  The Interest  Funds
for such Loan Group for any Payment Date.

            Group I, Group II or Group III Principal  Funds: The Principal Funds
for such Loan Group for any Payment Date.

            Group I Senior Notes: Any of the Class 1-A Notes.

            Group II Senior Notes: Any of the Class 2-A Notes.

            Group III Senior Notes: Any of the Class 3-A Notes.

            Group I Senior  Optimal  Principal  Amount,  Group II Senior Optimal
Principal Amount or Group III Senior Optimal Principal  Amount:  With respect to
each Payment Date and the related group of Senior Notes,  an amount equal to the
sum,  without  duplication,  of the following  (but in no event greater than the
aggregate Note Principal  Balance of the related Senior Notes  immediately prior
to such Payment Date):

            (1)   the applicable  Senior  Percentage of the principal portion of
all Monthly Payments due on each  Outstanding  Mortgage Loan in the related Loan
Group on the related Due Date as specified in the  amortization  schedule at the
time applicable thereto (after  adjustments for previous  Principal  Prepayments
but  before  any  adjustment  to such  amortization  schedule  by  reason of any
bankruptcy or similar  proceeding or any  moratorium or similar  waiver or grace
period);

            (2)   the applicable Senior  Prepayment  Percentage of the Scheduled
Principal  Balance of each Mortgage Loan in the related Loan Group which was the
subject of a Principal  Prepayment  in full  received  by the  related  Servicer
during the related Prepayment Period;

            (3) the  applicable  Senior  Prepayment  Percentage of all Principal
Prepayments  in  part  received  by the  related  Servicer  during  the  related
Prepayment Period with respect to each Mortgage Loan in the related Loan Group;

            (4) the lesser of (a) the applicable Senior Prepayment Percentage of
the sum of (i) all Net Liquidation  Proceeds  allocable to principal received in
respect of each Mortgage Loan in

                                       11

<PAGE>

the  related  Loan Group  which  became a  Liquidated  Mortgage  Loan during the
related   Prepayment   Period  (other  than  Mortgage  Loans  described  in  the
immediately  following  clause (ii)) and all Subsequent  Recoveries  received in
respect of each Liquidated  Mortgage Loan during the related Due Period and (ii)
the  Scheduled  Principal  Balance of each such  Mortgage  Loan  purchased by an
insurer from the Indenture Trustee during the related Prepayment Period pursuant
to the related Primary Mortgage Insurance Policy, if any, or otherwise;  and (b)
the  applicable  Senior  Percentage  of the sum of (i) the  Scheduled  Principal
Balance  of  each  Mortgage  Loan in the  related  Loan  Group  which  became  a
Liquidated  Mortgage Loan during the related  Prepayment  Period (other than the
Mortgage  Loans  described  in the  immediately  following  clause (ii)) and all
Subsequent  Recoveries  received  in respect of each  Liquidated  Mortgage  Loan
during the related Due Period and (ii) the Scheduled  Principal  Balance of each
such  Mortgage  Loan in the related Loan Group that was  purchased by an insurer
from the Indenture Trustee during the related  Prepayment Period pursuant to the
related Primary Mortgage Insurance Policy, if any or otherwise; and

            (5) the applicable  Senior  Prepayment  Percentage of the sum of (a)
the Scheduled  Principal Balance of each Mortgage Loan in the related Loan Group
which was repurchased by the Seller in connection with such Payment Date and (b)
the excess,  if any, of the Scheduled  Principal Balance of a Mortgage Loan that
in the  related  Loan Group has been  replaced  by the Seller  with an  Eligible
Substitute  Mortgage Loan  pursuant to the Mortgage  Loan Purchase  Agreement in
connection with such Payment Date over the Scheduled  Principal  Balance of such
Eligible Substitute Mortgage Loan.

            Group I Senior Percentage:  With respect to Loan Group I, the lesser
of (a) 100% and (b) the  percentage  obtained by  dividing  the  aggregate  Note
Principal  Balance of the Group I Senior Notes immediately prior to such Payment
Date, by the aggregate Scheduled Principal Balance of the Mortgage Loans in Loan
Group I as of the  beginning  of the  related Due  Period.  The  initial  Senior
Percentage for Loan Group I will be equal to approximately 96.65%.

            Group II Senior  Percentage:  With  respect  to Loan  Group II,  the
lesser of (a) 100% and (b) the  percentage  obtained by dividing  the  aggregate
Note Principal  Balance of the Group II Senior Notes  immediately  prior to such
Payment Date, by the aggregate Scheduled Principal Balance of the Mortgage Loans
in Loan Group II as of the  beginning  of the related  Due  Period.  The initial
Senior Percentage for Loan Group II will be equal to approximately 96.65%.

            Group III Senior  Percentage:  With  respect to Loan Group III,  the
lesser of (a) 100% and (b) the  percentage  obtained by dividing  the  aggregate
Note Principal  Balance of the Group III Senior Notes  immediately prior to such
Payment Date, by the aggregate Scheduled Principal Balance of the Mortgage Loans
in Loan Group III as of the  beginning  of the related  Due Period.  The initial
Senior Percentage for Loan Group III will be equal to approximately 96.65%.

            Group I Senior  Prepayment  Percentage,  Group II Senior  Prepayment
Percentage or Group III Senior Prepayment Percentage:  With respect to the Group
I Senior  Notes,  Group II Senior Notes or Group III Senior Notes on any Payment
Date occurring during the periods set forth below, as follows:

                                       12

<PAGE>

Period (dates inclusive)               Senior Prepayment Percentage
--------------------------------------------------------------------------------
September 25, 2005 - August 25, 2012   100%
September 25, 2012 - August 25, 2013   related Senior Percentage plus 70% of the
                                       related Subordinate Percentage
September 25, 2013 - August 25, 2014   related Senior Percentage plus 60% of the
                                       related Subordinate Percentage
September 25, 2014 - August 25, 2015   related Senior Percentage plus 40% of the
                                       related Subordinate Percentage
September 25, 2015 - August 25, 2016   related Senior Percentage plus 20% of the
                                       related Subordinate Percentage
September 25, 2016 and thereafter      related Senior Percentage

            Any scheduled reduction to the Senior Prepayment  Percentage for the
related Senior Notes shall not be made as of any Payment Date unless,  as of the
last day of the month  preceding  such Payment Date (1) the aggregate  Scheduled
Principal  Balance of the Mortgage Loans  delinquent 60 days or more  (including
for this purpose any such Mortgage Loans in foreclosure  and bankruptcy and such
Mortgage  Loans with  respect to which the related  mortgaged  property has been
acquired by the Trust) averaged over the last six months, as a percentage of the
aggregate Note Principal  Balance of the  Subordinate  Notes does not exceed 50%
and (2) cumulative  Realized  Losses on the Mortgage Loans do not exceed (a) 30%
of the aggregate Note Principal  Balance of the Original  Subordinate  Principal
Balance if such Payment Date occurs  between and  including  September  2012 and
August  2013,  (b) 35% of the  Original  Subordinate  Principal  Balance if such
Payment Date occurs  between and including  September  2013 and August 2014, (c)
40% of the Original  Subordinate  Principal  Balance if such Payment Date occurs
between and including  September  2014 and August 2015,  (d) 45% of the Original
Subordinate  Principal Balance if such Payment Date occurs between and including
September  2015  and  August  2016,  and  (e)  50% of the  Original  Subordinate
Principal Balance if such Payment Date occurs during or after September 2016.

            In addition,  if on any Payment Date the current weighted average of
the  Subordinate  Percentages is equal to or greater than two times the weighted
average of the initial Subordinate Percentages,  and (a) the aggregate Scheduled
Principal  Balance of the Mortgage Loans  delinquent 60 days or more  (including
for this purpose any such Mortgage Loans in foreclosure  and bankruptcy and such
Mortgage  Loans with  respect to which the related  mortgaged  property has been
acquired by the Trust),  averaged  over the last six months,  as a percentage of
the aggregate Note Principal  Balance of the  Subordinate  Notes does not exceed
50% and (b)(i) on or prior to the Payment  Date  occurring  in  September  2008,
cumulative  Realized  Losses on the Mortgage  Loans as of the end of the related
Prepayment  Period  do not  exceed  20% of the  Original  Subordinate  Principal
Balance and (ii) after the Payment Date occurring in September 2008,  cumulative
Realized  Losses on the Mortgage  Loans as of the end of the related  Prepayment
Period do not exceed 30% of the Original Subordinate Principal Balance, then, in
each case,  the Senior  Prepayment  Percentage  for the related Senior Notes for
such Payment Date will equal the related  Senior  Percentage for such Classes of
Senior Notes;  provided,  however,  if on such Payment Date the current weighted
average of the Subordinate Percentages is equal to or greater than two times the
weighted  average  of the  initial  Subordinate

                                       13

<PAGE>

Percentages  on or prior to the Payment Date occurring in September 2008 and the
above delinquency and loss tests are met, then the Senior Prepayment  Percentage
for the  related  Senior  Notes for such  Payment  Date,  will  equal the Senior
Percentage for such Classes of Senior Notes plus 50% of the related  Subordinate
Percentage on such Payment Date.

            Notwithstanding   the  foregoing,   if  on  any  Payment  Date,  the
percentage,  the numerator of which is the aggregate Note  Principal  Balance of
the related  Senior  Notes  immediately  preceding  such Payment  Date,  and the
denominator  of  which  is the  aggregate  Scheduled  Principal  Balance  of the
Mortgage  Loans in the related Loan Group as of the beginning of the related Due
Period,  exceeds such percentage as of the Cut-off Date, then the related Senior
Prepayment  Percentage  for the related  Senior Notes for such Payment Date will
equal 100%.

            Holder:  Any  Certificateholder  or any  Noteholder,  as the context
requires.

            Indemnified  Party:  The meaning  specified  in Section  7.02 of the
Trust Agreement.

            Indenture:  The  indenture,  dated as of August 31, 2005,  among the
Issuer, the Indenture Trustee and the Securities Administrator,  relating to the
Merrill Lynch  Mortgage  Investors  Trust,  Mortgage-Backed  Notes,  Series MLCC
2005-2.

            Indenture  Trustee:  HSBC Bank USA,  National  Association,  and its
successors and assigns or any successor  indenture trustee appointed pursuant to
the terms of the Indenture.

            Independent:  When used with respect to any  specified  Person,  the
Person (i) is in fact independent of the Issuer, any other obligor on the Notes,
the Seller,  the Master Servicer,  the Depositor and any Affiliate of any of the
foregoing  Persons,  (ii) does not have any  direct  financial  interest  or any
material indirect financial interest in the Issuer, any such other obligor,  the
Seller,  the Master  Servicer,  the  Depositor  or any  Affiliate  of any of the
foregoing  Persons and (iii) is not  connected  with the Issuer,  any such other
obligor, the Seller, the Master Servicer,  the Depositor or any Affiliate of any
of  the  foregoing  Persons  as an  officer,  employee,  promoter,  underwriter,
trustee, partner, director or person performing similar functions.

            Independent Certificate: A certificate or opinion to be delivered to
the  Indenture  Trustee  under the  circumstances  described  in, and  otherwise
complying  with, the applicable  requirements of Section 10.01 of the Indenture,
made by an independent  appraiser or other expert appointed by an Issuer Request
and approved by the Indenture  Trustee in the exercise of reasonable  care,  and
such opinion or certificate  shall state that the signer has read the definition
of "Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

            Index: The index, if any,  specified in a Mortgage Note by reference
to which the related Mortgage Interest Rate will be adjusted from time to time.

            Initial  Certification:  The initial certification  delivered by the
Custodian  pursuant to Section  2.3(a) of the  Custodial  Agreement  in the form
attached thereto as Exhibit One.

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<PAGE>

            Initial Note Principal Balance: With respect to the Class 1-A Notes,
$745,957,000, with respect to the Class 2-A Notes, $221,254,000, with respect to
the  Class 3-A  Notes,  $212,425,000,  with  respect  to the  Class  M-1  Notes,
$17,697,000,  with respect to the Class M-2 Notes,  $8,543,000,  with respect to
the  Class  M-3  Notes,  $5,492,000,  with  respect  to  the  Class  B-1  Notes,
$3,051,000, with respect to the Class B-2 Notes, $1,830,000, and with respect to
the Class B-3 Notes, $4,276,429.03.

            Initial  Notional  Amount:  With  respect  to  the  Class  X  Notes,
$1,179,636,000.

            Initial Transfer: With respect to a Senior Note or Privately Offered
Note, the initial transfer of such Senior Note or Privately  Offered Note (other
than a  pledge  of  such  Senior  Note  or  Privately  Offered  Note  to  secure
indebtedness  or the  transfer  of such Senior Note or  Privately  Offered  Note
pursuant to a repurchase  agreement treated as secured  indebtedness for federal
income tax  purposes)  by a REIT which is the owner,  directly or through one or
more QRSs or  disregarded  entities of 100% of all  Certificates  and all Senior
Notes and  Privately  Offered Notes other than those with respect to which a Tax
Transfer  Certificate or "will be debt" opinion  previously was furnished to the
Securities Administrator, in connection with which a Tax Transfer Certificate or
"will be debt" opinion is furnished to the Securities  Administrator;  provided,
that,  if a REIT which is the  owner,  directly  or through  one or more QRSs or
entities disregarded as entities separate from such REIT or QRSs, of 100% of all
Certificates  and all Senior Notes and Privately  Offered Notes other than those
with  respect  to which a Tax  Transfer  Certificate  or "will be debt"  opinion
previously  was furnished to the  Securities  Administrator  reacquires any such
Senior Note or Privately  Offered Note, then the initial transfer of such Senior
Note or Privately  Offered Note by such REIT after such  reacquisition  shall be
treated as an Initial Transfer requiring a new Tax Transfer Certificate or "will
be debt" opinion and not as a Subsequent  Transfer;  provided,  further, for the
avoidance of doubt,  that if Notes are  transferred  to any Person in a transfer
with  respect  to which a  certificate  substantially  in the form of  Exhibit F
hereto is required to be delivered to the Securities  Administrator  and certain
other parties,  then (1) such transfer of such Notes to such Person shall not be
treated as an Initial  Transfer  or a  Subsequent  Transfer  and (2) the initial
transfer of any Senior Note or  Privately  Offered  Note (other than a pledge of
such  Senior  Note or  Privately  Offered  Note to  secure  indebtedness  or the
transfer of such Senior Note or Privately  Offered Note pursuant to a repurchase
agreement  treated as secured  indebtedness  for federal income tax purposes) by
such Person shall be treated as an Initial Transfer requiring a new Tax Transfer
Certificate or "will be debt" opinion and not as a Subsequent Transfer.

            Insurance  Policy:  With respect to any Mortgage  Loan, any standard
hazard insurance policy, flood insurance policy or title insurance policy.

            Insurance Proceeds:  Amounts paid by the insurer under any Insurance
Policy  covering any  Mortgage  Loan or  Mortgaged  Property  other than amounts
required  to be  paid  over  to the  Mortgagor  pursuant  to law or the  related
Mortgage  Note or Security  Instrument  and other than amounts used to repair or
restore the Mortgaged Property or to reimburse insured expenses.

            Interest Adjustment Date: With respect to a Mortgage Loan, the date,
if any,  specified in the related  Mortgage Note on which the Mortgage  Interest
Rate is subject to adjustment.

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<PAGE>

            Interest  Determination  Date:  With  respect  the  Class  1-A Notes
commencing  on the Payment Date in June 2010,  the second  Business Day prior to
the beginning of the related  Interest Accrual Period.  Any subsequent  Interest
Determination  Date for the Class 1-A Notes shall be the second  LIBOR  Business
Day prior to the sixth Interest Accrual Period following the preceding  Interest
Determination  Date for such Class of Notes. With respect to the Class 2-A Notes
commencing  on the  Payment  Date in July  2010,  the last  Business  Day of the
related Interest Accrual Period. Any subsequent Interest  Determination Date for
the  Class 2-A  Notes  shall be the  second  Business  Day prior to the  twelfth
Interest Accrual Period following the preceding Interest  Determination Date for
such Class of Notes.  Any  Interest  Determination  Date for the Class 3-A Notes
shall be the second  LIBOR  Business Day prior to the related  Interest  Accrual
Period  following the preceding  Interest  Determination  Date for such Class of
Notes.

            Interest Funds: With respect to each Loan Group and any Payment Date
(i) the sum,  without  duplication,  of (a) all  scheduled  interest  during the
related Due Period with respect to the related Mortgage Loans less the Servicing
Fee, (b) all Advances  relating to interest with respect to the related Mortgage
Loans  made on or  prior  to the  related  Payment  Date,  (c) all  Compensating
Interest with respect to the related  Mortgage Loans and required to be remitted
by the Master  Servicer  pursuant to this Agreement with respect to such Payment
Date, (d)  Liquidation  Proceeds and Subsequent  Recoveries  with respect to the
related  Mortgage Loans collected during the related  Prepayment  Period (to the
extent such Liquidation Proceeds and Subsequent  Recoveries relate to interest),
and (e) all amounts  relating to interest  with respect to each Mortgage Loan in
such Loan Group  repurchased by the Seller pursuant to Sections 2.02 and 2.03 of
the Sale and  Servicing  Agreement,  in each case to the extent  remitted by the
Master  Servicer  to the  Payment  Account  pursuant  to the Sale and  Servicing
Agreement,  minus (ii) all amounts required to be reimbursed or paid pursuant to
the  Indenture or as otherwise  set forth in any Basic  Document,  to the extent
related to such Loan Group (or, if such  reimbursement or payment not related to
a Loan  Group,  then such  Loan  Group's  pro rata  share  (based  on  aggregate
Scheduled Principal Balance) of such reimbursement or payment).

            Interest  Shortfall:  With  respect  to any  Payment  Date  and each
Mortgage  Loan that  during the related  Prepayment  Period was the subject of a
Principal  Prepayment  or  constitutes  a Relief Act  Mortgage  Loan,  an amount
determined as follows:

            (a)   Partial principal prepayments received during the relevant
Prepayment  Period:  The  difference  between  (i) one  month's  interest at the
applicable  Net Rate on the  amount of such  prepayment  and (ii) the  amount of
interest for the calendar month of such  prepayment  (adjusted to the applicable
Net Rate) received at the time of such prepayment;

            (b)   Principal  prepayments  in full  received  during the relevant
Prepayment  Period:  The  difference  between  (i) one  month's  interest at the
applicable  Net Rate on the  Scheduled  Principal  Balance of such Mortgage Loan
immediately  prior to such  prepayment  and (ii) the amount of interest  for the
calendar month of such prepayment (adjusted to the applicable Net Rate) received
at the time of such prepayment; and

            (c)   Relief Act Mortgage Loans: As to any Relief Act Mortgage Loan,
the excess of (i) 30 days'  interest (or, in the case of a principal  prepayment
in full,  interest to the date of prepayment) on the Scheduled Principal Balance
thereof  (or, in the case of a principal

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<PAGE>

prepayment  in part, on the amount so prepaid) at the related Net Rate over (ii)
30 days' interest (or, in the case of a principal  prepayment in full,  interest
to the date of prepayment) on such Scheduled  Principal Balance (or, in the case
of a  Principal  Prepayment  in part,  on the amount so prepaid) at the Net Rate
required to be paid by the  Mortgagor  as limited by  application  of the Relief
Act.

            Interim  Certification:  The interim certification  delivered by the
Custodian  pursuant to Section  2.3(b) of the  Custodial  Agreement  in the form
attached thereto as Exhibit Two.

            Investment  Company  Act:  The  Investment  Company Act of 1940,  as
amended, and any amendments thereto.

            Investor: KKR Financial Corp.

            IRS: The Internal Revenue Service.

            Issuer:  Merrill Lynch Investors  Trust,  Series 2005-2,  a Delaware
statutory trust, or its successor in interest.

            Issuer Request: A written order or request signed in the name of the
Issuer by any one of its  Authorized  Officers and  delivered  to the  Indenture
Trustee.

            LIBOR  Business  Day: A day on which  banks are open for  dealing in
foreign currency and exchange in London and New York City.

            Lien:   Any   mortgage,   deed   of   trust,   pledge,   conveyance,
hypothecation, assignment, participation, deposit arrangement, encumbrance, lien
(statutory or other),  preference,  priority right or interest or other security
agreement  or  preferential  arrangement  of  any  kind  or  nature  whatsoever,
including,  without  limitation,  any conditional  sale or other title retention
agreement,  any financing lease having substantially the same economic effect as
any of the  foregoing and the filing of any  financing  statement  under the UCC
(other than any such financing statement filed for informational  purposes only)
or comparable law of any jurisdiction to evidence any of the foregoing.

            Liquidated  Mortgage  Loan:  With  respect to any  Payment  Date,  a
defaulted  Mortgage  Loan  that  has been  liquidated  through  deed-in-lieu  of
foreclosure,  foreclosure sale, indenture trustee's sale or other realization as
provided by applicable  law  governing the real property  subject to the related
Mortgage and any security  agreements  and as to which the related  Servicer has
certified in the related  Prepayment  Period that it has received all amounts it
expects to receive in connection with such liquidation.

            Liquidation Date: With respect to any Liquidated  Mortgage Loan, the
date on which the Master  Servicer or the related  Servicer has  certified  that
such Mortgage Loan has become a Liquidated Mortgage Loan.

            Liquidation   Expenses:   With   respect  to  a  Mortgage   Loan  in
liquidation, unreimbursed expenses paid or incurred by or for the account of the
Master  Servicer or the

                                       17

<PAGE>

related  Servicer in connection  with the  liquidation of such Mortgage Loan and
the related Mortgage Property,  such expenses including (a) property  protection
expenses, (b) property sales expenses, (c) foreclosure and sale costs, including
court costs and reasonable  attorneys' fees, and (d) similar expenses reasonably
paid or incurred in connection with liquidation.

            Liquidation   Proceeds:   Cash  received  in  connection   with  the
liquidation  of a defaulted  Mortgage  Loan,  whether  through  trustee's  sale,
foreclosure sale, Insurance Proceeds, condemnation proceeds or otherwise.

            Loan-to-Value   Ratio:  With  respect  to  any  Mortgage  Loan,  the
fraction,  expressed  as a  percentage,  the  numerator of which is the original
principal  balance of the related  Mortgage Loan and the denominator of which is
the Original Value of the related Mortgaged Property.

            Loan  Group:  Loan  Group I, Loan  Group II or Loan  Group  III,  as
applicable.

            Loan Group I: The group of Mortgage Loans designated as belonging
to Loan Group I on the Mortgage Loan Schedule.

            Loan Group II: The group of Mortgage  Loans  designated as belonging
to Loan Group II on the Mortgage Loan Schedule.

            Loan Group III: The group of Mortgage Loans  designated as belonging
to Loan Group III on the Mortgage Loan Schedule.

            Loss  Allocation  Limitation:  As defined in Section  3.24(c) of the
Indenture.

            Loss  Severity  Percentage:  With respect to any Payment  Date,  the
percentage  equivalent  of a fraction,  the  numerator of which is the amount of
Realized  Losses incurred on a Mortgage Loan and the denominator of which is the
Scheduled  Principal  Balance of such  Mortgage  Loan  immediately  prior to the
liquidation of such Mortgage Loan.

            Lost Notes:  The  original  Mortgage  Notes that have been lost,  as
indicated on the Mortgage Loan Schedule.

            Majority  Certificateholder:   A  Holder  of  a  50.01%  or  greater
Certificate Percentage Interest of the Trust Certificates.

            Master  Servicer:  Wells Fargo Bank,  N.A.,  and its  successors and
assigns.

            Master  Servicer  Certification:  A written  certification  covering
servicing of the Mortgage  Loans by the Servicer and signed by an officer of the
Master  Servicer  that  complies  with (i) the  Sarbanes-Oxley  Act of 2002,  as
amended from time to time, and (ii) the February 21, 2003 Statement by the Staff
of the Division of Corporation Finance of the Securities and Exchange Commission
Regarding  Compliance by Asset-Backed Issuers with Exchange Act Rules 13a-14 and
15d-14, as in effect from time to time; provided that if, after the Closing Date
(a) the Sarbanes-Oxley Act of 2002 is amended,  (b) the Statement referred to in
clause (ii) is modified  or  superseded  by any  subsequent  statement,  rule or
regulation  of the  Securities  and Exchange  Commission  or any  statement of a
division  thereof,  or (c)  any  future  releases,  rules

                                       18

<PAGE>

and  regulations  are published by the Securities and Exchange  Commission  from
time to time pursuant to the  Sarbanes-Oxley Act of 2002, which in any such case
affects the form or substance of the required  certification  and results in the
required certification being, in the reasonable judgment of the Master Servicer,
materially  more onerous than the form of the required  certification  as of the
Closing Date,  the Master  Servicer  Certification  shall be as agreed to by the
Master  Servicer  and the  Depositor  following a  negotiation  in good faith to
determine how to comply with any such new requirements.

            Master Servicer  Collection  Account:  The trust account or accounts
created  and  maintained  pursuant  to  Section  4.02 of the Sale and  Servicing
Agreement.  The Master Servicer  Collection Account shall be an Eligible Account
and maybe a sub-account of the Payment Account.

            Master Servicer Compensation: As defined in Section 3.13 of the Sale
and Servicing Agreement.

            Master Servicer Event of Default:  Has the meaning  assigned to such
term in Section 6.01 of the Sale and Servicing Agreement.

            Material  Defect:  The meaning  specified in Section  2.02(a) of the
Sale and Servicing Agreement.

            Maximum  Lifetime  Mortgage  Rate:  The  maximum  level  to  which a
Mortgage  Interest Rate can adjust in accordance  with its terms,  regardless of
changes in the applicable Index.

            MERS: Mortgage Electronic  Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.

            MERS(R)  System:  The system of  recording  transfers  of  Mortgages
electronically maintained by MERS.

            MIN:  The  Mortgage   Identification   Number  for  Mortgage   Loans
registered with MERS on the MERS(R) System.

            Minimum  Lifetime  Mortgage  Rate:  The  minimum  level  to  which a
Mortgage  Interest Rate can adjust in accordance  with its terms,  regardless of
changes in the applicable Index.

            MOM Loan:  With  respect to any  Mortgage  Loan,  MERS acting as the
mortgagee of such Mortgage  Loan,  solely as nominee for the  originator of such
Mortgage Loan and its successors and assigns, at the origination  thereof, or as
nominee for any subsequent  assignee of the originator pursuant to an assignment
of mortgage to MERS.

            Monthly Advance:  An advance of principal or interest required to be
made by the related Servicer pursuant to the related Servicing  Agreement or the
Master Servicer pursuant to the Sale and Servicing Agreement.

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<PAGE>

            Monthly  Payment:  With respect to any Mortgage Loan  (including any
REO  Property)  and any Due Date,  the payment of  principal  and  interest  due
thereon in  accordance  with the  amortization  schedule at the time  applicable
thereto (after  adjustment,  if any, for partial  Principal  Prepayments and for
Deficient  Valuations occurring prior to such Due Date but before any adjustment
to  such  amortization  schedule  by  reason  of any  bankruptcy,  other  than a
Deficient  Valuation,  or similar proceeding or any moratorium or similar waiver
or grace period).

            Moody's: Moody's Investors Service, Inc.

            Mortgage: The mortgage,  deed of trust or other instrument reflected
on the Mortgage Loan Schedule as securing a Mortgage Loan.

            Mortgage File: The file containing the Related Documents  pertaining
to a particular Mortgage Loan and any additional  documents required to be added
to the Mortgage File pursuant to the Indenture.

            Mortgage  Interest Rate:  The annual rate at which interest  accrues
from time to time on any Mortgage  Loan pursuant to the related  Mortgage  Note,
which rate is initially  equal to the  "Mortgage  Interest  Rate" set forth with
respect thereto on the Mortgage Loan Schedule.

            Mortgage Loan: A Mortgage Loan transferred and assigned to the Trust
pursuant to Section 2.01 or Section 2.04 of the Sale and Servicing Agreement, as
identified in the Mortgage Loan Schedule, including a Mortgage Loan the property
securing which has become an REO Property.

            Mortgage  Loan  Purchase  Agreement:   The  Mortgage  Loan  Purchase
Agreement,  dated as of August 31, 2005, between Merrill Lynch Mortgage Lending,
Inc., as seller,  and Merrill Lynch Mortgage  Investors,  as purchaser,  and all
amendments thereof and supplements  thereto,  attached to the Sale and Servicing
Agreement as Exhibit E.

            Mortgage Loan Schedule:  The schedule,  attached hereto as Exhibit B
with respect to the Mortgage Loans,  and as amended from time to time to reflect
the  repurchase or  substitution  of Mortgage Loans pursuant to the Indenture or
the Mortgage Loan Purchase Agreement, as the case may be.

            Mortgage Note: The originally executed note or other evidence of the
indebtedness of a Mortgagor under the related Mortgage Loan.

            Mortgaged Property:  Land and improvements securing the indebtedness
of a Mortgagor under the related  Mortgage Loan or, in the case of REO Property,
such REO Property.

            Mortgagor: The obligor on a Mortgage Note.

            Net  Collections:  With respect to any Liquidated  Mortgage Loan, an
amount  equal to all  payments  on account of  interest  and  principal  on such
Mortgage Loan.

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<PAGE>

            Net  Interest  Shortfall:  With  respect to any  Payment  Date,  the
Interest Shortfall,  if any, for such Payment Date net of Compensating  Interest
made with respect to such Payment Date.

            Net Liquidation  Proceeds:  With respect to any Liquidated  Mortgage
Loan,  Liquidation  Proceeds  and  Subsequent  Recoveries  net  of  unreimbursed
advances by the related  Servicer,  Monthly  Advances,  expenses incurred by the
related  Servicer in connection  with the  liquidation of such Mortgage Loan and
the related  Mortgaged  Property,  and any other amounts  payable to the related
Servicer under the related Servicing Agreement.

            Net Rate or Net  Mortgage  Rate:  For any  Mortgage  Loan,  the then
applicable Mortgage Rate thereon less the Servicing Fee Rate.

            Nonrecoverable Advance: Any advance or Monthly Advance (i) which was
previously made or is proposed to be made by the Master Servicer,  the Indenture
Trustee solely as successor  Master  Servicer,  or the related Servicer and (ii)
which, in the good faith judgment of the Master Servicer,  the Indenture Trustee
as successor Master Servicer or the related  Servicer,  will not or, in the case
of a proposed advance or Monthly Advance,  would not, be ultimately  recoverable
by the Master Servicer,  the Indenture Trustee as successor Master Servicer,  or
the related Servicer from  Liquidation  Proceeds,  Insurance  Proceeds or future
payments on the Mortgage Loan for which such advance or Monthly Advance was made
or is proposed to be made.

            Note: Any of the Class A, Class X, Class M or Class B Note.

            Noteholder:  The  Person in whose name a Note is  registered  in the
Note Register,  except that,  any Note  registered in the name of the Depositor,
the Issuer, the Indenture Trustee,  the Seller, the Securities  Administrator or
the Master  Servicer or any Affiliate of any of them shall be deemed not to be a
holder  or  holders,  nor  shall  any so owned be  considered  outstanding,  for
purposes  of giving  any  request,  demand,  authorization,  direction,  notice,
consent or waiver under the Indenture or the Trust Agreement;  provided that, in
determining  whether the Indenture Trustee or Securities  Administrator shall be
protected in relying upon any such request,  demand,  authorization,  direction,
notice,  consent  or  waiver,  only  Notes  that a  Responsible  Officer  of the
Indenture  Trustee or  Securities  Administrator  has actual  knowledge to be so
owned shall be so  disregarded.  Owners of Notes that have been  pledged in good
faith may be regarded as Holders if the pledgee  establishes to the satisfaction
of the Securities  Administrator  or the Owner Trustee the pledgee's right so to
act with respect to such Notes and that the pledgee is not the Issuer, any other
obligor upon the Notes or any Affiliate of any of the foregoing Persons.

            Note Interest Rate:  With respect to Class 1-A Notes, on or prior to
the  Payment  Date in June 2010,  the lesser of (i) 4.25% per annum and (ii) the
related  Available Funds Rate; and thereafter,  the least of (i) Six-Month LIBOR
Note Index plus 1.25% per annum, (ii) the related Available Funds Rate and (iii)
10.00% per  annum.  With  respect to Class 2-A Notes on or prior to the  Payment
Date in July  2010,  the  lesser of (i)  4.25%  per  annum and (ii) the  related
Available  Funds Rate; and thereafter,  the least of (i) One-Year U.S.  Treasury
Note Index plus 2.25% per annum, (ii) the related Available Funds Rate and (iii)
9.00% per annum.  With  respect to Class 3-A Notes,  the least of (i)  One-Month
LIBOR Note Index plus 1.00% per annum, (ii) the

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<PAGE>

related  Available  Funds Rate and (iii) 11.75% per annum.  With respect to each
Class of Class M Notes and Class B Notes,  the weighted  average of the weighted
average of the Net Rates of the Mortgage  Loans in each Loan Group,  weighted in
proportion to the results of subtracting from the aggregate  Scheduled Principal
Balance  of the  Mortgage  Loans of each such  Loan  Group  the  aggregate  Note
Principal  Balance of the related  Classes of Senior Notes.  With respect to the
Class X  Notes,  a  variable  rate  equal  to the  product  of (i) 12 and (ii) a
fraction  expressed as a rate, (x) the numerator of which is the excess, if any,
of (1) the interest  accrued and payable on the  Mortgage  Loans for the related
Due Period,  over (2) the amount of any Accrued  Note  Interest  (including  any
Accrued Note Interest  remaining  unpaid from any previous Payment Date) payable
to the Class A, Class M and Class B Notes  (including  any Basis Risk  Shortfall
Carryover  Amounts  payable to the Class A Notes) for the related  Payment Date,
and (y) the denominator of which is the aggregate Note Principal  Balance of the
Class A Notes.

            Note Owner: The Beneficial Owner of a Note.

            Note  Principal  Balance:  With  respect to any Note (other than the
Class X Notes) as of any Payment Date, will equal such Note's initial  principal
balance  on the  Closing  Date,  as reduced by (i) all  amounts  distributed  on
previous  Payment  Dates  on such  Note  with  respect  to  principal,  (ii) the
principal portion of all Realized Losses allocated prior to such Payment Date to
such Note (taking into account the applicable  Loss  Allocation  Limitation) and
(iii) in the case of a Subordinate Note, such Class's pro rata share, if any, of
the applicable Subordinate Writedown Amount for previous Payment Dates, plus any
Subsequent  Recoveries  added to the Note Principal  Balance of such Note.  With
respect to any Class of Notes (other than the Class X Notes), the Note Principal
Balance thereof shall be equal to the sum of the Note Principal  Balances of all
Outstanding Notes of such Class.

            Note Rate  Change  Date:  With  respect to the Class 1-A Notes,  the
Payment Date in July 2010 and with  respect to the Class 2-A Notes,  the Payment
Date in August 2010.

            Note  Register:  The register  maintained  by the Note  Registrar in
which the Note  Registrar  shall  provide for the  registration  of Notes and of
transfers and exchanges of Notes.

            Note  Registrar:  The Securities  Administrator,  in its capacity as
Note  Registrar,  or any  successor  to the  Securities  Administrator  in  such
capacity.

            Notional Amount:  With respect to the Class X Notes and each Payment
Date,  an amount equal to the  aggregate  Note  Principal  Balance of the Senior
Notes before giving effect to distributions to be made on such Payment Date.

            Officer's  Certificate:  With  respect  to the  Master  Servicer,  a
certificate  signed by the  President,  Managing  Director,  a Director,  a Vice
President or an Assistant Vice  President,  of the Master Servicer and delivered
to the Indenture Trustee or the Securities  Administrator,  as applicable.  With
respect to the Issuer,  a certificate  signed by any  Authorized  Officer of the
Issuer, under the circumstances  described in, and otherwise complying with, the
applicable requirements of Section 10.01 of the Indenture,  and delivered to the
Indenture Trustee. Unless otherwise specified, any reference in the Indenture to
an Officer's  Certificate shall be to an Officer's Certificate of any Authorized
Officer of the Issuer.

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<PAGE>

            One-Month LIBOR Note Index: With respect to any Accrual Period,  the
rate determined by the Indenture  Trustee on the related Interest  Determination
Date on the basis of the London  interbank  offered  rate for  one-month  United
States dollar  deposits,  as such rates appear on the Telerate Screen Page 3750,
as of 11:00 a.m. (London time) on such Interest Determination Date.

            In the  event  that on any  Interest  Determination  Date,  Telerate
Screen 3750 fails to indicate the London  interbank  offered rate for  one-month
United  States  dollar  deposits,  then The  One-Month  LIBOR Note Index for the
related Accrual Period will be established by the Indenture Trustee as follows:

                  (i)   If on such Interest Determination Date two or more
      Reference Banks provide such offered quotations,  The One-Month LIBOR Note
      Index for the related  Accrual Period shall be the arithmetic mean of such
      offered  quotations  (rounded  upwards if necessary  to the nearest  whole
      multiple of 1/16%).

                  (ii)  If on such Interest Determination Date fewer than two
      Reference Banks provide such offered quotations,  The One-Month LIBOR Note
      Index  for the  related  Accrual  Period  shall be the  higher  of (i) the
      One-Month  LIBOR  Note  Index  as  determined  on  the  previous  Interest
      Determination Date and (ii) the Reserve Interest Rate.

                  (iii) If no such  quotations  can be obtained and no Reference
      Bank  rate is  available,  the  One-Month  LIBOR  Note  Index  will be the
      One-Month  LIBOR Note  Index  rate  applicable  to the  preceding  Accrual
      Period.

            The establishment of the One-Month LIBOR Note Index on each related
Interest Determination Date by the Indenture Trustee and the Indenture Trustee's
calculation  of the  applicable  Note Interest Rate  applicable  for the related
Accrual Period shall (in the absence of manifest error) be final and binding.

            One-Year  U.S.  Treasury  Note  Index:  With  respect to any Accrual
Period,  the rate  determined  by the  Securities  Administrator  on the related
Interest  Determination  Date on the basis of the weekly  average  yield on U.S.
Treasury  securities  adjusted to a constant maturity of one year as reported in
the Release on the related Interest  Determination Date or, if not so available,
as most recently  available  immediately  prior to such  Interest  Determination
Date.

            Opinion of Counsel: A written opinion of counsel acceptable to the
Indenture  Trustee in its  reasonable  discretion  which counsel may be in-house
counsel for the Depositor or the Seller if  acceptable to the Indenture  Trustee
and the Rating  Agencies or outside counsel for the Depositor,  the Seller,  the
Issuer or the Master Servicer, as the case may be.

            Optional  Termination  Date:  The Payment Date  occurring  after the
first Payment Date for which the aggregate  Scheduled  Principal  Balance of the
Mortgage  Loans as of the end of the related Due Period has been  reduced to 10%
or less of the Cut-off Date Balance.

                                       23

<PAGE>

            Original Subordinate Principal Balance: The aggregate Note Principal
Balance of the Subordinate Notes as of the Closing Date.

            Original  Value:  The lesser of (i) the Appraised  Value or (ii) the
sales price of a Mortgaged  Property  at the time of  origination  of a Mortgage
Loan,  except in instances where either clauses (i) or (ii) is unavailable,  the
other may be used to determine  the Original  Value,  or if both clauses (i) and
(ii) are  unavailable,  Original  Value may be  determined  from  other  sources
reasonably acceptable to the Depositor.

            Outstanding:   With  respect  to  the  Notes,  as  of  the  date  of
determination, all Notes theretofore executed, authenticated and delivered under
this Indenture except:

                  (i)   Notes  theretofore  canceled  by the Note  Registrar  or
            delivered to the Securities Administrator for cancellation; and

                  (ii)  Notes in  exchange  for or in lieu of which  other Notes
            have been  executed,  authenticated  and  delivered  pursuant to the
            Indenture unless proof satisfactory to the Securities  Administrator
            is presented that any such Notes are held by a holder in due course.

            Outstanding  Mortgage Loan: With respect to any Due Date, a Mortgage
Loan  which,  prior  to  such  Due  Date,  was not the  subject  of a  Principal
Prepayment  in full,  did not  become  a  Liquidated  Mortgage  Loan and was not
purchased or replaced.

            Outstanding  Principal Balance: As of the time of any determination,
the principal  balance of a Mortgage Loan remaining to be paid by the Mortgagor,
or,  in the  case of an REO  Property,  the  principal  balance  of the  related
Mortgage  Loan  remaining to be paid by the  Mortgagor at the time such property
was  acquired by the Trust less any Excess  Liquidation  Proceeds  with  respect
thereto to the extent applied to principal.

            Owner Trust Estate: The corpus of the Issuer created by the Trust
Agreement  which  consists  of items  referred  to in Section  3.01 of the Trust
Agreement.

            Owner  Trustee:  Wilmington  Trust  Company,  and its successors and
assigns or any successor  owner trustee  appointed  pursuant to the terms of the
Trust Agreement.

            Paying Agent:  Any paying agent or co-paying  agent  appointed under
the Indenture, which initially shall be the Securities Administrator.

            Payment   Account:   The  trust  account  or  accounts  created  and
maintained pursuant to Section 3.01 of the Indenture, which shall be denominated
Wells Fargo Bank,  N.A.,  as Securities  Administrator  f/b/o holders of Merrill
Lynch Mortgage  Investors  Trust,  Mortgage-Backed  Notes,  Series MLCC 2005-2 -
Payment Account." The Payment Account shall be an Eligible Account.

            Payment Account Deposit Date: The Business Day prior to each Payment
Date.

                                       24

<PAGE>

            Payment  Date:  The 25th day of each month,  or if such day is not a
Business Day, then the next Business Day, commencing in September 2005.

            Percentage  Interest:  With  respect  to any  Note,  the  percentage
obtained by dividing the Note  Principal  Balance of such Note by the  aggregate
Note  Principal  Balance  of all  Notes  of  that  Class.  With  respect  to any
Certificate, the percentage as stated on the face thereof.

            Periodic  Rate Cap: With respect to any Mortgage  Loan,  the maximum
rate, if any, by which the Mortgage Rate on such Mortgage Loan can adjust on any
Adjustment Date, as stated in the related Mortgage Note or Mortgage.

            Permitted Investments:  Any one or more of the following obligations
or securities  held in the name of the Indenture  Trustee for the benefit of the
Noteholders:

            (i)   direct  obligations  of, and obligations the timely payment of
which are fully  guaranteed  by the  United  States of  America or any agency or
instrumentality  of the United  States of America the  obligations  of which are
backed by the full faith and credit of the United States of America;

            (ii)  (a)  demand  or  time  deposits,  federal  funds  or  bankers'
acceptances issued by any depository  institution or trust company  incorporated
under the laws of the United States of America or any state  thereof  (including
the Indenture  Trustee,  Securities  Administrator or the Master Servicer or its
Affiliates acting in its commercial banking capacity) and subject to supervision
and examination by federal and/or state banking  authorities,  provided that the
commercial  paper  and/or  the  short-term  debt  rating  and/or  the  long-term
unsecured debt  obligations of such  depository  institution or trust company at
the  time of such  investment  or  contractual  commitment  providing  for  such
investment have the Applicable  Credit Rating or better from the Rating Agencies
and (b) any other demand or time deposit or certificate of deposit that is fully
insured by the Federal Deposit Insurance Corporation;

            (iii) repurchase  obligations  with  respect  to  (a)  any  security
described in clause (i) above or (b) any other security  issued or guaranteed by
an agency or instrumentality of the United States of America, the obligations of
which are backed by the full faith and credit of the United  States of  America,
in either case  entered  into with a  depository  institution  or trust  company
(acting as principal)  described in clause  (ii)(a)  above where the  Securities
Administrator holds the security therefor;

            (iv)  securities  bearing  interest or sold at a discount  issued by
any corporation  (including the Indenture Trustee,  Securities  Administrator or
the Master Servicer or its Affiliates) incorporated under the laws of the United
States of America or any state thereof that have the Applicable Credit Rating or
better from the Rating  Agencies at the time of such  investment or  contractual
commitment  providing for such investment;  provided,  however,  that securities
issued by any particular  corporation  will not be Permitted  Investments to the
extent that investments therein will cause the then outstanding principal amount
of securities issued by such corporation and held as part of the Trust to exceed
10% of the aggregate  Outstanding  Principal  Balances of all the Mortgage Loans
and Permitted  Investments held as part of the Trust as determined by the Master
Servicer;

                                       25

<PAGE>

            (v)   commercial paper (including both non-interest-bearing discount
obligations and interest-bearing obligations payable on demand or on a specified
date not more  than one year  after the date of  issuance  thereof)  having  the
Applicable  Credit Rating or better from the Rating Agencies at the time of such
investment;

            (vi)  a Reinvestment Agreement issued by any bank, insurance company
or other corporation or entity;

            (vii) any other demand,  money market or time  deposit,  obligation,
security or investment as may be acceptable to the Rating  Agencies as evidenced
in writing by the Rating Agencies to the Securities Administrator; and

            (viii)any money  market or common  trust fund having the  Applicable
Credit  Rating or better from the Rating  Agencies,  including any such fund for
which the Securities  Administrator  or Master  Servicer or any affiliate of the
Securities  Administrator  or Master  Servicer  acts as a manager or an advisor;
provided,  however,  that  no  instrument  or  security  shall  be  a  Permitted
Investment  if such  instrument  or security  evidences a right to receive  only
interest payments with respect to the obligations  underlying such instrument or
if such  security  provides for payment of both  principal  and interest  with a
yield to  maturity  in excess of 120% of the yield to maturity at par or if such
instrument or security is purchased at a price greater than par as determined by
the Master Servicer.

            Person: Any individual, corporation, partnership, limited liability
company, joint venture, association,  joint-stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.

            PHH: PHH Mortgage Corporation (formerly known as Cendant Mortgage
Corporation), or its successor in interest.

            PHH Servicing Agreement: The Mortgage Loan Flow Purchase, Sale and
Servicing  Agreement,  dated as of March 27, 2001,  among Merrill Lynch Mortgage
Capital Inc.,  PHH and Bishop's Gate  Residential  Mortgage  Trust,  attached as
Exhibit  C-2 to the Sale and  Servicing  Agreement,  as  modified by the related
Assignment Agreement.

            Plan: Any employee  benefit plan or certain other  retirement  plans
and arrangements,  including individual retirement accounts and annuities, Keogh
plans and bank  collective  investment  funds and insurance  company  general or
separate  accounts in which such plans,  accounts or arrangements  are invested,
that are subject to ERISA or Section 4975 of the Code.

            Plan Assets:  Assets of a Plan within the meaning of  Department  of
Labor regulation 29 C.F.R. Section 2510.3-101.

            Pool  Balance:  With  respect  to any  date  of  determination,  the
aggregate of the Scheduled  Principal  Balances of all Mortgage Loans as of such
date.

                                       26

<PAGE>

            Prepayment  Interest  Shortfall:  As to any Payment  Date,  Interest
Shortfalls,  if  any,  of the  type  described  in  clauses  (a)  and (b) of the
definition thereof, for such Payment Date, net of Compensating Interest Payments
made with respect to such Payment Date.

            Prepayment  Period:  With respect any Mortgage  Loan and any Payment
Date, the calendar month  immediately  preceding the month in which such Payment
Date occurs.

            Primary Mortgage  Insurance  Policy:  Any primary mortgage  guaranty
insurance  policy  issued in  connection  with a Mortgage  Loan  which  provides
compensation  to a Mortgage  Note  holder in the event of default by the obligor
under such  Mortgage  Note or the related  Security  Instrument,  if any, or any
replacement  policy  therefor  through the related Accrual Period for such Class
relating to a Payment Date.

            Principal Funds: With respect to a Payment Date and each Loan Group,
are  equal to the  sum,  without  duplication,  of (i) the  scheduled  principal
collected on the mortgage loans in the related Loan Group during the related Due
Period or advanced by the related Servicer or Master Servicer,  (ii) prepayments
of  principal  in respect  of the  mortgage  loans in the  related  Loan  Group,
exclusive of any prepayment charges, collected in the related Prepayment Period,
(iii) the Scheduled  Principal Balance of each mortgage loan in the related Loan
Group that was  repurchased  by the  Seller,  the  amount,  if any, by which the
aggregate  unpaid  principal  balance of any replacement  mortgage loans is less
than the  aggregate  unpaid  principal  balance of any  deleted  mortgage  loans
delivered by the Seller in connection  with a  substitution  of a mortgage loan,
(iv) all Liquidation  Proceeds and Subsequent  Recoveries  collected  during the
related  Prepayment  Period on the mortgage loans in the related Loan Group,  to
the  extent  such  Liquidation  Proceeds  and  Subsequent  Recoveries  relate to
principal,  less all non-recoverable  advances relating to principal  reimbursed
during the related Due Period,  and (v) such Loan  Group's pro rata share (based
on the aggregate  Scheduled  Principal  Balance) of the principal portion of the
purchase  price of the assets of the trust  upon the  exercise  by the  majority
holder of the Trust  Certificate of its optional  termination  right;  minus any
amounts  required to be  reimbursed  to the  Seller,  the Master  Servicer,  the
Securities Administrator,  the Custodian or the Indenture Trustee as provided in
the  Indenture  to  the  extent   related  to  such  Loan  Group  (or,  if  such
reimbursement or payment is not related to a Loan Group,  then such Loan Group's
pro rata share  (based on the  aggregate  Scheduled  Principal  Balance) of such
reimbursement or payment),  to the extent not reimbursed from the Interest Funds
from either Loan Group for such Payment Date.

            Principal Prepayment: Any payment (whether partial or full) or other
recovery  of  principal  on a Mortgage  Loan which is received in advance of its
scheduled Due Date to the extent that it is not  accompanied  by an amount as to
interest  representing  scheduled interest due on any date or dates in any month
or months subsequent to the month of prepayment,  including  Insurance  Proceeds
and  Repurchase  Proceeds,   but  excluding  the  principal  portion  of  Excess
Liquidation Proceeds.

            Privately  Offered Notes:  Any of the Class X, Class M-1, Class M-2,
Class M-3, Class B-1, Class B-2 and Class B-3 Notes.

                                       27

<PAGE>

            Proceeding:  Any suit in equity,  action at law or other judicial or
administrative proceeding.

            Protected  Account:  The  trust  account  or  accounts  created  and
maintained  by a Servicer  pursuant to the  related  Servicing  Agreement.  Each
Protected Account shall be an Eligible Account.

            Publicly  Offered  Notes:  Any of the Class 1-A, Class 2-A and Class
3-A Notes.

            Purchaser:  Merrill  Lynch  Mortgage  Investors,  Inc.,  a  Delaware
corporation, and its successors and assigns.

            Qualified  Insurer:  Any  insurance  company duly  qualified as such
under the laws of the state or states in which the related Mortgaged Property or
Mortgaged  Properties is or are located,  duly  authorized  and licensed in such
state or  states  to  transact  the type of  insurance  business  in which it is
engaged and approved as an insurer by the Master Servicer, so long as the claims
paying ability of which is acceptable to the Rating Agencies for mortgage-backed
notes having the same rating as the Notes rated by the Rating Agencies as of the
Closing Date.

            Rating  Agency:   Any  nationally   recognized   statistical  rating
organization,  or its  successor,  that  rated the Notes at the  request  of the
Depositor at the time of the initial issuance of the Notes. Initially,  Standard
& Poor's  and  Moody's.  If such  organization  or a  successor  is no longer in
existence,  "Rating  Agency" with respect to the Notes shall be such  nationally
recognized   statistical  rating  organization,   or  other  comparable  Person,
designated by the Depositor,  notice of which  designation shall be given to the
Indenture  Trustee and Master Servicer.  References  herein to the highest short
term  unsecured  rating  category of a Rating Agency shall mean A-1 or better in
the case of Standard & Poor's, P-1 in the case of Moody's and in the case of any
other Rating Agency shall mean such equivalent ratings. References herein to the
highest  long-term  rating  category of a Rating  Agency shall mean "AAA" in the
case of  Standard & Poor's,  "Aaa" in the case of Moody's and in the case of any
other Rating Agency, such equivalent rating.

            Realized Loss: Any (i) Bankruptcy Loss or (ii) as to any Liquidated
Mortgage Loan, (x) the Outstanding Principal Balance of such Liquidated Mortgage
Loan plus  accrued and unpaid  interest  thereon at the Mortgage  Interest  Rate
through  the last day of the  month of such  liquidation,  less (y) the  related
Excess  Liquidation  Proceeds with respect to such Mortgage Loan and the related
Mortgage Property.

            Record  Date:  With  respect  to any  Class of Notes  and the  Trust
Certificate and any Payment Date, the close of business on the last Business Day
of the calendar month immediately preceding such Payment Date.

            Registered  Holder: The Person in whose name a Note is registered in
the Note Register on the applicable Record Date.

            Related Documents: With respect to each Mortgage Loan, the documents
specified in Section  2.01(b)(i)-(vii)  of the Sale and Servicing  Agreement and
any documents

                                       28

<PAGE>

required  to be  added to such  documents  pursuant  to the  Sale and  Servicing
Agreement,  the Trust  Agreement,  the  Indenture or the Mortgage  Loan Purchase
Agreement.

            Release:   The  Federal  Reserve  Board's  statistical  Release  No.
H.15(519).

            Relief Act: Servicemembers Civil Relief Act.

            Relief  Act  Mortgage  Loan:  Any  Mortgage  Loan  as to  which  the
Scheduled  Payment thereof has been reduced due to the application of the Relief
Act.

            REO  Property:  A  Mortgaged  Property  acquired  in the name of the
Indenture  Trustee,  for the  benefit  of the  Noteholders,  by  foreclosure  or
deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan.

            Repurchase Price: With respect to any Mortgage Loan (or any property
acquired with respect thereto) required to be repurchased by the Seller pursuant
to the Mortgage Loan Purchase  Agreement or Article II of the Sale and Servicing
Agreement,  an  amount  equal  to the  sum of  (i)(a)  100%  of the  Outstanding
Principal  Balance of such Mortgage Loan as of the date of repurchase (or if the
related  Mortgaged  Property was  acquired  with  respect  thereto,  100% of the
Outstanding Principal Balance at the date of the acquisition),  plus (b) accrued
but unpaid interest on the Outstanding Principal Balance at the related Mortgage
Interest  Rate,  through and including the last day of the month of  repurchase,
plus (c) any unreimbursed Monthly Advances and servicing advances payable to the
related  Servicer or to the Master  Servicer  and (ii) any costs and damages (if
any)  incurred by the Trust in  connection  with any  violation of such Mortgage
Loan of any predatory lending laws.

            Repurchase Proceeds: the Repurchase Price in connection with any
repurchase  of a Mortgage  Loan by the Seller and any cash deposit in connection
with the substitution of a Mortgage Loan.

            Request for Release:  A request for release in the form  attached to
the Custodial Agreement as Exhibit Four.

            Required Insurance Policy: With respect to any Mortgage Loan, any
insurance  policy which is required to be maintained from time to time under the
Sale and Servicing Agreement with respect to such Mortgage Loan.

            Reserve  Interest Rate:  With respect to any Interest  Determination
Date,  the rate per annum that the  Securities  Administrator  determines  to be
either (i) the  arithmetic  mean  (rounded  upwards if  necessary to the nearest
whole  multiple of 0.0625%) of the one-year  United States dollar  lending rates
which New York City banks selected by the Securities  Administrator  are quoting
on the relevant Interest  Determination  Date to the principal London offices of
leading  banks in the  London  interbank  market or (ii) in the  event  that the
Securities  Administrator  can  determine no such  arithmetic  mean,  the lowest
one-year United States dollar lending rate which New York City banks selected by
the Securities  Administrator are quoting on such Interest Determination Date to
leading European banks.

                                       29

<PAGE>

            Responsible Officer:  With respect to the Securities  Administrator,
any officer of the Securities  Administrator with direct  responsibility for the
administration  of the Indenture and also, with respect to a particular  matter,
any other  officer to whom such  matter is  referred  because of such  officer's
knowledge of and familiarity  with the particular  subject;  and with respect to
the  Indenture  Trustee,  any vice  president,  assistant  vice  president,  any
assistant secretary, any assistant treasurer, any associate or any other officer
of the  Indenture  Trustee  customarily  performing  functions  similar to those
performed  by any of the above  designated  officers  who at such time  shall be
officers to whom, with respect to a particular  matter,  such matter is referred
because of such  officer's  knowledge  of and  familiarity  with the  particular
subject or who shall have direct  responsibility  for the administration of this
Indenture.

            Sale and  Servicing  Agreement:  The Sale and  Servicing  Agreement,
dated as of August  31,  2005,  among the  Issuer,  the  Seller,  the  Indenture
Trustee, the Master Servicer, the Securities Administrator and the Depositor.

            Scheduled Payment:  With respect to any Mortgage Loan and any month,
the  scheduled  payment or payments of  principal  and  interest due during such
month on such Mortgage Loan which either is payable by a Mortgagor in such month
under the related Mortgage Note or, in the case of REO Property, would otherwise
have been payable under the related Mortgage Note.

            Scheduled Principal: The principal portion of any Scheduled Payment.

            Scheduled  Principal Balance:  With respect to any Mortgage Loan and
any Payment Date (1) the unpaid  principal  balance of such  Mortgage Loan as of
the close of business on the related Due Date (taking  account of the  principal
payment to be made on such Due Date and  irrespective  of any delinquency in its
payment), as specified in the amortization schedule at the time relating thereto
(before any adjustment to such amortization schedule by reason of any bankruptcy
or similar  proceeding  occurring after the Cut-off Date (other than a Deficient
Valuation)  or any  moratorium  or similar  waiver or grace period) less (2) any
Principal  Prepayments  and the  principal  portion  of any  Excess  Liquidation
Proceeds  received  during  or prior  to the  immediately  preceding  Prepayment
Period; provided that the Scheduled Principal Balance of any Liquidated Mortgage
Loan is zero.

            Securities  Act: The  Securities  Act of 1933,  as amended,  and the
rules and regulations promulgated thereunder.

            Securities Administrator: Wells Fargo Bank, National Association, or
its successor in interest, or any successor securities administrator.

            Security: Any of the Certificates or Notes.

            Securityholder or Holder: Any Noteholder or Certificateholder.

            Security  Instrument:  A written  instrument  creating a valid first
lien  on a  Mortgaged  Property  securing  a  Mortgage  Note,  which  may be any
applicable  form of  mortgage,  deed of trust,  deed to secure  debt or security
deed, including any riders or addenda thereto.

                                       30

<PAGE>

            Seller: Merrill Lynch Mortgage Lending, Inc., and its successors and
assigns.

            Senior Notes: Any of the Class 1-A, Class 2-A and Class 3-A Notes.

            Senior  Optimal  Principal  Amount:   The  Group  I  Senior  Optimal
Principal  Amount,  Group II Senior Optimal Principal Amount or Group III Senior
Optimal Principal Amount, as applicable.

            Senior Percentage: The Group I Senior Percentage, Group II Senior
Percentage or Group III Senior Percentage, as applicable.

            Senior  Prepayment   Percentage:   The  Group  I  Senior  Prepayment
Percentage, Group II Senior Prepayment Percentage or Group III Senior Prepayment
Percentage, as applicable.

            Servicers: Wells Fargo and PHH, and their respective successors and
assigns.

            Servicer  Remittance  Date:  With respect to each Mortgage Loan, the
date set forth in the related Servicing Agreement.

            Servicing  Agreements:  The Wells Fargo Servicing  Agreement and the
PHH Servicing Agreement.

            Servicing Fee: As to any Mortgage Loan and Payment Date, an
amount  equal to the  product  of (i) the  Scheduled  Principal  Balance of such
Mortgage  Loan as of the Due Date in the preceding  calendar  month and (ii) the
applicable Servicing Fee Rate.

            Servicing Fee Rate: As to any Mortgage Loan, a per annum rate as set
forth in the Mortgage Loan Schedule.

            Servicing  Officer:  Any officer of the Master Servicer involved in,
or responsible for, the administration and servicing of the Mortgage Loans whose
name and specimen  signature appear on a list of servicing officers furnished to
the Indenture  Trustee by the Master Servicer,  as such list may be amended from
time to time.

            Six-Month LIBOR Note Index: With respect to any Accrual Period,  the
rate determined by the Indenture  Trustee on the related Interest  Determination
Date on the basis of the London  interbank  offered  rate for  six-month  United
States dollar  deposits,  as such rates appear on the Telerate Screen Page 3750,
as of 11:00 a.m. (London time) on such Interest Determination Date.

            In the  event  that on any  Interest  Determination  Date,  Telerate
Screen 3750 fails to indicate the London  interbank  offered rate for  six-month
United  States  dollar  deposits,  then the  Six-Month  LIBOR Note Index for the
related Accrual Period will be established by the Indenture Trustee as follows:

                  (i)  If on  such  Interest  Determination  Date  two  or  more
      Reference Banks provide such offered quotations,  the Six-Month LIBOR Note
      Index for the related

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<PAGE>

      Accrual  Period shall be the  arithmetic  mean of such offered  quotations
      (rounded upwards if necessary to the nearest whole multiple of 1/16%).

                  (ii) If on such  Interest  Determination  Date  fewer than two
      Reference Banks provide such offered quotations,  the Six-Month LIBOR Note
      Index  for the  related  Accrual  Period  shall be the  higher  of (i) the
      Six-Month  LIBOR  Note  Index  as  determined  on  the  previous  Interest
      Determination Date and (ii) the Reserve Interest Rate.

                  (iii) If no such  quotations  can be obtained and no Reference
      Bank  rate is  available,  the  Six-Month  LIBOR  Note  Index  will be the
      Six-Month  LIBOR Note  Index  rate  applicable  to the  preceding  Accrual
      Period.

            The establishment of the Six-Month LIBOR Note Index on each Interest
Determination  Date  by  the  Indenture  Trustee  and  the  Indenture  Trustee's
calculation  of the  applicable  Note Interest Rate  applicable  for the related
Accrual Period shall (in the absence of manifest error) be final and binding.

            Standard & Poor's:  Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., or its successor in interest.

            Statutory  Trust  Statute:  Chapter  38 of Title 12 of the  Delaware
Code,  12 Del.  Code Sections 3801 et seq., as the same may be amended from time
to time.

            Subordinate Notes: Any of the Class X, Class M-1, Class M-2, Class
M-3, Class B-1, Class B-2 and Class B-3 Notes.

            Subordinate  Optimal Principal  Amount:  With respect to the Class M
Notes and Class B Notes and each Payment Date will be an amount equal to the sum
of the  following  from  each  Loan  Group  (but in no  event  greater  than the
aggregate Note Principal  Balance of the Subordinate  Notes immediately prior to
such Payment Date):

      (i)   the applicable  Subordinate  Percentage of the principal  portion of
all Monthly  Payments due on each Mortgage Loan in the related Loan Group on the
related  Due  Date,  as  specified  in the  amortization  schedule  at the  time
applicable  thereto (after  adjustment for previous  principal  prepayments  but
before any adjustment to such amortization  schedule by reason of any bankruptcy
or similar proceeding or any moratorium or similar waiver or grace period);

      (ii)  the applicable  Subordinate  Prepayment  Percentage of the Scheduled
Principal  Balance of each Mortgage Loan in the related Loan Group which was the
subject of a  prepayment  in full  received  by the Master  Servicer  during the
applicable Prepayment Period;

      (iii) the  applicable  Subordinate  Prepayment  Percentage  of all partial
prepayments of principal  received during the applicable  Prepayment  Period for
each Mortgage Loan in the related Loan Group;

      (iv)  the excess, if any, of (a) the Net Liquidation Proceeds allocable to
principal  received  during  the  related  Prepayment  Period in respect of each
Liquidated Mortgage Loan in

                                       32

<PAGE>

the related Loan Group and all Subsequent Recoveries received in respect of each
Liquidated Mortgage Loan in the related Loan Group during the related Due Period
over (b) the sum of the  amounts  distributable  to the  holders of the  related
Senior Notes pursuant to clause (4) of the definition of "Group I Senior Optimal
Principal  Amount",  "Group II Senior Optimal  Principal  Amount" and "Group III
Senior Optimal Principal Amount", as applicable, on such Payment Date;

      (v) the applicable Subordinate Prepayment Percentage of the sum of (a) the
Scheduled  Principal  Balance of each  Mortgage  Loan in the related  Loan Group
which was repurchased by the Seller in connection with such Payment Date and (b)
the difference, if any, between the Scheduled Principal Balance of each Mortgage
Loan in the  related  Loan Group  that has been  replaced  by the Seller  with a
substitute  mortgage loan  pursuant to the Mortgage  Loan Purchase  Agreement in
connection  with such Payment Date and the Scheduled  Principal  Balance of each
such substitute mortgage loan; and

      (vi) on the  Payment  Date on which  the Note  Principal  Balances  of the
related  Senior  Notes  have all been  reduced to zero,  100% of any  applicable
Senior Optimal Principal Amount.

            Subordinate  Percentage:  With  respect to each Loan Group as of any
Payment Date,  100% minus the related  Senior  Percentage for the related Senior
Notes. The initial  Subordinate  Percentage for each Loan Group will be equal to
approximately 3.35%.

            Subordinate Prepayment  Percentage:  As of any Payment Date and with
respect to any Loan Group, 100% minus the related Senior  Prepayment  Percentage
for such Loan Group,  except that on any Payment  Date after the Note  Principal
Balance of each class of Senior  Notes of the  related  note group has each been
reduced to zero, if (A) the weighted  average of the Subordinate  Percentages on
such  Payment Date equals or exceeds two times the initial  weighted  average of
the Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of
the Mortgage  Loans  delinquent 60 days or more  (including for this purpose any
such  Mortgage  Loans in  foreclosure  and  bankruptcy  and Mortgage  Loans with
respect to which the related mortgaged property has been acquired by the Trust),
averaged  over the last six months,  as a percentage of the sum of the aggregate
Note Principal Balance of the Subordinate Certificates does not exceed 100%, the
Subordinate Prepayment Percentage for the Subordinate  Certificates with respect
to such Loan Group will equal 100%.  If the above test is not  satisfied  on any
Payment  Date  after  the  Note  Principal  Balance  of  each  class  of  Senior
Certificates  of the related note group has each been reduced to zero,  then the
Subordinate  Prepayment  Percentage  with respect to such Loan Group shall equal
zero for such Payment Date.

            Subordinate Writedown Amount: With respect to the Subordinate Notes,
the  amount  by  which  (a)  the  sum  of the  Note  Principal  Balances  of the
Subordinate  Notes (after giving effect to the distribution of principal and the
allocation of applicable Realized Losses in reduction on a pro rata basis of the
Note  Principal  Balances of such Notes on such  Payment  Date)  exceeds (b) the
aggregate  Scheduled  Principal  Balances of the Mortgage  Loans on the Due Date
related to such Payment Date.

            Subsequent  Transfer:  A  transfer  of a  Senior  Note or  Privately
Offered Note with respect to which a Tax Transfer  Certificate or "will be debt"
opinion has been furnished to the

                                       33

<PAGE>

Securities Administrator; provided, that, if a REIT which is the owner, directly
or through one or more QRSs or entities  disregarded  as entities  separate from
such  REIT or  QRSs,  of 100% of all  Certificates  and  all  Senior  Notes  and
Privately  Offered  Notes other than those with  respect to which a Tax Transfer
Certificate or "will be debt" opinion previously was furnished to the Securities
Administrator  reacquires any such Senior Note or Privately  Offered Note,  then
the initial transfer of such Senior Note or Privately  Offered Note by such REIT
after such reacquisition shall be treated as an Initial Transfer requiring a new
Tax  Transfer  Certificate  or "will be debt"  opinion  and not as a  Subsequent
Transfer;  provided,  further,  for the  avoidance  of doubt,  that if Notes are
transferred  to any Person in a  transfer  with  respect to which a  certificate
substantially in the form of Exhibit F hereto is required to be delivered to the
Securities  Administrator  and certain other parties,  then (1) such transfer of
such Notes to such  Person  shall not be treated  as an  Initial  Transfer  or a
Subsequent Transfer and (2) the initial transfer of any Senior Note or Privately
Offered Note (other than a pledge of such Senior Note or Privately  Offered Note
to secure  indebtedness or the transfer of such Senior Note or Privately Offered
Note  pursuant to a repurchase  agreement  treated as secured  indebtedness  for
federal  income  tax  purposes)  by such  Person  shall be treated as an Initial
Transfer requiring a new Tax Transfer  Certificate or "will be debt" opinion and
not as a  Subsequent  Transfer;  provided,  further,  that if any Senior Note or
Privately Offered Note has been transferred to a lender upon a default under any
secured  indebtedness or has been  transferred to a counterparty to a repurchase
agreement  and a default  subsequently  occurs with  respect to such  repurchase
agreement,  and such lender or repurchase agreement counterparty  furnishes,  or
causes to be furnished,  to the  Securities  Administrator  (x) in the case of a
Senior Note, a Tax Transfer  Certificate or a "will be debt" opinion rendered by
nationally  recognized  tax  counsel or (y) in the case of a  Privately  Offered
Note, a "will be debt" opinion  rendered by nationally  recognized  tax counsel,
then the transfer of such Senior Note or Privately  Offered Note by such secured
lender or a repurchase  agreement  counterparty shall be treated as a Subsequent
Transfer.

            Substitute  Mortgage Loan: A Mortgage Loan tendered to the Indenture
Trustee  pursuant  to the  Mortgage  Loan  Purchase  Agreement  or the  Sale and
Servicing Agreement,  as applicable,  in each case, (i) which has an Outstanding
Principal  Balance not greater nor  materially  less than the Mortgage  Loan for
which it is to be substituted;  (ii) which has a Mortgage  Interest Rate and Net
Rate not less than, and not materially  greater than, such Mortgage Loan;  (iii)
which has a maturity  date not  materially  earlier or later than such  Mortgage
Loan and not later than the latest  maturity  date of any  Mortgage  Loan;  (iv)
which is of the same property type and occupancy type as such Mortgage Loan; (v)
which has a Loan-to-Value Ratio not greater than the Loan-to-Value Ratio of such
Mortgage Loan;  (vi) which is current in payment of principal and interest as of
the date of substitution; (vii) as to which the payment terms do not vary in any
material  respect from the payment terms of the Mortgage Loan for which it is to
be substituted and (viii) which has a Gross Margin and Maximum Lifetime Mortgage
Rate no less than those of such Mortgage  Loan,  has the same Index and interval
between Interest  Adjustment Dates as such Mortgage Loan, and a Minimum Lifetime
Mortgage Rate no lower than that of such Mortgage Loan.

            Subordinate Note: Any of the Class M, Class B or Class X Notes.

                                       34

<PAGE>

            Subsequent  Recoveries:  Means any amount  recovered  by the related
Servicer or the Master Servicer (net of reimbursable expenses) with respect to a
Liquidated  Mortgage  Loan with  respect to which a Realized  Loss was  incurred
after the liquidation or disposition of such Mortgage Loan.

            Telerate  Screen Page 3750:  The display  designated as page 3750 on
the  Telerate  Service  (or such  other  page as may  replace  page 3750 on that
service for the purpose of displaying  London  interbank  offered rates of major
banks).

            Treasury Regulations:  Regulations,  including proposed or temporary
Regulations,   promulgated  under  the  Code.   References  herein  to  specific
provisions  of  proposed  or  temporary   regulations  shall  include  analogous
provisions  of  final   Treasury   Regulations  or  other   successor   Treasury
Regulations.

            Trust:  The Merrill Lynch Mortgage  Investors  Trust,  Series 2005-2
created pursuant to the Trust Agreement.

            Trust Agreement:  The Trust Agreement,  dated as of August 19, 2005,
as amended by the Amended and Restated Trust  Agreement,  dated as of August 31,
2005, among the Owner Trustee,  the Depositor and the Securities  Administrator,
relating to the Trust.

            Trust Estate:  The meaning  specified in the Granting  Clause of the
Indenture.

            Trust  Indenture  Act or TIA: The Trust  Indenture  Act of 1939,  as
amended from time to time, as in effect on any relevant date.

            UCC: The Uniform  Commercial  Code, as amended from time to time, as
in effect in any specified jurisdiction.

            Underwriter: Merrill Lynch, Pierce, Fenner & Smith Incorporated.

            Uninsured  Cause:  Any cause of damage to a  Mortgaged  Property  or
related  REO  Property  such that the  complete  restoration  of such  Mortgaged
Property  or  related  REO  Property  is not fully  reimbursable  by the  hazard
insurance  policies required to be maintained  pursuant to the related Servicing
Agreement, without regard to whether or not such policy is maintained.

            Wells Fargo: Wells Fargo Bank, N.A., or its successor in interest.

            Wells  Fargo  Servicing  Agreement:   The  Seller's  Warranties  and
Servicing  Agreement  dated as of August 1, 2005,  as amended,  between  Merrill
Lynch Bank USA and Wells Fargo Bank,  N.A.,  attached as Exhibit C-1 to the Sale
and Servicing Agreement, as modified by the related Assignment Agreement.

                                       35EXHIBIT 10.1

                          DEBENTURE PURCHASE AGREEMENT

     DEBENTURE PURCHASE AGREEMENT (this  "Agreement"),  dated as of September 9,
2005, by and among EUROFORTUNE HOLDING,  S.A., a Luxembourg company,  ("Buyer"),
HEM MUTUAL ASSURANCE LLC, a Colorado limited liability company  ("Seller"),  and
HERITAGE WORLDWIDE, INC., a Delaware corporation (the "Company").

                                R E C I T A L S :

     Seller desires to sell to Buyer, and Buyer desires to purchase from Seller,
all right,  title and interest in and to (a) the 1%  Convertible  Debenture  Due
October  9, 2008,  dated  October 9,  2003,  with a stated  principal  amount of
$498,750,  issued by the Company's  wholly-owned  subsidiary and  predecessor in
interest, OS MXM, Inc. ("OS"), to Seller, and titled 'First Debenture A' ("First
Debenture  A"),  (b) the 1%  Convertible  Debenture  Due October 9, 2008,  dated
October 9,  2003,  with a stated  principal  amount of  $500,000,  issued by the
Company's  wholly-owned  subsidiary and predecessor in interest,  OS, to Seller,
and titled 'First Debenture B' ("First Debenture B"), and (c) the 1% Convertible
Debenture Due October 9, 2008,  dated October 9, 2003,  with a stated  principal
amount  of  $1,250,  issued  by  the  Company's   wholly-owned   subsidiary  and
predecessor in interest,  OS, and titled 'Second Debenture'  ("Second Debenture"
and   together   with   First   Debenture   A  and   First   Debenture   B,  the
"Debentures"),owned  by Seller,  all upon the terms and  subject  to  conditions
contained herein.

     NOW, THEREFORE,  in consideration of the mutual promises and agreements set
forth herein, the parties hereto hereby agree as follows:

     1. PURCHASE AND SALE.

          1.1  Purchase and Sale.  In  consideration  of the payment by Buyer of
the  Purchase  Price (as  defined  in Section  1.2  below),  and  subject to the
satisfaction  of the  conditions  set forth in Section 4 herein,  Seller  hereby
sells,  assigns,  transfers,  conveys and  delivers to Buyer,  and Buyer  hereby
purchases,  acquires and takes assignment and delivery of, all the right,  title
and  interest  of Seller in and to the  Debentures  as of the date  hereof  (the
"Closing Date").

          1.2  Purchase Price.  The aggregate  purchase price for the Debentures
(the  "Purchase  Price")  shall be $1,048,897  (which amount  includes a premium
payment of  $80,000).  Subject to the last  paragraph of Section 4, the Purchase
Price is payable on the Closing  Date in cash,  by certified or bank check or by

<PAGE>

wire  transfer of  immediately  available  funds to such  accounts as Seller may
designate in writing.

          1.3. Delivery  of the  Debentures  and Escrow  Shares.  On the Closing
Date,  Seller  shall (a)  deliver  to Buyer  the  Debentures  together  with any
instruments  reasonably  requested  by Buyer to properly  transfer  ownership to
Buyer, and (b) subject to Section 5.3, deliver to the Company stock certificates
issued in the name of and registered to Seller representing 10,000,000 shares of
the  Company's  common  stock  owned by Seller  together  with any stock  powers
(including stock powers with a medallion  guaranty) that the Company's  transfer
agent requires to effect the transfer to the Company.

     2. REPRESENTATIONS AND WARRANTIES OF SELLER.

     Seller hereby represents and warrants to Buyer and the Company as follows:

          2.1. Organization  of Seller.  Seller is a limited  liability  company
duly  organized,  validly  existing and in good  standing  under the laws of its
jurisdiction of organization.

          2.2. Authority.  Seller  has all  requisite  power  and  authority  to
execute and deliver this Agreement and to carry out its  obligations  hereunder.
Seller has obtained all necessary organizational approvals for the execution and
delivery of this  Agreement and the  performance of its  obligations  hereunder.
This  Agreement has been duly executed and delivered by Seller and (assuming due
authorization,  execution and delivery by the other parties hereto)  constitutes
Seller's  legal,  valid  and  binding  obligation,  enforceable  against  it  in
accordance with its terms.

          2.3  Ownership.  Seller  owns the  Debentures,  free and  clear of all
liens, pledges, security interests,  claims, options,  restrictions,  proxies or
other encumbrances ("Liens"). Upon consummation of the transactions contemplated
hereby, Buyer will acquire good and marketable title to the Debentures, free and
clear  of any  Liens.  Seller  has not  transferred  all or any  portion  of any
Debenture (or any right thereunder) or granted any person or entity the right to
acquire any of the  preceding  since the  original  issuance of such  Debenture.
Except as set forth on Schedule 2.3, Seller has not converted all or any portion
of any Debenture  into capital stock of the Company since the original  issuance
of such Debenture.  Except as set forth on Schedule 2.3, Seller does not own and
has never owned (a) any equity  interest  in the  Company,  (b) any  instrument,
security  or other  right that is  convertible  or  exercisable  into any equity
interest of the Company or (c) any other right to acquire any equity interest in
the Company,  in each case other than the  Debentures to be transferred to Buyer
hereunder. Upon the closing of this Agreement, Seller and Gottbetter (as defined

<PAGE>

below) will have transferred to the Company (in the aggregate) 10,000,000 shares
of the Company's common stock free and clear of any Liens.

          2.4  Escrow  Account.  Schedule 2.4 sets forth the number of shares of
the  Company's  common  stock held in escrow  pursuant  to that  certain  Escrow
Agreement (the "Escrow  Agreement") dated as of October 9, 2003 by and among the
Company, Gottbetter & Partners, LLP ("Gottbetter"), as escrow agent, and Seller.
Except  as set  forth on  Schedule  2.4,  since  the  original  issuance  of the
Debentures,  none of the  shares of the  Company's  common  stock  deposited  or
required to be deposited in escrow under the Escrow  Agreement has been released
to Seller or any other  person or entity.  The  Escrow  Agreement  replaced  and
superseded in all respects the Escrow Agreement dated October 2003, by and among
OS,  Gottbetter,  as escrow  agent and Seller and  included  as Exhibit F to the
Convertible  Debenture  Purchase  Agreement  (the "Original  Debenture  Purchase
Agreement") dated as of October 9, 2003 between OS and Seller.

          2.5  Non-Contravention.  None of the  execution and delivery by Seller
of  this  Agreement  or the  performance  of its  obligations  hereunder  or the
consummation  of the  transactions  contemplated  hereby (a) will  conflict with
Seller's  organizational  documents or will, with or without notice, the passage
of time or both,  constitute a breach or violation  of, be in conflict  with, or
constitute  or create a default  under,  (i) any contract or instrument to which
Seller  is a party or by which  it is  bound or (ii) any  applicable  law or (b)
require the consent or  approval  of any third party or  governmental  authority
relating to Seller.

          2.6. Brokers,   Finders,   etc.  All  negotiations  relating  to  this
Agreement and the transactions  contemplated hereby have been carried on without
the  participation  of any  person or entity  acting on behalf of Seller in such
manner as to give rise to any valid claim  against  Buyer or the Company for any
brokerage or finder's fee, commission or similar compensation.

     3. REPRESENTATIONS AND WARRANTIES OF BUYER.

     Buyer hereby represents and warrants to Seller as follows:

          3.1. Organization of Buyer.  Buyer is duly organized or  incorporated,
validly existing and in good standing (to the extent such concept is applicable)
under the laws of its jurisdiction of formation.

          3.2  Authority. Buyer has all requisite power and authority to execute
and deliver this Agreement and to carry out its obligations hereunder. Buyer has
obtained all necessary  corporate or organizational  approvals for the execution
and delivery of this Agreement and the performance of its obligations hereunder.
This  Agreement  has been duly executed and delivered by Buyer and (assuming due
authorization,  execution and delivery by the other parties hereto)  constitutes

<PAGE>

Buyer's  legal,  valid  and  binding  obligation,   enforceable  against  it  in
accordance with its terms.

          3.3  Non-Contravention. None of the execution and delivery by Buyer of
this  Agreement  or  the  performance  of  its  obligations   hereunder  or  the
consummation by Buyer of the transactions contemplated hereby will conflict with
Buyer's organizational documents or will, with or without notice, the passage of
time or both,  constitute  a breach or  violation  of, be in conflict  with,  or
constitute or create a default under,  (a) any material  contract to which Buyer
is a party or by which it is bound or (b) any applicable law relating to Buyer.

          3.4. Brokers,   Finders,   etc.  All  negotiations  relating  to  this
Agreement and the transactions  contemplated hereby have been carried on without
the  participation  of any  person or  entity  acting on behalf of Buyer in such
manner as to give rise to any valid claim  against  Seller for any  brokerage or
finder's fee, commission or similar compensation.

     4. CONDITIONS TO THE CLOSING.

     Buyer's  obligation to purchase the  Debentures  are expressly  conditioned
upon the occurrence of the following conditions:

          (a) the payment by Gottbetter to the Company of the following amounts:

               (i) $2,690.30, representing the amount remaining in the Company's
retainer account with Gottbetter;

               (ii) $6,931.09,  representing  amounts applied by Gottbetter from
the Company's retainer account for legal fees during November and December 2004;
and

               (iii)  $1,940.64,  representing the amount paid by the Company to
Gottbetter  in an  attempt  to  partially  redeem a  Debenture  that  was  never
redeemed;

          (b) the delivery by Seller to Buyer of the  Debentures,  together with
any instruments  reasonably requested by Buyer to properly transfer ownership to
Buyer;

          (c)  the  delivery  by  Gottbetter  to the  Company  of a  certificate
certifying  the funds and securities  held in escrow under the Escrow  Agreement
and the retainer amounts specified in clauses (a)(i)-(iii) above;

<PAGE>

          (d) the delivery of all  certificates  of the Company's  stock held or
required  to be held in escrow  pursuant to the Escrow  Agreement  and any stock
certificates  which were  released  from escrow prior to the Closing Date to the
Company's  transfer  agent (or to the  Company  for  delivery  to the  Company's
transfer  agent),  which  certificates  should represent no less than 10,000,000
shares of the Company's common stock, together (i) with a letter instructing the
transfer  agent to reissue  such shares at the  direction of the Company to such
persons  and with such  legends as the  Company  may so direct,  if  required to
transfer such shares and (ii) with any stock powers (including stock powers with
a medallion  guaranty) that the Company's transfer agent requires to effect such
transfer; and

          (e) the  resignation  of  Gottbetter  as escrow agent under the Escrow
Agreement,  the delivery by  Gottbetter to its  replacement  escrow agent of all
securities and funds held or required to be held in the escrow account under the
Escrow  Agreement  and the  termination  of any  powers of  attorney  granted to
Gottbetter by the Company and its predecessors  (including,  without limitation,
OS).

     Notwithstanding  the  foregoing,  the  payments  required  to  be  made  by
Gottbetter   under  Section   6(a)(i-iii)   above  may  be  reduced  by  $1,200,
representing legal fees charged by Gottbetter for 3.5 hours of time spent on the
potential conversion of a Debenture and other related matters.

     The parties  agree that the net payment from Buyer to Seller at the closing
shall be $1,038,534.97  (representing  the Purchase Price,  minus the amounts in
Section  6(a)(i)-(iii),  plus the $1,200  discussed in the preceding  sentence).
Upon payment of $1,038,534.97  from Buyer to Seller,  the closing conditions set
forth in Section  6(a)(i-iii) and the second preceding  sentence shall be deemed
satisfied  and the  Purchase  Price  shall be deemed  paid to Seller;  provided,
however,  Buyer agrees to reimburse  the Company  $10,362.03  (representing  the
amounts owed to the Company under Section  6(a)(i-iii)  minus the amount owed by
the Company in the second preceding sentence).

     5.  PURCHASE  AGREEMENT  RIGHTS;   CONVERSION  NOTICES  VOID;   ALTERNATIVE
TRANSFEROR OF CERTAIN SHARES UNDERLYING DEBENTURES.

          5.1 Purchase Agreement Rights. All rights of Seller under the Original
Debenture Purchase Agreement,  the Escrow Agreement and the other agreements and
instruments   executed  in  connection  with  the  Original  Debenture  Purchase
Agreement  shall be  automatically  transferred  to Buyer upon the Closing Date,
without any further action required on the part of any party.

          5.2 Prior  Conversions  Rescinded and Unwound.  Seller agrees that any
conversions of, and pending notices to convert,  any portion of a Debenture into
the Company's  capital stock is rescinded and of no effect  (including,  without

<PAGE>

limitation,  the attempt to convert  under the  conversion  notice dated June 2,
2005).  Seller hereby  revokes any such  conversion  notices,  unwinds all prior
conversions  and has  returned to the escrow  agent an equal number of shares of
the Company's  common stock (100,000  shares) that it had received in connection
with such prior  conversions.  Such shares of common  stock are  included in the
shares transferred in Section 1.3 above.

          5.3 Alternative  Transferor for Certain Shares Underlying  Debentures.
Notwithstanding  anything  in this  Agreement  to the  contrary,  Buyer  and the
Company  acknowledge  and  agree  that  stock  certificates  in the  name of and
registered  to  Gottbetter  representing  50,000  shares of the Common Stock are
being  transferred  to the Company  under Section 1.3. Such 50,000 shares of the
Common  Stock shall  count  towards the  10,000,000  shares of the Common  Stock
required  to be  transferred  from  Seller  to the  Company  hereunder,  and all
applicable  provisions of this Agreement shall be deemed revised to reflect that
9,950,000 shares of the Common Stock are being transferred hereunder from Seller
to the  Company  and  50,000  shares of the Common  Stock are being  transferred
hereunder from Gottbetter to the Company; provided,  however, Seller shall still
(a) have the obligation to ensure that the Company receives 10,000,000 shares of
the  Common  Stock   hereunder   pursuant  to  Section  1.3  and  (b)  make  the
representations  and  warranties  described  in Section 2.3 with  respect to all
10,000,000 shares of the Common Stock.

     6. INDEMNIFICATION.

          6.1.  Indemnification by Seller.  Seller agrees to defend,  indemnify,
hold harmless, pay or reimburse each of Buyer and the Company, any subsidiary or
affiliate  thereof and its officers,  directors,  shareholders  and  controlling
persons, employees,  agents, successors and assigns from and against any and all
liabilities,  losses, damages, claims, costs, expenses,  judgments, interest and
penalties (including, without limitation,  attorneys',  accountants' and outside
advisors' fees and disbursements) (collectively,  "Losses") incurred as a result
of,  arising out of or resulting  from (i) the breach of any  representation  or
warranty  made by Seller and  contained in this  Agreement or (ii) the breach of
any covenant or  agreement  made by Seller and  contained  in this  Agreement or
(iii) any Losses incurred by the Company under the medallion  guaranty indemnity
letter  provided by the Company to Contintenal  Stock Transfer and Trust Company
dated on or around the Closing  Date  pursuant  to which the Company  waived the
medallion guaranty signature requirement for Seller's transfer to the Company of
9,950,000 shares of the Company's common stock.

          6.2. Indemnification by Buyer. Buyer agrees to defend, indemnify, hold
harmless,  pay or reimburse Seller,  any subsidiary or affiliate thereof and its
officers,  directors,  shareholders and controlling persons, employees,  agents,
successors and assigns from and against any and all Losses  incurred as a result

<PAGE>

of,  arising out of or resulting  from (i) the breach of any  representation  or
warranty made by Buyer and contained in this Agreement or (ii) the breach of any
covenant or agreement made by Buyer and contained in this Agreement.

          6.3. Survival of Representations and Warranties.  The representations,
warranties,  covenants and agreements made by Buyer and Seller shall survive the
signing and consummation of this Agreement.  All representations,  covenants and
warranties  made by Seller in this  Agreement will be deemed to have been relied
upon by Buyer (notwithstanding any investigation by Buyer). All representations,
covenants and warranties  made by Buyer in this Agreement will be deemed to have
been relied upon by Seller (notwithstanding any investigation by Seller).

          6.4. Notice of Claims.  An indemnified party shall give prompt written
notice to the  indemnifying  party of any claim  against the  indemnified  party
which  might  give  rise  to a  claim  by  the  indemnified  party  against  the
indemnifying  party  under  the  indemnification  provisions  contained  herein,
stating  the nature and basis of the claim and the  actual or  estimated  amount
thereof, provided, however, that failure to give such notice will not affect the
obligation of the indemnifying  party to provide  indemnification  in accordance
with the terms of Section 6.1 or 6.2 unless,  and only to the extent  that,  the
indemnifying party is actually prejudiced thereby. In the event that any action,
suit or  proceeding  is brought  against any  indemnified  party with respect to
which the  indemnifying  party  may have  liability  under  the  indemnification
provisions   contained  herein,  the  indemnifying  party  shall,  upon  written
acknowledgement by the indemnifying  party that such action,  suit or proceeding
is an indemnifiable  Loss pursuant to Section 6.1 or 6.2, have the right, at the
cost and expense of the  indemnifying  party,  to defend such action in the name
and on  behalf of the  indemnified  party  (using  counsel  satisfactory  to the
indemnified  party),  and, in connection  with any such action,  the indemnified
party and the  indemnifying  party agree to render to each other such assistance
as may reasonably be required in order to ensure proper and adequate  defense of
such action,  provided,  however, that an indemnified party shall have the right
to retain  its own  counsel,  with fees and  expenses  paid by the  indemnifying
party, if  representation  of such indemnified  party by counsel retained by the
indemnifying  party  would be  inappropriate  because  of  actual  or  potential
differing  interests between such indemnified party and the indemnifying  party.
If the indemnifying party shall fail to defend such action,  suit or proceeding,
then the  indemnified  party shall have the right to defend such action  without
prejudice  to its rights to  indemnification  under  Section  6.1 or 6.2 and, in
connection therewith,  the indemnified party and the indemnifying party agree to
render to each other such  assistance as may  reasonably be required in order to
ensure proper and adequate defense of such action. Neither the indemnified party
nor the  indemnifying  party shall make any  settlement of any claim which might
give rise to  liability  of the  indemnifying  party  under the  indemnification
provisions  contained  herein without the written  consent of each party,  which
consent shall not be unreasonably withheld, delayed or conditioned.

<PAGE>

     7. GENERAL.

          7.1.  Expenses.  All  expenses  of  the  preparation,   execution  and
consummation  of this  Agreement  and of the  transactions  contemplated  hereby
including,  without limitation,  attorneys',  accountants' and outside advisors'
fees and disbursements, shall be borne by the party incurring such expense.

          7.2.   Entire   Agreement.   This   Agreement   contains   the  entire
understanding   of  the  parties  and  supersedes   all  prior   agreements  and
understandings  relating to the subject matter hereof and this  Agreement  shall
not be  amended or waived  (in full or in part)  except by a written  instrument
hereafter signed by all of the parties hereto.

          7.3.  Assignment.  None of the parties hereto may assign its rights or
delegate its obligations under this Agreement without the written consent of the
other parties hereto.  This Agreement and all of the provisions  hereof shall be
binding  upon and inure  only to the  benefit  of the  parties  hereto and their
respective heirs, executors, personal representatives and successors.

          7.4.  Further  Action.  Each  of the  parties  hereto  shall  use  all
reasonable  efforts to do, or cause to be done, all things necessary,  proper or
advisable under applicable law to carry out the provisions of this Agreement and
shall execute and deliver such  documents and other papers as may be required to
carry out the provisions of this Agreement.

          7.5.  Notices.  All  notices,  requests,  claims,  demands  and  other
communications  hereunder  shall be in  writing  and  shall be  deemed  given if
delivered personally or by fax or mailed by registered or certified mail (return
receipt  requested) to the parties at the following  addresses (or at such other
address for a party as shall be specified by like notice):

                  if to Buyer:

                           Eurofortune Holding, S.A.
                           45 Rue Siggy vu Letzebuerg
                           L 1933 Luxembourg
                           Luxembourg
                           Attention: Me. Alain Sereyjol-Garros

                  if to the Company:
                           Heritage Worldwide, Inc.
                           337 Avenue de Bruxelles - 83507
                           La Seyne-Sur-Mer, France
                           Attention: Claude Couty
                           Telecopy: (33) 494-1098-11

<PAGE>

                  in each case, with a copy to:

                           Edwards & Angell LLP
                           350 East Las Olas Boulevard
                           Suite 1150
                           Fort Lauderdale, Florida  33301
                           Attention:  Leslie J. Croland, P.A.
                           Telecopy: (954) 727-2601

                  if to Seller:

                           HEM Mutual Assurance LLC
                           c/o HEM Mutual Assurance Limited
                           38 Hertford Street
                           London W1J 7SG
                           United Kingdom
                           Attention:  Fabrice Viguier or James Loughran
                           Telecopy:  [011 020 7355 4975]

                           and

                           Global Emerging Markets
                           888 Seventh Avenue
                           16th Floor
                           New York, New York  10106
                           Attention:  Chris Brown
                           Telecopy: (212) 265-4035

                  with a copy to:

                           Venturini & Associates
                           230 Park Avenue
                           Suite 545
                           New York, NY  10169
                           Attention:  August C. Venturini, Esq.
                           Telecopy: (212) 949-6162

<PAGE>

                           and

                           Gottbetter & Partners, LLP
                           488 Madison Avenue
                           New York, New York 10002
                           Attention: Adam S. Gottbetter, Esq.
                           Telecopy No.: (212) 400-6901

          7.6. Severability. If any term or other provision of this Agreement is
invalid,  illegal or incapable  of being  enforced by any rule of law, or public
policy, all other conditions and provisions of this Agreement shall nevertheless
remain in full force and effect so long as the  economic or legal  substance  of
the transactions  contemplated  thereby is not affected in any manner materially
adverse to any party. Upon such  determination  that any term or other provision
is invalid,  illegal or incapable of being  enforced,  the parties  hereto shall
negotiate  in good faith to modify this  Agreement  so as to effect the original
intent of the parties as closely as possible in a mutually  acceptable manner in
order that the  transactions  contemplated  by this  Agreement be consummated as
originally contemplated to the fullest extent possible.

          7.7.  Headings.  The  headings of  Sections  and  Subsections  are for
reference only and shall not limit or control the meaning thereof.

          7.8.  Counterparts.   This  Agreement  may  be  executed  in  multiple
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument, and the different parties
to this Agreement need not execute the same counterpart.

          7.9.  Exhibits  and  Schedules.  All  exhibits  and  schedules to this
Agreement  are  hereby  incorporated  by  reference  and  made  a part  of  this
Agreement. Each such exhibit and schedule shall be read independent of any other
exhibit  or  schedule.   The  disclosure  on  the  schedules   shall  be  deemed
representations  and warranties made by Seller under the section number to which
such disclosure schedule relates.

          7.10. No Third Party  Beneficiaries.  Except as provided in Section 6,
nothing herein shall create or establish any third-party  beneficiary hereto nor
confer upon any person not a party to this  Agreement  any rights or remedies of
any nature or kind whatsoever under or by reason of this Agreement.

          7.11.  Governing  Law.  This  Agreement  shall  be  governed  by,  and
construed in accordance  with, the laws of the State of New York applicable to a

<PAGE>

contract  executed and  performed  in such State  without  giving  effect to the
conflicts of laws principles thereof.

          7.12. Consent to Jurisdiction.  The parties irrevocably agree that all
actions  arising  under  or  relating  to this  Agreement  and the  transactions
contemplated  hereby shall be brought  exclusively in any United States District
Court or New York State  Court  located  in New York,  New York  having  subject
matter  jurisdiction over such matters,  and each of the parties hereby consents
and agrees to such  personal  jurisdiction,  and waives any  objection as to the
venue, of such courts for purposes of such action.

          7.13.  Signatures.  This Agreement shall be effective upon delivery of
original  signature  pages or facsimile  copies thereof  executed by each of the
parties.

          7.14.  WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY WAIVES
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY OR AGAINST IT
ON ANY MATTERS WHATSOEVER,  IN CONTRACT OR IN TORT, ARISING OUT OF OR IN ANY WAY
CONNECTED WITH THIS AGREEMENT.

<PAGE>

     IN WITNESS WHEREOF,  and intending to be legally bound thereby, the parties
hereto have caused this  Agreement to be duly  executed  and  delivered by their
duly authorized officers as of the date and year first above written.

                                      EUROFORTUNE HOLDING, S.A.

                                      By:    /s/ Alain Sereyjol-Garros
                                             ----------------------------------
                                      Name:  Alain Sereyjol-Garros
                                      Title: Director

                                      HEM MUTUAL ASSURANCE, LLC

                                      By:    /s/ James Loughran
                                             ----------------------------------
                                      Name:  James Loughran
                                      Title: Manager

                                      HERITAGE WORLDWIDE, INC.

                                      By:    /s/ Jean Claude Mas
                                             ----------------------------------
                                      Name:  Jean Claude Mas
                                      Title: Chairman of the Board

<PAGE>

                                  Schedule 2.3

On or around  October 27,  2004,  Seller  converted  $100 of principal of Second
Debenture into 100,000 shares of the Company's common stock. Seller has returned
100,000  shares of the  Company's  common  stock to  escrow  (under  the  Escrow
Agreement) on or before the closing of this  Agreement,  and is  rescinding  and
unwinding  such  conversion  pursuant to Section 5.2. Such 100,000 shares of the
Company's common stock are being transferred  hereunder to the Company,  free of
any Liens.

On June 2, 2005,  Seller  attempted to convert $100 of principal  (with $1.65 of
interest) of Second Debenture into 101,650 shares of the Company's common stock.
Pursuant to Section 5.2, Seller rescinded such conversion  notice,  and it is of
no effect.  The 101,650 shares of the Company's  common stock  described in such
notice never left escrow (under the Escrow  Agreement) and are being transferred
hereunder to the Company, free of any Liens.

<PAGE>

                                  Schedule 2.4

As of the Closing Date,  there are  10,000,000  shares of the  Company's  common
stock held in escrow under the Escrow Agreement.

See Schedule 2.3 for a description of prior  conversions  and the rescission and
unwinding of such conversions.

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