Document:

EXHIBIT 4.5

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                            LOAN OWNER TRUST 200_-_,
                                    as Issuer

                                       and

                                        ,
                              as Indenture Trustee

                          Dated as of __________, 200_

                    ____________ HOME LOAN OWNER TRUST 200_-_
                          Home Loan Asset Backed Notes,
                                  Series 200_-_

                              Dated __________ __,

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                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                    ARTICLE I

                                   DEFINITIONS

Section 1.01  Definitions....................................................2
Section 1.02  Incorporation by Reference of Trust Indenture Act..............9
Section 1.03  Rules of Construction..........................................9

                                   ARTICLE II

                                    THE NOTES

Section 2.01  Form..........................................................10
Section 2.02  Execution, Authentication, Delivery and Dating................10
Section 2.03  Registration; Registration of Transfer and Exchange...........11
Section 2.04  Mutilated, Destroyed, Lost or Stolen Notes....................12
Section 2.05  Persons Deemed Note Owners....................................13
Section 2.06  Payment of Principal and/or Interest; Defaulted Interest......13
Section 2.07  Cancellation..................................................14
Section 2.08  Conditions Precedent to the Authentication of the Notes.......14
Section 2.09  Release of Collateral.........................................16
Section 2.10  Book-Entry Notes..............................................17
Section 2.11  Notices to Clearing Agency....................................17
Section 2.12  Definitive Notes..............................................18
Section 2.13  Tax Treatment.................................................18

                                   ARTICLE III

                                    COVENANTS

Section 3.01  Payment of Principal and/or Interest..........................18
Section 3.02  Maintenance of Office or Agency...............................19
Section 3.03  Money for Payments to Be Held in Trust........................19
Section 3.04  Existence.....................................................21
Section 3.05  Protection of Collateral......................................21
Section 3.06  Annual Opinions as to Collateral..............................22
Section 3.07  Performance of Obligations....................................22
Section 3.08  Negative Covenants............................................23
Section 3.09  Annual Statement as to Compliance.............................24
Section 3.10  Covenants of the Issuer.......................................25

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Section 3.11  Restricted Payments...........................................25
Section 3.12  Treatment of Notes as Debt for Tax Purposes...................25
Section 3.13  Notice of Events of Default...................................25
Section 3.14  Further Instruments and Acts..................................25

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

Section 4.01  Satisfaction and Discharge of Indenture.......................26
Section 4.02  Application of Trust Money....................................27
Section 4.03  Repayment of Moneys Held by Paying Agent......................27

                                    ARTICLE V

                                    REMEDIES

Section 5.01  Events of Default.............................................28
Section 5.02  Acceleration of Maturity; Rescission and Annulment............29
Section 5.03  Collection of Indebtedness and Suits for Enforcement by
               Indenture Trustee............................................30
Section 5.04  Remedies; Priorities..........................................33
Section 5.05  Optional Preservation of the Collateral.......................35
Section 5.06  Limitation of Suits...........................................35
Section 5.07  Unconditional Rights of Noteholders to Receive Principal
               and/or Interest..............................................36
Section 5.08  Restoration of Rights and Remedies............................36
Section 5.09  Rights and Remedies Cumulative................................36
Section 5.10  Delay or Omission Not a Waiver................................36
Section 5.11  Control by Noteholders........................................36
Section 5.12  Waiver of Past Defaults.......................................37
Section 5.13  Undertaking For Costs.........................................37
Section 5.14  Waiver of Stay or Extension Laws..............................38
Section 5.15  Action on Notes...............................................38
Section 5.16  Performance and Enforcement of Certain Obligations............38
Section 5.17  Rights in Respect of Insolvency Proceedings...................39
Section 5.18  [Effect of Payments by the Securities Insurer; Subrogation....40

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

Section 6.01  Duties of Indenture Trustee...................................40
Section 6.02  Rights of Indenture Trustee...................................42
Section 6.03  Individual Rights of Indenture Trustee........................42
Section 6.04  Indenture Trustee's Disclaimer................................42
Section 6.05  Notices of Default............................................42

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Section 6.06  Reports by Indenture Trustee to Holders.......................43
Section 6.07  Compensation and Indemnity....................................43
Section 6.08  Replacement of Indenture Trustee..............................43
Section 6.09  Successor Indenture Trustee by Merger.........................44
Section 6.10  Appointment of Co-Indenture Trustee or Separate Indenture
               Trustee......................................................45
Section 6.11  Eligibility; Disqualification.................................46
Section 6.12  Preferential Collection of Claims Against Issuer..............46
Section 6.13  Waiver of Setoff..............................................46

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

Section 7.01  Issuer to Furnish Indenture Trustee Names and Addresses
               of Noteholders...............................................46
Section 7.02  Preservation of Information; Communications to Noteholders....47
Section 7.03  Reports by Issuer.............................................47
Section 7.04  Reports by Indenture Trustee..................................47

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

Section 8.01  Collection of Money and Claims Under the Guaranty Policy......48
Section 8.02  Trust Accounts; Payments......................................48
Section 8.03  General Provisions Regarding Accounts.........................49
Section 8.04  Servicer's Monthly Statements.................................50
Section 8.05  Release of Collateral.........................................50
Section 8.06  Opinion of Counsel............................................51

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

Section 9.01  Supplemental Indentures Without Consent of Noteholders........51
Section 9.02  Supplemental Indentures with Consent of Noteholders...........52
Section 9.03  Execution of Supplemental Indentures..........................54
Section 9.04  Effect of Supplemental Indentures.............................54
Section 9.05  Conformity with Trust Indenture Act...........................54
Section 9.06  Reference in Notes to Supplemental Indentures.................54
Section 9.07  Amendments to Owner Trust Agreement...........................54

                                     -iii-

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                                    ARTICLE X

                               REDEMPTION OF NOTES

Section 10.01 Redemption....................................................55
Section 10.02 Form of Redemption Notice.....................................55
Section 10.03 Notes Payable on Redemption Date; Provision for Payment
               of Indenture Trustee [and Securities Insurer]................55

                                   ARTICLE XI

                                  MISCELLANEOUS

Section 11.01 Compliance Certificates and Opinions, Etc.....................56
Section 11.02 Form of Documents Delivered to Indenture Trustee..............57
Section 11.03 Acts of Noteholders...........................................58
Section 11.04 Notices, Etc., to Indenture Trustee, Issuer, Rating
               Agencies [and Securities Insurer.............................59
Section 11.05 Notices to Noteholders; Waiver................................61
Section 11.06 Conflict With Trust Indenture Act.............................61
Section 11.07 Effect of Headings and Table of Contents......................61
Section 11.08 Successors and Assigns........................................61
Section 11.09 Separability..................................................61
Section 11.10 Benefits of Indenture.........................................62
Section 11.11 Legal Holidays................................................62
Section 11.12 Governing Law.................................................62
Section 11.13 Counterparts..................................................62
Section 11.14 Recording of Indenture........................................62
Section 11.15 Owner Trust Obligation........................................62
Section 11.16 No Petition...................................................63
Section 11.17 Inspection....................................................63
Section 11.18 [Grant of Noteholder Rights to Securities Insurer.............63
Section 11.19 Third Party Beneficiary.......................................63
Section 11.20 Suspension and Termination of Securities Insurer's Rights.....64

                                    EXHIBITS

EXHIBIT A - Forms of Notes

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            This Indenture entered into effective _________, 200_ ("Indenture"),
between ___________ HOME LOAN OWNER TRUST 200_-_, a Delaware business trust, as
Issuer (the "Issuer"), and ____________________________, as Indenture Trustee
(the "Indenture Trustee"),

                          W I T N E S S E T H T H A T:

            In consideration of the mutual covenants herein contained, the
Issuer and the Indenture Trustee hereby agree as follows for the benefit of each
of them and for the equal and ratable benefit of the holders of the Issuer's
Home Loan Asset Backed Notes, Series 200_-_ (the "Notes") [and _____________
(the "Securities Insurer")].

                                 GRANTING CLAUSE

            Subject to the terms of this Indenture, the Issuer hereby Grants on
the Closing Date, to the Indenture Trustee, as Indenture Trustee for the benefit
of the Holders of the Notes [and the Securities Insurer,] all of the Issuer's
right, title and interest in and to: (i) the Trust Estate (as defined in the
Sale and Servicing Agreement); (ii) the Sale and Servicing Agreement (including
the Issuer's right to cause the Transferor to repurchase the Home Loans from the
Issuer under certain circumstances described therein); (iii) all present and
future claims, demands, causes of action 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, including
all proceeds of the conversion thereof, voluntary or involuntary, into cash or
other liquid property, all cash proceeds, accounts, accounts receivable, notes,
drafts, acceptances, chattel paper, checks, deposit accounts, property insurance
proceeds, condemnation awards, 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; (iv) all funds on deposit from time to time in the Trust Accounts
(including the Certificate Distribution Account); and (v) all other property of
the Owner Trust from time to time (collectively, 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, and to secure compliance with the provisions of this Indenture, all as
provided in this Indenture.

            The Indenture Trustee, as Indenture Trustee on behalf of the Holders
of the Notes [and the Securities Insurer,] acknowledges such Grant, accepts the
trusts hereunder and agrees to perform its duties required in this Indenture to
the best of its ability to the end that the interests of the Holders of the
Notes may adequately and effectively be protected. The Indenture Trustee agrees
and acknowledges that possession of the Indenture Trustee's Home Loan Files will
be held by the Custodian for the benefit of the Indenture Trustee in
____________. The Indenture Trustee further agrees and acknowledges that each
other item of Collateral that is physically delivered to the Indenture Trustee
will be held on behalf of the Indenture Trustee in _________________.

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                                    ARTICLE I

                                   DEFINITIONS

            Section 1.01 Definitions. (a) Except as otherwise specified herein
or as the context may otherwise require, the following terms have the respective
meanings set forth below for all purposes of this Indenture. Except as otherwise
specified herein or as the context may otherwise require, capitalized terms used
but not otherwise defined herein have the respective meanings set forth in the
Sale and Servicing Agreement for all purposes of this Indenture.

            "Act" has the meaning specified in Section 11.03(a) hereof.

            "Administration Agreement" means the Administration Agreement, dated
as of __________, 200_, among the Administrator, the Issuer and the Company.

            "Administrator" means ___________________, a ______________________,
or any successor Administrator under the Administration Agreement.

            "Affiliate" means, with respect to any specified Person, any other
Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, "control" when used with respect to
any Person means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" and "controlled" have
meanings correlative to the foregoing.

            "Authorized Officer" means, 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 on the Closing Date (as
such list may be modified or supplemented from time to time thereafter) and, so
long as the Administration Agreement is in effect, any Vice President or more
senior officer of the Administrator who is authorized to act for the
Administrator in matters relating to the Issuer and to be acted upon by the
Administrator pursuant to the Administration Agreement and who is identified on
the list of Authorized Officers delivered by the Administrator to the Indenture
Trustee if the Administrator is not the Indenture Trustee (as such list may be
modified or supplemented from time to time thereafter).

            "Basic Documents" means the Certificate of Owner Trust, the Owner
Trust Agreement, this Indenture, the Sale and Servicing Agreement, the Servicing
Agreement, the Home Loan Purchase Agreement, the Administration Agreement, the
Insurance Agreement, the Indemnification Agreement, the Custodial Agreement, the
Note Depository Agreement, the Notes and other documents and certificates
delivered in connection herewith or therewith.

            "Book-Entry Notes" means a beneficial interest in the Notes,
ownership and transfers of which shall be made through book entries by a
Clearing Agency as described in Section 2.10 hereof.

            "Business Day" means any day other than (a) a Saturday or Sunday, or
(b) a day on which banking institutions are authorized or obligated by law or
executive order to be closed

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in a city at any of the following locations: (i) The City of New York, (ii)
where the corporate trust office of the Indenture Trustee is located, (iv) where
the servicing operations of the Servicer are primarily located or (v) where the
master servicing operations of the Master Servicer are primarily located.

            "Certificate of Owner Trust" means the certificate of trust of the
Issuer substantially in the form of Exhibit B to the Owner Trust Agreement.

            "Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act.

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

            "Closing Date" means ____________, 200_.

            "Code" means the Internal Revenue Code of 1986, as amended from time
to time, and Treasury Regulations promulgated thereunder.

            "Collateral" has the meaning specified in the Granting Clause of
this Indenture.

            "Commission" means the Securities and Exchange Commission.

            "Company" means ___________________________, a
________________________, or any successor in interest thereto.

            "Corporate Trust Office" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at date of execution of this Agreement is located at
______________________________________ _____________________, or at such other
address as the Indenture Trustee may designate from time to time by notice to
the Noteholders and the Issuer, or the principal corporate trust office of any
successor Indenture Trustee at the address designated by such successor
Indenture Trustee by notice to the Noteholders and the Issuer.

            "Default" means any occurrence that is, or with notice or the lapse
of time or both would become, an Event of Default.

            "Definitive Notes" means the Notes as set forth in Section 2.12
hereof.

            "Depositor" shall mean [________________________________], a
[_______] [______________], in its capacity as depositor under the Sale and
Servicing Agreement, or any successor in interest thereto.

            "Depository Institution" means any depository institution or trust
company, including the Indenture Trustee, that (a) is incorporated under the
laws of the United States of America or any State thereof, (b) is subject to
supervision and examination by federal or state banking authorities and (c) has
outstanding unsecured commercial paper or other short-term

                                      -3-

<PAGE>

unsecured debt obligations that are rated A-1 by ___ (or comparable ratings if
___ is not the Rating Agency).

            "DTC" means The Depository Trust Company, a New York corporation, or
any successor thereto.

            "Due Period" means, with respect to any Payment Date, the period
commencing on the ____ day of the calendar month immediately preceding the month
of such Payment Date and ending on the ___ day of the month in which such
Payment Date occurs.

            "Event of Default" has the meaning specified in Section 5.01 hereof.

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            "Executive Officer" means, with respect to any corporation, the
Chief Executive Officer, Chief Operating Officer, Chief Financial Officer,
President, Executive Vice President, any Vice President, the Secretary or the
Treasurer of such corporation; and with respect to any partnership, any general
partner thereof.

            "Grant" means mortgage, 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 this 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 the Collateral 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.

            "Holder" or "Noteholder" means the Person in whose name a Note is
registered on the Note Register.

            "Indenture Trustee" means __________________, a ___________________,
as Indenture Trustee under this Indenture, or any successor Indenture Trustee
hereunder.

            "Independent" means, when used with respect to any specified Person,
that the Person (a) is in fact independent of the Issuer, any other obligor on
the Notes, the Transferor[, the Securities Insurer] and any Affiliate of any of
the foregoing Persons, (b) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the
Transferor[, the Securities Insurer] or any Affiliate of any of the foregoing
Persons and (c) is not connected with the Issuer, any such other obligor, the
Transferor[, the Securities Insurer] 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" means a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the

                                      -4-

<PAGE>

applicable requirements of Section 11.01 hereof, made by an Independent
appraiser or other expert appointed by an Issuer Order 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.

            ["Insurance Agreement" means the Insurance and Indemnification
Agreement, dated as of ___________, 200_, among the Securities Insurer,
_________________, as Transferor and Master Servicer, the Depositor and the
Issuer.]

            "Issuer" or "Owner Trust" means __________ Home Loan Owner Trust
200_-_ until a successor replaces it and, thereafter, means the successor and,
for purposes of any provision contained herein and required by the TIA, each
other obligor on the Notes.

            "Issuer Order" and "Issuer Request" mean 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.

            "Majority Noteholders" means until such time as the Note Principal
Balance of the Notes has been reduced to zero, the holder or holders of in
excess of 50% of the Note Principal Balance of all Notes then Outstanding.

            "Master Servicer" means _____________________, a __________________.

            "Maturity Date" means, with respect to the Notes, _________, 20__.

            "Note" means a ______________ Home Loan Owner Trust 200_-_, Home
Loan Asset Backed Note, Series 200_-_.

            "Note Depository Agreement" means the agreement to be entered into
among the Issuer, the Indenture Trustee and The Depository Trust Company, as the
initial Clearing Agency, relating to the Book-Entry Notes.

            "Note Owner" means, with respect to a Book-Entry Note, the Person
that is the beneficial owner of such Book-Entry Note, as reflected on the books
of the Clearing Agency or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing
Agency).

            "Note Register" and "Note Registrar" have the respective meanings
specified in Section 2.03 hereof.

            "Officer's Certificate" means a certificate signed by any Authorized
Officer of the Issuer or, if authorized under the Administration Agreement, the
Administrator or the Master Servicer on behalf of the Issuer, under the
circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.01 hereof, and delivered to the Indenture Trustee.
Unless otherwise specified, any reference in this Indenture to an Officer's
Certificate shall be to an Officer's Certificate of any Authorized Officer of
the Issuer or, if authorized under the Administration Agreement, the
Administrator.

                                      -5-

<PAGE>

            "Opinion Of Counsel" means one or more written opinions of counsel
who may, except as otherwise expressly provided in this Indenture, be an
employee of or counsel to the party required to provide such opinion or opinions
and, in each such case, who shall be satisfactory to the Indenture Trustee [and
the Securities Insurer], and which opinion or opinions shall be addressed to the
Indenture Trustee, as Indenture Trustee, [and the Securities Insurer] and shall
comply with any applicable requirements of Section 11.01 hereof and shall be in
form and substance satisfactory to the Indenture Trustee [and the Securities
Insurer].

            "Outstanding" means, with respect to any Note and as of the date of
determination, any Note theretofore authenticated and delivered under this
Indenture except:

            (i) Notes theretofore cancelled by the Note Registrar or delivered
      to the Note Registrar for cancellation;

            (ii) Notes or portions thereof the payment for which money in the
      necessary amount has theretofore been deposited with the Indenture Trustee
      or any Paying Agent in trust for the Holders of such Notes (provided,
      however, that if such Notes are to be redeemed, notice of such redemption
      has been duly given pursuant to this Indenture or provision for such
      notice satisfactory to the Indenture Trustee has been made);

            (iii) Notes in exchange for or in lieu of which other Notes have
      been authenticated and delivered pursuant to this Indenture unless proof
      satisfactory to the Indenture Trustee is presented that any such Notes are
      held by a bona fide purchaser; provided, however, that in determining
      whether the Holders of the requisite percentage of Outstanding Notes have
      given any request, demand, authorization, direction, notice, consent or
      waiver hereunder or under any Basic Document, Notes owned by the Issuer,
      any other obligor upon the Notes, the Transferor or any Affiliate of any
      of the foregoing Persons shall be disregarded and deemed not to be
      Outstanding, except that, in determining whether the Indenture Trustee
      shall be protected in relying upon any such request, demand,
      authorization, direction, notice, consent or waiver, only Notes that the
      Indenture Trustee knows to be owned in such manner shall be disregarded.
      Notes owned in such manner that have been pledged in good faith may be
      regarded as Outstanding if the pledgee establishes to the satisfaction of
      the Indenture Trustee that the pledgee has the right so to act with
      respect to such Notes and that the pledgee is not the Issuer, any other
      obligor upon the Notes, the Transferor or any Affiliate of any of the
      foregoing Persons; and

            (iv) Notes for which the related Maturity Date has occurred;

[provided, that Notes that have been paid with funds provided under the Guaranty
Policy shall be deemed to be Outstanding until the Securities Insurer has been
reimbursed with respect thereto as evidenced by a written notice from the
Securities Insurer delivered to the Indenture Trustee, and the Securities
Insurer shall be deemed to the Holder thereof to the extent of any payments made
by the Securities Insurer.]

            "Outstanding Amount" means the aggregate principal amount of the
Notes, Outstanding at the date of determination.

                                      -6-

<PAGE>

            "Owner Trust Agreement" means the Owner Trust Agreement, dated as of
___________, 200_, among [________________________________], as Depositor, the
Company, ______________, as Owner Trustee, and _____________________, as Paying
Agent.

            "Owner Trustee" means __________________________, not in its
individual capacity but solely as Owner Trustee under the Owner Trust Agreement,
or any successor Owner Trustee under the Owner Trust Agreement.

            "Paying Agent" means the Indenture Trustee or any other Person that
meets the eligibility standards for the Indenture Trustee specified in Section
6.11 hereof and is authorized by the Issuer to make payments to and payments
from the Note Payment Account, including payment of principal of or interest on
the Notes on behalf of the Issuer.

            "Payment Date" means the ____ day of any month or if such ____ day
is not a Business Day, the first Business Day immediately following such day,
commencing in ______ 200_.

            "Person" means any individual, corporation, estate, partnership,
joint venture, association, joint stock company, trust (including any
beneficiary thereof), unincorporated organization, limited liability company,
limited liability partnership or government or any agency or political
subdivision thereof.

            "Predecessor Note" means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.04 hereof in lieu of a mutilated,
lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

            "Proceeding" means any suit in equity, action at law or other
judicial or administrative proceeding.

            "Rating Agency" means either or both of (i) ______ or (ii) ______.
If no such organization or successor thereto is any longer in existence, "Rating
Agency" shall be a nationally recognized statistical rating organization or
other comparable Person designated by the Master Servicer [and approved by the
Securities Insurer], notice of which designation shall have been given to the
Indenture Trustee[, the Securities Insurer], the Servicer and the Issuer.

            "Rating Agency Condition" means, with respect to any action to which
a Rating Agency Condition applies, that each Rating Agency shall have been given
10 days (or such shorter period as is acceptable to each Rating Agency) prior
notice thereof and that each of the Depositor, the Servicer, the Master
Servicer[, the Securities Insurer], the Owner Trustee and the Issuer shall have
been notified by the Rating Agencies in writing that such action will not result
in a reduction, withdrawal or qualification of the then current internal ratings
assigned to the Notes by each of the Rating Agencies [without respect to the
Securities Insurer.

            "Record Date" means, as to each Payment Date, the ____ Business Day
of the month immediately preceding the month in which such Payment Date occurs.

                                      -7-

<PAGE>

            "Redemption Date" means in the case of a redemption of the Notes
pursuant to Section 10.01 hereof, the Payment Date specified by the Master
Servicer or the Issuer pursuant to such Section 10.01.

            "Registered Holder" means the Person in the name of which a Note is
registered on the Note Register on the applicable Record Date.

            "Residual Interest Certificate" has the meaning assigned to such
term in Section 1.1 of the Owner Trust Agreement.

            "Responsible Officer" means, with respect to the Indenture Trustee,
any officer within the Corporate Trust Office of the Indenture Trustee,
including any Vice President, Assistant Vice President, Assistant Treasurer,
Assistant Secretary or any other officer of the Indenture Trustee customarily
performing functions similar to those performed by any of the above designated
officers 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.

            "Sale and Servicing Agreement" means the Sale and Master Servicing
Agreement dated as of ____________, 200_, among the Issuer, the Depositor, the
Transferor and Master Servicer and ____________________, as Indenture Trustee.

            "Securities Act" means the Securities Act of 1933, as amended.

            "Securities Insurer" means _________________, a ___________________
------------------.

            "Servicer" shall mean _________________, a __________________, in
its capacity as servicer under the Servicing Agreement, and any successor
Servicer thereunder.

            "Servicing Agreement" shall mean the Servicing Agreement [which
incorporates by reference the Agreement Regarding Standard Servicing Terms,
each] dated as of __________, 200_, between ___________ and the Servicer.

            "State" means any one of the States of the United States of America
or the District of Columbia.

            "Transferor" means ____________________, a ________________________.

            "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939
as in force on the date hereof, unless otherwise specifically provided.

            "UCC" means, unless the context otherwise requires, the Uniform
Commercial Code as in effect in the relevant jurisdiction, as amended from time
to time.

                                      -8-

<PAGE>

            Section 1.02 Incorporation by Reference of Trust Indenture Act.

            (a) Whenever this Indenture refers to a provision of 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:

            "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.

            (b) All other TIA terms used in this Indenture that are defined in
the TIA, defined by TIA reference to another statute or defined by rule of the
Securities and Exchange Commission have the respective 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 in the United States 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 (as provided in such agreements) and
      includes (in the case of agreements or instruments) references to all
      attachments thereto and instruments incorporated therein; references to a
      Person are also to its permitted successors and assigns.

                                      -9-

<PAGE>

                                   ARTICLE II

                                    THE NOTES

            Section 2.01 Form. The Notes shall be designated as the "_________
Home Loan Owner Trust 200_-_ Home Loan Asset Backed Notes, Series 200_-_". Each
Note shall be in substantially the form set forth in EXHIBIT A hereto, with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture, and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon as
may, consistently herewith, be determined by the officers executing such Notes,
as evidenced by their execution thereof. Any portion of the text of any Note may
be set forth on the reverse thereof, with an appropriate reference thereto on
the face of the Note.

            The Definitive Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods, all as determined by
the officers executing such Notes, as evidenced by their execution of such
Notes.

            Each Note shall be dated the date of its authentication. The terms
of the Notes are set forth in EXHIBIT A hereto. The terms of each Note are part
of the terms of this Indenture.

            Section 2.02 Execution, Authentication, Delivery and Dating. The
Notes shall be executed on behalf of the Issuer by an Authorized Officer of the
Owner Trustee or the Administrator. 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 Owner Trustee or the Administrator
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.

            Subject to the satisfaction of the conditions set forth in Section
2.08 hereof, the Indenture Trustee shall upon Issuer Order authenticate and
deliver the Notes for original issue in the following principal amount:
$_____________. The aggregate principal of the Notes Outstanding at any time may
not exceed such amount.

            The Notes that are authenticated and delivered by the Indenture
Trustee to or upon the order of the Issuer on the Closing Date shall be dated
___________, 200_. All other Notes that are authenticated after the Closing Date
for any other purpose under the Indenture shall be dated the date of their
authentication. The Notes shall be issuable as registered Notes in the minimum
denomination of $25,000 initial principal amount and integral multiples of
$1,000 in excess thereof; provided however, that any Note may be issued in such
denominations as may be necessary to represent the remainder of the aggregate
principal amount of the Notes.

            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 Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be

                                      -10-

<PAGE>

conclusive evidence, and the only evidence, that such Note has been duly
authenticated and delivered hereunder.

            Section 2.03 Registration; Registration of Transfer and Exchange.
The Issuer shall cause to be kept a register (the "Note Register") in which,
subject to such reasonable regulations as it may prescribe, the Issuer shall
provide for the registration of Notes and the registration of transfers of
Notes. The Indenture Trustee initially shall be the "Note Registrar" for the
purpose of registering Notes and transfers of Notes as herein provided. Upon any
resignation of any Note Registrar, the Issuer shall promptly appoint a successor
or, if it elects not to make such an appointment, assume the duties of Note
Registrar.

            If a Person other than the Indenture Trustee is appointed by the
Issuer as Note Registrar, the Issuer will give the Indenture Trustee [and the
Securities Insurer] prompt written notice of the appointment of such Note
Registrar and of the location, and any change in the location, of the Note
Register, and the Indenture Trustee [and the Securities Insurer] shall have the
right to inspect the Note Register at all reasonable times and to obtain copies
thereof, and the Indenture Trustee [and the Securities Insurer] shall have the
right to rely upon a certificate executed on behalf of the Note Registrar by an
Executive Officer thereof as to the names and addresses of the Holders of the
Notes and the principal amounts and number of such Notes.

            Upon surrender for registration of transfer of any Note at the
office or agency of the Issuer to be maintained as provided in Section 3.02
hereof, the Issuer shall execute, and the Indenture Trustee shall authenticate
and the Noteholder shall obtain from the Indenture Trustee, in the name of the
designated transferee or transferees, one or more new Notes in any authorized
denominations, of a like aggregate principal amount.

            At the option of the Holder, Notes may be exchanged for other Notes
in any authorized denominations, of a like aggregate principal amount upon
surrender of the Notes to be exchanged at such office or agency. Whenever any
Notes are so surrendered for exchange, the Issuer shall execute, and the
Indenture Trustee shall authenticate and the Noteholder shall obtain from the
Indenture Trustee, the Notes which the Noteholder making the exchange is
entitled to receive.

            All Notes issued upon any registration of transfer or exchange of
Notes shall be the valid obligations of the Issuer, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

            Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in form satisfactory to the Indenture Trustee duly executed by, the
Holder thereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agents' Medallion Program ("Stamp") or
such other "signature guarantee program" as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Exchange Act.

                                      -11-

<PAGE>

            No service charge shall be made to a Holder [or the Securities
Insurer] for any registration of transfer or exchange of Notes, but the Issuer
may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Notes, other than exchanges pursuant to Section 9.06 hereof not
involving any transfer.

            The preceding provisions of this Section 2.03 notwithstanding, the
Issuer shall not be required to make, and the Note Registrar need not register,
transfers or exchanges of Notes selected for redemption or of any Note for a
period of 15 days preceding the due date for any payment with respect to such
Note.

            Section 2.04 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee [and the Securities
Insurer] such security or indemnity as may reasonably be required by them to
hold the Issuer[, the Securities Insurer] and the Indenture Trustee harmless,
then, in the absence of notice to the Issuer, the Note Registrar or the
Indenture Trustee that such Note has been acquired by a bona fide purchaser, an
Authorized Officer of the Owner Trustee or the Administrator on behalf of the
Issuer shall execute, and upon its request the Indenture Trustee 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, or shall have been called
for redemption, instead of issuing a replacement Note, the Issuer may pay such
destroyed, lost or stolen Note when so due or payable or upon the Redemption
Date 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[, the Securities Insurer] and the Indenture Trustee shall be entitled to
recover such replacement Note (or such payment) from the Person to which it was
delivered or any Person taking such replacement Note from such Person to which
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 Securities Insurer] or the Indenture Trustee in
connection therewith.

            Upon the issuance of any replacement Note under this Section 2.04,
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 Indenture Trustee) connected therewith.

            Every replacement Note issued pursuant to this Section 2.04 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 2.04 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.

                                      -12-

<PAGE>

            Section 2.05 Persons Deemed Note Owners. Prior to due presentment
for registration of transfer of any Note, the Issuer[, the Securities Insurer],
the Indenture Trustee and any agent of the Issuer[, the Securities Insurer] or
the Indenture Trustee may treat the Person in the name of which any Note is
registered (as of the day of determination) as the Note Owner 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 Securities Insurer], the Indenture Trustee or any agent of the
Issuer[, the Securities Insurer] or the Indenture Trustee shall be affected by
notice to the contrary.

            Section 2.06 Payment of Principal and/or Interest; Defaulted
Interest.

            (a) Each Note shall accrue interest at the Note Interest Rate, and
such interest shall be payable on each Payment Date as specified in EXHIBIT A
hereto, subject to Section 3.01 hereof. 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 be paid to the Person in
the name of which such Note (or one or more Predecessor Notes) is registered on
the Record Date by check mailed first-class postage prepaid to such Person's
address as it appears on the Note Register on such Record Date, except that,
unless Definitive Notes have been issued pursuant to Section 2.12 hereof, with
respect to Notes registered on the Record Date in the name of the nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payment will be made
by wire transfer in immediately available funds to the account designated by
such nominee and except for the final installment of principal payable with
respect to such Note on a Payment Date or on the Maturity Date (and except for
the Termination Price for any Note called for redemption pursuant to Section
10.01 hereof), which shall be payable as provided in Section 2.06(B) below. The
funds represented by any such checks returned undelivered shall be held in
accordance with Section 3.03 hereof.

            (b) The principal of each Note shall be payable in installments on
each Payment Date as provided in the form of Note set forth in EXHIBIT A hereto.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable, if not previously paid, on the earlier of (i) the
Maturity Date, (ii) the Redemption Date or (iii) the date on which an Event of
Default shall have occurred and be continuing, if the Indenture Trustee or the
Majority Noteholders [or the Securities Insurer] shall have declared the Notes
to be immediately due and payable in the manner provided; however, that if on
the date any such Event of Default occurs[, no Securities Insurer Default exists
and is continuing, the Securities Insurer,] in its sole discretion, may
determine whether or not to accelerate payment on the Notes.

            All principal payments on the Notes shall be made pro rata to the
Noteholders. The Indenture Trustee shall notify the Person in the name of which
a Note is registered at the close of business on the Record Date preceding the
Payment Date on which the Issuer expects that the final installment of principal
of and interest on such Note will be paid. Such notice shall be mailed or
transmitted by facsimile prior to such final Payment Date and shall specify that
such final installment will be payable only upon presentation and surrender of
such Note and shall specify

                                      -13-

<PAGE>

the place where such Note may be presented and surrendered for payment of such
installment. [A copy of such form of notice shall be sent to the Securities
Insurer by the Indenture Trustee.] Notices in connection with redemptions of
Notes shall be mailed to Noteholders as provided in Section 10.02 hereof.
[Promptly following the date on which all principal of and interest on the Notes
has been paid in full and the Notes have been surrendered to the Indenture
Trustee, the Indenture Trustee shall, if the Securities Insurer has paid any
amount in respect of the Notes under the Guaranty Policy that has not been
reimbursed to the Securities Insurer, deliver such surrendered Notes to the
Securities Insurer.]

            Section 2.07 Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and shall promptly be cancelled by the Indenture Trustee. The Issuer may at any
time deliver to the Indenture Trustee 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 promptly be cancelled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for
any Notes canceled as provided in this Section 2.07, except as expressly
permitted by this Indenture. All canceled Notes may be held or disposed of by
the Indenture Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Order that they be destroyed or returned to it; provided, however, that such
Issuer Order is timely and the Notes have not been previously disposed of by the
Indenture Trustee.

            Section 2.08 Conditions Precedent to the Authentication of the
Notes. The Notes may be authenticated by the Indenture Trustee, upon Issuer
Request and upon receipt by the Indenture Trustee of the following:

            (a) An Issuer Order authorizing the execution and authentication of
such Notes by the Issuer.

            (b) All of the items of Collateral which shall be delivered to the
Indenture Trustee or its designee.

            (c) An executed counterpart of the Owner Trust Agreement.

            (d) An Opinion of Counsel addressed to the Indenture Trustee [and
the Securities Insurer] to the effect that:

            (i) the Owner Trustee has full power, authority and legal right to
      execute, deliver and perform its obligations under the Trust Agreement and
      to consummate the transactions contemplated thereby;

            (ii) the Issuer has been duly formed, is validly existing as a
      business trust under the Business Trust Statute and has power and
      authority to execute, deliver, issue, and perform, as applicable, this
      Indenture, the Administration Agreement, the Sale and Servicing Agreement,
      [the Insurance Agreement,] the Indemnification Agreement, the Custodial
      Agreement and the Note Depository Agreement and to consummate the
      transactions contemplated thereby;

                                      -14-

<PAGE>

            (iii) assuming due authorization, execution and delivery hereof by
      each party thereto, Indenture is the valid, legal and binding agreement of
      the Issuer, enforceable against the Issuer in accordance with its terms,
      subject to applicable bankruptcy, insolvency, fraudulent conveyance,
      reorganization, moratorium, receivership or other laws relating to the
      creditors' rights generally and to general principles of equity including
      principles of commercial reasonableness, good faith and fair dealing
      (regardless of whether enforcement is sought in a proceeding in equity or
      at law) and except that the enforcement of rights with respect to
      indemnification and contribution obligations may be limited by applicable
      law;

            (iv) upon due authorization, execution and delivery of this
      Indenture by each party hereto, and due execution, authentication, and
      delivery of the Notes, such Notes will be legal, valid and binding
      obligations of the Issuer, enforceable against the Issuer in accordance
      with their terms, subject to applicable bankruptcy, insolvency, fraudulent
      conveyance, reorganization, moratorium, receivership or other laws
      relating to creditors' rights generally, and to general principles of
      equity including principles of commercial reasonableness, good faith and
      fair dealing (regardless of whether enforcement is sought in a proceeding
      at law or in equity), and will be validly issued and outstanding and
      entitled to the benefits of the Indenture;

            (v) the conditions precedent to the authentication and delivery of
      the Bonds as set forth in this Indenture have been complied with;

            (vi) on the Closing Date, the Issuer shall cause to be furnished to
      the Indenture Trustee [and the Securities Insurer] an Opinion of Counsel
      either stating that, in the opinion of such counsel, this Indenture has
      been properly recorded and filed so as to make effective the lien intended
      to be created thereby, 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 effective; and

            (vii) any other matters as the Indenture Trustee may reasonably
      request;

            (e) An Officer's Certificate complying with the requirements of
Section 11.01 hereof and stating that:

            (i) the Issuer is not in Default under this Indenture and the
      issuance of the Notes applied for will not result in any breach of any of
      the terms, conditions or provisions of, or constitute a default under, the
      Owner Trust Agreement, any indenture, mortgage, deed of trust or other
      agreement or instrument to which the Issuer is a party or by which it is
      bound, or any order of any court or administrative agency entered in any
      Proceeding to which the Issuer is a party or by which it may be bound or
      to which it may be subject, and that all conditions precedent provided in
      this Indenture relating to the authentication and delivery of the Notes
      applied for have been complied with;

            (ii) the Issuer is the owner of the all of the Home Loans, has not
      assigned any interest or participation in the Home Loans (or, if any such
      interest or participation has

                                      -15-

<PAGE>

      been assigned, it has been released) and has the right to Grant all of the
      Home Loans to the Indenture Trustee;

            (iii) the Issuer has Granted to the Indenture Trustee all of its
      right, title and interest in and to the Collateral, and has delivered or
      caused the same to be delivered to the Indenture Trustee;

            (iv) letters signed by the Rating Agencies confirming that the Notes
      have been rated "____" by _________ and "____" by __________ have been
      delivered to the Indenture Trustee;

            (v) all conditions precedent provided for in this Indenture relating
      to the authentication of the Notes have been complied with; and

            (f) A fair value certificate from _______________ with respect to
the Home Loans.

            Section 2.09 Release of Collateral.

            (a) Except as otherwise provided in subsections (b) and (c) of this
Section 2.09, Section 11.01 hereof and the terms of the Basic Documents, the
Indenture Trustee shall release property from the lien of this Indenture only
upon receipt of an Issuer Request accompanied by an Officer's Certificate, an
Opinion of Counsel and Independent Certificates in accordance with TIA Sections
314(c) and 314(d)(l) or an Opinion of Counsel in lieu of such Independent
Certificates to the effect that the TIA does not require any such Independent
Certificates.

            (b) The Servicer, on behalf of the Issuer, shall be entitled to
obtain a release from the lien of this Indenture for any Home Loan and the
related Mortgaged Property at any time (i) after a payment by the Transferor or
the Issuer of the Purchase Price of the Home Loan, (ii) after a Qualified
Substitute Home Loan is substituted for such Home Loan and payment of the
Substitution Adjustment, if any, (iii) after liquidation of the Home Loan in
accordance with Section 4.11 of the Sale and Servicing Agreement and the deposit
of all Recoveries thereon in the Collection Account, or (iv) upon the
termination of a Home Loan (due to, among other causes, a prepayment in full of
the Home Loan and sale or other disposition of the related Mortgaged Property),
if the Issuer delivers to the Indenture Trustee an Issuer Request (A)
identifying the Home Loan and the related Mortgaged Property to be released, (B)
requesting the release thereof, (C) setting forth the amount deposited in the
Collection Account with respect thereto, and (D) certifying that the amount
deposited in the Collection Account (x) equals the Purchase Price of the Home
Loan, in the event a Home Loan and the related Mortgaged Property are being
released from the lien of this Indenture pursuant to item (i) above, (y) equals
the Substitution Adjustment related to the Qualified Substitute Home Loan and
the Deleted Home Loan released from the lien of the Indenture pursuant to item
(ii) above, or (z) equals the entire amount of Recoveries received with respect
to such Home Loan and the related Mortgaged Property in the event of a release
from the lien of this Indenture pursuant to items (iii) or (iv) above.

                                      -16-

<PAGE>

            (c) The Indenture Trustee shall, if requested by the Servicer,
temporarily release or cause the Custodian temporarily to release to the
Servicer the Indenture Trustee's Home Loan File pursuant to the provisions of
Section 7.02 of the Sale and Servicing Agreement upon compliance by the Servicer
with the provisions thereof; provided, however, that the Indenture Trustee's
Home Loan File shall have been stamped to signify the Issuer's pledge to the
Indenture Trustee under the Indenture.

            Section 2.10 Book-Entry Notes. The Notes, when authorized by an
Issuer Order, will be issued in the form of typewritten Notes representing the
Book-Entry Notes, to be delivered to The Depository Trust Company, the initial
Clearing Agency, by or on behalf of the Issuer. The Book-Entry Notes shall be
registered initially on the Note Register in the name of Cede & Co., the nominee
of the initial Clearing Agency, and no Note Owner will receive a definitive Note
representing such Note Owner's interest in such Note, except as provided in
Section 2.12 hereof. Unless and until definitive, fully registered Notes (the
"Definitive Notes") have been issued to such Note Owners pursuant to Section
2.12 hereof:

            (i) the provisions of this Section 2.10 shall be in full force and
      effect;

            (ii) the Note Registrar, the Indenture Trustee [and the Securities
      Insurer] shall be entitled to deal with the Clearing Agency 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 Note Owners;

            (iii) to the extent that the provisions of this Section 2.10
      conflict with any other provisions of this Indenture, the provisions of
      this Section 2.10 shall control;

            (iv) the rights of Note Owners shall be exercised only through the
      Clearing Agency and shall be limited to those established by law and
      agreements between such Note Owners and the Clearing Agency and/or the
      Clearing Agency Participants pursuant to the Note Depository Agreement.
      Unless and until Definitive Notes are issued pursuant to Section 2.12
      hereof, the initial Clearing Agency will make book-entry transfers among
      the Clearing Agency Participants and receive and transmit payments of
      principal of and interest on the Notes to such Clearing Agency
      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 Outstanding Notes, the Clearing Agency shall
      be deemed to represent such percentage only to the extent that it has
      received instructions to such effect from Note Owners and/or Clearing
      Agency Participants owning or representing, respectively, such required
      percentage of the beneficial interest in the Notes and has delivered such
      instructions to the Indenture Trustee.

            Section 2.11 Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to such Note Owners pursuant to
Section 2.12 hereof, the Indenture

                                      -17-

<PAGE>

Trustee shall give all such notices and communications specified herein to be
given to Holders of the Notes to the Clearing Agency and shall have no
obligation to such Note Owners.

            Section 2.12 Definitive Notes.

            If (i) the Administrator advises the Indenture Trustee in writing
that the Clearing Agency is no longer willing or able to properly discharge its
responsibilities with respect to the Book-Entry Notes and the Administrator is
unable to locate a qualified successor, (ii) the Administrator at its option
advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency or (iii) after the occurrence of
an Event of Default, Owners of the Book-Entry Notes representing beneficial
interests aggregating at least a majority of the Outstanding Notes advise the
Clearing Agency in writing that the continuation of a book-entry system through
the Clearing Agency is no longer in the best interests of such Note Owners, then
the Clearing Agency shall notify all Note Owners[, the Securities Insurer] and
the Indenture Trustee of the occurrence of such event and of the availability of
Definitive Notes to Note Owners requesting the same. Upon surrender to the
Indenture Trustee of the typewritten Notes representing the Book-Entry Notes by
the Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and the Indenture Trustee shall authenticate the Definitive Notes in
accordance with the instructions of the Clearing Agency. None of the Issuer, the
Note Registrar[, the Securities Insurer] or the Indenture Trustee shall be
liable for any delay in delivery of such instructions and each of them may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the
Holders of the Definitive Notes as Noteholders.

            Section 2.13 Tax Treatment. The Issuer has entered into this
Indenture, and the Notes will be issued, with the intention that for all
purposes, including federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness of the Issuer
secured by the Collateral. The Issuer, by entering into this Indenture, and each
Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance
of an interest in the applicable Book-Entry Note), agree to treat the Notes for
all purposes, including federal, state and local income, single business and
franchise tax purposes, as indebtedness of the Issuer.

                                   ARTICLE III

                                    COVENANTS

            Section 3.01 Payment of Principal and/or Interest. The Issuer will
duly and punctually pay (or will cause to be paid duly and punctually) the
principal of and interest on the Notes in accordance with the terms of the Notes
and this Indenture. Without limiting the foregoing, subject to and in accordance
with Section 8.02(C) hereof, the Issuer will cause to be paid to the Noteholders
all amounts on deposit in the Note Payment Account on each Payment Date
deposited therein pursuant to the Sale and Servicing Agreement (less any amounts
representing income from Permitted Investments) for the benefit of the Notes.
Amounts properly withheld under the Code by any Person from a payment to any
Noteholder of interest and/or principal shall be considered as having been paid
by the Issuer [or the Securities Insurer, as applicable,] to such Noteholder for
all purposes of this Indenture. The Notes shall be non-recourse obligations of
the Issuer and shall be limited in right of payment to amounts

                                      -18-

<PAGE>

available from the Collateral [and any amounts received by the Indenture Trustee
under the Guaranty Policy in respect of the Notes,] as provided in this
Indenture. The Issuer shall not otherwise be liable for payments on the Notes.
If any other provision of this Indenture shall be deemed to conflict with the
provisions of this Section 3.01, the provisions of this Section 3.01 shall
control.

            Section 3.02 Maintenance of Office or Agency. The Issuer will or
will cause the Administrator to maintain in the Borough of Manhattan in The City
of New York or in ______________ an office or agency where Notes may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Issuer in respect of the Notes and this Indenture may be
served. The Issuer hereby initially appoints the Administrator to serve as its
agent for the foregoing purposes and to serve as Paying Agent with respect to
the Notes and the Certificates. The Issuer will give prompt written notice to
the Indenture Trustee [and the Securities Insurer] of the location, and of any
change in the location, of any such office or agency. If at any time the Issuer
shall fail to maintain any such office or agency or shall fail to furnish the
Indenture Trustee with the address thereof, such surrenders, notices and demands
may be made or served at the Corporate Trust Office, and the Issuer hereby
appoints the Indenture Trustee as its agent to receive all such surrenders,
notices and demands.

            Section 3.03 Money for Payments to Be Held in Trust. As provided in
Section 8.02(A) and (b) hereof, all payments of amounts due and payable with
respect to any Notes that are to be made from amounts withdrawn from the Note
Payment Account pursuant to Section 8.02(C) hereof shall be made on behalf of
the Issuer by the Indenture Trustee or by the Paying Agent, and no amounts so
withdrawn from the Note Payment Account for payments of Notes shall be paid over
to the Issuer except as provided in this Section 3.03.

            On or before the __________ Business Day preceding each Payment Date
and the Redemption Date, the Paying Agent shall deposit or cause to be deposited
in the Note Payment Account an aggregate sum sufficient to pay the amounts due
on such Payment Date or the Redemption Date under the Notes, such sum to be held
in trust for the benefit of the Persons entitled thereto, and (unless the Paying
Agent is the Indenture Trustee) shall promptly notify the Indenture Trustee [and
the Securities Insurer] of its action or failure so to act.

            Any Paying Agent shall be appointed by Issuer Order with written
notice thereof to the Indenture Trustee [and the Securities Insurer]. Any Paying
Agent appointed by the Issuer shall be a Person which would be eligible to be
Indenture Trustee hereunder as provided in Section 6.11 hereof. The Issuer shall
not appoint any Paying Agent (other than the Indenture Trustee) which is not, at
the time of such appointment, a Depository Institution.

            The Issuer will cause each Paying Agent other than the Administrator
or the Indenture Trustee to execute and deliver to the Indenture Trustee [and
the Securities Insurer] an instrument in which such Paying Agent shall agree
with the Indenture Trustee (and if the Indenture Trustee acts as Paying Agent,
it hereby so agrees), subject to the provisions of this Section, that such
Paying Agent will:

            (i) hold all sums held by it for the payment of amounts due with
      respect to the Notes in trust for the benefit of the Persons entitled
      thereto until such sums shall be paid

                                      -19-

<PAGE>

      to such Persons or otherwise disposed of as herein provided and pay such
      sums to such Persons as herein provided;

            (ii) give the Indenture Trustee [and the Securities Insurer] notice
      of any default by the Issuer (or any other obligor upon the Notes) of
      which it has actual knowledge in the making of any payment required to be
      made with respect to the Notes;

            (iii) at any time during the continuance of any such default, upon
      the written request of the Indenture Trustee, forthwith pay to the
      Indenture Trustee all sums so held in trust by such Paying Agent;

            (iv) immediately resign as a Paying Agent and forthwith pay to the
      Indenture Trustee all sums held by it in trust for the payment of Notes if
      at any time it ceases to meet the standards required to be met by a Paying
      Agent at the time of its appointment; and

            (v) comply with all requirements of the Code with respect to the
      withholding from any payments made by it on any Notes of any applicable
      withholding taxes imposed thereon and with respect to any applicable
      reporting requirements in connection therewith; provided, however, that
      with respect to withholding and reporting requirements applicable to
      original issue discount (if any) on the Notes, the Issuer shall have first
      provided the calculations pertaining thereto to the Indenture Trustee.

            The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Order direct any Paying Agent to pay to the Indenture Trustee all sums held in
trust by such Paying Agent, such sums to be held by the Indenture Trustee upon
the same trusts as those upon which the sums were held by such Paying Agent; and
upon such payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

            Subject to applicable laws with respect to escheat of funds or
abandoned property, any money held by the Indenture Trustee or any Paying Agent
in trust for the payment of any amount due with respect to any Note and
remaining unclaimed for two years after such amount has become due and payable
shall be discharged from such trust and be paid to either (i) the Issuer on
Issuer Request [and with the prior written consent of the Securities Insurer as
long as no Securities Insurer Default has occurred and is continuing] [or (ii)
if such money or a portion thereof was paid by the Securities Insurer to the
Indenture Trustee for the payment of principal of or interest on such Note, to
the Securities Insurer in lieu of the Issuer to the extent of such unreimbursed
amount; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof (but only to the extent of
the amounts so paid to the Issuer), and all liability of the Indenture Trustee
or such Paying Agent with respect to such trust money shall thereupon cease];
provided, however, that the Indenture Trustee or such Paying Agent, before being
required to make any such repayment, shall at the expense and direction of the
Issuer cause to be published, once in a newspaper of general circulation in The
City of New York customarily published in the English language on each Business
Day, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication,
any unclaimed balance of such money then

                                      -20-

<PAGE>

remaining will be repaid to the Issuer [or the Securities Insurer, as
applicable]. The Indenture Trustee shall also adopt and employ, at the expense
and direction of the Issuer, any other reasonable means of notification of such
repayment (including, but not limited to, mailing notice of such repayment to
Holders whose Notes have been called but have not been surrendered for
redemption or whose right to or interest in moneys due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any
Paying Agent, at the last address of record for each such Holder).

            Section 3.04 Existence.

            (a) Subject to subparagraph (b) of this Section 3.04, the Issuer
will keep in full effect its existence, rights and franchises as a business
trust under the laws of the State of Delaware [(unless, subject to the prior
written consent of the Securities Insurer, 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 the Collateral.

            (b) Any successor to the Owner Trustee appointed pursuant to Section
10.2 of the Owner Trust Agreement shall be the successor Owner Trustee under
this Indenture without the execution or filing of any paper, instrument or
further act to be done on the part of the parties hereto.

            (c) Upon any consolidation or merger of or other succession to the
Owner Trustee, the Person succeeding to the Owner Trustee under the Owner Trust
Agreement may exercise every right and power of the Owner Trustee under this
Indenture with the same effect as if such Person had been named as the Owner
Trustee herein.

            Section 3.05 Protection of Collateral. The Issuer will from time to
time [and upon the direction of the Securities Insurer] execute and deliver all
such reasonable 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) provide further assurance with respect to the Grant of all or
      any portion of the Collateral;

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

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

            (iv) enforce any rights with respect to the Collateral; or

                                      -21-

<PAGE>

            (v) preserve and defend title to the Collateral and the rights of
      the Indenture Trustee, the Noteholders [and the Securities Insurer] in
      such Collateral against the claims of all persons and parties.

            The Issuer hereby designates the Administrator, its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required to be executed pursuant to this Section 3.05.

            Section 3.06 Annual Opinions as to Collateral. On or before July
15th in each calendar year, beginning in 200_, the Issuer shall furnish to the
Indenture Trustee [and the Securities Insurer] an Opinion of Counsel either
stating that, in the opinion of such counsel, such action has been taken with
respect to the recording, filing, re-recording and refiling of 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 created by
this Indenture 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 of this
Indenture until July 15th of the following calendar year.

            Section 3.07 Performance of Obligations.

            (a) The Issuer will not take any action and will use its best
efforts not to permit any action to be taken by others that would release any
Person from any of such Person's material covenants or obligations under any
instrument or agreement included in the Collateral or that would result in the
amendment, hypothecation, subordination, termination or discharge of, or impair
the validity or effectiveness of, any such instrument or agreement, except as
expressly provided in this Indenture, the Sale and Servicing Agreement or such
other instrument or agreement.

            (b) The Issuer may contract with or otherwise obtain the assistance
of other Persons (including, without limitation, the Master Servicer and the
Administrator under the Administration Agreement) to assist it in performing its
duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee [and the Securities Insurer] in an Officer's
Certificate of the Issuer shall be deemed to be action taken by the Issuer.
Initially, the Issuer has contracted with the Master Servicer and the
Administrator to assist the Issuer in performing its duties under this
Indenture. The Administrator must at all times be the same Person as the
Indenture Trustee.

            (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, in the Basic Documents
and in the instruments and agreements included in the Collateral, including but
not limited to (i) filing or causing to be filed all UCC financing statements
and continuation statements required to be filed by the terms of this Indenture
and the Sale and Servicing Agreement and (ii) recording or causing to be
recorded all Mortgages, Assignments of Mortgage, all intervening Assignments of
Mortgage and all

                                      -22-

<PAGE>

assumption and modification agreements required to be recorded by the terms of
the Sale and Servicing Agreement, in accordance with and within the time periods
provided for in this Indenture and/or the Sale and Servicing Agreement, as
applicable. Except as otherwise expressly provided therein, the Issuer shall not
waive, amend, modify, supplement or terminate any Basic Document or any
provision thereof without the consent of the Indenture Trustee[, the Securities
Insurer] and the Holders of at least a majority of the Outstanding Notes.

            (d) If the Issuer shall have knowledge of the occurrence of a Master
Servicer Event of Default under the Sale and Servicing Agreement, the Issuer
shall promptly notify the Indenture Trustee[, the Securities Insurer], the
Servicer and the Rating Agencies thereof, and shall specify in such notice the
action, if any, the Issuer is taking with respect to such Master Servicer Event
of Default. If such a Master Servicer Event of Default shall arise from the
failure of the Master Servicer to perform any of its duties or obligations under
the Sale and Servicing Agreement with respect to the Home Loans, the Issuer
shall take all reasonable steps available to it to enforce the obligations of
the Master Servicer thereunder.

            (e) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer agrees (i) that it will not, without the
prior written consent of the Indenture Trustee [and, if a Securities Insurer
Default has not occurred and is not continuing, the Securities Insurer,] amend,
modify, waive, supplement, terminate or surrender, or agree to any amendment,
modification, supplement, termination, waiver or surrender of, the terms of any
Collateral (except to the extent otherwise provided in the Sale and Servicing
Agreement) or the Basic Documents, or waive timely performance or observance by
the Servicer, the Master Servicer or the Depositor under the Sale and Servicing
Agreement; and (ii) that any such amendment shall not (A) increase or reduce in
any manner the amount of, or accelerate or delay the timing of, payments that
are required to be made for the benefit of the Noteholders or (B) reduce the
aforesaid percentage of the Outstanding Notes that is required to consent to any
such amendment, without the consent of the Holders of all Outstanding Notes. If
any such amendment, modification, supplement or waiver shall so be consented to
by the Indenture Trustee [and, if a Securities Insurer Default has not occurred
and is not continuing, the Securities Insurer], the Issuer agrees, promptly
following a request by the Indenture Trustee [or the Securities Insurer] to do
so, to execute and deliver, in its own name and at its own expense, such
agreements, instruments, consents and other documents as the Indenture Trustee
may deem necessary or appropriate in the circumstances.

            Section 3.08 Negative Covenants. So long as any Notes are
Outstanding, the Issuer shall not:

            (i) except as expressly permitted by this Indenture or the Sale and
      Servicing Agreement, sell, transfer, exchange or otherwise dispose of any
      of the properties or assets of the Issuer, including those included in the
      Collateral, unless directed to do so by the Indenture Trustee [acting at
      the direction of the Securities Insurer, unless a Securities Insurer
      Default has occurred and is continuing, or the Securities Insurer];

            (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

                                      -23-

<PAGE>

      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 Collateral;

            (iii) engage in any business or activity other than as permitted by
      the Owner Trust Agreement or other than in connection with, or relating
      to, the issuance of Notes pursuant to this Indenture, or amend the Owner
      Trust Agreement as in effect on the Closing Date other than in accordance
      with Section 11.1 thereof;

            (iv) issue debt obligations under any other indenture;

            (v) incur or assume any indebtedness or guaranty any indebtedness of
      any Person, except for such indebtedness as may be incurred by the Issuer
      in connection with the issuance of the Notes pursuant to this Indenture;

            (vi) dissolve or liquidate in whole or in part or merge or
      consolidate with any other Person;

            (vii) (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 expressly be 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 Collateral or any part
      thereof or any interest therein or the proceeds thereof (other than tax
      liens, mechanics' liens and other liens that arise by operation of law, in
      each case on any of the Mortgaged Properties and arising solely as a
      result of an action or omission of the related Obligors or (C) permit the
      lien of this Indenture not to constitute a valid first priority (other
      than with respect to such tax, mechanics' or other lien) security interest
      in the Collateral;

            (viii)remove the Administrator without cause unless the Rating
      Agency Condition shall have been satisfied in connection with such
      removal; or

            (ix) take any other action or fail to take any action which may
      cause the Issuer to be taxable as (a) an association pursuant to Section
      7701 of the Code and the corresponding regulations or (b) as a taxable
      mortgage pool pursuant to Section 7701(i) of the Code and the
      corresponding regulations.

            Section 3.09 Annual Statement as to Compliance. The Issuer will
deliver to the Indenture Trustee [and the Securities Insurer], within 120 days
after the end of each fiscal year of the Issuer (commencing in the fiscal year
200_), 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 such year and of
      its performance under this Indenture has been made under such Authorized
      Officer's supervision; and

                                      -24-

<PAGE>

            (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 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 3.10 Covenants of the Issuer. All covenants of the Issuer in
this Indenture are covenants of the Issuer and are not covenants of the Owner
Trustee. The Owner Trustee is, and any successor Owner Trustee under the Owner
Trust Agreement will be, entering into this Indenture solely as Owner Trustee
under the Owner Trust Agreement and not in its respective individual capacity,
and in no case whatsoever shall the Owner Trustee or any such successor Owner
Trustee be personally liable on, or for any loss in respect of, any of the
statements, representations, warranties or obligations of the Issuer hereunder,
as to all of which the parties hereto agree to look solely to the property of
the Issuer.

            Section 3.11 Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any payment (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 or to the Servicer or Master Servicer, (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, payments to
the Servicer, the Master Servicer, the Indenture Trustee, the Owner Trustee,
[the Securities Insurer,] the Noteholders and the holders of the Residual
Interest Certificate as contemplated by Section 8.02(C) hereof, and to the
extent funds are available for such purpose under, the Sale and Servicing
Agreement or the Owner Trust Agreement. The Issuer will not, directly or
indirectly, make or cause to be made payments to or distributions from the
Collection Account except in accordance with this Indenture and the Basic
Documents.

            Section 3.12 Treatment of Notes as Debt for Tax Purposes. The Issuer
shall, and shall cause the Administrator to, treat the Notes as indebtedness for
all purposes.

            Section 3.13 Notice of Events of Default. The Issuer shall give the
Indenture Trustee, [the Securities Insurer,] the Master Servicer, the Depositor
and the Rating Agencies prompt written notice of each Event of Default
hereunder, each default on the part of the Master Servicer, the Servicer or the
Transferor of its obligations under the Sale and Servicing Agreement and each
default on the part of the Transferor of its obligations under the Home Loan
Purchase Agreement.

            Section 3.14 Further Instruments and Acts. Upon request of the
Indenture Trustee [or the Securities Insurer], 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.

                                      -25-

<PAGE>

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

            Section 4.01 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 [including any such right of the
Securities Insurer pursuant to Section 2.06(B)] or the proviso to the definition
of "Outstanding", (iv) Sections 3.03, 3.04, 3.05, 3.08 and 3.10 hereof, (v) the
rights, obligations and immunities of the Indenture Trustee hereunder (including
the rights of the Indenture Trustee under Section 6.07 hereof and the
obligations of the Indenture Trustee under Section 4.02 hereof) and (vi) the
rights of Noteholders as beneficiaries hereof with respect to the property so
deposited with the Indenture Trustee 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, when all of the following have occurred:

                  (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
            2.04 hereof and (ii) Notes for the payment of which 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 hereof) shall have been
            delivered to the Indenture Trustee for cancellation; or (2) all
            Notes not theretofore delivered to the Indenture Trustee for
            cancellation

                        a. shall have become due and payable, or

                        b. will become due and payable within one year following
                  the Maturity Date, or

                        c. are to be called for redemption within one year under
                  arrangements satisfactory to the Indenture Trustee for the
                  giving of notice of redemption by the Indenture Trustee in the
                  name, and at the expense, of the Issuer,

                        d. and the Issuer, in the case of clause a., b. or c.
                  above, has irrevocably deposited or caused irrevocably to be
                  deposited with the Indenture Trustee 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 not theretofore delivered to the Indenture Trustee
                  for cancellation when due to the Maturity Date or the
                  Redemption Date (if Notes shall have been called for

                                      -26-

<PAGE>

                  redemption pursuant to SECTION 10.01 hereof), as the case may
                  be; and

                  (B) the latest of (a) 18 months after payment in full of all
            outstanding obligations under the Notes, (b) the payment in full of
            all unpaid Trust Fees and Expenses [and all sums owing to the
            Securities Insurer under the Insurance Agreement as confirmed in
            writing by the Securities Insurer], (c) [the Guaranty Policy is
            surrendered to the Securities Insurer and (d)] the date on which the
            Issuer has paid or caused to be paid all other sums payable
            hereunder by the Issuer; and

                  (C) the Issuer shall have delivered to the Indenture Trustee
            [and the Securities Insurer] an Officer's Certificate, an Opinion of
            Counsel and (if required by the TIA or the Indenture Trustee) an
            Independent Certificate from a firm of certified public accountants,
            each meeting the applicable requirements of Section 11.01(A) hereof
            and, subject to Section 11.02 hereof, each stating that all
            conditions precedent herein provided for, relating to the
            satisfaction and discharge of this Indenture with respect to the
            Notes, have been complied with.

            Section 4.02 Application of Trust Money. All moneys deposited with
the Indenture Trustee pursuant to Sections 3.03 and 4.01 hereof shall be held in
trust and applied by it, in accordance with the provisions of the Notes[, the
Insurance Agreement] and this Indenture, to the payment, either directly or
through any Paying Agent, as the Indenture Trustee may determine, [to the
Securities Insurer and] to the Holders of the particular Notes for the payment
or redemption of which such moneys have been deposited with the Indenture
Trustee, of all sums due and to become due thereon; but such moneys need not be
segregated from other funds except to the extent required herein or in the Sale
and Servicing Agreement or required by law.

            Section 4.03 Repayment of Moneys Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all moneys then held by any Paying Agent other than the Indenture Trustee under
the provisions of this Indenture with respect to such Notes shall, upon demand
of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 3.03 hereof and thereupon such Paying Agent shall be released from
all further liability with respect to such moneys.

                                      -27-

<PAGE>

                                   ARTICLE V

                                    REMEDIES

            Section 5.01 Events of Default.

            (a) "Event Of Default," wherever used herein, means 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) Notwithstanding that there may be insufficient sums in the Note
      Payment Account for payment thereof on the related Payment Date, default
      in the payment of any interest on any Note when the same becomes due and
      payable, and continuance of such default for a period of five (5) days; or

            (ii) Notwithstanding that there may be insufficient sums in the Note
      Payment Account for payment thereof on the related Payment Date, default
      in the payment of the principal of or any installment of the principal of
      any Note (i) when the same becomes due and payable or (ii) on the Maturity
      Date; or

            (iii) default in the observance or performance of any covenant or
      agreement of the Issuer made in this Indenture (other than a covenant or
      agreement, a default in the observance or performance of which is
      elsewhere in this Section specifically dealt with), or any representation
      or warranty of the Issuer made in this Indenture[, the Insurance
      Agreement], the Sale and Servicing Agreement 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
      misrepresentation 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 [at the direction of the Securities Insurer], or to the Issuer and
      the Indenture Trustee by the Holders of at least [25]% of the Outstanding
      Notes [and with the prior written consent of the Securities Insurer (so
      long as no Securities Insurer Default has occurred and is continuing)], 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) [an Event of Default under Section 5.01 of the Insurance
      Agreement or in any certificate or other writing delivered pursuant to the
      Insurance Agreement or in connection therewith 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 misrepresentation 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 at the direction
      of the Securities Insurer, or to the Issuer and the Indenture Trustee by
      the Holders of at least 25% of the Outstanding Notes and with the prior

                                      -28-

<PAGE>

      written consent of the Securities Insurer (so long as no Securities
      Insurer Default has occurred and is continuing), 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]

            (v) 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 Collateral 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 Collateral, 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

            (vi) 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
      Collateral, 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.

The Issuer shall promptly deliver to the Indenture Trustee [and the Securities
Insurer] 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 clauses (iii) and (iv) above, the status of such event and what
action the Issuer is taking or proposes to take with respect thereto.

            Section 5.02 Acceleration of Maturity; Rescission and Annulment. If
an Event of Default shall occur [and a Securities Insurer Default has occurred
and is continuing] then and in every such case the Indenture Trustee may or the
Indenture Trustee as directed in writing by the Majority Noteholders shall
declare all the Notes to be then immediately due and payable, by a notice in
writing to the Issuer (and to the Indenture Trustee if given by Noteholders),
and upon any such declaration the Outstanding Amount of such Notes, together
with accrued and unpaid interest thereon through the date of acceleration, shall
become immediately due and payable; provided, however, that if on the date any
such Event of Default occurs or is continuing, and no Securities Insurer Default
exists and is continuing, then the Securities Insurer, in its sole discretion,
may determine whether or not to accelerate payment on the Notes]. [In the event
of any acceleration of the Notes by operation of this Section 5.02, the
Indenture Trustee shall continue to be entitled to make claims under the
Guaranty Policy pursuant to Section 8.02(E) hereof. Payments under the Guaranty
Policy following acceleration of the Notes shall be applied by the Indenture
Trustee:

            FIRST: to the payment of amounts due and unpaid on the Notes in
respect of interest, ratably, without preference or priority of any kind;

                                      -29-

<PAGE>

            and

            SECOND: to the payment of amounts due and unpaid on the Notes in
respect of principal, ratably, without preference or priority of any kind, until
the Notes are paid in full.]

            At any time after such declaration of acceleration of maturity has
been made and before a judgment or decree for payment of the moneys due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided,
[either the Securities Insurer (so long as a Securities Insurer Default has not
occurred and is continuing) or] the Majority Noteholders [(if a Securities
Insurer Default has occurred and is continuing)], by written notice to the
Issuer and the Indenture Trustee, may rescind and annul such declaration and its
consequences if:

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

            1. all payments of principal of and/or interest on all Notes and all
other amounts that would then be due hereunder or upon such Notes if the Event
of Default giving rise to such acceleration had not occurred; and

            2. all sums paid or advanced by the Indenture Trustee [or the
Securities Insurer] hereunder and the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee [or the Securities Insurer]
and their respective agents and counsel; and

            (b) all Events of Default, other than the nonpayment of the
principal of the Notes that has become due solely by such acceleration, have
been cured or waived as provided in Section 5.12 hereof. No such rescission
shall affect any subsequent default or impair any right consequent thereto.

            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 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 Note when
the same becomes due and payable, the Issuer will, upon demand of the Indenture
Trustee [made at the direction of the Securities Insurer,] pay to the Indenture
Trustee, for the benefit of the Holders of the Notes [and the Securities
Insurer], the whole amount then due and payable on such Notes for principal
and/or interest, with interest upon the overdue principal and, to the extent
payment at such rate of interest shall be legally enforceable, upon overdue
installments of interest at the rate borne by the Notes 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 the Securities Insurer] and their
respective agents and counsel.

            (b) In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee may[, with the prior written consent of the
Securities Insurer (so long as no Securities Insurer Default has occurred and is
continuing)] and shall at the direction of [the Securities Insurer (so long as
no Securities Insurer Default has occurred and is continuing)

                                      -30-

<PAGE>

or] the Majority Noteholders [(if a Securities Insurer Default has occurred and
is continuing)] 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 such Notes and collect
in the manner provided by law out of the property of the Issuer or other obligor
upon such Notes, wherever situated, the moneys adjudged or decreed to be
payable. [At any time, so long as no Securities Insurer Default has occurred and
is continuing, if the Securities Insurer is the holder of any Note pursuant to
Section 2.06(B) hereof or all amounts due to all other Holders of the Notes
pursuant to the Notes and this Indenture have been paid in full, then the
Securities Insurer may, in its own name, institute any Proceedings or take any
action permitted under this Section 5.03 to collect amounts due hereunder from
the Issuer or any other obligor of the Notes.]

            (c) If an Event of Default occurs and is continuing, the Indenture
Trustee [shall, at the direction of the Securities Insurer, and if a Securities
Insurer Default has occurred and is continuing, the Indenture Trustee] may, in
its discretion, and shall at the direction of the majority of the Holders of the
Outstanding Notes, as more particularly provided in Section 5.04 hereof, proceed
to protect and enforce its rights and the rights of [the Securities Insurer and]
the Noteholders by such appropriate Proceedings as the Indenture Trustee shall
deem most effective 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 Collateral, 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, 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[, upon the direction of the Securities Insurer,] by
intervention in such Proceedings or otherwise:

            (i) to file and prove a claim or claims for the whole amount of
      principal and/or interest owing and unpaid in respect of the Notes and to
      file such other papers or 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, each predecessor
      Indenture Trustee [and the Securities Insurer], 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 or
      bad faith), [the Securities Insurer] and the Noteholders allowed in such
      Proceedings;

                                      -31-

<PAGE>

            (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 moneys or other property payable or
      deliverable on any such claims and to distribute all amounts received with
      respect to the claims of the Noteholders[, the Securities Insurer] and 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[, the Securities Insurer] 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 [and the Securities Insurer] to make payments to the
      Indenture Trustee and, in the event that the Indenture Trustee shall
      consent to the making of payments directly to such Noteholders [and the
      Securities Insurer], 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 except as a result of negligence or bad faith.

            (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 [or the Securities Insurer] any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof [or the Securities Insurer] 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, attorneys and
counsel, shall be for the ratable benefit of the Holders of the Notes [and the
Securities Insurer].

            (g) 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 Noteholders, and it shall not be necessary to make any
Noteholder a party to any such Proceedings.

                                      -32-

<PAGE>

            Section 5.04 Remedies; Priorities.

            (a) If an Event of Default shall have occurred and be continuing,
the Indenture Trustee [shall, at the direction of the Securities Insurer, and if
a Securities Insurer Default has occurred and is continuing, the Indenture
Trustee] may, and at the direction of a majority of the Holders of the
Outstanding Notes shall, 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 Notes
      and amounts due [to the Securities Insurer 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 moneys adjudged due;

            (ii) institute Proceedings from time to time for the complete or
      partial foreclosure with respect to the Collateral;

            (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[, the Securities Insurer] or the
      Noteholders; and

            (iv) sell the Collateral or any portion thereof or rights or
      interest therein in a commercially reasonable manner, at one or more
      public or private sales called and conducted in any manner permitted by
      law; [provided, however, (x) if a Securities Insurer Default has occurred
      and is continuing, the Indenture Trustee may not sell or otherwise
      liquidate the Collateral following an Event of Default, unless (A) the
      Holders of 100% of the Outstanding Notes consent thereto, (B) the proceeds
      of such sale or liquidation distributable to the Noteholders are
      sufficient to discharge in full all amounts then due and unpaid upon such
      Notes for principal and/or interest or (C) the Indenture Trustee
      determines that the Collateral will not continue to provide sufficient
      funds for the payment of principal of and interest on the Notes as they
      would have become due if the Notes had not been declared due and payable,
      and the Indenture Trustee obtains the consent of Holders of 66-2/3% of the
      Outstanding Notes, and (y) if no Securities Insurer Default has occurred
      and is continuing, the Securities Insurer may direct the Indenture Trustee
      and the Indenture Trustee shall comply with any such direction, to sell or
      otherwise liquidate the Collateral following an Event of Default if (1)
      the conditions under either A, B or C in clause (x) above are met or (2)
      the Securities Insurer has paid the Notes in full under the Guaranty
      Policy. In determining such sufficiency or insufficiency with respect to
      clause (B) and (C) of this Subsection (a)(iv), 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 Collateral for such
      purpose].

                                      -33-

<PAGE>

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

            FIRST: to the Indenture Trustee, any Indenture Trustee Fees due and
payable, for any costs or expenses incurred by it in connection with the
enforcement of the remedies provided for in this Article V and any other amounts
payable to the Indenture Trustee pursuant to Section 6.07 hereof;

            SECOND: to the Servicer, any Servicing Compensation due and payable
under the Sale and Servicing Agreement;

            THIRD: to the Master Servicer, any Master Servicing Compensation due
and unpaid;

            [FOURTH: to the Securities Insurer for any Guaranty Insurance
Premiums due and payable;]

            FIFTH: to the Owner Trustee, any Owner Trustee Fees due and payable;

            SIXTH: to the Noteholders for amounts due and unpaid on the Notes
for interest, pro rata among the Holders of the Notes for interest, according to
the amounts due and payable pursuant to Section 5.01(d) of the Sale and
Servicing Agreement, until the Note Principal Balance of the Notes is reduced to
zero;

            SEVENTH: to the Noteholders for amounts due and unpaid on the Notes
for principal, pro rata among the Holders of the Notes, according to the amounts
due and payable pursuant to Section 5.01(d) of the Sale and Servicing Agreement,
until the Note Principal Balance of the Notes is reduced to zero;

            [EIGHTH: to the Securities Insurer for any amounts then due and
payable pursuant to Section 5.01(e) of the Sale and Servicing Agreement;]

            NINTH: to the Noteholders for amounts due and unpaid on the Notes of
Excess Spread, pro rata among the Holders of the Notes, according to the amounts
due and payable pursuant to Section 5.01(e) of the Sale and Servicing Agreement,
until the Note Principal Balance is reduced to zero;

            TENTH: to the Noteholders for amounts due and unpaid on the Notes of
Noteholder's Interest Carry-Forward Amount, pro rata among the Holders of the
Notes, according to the amounts due and payable pursuant to Section 5.01(e) of
the Sale and Servicing Agreement, pro rata, the Noteholders' Interest Carry
Forward Amount due and unpaid; and

            ELEVENTH: concurrently to the Servicer in an amount equal to any
outstanding Nonrecoverable Servicing Advances and to the Master Servicer in an
amount equal to any outstanding Nonrecoverable Monthly Advances, then to
reimburse the Servicer the Servicing Fee Recovery Amount if, any, and then for
deposit into the Certificate Distribution Account for payment to the holders of
the Residual Interest Certificate.

                                      -34-

<PAGE>

            The Indenture Trustee may fix a record date and payment date for any
payment to be made to the Noteholders pursuant to this Section. At least 15 days
before such record date, the Indenture Trustee shall mail to each Noteholder[,
the Securities Insurer] and the Issuer a notice that states the record date, the
payment date and the amount to be paid.

            Section 5.05 Optional Preservation of the Collateral. If the Notes
have been declared to be due and payable under Section 5.02 hereof following an
Event of Default and such declaration and its consequences have not been
rescinded and annulled, the Indenture Trustee may, but need not, elect to
maintain possession of the Collateral. 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 the Indenture Trustee shall take
such desire into account when determining whether or not to maintain possession
of the Collateral. In determining whether to maintain possession of the
Collateral, 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 Collateral 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 for as long as a Securities Insurer Default has not occurred or
is not continuing and, if a Securities Insurer Default has occurred and is
continuing, unless:

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

            (b) the Holders of not less than 25% of the Outstanding Notes have
made 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;

            (c) 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;

            (d) the Indenture Trustee for 30 days after its receipt of such
notice, request and offer of indemnity has failed to institute such Proceeding;
and

            (e) no direction inconsistent with such written request has been
given to the Indenture Trustee during such 30-day period by the Majority
Noteholders.]

            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.

            In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each group representing

                                      -35-

<PAGE>

less than a Majority Noteholders, the Indenture Trustee in its sole discretion
may determine what action, if any, shall be taken, notwithstanding any other
provisions of this Indenture.

            Section 5.07 Unconditional Rights of Noteholders to Receive
Principal and/or Interest. Notwithstanding any other provisions in this
Indenture, the Holder of any 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 applicable Maturity Date thereof expressed in such
Note or in this Indenture (or, in the case of redemption, on or after the
Redemption Date) 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[, the Securities Insurer] 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[, the Securities Insurer] or to
such Noteholder, then and in every such case the Issuer, the Indenture Trustee[,
the Securities Insurer] 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[, the Securities Insurer] and the Noteholders shall continue as though
no such Proceeding had been instituted.

            Section 5.09 Rights and Remedies Cumulative. No right or remedy
herein conferred upon or reserved to the Indenture Trustee[, the Securities
Insurer] 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[, the Securities Insurer] or any Holder of any Note to
exercise any right or remedy accruing upon any Default or Event of Default shall
impair any such right or remedy or constitute a waiver of any such Default or
Event of Default or an acquiescence therein. Every right and remedy given by
this Article V or by law to the Indenture Trustee[, the Securities Insurer] or
to the Noteholders may be exercised from time to time, and as often as may be
deemed expedient, by the Indenture Trustee[, the Securities Insurer] or by the
Noteholders, as the case may be[, subject, in each case, however, to the right
of the Securities Insurer to control any such right and remedy, except as
provided in Section 11.20].

            Section 5.11 Control by Noteholders. [Subject to the rights of the
Securities Insurer under Section 11.18 hereof,] the Majority Noteholders 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,
however, that:

                                      -36-

<PAGE>

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

            (b) subject to the express terms of Section 5.04 hereof, any
direction to the Indenture Trustee to sell or liquidate the Collateral shall be
by Holders of Notes representing not less than 100% of the Notes Outstanding;

            (c) if the conditions set forth in Section 5.05 hereof have been
satisfied and the Indenture Trustee elects to retain the Collateral pursuant to
such Section, then any direction to the Indenture Trustee by Holders of Notes
representing less than 100% of the Notes Outstanding to sell or liquidate the
Collateral shall be of no force and effect; and

            (d) the Indenture Trustee may take any other action deemed proper by
the Indenture Trustee that is not inconsistent with such direction.

            Notwithstanding the rights of the Noteholders set forth in this
Section 5.11, subject to Section 6.01 hereof, the Indenture Trustee need not
take any action that it determines might involve it in liability or might
materially adversely affect the rights of any Noteholders not consenting to such
action.

            Section 5.12 Waiver of Past Defaults. The [Securities Insurer may,
or at any time when a Securities Insurer Default has occurred and is continuing,
the] Majority Noteholders may waive any past Default or Event of Default and its
consequences, except a Default (a) in the payment of principal of or interest on
any of the Notes or (b) in respect of a covenant or provision hereof that cannot
be modified or amended without the consent of [the Securities Insurer (so long
as no Securities Insurer Default has occurred and is continuing) or] the Holder
of each Note. In the case of any such waiver, the Issuer, the Indenture
Trustee[, the Securities Insurer] 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 Default or impair any right consequent
thereto.

            Upon any such waiver, such Default shall cease to exist and be
deemed to have been cured and not to have occurred, and 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 Default or 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 by such Holder'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 shall not apply to (a) any suit instituted by the
Indenture Trustee [or the Securities Insurer], (b) any suit instituted by any
Noteholder, or

                                      -37-

<PAGE>

group of Noteholders, in each case holding in the aggregate more than 10% of the
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 (or, in the case of
redemption, on or after the Redemption Date).

            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
will not hinder, delay or impede the execution of any power herein granted to
the Indenture Trustee [or the Securities Insurer], but will suffer and permit
the execution of every such power as though no such law had been enacted.

            Section 5.15 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[, the Securities Insurer] 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 Collateral or upon any of the assets of the Issuer. Any money or
property collected by the Indenture Trustee shall be applied in accordance with
Section 5.04(B) hereof.

            Section 5.16 Performance and Enforcement of Certain Obligations.

            (a) Promptly following a request from the Indenture Trustee [or the
Securities Insurer] to do so and at the Master Servicer's expense, the Issuer
shall take all such lawful action as the Indenture Trustee [or the Securities
Insurer] may request to compel or secure the performance and observance by the
Transferor, the Servicer and the Master Servicer, as applicable, of each of
their obligations to the Issuer under or in connection with the Sale and
Servicing Agreement, and to exercise any and all rights, remedies, powers and
privileges lawfully available to the Issuer, under or in connection with the
Sale and Servicing Agreement to the extent and in the manner directed by the
Indenture Trustee [or the Securities Insurer], including the transmission of
notices of default on the part of the Transferor or the Master Servicer
thereunder and the institution of legal or administrative actions or proceedings
to compel or secure performance by the Transferor, the Master Servicer or the
Servicer of each of their obligations under the Sale and Servicing Agreement.

            (b) If an Event of Default has occurred and is continuing, the
Indenture Trustee shall, [at the direction of the Securities Insurer, and] at
the direction (which direction shall be in writing or by telephone, confirmed in
writing promptly thereafter) of the Holders of 66-2/3% of the Notes Outstanding
shall[, with the prior written consent of the Securities Insurer (so long as no
Securities Insurer Default has occurred and is continuing),] exercise all
rights, remedies, powers, privileges and claims of the Issuer, as
Securityholder, against the Transferor, the Servicer or the Master Servicer
under or in connection with the Sale and Servicing Agreement, including the
right or power to take any action to compel or secure performance or

                                      -38-

<PAGE>

observance by the Transferor, the Servicer or the Master Servicer, as the
case may be, of each of their obligations to the Issuer thereunder and to give
any consent, request, notice, direction, approval, extension, or waiver under
the Sale and Servicing Agreement, and any right of the Issuer to take such
action shall be suspended.

            Section 5.17 Rights in Respect of Insolvency Proceedings.

            (a) In the event that the Indenture Trustee has received a certified
copy of an order of the appropriate court that any scheduled payment of
principal of or interest on a Note has been voided in whole or in part as a
preference payment under applicable bankruptcy law, the Indenture Trustee shall
so [notify the Securities Insurer, shall comply with the provisions of the
Guaranty Policy to obtain payment by the Securities Insurer of such voided
scheduled payment, and shall, at the time it provides notice to the Securities
Insurer,] notify, by mail to Holders of the Notes that, in the event that any
Holder's scheduled payment is so recovered, such Holder will be entitled to
payment pursuant to the terms of the Policy, a copy of which shall be made
available through the Indenture Trustee[, the Securities Insurer]or the Fiscal
Agent, if any, and the Indenture Trustee shall furnish to the [Securities
Insurer or its] Fiscal Agent, if any, its records evidencing the payments of
principal of and interest on the Notes, if any, which have been made by the
Indenture Trustee and subsequently recovered from Holders, and the dates on
which such payments were made.

            [(b) The Indenture Trustee shall promptly notify the Securities
Insurer of either of the following as to which it has actual knowledge: (i) the
commencement of any proceeding by or against the Issuer commenced under the
United States Bankruptcy Code or any other applicable bankruptcy, insolvency,
receivership, rehabilitation or similar law (an "Insolvency Proceeding") and
(ii) the making of any claim in connection with any Insolvency Proceeding
seeking the avoidance as a preferential transfer (a "Preference Claim") of any
payment of principal of, or interest on, the Notes. Each Holder, by its purchase
of Notes, and the Indenture Trustee hereby agree that, so long as a the
Securities Insurer Default shall not have occurred and be continuing, the
Securities Insurer may at any time during the continuation of an Insolvency
Proceeding direct all matters relating to such Insolvency Proceeding, including,
without limitation, (i) all matters relating to any Preference Claim, (ii) the
direction of any appeal of any order relating to any Preference Claim at the
expense of the Securities Insurer but subject to reimbursement as provided in
the Insurance Agreement and (iii) the posting of any surety, supersedes or
performance Note pending any such appeal. In addition, and without limitation of
the foregoing, as set forth in Section 5.18, the Securities Insurer shall be
subrogated to, and each Holder and the Indenture Trustee hereby delegate and
assign, to the fullest extent permitted by law the rights of the Indenture
Trustee and each Holder in the conduct of any Insolvency Proceeding, including,
without limitation, all rights of any party to an adversary proceeding action
with respect to any court order issued in connection with any such Insolvency
Proceeding.

            (c) The Indenture Trustee shall furnish to the [Securities Insurer
or its] Fiscal Agent its records evidencing the payments of principal of and
interest on the Notes which have been made by the Indenture Trustee and
subsequently recovered from Noteholders, and the dates on which such payments
were made.]

                                      -39-

<PAGE>

            Section 5.18 [Effect of Payments by the Securities Insurer;
Subrogation.

            (a) Anything herein to the contrary notwithstanding, any payment
with respect to the principal of or interest on the Notes which is made with
moneys received pursuant to the terms of the Policy shall not be considered
payment by the Issuer of the Notes, shall not discharge the Issuer in respect of
its obligation to make such payment and shall not result in the payment of or
the provision for the payment of the principal of or interest on the Notes
within the meaning of Section 4.01 hereof. The Issuer and the Indenture Trustee
acknowledge that without the need for any further action on the part of the
Securities Insurer, the Issuer, the Indenture Trustee or the Note Registrar (i)
to the extent the Securities Insurer makes payments, directly or indirectly, on
account of principal of or interest on the Notes to the Holders of such Notes,
the Securities Insurer will be fully subrogated to the rights of such Holders to
receive such principal and interest from the Issuer, and (ii) the Securities
Insurer shall be paid such principal and interest in its capacity as a Holder of
Notes but only from the sources and in the manner provided herein for the
payment of such principal and interest in each case only after the Holders of
the Notes have received payment of all scheduled payments of principal and
interest due thereon.]

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

            Section 6.01 Duties of Indenture Trustee.

            (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:

            (i) the Indenture Trustee undertakes to perform such duties and only
      such duties as are specifically set forth in this Indenture and no implied
      covenants or obligations shall be read into this Indenture against the
      Indenture Trustee; and

            (ii) in the absence of bad faith or gross negligence on its part,
      the Indenture Trustee may conclusively rely, as to the truth of the
      statements and the correctness of the opinions expressed therein, upon
      certificates or opinions furnished to the Indenture Trustee and conforming
      to the requirements of this Indenture; provided, however, that the
      Indenture Trustee shall examine the certificates and opinions to determine
      whether or not they conform to the requirements of this Indenture.

            (c) The Indenture Trustee may not be relieved from liability for 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;

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<PAGE>

            (ii) the Indenture Trustee 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 was negligent in ascertaining the pertinent
      facts; and

            (iii) the Indenture Trustee shall not be liable with respect to any
      action it takes or omits to take in good faith in accordance with a
      direction received by it pursuant to Section 5.11 hereof.

            (d) Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to paragraphs (a), (b), (c) and (g) of this Section
6.01.

            (e) The Indenture Trustee shall not be liable for interest on any
money received by it except as the Indenture Trustee may agree in writing with
the Issuer.

            (f) Money held in trust by the Indenture Trustee shall be segregated
from other funds held by the Indenture Trustee except to the extent permitted by
law or the terms of this Indenture or the Sale and Servicing Agreement.

            (g) No provision of this Indenture shall require the Indenture
Trustee 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 adequate indemnity against such risk or liability is
not reasonably assured to it; provided, however, that the Indenture Trustee
shall not refuse or fail to perform any of its duties hereunder solely as a
result of nonpayment of its normal fees and expenses and provided, further, that
nothing in this Section 6.01(g) shall be construed to limit the exercise by the
Indenture Trustee of any right or remedy permitted under this Indenture or
otherwise in the event of the Issuer's failure to pay the Indenture Trustee's
fees and expenses pursuant to Section 6.07 hereof. In determining that such
repayment or indemnity is not reasonably assured to it, the Indenture Trustee
must consider not only the likelihood of repayment or indemnity by or on behalf
of the Issuer but also the likelihood of repayment or indemnity from amounts
payable to it from the Collateral pursuant to Section 6.07 hereof.

            (h) 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.

            (i) The Indenture Trustee shall not be required to take notice or be
deemed to have notice or knowledge of any Event of Default (other than an Event
of Default pursuant to Section 5.01(a)(I) or (II) hereof) unless a Responsible
Officer of the Indenture Trustee shall have received written notice thereof or
otherwise shall have actual knowledge thereof. In the absence of receipt of
notice or such knowledge, the Indenture Trustee may conclusively assume that
there is no Event of Default.

            (j) [The Indenture Trustee shall, and hereby agrees, that it will
hold the Guaranty Policy in trust and will hold any proceeds of any claim on the
Guaranty Policy in trust solely for the use and benefit of the Noteholders. The
Indenture Trustee will deliver to the Rating Agencies notice of any change made
to the Guaranty Policy.]

                                      -44-

<PAGE>

            Section 6.02 Rights of Indenture Trustee.

            (a) The Indenture Trustee 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 need not investigate any fact or matter stated in the
document.

            (b) Before the Indenture Trustee acts or refrains from acting, it
may require an Officer's Certificate or an Opinion of Counsel. The Indenture
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on an Officer's Certificate or Opinion of Counsel.

            (c) The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee so long as the Indenture Trustee
remains liable to the Issuer, the Noteholders and the Securities Insurer for the
performance of its duties hereunder.

            (d) The Indenture Trustee shall not 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; provided, however, that such action or omission by
the Indenture Trustee does not constitute willful misconduct, negligence or bad
faith.

            (e) The Indenture Trustee may, at the expense of the Transferor as
provided under Section 6.07, consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture 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 advice or opinion of such counsel.

            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. Any Paying Agent, Note
Registrar, co-registrar or co-paying agent may do the same with like rights.
However, the Indenture Trustee must comply with Sections 6.11 and 6.12 hereof.

            Section 6.04 Indenture Trustee's Disclaimer. The Indenture Trustee
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, shall not be accountable for the
Issuer's use of the proceeds from the Notes, or 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 Indenture Trustee's certificate
of authentication.

            Section 6.05 Notices of Default. If a Default occurs and is
continuing and if it is known to a Responsible Officer of the Indenture Trustee,
the Indenture Trustee shall mail to each Noteholder notice of the Default within
90 days after it occurs [and to the Securities Insurer notice of such Default
promptly after it occurs]. Except in the case of a Default in payment of
principal of or interest on any Note (including payments pursuant to the
mandatory redemption provisions of such Note), the Indenture Trustee may
withhold the notice to Noteholders if and so

                                      -42-

<PAGE>

long as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of Noteholders.

            Section 6.06 Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver to each Noteholder such information reasonably available
to the Indenture Trustee as may be required to enable such Holder to prepare its
federal and state income tax returns.

            Section 6.07 Compensation and Indemnity. As compensation for its
services hereunder, the Indenture Trustee shall be entitled to receive, on each
Payment Date, the Indenture Trustee's Fee pursuant to Section 8.02(c) hereof
(which compensation shall not be limited by any law on compensation of a trustee
of an express trust) and shall be entitled to reimbursement by the Master
Servicer for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services.
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Indenture Trustee's agents, counsel,
accountants and experts and Opinions of Counsel hereunder. The Issuer agrees to
cause the Master Servicer, at its expense, to indemnify the Indenture Trustee
against any and all loss, liability or expense (including attorneys' fees)
incurred by it in connection with the administration of this trust and the
performance of its duties hereunder. The Indenture Trustee shall notify the
Issuer, the Servicer and the Master Servicer promptly of any claim for which it
may seek indemnity. Failure by the Indenture Trustee so to notify the Issuer,
the Servicer and the Master Servicer shall not relieve the Issuer of its
obligations hereunder. The Issuer shall or shall cause the Master Servicer to
defend any such claim, and the Indenture Trustee may have separate counsel
reasonably acceptable to the Master Servicer and the Issuer shall or shall cause
the Master Servicer to pay the reasonable fees and expenses of such counsel.
Neither the Issuer, the Servicer nor the Master Servicer need reimburse any
expense or indemnify against any loss, liability or expense incurred by the
Indenture Trustee through the Indenture Trustee's own willful misconduct,
negligence or bad faith.

            The Issuer's payment obligations to the Indenture Trustee pursuant
to this Section 6.07 shall survive the discharge of this Indenture. When the
Indenture Trustee incurs expenses after the occurrence of a Default specified in
Section 5.01(a)(v) hereof 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 6.08 Replacement of Indenture Trustee. No resignation or
removal of the Indenture Trustee and no appointment of a successor Indenture
Trustee shall become effective until the acceptance of appointment by the
successor Indenture Trustee pursuant to this Section 6.08. The Indenture Trustee
may resign at any time by so notifying the Issuer [and the Securities Insurer].
[The Securities Insurer or the Holders of a majority of the Outstanding Notes
with the consent of the Securities Insurer (so long as no Securities Insurer
Default has occurred and is continuing) may remove the Indenture Trustee by so
notifying the Indenture Trustee and may appoint a successor Indenture Trustee
subject to Section 6.11.] The Issuer shall remove the Indenture Trustee [upon
the prior written consent of the Securities Insurer] if:

            (a) the Indenture Trustee fails to comply with Section 6.11 hereof;

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<PAGE>

            (b) the Indenture Trustee is adjudged a bankrupt or insolvent;

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

            (d) the Indenture Trustee otherwise becomes incapable of acting.

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

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

            If a successor Indenture Trustee does not take office within 60 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee[, the Securities Insurer], the Issuer or the Holders of a
majority of the Outstanding Notes may petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee.

            If the Indenture Trustee fails to comply with Section 6.11 hereof,
any Noteholder may petition any court of competent jurisdiction for the removal
of the Indenture Trustee and the appointment of a successor Indenture Trustee
[acceptable to the Securities Insurer].

            Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section 6.08, the Issuer's and the Master Servicer's obligations under
Section 6.07 hereof shall continue for the benefit of the retiring Indenture
Trustee [acceptable to the Securities Insurer].

            Section 6.09 Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all 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; provided,
however, that such corporation or banking association shall otherwise be
qualified and eligible under Section 6.11 hereof. The Indenture Trustee shall
provide [the Securities Insurer and] the Rating Agencies prior written notice of
any such transaction.

            In case 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 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 in case 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

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<PAGE>

in all such cases such certificates shall have the full force which it is
anywhere in the Notes or in this Indenture provided that the certificate of the
Indenture Trustee shall have.

            Section 6.10 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 Collateral may at the time be located, the Indenture
Trustee shall have the power, [with the prior written consent of the Securities
Insurer (so long as no Securities Insurer Default has occurred and is
continuing),] 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, and to vest in such Person or
Persons, in such capacity and for the benefit of the Noteholders, such title to
the Collateral, or any part hereof, and, subject to the other provisions of this
Section, such powers, duties, obligations, rights and trusts as the Indenture
Trustee [or the Securities Insurer] 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 6.11 hereof and no notice to
Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.08 hereof[; provided that the Indenture Trustee shall
deliver notice of any such co-trustee or separate trustee to the Securities
Insurer].

            (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 Collateral 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 Agreement 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, jointly with the Indenture
Trustee, subject to all the

                                      -45-

<PAGE>

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

            Section 6.11 Eligibility; Disqualification. The Indenture Trustee
shall at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee shall [be acceptable to the Securities Insurer 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. The Indenture Trustee shall comply
with TIA Section 310(b), including the optional provision permitted by the
second sentence of TIA Section 310(b)(9); provided, however, that there shall be
excluded from the operation of TIA Section 310(b)(1) any indenture or indentures
under which other securities of the Issuer are outstanding if the requirements
for such exclusion set forth in TIA Section 310(b)(1) are met.

            Section 6.12 Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee which has
resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated.

            Section 6.13 Waiver of Setoff. The Indenture Trustee hereby
expressly waives any and all rights of setoff that the Indenture Trustee may
otherwise at any time have under the applicable law with respect to any Trust
Account and agrees that amounts in the Trust Accounts shall at all times be held
and applied solely in accordance with the Basic Documents.

                                  ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

            Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses
of Noteholders. The Issuer will furnish or cause to be furnished to the
Indenture Trustee (a) not more than five days after the earlier of (i) each
Record Date and (ii) three months after the last Record Date, a list, in such
form as the Indenture Trustee may reasonably require, of the names and addresses
of the Holders of Notes as of such Record Date, (b) at such other times as the
Indenture Trustee 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 Indenture Trustee is the Note Registrar, no such list shall
be required to be furnished. The Indenture Trustee, [or if the Indenture Trustee
is not the Note Register, the Issuer, shall furnish to the Securities Insurer]
in

                                      -46-

<PAGE>

writing on an annual basis[, and at such other times as the Securities Insurer
may request, a copy of the list of Noteholders].

            Section 7.02 Preservation of Information; Communications to
Noteholders.

            (a) The Indenture Trustee 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 Indenture Trustee as provided
in Section 7.01 hereof and the names and addresses of Holders of Notes received
by the Indenture Trustee in its capacity as Note Registrar. The Indenture
Trustee may destroy any list furnished to it as provided in such Section 7.01
upon receipt of a new list so furnished. [The Indenture Trustee shall make such
list available to the Securities Insurer on request.]

            (b) Noteholders may communicate pursuant to TIA Section 312(b) with
other Noteholders with respect to their rights under this Indenture or under the
Notes.

            (c) The Issuer, the Indenture Trustee and the Note Registrar shall
have the protection of TIA Section 312(c).

            Section 7.03 Reports by Issuer.

            (a) The Issuer shall:

            (i) file with the Indenture Trustee [and the Securities Insurer],
      within 15 days after the Issuer is required to file the same with the
      Commission, copies of the annual reports and of the information, documents
      and other reports (or copies of such portions of any of the foregoing as
      the Commission may from time to time by rules and regulations prescribe)
      that the Issuer may be required to file with the Commission pursuant to
      Section 13 OR 15(d) of the Exchange Act;

            (ii) file with the Indenture Trustee[, the Securities Insurer] and
      the Commission in accordance with the rules and regulations prescribed
      from time to time by the Commission such additional information, documents
      and reports with respect to compliance by the Issuer with the conditions
      and covenants of this Indenture as may be required from time to time by
      such rules and regulations; and

            (iii) supply to the Indenture Trustee (and the Indenture Trustee
      shall transmit by mail to all Noteholders described in TIA Section 313(c))
      such summaries of any information, documents and reports required to be
      filed by the Issuer pursuant to clauses (i) and (ii) of this Section
      7.03(a) and by rules and regulations prescribed from time to time by the
      Commission.

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

            Section 7.04 Reports by Indenture Trustee. If required by TIA
Section 313(a), within 60 days after each __________, beginning with ________,
200_, the Indenture Trustee shall mail [to the Securities Insurer and] to each
Noteholder as required by TIA Section 313(c) a

                                      -47-

<PAGE>

brief report dated as of such date that complies with TIA Section 313(a). The
Indenture Trustee also shall comply with TIA Section 313(b).

            A copy of each report at the time of its mailing to Noteholders
shall be filed by the Indenture Trustee with the Commission and each securities
exchange, if any, on which the Notes are listed. The Issuer shall notify the
Indenture Trustee if and when the Notes are listed on any securities exchange.

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

            Section 8.01 Collection of Money and Claims Under the Guaranty
Policy.

            (a) Except as otherwise expressly provided herein, the Indenture
Trustee 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
Indenture Trustee pursuant to this Indenture. The Indenture Trustee 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
Collateral, 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 hereof.

            (b) [The Notes will be insured by the Guaranty Policy pursuant to
the terms set forth therein, notwithstanding any provisions to the contrary
contained in this Indenture or the Sale and Servicing Agreement. All amounts
received under the Guaranty Policy shall be used solely for the payment to
Noteholders of principal and interest on the Notes.]

            Section 8.02 Trust Accounts; Payments.

            (a) On or prior to the Closing Date, the Issuer shall cause the
Master Servicer to establish and maintain, in the name of the Indenture Trustee
for the benefit of the Noteholders [and the Securities Insurer], or on behalf of
the Owner Trustee for the benefit of the Securityholders, the Collection Account
as provided in Article V of the Sale and Servicing Agreement. The Indenture
Trustee shall establish and maintain, in the name of the Indenture Trustee on
behalf of the holders of the Notes, the Note Payment Account as provided in
Article V of the Sale and Servicing Agreement. The Indenture Trustee shall
establish and maintain, in the name of the Indenture Trustee on behalf of the
holders of the Notes, the Policy Payments Account as provided in Article V of
the Sale and Servicing Agreement. The Indenture Trustee shall also establish and
maintain an account (the "Certificate Distribution Account") in the name of the
Owner Trustee on behalf of the holders of the Residual Interest Certificates.
The Indenture Trustee shall deposit amounts into each of the accounts in
accordance with the terms hereof, the Sale and Servicing Agreement and the
Servicer's Monthly Remittance Report.

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<PAGE>

            (b) On the _______ Business Day prior to each Payment Date, the
Servicer will remit to the Indenture Trustee for deposit into the Note Payment
Account, the applicable portions of the Available Collection Amount from the
Collection Account, pursuant to Section 5.01(b)(2) of the Sale and Servicing
Agreement and the Indenture Trustee will deposit such amount in the Note Payment
Account. On each Payment Date, to the extent funds are available in the Note
Payment Account, the Indenture Trustee shall either retain funds in the Note
Payment Account for payment on such day or make the withdrawals from the Note
Payment Account and deposits into the Certificate Distribution Account for
distribution on such Payment Date as required pursuant to Section 5.01(c) of the
Sale and Servicing Agreement.

            (c) On each Payment Date and Redemption Date, to the extent funds
are available in the Note Payment Account, the Indenture Trustee shall make the
following payments from the amounts on deposit in the Note Payment Account in
the following order of priority (except as otherwise provided in Section 5.04(b)
hereof):

            (i) (A) to the Indenture Trustee, an amount equal to the Indenture
      Trustee Fee and all unpaid Indenture Trustee Fees from prior Payment
      Dates; (B) to the Master Servicer, an amount equal to the Master Servicer
      Compensation and all unpaid Master Servicing Compensation from prior
      Payment Dates; (C) to the Servicer, on behalf of the Owner Trustee, an
      amount equal to the Servicing Compensation (net of the sum of any amounts
      retained prior to deposit into the Collection Account pursuant to Section
      5.01(b)(1) of the Sale and Servicing Agreement) and all unpaid Servicing
      Compensation from prior Payment Dates; [(D) to the Securities Insurer, an
      amount equal to the Guaranty Insurance Premium and all unpaid Guaranty
      Insurance Premiums from prior Payment Dates;] and

            (ii) to the Noteholders [and the Securities Insurer], the amounts
      set forth in Sections 5.01(d) and (e) of the Sale and Servicing Agreement.

            (d) On each Payment Date and each Redemption Date, to the extent of
the interest of the Indenture Trustee in the Certificate Distribution Account
(as described in Section 5.03(a) of the Sale and Servicing Agreement), the
Indenture Trustee hereby authorizes the Owner Trustee or the Paying Agent, as
applicable, to make the distributions from the Certificate Distribution Account
as required pursuant to Sections 5.01(d) and (e) of the Sale and Servicing
Agreement.

            Section 8.03 General Provisions Regarding Accounts.

            (a) So long as no Default or Event of Default shall have occurred
and be continuing, all or a portion of the funds in the Trust Accounts shall be
invested in Permitted Investments and reinvested by the Indenture Trustee at the
direction of the Master Servicer in accordance with the provisions of Article V
of the Sale and Servicing Agreement. All income or other gain from investments
of moneys deposited in the Trust Accounts shall be deposited by the Indenture
Trustee into the Note Payment Account, and any loss resulting from such
investments shall be charged to such account.

                                      -49-

<PAGE>

            (b) Subject to Section 6.01(c) hereof, the Indenture Trustee shall
not in any way be held liable by reason of any insufficiency in any of the Trust
Accounts resulting from any loss on any Permitted Investment included therein
except for losses attributable to the Indenture Trustee's failure to make
payments on such Permitted Investments issued by the Indenture Trustee, in its
commercial capacity as principal obligor and not as trustee, in accordance with
their terms.

            (c) If (i) the Issuer shall have failed to give investment
directions for any funds on deposit in the Trust Accounts to the Indenture
Trustee by 11:00 a.m. Eastern Time (or such other time as may be agreed by the
Issuer and Indenture Trustee) on any Business Day or (ii) a Default or Event of
Default shall have occurred and be continuing with respect to the Notes but the
Notes shall not have been declared due and payable pursuant to Section 5.02
hereof or (iii) if such Notes shall have been declared due and payable following
an Event of Default, amounts collected or receivable from the Collateral are
being applied in accordance with Section 5.05 hereof as if there had not been
such a declaration, then the Indenture Trustee shall, to the fullest extent
practicable, invest and reinvest funds in the Trust Accounts in one or more
Permitted Investments.

            Section 8.04 Servicer's Monthly Statements. On each Payment Date,
the Indenture Trustee shall deliver the Servicer's Monthly Remittance Report (as
defined in the Sale and Servicing Agreement) with respect to such Payment Date
to DTC, the Master Servicer, the Rating Agencies [and the Securities Insurer].

            Section 8.05 Release of Collateral.

            (a) Subject to Section 11.01 and the terms of the Basic Documents,
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.
No party relying upon an instrument executed by the Indenture Trustee as
provided in this Article VIII 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 moneys. [The Indenture Trustee shall surrender
the Guaranty Policy to the Securities Insurer upon the conditions in Section
4.01 hereof.]

            (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due to the Certificateholders pursuant to Section
5.02(b) of the Sale and Servicing Agreement, to the Servicer pursuant to Section
8.02(c)(i)(A) hereof, to the Master Servicer pursuant to Section 8.02(c)(i)(B)
hereof, [to the Securities Insurer pursuant to Section 8.02(c)(i)(C) hereof,] to
the Indenture Trustee pursuant to Section 8.02(c)(i)(D) hereof, to the Owner
Trustee pursuant to Section 8.02(c)(i)(E) hereof and to the Custodian pursuant
to Section 8.02(c)(i)(F) hereof have been paid, release any remaining portion of
the Collateral that secured the Notes from the lien of this Indenture and
release to the Issuer or any other Person entitled thereto any funds then on
deposit in the Trust Accounts. The Indenture Trustee shall release property from
the lien of this Indenture pursuant to this Subsection (B) only upon receipt by
it [and the Securities Insurer] of an Issuer Request accompanied by an Officer's
Certificate,

                                      -50-

<PAGE>

an Opinion of Counsel and (if required by the TIA) Independent Certificates in
accordance with TIA Sections 314(c) and 314(d)(1) meeting the applicable
requirements of Section 11.01 hereof.

            Section 8.06 Opinion of Counsel. The Indenture Trustee [and the
Securities Insurer] shall receive at least seven days' prior notice when
requested by the Issuer to take any action pursuant to Section 8.05(a) hereof,
accompanied by copies of any instruments involved, and the Indenture Trustee
[and the Securities Insurer] may also require, as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee
[and the Securities Insurer], 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 and
such action will not materially and adversely impair the security for the Notes
or the rights of the Noteholders in contravention of the provisions of this
Indenture; provided, however, that such Opinion of Counsel shall not be required
to express an opinion as to the fair value of the Collateral. Counsel rendering
any such opinion may rely, without independent investigation, on the accuracy
and validity of any certificate or other instrument delivered to the Indenture
Trustee in connection with any such action.

                                   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 [and with the prior written consent of the
Securities Insurer (so long as no Securities Insurer Default has occurred and is
continuing),] the Issuer and the Indenture Trustee, when authorized by an Issuer
Order, at any time and from time to time, may enter into one or more indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, 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;

                                      -51-

<PAGE>

            (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 or to make any
      other provisions with respect to matters or questions arising under this
      Indenture or in any supplemental indenture; provided, however, that such
      action shall not adversely affect the interests of the Holders of the
      Notes;

            (vi) 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; or

            (vii) to modify, eliminate or add to the provisions of this
      Indenture to such extent as shall be necessary to effect the qualification
      of this Indenture under the TIA or under any similar federal statute
      hereafter enacted and to add to this Indenture such other provisions as
      may be expressly required by the TIA.

            The Indenture Trustee is 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 and the Indenture Trustee, [with the prior written
consent of the Securities Insurer (so long as no Securities Insurer Default has
occurred and is continuing)], when authorized by an Issuer Order, may, also
without the consent of any of the Holders of the Notes but with prior consent of
the Rating Agencies, 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 shall not, as evidenced by (i) an Opinion of Counsel
or (ii) satisfaction of the Rating Agency Condition, adversely affect in any
material respect the interests of any Noteholder [including the interests of the
Securities Insurer] to the extent it is, or will become, upon payment in full of
all amounts due to any Noteholder hereunder or pursuant to a Note, a Noteholder
pursuant to Section 2.06(b) hereof.

            Section 9.02 Supplemental Indentures with Consent of Noteholders.
The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also
may, with prior consent of the Rating Agencies,[ the Securities Insurer (so long
as no Securities Insurer Default has occurred and is continuing)] and with the
consent of the Holders of not less than a majority of the Outstanding Notes, by
Act of such Holders delivered to the Issuer 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
Outstanding Note affected thereby[ and the Securities Insurer]:

                                      -52-

<PAGE>

            (a) change the date of payment of any installment of principal of or
interest on any Note, or reduce the Note Principal Balance thereof, the interest
rate thereon or the Termination Price with respect thereto, change the
provisions of this Indenture relating to the application of collections on, or
the proceeds of the sale of, the Collateral 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
hereof, to the payment of any such amount due on the Notes on or after the
respective due dates thereof (or, in the case of redemption, on or after the
Redemption Date);

            (b) reduce the percentage of the Outstanding Notes, the consent of
the Holders of which is required for any such supplemental 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;

            (c) modify or alter the provisions of the proviso to the definition
of the term "Outstanding" or "Voting Rights";

            (d) reduce the percentage of the Outstanding Notes required to
direct the Indenture Trustee to direct the Issuer to sell or liquidate the
Collateral pursuant to Section 5.04 hereof;

            (e) modify any provision of this Section 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 Outstanding Note affected thereby;

            (f) 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 to affect the rights of the
Holders of Notes to the benefit of any provisions for the mandatory redemption
of the Notes contained herein; or

            (g) 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 Collateral 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.

            The Indenture Trustee may in its discretion determine whether or not
any Notes would be affected by any supplemental indenture and any such
determination shall be conclusive upon the Holders of all Notes, whether
theretofore or thereafter authenticated and delivered hereunder. The Indenture
Trustee shall not be liable for any such determination made in good faith.

            In connection with requesting the consent of the Noteholders
pursuant to this Section 9.02, the Indenture Trustee shall mail to the Holders
of the Notes to which such amendment or supplemental indenture relates a notice
setting forth in general terms the

                                      -53-

<PAGE>

substance of such supplemental indenture. 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.

            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 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 stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Indenture Trustee
may, but shall not be obligated to, enter into any such supplemental indenture
that affects the Indenture Trustee's own rights, duties, liabilities or
immunities under this Indenture or otherwise.

            Section 9.04 Effect of Supplemental Indentures. 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 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 Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

            Section 9.07 Amendments to Owner Trust Agreement. Subject to Section
11.1 of the Owner Trust Agreement, the Indenture Trustee shall, upon Issuer
Order, consent to any proposed amendment to the Owner Trust Agreement or an
amendment to or waiver of any provision of any other document relating to the
Owner Trust Agreement, such consent to be given without the necessity of
obtaining the consent of the Holders of any Notes upon satisfaction of the
requirements under Section 11.1 of the Owner Trust Agreement. Nothing in this
Section shall be construed to require that any Person obtain the consent of the
Indenture Trustee to any amendment or waiver or any provision of any document
where the making of such amendment or the giving of such waiver without
obtaining the consent of the Indenture

                                      -54-

<PAGE>

Trustee is not prohibited by this Indenture or by the terms of the document that
is the subject of the proposed amendment or waiver.

                                   ARTICLE X

                               REDEMPTION OF NOTES

            Section 10.01 Redemption. The Majority Residual Interestholders (as
defined in the Owner Trust Agreement) may, at its option, effect an early
redemption of the Notes on any Payment Date on or after the Payment Date on
which the Pool Principal Balance declines to ___% or less of the Original Pool
Principal Balance. The [Securities Insurer or the] Master Servicer may, at their
respective options, effect an early termination of the Notes on any Payment Date
on which the Pool Principal Balance declines to __% or less of the Original Pool
Principal Balance. The Majority Residual Interestholders, the Servicer [or the
Securities Insurer], as applicable, shall effect such early termination in the
manner specified in and subject to the provisions of Section 11.02(b) of the
Sale and Servicing Agreement.

            The Master Servicer or the Issuer shall furnish the Rating Agencies,
the Servicer [and, if redemption is effected by the Majority Residual
Interestholders, the Securities Insurer] notice of any such redemption in
accordance with Section 10.02 hereof.

            Section 10.02 Form of Redemption Notice. Notice of redemption under
Section 10.01 hereof shall be given by the Indenture Trustee by first-class
mail, postage prepaid, or by facsimile mailed or transmitted not later than 10
days prior to the applicable Redemption Date to [the Securities Insurer and]
each Holder of Notes, as of the close of business on the Record Date preceding
the applicable Redemption Date, at such Holder's address or facsimile number
appearing in the Note Register.

            All notices of redemption shall state:

            (i) the Redemption Date;

            (ii) that on the Redemption Date Noteholders shall receive the Note
      Redemption Amount; and

            (iii) the place where such Notes are to be surrendered for payment
      of the Termination Price (which shall be the office or agency of the
      Issuer to be maintained as provided in Section 3.02 hereof).

            Notice of redemption of the Notes shall be given by the Indenture
Trustee in the name of the Issuer and at the expense of the Master Servicer.
Failure to give to any Holder of any Note notice of redemption, or any defect
therein, shall not impair or affect the validity of the redemption of any other
Note.

            Section 10.03 Notes Payable on Redemption Date; Provision for
Payment of Indenture Trustee [and Securities Insurer]. The Notes to be redeemed
shall, following notice of redemption as required by Section 10.02 hereof (in
the case of redemption pursuant to

                                      -55-

<PAGE>

Section 10.01) hereof, on the Redemption Date become due and payable at the Note
Redemption Amount and (unless the Issuer shall default in the payment of the
Note Redemption Amount) no interest shall accrue thereon for any period after
the date to which accrued interest is calculated for purposes of calculating the
Note Redemption Amount. The Issuer may not redeem the Notes unless (i) all
outstanding obligations under the Notes have been paid in full and (ii) the
Indenture Trustee has been paid all amounts to which it is entitled hereunder
[and the Securities Insurer has been paid all Securities Insurer Reimbursement
Amounts to which it is entitled as of the applicable Redemption Date].

                                   ARTICLE XI

                                  MISCELLANEOUS

            Section 11.01 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 (except with
respect to the Master Servicer's servicing activity in the ordinary course of
its business), the Issuer shall furnish to the Indenture Trustee [and the
Securities Insurer] (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, (ii) an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been
complied with and (iii) (if required by the TIA) an Independent Certificate from
a firm of certified public accountants meeting the applicable requirements of
this Section, 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; and

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

                                      -56-

<PAGE>

            (b) 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 11.01(a) hereof
or elsewhere in this Indenture, furnish to the Indenture Trustee [and the
Securities Insurer] an Officer's Certificate certifying or stating the opinion
of each person signing such certificate as to the fair value (within 90 days of
such deposit) to the Issuer of the Collateral or other property or securities to
be so deposited.

            (c) Whenever the Issuer is required to furnish to the Indenture
Trustee [and the Securities Insurer] an Officer's Certificate certifying or
stating the opinion of any signer thereof as to the matters described in
Subsection (b) above, the Issuer shall also deliver to the Indenture Trustee an
Independent Certificate as to the same matters, if the fair value to the Issuer
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 Subsection (b) above and this Subsection (c), is __% or
more of the Outstanding Amount of the Notes, but such a certificate need not be
furnished with respect to any securities so deposited, if the fair value thereof
to the Issuer as set forth in the related Officer's Certificate is less than
$25,000 or less than one percent of the Outstanding Amount of the Notes.

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

            (e) 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 Subsection (d) above, the Issuer shall
also furnish to the Indenture Trustee [and the Securities Insurer] an
Independent Certificate as to the same matters if the fair value of the property
or securities and of all other property, other than 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 Subsection (d) above and this
Subsection (e), equals __% or more of the Outstanding Amount 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 Amount of the Notes.

            Section 11.02 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.

                                      -57-

<PAGE>

            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 such officer's
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 Servicer, the Master Servicer, the Transferor, the
Issuer or the Administrator, stating that the information with respect to such
factual matters is in the possession of the Servicer, the Master Servicer, the
Transferor, the Issuer or the Administrator, 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.

            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 hereof.

            Section 11.03 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 11.03.

            (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 Register.

                                      -58-

<PAGE>

            (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 11.04 Notices, Etc., to Indenture Trustee, Issuer, Rating
Agencies [and Securities Insurer. 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[, the Securities
      Insurer] 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 its Corporate Trust Office, or

            (ii) the Issuer by the Indenture Trustee[, the Securities Insurer]
      or by any Noteholder shall be sufficient for every purpose hereunder if in
      writing and made, given, furnished or filed with the Issuer addressed to:

            _________ Home Loan Owner Trust 200_-_,
                  in care of

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

      or at any other address previously furnished in writing to the Indenture
      Trustee by the Issuer or the Administrator. 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 Insurer] or the Owner Trustee shall
      be in writing, personally delivered or mailed by certified mail, return
      receipt requested, to

                                      -59-

<PAGE>

            in the case of _________, at the following address:

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

                  and

            in the case of _________:

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

            [Notices required to be given to the Securities Insurer by the
      Issuer, the Indenture Trustee or the Owner Trustee shall be in writing,
      personally delivered or mailed by certified mail, return receipt
      requested, to the following address:

                  ----------------------
                  ----------------------
                  ----------------------
                  Re: ________ Home Loan Owner Trust 200_-_,
                  Telephone No.: ______________,

      or at such other  address as shall be  designated  by written  notice to
      the other parties.]

            Notices required to be given to the Master Servicer by the Issuer,
      the Indenture Trustee[, the Securities Insurer] or the Owner Trustee shall
      be in writing, personally delivered or mailed by certified mail, return
      receipt requested to the following address:

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

      or to such other  address as shall be  designated  by written  notice to
      the other parties.

            Notices required to be given to the Depositor by the Issuer, the
      Indenture Trustee[, the Securities Insurer] or the Owner Trustee shall be
      in writing, personally delivered or mailed by certified mail, return
      receipt requested to the following address:

                  [___________________________________]
                  [200 Park Avenue
                  New York, New York 10166]
                  Attention: [_____________]

      or to such other  address as shall be  designated  by written  notice to
      the other parties.

                                      -60-

<PAGE>

            Section 11.05 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 in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his 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 duly been given.

            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.

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

            Section 11.06 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 11.07 Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

            Section 11.08 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 11.09 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

                                      -61-

<PAGE>

remaining provisions shall not in any way be affected or impaired thereby.

            Section 11.10 Benefits of Indenture. Nothing in this Indenture or in
the Notes, express or implied, shall give to any Person (other than the parties
hereto and their successors hereunder, the Noteholders, any other party secured
hereunder, any other Person with an ownership interest in any part of the
Collateral) any benefit or any legal or equitable right, remedy or claim under
this Indenture[, except that the Securities Insurer is an express third party
beneficiary to this Indenture as provided in Section 11.19].

            Section 11.11 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 11.12 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, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

            Section 11.13 Counterparts. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

            Section 11.14 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 the expense of the Master Servicer accompanied
by an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
other counsel reasonably acceptable to the Indenture Trustee [and the Securities
Insurer]) to the effect that such recording is necessary either for the
protection of the Noteholders or any other Person secured hereunder or for the
enforcement of any right or remedy granted to the Indenture Trustee under this
Indenture.

            Section 11.15 Owner Trust Obligation. No recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer, the Owner
Trustee or the Indenture Trustee on the Notes or, except as expressly provided
for in Article VI hereof, 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 Indenture Trustee or the
Owner Trustee in its individual capacity, any holder of a beneficial interest in
the Issuer, 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 expressly have 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

                                      -62-

<PAGE>

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 Articles VI, VII and VIII of the Owner Trust
Agreement.

            Section 11.16 No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by accepting a Note, hereby covenant and
agree that they will not at any time institute against the Transferor, the
Servicer, the Master Servicer or the Issuer, or join in any institution against
the Transferor, the Servicer, the Master Servicer 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.

            Section 11.17 Inspection. The Issuer agrees that, on reasonable
prior notice, it will permit any representative of the Indenture Trustee [or the
Securities Insurer], 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 reasonably be
requested. The Indenture Trustee shall and 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 may reasonably
determine that such disclosure is consistent with its obligations hereunder.

            Section 11.18 [Grant of Noteholder Rights to Securities Insurer. In
consideration for the guarantee of the Notes by the Securities Insurer pursuant
to the Guaranty Policy, the Noteholders hereby grant to the Securities Insurer
the right to act as the holder of 100% of the outstanding Notes for the purpose
of exercising the rights of the Holders of the Notes hereunder, including the
voting rights of such Holders, but excluding those rights requiring the consent
of all such Holders under Section 9.02 and any rights of such Holders to
payments under Section 8.02 hereof; provided that the preceding grant of rights
to the Securities Insurer by the Noteholders shall be subject to Section 11.20
hereof. The rights of the Securities Insurer to direct certain actions and
consent to certain actions of the Noteholders hereunder will terminate at such
time as the Note Principal Balance of the Notes has been reduced to zero and the
Securities Insurer has been reimbursed for all Insured Payments and any other
amounts owed under the Guaranty Policy and the Insurance Agreement, the
Securities Insurer has no further obligation under the Guaranty Policy and the
Guaranty Policy has been surrendered to the Securities Insurer.

            Section 11.19 Third Party Beneficiary. The parties hereto
acknowledge that the Securities Insurer is an express third party beneficiary
hereof entitled to enforce any rights reserved to it hereunder as if it were
actually a party hereto.

                                      -63-

<PAGE>

            Section 11.20 Suspension and Termination of Securities Insurer's
Rights.

            (a) During the continuation of a Securities Insurer Default, rights
granted or reserved to the Securities Insurer hereunder shall vest instead in
the Noteholders; provided that the Securities Insurer shall be entitled to any
payments in reimbursement of the Securities Insurer Reimbursement Amount, and
the Securities Insurer shall retain those rights under Sections 9.01 and 9.02
hereof to consent to any supplement to this Indenture.

            (b) At such time as the Note Principal Balance of the Notes has been
reduced to zero and the Securities Insurer has been reimbursed for all Insured
Payments and any other amounts owed under the Guaranty Policy and the Insurance
Agreement (and the Securities Insurer no longer has any obligation under the
Guaranty Policy, except for breach thereof by the Securities Insurer), then the
rights and benefits granted or reserved to the Securities Insurer hereunder
(including the rights to direct certain actions and receive certain notices)
shall terminate and the Noteholders shall be entitled to the exercise of such
rights and to receive such benefits of the Securities Insurer following such
termination to the extent that such rights and benefits are applicable to the
Noteholders.]

                            [SIGNATURE PAGE FOLLOWS]

                                      -64-

<PAGE>

            IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
this Indenture to be duly executed by their respective officers, thereunto duly
authorized and duly attested, all as of the day and year first above written.

                                       ______________ HOME LOAN
                                          OWNER TRUST 200_-_

                                       By:____________________________________
                                          not in its individual capacity but
                                          solely as Owner Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

                                          not in its individual capacity, but
                                          solely as Indenture Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

                                      -65-

<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

            BEFORE ME, the undersigned authority, a Notary Public in and for
said county and state, on this day personally appeared
___________________________, known to me to be the person and officer whose name
is subscribed to the foregoing instrument and acknowledged to me that the same
was the act of the said ______________________________, not in its individual
capacity, but solely as Owner Trustee on behalf of __________ HOME LOAN OWNER
TRUST 200_-_, a Delaware business trust, and that such person executed the same
as the act of said business trust for the purpose and consideration therein
expressed, and in the capacities therein stated.

            GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ____ day of _______,
200_.

                                          ___________________________________
                                                    Notary Public

                [SEAL]

My commission expires:

_______________________________

                                      -66-

<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

            BEFORE ME, the undersigned authority, a Notary Public in and for
said county and state, on this day personally appeared
___________________________, known to me to be the person and officer whose name
is subscribed to the foregoing instrument and acknowledged to me that the same
was the act of the said ______________________________, not in its individual
capacity, but solely as Owner Trustee on behalf of __________ HOME LOAN OWNER
TRUST 200_-_, a Delaware business trust, and that such person executed the same
as the act of said business trust for the purpose and consideration therein
expressed, and in the capacities therein stated.

            GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ____ day of _______,
200_.

                                          ___________________________________
                                                    Notary Public

                [SEAL]

My commission expires:

_________________________________

                                      -67-

<PAGE>

                                    EXHIBIT A

                                  FORM OF NOTE

                                      NOTE

            Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer or its
agent for registration of transfer, exchange or payment, and any 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.

            EACH TRANSFEREE OF THIS NOTE OR A BENEFICIAL INTEREST HEREIN THAT IS
A PLAN, OR IS A PERSON ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A PLAN,
SHALL BE DEEMED TO REPRESENT THAT THE RELEVANT CONDITIONS FOR EXEMPTIVE RELIEF
UNDER AT LEAST ONE OF THE FOLLOWING PROHIBITED TRANSACTION CLASS EXEMPTIONS HAVE
BEEN SATISFIED: PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 96-23 (RELATING
TO TRANSACTIONS EFFECTED BY AN "IN-HOUSE ASSET MANAGER"), PTCE 95-60 (RELATING
TO TRANSACTIONS INVOLVING INSURANCE COMPANY GENERAL ACCOUNTS), PTCE 91-38
(RELATING TO TRANSACTIONS INVOLVING BANK COLLECTIVE INVESTMENT FUNDS), PTCE 90-1
(RELATING TO TRANSACTIONS INVOLVING INSURANCE COMPANY POOLED SEPARATE ACCOUNTS)
AND PTCE 84-14 (RELATING TO TRANSACTIONS EFFECTED BY A "QUALIFIED PROFESSIONAL
ASSET MANAGER").

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

                                      A-1

<PAGE>

                                                              $[---------------]
No. __                                             CUSIP NO.  __________________

                  _______________ HOME LOAN OWNER TRUST 200_-_
                           HOME LOAN ASSET BACKED NOTE

            ___________________ HOME LOAN OWNER TRUST 200_-_, a business trust
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [_____________________] ($[__________])
payable on each Payment Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is the initial principal
amount of this Note and the denominator of which is the aggregate principal
amount of all Notes by (ii) the aggregate amount, if any payable from the Note
Payment Account in respect of principal on the Notes pursuant to Section 5.01(d)
and (e) of the Sale and Servicing Agreement; provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on the earlier of
(i) the applicable Maturity Date, (ii) the date of termination, if any, pursuant
to Section 11.01 of the Sale and Servicing Agreement, (iii) the date on which
either the Majority Residual Interestholders[, the Securities Insurer] or the
Servicer, as applicable, exercises its option to terminate the Issuer pursuant
to Section 11.02 of the Sale and Servicing Agreement or (iv) the date on which
an Event of Default shall have occurred and be continuing if [the Securities
Insurer declares the Notes due and payable, or, if a Securities Insurer Default
has occurred and is continuing, then if] the Indenture Trustee declares or is
directed by the Majority Noteholders to declare the Notes to be immediately due
and payable, in each case in the manner provided in Section 5.02 of the
Indenture. Capitalized terms used but not defined herein are defined in Article
I of the Indenture (the "Indenture") dated as of _________, 200_ between the
Issuer and _________________________, a __________________, which also contains
rules as to construction that shall be applicable herein.

            The Issuer will pay interest on this Note at a per annum rate equal
to the lesser of (i) One-Month LIBOR plus ____%, provided any Payment Date after
the Call Option Date, this rate shall be One-month LIBOR plus ____% and (ii) the
Net Interest Rate.

            Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

            The principal of and interest on this Note are payable 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 first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

            Reference is made to the further provisions of this Note set forth
on the reverse hereof, which shall have the same effect as though fully set
forth on the face of this Note.

            Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any

                                      A-2

<PAGE>

benefit under the Indenture referred to on the reverse hereof, or be valid or
obligatory for any purpose.

                            [Signature Page Follows]

                                      A-3

<PAGE>

            IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer, as of the date set
forth below.

Date: __________, 200_

                                       _______________ HOME LOAN OWNER TRUST
                                          200_-_

                                       By:____________________________________
                                          not in its individual capacity but
                                          solely as Owner Trustee under the
                                          Owner Trust Agreement

                                       By:____________________________________
                                          Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

            This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Date: _______________, 200_

                                       ______________________,
                                       not in its individual capacity but
                                       solely as Indenture Trustee

                                       By:____________________________________
                                          Authorized Signatory

                                      A-4

<PAGE>

                                [REVERSE OF NOTE]

            This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Home Loan Asset Backed Notes (herein called the "Notes"), as
issued under the Indenture, to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. The Notes are subject to all terms of the Indenture.

            The Notes will be secured by the collateral pledged as security
therefor as provided in the Indenture.

            Principal of the Notes will be payable on each Payment Date in an
amount described on the face hereof. "Payment Date" means the _____ day of each
month, or, if any such date is not a Business Day, the next succeeding Business
Day, commencing in ______ 200_.

            As described on the face hereof, the entire unpaid principal amount
of this Note shall be due and payable on the earlier of the applicable Maturity
Date, the optional termination of the Issuer pursuant to Section 11.02 of the
Sale and Servicing Agreement and the termination of the Sale and Servicing
Agreement pursuant to Section 11.01(a) thereof. Notwithstanding the foregoing,
the entire unpaid principal amount of the Notes shall be due and payable on the
date on which an Event of Default shall have occurred and be continuing and [if
the Securities Insurer declares the Notes due and payable, or if a Securities
Insurer Default has occurred and is continuing,] if the Indenture Trustee
declares, or is directed by the Majority Noteholders to declare, the Notes to be
immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All principal payments on the Notes shall be made pro rata to the
holders of the Notes entitled thereto.

            Payments of interest on this Note due and payable on each Payment
Date, together with the installment of principal, if any, to the extent not in
full payment of this Note, shall be made by check mailed to the Person whose
name appears as the Registered Holder of this Note (or one or more Predecessor
Notes) on the Note Register as of the close of business on each Record Date,
except that with respect to Notes registered on the Record Date in the name of
the nominee of the Clearing Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire transfer in immediately available funds to the
account designated by such nominee. Such checks shall be mailed to the Person
entitled thereto at the address of such Person as it appears on the Note
Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of this
Note (or any one or more Predecessor Notes) effected by any payments made on any
Payment Date shall be binding upon all future Holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available,
as provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Payment Date, then the Indenture Trustee, in
the name of and on behalf of the Issuer, will notify the Person who was the
Registered Holder hereof as of the Record Date preceding such Payment Date by
notice mailed or transmitted by facsimile prior to such Payment Date, and the
amount then due and payable

                                      A-5

<PAGE>

shall be payable only upon presentation and surrender of this Note at the
Indenture Trustee's principal Corporate Trust Office or at the office of the
Indenture Trustee's agent appointed for such purposes located in
___________________________.

            [________________________, as the Securities Insurer, has issued a
Guaranty Policy for the benefit of the Noteholders, which policy guarantees
payments on each Payment Date to the Indenture Trustee for the benefit of the
Noteholders of the related Noteholders' Interest Payment Amount and the
Noteholders' Principal Deficiency Amount then payable on the Notes. Unless a
Securities Insurer Default shall be continuing, the Securities Insurer shall be
deemed to be the Holder of 100% of the outstanding Notes for the purpose of
exercising certain rights, including voting rights, of the Noteholders under the
Indenture and the Sale and Servicing Agreement. In addition, on each Payment
Date, after the Noteholders have been paid all amounts to which they are
entitled, the Securities Insurer will be entitled to be reimbursed for any
unreimbursed Insured Payments and any other amounts owed under the Guaranty
Policy.]

            As provided in the Indenture and the Sale and Servicing Agreement,
the Notes may be redeemed in whole, but not in part, (a) at the option of the
holders of greater than 50% of the Residual Interest Certificates on any Payment
Date on and after the date on which the Pool Principal Balance is less than ___%
of the Original Pool Principal Balance or (b) at the option of [the Securities
Insurer or] the Servicer on any Payment Date on and after the date on which the
Pool Principal Balance is less than __% of the Original Pool Principal Balance.

            As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or such Holder's attorney
duly authorized in writing, with such signature guaranteed by an "eligible
guarantor institution" meeting the requirements of the Note Registrar, which
requirements include membership or participation in the Securities Transfer
Agent's Medallion Program ("STAMP") or such other "signature guarantee program"
as may be determined by the Note Registrar in addition to, or in substitution
for, STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended, and thereupon one or more new Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee
or transferees. No service charge will be charged to a Holder [or the Securities
Insurer] for any registration of transfer or exchange of this Note, but the
Issuer may require a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any such registration of transfer
or exchange.

            Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees that
no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection 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 or employee
of the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in

                                      A-6

<PAGE>

its individual capacity, except as any such Person may have expressly agreed 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.

            Each Noteholder or Note Owner, by acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees by
accepting the benefits of the Indenture that such Noteholder or Note Owner will
not at any time institute against the Transferor, the Servicer, the Master
Servicer or the Issuer, or join in any institution against the Transferor, the
Servicer, the Master Servicer or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, the Indenture or the Basic Documents.

            The Issuer has entered into the Indenture and this Note is issued
with the intention that, for federal, state and local income, single business
and franchise tax purposes, the Notes will qualify as indebtedness of the Issuer
secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and each
Note Owner by acceptance of a beneficial interest in a Note), agrees to treat
the Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

            Prior to the due presentment for registration of transfer of this
Note, the Issuer[, the Securities Insurer], the Indenture Trustee and any agent
of the Issuer[, the Securities Insurer] or the Indenture Trustee may treat the
Person in whose name this Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and none of the
Issuer[, the Securities Insurer], the Indenture Trustee or any such agent 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 with the consent of the Rating Agencies[, the Securities
Insurer (provided that no Securities Insurer Default has occurred and is
continuing)] and the Holders of Notes representing not less than a majority of
the Outstanding Notes. The Indenture also contains provisions permitting the
[Securities Insurer, or if a Securities Insurer Default has occurred and is
continuing,] the Holders of Notes representing not less than a majority of the
Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to
waive compliance by the Issuer with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note (or any one or more Predecessor
Notes) shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any 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 this Note. The Indenture also permits the
Indenture Trustee [or the Securities Insurer] to amend or waive certain terms
and conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder.

                                      A-7

<PAGE>

            The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

            The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

            This Note and the Indenture shall be construed in accordance with
the laws of the State of New York, without reference to its conflict of law
provisions, and the obligations, rights and remedies of the parties hereunder
and thereunder shall be determined in accordance with such laws.

            No reference herein to the Indenture and no provision of this Note
or of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency herein prescribed.

            Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of the Issuer in its individual capacity,
the Owner Trustee in its individual capacity, any owner of a beneficial interest
in the Issuer, or any of their 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 this Note or performance of, or omission to perform,
any of the covenants, obligations or indemnifications contained in the
Indenture. The Holder of this Note by its acceptance hereof agrees that, except
as expressly provided in the Basic Documents, in the case of an Event of Default
under the Indenture, 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 Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

                                      A-8

<PAGE>

                                   ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

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

                         (name and address 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:

____________________________________________________________________________*/

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

*/NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

                                      A-9Exhibit 4.7

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

                          SALE AND SERVICING AGREEMENT

                         Dated as of ___________, 200__

                                      among

                  _____________ HOME LOAN OWNER TRUST 200__-__
                                    (Issuer)

                       [--------------------------------]
                                   (Depositor)

                          -----------------------------
                        (Transferor and Master Servicer)

                                       and

                          -----------------------------
                               (Indenture Trustee)

                   ____________ HOME LOAN OWNER TRUST 200__-__
                          HOME LOAN ASSET BACKED NOTES

                               SERIES 200__-__

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

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                    ARTICLE I

                                   DEFINITIONS

Section 1.01  Definitions....................................................1
Section 1.02  Other Definitional Provisions.................................24

                                   ARTICLE II

                          CONVEYANCE OF THE HOME LOANS

Section 2.01  Conveyance of the Home Loans..................................25
Section 2.02  Ownership and Possession of Home Loan Files...................25
Section 2.03  Books and Records.............................................25
Section 2.04  Delivery of Home Loan Documents...............................26
Section 2.05  Acceptance by the Indenture Trustee of the Home Loans;
               Certain Substitutions; Certification by the Custodian........28

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

Section 3.01  Representations and Warranties of the Depositor...............30
Section 3.02  Representations and Warranties of the Transferor..............31
Section 3.03  Representations, Warranties and Covenants of the Master
               Servicer.....................................................34
Section 3.04  Representations and Warranties Regarding Individual Home
               Loans........................................................36
Section 3.05  Purchase and Substitution.....................................42

                                   ARTICLE IV

                 ADMINISTRATION AND SERVICING OF THE HOME LOANS

Section 4.01  Appointment and Duties of the Master Servicer.................45
Section 4.02  Interim Servicer..............................................48
Section 4.03  Powers of Attorney............................................48
Section 4.04  Filing of Continuation Statements.............................48
Section 4.05  Reports to the Securities and Exchange Commission.............49

                                      -i-

<PAGE>

                                    ARTICLE V

                         ESTABLISHMENT OF TRUST ACCOUNTS

Section 5.01  Collection Account and Note Payment Account...................49
Section 5.01A Claims Under Guaranty Policy..................................53
Section 5.02  Certificate Distribution Account..............................55
Section 5.03  Trust Accounts; Trust Account Property........................56
Section 5.04  Allocation of Losses..........................................58

                                   ARTICLE VI

                       STATEMENTS AND REPORTS; WITHHOLDING

Section 6.01  Statements....................................................58
Section 6.02  Withholding...................................................61

                                   ARTICLE VII

                          GENERAL SERVICING PROCEDURES

Section 7.01  Servicing Advances............................................62
Section 7.02  Release of Home Loan Files....................................62
Section 7.03  Servicing Compensation........................................63
Section 7.04  Statement as to Compliance and Financial Statements...........63
Section 7.05  Independent Public Accountants' Servicing Report..............64
Section 7.06  Reports to the Indenture Trustee; Collection Account
               Statements...................................................64
Section 7.07  Financial Statements and Records of Servicer..................64

                                  ARTICLE VIII

                                   (RESERVED)

                                   ARTICLE IX

                               THE MASTER SERVICER

Section 9.01  Indemnification; Third Party Claims...........................65
Section 9.02  Merger or Consolidation of the Master Servicer................66
Section 9.03  Limitation on Liability of the Master Servicer and Others.....66
Section 9.04  Master Servicer Not to Resign; Assignment.....................66
Section 9.05  [Reserved.]...................................................67
Section 9.06  Relationship of Master Servicer to the Issuer and the
               Indenture Trustee............................................67
Section 9.07  Master Servicer May Own Securities............................67
Section 9.08  Right to Examine Master Servicer Records......................67
Section 9.09  Financial Statements..........................................68

                                      -ii-

<PAGE>

                                    ARTICLE X

                                     DEFAULT

Section 10.01 Master Servicer Events of Default.............................68
Section 10.02 [Reserved]....................................................70
Section 10.03 Waiver of Defaults............................................70
Section 10.04 Accounting Upon Termination of Master Servicer................70

                                   ARTICLE XI

                                   TERMINATION

Section 11.01 Termination...................................................71
Section 11.02 Optional Termination..........................................71
Section 11.03 Notice of Termination.........................................72

                                   ARTICLE XII

                            MISCELLANEOUS PROVISIONS

Section 12.01 Acts of Noteholders...........................................72
Section 12.02 Amendment.....................................................72
Section 12.03 Recordation of Agreement......................................73
Section 12.04 Duration of Agreement.........................................73
Section 12.05 Governing Law.................................................73
Section 12.06 Notices.......................................................73
Section 12.07 Severability of Provisions....................................74
Section 12.08 No Partnership................................................74
Section 12.09 Counterparts..................................................74
Section 12.10 Successors and Assigns........................................74
Section 12.11 Headings......................................................74
Section 12.12 Actions of Securityholders....................................75
Section 12.13 Reports to Rating Agencies....................................75
Section 12.14 Holders of the Residual Interest Certificates.................76
Section 12.15 [Grant of Noteholder Rights to Securities Insurer.............76
Section 12.16 Third Party Beneficiary.......................................76
Section 12.17 [Suspension and Termination of Securities Insurer's Rights....76

EXHIBITS:

A  -  Home Loan Schedule
B  -  Form of Servicer's Monthly Remittance Report to Indenture Trustee
C  -  Form of Loan Liquidation Report
D  -  Form of Master Servicer Renewal Notice
E  -  Form of Standard Servicing Terms

                                     -iii-

<PAGE>

            This SALE AND SERVICING AGREEMENT is entered into effective as of
_________, 200__, (this "Agreement") among ______________ HOME LOAN OWNER TRUST
200__-__, a Delaware business trust (the "Issuer" or the "Trust"),
[________________________________], a Delaware corporation, as Depositor (the
"Depositor"), ______________________________, a ________________________
("___________"), as Transferor (in such capacity, the "Transferor") and Master
Servicer (in such capacity, the "Master Servicer") and
_____________________________, a ____________________, as Indenture Trustee on
behalf of the Noteholders (the "Indenture Trustee").

                              W I T N E S S E T H:

            In consideration of the mutual agreements herein contained, the
parties hereto hereby agree as follows for the benefit of each of them and for
the benefit of the holders of the Notes issued under the Indenture, the Residual
Interest Certificates issued under the Owner Trust Agreement [and the Securities
Insurer for issuing the Guaranty Policy]:

                                   ARTICLE I

                                   DEFINITIONS

            Section 1.01 Definitions. Whenever used in this Agreement, the
following words and phrases, unless the context otherwise requires, shall have
the meanings specified in this Article. Unless otherwise specified, all
calculations of interest described herein shall be made on the basis of the
actual number of days elapsed during the related Interest Accrual Period and a
360-day year.

            Accepted Servicing Procedures: Servicing procedures that satisfy the
following: (a) meet at least the same standards the Servicer would follow in
exercising reasonable care in servicing mortgage loans such as the Home Loans
held for its own account; (b) comply with applicable state and federal law; (c)
comply with the provisions of the related Debt Instruments and Mortgages; and
(d) give due consideration to the accepted standards of practice of prudent loan
servicers that service sub-prime mortgage loans comparable to the Home Loans,
including the terms set forth in the Standard Servicing Terms set forth herein
as Exhibit E, and the reliance placed by [the Securities Insurer,] the Master
Servicer and Securityholders on the Servicer for the servicing of the Home
Loans, but without regard to:

            (a) any relationship that the Servicer or any Affiliate of the
      Servicer may have with the related Obligor;

            (b) the ownership of any Notes or the Residual Interest Certificates
      by the Servicer or any Affiliate of the Servicer;

            (c) the Servicer's obligation to make Servicing Advances; or

<PAGE>

            (d) the Servicer's right to receive compensation for its services
      hereunder with respect to any particular transaction.

            Accrual Period: With respect to the Notes and any Payment Date, the
period commencing on the Payment Date preceding the month in which the related
Payment Date occurs and ending on the day immediately preceding the related
Payment Date, except in the case of the first Payment Date, which shall be the
period commencing on the Closing Date and ending on the first Payment Date.

            Administration Agreement: The Administrative Agreement, dated as of
__________, 200__, by and among the Issuer, _______________________ and
__________________________.

            Affiliate: With respect to any specified Person, any other Person
controlling, controlled by, or under common control with such specified Person.
For the purposes of this definition, the term "control", when used with respect
to any specified Person, means the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and
"controlled" have corresponding meanings.

            Agreement: This Sale and Servicing Agreement and all amendments
hereof and supplements hereto.

            Annual Loss Percentage: With respect to any Payment Date, a
fraction, expressed as a percentage, the numerator of which is the aggregate of
all Realized Losses for the twelve preceding Due Periods ending on the last day
of the preceding Due Period and the denominator of which is the Pool Principal
Balance as of the first day of the twelfth preceding Due Period.

            Assignment of Mortgage: With respect to each Home Loan, an
assignment, notice of transfer or equivalent instrument sufficient under the
laws of the jurisdiction wherein the related Mortgaged Property is located to
reflect or record the sale of the related Home Loan 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.

            Available Collection Amount: With respect to any Payment Date, an
amount without duplication equal to the sum of: (i) all amounts received on the
Home Loans or required to be paid by the Master Servicer, the Servicer or the
Transferor during the related Due Period (exclusive of amounts not required to
be deposited in the Collection Account pursuant to Section 5.01(b)(1) hereof and
amounts permitted to be withdrawn by the Indenture Trustee from the Collection
Account pursuant to Section 5.01(b)(3) hereof); (ii) upon exercise of optional
redemption of the Notes and termination of the Issuer pursuant to Section 11.02
hereof, the Termination Price; and (iii) the Purchase Price paid for any Home
Loans purchased pursuant to Section 3.05 hereof prior to the related
Determination Date and the Substitution Adjustment to be deposited in the
Collection Account in connection with any substitution, in each case prior to
the related Determination Date.

                                      -2-

<PAGE>

            Available Payment Amount: With respect to any Payment Date, the
Available Collection Amount deposited into the Note Payment Account, minus the
amount of any Trust Fees and Expenses required to be paid from the Note Payment
Account pursuant to Section 5.01(c)(i) hereof.

            Business Day: Any day other than (a) a Saturday or Sunday, or (b) a
day on which the banking institutions are authorized or obligated by law or
executive order to be closed in a city at any of the following locations: (i)
The City of New York, [(ii) where the Securities Insurer is located,] (iii)
where the Corporate Trust Office of the Indenture Trustee is located, (iv) where
the servicing operations of the Servicer are located or (v) where the master
servicing operations of the Master Servicer are located.

            Call Option Date: The first Payment Date on which the Pool Principal
Balance has declined to ___% or less of the Original Pool Principal Balance.

            Certificate Distribution Account: The account designated as such,
established and maintained pursuant to Section 5.02 hereof.

            Certificate Register: The register established pursuant to Section
3.4 of the Owner Trust Agreement.

            Certificateholder: A holder of a Residual Interest Certificate.

            Closing Date: ___________, 200__.

            Code: The Internal Revenue Code of 1986, as amended from time to
time, and Treasury Regulations promulgated thereunder.

            Collection Account: The Eligible Account established and maintained
by the Indenture Trustee pursuant to Section 5.01(a)(1) hereof.

            Compensating Interest: With respect to any Due Period, the amount of
the shortfall in the interest portion of the Monthly Payments due on Home Loans
that prepay in full or in part during the related month other than on the date
the Monthly Payments were due.

            Custodial Agreement: The custodial agreement dated as of __________,
200__ by and among the Depositor, the Issuer, ___________, as the Transferor and
as the Master Servicer, and _______________________, a
__________________________, as the custodian, providing for the retention of the
Indenture Trustee's Home Loan Files by such custodian on behalf of the Owner
Trust.

            Custodian: Any custodian [acceptable to the Securities Insurer and]
appointed by the Indenture Trustee pursuant to the Custodial Agreement, which
custodian shall not be affiliated with the Master Servicer, the Transferor, the
Servicer or the Depositor.___________________, ________________ shall be the
initial Custodian pursuant to the terms of the Custodial Agreement.

                                      -3-

<PAGE>

            Custodian's Final Certification: As defined in Section 1(c) of the
Custodial Agreement.

            Custodian's Initial Certification: As defined in Section 1(a) of the
Custodial Agreement.

            Custodian's Updated Certification: As defined in Section 1(c) of the
Custodial Agreement.

            Cut-Off Date: The close of business on _____________, 200__.

            Debt Instrument: The mortgage note evidencing the indebtedness of an
Obligor under a Home Loan.

            Defaulted Home Loan: With respect to any date of determination, any
Home Loan, including, without limitation, any Liquidated Home Loan with respect
to which any of the following has occurred as of the end of the preceding Due
Period: (a) foreclosure or similar proceedings have been commenced; or (b) the
Servicer has determined in good faith and in accordance with the Accepted
Servicing Procedures that such Home Loan is in default for a period in excess of
30 days or imminent default and that such default or imminent default involves
the nonpayment of any Monthly Payment or a default which has or would have a
material adverse affect on such Home Loan.

            Defective Home Loan: As defined in Section 3.05 hereof.

            Deficiency Amount: As of any Payment Date, the sum of (a) the amount
by which (1) the Noteholders' Interest Payment Amount for the Notes on such
Payment Date less Relief Act Shortfalls for such Payment Date, exceeds (2) the
Available Payment Amount for such Payment Date, and (b) the Noteholders'
Principal Deficiency Amount for such Payment Date.

            Deleted Home Loan: A Home Loan replaced or to be replaced by one or
more than one Qualified Substitute Home Loan.

            Delinquent: A Home Loan is "Delinquent" if any Monthly Payment due
thereon is not made by the Due Date. A Home Loan shall be deemed to be "30 days
Delinquent" if the delinquency remains uncured for two calendar months, but not
three. The determination of whether a Home Loan is "60 days Delinquent," "90
days Delinquent", etc., shall be made in like manner.

            Delivery: When used with respect to Trust Account Property means the
delivery of such Trust Account Property in a manner that results in the
transferee having either the status of a perfected security interest free of any
adverse claims or a holder in due course in accordance with the following: (a)
in the case of "certificated securities" or "uncertificated securities" (in
either case as defined in Article 8 of the UCC), the applicable provisions of
Article 8 of the UCC, and in the case of "instruments", "accounts" or "general
intangibles" (in either case as defined in Article 9 of the UCC), the applicable
provisions of Article 9 of the UCC; or (b) in the case of book-entry securities
governed by Federal law, the applicable provisions of Federal law.

                                      -4-

<PAGE>

            Denomination: With respect to a Note, the portion of the Original
Note Principal Balance represented by such Note as specified on the face
thereof.

            Depositor: [________________________________], a [_________]
[_________], and any successor thereto.

            Determination Date: With respect to any Payment Date, the _______
calendar day of the month in which such Payment Date occurs or if such day is
not a Business Day, the immediately preceding Business Day.

            Due Date: With respect to a Monthly Payment, the day of the month on
which such Monthly Payment is due from the Obligor on a Home Loan.

            Due Period: With respect to any Determination Date or Payment Date,
the ____ day of the calendar month preceding the month in which the relevant
Determination Date or Payment Date occurs, and ending on the ______ day of the
month in which the relevant Determination Date or Payment Date occurs.

            Eligible Account: At any time, an account that is either:

            (a) A segregated account or accounts maintained with an institution
      that satisfies the following: (1) whose deposits are insured by the FDIC;
      (2) whose unsecured and uncollateralized long-term debt obligations of
      which are then rated by each Rating Agency in one of their two highest
      short-term ratings; and (3) which is either (i) a federal savings and loan
      association duly organized, validly existing and in good standing under
      the federal banking laws, (ii) an institution duly organized, validly
      existing and in good standing under the applicable banking laws of any
      state, (iii) a national banking association duly organized, validly
      existing and in good standing under the federal banking laws, (iv) a
      principal subsidiary of a bank holding company, or (v) an institution
      approved in writing by the Securities Insurer and each Rating Agency; or

            (b) A segregated trust account or accounts maintained with the
      corporate trust department of a federal or state chartered depository
      institution that satisfies the following: (1) is acceptable to the
      Securities Insurer and each Rating Agency; (2) has capital and surplus of
      not less than $100,000,000; and (3) is acting in its fiduciary capacity.

            Eligible Servicer: A Person that (i) has demonstrated the ability
professionally and competently to service a portfolio of mortgage loans similar
to the Home Loans, (ii) has a net worth calculated in accordance with GAAP of at
least $500,000, and (iii) is acceptable to the Securities Insurer and each
Rating Agency.

            Excess Spread: With respect to any Payment Date, the excess of (a)
the Available Payment Amount over (b) the Regular Payment Amount.

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

                                      -5-

<PAGE>

            FHLMC: Freddie Mac (f/k/a Federal Home Loan Mortgage Corporation)
and any successor thereto.

            FNMA: Fannie Mae (f/k/a Federal National Mortgage Association) and
any successor thereto.

            Foreclosed Loan: As of any date of determination, any Home Loan that
has been discharged as a result of (i) the completion of foreclosure or
comparable proceedings; (ii) the Issuer's acceptance of the deed or other
evidence of title to any related Mortgaged Property in lieu of foreclosure or
other comparable proceeding; or (iii) the acquisition by the Issuer of title to
any related Mortgaged Property by operation of law.

            Foreclosure Property: Any real property securing a Foreclosed Loan
that has been acquired by the Servicer through foreclosure, deed in lieu of
foreclosure or similar proceedings in respect of the related Home Loan.

            GAAP: Generally accepted accounting principles as in effect in the
United States.

            [Guaranty Insurance Premium: The premium payable monthly that is
specified in the Premium Letter.]

            [Guaranty Policy: That certain financial guaranty insurance policy
for the Notes, number dated _________, 200__, and issued by the Securities
Insurer to the Indenture Trustee and guaranteeing payment of any Insured Payment
thereunder.]

            Home Loan: Any mortgage loan that is included in the Home Loan Pool.
As applicable, a Home Loan shall be deemed to refer to the related Debt
Instrument, the Mortgage and any related Foreclosure Property, and shall
include, among other items, all Monthly Payments with a Due Date after the
Cut-Off Date.

            Home Loan File: As to each Home Loan, the Indenture Trustee's Home
Loan File and the Servicer's Home Loan File.

            Home Loan Interest Rate: The annual rate of interest borne by a Debt
Instrument, as shown on the related Home Loan Schedule.

            Home Loan Pool: The pool of Home Loans conveyed to the Issuer
pursuant to this Agreement on the Closing Date, together with the payments
thereon and proceeds therefrom received after the applicable Cut-Off Date, as
identified on the Home Loan Schedule annexed hereto as Exhibit A.

            Home Loan Purchase Agreement: The Home Loan Purchase Agreement
between the Transferor and the Depositor, dated as of __________, 200__.

            Home Loan Schedule: The schedule of Home Loans set forth on Exhibit
A attached hereto, as amended or supplemented from time to time specifying, with
respect to each Home Loan, the following information: (i) the Transferor's Home
Loan number; (ii) the

                                      -6-

<PAGE>

Obligor's name and the street address; (iii) the current principal balance; (iv)
the original principal amount with respect to any Home Loan originated by the
Transferor and the principal amount purchased by the Transferor with respect to
a Home Loan acquired by the Transferor subsequent to its origination; (v) any
related Loan-to-Value Ratio as of the date of the origination of the related
Home Loan; (vi) the paid through date; (vii) whether the Home Loan pays interest
at a fixed rate or an adjustable rate; (viii) the current Home Loan Interest
Rate; (ix) if such Home Loan has an adjustable Home Loan Rate, (A) the initial
rate reset date, (B) the frequency of the rate reset, (C) the initial periodic
cap, (D) the subsequent periodic cap, (E) the margin, (F) the maximum lifetime
rate and (G) the minimum lifetime rate; (x) the final maturity date under the
Debt Instrument; (xi) the current Monthly Payment; (xii) the occupancy status of
the Mortgaged Property, if any; and (xiii) the original term of the Debt
Instrument.

            Indemnification and Contribution Agreement: The Indemnification and
Contribution Agreement dated as of __________, 200__ by and among
_________________________, the Depositor, [Barclays],
_______________________________ and _______________________________________.

            Indenture: The Indenture, dated as of ____________, 200__, between
the Issuer and the Indenture Trustee.

            Indenture Trustee: _____________________, a
__________________________, as Indenture Trustee under the Indenture and this
Agreement acting on behalf of the Noteholders, or any successor indenture
trustee under the Indenture or this Agreement.

            Indenture Trustee Fee: As to any Payment Date, the one-twelfth
(1/12) of the Indenture Trustee Fee Rate times the Pool Principal Balance as of
the opening of business on the first day of the Due Period immediately preceding
the calendar month of such Payment Date (or, with respect to the first Payment
Date, the Original Pool Principal Balance).

            Indenture Trustee Fee Rate: __________% ( _____ basis points) per
annum.

            Indenture Trustee's Home Loan File: As defined in Section 2.04
hereof.

            Independent: When used with respect to any specified Person, such
Person (i) is in fact independent of the Transferor, the Servicer, the Master
Servicer, the Depositor, [the Securities Insurer,] the Indenture Trustee or any
of their respective Affiliates, (ii) does not have any direct financial interest
in, or any material indirect financial interest in, any of the Transferor, the
Servicer, the Master Servicer, the Depositor, [the Securities Insurer,] the
Indenture Trustee or any of their respective Affiliates and (iii) is not
connected with any of the Transferor, the Servicer, the Depositor, [the
Securities Insurer,] the Indenture Trustee or any of their respective
Affiliates, as an officer, employee, promoter, underwriter, trustee, partner,
director or Person performing similar functions; provided, however, that a
Person shall not fail to be Independent of the Transferor, the Servicer, the
Depositor, [the Securities Insurer,] the Indenture Trustee or any of their
respective Affiliates merely because such Person is the beneficial owner of 1%
or less of any the securities issued by the Transferor, the Servicer, the
Depositor or any of their respective Affiliates, as the case may be.

                                      -7-

<PAGE>

            Independent Accountants: A firm of nationally recognized certified
public accountants that is in fact Independent.

            [Insurance Agreement: The Insurance and Indemnity Agreement, dated
as of _________, 200__, among the Securities Insurer, the Transferor, the Master
Servicer, the Depositor and the Issuer.]

            [Insured Payment: With respect to the Guaranty Policy, as of any
Payment Date (i) any Deficiency Amount and (ii) any Preference Amount.]

            [Insured Securities: Each of the Notes.]

            Interest Reduction Amount: As to any Payment Date, the sum of the
Servicing Fee, the Master Servicer Fee, the Indenture Trustee Fee, [and the
Guaranty Insurance Premium] payable with respect to such Payment Date or the
related Interest Accrual Period or Due Period as applicable, provided that on
any Payment Date on or after the Payment Date occurring in __________ 200__, the
Interest Reduction Amount shall increase by an amount equal to one-twelfth of
the product of ____% and the aggregate Principal Balance of the Home Loans as of
the first day of the related Due Period.

            Issuer: _____________ Home Loan Owner Trust 200__-__, a Delaware
business trust.

            Liquidated Home Loan: With respect to any date of determination, any
Foreclosure Property or any Home Loan in respect of which a Monthly Payment is
in excess of 30 days past due and as to which the Servicer has determined that
all amounts which it reasonably and in good faith expects to collect have been
recovered from or on account of such Home Loan or the related Foreclosure
Property; provided, however, that in any event any Home Loan or the related
Foreclosure Property shall be deemed uncollectible and therefore be a Liquidated
Home Loan upon the earliest to occur of: (i) the liquidation or disposition of
such Home Loan or the related Foreclosure Property; or (ii) the determination by
the Servicer in accordance with the Accepted Servicing Procedures that there is
no reasonable likelihood of (A) recovering an economically significant amount
attributable to the outstanding interest and principal owing on such Home Loan
from either the related Mortgaged Property or the Obligor, in excess of (B) the
costs and expenses to obtain such recovery (including without limitation any
Servicing Advances), and in relation to (C) the expected timing of such recovery
therefrom.

            Liquidation Proceeds: With respect to a Liquidated Home Loan, any
cash amounts received in connection with the liquidation or disposition of such
Liquidated Home Loan, whether through trustee's sale, foreclosure sale or other
disposition, any cash amounts received in connection with the management of the
Foreclosure Properties from Foreclosed Home Loans and any other amounts required
to be deposited in the Collection Account pursuant to Section 5.01(b) hereof, in
each case other than Property Insurance Proceeds and Released Mortgaged Property
Proceeds.

            Loan-to-Value Ratio: With respect to any Home Loan, the fraction,
expressed as a percentage, (a) the numerator of which is the principal balance
of such Home Loan at origination and (b) the denominator of which is the value
as determined pursuant to the

                                      -8-

<PAGE>

Transferor's underwriting guidelines of the related Mortgaged Property at the
time of origination of such Home Loan.

            Majority Noteholders: The holder or holders of in excess of 50% of
the Note Principal Balance of all the Notes.

            Majority Residual Interestholders: The holder or holders of more
than 50% of the Residual Interest.

            Master Servicer: _______________________, a _______________________,
as Master Servicer hereunder, or any successor Master Servicer hereunder.

            Master Servicer Compensation: The Master Servicer Fee and other
amounts to which the Master Servicer is entitled pursuant to Section 4.01(a)
hereof.

            Master Servicer Event of Default: As described in Section 10.01
hereof.

            Master Servicer Fee: As to each Home Loan (including any Home Loan
that has been foreclosed and has become a Foreclosure Property, but excluding
any Liquidated Home Loan), the fee payable monthly to the Master Servicer on
each Payment Date, which shall equal the product of (a) one-twelfth (1/12) of
_______% (___ basis points) and (b) the Principal Balance of such Home Loan as
of the beginning of the immediately preceding Due Period.

            Maturity Date: With respect to the Notes, the Payment Date occurring
in __________ 203__.

            Monthly Advance: As defined in Section 4.01(h) hereof.

            Monthly Advance Reimbursement Amount: With respect to any date of
determination and with respect to the receipt of proceeds from or the
liquidation of a Home Loan for which any Monthly Advances have been made, the
amount of any such Monthly Advances that have not been reimbursed as of such
date, including Nonrecoverable Monthly Advances.

            Monthly Cut-Off Date: The last day of any calendar month and, with
respect to any Payment Date, the last day of the calendar month immediately
preceding such Payment Date.

            Monthly Payment: The scheduled monthly payment of principal and/or
interest required to be made by an Obligor on the related Home Loan, as set
forth in the related Debt Instrument.

            Mortgage: The mortgage, deed of trust or other security instrument
creating a lien in accordance with applicable law on a Mortgaged Property to
secure the Debt Instrument which evidences a Home Loan.

            Mortgaged Property: The real property encumbered by the Mortgage
that secures the Debt Instrument evidencing a Home Loan.

                                      -9-

<PAGE>

            Mortgaged Property States: Each state in which any Mortgaged
Property securing a Home Loan is located as set forth in the Home Loan Schedule.

            Net Interest Rate: As to any Payment Date, the annualized percentage
derived from the fraction (which shall not be greater than 1), the numerator of
which is the positive difference, if any, between (x) the amount of all interest
due on the Home Loans during the related Due Period and (y) the Interest
Reduction Amount and the denominator of which is the aggregate principal amount
of the Notes immediately prior to such Payment Date.

            Net Liquidation Proceeds: With respect to any Payment Date,
Liquidation Proceeds received during the related Due Period, net of any
reimbursements to the Servicer or the Master Servicer, as the case may be, made
from such amounts for the following: (i) any unreimbursed Servicing Compensation
or Master Servicing Compensation; and (ii) Servicing Advances (including
Nonrecoverable Servicing Advances) made, and (iii) Monthly Advances (including
Nonrecoverable Monthly Advances) made and any other fees and expenses paid in
connection with the foreclosure, conservation or liquidation of the related
Liquidated Home Loan or Foreclosure Property.

            Net Loan Losses: With respect to any Defaulted Home Loan that is
subject to a modification, an amount equal to the portion of the Principal
Balance, if any, released in connection with such modification.

            Nonrecoverable Monthly Advance: With respect to any Defaulted Home
Loan or any Foreclosure Property, any Monthly Advance previously made and not
reimbursed from late or other fee collections, Liquidation Proceeds, Property
Insurance Proceeds or the Released Mortgaged Property Proceeds following the
liquidation or disposition of such Defaulted Home Loan or Foreclosure Property,
as evidenced by an Officer's Certificate delivered to the Indenture Trustee [and
the Securities Insurer].

            Nonrecoverable Servicing Advance: With respect to any Defaulted Home
Loan or any Foreclosure Property, any Servicing Advance previously made and not
reimbursed from late or other fee collections, Liquidation Proceeds, Property
Insurance Proceeds or the Released Mortgaged Property Proceeds following the
liquidation or disposition of such Defaulted Home Loan or Foreclosure Property,
as evidenced by an Officer's Certificate delivered to the Indenture Trustee, the
Master Servicer [and the Securities Insurer].

            Note: Any of the Notes issued pursuant to the Indenture.

            Note Factor: With respect to any date of determination, the Note
Principal Balance divided by the Original Note Principal Balance.

            Note Interest Rate: As to any Payment Date, a per annum rate equal
to the lesser of (i) One-Month LIBOR plus _____%, provided that on any Payment
Date after the Call Option Date, this rate shall be One-Month LIBOR plus _____%;
and (ii) the Net Interest Rate.

            Note Payment Account: The Eligible Account established and
maintained pursuant to Section 5.01(a)(2) hereof.

                                      -10-

<PAGE>

            Note Principal Balance: As of any date of determination, the
Original Note Principal Balance reduced by the sum of all amounts previously
distributed in respect of principal of such Notes on all previous Payment Dates.

            Note Redemption Amount: As of any date of determination, an amount
without duplication equal to the sum of (i) the then outstanding Note Principal
Balance of all Notes plus all accrued and unpaid interest thereon including any
unpaid Noteholders Interest Carry-Forward Amount, (ii) any Trust Fees and
Expenses due and unpaid on such date, (iii) any Servicing Advance Reimbursement
Amount [and Monthly Advance Reimbursement Amount and (iv) any due and unpaid
Securities Insurer Reimbursement Amount].

            Noteholder: A holder of a Note.

            Noteholders' Interest Carry-Forward Amount: With respect to any
Payment Date, (A) if on the immediately preceding Payment Date the Note Interest
Rate was limited pursuant to clause (ii) of the definition of "Note Interest
Rate," the excess, if any, of the amount of interest that would have accrued on
the Notes for the immediately preceding Payment Date pursuant to clause (i) of
the definition thereof, over the amount of interest that was due on the Notes
for the immediately preceding Payment Date pursuant to clause (ii) of the
definition thereof, plus (ii) any outstanding Noteholders' Interest
Carry-Forward Amount remaining unpaid from prior Payment Dates, together with
interest thereon at the Note Interest Rate (without regard to clause (ii)
thereof).

            Noteholders' Interest Payment Amount: With respect to any Payment
Date, the sum of the Noteholders' Monthly Interest Payment Amount for such
Payment Date and the Noteholders' Interest Shortfall Amount for such Payment
Date.

            Noteholders' Interest Shortfall Amount: With respect to any Payment
Date, the excess, if any, of (A) the Noteholders' Monthly Interest Payment
Amount for the preceding Payment Date plus any outstanding Noteholders' Interest
Shortfall Amount on such preceding Payment Date, over (B) the amount in respect
of interest that is actually deposited in the Note Payment Account on such
preceding Payment Date.

            Noteholders' Monthly Interest Payment Amount: With respect to each
Payment Date and the Notes, the interest accrued during the related Accrual
Period at the Note Interest Rate on the Note Principal Balance of the Notes
immediately preceding such Payment Date (or, in the case of the first Payment
Date, beginning on the Closing Date) after giving effect to all payments of
principal to the holders of the Notes on or prior to such preceding Payment
Date.

            Noteholders' Principal Deficiency Amount: (1) With respect to any
Payment Date (other than as set forth in (2) below), the excess, if any, of (a)
the Note Principal Balance as of such Payment Date (after giving effect to all
payments of principal on such Payment Date, but without giving effect to any
payments in respect of this Noteholders' Principal Deficiency Amount to be made
on such Payment Date), over (b) the Pool Principal Balance as of the end of the
related Due Period; and [(2) with respect to the Maturity Date of the Notes or
any Payment Date upon which the Securities Insurer has exercised its option to
accelerate the Notes under the Indenture, the excess of (a) the Note Principal
Balance (after giving effect to all payments of

                                      -11-

<PAGE>

principal on such Payment Date, but without giving effect to any payments in
respect of this Noteholders' Principal Deficiency Amount to be made on such
Payment Date), over (b) the Available Payment Amount remaining after the payment
of the Noteholders' Interest Payment Amount and the Regular Principal Payment
Amount for such Payment Date].

            Obligor:  Each obligor on a Debt Instrument.

            OC Trigger Increase Event: With respect to any Payment Date, the
occurrence of any of the following: (1) the Six-Month Average Delinquency equals
or exceeds ______%; (2) the Annual Loss Percentage exceeds ___%; or (3)
cumulative Realized Losses as a percentage of the Original Pool Principal
Balance, equal or exceed the following percentages based on the month of
determination after the Closing Date:

                  Month of         Cumulative
                Determination   Realized Losses
                -------------   ---------------
                0 - 12.......        _____%
                13 - 24......        _____%
                25 - 36......        _____%
                37 - 48......        _____%
                49+..........        _____%

            Officer's Certificate: A certificate delivered to the Indenture
Trustee, the Depositor, the Servicer, the Master Servicer, [the Securities
Insurer,] the Transferor or the Issuer signed by the President or a Vice
President or an Assistant Vice President or other officer of the Indenture
Trustee, the Depositor, the Servicer, the Master Servicer, [the Securities
Insurer,] the Issuer or the Transferor, in each case, as required by this
Agreement.

            One-Month LIBOR: With respect to each Accrual Period, as determined
by the Indenture Trustee on the second Business Day preceding the beginning of
such Accrual Period, on the basis of the offered rates of the Reference Bank for
one-month U.S. dollar deposits as such rates appear on the Telerate Screen Page
3750 as of 11:00 a.m. (London time) on such LIBOR Determination Date. As used in
this paragraph, "business day" means a day on which banks are open for dealing
in foreign currency and exchange in London and New York City; and "Reference
Banks" means leading banks selected by the Indenture Trustee and engaged in
transactions in Eurodollar deposits in the international Eurocurrency market (i)
with an established place of business in London, (ii) whose quotations appear on
the Telerate Screen Page 3750 on the LIBOR Determination Date in question, (iii)
which have been designated as such by the Indenture Trustee and (iv) not
controlling, controlled by or under common control with the Issuer, the
Depositor or the Transferor.

            On each LIBOR Determination Date, One-Month LIBOR will be
established by the Indenture Trustee as follows:

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

                                      -12-

<PAGE>

            (b) If on such LIBOR Determination Date fewer than two Reference
      Banks provide such offered quotations, One-Month LIBOR shall be the
      greater of (x) One-Month LIBOR as determined on the previous LIBOR
      Determination Date and (y) the Reserve Interest Rate. The "Reserve
      Interest Rate" shall be the rate per annum that the Indenture Trustee
      determines to be either (i) the arithmetic mean (rounded upwards if
      necessary to the nearest whole multiple of 0.0625%) of the one-month U.S.
      dollar lending rates which New York City banks selected by the Indenture
      Trustee are quoting on the relevant LIBOR Determination Date to the
      principal London offices of leading banks in the London interbank market
      or, in the event that the Indenture Trustee can determine no such
      arithmetic mean, (ii) the lowest one-month U.S. dollar lending rate which
      New York City banks selected by the Indenture Trustee are quoting on such
      LIBOR Determination Date to leading European banks.

            The establishment of One-Month LIBOR on each LIBOR Determination
Date by the Indenture Trustee and the Indenture Trustee's calculation of the
Note Interest Rate for the related Accrual Period shall (in the absence of
manifest error) be final and binding.

            Opinion of Counsel: A written opinion of counsel issued by counsel
(a) who is acceptable to the Master Servicer, the Indenture Trustee, the Rating
Agencies [and the Securities Insurer], and (b) who may be employed or retained
by the Transferor, the Servicer, the Master Servicer, the Depositor, [the
Securities Insurer] or any of their respective Affiliates.

            Original Note Principal Balance: $____________.

            Original Pool Principal Balance: $_____________, which is the Pool
Principal Balance as of the Cut-Off Date.

            Outstanding: As defined in the Indenture.

            [Overcollateralization Amount: With respect to any Payment Date, the
amount equal to the excess of (A) the Pool Principal Balance as of the end of
the preceding Due Period, over (B) the Note Principal Balance of the Notes
(after giving effect to the payments made on such date pursuant to Section
5.01(d) and (e) hereof). As of the Closing Date, the initial
Overcollateralization Amount attributable to such excess shall be equal to
zero.]

            [Overcollateralization Deficiency Amount: With respect to any
Payment Date, the excess, if any, of the Overcollateralization Target Amount
over the Overcollateralization Amount prior to the application of Excess Spread
on such Payment Date.]

            [Overcollateralization Reduction Amount: With respect to any Payment
Date that occurs on or after the Stepdown Date, the lesser of (1) the excess, if
any, of (a) the Overcollateralization Amount (assuming principal payments on the
Notes on such Payment Date are equal to the Regular Principal Payment Amount
without deduction of this Overcollateralization Reduction Amount), over (b) the
Overcollateralization Target Amount, and (2) the Regular Principal Payment
Amount (as determined without the deduction of this Overcollateralization
Reduction Amount therefrom) on such Payment Date. Prior to the occurrence of a
Stepdown Date, the Overcollateralization Reduction Amount shall be zero.]

                                      -13-

<PAGE>

            [Overcollateralization Target Amount: With respect to any Payment
Date, an amount determined as follows:

            (a) with respect to any Payment Date occurring prior to the Stepdown
      Date or on which the Step Down Test is not satisfied, an amount equal to
      ______% of the Original Pool Principal Balance plus the Spread Squeeze
      Amount, if any;

            (b) with respect to any other Payment Date occurring on or after the
      Stepdown Date and on which the Step Down Test is satisfied, an amount
      equal to the greatest of (a) the Stepped Down Percentage of the Pool
      Principal Balance, (b) ______% of the Original Pool Principal Balance; and
      (c) the aggregate Principal Balance of the three largest Home Loans then
      outstanding, plus, in the case of (a), (b) and (c), the Spread Squeeze
      Amount, if any; and

            (c) with respect to any Payment Date occurring on which an OC
      Trigger Increase Event is occurring, notwithstanding any of the preceding
      clauses (1) through (2), an amount equal to 100% of the Pool Principal
      Balance; provided, however, with respect to any Payment Date,
      notwithstanding any of the preceding clauses (1) through (3), the
      Overcollateralization Target Amount shall not exceed the Note Principal
      Balance and may be modified by the Securities Insurer, but shall not be
      reduced below, (1) with respect to any Payment Date occurring prior to the
      Stepdown Date, ______% of the Cut-Off Date Pool Balance or (2) with
      respect to any Payment Date occurring on or after the Stepdown Date, an
      amount equal to the greater of (a) ______% of the Pool Principal Balance
      as of the end of the related Due Period, (b) ______% of the Cut-Off Date
      Pool Principal Balance or (c) an amount equal to the aggregate Principal
      Balance of the ________ largest Loans then outstanding.

            Owner Trust Agreement: The Owner Trust Agreement, dated as of
________, 200__, among the Depositor, __________, the Owner Trustee and
__________________________, a national banking association.

            Owner Trustee: ________________________, as owner trustee under the
Owner Trust Agreement, and any successor owner trustee under the Owner Trust
Agreement.

            Ownership Interest: As to any Note, any ownership or security
interest in such Note, including any interest in such Note as the holder thereof
and any other interest therein, whether direct or indirect, legal or beneficial,
as owner or as pledgee.

            Payment Date: The ______ day of any month or if such ______ day is
not a Business Day, the first Business Day immediately following such day,
commencing in ________ 200__.

            Payment Statement: As defined in Section 6.01 hereof.

            Percentage Interest: As defined in the Owner Trust Agreement.

                                      -14-

<PAGE>

            Permitted Investments: Each of the following:

            (a) direct obligations of, and obligations fully guaranteed by, the
      United States of America, FHLMC, FNMA, the Federal Home Loan Banks 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;

            (b) (i) demand and time deposits in, certificates of deposit of,
      bankers acceptances issued by, or federal funds sold by, any depository
      institution or trust company (including the Indenture Trustee or its agent
      acting in their respective commercial capacities) incorporated under the
      laws of the United States of America or any state thereof and subject to
      supervision and examination by federal or state authorities, so long as,
      at the time of such investment or contractual commitment providing for
      such investment, such depository institution or trust company or its
      ultimate parent has a short-term unsecured debt rating in _____________
      highest available rating categories of ___________ and the ___________
      available rating category of Moody's and provided that each such
      investment has an original maturity of no more than 365 days, and (ii) any
      other demand or time deposit or deposit which is fully insured by the
      FDIC;

            (c) repurchase obligations with a term not to exceed 30 days with
      respect to any security described in clause (a) above and entered into
      with a depository institution or trust company (acting as principal) rated
      "A" or higher by S&P and rated "A2" or higher by Moody's; provided,
      however, that collateral transferred pursuant to such repurchase
      obligation must be of the type described in clause (a) above and must (i)
      be valued daily at current market price plus accrued interest, (ii)
      pursuant to such valuation, be equal, at all times, to at least ______% of
      the cash transferred by the Indenture Trustee in exchange for such
      collateral, and (iii) be delivered to the Indenture Trustee, or if the
      Indenture Trustee is supplying the collateral, an agent for the Indenture
      Trustee, in such a manner as to accomplish perfection of a security
      interest in the collateral by possession of certificated securities;

            (d) securities bearing interest or sold at a discount issued by any
      corporation incorporated under the laws of the United States of America or
      any state thereof which has a short-term unsecured debt rating in the
      highest available rating category of each of the Rating Agencies at the
      time of such investment;

            (e) commercial paper having an original maturity of less than 365
      days and issued by an institution having a short-term unsecured debt
      rating in the highest available rating category of each of the Rating
      Agencies at the time of such investment;

            (f) a guaranteed investment contract approved by each of the Rating
      Agencies [and the Securities Insurer] and issued by an insurance company
      or other corporation having a short-term unsecured debt rating in the
      highest available rating category of each of the Rating Agencies at the
      time of such investment;

                                      -15-

<PAGE>

            (g) money market funds having one of the two highest available
      rating categories of S&P and the highest available rating category of
      Moody's at the time of such investment, which invests only in other
      Permitted Investments, including any such money market funds for which the
      Master Servicer or the Indenture Trustee or any affiliate of the Master
      Servicer or the Indenture Trustee acts as the investment manager or
      advisor; provided that any such money market funds which provide for
      demand withdrawals shall be conclusively deemed to satisfy any maturity
      requirements for Permitted Investments set forth in this Agreement; and

            (h) any investment approved in writing by the Securities Insurer and
      for which the Ratings Confirmation have been obtained with respect to such
      investment.

            The Indenture Trustee may purchase from or sell to itself or an
affiliate, as principal or agent, the Permitted Investments listed above. All
Permitted Investments in a trust account under this Agreement shall be made in
the name of the Indenture Trustee for the benefit of the Securityholders and the
Securities Insurer; provided, that the Master Servicer shall be entitled to all
investment earnings from the Note Payment Account and the Collection Account as
part of its Master Servicer Compensation hereunder.

            Person: Any individual, corporation, partnership, joint venture,
limited liability company, association, joint-stock company, trust, estate,
national banking association, unincorporated organization or government or any
agency or political subdivision thereof.

            Pool Principal Balance: With respect to any date of determination,
the aggregate Principal Balances of the Home Loans as of the end of the
preceding Due Period; provided, however, that the Pool Principal Balance on any
Payment Date on which the Termination Price is to be paid to Noteholders will be
deemed to have been equal to zero as of such date.

            Preference Amount: Any amount previously distributed to the holder
of an Insured Security that is recoverable and sought to be recovered as a
voidable preference by a trustee in bankruptcy pursuant to the United States
Bankruptcy Code (11 U.S.C.), as amended from time to time, in accordance with a
final, non-appealable order of a court having jurisdiction.

            [Premium Letter: The letter agreement dated ___________, 200__
between the Securities Insurer and _____________ relating to the premiums due in
respect of the Guaranty Policy.]

            Principal Balance: With respect to any Home Loan or related
Foreclosure Property, (i) at the Cut-Off Date, the outstanding unpaid principal
balance of the Home Loan as of the Cut-Off Date and (ii) with respect to any
date of determination, the outstanding unpaid principal balance of the Home Loan
as of the last day of the preceding Due Period (after giving effect to all
payments received thereon or Monthly Advances in respect of principal made with
respect thereto and the allocation of any Net Loan Losses with respect thereto
which relates to such Due Period), without giving effect to amounts received in
respect of such Home Loan or related Foreclosure Property after such Due Period;
provided, however, that any Liquidated Home Loan shall have a Principal Balance
of zero and with respect to the valuation of the Issuer's assets such Liquidated
Home Loan shall not accrue interest thereon.

                                      -16-

<PAGE>

            Principal Prepayment: With respect to any Home Loan and any Due
Period, any principal amount received on a Home Loan in excess of the principal
of the Monthly Payment due in such Due Period and applied by the Servicer during
such Due Period in reduction of the Principal Balance of the Home Loan.

            Property Insurance Proceeds: With respect to any Mortgaged Property,
all amounts collected in respect of any related insurance policy that insures
such Mortgaged Property or the related Obligor and not required to be applied to
the restoration of any such Mortgaged Property or paid to the related Obligor
(but excluding any Insured Payments).

            Prospectus: The Depositor's final Prospectus dated __________, 200__
as supplemented by the Prospectus Supplement.

            Prospectus Supplement: The Prospectus Supplement dated ___________,
200__ prepared by the Depositor and Transferor in connection with the issuance
and sale of the Notes.

            Purchase Price: With respect to a Defective Home Loan, the Principal
Balance thereof as of the date of purchase, plus all accrued and unpaid interest
on such Defective Home Loan from the Closing Date to but not including the date
of repurchase computed at the applicable Home Loan Interest Rate, plus the
amount of any unreimbursed Servicing Advances and Monthly Advances with respect
to such Defective Home Loan (after deducting therefrom any amounts received in
respect of such repurchased Defective Home Loan and being held in the Collection
Account for future distribution to the extent such amounts represent recoveries
of principal not yet applied to reduce the related Principal Balance or interest
(net of the Servicing Fee, Master Servicer Fee, Indenture Trustee Fee [and
Guaranty Insurance Premium] for such Defective Home Loan) for the period from
and after the date of repurchase).

            Qualified Substitute Home Loan: A home loan or home loans
substituted for a Deleted Home Loan pursuant to Section 3.05 hereof, which
satisfies the following: (i) in the case of a fixed rate Home Loan, has or have
a fixed interest rate (a) no lower than the Home Loan Interest Rate for the
Deleted Home Loan, and (b) not more than 2.0 percentage points greater than the
Home Loan Interest Rate for the Deleted Home Loan; (ii) in the case of an
adjustable rate Home Loan has or have an adjustable rate and (a) has a current
interest rate no lower than the Home Loan Interest Rate for the Deleted Home
Loan, (b) has a gross margin not more than percentage points different than the
Home Loan Interest Rate for the Deleted Home Loan, (c) has a lifetime interest
rate cap not more than percentage points lower than the Home Loan Interest Rate
for the Deleted Home Loan, (d) has a lifetime interest rate floor not more than
percentage points lower than the Home Loan Interest Rate for the Deleted Home
Loan, and (e) pays interest based on the same index as the Deleted Home Loan;
(iii) matures or mature not more than one year later than, and not more than one
year earlier, than the maturity date of Deleted Home Loan, has a maturity date
no later than ___________, 20__ and an original term to maturity of less than or
equal to 30 years; (iv) has or have a principal balance or principal balances
(after application of all payments received on or prior to the date of
substitution) equal to or less than the Principal Balance or Balances of the
Deleted Home Loan or Loans as of such date; (v) has or have a borrower or
borrowers with a debt-to-income ratio no higher than the debt-to-income ratio of
the Obligor with respect to the Deleted Loan; (vi) complies or comply as of the
date of substitution with each representation and warranty set forth in Section
3.04 hereof

                                      -17-

<PAGE>

and is or are not more than 89 days delinquent as of the date of substitution
for such Deleted Home Loan or Loans; (vii) has or have a lien priority no lower
than the Deleted Loan; and [(viii) is otherwise satisfactory to the Securities
Insurer]. For purposes of determining whether multiple mortgage loans proposed
to be substituted for one or more Deleted Home Loans pursuant to Section 3.05
hereof are in fact "Qualified Substitute Home Loans" as provided above, the
criteria specified in clauses (i), (ii) and (iii) above may be considered on an
aggregate or weighted average basis, rather than on a loan-by-loan basis (i.e.,
so long as the weighted average Home Loan Interest Rate of any loans proposed to
be substituted is not less than the Home Loan Interest Rate for the designated
Deleted Home Loan or Loans and not more than two percentage points greater than
the Home Loan Interest Rate for the designated Deleted Home Loan or Loans, the
requirements of clause (i) above would be deemed satisfied).

            Rating Agencies: ___________ and________. If no such organization or
successor is any longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization or other comparable person designated
by the Master Servicer [and approved by the Securities Insurer], notice of which
designation shall have been given to the Indenture Trustee[, the Securities
Insurer], the Servicer and the Issuer.

            Ratings: The ratings initially assigned to the Notes by the Rating
Agencies, as evidenced by letters from the Rating Agencies.

            Ratings Confirmation: With respect to a contemplated action to be
undertaken or performed pursuant to this Agreement, a written confirmation from
each Rating Agency to the effect that such action will not result in or cause
the downgrading, withdrawal or qualification of the rating that would otherwise
be assigned by such Rating Agency to the Notes [without the benefit of the
Guaranty Policy provided by the Securities Insurer].

            Realized Losses: As of any Payment Date, the sum of (1) with respect
to all Home Loans that have become Liquidated Home Loans during the related Due
Period, the difference between (a) the aggregate Principal Balances of such
Liquidated Home Loans and accrued and unpaid interest thereon, minus (b) the
aggregate Net Liquidation Proceeds collected during the related Due Period, and
(2) with respect to all Defaulted Home Loans, the aggregate Net Loan Losses that
occurred during the related Due Period.

            Record Date: With respect to each Payment Date, the close of
business on the last Business Day of the month immediately preceding the month
in which such Payment Date occurs.

            Regular Payment Amount: With respect to any Payment Date, the lesser
of (a) the Available Payment Amount and (b) the sum of (i) the Noteholders'
Interest Payment Amount and (ii) the Regular Principal Payment Amount.

            Regular Principal Payment Amount: On each Payment Date, an amount
equal to the lesser of:

            (a) the Note Principal Balance of the Notes immediately prior to
      such Payment Date; and

                                      -18-

<PAGE>

            (b) the sum of (i) each scheduled payment of principal collected by
      the Servicer or advanced by the Master Servicer in respect of the related
      Due Period, (ii) all Principal Prepayments applied by the Servicer during
      such related Due Period, (iii) the principal portion of all Net
      Liquidation Proceeds, Property Insurance Proceeds and Released Mortgaged
      Property Proceeds received during the related Due Period, (iv) that
      portion of the Purchase Price of any repurchased Home Loan which
      represents principal received prior to the related Determination Date, (v)
      the principal portion of any Substitution Adjustments required to be
      deposited in the Collection Account as of the related Determination Date
      and (vi) on the Payment Date on which the Issuer is to be terminated
      pursuant to Section 11.02 hereof, the Termination Price (net of any
      accrued and unpaid interest, Trust Fees and Expenses due and unpaid on
      such date and Servicing Advance Reimbursement Amounts and Monthly Advance
      Reimbursement Amounts);

provided, however, that if such Payment Date is on or after a Stepdown Date,
then with respect to the payment of principal to the Noteholders the foregoing
amount will be reduced (but not less than zero) by the Overcollateralization
Reduction Amount, if any, for such Payment Date.

            Released Mortgaged Property Proceeds: With respect to any Home Loan,
proceeds received by the Servicer in connection with (i) a taking of an entire
Mortgaged Property by exercise of the power of eminent domain or condemnation or
(ii) any release of part of the Mortgaged Property from the lien of the related
Mortgage, whether by partial condemnation, sale or otherwise; which proceeds in
either case are not released to the Obligor in accordance with applicable law,
Accepted Servicing Procedures and this Agreement.

            Relief Act Shortfall: Any shortfall in an Obligor's Monthly Payment
caused by the application of the Servicemembers' Civil Relief Act, as amended.

            Residual Interest: The meaning assigned thereto in the Owner Trust
Agreement.

            Residual Interest Certificate: The meaning assigned thereto in the
Owner Trust Agreement.

            Responsible Officer: When used with respect to the Indenture
Trustee, any officer within the Corporate Trust Office of the Indenture Trustee,
including any Vice President, Assistant Vice President, Secretary, Assistant
Secretary or any other officer of the Indenture Trustee, customarily performing
functions similar to those performed by any of the above designated officers 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. When used with respect to the Issuer, any officer in the
Corporate Trust Administration Department of the Owner Trustee with direct
responsibility for the administration of the Owner Trust Agreement and this
Agreement on behalf of the Issuer. When used with respect to the Depositor, the
Servicer, the Master Servicer, the Transferor, the Servicer or any Custodian,
the President or any Vice President, Assistant Vice President, or any Secretary
or Assistant Secretary.

            Securities: The Notes or Residual Interest Certificates.

                                      -19-

<PAGE>

            [Securities Insurer: ________________, as issuer of the Guaranty
Policy, and its successors and assigns.]

            [Securities Insurer Default: The existence and continuation of any
of the following:

            (a) The Securities Insurer fails to make a payment required under
      the Guaranty Policy in accordance with its terms;

            (b) The Securities Insurer (1) files any petition or commences any
      case or proceeding under any provision or chapter of the United States
      Bankruptcy Code or any other similar federal or state law relating to
      insolvency, bankruptcy, rehabilitation, liquidation or reorganization, (2)
      makes a general assignment for the benefit of its creditors, or (3) has an
      order for relief entered against it under the United States Bankruptcy
      Code or any other similar federal or state law relating to insolvency,
      bankruptcy, rehabilitation, liquidation or reorganization which is final
      and nonappealable; or

            (c) A court of competent jurisdiction, the New York Department of
      Insurance or other competent regulatory authority enters a final and
      nonappealable order, judgment or decree (1) appointing a custodian,
      trustee, agent or receiver for the Securities Insurer or for all or any
      material portion of its property or (2) authorizing the taking of
      possession by a custodian, trustee, agent or receiver of the Securities
      Insurer (or the taking of possession of all or any material portion of the
      property of the Securities Insurer).]

            [Securities Insurer Reimbursement Amount: At any time, an amount
owed to the Securities Insurer for any unreimbursed Insured Payments made under
the Guaranty Policy and any other amounts then owing to the Securities Insurer
under the Insurance Agreement, which have not previously been reimbursed, in
each case together with interest thereon at the rate specified in the Insurance
Agreement.]

            Securityholder: Any Noteholder or Certificateholder.

            Series or Series 200__-__: _____________ Home Loan Asset Backed
Notes, Series 200__-__.

            [Servicer: One or more servicers that enter into a Servicing
Agreement with the Master Servicer, which initially will
be_______________________, a _____________________ ________________________
_______________ for an interim period, and thereafter will be
___________________, a __________ corporation.]

            Servicer's Home Loan Files: In respect of each Home Loan, all
documents customarily included in the Servicer's loan file for the related type
of Home Loan as specifically set forth in Section 4.4 of the Servicing
Agreement.

            Servicer's Monthly Remittance Report: A report prepared and computed
by the Servicer in substantially the form of Exhibit B attached hereto.

                                      -20-

<PAGE>

            Servicing Advance Reimbursement Amount: With respect to any date of
determination and with respect to the receipt of proceeds from or the
liquidation of a Home Loan for which any Servicing Advances have been made, the
amount of any such Servicing Advances that have not been reimbursed as of such
date, including Nonrecoverable Servicing Advances.

            Servicing Advances: All reasonable, customary and necessary "out of
pocket" costs and expenses advanced or paid by the Servicer with respect to the
Home Loans in accordance with the performance by the Servicer of its servicing
obligations under Section 6.6 of the Servicing Agreement, including, but not
limited to, the costs and expenses for (i) the preservation, restoration and
protection of any related Mortgaged Property, including without limitation
advances in respect of real estate taxes and assessments, (ii) any collection,
enforcement or judicial proceedings, including without limitation foreclosures,
collections and liquidations, (iii) the conservation, management and sale or
other disposition of a Foreclosure Property, and (iv) the satisfaction,
cancellation, release or discharge of any Home Loan or any related Mortgage in
accordance with this Agreement; provided, however, that such Servicing Advances
(plus accrued interest thereon from the date of such advance to the date of
reimbursement and at the rate equal to the Servicer's cost of funds) are
reimbursable to the Servicer out of the expected late collections, Liquidation
Proceeds, Property Insurance Proceeds or Released Mortgaged Property Proceeds
from the related Home Loan, Obligor or Mortgaged Property.

            Servicing Agreement: The servicing agreement, incorporating by
reference the Agreement Regarding Standard Servicing Terms, each dated as of the
date hereof each between _________ owner of the Home Loans and as the Master
Servicer and the Servicer, a form of which is attached hereto as Exhibit E.

            Servicing Compensation: The Servicing Fee and other amounts to which
the Servicer is entitled pursuant to this Agreement and the Servicing Agreement.
On any Payment Date Servicing Compensation shall include any Servicing Fee
Recovery Amounts due and unpaid, to the extent of Master Servicer Compensation
available after allocations under Section 4.01(K) hereof on such Payment Date.

            Servicing Fee: As to each Home Loan (including any Home Loan that
has been foreclosed and has become a Foreclosure Property, but excluding any
Liquidated Home Loan), the fee payable monthly to the Servicer on each Payment
Date, which shall equal the product of (a) one-twelfth (1/12) of ____% (____
basis points) and (b) the Principal Balance of such Home Loan as of the
beginning of the immediately preceding Due Period (or as of the Cut-Off Date
with respect to the first Due Period).

            Servicing Fee Recovery Amount: The amount of any Servicing Fee used
to pay Compensating Interest for which the Servicer has not received
reimbursement.

            Servicing Officer: Any officer of the Servicer or Master Servicer
involved in, or responsible for, the administration and servicing of the Home
Loans whose name and specimen signature appears on a list of servicing officers
annexed to an Officer's Certificate furnished by the Servicer or the Master
Servicer, respectively, to [the Securities Insurer,] the Master Servicer

                                      -21-

<PAGE>

and the Indenture Trustee, on behalf of the Securityholders [and the Securities
Insurer], as such list may from time to time be amended.

            Six-Month Average Delinquency: With respect to any Payment Date, the
average for such Payment Date and the five preceding Payment Dates of the
respective ratios, expressed as a percentage, equal to (x) the aggregate
Principal Balances of all Home Loans that are 90 days or more Delinquent
(excluding any Liquidated Home Loans but including Foreclosed Loans and Home
Loans in foreclosure proceedings) as of the end of each of the related Due
Periods, divided by (y) the respective Pool Principal Balance as of the end of
the applicable Due Period.

            Spread Squeeze Amount: For any Payment Date on or after the Payment
Date in _______ 200__, an amount (not less than zero) equal to the product,
obtained by multiplying (i) _______, (ii) the excess, if any, of ____% (
___________________________) or ____% (with respect to any Payment Date after
the 24th Payment Date) over the Spread Squeeze Percentage for such Payment Date
and (iii) the Original Pool Principal Balance.

            Spread Squeeze Percentage: With respect to any Payment Date, the
percentage equivalent of a fraction, the numerator of which is the product of
_____ and the excess of the Excess Spread for such Payment Date [over the
Securities Insurer Reimbursement Amount] for such Payment Date, and the
denominator of which is the Pool Principal Balance for such Payment Date.

            Stepdown Date: The first Payment Date occurring on the later of: (a)
the ___________ month after the month in which the Closing Date occurs; or (b)
the Payment Date on which the Pool Principal Balance as of the end of the
related Due Period has been reduced to an amount that is less than or equal to
___% of the Original Pool Principal Balance.

            Step Down Test: As of any Payment Date, each of the following
conditions:

            (a) the most recent six month rolling 90-day and over average
      delinquency rate (including foreclosures and REOs) is equal to or less
      than ___% of the Pool Principal Balance.

            (b) the cumulative losses through the given month is equal to or
      less than the following percent of Principal Pool Original Balance:

                         Cumulative Loss
                       % of Original Pool
            Month           Balance
            --------   ------------------
            24 .....         _____%
            36 .....         _____%
            48 .....         _____%
            60+ ....         _____%
            and ....         _____%

            (c) the aggregate loss during the 12 months preceding a Payment
      Date, as a percentage of the Pool Principal Balance as of the first day of
      such 12 month period must be less than ____ basis points (_____%).

                                      -22-

<PAGE>

            Stepped Down Percentage: For any Payment Date on or after the Step
Down Date on which the Step Down Test is satisfied, a percentage equal to
_____%.

            Substitution Adjustment: As to any date on which a substitution
occurs pursuant to Section 3.05 hereof, the amount, if any, by which (a) the sum
of the aggregate principal balance (after application of principal payments
received on or before the date of substitution) of any Qualified Substitute Home
Loans as of the date of substitution, plus any accrued and unpaid interest
thereon to the date of substitution, is less than (b) the sum of the Principal
Balance, together with accrued and unpaid interest thereon to the date of
substitution, of the related Deleted Home Loans.

            Tangible Net Worth: As defined in Section 10.01(a)(x) hereof.

            Termination Price: As of any date of determination, an amount
without duplication equal to the greater of (A) the Note Redemption Amount and
(B) the sum of (i) the Principal Balance of each Home Loan as of the applicable
Monthly Cut-Off Date; (ii) all unpaid interest accrued on the Principal Balance
of each such Home Loan at the related Home Loan Interest Rate to such Monthly
Cut-Off Date; (iii) the aggregate fair market value of each Foreclosure Property
on such Monthly Cut-Off Date, as determined by an appraiser acceptable to [the
Indenture Trustee as of a date not more than 30 days prior to such Monthly
Cut-Off Date; and (iv) any due but unpaid Securities Insurer Reimbursement
Amount].

            Transaction Documents: This Agreement, the Servicing Agreement, the
Home Loan Purchase Agreement, the Owner Trust Agreement, the Custodial
Agreement, the Administration Agreement, the Indemnification and Contribution
Agreement, [the Insurance and Indemnity Agreement, the Premium Letter and the
Indemnification Agreement].

            Transferor: __________, in its capacity as the transferor hereunder.

            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 Issuer.

            Trust Account Property: The Trust Accounts, all amounts and
investments held from time to time in the Trust Accounts and all proceeds of the
foregoing.

            Trust Accounts: The Note Payment Account, the Certificate
Distribution Account, the Policy Payment Account or the Collection Account.

            Trust Estate: The assets subject to this Agreement, the Owner Trust
Agreement and the Indenture and assigned and conveyed to the Trust, which assets
consist of: (i) such Home Loans as from time to time are subject to this
Agreement as listed in the Home Loan Schedule, as the same may be amended or
supplemented from time to time including by the removal of Deleted Home Loans
and the addition of Qualified Substitute Home Loans, together with the Home Loan
File relating thereto and all proceeds thereof, (ii) the Mortgages and

                                      -23-

<PAGE>

security interests in Mortgaged Properties, (iii) all payments in respect of
interest due with respect to the Home Loans on or after the Cut-Off Date and all
payments in respect of principal received after the Cut-Off Date, (iv) such
assets as from time to time are identified as Foreclosure Property, (v) such
assets and funds as are from time to time are deposited in the Collection
Account, the Note Payment Account and the Certificate Distribution Account,
including amounts on deposit in such accounts which are invested in Permitted
Investments, (vi) the Issuer's rights under all insurance policies with respect
to the Home Loans and any Property Insurance Proceeds, (vii) Net Liquidation
Proceeds and Released Mortgaged Property Proceeds, (viii) all right, title and
interest of the Depositor in and to the obligations of the Transferor under the
Home Loan Purchase Agreement pursuant to which the Depositor acquired the Home
Loans from the Transferor, and (ix) all right, title and interest of the
Depositor in and to the Servicing Agreement and all proceeds of any of the
foregoing.

            Trust Fees and Expenses: As of each Payment Date, an amount equal to
the Master Servicer Compensation (which includes the Master Servicer Fee), the
Servicing Compensation (which includes the Servicing Fee), [Guaranty Insurance
Premium] and the Indenture Trustee Fee and reimbursement of the reasonable
expenses of the Indenture Trustee.

            UCC: The Uniform Commercial Code as in effect in the State of New
York.

            Section 1.02 Other Definitional Provisions. (a) Capitalized terms
used herein and not otherwise defined herein have the meanings assigned to them
in the Indenture and the Owner Trust Agreement.

            (b) All terms defined in this Agreement shall have the defined
meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein.

            (c) As used in this Agreement and in any certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Agreement or in any such certificate or other document, and
accounting terms partly defined in this Agreement or in any such certificate or
other document to the extent not defined, shall have the respective meanings
given to them under GAAP. To the extent that the definitions of accounting terms
in this Agreement or in any such certificate or other document are inconsistent
with the meanings of such terms under GAAP, the definitions contained in this
Agreement or in any such certificate or other document shall control.

            (d) The words "hereof," "herein," "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement; Article, Section, Schedule
and Exhibit references contained in this Agreement are references to Articles,
Sections, Schedules and Exhibits in or to this Agreement unless otherwise
specified; and the term "including" shall mean "including without limitation."

            (e) The definitions contained in this Agreement are applicable to
the singular as well as the plural forms of such terms and to the masculine as
well as to the feminine genders of such terms.

                                      -24-

<PAGE>

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

                                   ARTICLE II

                          CONVEYANCE OF THE HOME LOANS

            Section 2.01 Conveyance of the Home Loans. (a) As of the Closing
Date, in consideration of the Issuer's delivery of the Notes and the Residual
Interest Certificates to the Depositor or its designee, upon the order of the
Depositor, the Depositor, as of the Closing Date and concurrently with the
execution and delivery hereof, does hereby sell, transfer, assign, set over and
otherwise convey to the Issuer, without recourse, but subject to the other terms
and provisions of this Agreement, all of the right, title and interest of the
Depositor in and to the Trust Estate. The foregoing sale, transfer, assignment,
set over and conveyance does not, and is not intended to, result in a creation
or an assumption by the Issuer of any obligation of the Depositor, the
Transferor or any other person in connection with the Trust Estate or under any
agreement or instrument relating thereto except as specifically set forth
herein.

            (b) As of the Closing Date, the Issuer acknowledges the conveyance
to it of the Trust Estate, including all right, title and interest of the
Depositor in and to the Trust Estate, receipt of which is hereby acknowledged by
the Issuer. Concurrently with such delivery and in exchange therefor, the Issuer
has pledged the Trust Estate to the Indenture Trustee and executed the Notes,
and the Indenture Trustee, pursuant to the written instructions of the Issuer,
has caused the Notes to be authenticated and delivered to the Depositor or its
designee. In addition, concurrently with such delivery and in exchange therefor,
the Owner Trustee, pursuant to the instructions of the Depositor, has executed
(not in its individual capacity, but solely as Owner Trustee on behalf of the
Issuer) and caused the Residual Interest Certificates to be authenticated and
delivered to the Depositor or its designee, upon the order of the Depositor.

            Section 2.02 Ownership and Possession of Home Loan Files. Upon the
issuance of the Notes, with respect to the Home Loans, the ownership of each
Debt Instrument, the related Mortgage and the contents of the related Servicer's
Home Loan File and the Indenture Trustee's Home Loan File shall be vested in the
Trust and pledged to the Indenture Trustee for the benefit of the Noteholders,
although possession of the Servicer's Home Loan Files (other than items required
to be maintained in the Indenture Trustee's Home Loan Files) on behalf of and
for the benefit of the Securityholders shall remain with the Servicer, and the
Custodian shall take possession of the Indenture Trustee's Home Loan Files as
contemplated in Section 2.05 hereof.

            Section 2.03 Books and Records. The sale of each Home Loan shall be
reflected on the balance sheets and other financial statements of the Depositor
or the Transferor, as the case may be, as a sale of assets by the Depositor or
the Transferor, as the case may be, under GAAP. Each of the Servicer and the
Custodian shall be responsible for maintaining, and shall maintain, a complete
set of books and records for each Home Loan which shall be clearly

                                      -25-

<PAGE>

marked to reflect the ownership of each Home Loan by the Owner Trustee and
pledged to the Indenture Trustee for the benefit of the Noteholders.

            It is the intention of the parties hereto that the transfers and
assignments contemplated by this Agreement shall constitute a sale of the Home
Loans and the other property specified in Section 2.01(a) hereof from the
Depositor to the Trust. If the assignment and transfer of the Home Loans and the
other property specified in Section 2.01(a) hereof to the Trust pursuant to this
Agreement or the conveyance of the Home Loans or any of such other property to
the Trust is held or deemed not to be a sale or is held or deemed to be a pledge
of security for a loan, the Depositor intends that the rights and obligations of
the parties shall be established pursuant to the terms of this Agreement and
that in such event, (i) the Depositor shall be deemed to have granted and does
hereby grant to the Trust a first priority security interest in the entire
right, title and interest of the Depositor in and to the Home Loans and all
other property conveyed to the Trust pursuant to Section 2.01 hereof and all
proceeds thereof and (ii) this Agreement shall constitute a security agreement
under applicable law. Within ten (10) days of the Closing Date, the Depositor
shall cause to be filed UCC-1 financing statements naming the Trust as a
"secured party" and describing the Home Loans being sold by the Depositor to the
Trust with the office of the Secretary of State of the state in which the
Depositor is located.

            Section 2.04 Delivery of Home Loan Documents. (a) With respect to
each Home Loan, the Transferor and/or the Depositor, as applicable, shall, on
the Closing Date, deliver or caused to be delivered to the Custodian, as the
designated agent of the Indenture Trustee, each of the following documents
(collectively, the "Indenture Trustee's Home Loan Files"):

            (i) The original Debt Instrument, endorsed by the Transferor in
      blank or in the following form: "Pay to the order of
      ____________________________ as Trustee without recourse" with all prior
      and intervening endorsements showing a complete chain or endorsement from
      origination of the Home Loan to the Transferor, or a lost note affidavit
      acceptable to the Indenture Trustee (not to exceed ___ Home Loans);

            (ii) The original Mortgage with evidence of recording thereon (or,
      if the original Mortgage has not been returned from the applicable public
      recording office or is not otherwise available, a copy of the Mortgage
      certified by a Responsible Officer of the Transferor or by the closing
      attorney or by an officer of the title insurer or agent of the title
      insurer which issued the related title insurance policy, if any, or
      commitment therefor to be a true and complete copy of the original
      Mortgage submitted for recording) and, if the Mortgage was executed
      pursuant to a power of attorney, the original power of attorney with
      evidence of recording thereon (or, if the original power of attorney has
      not been returned from the applicable public recording office or is not
      otherwise available, a copy of the power of attorney certified by a
      Responsible Officer of the Transferor or by the closing attorney or by an
      officer of the title insurer or agent of the title insurer which issued
      the related title insurance policy, if any, or commitment, thereof, to be
      a true and complete copy of the original power of attorney submitted for
      recording);

                                      -26-

<PAGE>

            (iii) The original executed Assignment of Mortgage, in blank or in
      recordable form to "____________________, as Trustee." The Assignment of
      Mortgage may be a blanket assignment, to the extent such assignment is
      effective under applicable law, for Mortgages covering Mortgaged
      Properties situated within the same county. If the Assignment of Mortgage
      is in blanket form, an Assignment of Mortgage need not be included in the
      individual Indenture Trustee's Home Loan File;

            (iv) All original intervening assignments of mortgage, with evidence
      of recording thereon, showing a complete chain of assignment from
      origination of the Home Loan to the Transferor (or, if any such assignment
      of mortgage has not been returned from the applicable public recording
      office or is not otherwise available, a copy of such assignment of
      mortgage certified by a Responsible Officer of the Transferor or by the
      closing attorney or by an officer of the title insurer or agent of the
      title insurer which issued the related title insurance policy, if any, or
      commitment therefor to be a true and complete copy of the original
      assignment submitted for recording); provided that the chain of
      intervening recorded assignments shall not be required to match the chain
      of intervening endorsements of the Debt Instrument so long as the chain of
      intervening recorded assignments, if applicable, evidences one or more
      assignments of the Mortgage from the original mortgagee ultimately to the
      person who has executed the Assignment of Mortgage;

            (v) The original, or a copy certified by the Transferor to be a true
      and correct copy of the original, of each assumption, modification,
      written assurance or substitute agreement, if any; and

            (vi) [The original policy of title insurance, including riders and
      endorsements thereto, as if the policy has not yet been issued, a written
      commitment or interim binder or preliminary report of title issued by the
      title insurance or escrow company.]

            (b) With respect to each Home Loan, the Transferor and the Depositor
shall, on the Closing Date, deliver or caused to be delivered to the Servicer,
as the designated agent of the Indenture Trustee, the Servicer's Home Loan
Files.

            (c) The Indenture Trustee shall cause the Custodian to take and
maintain continuous physical possession of the Indenture Trustee's Home Loan
Files in the State of _____________ and, in connection therewith, shall act
solely as agent for the Noteholders in accordance with the terms hereof and not
as agent for the Transferor or any other party.

            (d) Within 60 days after the Closing Date, the Transferor, at its
own expense, shall record each Assignment of Mortgage (which may be a blanket
assignment if permitted by applicable law) in the appropriate real property or
other records; provided, however, that the Transferor need not record any such
Assignment of Mortgage which relates to a Home Loan in any jurisdiction under
the laws of which, as evidenced by an Opinion of Counsel delivered by the
Transferor (at the Transferor's expense) to the Indenture Trustee, the
Securities Insurer and the Rating Agencies, that recordation of such Assignment
of Mortgage is not necessary to protect the Indenture Trustee's and the
Noteholder's interest in the related Home Loan. With respect to any Assignment
of Mortgage as to which the related recording information is unavailable within

                                      -27-

<PAGE>

60 days following the Closing Date, such Assignment of Mortgage shall be
submitted for recording within 30 days after receipt of such information but in
no event later than 360 days after the Closing Date. The Indenture Trustee shall
be required to retain a copy of each Assignment of Mortgage submitted for
recording. In the event that any such Assignment of Mortgage is lost or returned
unrecorded because of a defect therein, the Transferor shall promptly prepare a
substitute Assignment of Mortgage or cure such defect, as the case may be, and
thereafter the Transferor shall be required to submit each such Assignment of
Mortgage for recording.

            (e) All recordings required pursuant to this Section 2.04 shall be
accomplished by and at the expense of the Transferor.

            Section 2.05 Acceptance by the Indenture Trustee of the Home Loans;
Certain Substitutions; Certification by the Custodian. (a) The Indenture Trustee
agrees to cause the Custodian to execute and deliver on the Closing Date an
acknowledgment of receipt of the Indenture Trustee's Home Loan File for each
Home Loan. The Indenture Trustee will cause the Custodian to hold such documents
and any amendments, replacements or supplements thereto, as well as any other
assets included in the Trust Estate and delivered to the Custodian, in trust,
upon and subject to the conditions set forth herein. The Indenture Trustee
agrees to cause the Custodian to review each Indenture Trustee's Home Loan File
within 45 days after the Closing Date (or, with respect to any Qualified
Substitute Home Loan, within 45 days after the conveyance of the related Home
Loan to the Trust) and to cause the Custodian to deliver to the Transferor, the
Depositor, the Servicer, the Indenture Trustee, [and the Securities Insurer] a
certification (the "Custodian's Initial Certification") to the effect that, as
to each Home Loan listed in the Home Loan Schedule (other than any Home Loan
paid in full or any Home Loan specifically identified as an exception to such
certification), (i) all documents required to be delivered to the Indenture
Trustee pursuant to this Agreement are in its possession or in the possession of
the Custodian on its behalf (other than as expressly permitted by Section 2.04
hereof), (ii) such documents have been reviewed by the Custodian and have not
been mutilated or damaged and appear regular on their face (handwritten
additions, changes or corrections shall not constitute irregularities if
initialed by the Obligor) and relate to such Home Loan, and (iii) based on the
examination of the Custodian on behalf of the Indenture Trustee, and only as to
the foregoing documents, the information set forth on the Home Loan Schedule
accurately reflects the information set forth in the Indenture Trustee's Home
Loan File. Neither the Indenture Trustee nor the Custodian shall be under any
duty or obligation to make an independent examination of any documents contained
in each Indenture Trustee's Home Loan File beyond the review listed herein.
Neither the Custodian nor the Indenture Trustee makes any representations as to:
(i) the validity, legality, sufficiency, enforceability, execution by a
responsible officer or genuineness of any of the documents contained in each
Indenture Trustee's Home Loan File of any of the Home Loans identified on the
Home Loan Schedule relating to such Home Loans, or (ii) the collectibility,
insurability, effectiveness or suitability of any such Home Loan, or (iii) the
existence of any document specified in clause (v) of Section 1(b) of the
Custodial Agreement.

            (b) The Servicer's Home Loan Files shall be held in the custody of
the Servicer for the benefit of, and as agent for, the Noteholders and the
Indenture Trustee for so

                                      -28-

<PAGE>

long as the Indenture continues in full force and effect; after the Indenture is
terminated in accordance with the terms thereof, the Servicer's Home Loan Files
shall be held in the custody of the Servicer for the benefit of, and as agent
for, the Certificateholders. It is intended that, by the Servicer's agreement
pursuant to this Section 2.05(b), the Indenture Trustee shall be deemed to have
possession of the Servicer's Home Loan Files for purposes of Section 9-305 of
the Uniform Commercial Code of the state in which such documents or instruments
are located. The Servicer shall promptly report to the Indenture Trustee any
failure by it to hold the Servicer's Home Loan File as herein provided and shall
promptly take appropriate action to remedy any such failure. In acting as
custodian of such documents and instruments, the Servicer agrees not to assert
any legal or beneficial ownership interest in the Home Loans or such documents
or instruments. The Servicer agrees to indemnify the Securityholders and the
Indenture Trustee for any and all liabilities, obligations, losses, damages,
payments, costs or expenses of any kind whatsoever which may be imposed on,
incurred by or asserted against the Securityholders or the Indenture Trustee as
the result of any act or omission by the Servicer relating to the maintenance
and custody of such documents or instruments which have been delivered to the
Servicer; provided, however, that the Servicer will not be liable for any
portion of any such amount resulting from the negligence or misconduct of any
Securityholders or the Indenture Trustee; and provided, further, that the
Servicer will not be liable for any portion of any such amount resulting from
the Servicer's compliance with any instructions or directions consistent with
this Agreement issued to the Servicer by the Indenture Trustee. The Indenture
Trustee shall have no duty to monitor or otherwise oversee the Servicer's
performance as custodian hereunder.

            (c) The Indenture Trustee agrees to cause the Custodian to review,
for the benefit of the Securityholders, each Indenture Trustee's Home Loan File
within 60 days after the date the Custodian delivered a Custodian's Initial
Certification and to deliver to the Transferor, the Depositor, the Servicer, the
Indenture Trustee [and the Securities Insurer] an updated certification (a
"Custodian's Updated Certification"), setting forth those exceptions listed on
the Custodian's Initial Certification which continue to exist on the date of
such Custodian's Updated Certification. With respect to any Home Loans which are
set forth as exceptions in the Custodian's Updated Certification because
recorded assignments or original or certified copies of Mortgages have not yet
been delivered to the Custodian, the Transferor shall cure such exceptions by
delivering such missing documents to the Custodian no later than 180 days after
the Closing Date.

            The Indenture Trustee agrees to cause the Custodian to review for
the benefit of the Securityholders, each Indenture Trustee's Home Loan File
within 180 days after the date it delivered a Custodian's Initial Certification
and to deliver to the Transferor, the Depositor, the Servicer, the Indenture
Trustee, [and the Securities Insurer] a final certification (a "Custodian's
Final Certification"), setting forth those exceptions listed on the Custodian's
Updated Certification which continue to exist on the date of such Custodian's
Final Certification.

            In performing any such review, the Custodian may conclusively rely
on the Transferor as to the purported genuineness of any such document and any
signature thereon. Neither the Indenture Trustee nor the Custodian shall have
any responsibility for determining whether any document is valid and binding,
whether the text of any assignment or endorsement is in proper or recordable
form, whether any document has been recorded in accordance with the requirements
of any applicable jurisdiction or whether a blanket assignment is permitted in
any

                                      -29-

<PAGE>

applicable jurisdiction. If a material defect in a document constituting part of
a Indenture Trustee's Home Loan File is discovered, then the Depositor and
Transferor shall comply with the cure, substitution and repurchase provisions of
Section 3.05 hereof.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

            Section 3.01 Representations and Warranties of the Depositor. The
Depositor hereby represents and warrants to the Transferor, the Master Servicer,
the Servicer, the Indenture Trustee, the Owner Trustee[, the Securities Insurer]
and the Noteholders that as of the Closing Date:

            (a) The Depositor is a [__________] duly organized, validly existing
and in good standing under the laws of the State of [________] and has, and had
at all relevant times, full power to own its property, to carry on its business
as currently conducted, to enter into and perform its obligations under each
Transaction Document to which the Depositor is a party and to create the Trust
pursuant to the Owner Trust Agreement.

            (b) The execution and delivery of each Transaction Document to which
the Depositor is a party by the Depositor and its performance of and compliance
with the terms thereof will not violate the Depositor's certificate or limited
liability company agreement constitute a default (or an event which, with notice
or lapse of time, or both, would constitute a default) under, or result in the
breach or acceleration of, any material contract, agreement or other instrument
to which the Depositor is a party or which may be applicable to the Depositor or
any of its assets.

            (c) The Depositor has the full power and authority to enter into and
consummate the transactions contemplated by each Transaction Document to which
the Depositor is a party, has duly authorized the execution, delivery and
performance of each Transaction Document to which the Depositor is a party and
has duly executed and delivered each Transaction Document to which the Depositor
is a party. Each Transaction Document to which the Depositor is a party,
assuming due authorization, execution and delivery by each other party thereto,
constitutes a valid, legal and binding obligation of the Depositor, enforceable
against it in accordance with the terms thereof, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization, receivership, moratorium
or other similar laws relating to or affecting the rights of creditors
generally, and by general equity principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

            (d) The Depositor is not in violation of, and the execution and
delivery of any Transaction Document by the Depositor and its performance and
compliance with the terms of any Transaction Document to which the Depositor is
a party will not constitute a violation with respect to, any order or decree of
any court or any order or regulation of any federal, state, municipal or
governmental agency having jurisdiction, which violation would materially and
adversely affect the condition (financial or otherwise) or operations of the
Depositor or its properties or materially and adversely affect the performance
of its duties hereunder or thereunder.

                                      -30-

<PAGE>

            (e) There are no actions or proceedings against, or investigations
of, the Depositor currently pending with regard to which the Depositor has
received service of process and no action or proceeding against, or
investigation of, the Depositor is, to the knowledge of the Depositor,
threatened or otherwise pending before any court, administrative agency or other
tribunal that (A) if determined adversely, would prohibit its entering into any
Transaction Document to which the Depositor is a party or render the Notes
invalid, (B) seek to prevent the issuance of the Notes or the consummation of
any of the transactions contemplated by any Transaction Document to which the
Depositor is a party or (C) if determined adversely, would prohibit or
materially and adversely affect the performance by the Depositor of its
obligations under, or the validity or enforceability of, any Transaction
Document to which the Depositor is a party or the Notes.

            (f) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Depositor of, or compliance by the Depositor with, any
Transaction Document to which the Depositor is a party or the Notes, or for the
consummation of the transactions contemplated by any Transaction Document,
except for such consents, approvals, authorizations and orders, if any, that
have been obtained prior to the Closing Date.

            (g) The Depositor is solvent, is able to pay its debts as they
become due and has capital sufficient to carry on its business and its
obligations hereunder; it will not be rendered insolvent by its execution and
delivery of any Transaction Document or its obligations hereunder; no petition
of bankruptcy (or similar insolvency proceeding) has been filed by or against
the Depositor prior to the date hereof.

            (h) The Depositor did not sell the Home Loans to the Issuer, with
any intent to hinder, delay or defraud any of its creditors; the Depositor will
not be rendered insolvent as a result of the sale of the Home Loans to the
Issuer.

            (i) Immediately upon each transfer and assignment herein
contemplated, the Depositor will have delivered to the Issuer good title to, and
the Issuer will be the sole beneficial owner of, the Home Loans free and clear
of any lien or options in favor of, or claims of, any other Person.

            (j) No Officers' Certificate, statement, report or other document
prepared by the Depositor and furnished or to be furnished by it pursuant to
this Agreement or in connection with the transactions contemplated hereby
contains any untrue statement of material fact.

            (k) The Depositor is not required to be registered as an "investment
company" under the Investment Company Act of 1940, as amended.

            Section 3.02 Representations and Warranties of the Transferor. The
Transferor hereby represents and warrants to the Servicer, the Indenture
Trustee, the Owner Trustee[, the Securities Insurer], the Noteholders and the
Depositor that as of the Closing Date (except as otherwise specifically provided
herein):

            (a) The Transferor is _______________________________duly organized,
validly existing and in good standing under the laws of the State of
__________________ and

                                      -31-

<PAGE>

has and had at all relevant times, full corporate power to originate or purchase
the Home Loans, to own its property, to carry on its business as presently
conducted and to enter into and perform its obligations under each Transaction
Document to which it is a party.

            (b) The execution and delivery of each Transaction Document to which
it is a party by the Transferor and its performance of and compliance with the
terms of each Transaction Document to which it is a party will not violate the
Transferor's certificate of incorporation or by-laws or constitute a default (or
an event which, with notice or lapse of time, or both, would constitute a
default) under, or result in the breach or acceleration of, any material
contract, agreement or other instrument to which the Transferor is a party or
which may be applicable to the Transferor or any of its assets.

            (c) The Transferor has the full power and authority to enter into
and consummate all transactions to be consummated by it, contemplated by each
Transaction Document to which it is a party has duly authorized the execution,
delivery and performance of each Transaction Document to which it is a party and
has duly executed and delivered each Transaction Document to which it is a
party. Each Transaction Document to which the Transferor is a party, assuming
due authorization, execution and delivery by the other parties thereto,
constitutes a valid, legal and binding obligation of the Transferor, enforceable
against it in accordance with the terms thereof, except as such enforcement may
be limited by bankruptcy, insolvency, reorganization, receivership, moratorium
or other similar laws relating to or affecting the rights of creditors
generally, and by general equity principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

            (d) The Transferor is not in violation of, and the execution and
delivery of any Transaction Documents by the Transferor and its performance and
compliance with the terms thereof will not constitute a violation with respect
to, any order or decree of any court or any order or regulation of any federal,
state, municipal or governmental agency having jurisdiction, which violation
would materially and adversely affect the condition (financial or otherwise) or
operations of the Transferor or its properties or materially and adversely
affect the performance of its duties hereunder or thereunder.

            (e) There are no actions or proceedings against, or investigations
of, the Transferor currently pending with regard to which the Transferor has
received service of process and no action or proceeding against, or
investigation of, the Transferor is, to the knowledge of the Transferor,
threatened or otherwise pending, before any court, administrative agency or
other tribunal that (A) if determined adversely, would prohibit its entering
into this Agreement or render the Notes invalid, (B) seek to prevent the
issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement or (C) if determined adversely, would prohibit or
materially and adversely affect the sale of the Home Loans to the Depositor, the
performance by the Transferor of its obligations under, or the validity or
enforceability of, this Agreement or the Notes.

            (f) No consent, approval, authorization or order of any court or
governmental agency or body is required for: (1) the execution, delivery and
performance by the Transferor of, or compliance by the Transferor with, this
Agreement, (2) the issuance of the Notes, (3) the sale of the Home Loans under
the Home Loan Purchase Agreement or (4) the consummation of the

                                      -32-

<PAGE>

transactions required of it by this Agreement, except such as shall have been
obtained before the Closing Date.

            (g) The Transferor acquired title to the Home Loans in good faith,
without notice of any adverse claim.

            (h) The collection practices used by the Transferor with respect to
the Home Loans have been, in all material respects, legal, proper, prudent and
customary in the servicing of loans of the same type as the Home Loans;

            (i) No Officer's Certificate, statement, report or other document
prepared by the Transferor and furnished or to be furnished by it pursuant to
any Transaction Document or in connection with the transactions contemplated
hereby contains any untrue statement of material fact.

            (j) The Transferor is solvent, is able to pay its debts as they
become due and has capital sufficient to carry on its business and its
obligations hereunder; it will not be rendered insolvent by the execution and
delivery of any Transaction Document or by the performance of its obligations
hereunder; no petition of bankruptcy (or similar insolvency proceeding) has been
filed by or against the Transferor prior to the date hereof.

            (k) The Prospectus Supplement does not contain an untrue statement
of a material fact and does not omit to state a material fact necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading; provided, however, that the Transferor makes no statement
with respect to: (1) the statements set forth in the final paragraph of the
cover of the Prospectus Supplement; and (2) statements set forth under the
following captions: (i) "SUMMARY -- Tax Status", "-- ERISA Considerations", and
"-- Legal Investment"; (ii) "DESCRIPTION OF CREDIT ENHANCEMENT"; (iii) "FEDERAL
INCOME TAX CONSEQUENCES"; (iv) "ERISA CONSIDERATIONS"; (v) "LEGAL INVESTMENT
MATTERS"; and (vi) "UNDERWRITING".

            (l) The Transferor has transferred the Home Loans without any intent
to hinder, delay or defraud any of its creditors.

            (m) The origination and collection practices used with respect to
each Debt Instrument and Mortgage have been in all material respects legal,
proper, prudent and customary in the mortgage origination and servicing business
and in compliance with the Transferor's underwriting criteria as described in
the Prospectus Supplement.

            (n) Upon the receipt of each Indenture Trustee's Home Loan File by
the Custodian, the Indenture Trustee will have a first priority security
interest in each Home Loan and such other items comprising the corpus of the
Trust free and clear of any lien, charge or encumbrance other than the lien of
the Indenture.

            (o) The transfer, assignment and conveyance of the Debt Instruments
and the Mortgages by the Transferor pursuant to this Agreement are not subject
to the bulk transfer laws or any similar statutory provisions in effect in any
applicable jurisdiction.

                                      -33-

<PAGE>

            It is understood and agreed that the representations and warranties
set forth in this Section 3.02 shall survive delivery of the Indenture Trustee's
Home Loan Files to the Custodian and shall inure to the benefit of the
Securityholders, the Securities Insurer, the Depositor, the Master Servicer, the
Servicer, the Indenture Trustee, the Owner Trustee and the Trust. Upon discovery
by any of the Transferor, [the Securities Insurer,] the Depositor, the Master
Servicer, the Servicer, the Indenture Trustee or the Owner Trustee of a breach
of any of the foregoing representations and warranties that materially and
adversely affects the value of any Home Loan, the party discovering such breach
shall give prompt written notice (but in no event later than two Business Days
following such discovery) to the other parties. The obligations of the
Transferor set forth in Section 3.05 hereof shall constitute the sole remedies
available hereunder to the Securityholders, the Depositor, the Master Servicer,
the Servicer, the Indenture Trustee or the Owner Trustee respecting a breach of
the representations and warranties contained in this Section 3.02.

            Section 3.03 Representations, Warranties and Covenants of the Master
Servicer.The Master Servicer hereby represents and warrants to and covenants
with the Owner Trustee, the Indenture Trustee, [the Securities Insurer,] the
Noteholders, the Depositor, and the Transferor that as of the Closing Date or as
of such date specifically provided herein:

            (a) The Master Servicer is a ______________________________ duly
organized, validly existing, and in good standing under the laws of the state of
_________________ and has all licenses necessary to carry on its business as now
being conducted and is licensed, qualified and in good standing in each state
where any property securing the Home Loans is located if the laws of such state
require licensing or qualification in order to conduct business of the type
conducted by the Master Servicer and perform its obligations as Master Servicer
hereunder and under the Servicing Agreement; the Master Servicer has the power
and authority to execute and deliver this Agreement and under the Servicing
Agreement and to perform its obligations in accordance herewith and therewith;
the execution, delivery and performance of this Agreement and under the
Servicing Agreement (including all instruments of transfer to be delivered
pursuant to this Agreement) by the Master Servicer and the consummation of the
transactions contemplated hereby and thereby have been duly and validly
authorized by all necessary action; this Agreement and under the Servicing
Agreement evidences the valid, binding and enforceable obligation of the Master
Servicer; and all requisite action has been taken by the Master Servicer to make
this Agreement valid, binding and enforceable upon the Master Servicer in
accordance with its terms, subject to and under the Servicing Agreement the
effect of bankruptcy, insolvency, reorganization, moratorium and other, similar
laws relating to or affecting creditor's rights generally or the application of
equitable principles in any proceeding, whether at law or in equity.

            (b) All actions, approvals, consents, waivers, exemptions,
variances, franchises, orders, permits authorizations, rights and licenses
required to be taken, given or obtained, as the case may be, by or from any
federal, state or other governmental authority or agency, that are necessary in
connection with the purchase and sale of the Notes and the execution and
delivery by the Master Servicer of the documents to which it is a party, have
been duly taken, given or obtained, as the case may be, are in full force and
effect, are not subject to any pending proceedings or appeals (administrative,
judicial or otherwise) and either the time within which any appeal therefrom may
be taken or review thereof may be obtained has expired

                                      -34-

<PAGE>

or no review thereof may be obtained or appeal therefrom taken, and are adequate
to authorize the consummation of the transactions contemplated by this Agreement
and the other documents on the part of the Master Servicer and the performance
by the Master Servicer of its obligations as Master Servicer under this
Agreement and such other documents to which it is a party.

            (c) The consummation of the transaction contemplated by this
Agreement and the Servicing Agreement will not result in the breach of any terms
or provisions of the certificate of incorporation or by-laws of the Master
Servicer or result in the breach of any term or provision of, or conflict with
or constitute a default under or result in the acceleration for any obligation
under, any material agreement, indenture or loan or credit agreement or other
material instrument to which the Master Servicer or to its property is subject,
or result in the violation of any law, rule, regulation, order, judgment or
decree to which the Master Servicer or its property is subject;

            (d) Neither this Agreement nor any report or other document prepared
by the Master Servicer and furnished or to be furnished pursuant to this
Agreement or in connection with the transactions contemplated hereby contains
any untrue statement of material fact; and the statements set forth in the
Prospectus Supplement under the caption "THE MASTER SERVICER" do not contain an
untrue statement of a material fact and do not omit to state a material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

            (e) There is no action, suit, proceeding or investigation pending
or, to the best of the Master Servicer's knowledge, threatened against the
Master Servicer which, either in any one instance or in the aggregate, may
result in any material adverse change in the business, operations, financial
condition, properties or assets of the Master Servicer or in any material
impairment of the right or ability of the Master Servicer to carry on its
business substantially as now conducted, or in any material liability on the
part of the Master Servicer or which would draw into question the validity of
this Agreement, the Servicing Agreement or the Home Loans or of any action taken
or to be taken in connection with the obligations of the Master Servicer
contemplated herein, or which would be likely to impair the ability of the
Master Servicer to perform under the terms of this Agreement or the Servicing
Agreement.

            (f) The Master Servicer is not in default with respect to any order
or decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency, which default might have consequences that
would materially and adversely affect the condition (financial or other) or
operations of the Master Servicer or its properties or might have consequences
that would adversely affect its performance hereunder or under the Servicing
Agreement.

            It is understood and agreed that the representations, warranties and
covenants set forth in this Section 3.03 shall survive delivery of the
respective Home Loan Files to the Indenture Trustee and shall inure to the
benefit of the Depositor, the Noteholders, the Owner Trustee[, the Securities
Insurer], and the Indenture Trustee. Upon discovery by any of the Transferor,
the Depositor, the Indenture Trustee[, the Securities Insurer] or the Owner
Trustee of a breach of any of the foregoing representations, warranties and
covenants that materially and adversely affects the value of any Home Loan or
the interests of such Person therein, the party

                                      -35-

<PAGE>

discovering such breach shall give prompt written notice (but in no event later
than _______ Business Days following such discovery) to the other parties.

            Section 3.04 Representations and Warranties Regarding Individual
Home Loans. The Transferor hereby represents and warrants to the Depositor, the
Issuer, the Indenture Trustee, the Owner Trustee[, the Securities Insurer], the
Master Servicer and the Noteholders, with respect to each Home Loan as of the
Closing Date, except as otherwise expressly stated:

            (a) Home Loan Schedule. The information with respect to each Home
Loan set forth in the Home Loan Schedule is complete, true and correct as of the
Cut-off-Date;

            (b) Delivery of Home Loan File. All of the original or certified
documentation required to be delivered by the Transferor on the Closing Date or
as otherwise provided herein has or will be so delivered as provided; The Home
Loan File contains each of the documents and instruments specified to be
included therein duly executed and in due and proper form, and each such
document or instrument is in a form generally acceptable to prudent home loan
lenders that regularly originate or purchase mortgage loans comparable to the
Home Loans for sale to prudent investors in the secondary market that invest in
mortgage loans such as the Home Loans;

            (c) Nature of Property. Each Mortgaged Property consists of a single
parcel of residential real property, separately assessed for tax purposes, owned
by the related Obligor in fee simple absolute and is improved by a
one-to-four-family residential dwelling, which does not include condominiums,
cooperatives, units in a planned urban development, town houses, or mobile homes
and does not constitute other than real property under the state law. No
Mortgage Property is a manufactured housing unit, as defined in the Fannie
Mae/Freddie Mac Seller-Servicer's Guide;

            (d) Servicing. Each Home Loan is being serviced by the Master
Servicer;

            (e) Fixed Interest Rate. The Debt Instruments related to
approximately ______% of the Home Loans bear a fixed Home Loan Interest Rate.
The Home Loan Interest Rate on the fixed rate Home Loans is not less than _____%
nor more than _______% and as of the Cut-Off-Date, the weighted average Home
Loan Interest Rate on the fixed rate Home Loans is approximately ________%;

            (f) Adjustable Home Loan Interest Rates. The Debt Instrument related
to approximately ______% of the Home Loans bear an adjustable Home Loan Interest
Rate ("ARMs"). All of the terms of the Mortgage pertaining to interest rate
adjustments, payment adjustments and adjustments of the principal balance with
respect to the ARMs are enforceable, all such adjustments have been correctly
made in accordance with the terms of the related Debt Instrument and such
adjustments will not affect the priority of the Mortgage lien; all ARMs have an
index and there is no provision which would permit the Obligor to convert to a
fixed interest rate; as of the Cut-off Date, the weighted average margin on the
ARMs was approximately ________%; the ARMs have a weighted average contractual
maximum interest rate equal to approximately _______%; the ARMs have a weighted
average contractual minimum interest rate equal to approximately ________%;
approximately ________% of the ARMS are 2/28's and

                                      -36-

<PAGE>

have a subsequent adjustment frequency of six months, approximately _______% of
the ARMs are 3/27's and have a subsequent adjustment frequency of six months and
the remaining approximately ____% of the ARMs adjust every 6 months;

            (g) Priority of Lien. Each Mortgage is a valid and subsisting first
lien of record on a single parcel of real estate constituting the Mortgaged
Property, subject in all cases to the exceptions to title set forth in the title
insurance policy, with respect to the related Home Loan, which exceptions are
generally acceptable to mortgage lending companies, and such other exceptions to
which similar properties are commonly subject and which do not individually, or
in the aggregate, materially and adversely affect the benefits of the security
intended to be provided by such Mortgage;

            (h) Title. Except with respect to liens released immediately prior
to the transfer herein contemplated, immediately prior to the transfer and
assignment herein contemplated the Transferor held good and indefeasible title
to, and was the sole owner of, each Home Loan, subject to no liens, charges,
mortgages, encumbrances or rights of others; and immediately upon the transfer
and assignment herein contemplated, the Owner Trust will hold good and
indefeasible title to, and be the sole owner of, each Home Loan, subject to no
liens, charges, mortgages, encumbrances or rights of others;

            (i) Delinquencies. As of the Cut-Off Date, _____ Home Loans are 30
or more days delinquent; ___ Home Loans are over 60 days delinquent; and _____
Home Loan has ever been 89 or more days delinquent;

            (j) Tax Liens; Status of Property. There is no delinquent tax or
assessment lien on any Mortgaged Property, and each Mortgaged Property is free
of material damage and is in good repair;

            (k) No Defenses. The Home Loan is not subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
nor will the operation of any of the terms of the Debt Instrument or the
Mortgage, or the exercise of any right thereunder, render either the Debt
Instrument or the Mortgage unenforceable in whole or in part, or subject to any
right of rescission, set-off, counterclaim or defense, including the defense of
usury, and no such right of rescission, set-off, counterclaim or defense has
been asserted with respect thereto;

            (l) No Mechanic's Lien. There is no mechanic's lien or claim for
work, labor or material affecting any Mortgaged Property which is or may be a
lien prior to, or equal to or on a parity with, the lien of such Mortgage except
those which are insured against by the title insurance policy referred to in
Section (n) below;

            (m) Origination in Compliance with Laws. Each Home Loan complies, at
the time it was made complied and at all times has complied in all material
respects with applicable local, state and federal laws and regulations,
including, without limitation, usury, truth-in-lending, real estate settlement
procedure, consumer credit protection, equal credit opportunity, disclosure and
recording laws and the Transferor has and shall maintain in its possession
available for inspection and shall deliver upon demand, evidence of compliance
with

                                      -37-

<PAGE>

all such requirements; and, to the Transferor's knowledge, no fraud or
misrepresentation was committed by any person or entity in connection with the
origination of each Home Loan;

            (n) Title Insurance. With respect to each Home Loan, a written
commitment for a lender's title insurance policy, issued in standard American
Land Title Association or California Land Title Association form, or other form
acceptable in a particular jurisdiction, by a title insurance company authorized
to transact business in the state in which the related Mortgaged Property is
situated, together with a condominium endorsement, if applicable, in an amount
at least equal to the original Principal Balance of such Home Loan insuring the
mortgagee's interest under the related Home Loan as the holder of a valid first
mortgage lien of record on the real property described in the Mortgage, subject
only to exceptions of the character referred to in paragraph (g) above, was
effective on the date of the origination of such Home Loan, and, as of the
Closing Date, such commitment will be valid and thereafter the policy issued
pursuant to such commitment shall continue in full force and effect. The
originator is the sole named insured of such mortgage title insurance policy,
the assignment to the Owner Trust, and the pledge to the Indenture Trustee, of
the originator's interest in such mortgage title insurance policy does not
require the consent of or notification to the insurer, and such mortgage title
insurance policy is in full force and effect and will be in full force and
effect and inure to the benefit of the Owner Trust upon the consummation of the
transactions contemplated by this Agreement. No claims have been made under such
mortgage title insurance policy and no prior holder of the related Mortgage,
including the originator, has done, by act or omission, anything that would
impair the coverage of such mortgage title insurance policy;

            (o) Hazard Insurance. The improvements upon each Mortgaged Property
are covered by a valid and existing hazard insurance policy with a generally
acceptable carrier that provides for fire and extended coverage representing
coverage not less than the least of (1) the outstanding principal balance of the
related Mortgage, (2) the minimum amount required to compensate for damage or
loss on a replacement cost basis or (3) the full insurable value of the
Mortgaged Property. All individual insurance policies (collectively, the "Hazard
insurance policy") are the valid and binding obligation of the insurer and
contain a standard mortgagee clause naming the originator, its successors and
assigns, as mortgagee. All premiums thereon have been paid. The Mortgage
obligated the Obligor thereunder to maintain all such insurance at the Obligor's
cost and expense, and upon the Obligor's failure to do so, authorizes the holder
of the Mortgage to obtain and maintain such insurance at the Obligor's cost and
expense and to seek reimbursement therefor from the Obligor;

            (p) Flood Insurance. If any Mortgaged Property is in an area
identified in the Federal Register by the Federal Emergency Management Agency as
having special flood hazards, a flood insurance policy in a form meeting the
requirements of the current guidelines of the Federal Insurance Administration
is in effect with respect to such Mortgaged Property with a generally acceptable
carrier in an amount representing coverage not less than the least of (A) the
outstanding principal balance of the related Home Loan, (B) the minimum amount
required to compensate for damage or loss on a replacement cost basis or (C) the
maximum amount of insurance that is available under the National Flood Insurance
Act of 1968, as amended; The Mortgage obligated the Obligor thereunder to
maintain all such insurance at the Obligor's cost and expense, and upon the
Obligor's failure to do so, authorizes the holder of the Mortgage to

                                      -38-

<PAGE>

obtain and maintain such insurance at the Obligor's cost and expense and to seek
reimbursement therefor from the Obligor;

            (q) Enforceability. Each Mortgage and Debt Instrument is genuine and
is the legal, valid and binding obligation of the maker thereof and is
enforceable in accordance with its terms, except only as such enforcement may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforcement of creditors' rights generally and by general
principles of equity (whether considered in a proceeding or action in equity or
at law), and all parties to each Home Loan had full legal capacity to execute
all Home Loan documents and convey the estate therein purported to be conveyed
and the Mortgage and Debt Instrument have been duly and properly executed by
such parties; the Obligor is a natural person who is a party to the Debt
Instrument and the Mortgage in an individual capacity and not in the capacity of
a trustee or otherwise;

            (r) Notice to Insurers. The Transferor has caused or will cause to
be performed any and all acts required to be performed to preserve the rights
and remedies of the Indenture Trustee in any insurance policies applicable to
the Home Loans including, without limitation, any necessary notifications of
insurers, assignments of policies or interests therein, and establishments of
co-insured, joint loss payee and mortgagee rights in favor of the Indenture
Trustee;

            (s) Geographic Concentration. No more than approximately _____% of
the Original Pool Principal Balance is secured by Mortgaged Properties located
within any single zip code area; no more than _____% of the Original Pool
Principal Balance is located within any single state, except as follows
______________, _____________, ______________, or___________;

            (t) Primary Residence. At least approximately ________% of the
Original Pool Principal Balance is secured by Mortgaged Properties that are
maintained by the Obligors as primary residence;

            (u) No Modification. The terms of the Debt Instrument and the
Mortgage have not been impaired, altered or modified in any material respect,
except by a written instrument which has been recorded or is in the process of
being recorded, if necessary, to protect the interest of the Securityholders and
which has been or will be delivered to the Trustee or the Custodian. The
substance of any such alteration or modification is reflected on the Home Loan
Schedule;

            (v) Recordation. Each original Mortgage was recorded, and all
subsequent assignments of the original Mortgage have been recorded in the
appropriate jurisdictions wherein such recordation is necessary to perfect the
lien thereof as against creditors of the Transferor (or, subject to Section
2.04(d) hereof, are in the process of being recorded);

            (w) No Waiver. No instrument or release or waiver has been executed
in connection with the Home Loan, and no Obligor has been released, in whole or
in part;

            (x) Taxes and Insurance. All taxes, governmental assessments,
insurance premiums, water, sewer and municipal charges, leasehold payments or
ground rents which

                                      -39-

<PAGE>

previously became due and owing have been paid, or an escrow of funds has been
established in an amount sufficient to pay for every such item which remains
unpaid and which has been assessed but is not yet due and payable;

            (y) No Advances. Except for payments in the nature of escrow
payments, including without limitation, taxes and insurance payments, the Master
Servicer has not advanced funds, or induced, solicited or knowingly received any
advance of funds by a party other than the Obligor, directly or indirectly, for
the payment of any amount required by the Mortgage, except for interest accruing
from the date of the Debt Instrument or date of disbursement of the Mortgage
proceeds, whichever is greater, to the day which precedes by one month the Due
Date of the first installment of principal and interest;

            (z) Condemnation; Damage. There is no proceeding pending or
threatened for the total or partial condemnation of the Mortgaged Property, nor
is such a proceeding currently occurring. No Mortgaged Property is damaged by
waste, fire, earthquake or earth movement, windstorm, flood, tornado or other
casualty, so as to affect adversely the value of the Mortgaged Property as
security for the Home Loan or the use for which the premises were intended;

            (aa) No Encroachments. All of the improvements which were included
for the purpose of determining the appraised value of the Mortgaged Property lie
wholly within the boundaries and building restriction lines of such property,
and no improvements on adjoining properties encroach upon the Mortgaged
Property;

            (bb) Property in Compliance with Law. No improvement located on or
being part of the Mortgaged Property is in violation of any applicable zoning
law or regulation. All inspections, licenses and certificates required to be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities and the Mortgaged
Property is lawfully occupied under applicable law;

            (cc) No Future Advances. The proceeds of the Home Loan have been
fully disbursed, and there is no obligation on the part of the mortgagee or any
person to make, or option on the part of the mortgagor to request, future
advances thereunder. Any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor have
been satisfied. All costs, fees and expenses incurred in making or closing or
recording the Home Loans were paid;

            (dd) Mortgage as Sole Security. The related Debt Instrument is not
and has not been secured by any collateral, pledged account or other security
except the lien of the corresponding Mortgage;

            (ee) No-Buy-Down Loans. No Home Loan was originated under a buydown
plan;

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<PAGE>

            (ff) No Originator Payment Obligations. There is no obligation on
the part of the Master Servicer or any other party to make payments in addition
to those made by the Obligor;

            (gg) Deeds of Trust. With respect to each Mortgage constituting a
deed of trust, a trustee, duly qualified under applicable law to serve as such,
has been properly designated and currently so serves and is named in such
Mortgage, and no fees or expenses are or will become payable by the Noteholders
or the Trust to the trustee under the deed of trust, except in connection with a
trustee's sale after default by the Obligor;

            (hh) No Shared Appreciation. No Home Loan has a shared appreciation
feature, or other contingent interest feature;

            (ii) State Qualification. All parties which have had any interest in
the Home Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or,
during the period in which they held and disposed of such interest, were) (1) in
compliance with any and all applicable licensing requirements of the laws of the
state wherein the Mortgaged Property is located, and (2)(A) organized under the
laws of such state, or (B) qualified to do business in such state, or (C)
federal savings and loans associations or national banks having principal
offices in such state or (D) not doing business in such state so as to require
qualification or licensing;

            (jj) Due on Sale. The Mortgage contains a customary provision for
the acceleration of the payment of the unpaid principal balance of the Home Loan
in the event the related Mortgage Property is sold without the prior consent of
the mortgagee thereunder;

            (kk) Obligor Bankruptcy. No Obligor is a debtor in any state or
federal insolvency or bankruptcy proceeding;

            (ll) Enforcement Rights. The related Mortgage contains customary and
enforceable provisions which render the rights and remedies of the holder
thereof adequate for the realization against the Mortgaged Property of the
benefits of the security, including, (i) in the case of a Mortgage designated as
a deed of trust, by trustee's sale, and (ii) otherwise by judicial foreclosure.
There is no homestead or other exemption available to the Mortgagor which would
materially interfere with the right to sell the Mortgaged Property at a
trustee's sale or the right to foreclose upon the related Mortgage;

            (mm) No Default. Other than delinquent Home Loans set forth in
clause (i) of this Section 3.04, there is no default, breach, violation or event
of acceleration existing under the Mortgage or the related Debt Instrument and
no event which, with the passage of time or with notice and the expiration of
any grace or cure period, would constitute a default, breach, violation or event
of acceleration; and neither the Master Servicer nor the Transferor has waived
any default, breach, violation or event of acceleration;

            (nn) Deposit of Payments. All amounts received on and after the
Cut-Off Date with respect to the Home Loans to which the Transferor is not
entitled to have been deposited into the Collection Account and are, as of the
Closing Date, in the Collection Account;

                                      -41-

<PAGE>

            (oo) Underwriting. All of the Home Loans were originated and
underwritten by the Transferor, or purchased and re-underwritten by the
Transferor, in each case in accordance with the underwriting criteria set forth
in the Prospectus Supplement;

            (pp) Conformity to Prospectus. Each Home Loan conforms, and all such
Home Loans in the aggregate conform, to the description thereof set forth in the
Prospectus and the Prospectus Supplement;

            (qq) No Adverse Selection. The Home Loans were not selected by the
Transferor for inclusion in the Trust on any basis intended to adversely affect
the Trust;

            (rr) Appraisal. A full appraisal on forms approved by FNMA or FHLMC
was performed in connection with the origination of the related Home Loan. Each
appraisal meets guidelines that would be generally acceptable to prudent
mortgage lenders that regularly originate or purchase mortgage loans comparable
to the Home Loan for sale to prudent investors in the secondary market that
invest in loans such as the Home Loans;

            (ss) Loan-To-Value. As of the Cut-Off Date, no Home Loan had a
Loan-To-Value Ratio in excess of 90.00% and as of the Cut-off Date, the weighted
average Loan-To-Value Ratio is _________%;

            (tt) Environmental Matters. To the best of the Transferor's
knowledge, (i) no Mortgaged Property was, as of the Cut-Off Date, (A) located
within a one-mile radius of any site containing environmental or hazardous waste
risks, and (B) in violation of any environmental law or regulation; and (ii) no
Mortgaged Property contained any environmentally hazardous material, substance
or waste;

            (uu) Status of Originators. Each Home Loan was either (i) originated
by a savings and loan association, savings bank, commercial bank, credit union,
insurance company, or similar institution which is supervised and examined by a
federal or state authority, or by a mortgagee approved by the Secretary of
Housing and Urban Development pursuant to Sections 203 and 211 of the National
Housing Act or (ii) such Home Loan was underwritten in accordance with standards
established by the Transferor, using application forms and related credit
documents approved by the Transferor; the Transferor approved each application
and the related credit documents before a commitment by the originator was
issued, and no such commitment was issued until the Transferor agreed to fund
such Home Loan; the closing documents for such Home Loan were prepared on forms
approved by the Transferor; and such Home Loan was actually funded by the
Transferor and was purchased by the Transferor at closing or soon thereafter;

            (vv) Term. No Home Loan has a remaining term in excess of 360
months; and

            (ww) Monthly Payments. Each Debt Instrument will provide for a
schedule of substantially equal Monthly Payments which are, if timely made,
sufficient to fully amortize the principal balance of such Debt Instrument on or
before its maturity date.

            Section 3.05 Purchase and Substitution. (a) Repurchase and
Substitution of Defective Home Loans. It is understood and agreed that the
representations and warranties set

                                      -42-

<PAGE>

forth in Section 3.02 and Section 3.04 hereof shall survive the conveyance of
the Home Loans from the Transferor to the Depositor and from the Depositor to
the Issuer, the pledge of the Home Loans to the Indenture Trustee and the
delivery of the Notes to the Noteholders. Upon discovery by the Depositor, the
Master Servicer, the Servicer, the Transferor, any Custodian, the Issuer, the
Indenture Trustee, the Owner Trustee, the Securities Insurer or any
Securityholder of a breach of any of the representations and warranties set
forth in Section 3.02 and Section 3.04 which materially and adversely affects
the value of the Home Loans or the interests of the Owner Trustee, the
Securities Insurer or the Indenture Trustee in the related Home Loan
(notwithstanding that such representation and warranty was made to the
Transferor's best knowledge), the party discovering such breach shall give
prompt written notice to the others. The Transferor shall, within 60 days of the
earlier of its discovery or its receipt of notice of any breach of a
representation or warranty, promptly cure such breach in all material respects.
If within 60 days after the earlier of the Transferor's discovery of such breach
or the Transferor's receiving notice thereof such breach has not been remedied
by the Transferor or waived by the Securities Insurer and such breach materially
and adversely affects the interests of the Owner Trustee or the Indenture
Trustee in, or the value of, the related Home Loan (the "Defective Home Loan"),
the Transferor shall on or before the Determination Date next succeeding the end
of such 60-day period either (i) remove such Defective Home Loan from the Trust
(in which case it shall become a Deleted Home Loan) and substitute one or more
Qualified Substitute Home Loans in the manner and subject to the conditions set
forth in this Section 3.05 or (ii) purchase such Defective Home Loan at a
purchase price equal to the Purchase Price by depositing such Purchase Price in
the Collection Account. The Transferor shall provide the Master Servicer, the
Servicer, the Indenture Trustee, the Securities Insurer and the Owner Trustee
with a certification of a Responsible Officer on the Determination Date next
succeeding the end of such 60-day period indicating whether the Transferor is
purchasing the Defective Home Loan or substituting in lieu of such Defective
Home Loan a Qualified Substitute Home Loan.

            Any substitution of Home Loans pursuant to this Section 3.05(a)
shall be accompanied by payment by the Transferor of the Substitution
Adjustment, if any, to be deposited in the Collection Account. For purposes of
calculating the Available Collection Amount for any Payment Date, amounts paid
by the Transferor pursuant to this Section 3.05 in connection with the
repurchase or substitution of any Defective Home Loan that are on deposit in the
Collection Account as of the Determination Date for such Payment Date shall be
deemed to have been paid during the related Due Period and shall be transferred
to the Note Payment Account as part of the Available Collection Amount to be
retained therein or transferred to the Certificate Distribution Account, if
applicable, pursuant to Section 5.01(c) hereof.

            In addition to such cure, repurchase or substitution obligation, the
Transferor shall indemnify the Issuer, the Depositor, the Master Servicer, the
Indenture Trustee, the Securities Insurer and the Securityholders against any
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments, and other costs and expenses resulting from
any claim, demand, defense or assertion based on or grounded upon, or resulting
from, a breach by the Transferor of any of it representations and warranties
contained in Section 3.02 and Section 3.04.

            (b) Repurchase of Defaulted Home Loans. In addition to the preceding
repurchase obligations, each of the Transferor and Master Servicer shall have
the option,

                                      -43-

<PAGE>

exercisable in its sole discretion at any time, to repurchase from the Owner
Trustee any Home Loan that is delinquent 91 or more days (in which case such
Home Loan shall become a Deleted Home Loan); provided, however, that any such
repurchase of a Home Loan pursuant to this Subsection shall be conducted in the
same manner as the repurchase of a Defective Home Loan pursuant to this Section
3.05. If the Home Loans repurchased pursuant to this Subsection 3.05(b) are in
excess of _______% of the Original Pool Principal Balance, then such repurchases
of Home Loans that exceed ________% of the Original Pool Principal Balance may
be affected only with the consent of the Securities Insurer and shall be
included as Realized Losses for purposes of determining the Realized Losses
under the OC Trigger Increase Event (but not with respect to the determination
of a Master Servicer Event of Default under Section 10.01(a) hereof).

            (c) Substitutions. As to any Deleted Home Loan for which the
Transferor substitutes a Qualified Substitute Home Loan(s), the Transferor shall
effect such substitution by delivering to the Indenture Trustee, the Master
Servicer and Owner Trustee (i) a certification executed by a Responsible Officer
of the Transferor to the effect that the Substitution Adjustment has been
credited to the Collection Account and (ii) the documents constituting the
Indenture Trustee's Home Loan File for such Qualified Substitute Home Loan(s).

            In accordance with Section 5.01(b)(1) hereof, the Master Servicer
shall cause the Servicer to deposit in the Collection Account all payments
received in connection with such Qualified Substitute Home Loan(s) after the
date of such substitution. Monthly Payments received with respect to Qualified
Substitute Home Loans on or before the date of substitution will be retained by
the Transferor. The Indenture Trustee will be entitled to all payments received
on the Deleted Home Loan on or before the date of substitution and the
Transferor shall thereafter be entitled to retain all amounts subsequently
received in respect of such Deleted Home Loan. The Transferor shall give written
notice to the Owner Trustee, the Master Servicer, the Servicer (if the
Transferor is not then acting as such), the Indenture Trustee[, the Securities
Insurer] and Owner Trustee that such substitution has taken place and the
Servicer shall amend the Home Loan Schedule pursuant to Subsection (g) below.
Upon such substitution, such Qualified Substitute Home Loan(s) shall be subject
to the terms of this Agreement in all respects, and the Transferor shall be
deemed to have made with respect to such Qualified Substitute Home Loan(s), as
of the date of substitution, the covenants, representations and warranties set
forth in Section 3.02 and Section 3.04 hereof. On the date of such substitution,
the Transferor will deposit into the Collection Account an amount equal to the
related Substitution Adjustment, if any.

            (d) Reassignment of Defective Home Loans. With respect to all
Defective Home Loans or other Home Loans repurchased by the Transferor pursuant
to this Agreement, upon the deposit of the Purchase Price therefor into the
Collection Account, the Owner Trustee shall assign to the Transferor, without
recourse, representation or warranty, all the Owner Trustee's right, title and
interest in and to such Defective Home Loans or other Home Loans, which right,
title and interest were conveyed to the Owner Trustee pursuant to the Home Loan
Purchase Agreement. The Owner Trustee shall take any actions as shall be
reasonably requested by the Transferor to effect the repurchase of any such Home
Loans.

                                      -44-

<PAGE>

            (e) Sole Remedies Against Transferor. It is understood and agreed
that the obligations of the Transferor to cure or to repurchase or substitute
any such Home Loan, and to indemnify for any breach of any representation or
warranty with respect thereto, pursuant to this Section 3.05 shall constitute
the sole remedies against it with respect to such breach of the foregoing
representations or warranties or the existence of the foregoing conditions. Any
cause of action against the Transferor relating to or arising out of a defect in
an Indenture Trustee's Home Loan File as or against the Transferor relating to
or arising out of a breach of any representations and warranties made in Section
3.02 and Section 3.04 hereof shall accrue as to any Home Loan upon (i) discovery
of such defect or breach by any party and notice thereof to the Transferor or
notice thereof by the Transferor to the Indenture Trustee, (ii) failure by the
Transferor to cure such defect or breach or purchase or substitute such Home
Loan as specified above, and (iii) demand upon the Transferor, as applicable, by
the Owner Trustee for all amounts payable in respect of such Home Loan.

            (f) No Duty to Investigate. Neither [the Securities Insurer,] the
Master Servicer, the Owner Trustee nor the Indenture Trustee shall have any duty
to conduct any affirmative investigation other than as specifically set forth in
this Agreement as to the occurrence of any condition requiring the repurchase or
substitution of any Home Loan pursuant to this Section or the eligibility of any
Home Loan for purposes of this Agreement.

            (g) Amendment of Home Loan Schedule. In connection with a repurchase
or substitution of any Home Loan pursuant to this Section 3.05, the Master
Servicer shall cause the Servicer shall amend the Home Loan Schedule to reflect
(i) the removal of the applicable Deleted Home Loan from the terms of this
Agreement, and (ii) if applicable, the substitution of the applicable Qualified
Substitute Home Loan. In connection with its monthly reporting here under, the
Master Servicer shall cause the Servicer shall deliver a copy of the amended
Home Loan Schedule to [the Securities Insurer,] the Master Servicer, the
Indenture Trustee, and the Transferor.

                                   ARTICLE IV

                 ADMINISTRATION AND SERVICING OF THE HOME LOANS

            Section 4.01 Appointment and Duties of the Master Servicer. (a)
Appointment and Compensation of Master Servicer. The Issuer, the Securityholders
and the Indenture Trustee hereby assign and appoint the Master Servicer to act
as the Master Servicer for the Home Loans (including all of the duties,
obligations and rights of the Master Servicer) under this Agreement. The Master
Servicer hereby accepts its appointment as the Master Servicer hereunder. The
Master Servicer hereby undertakes to enter into the Servicing Agreement with an
Eligible Servicer. The Master Servicer may remove and replace the Servicer under
the terms of the Servicing Agreement, provided that the Securities Insurer
consents to such termination and such Servicer is replaced with an Eligible
Servicer. The Master Servicer shall not consent to any amendment or modification
of any Servicing Agreement [without the consent of the Securities Insurer]. The
Master Servicer shall not consent to any material amendment, modification or
waiver of the servicing provisions of this Agreement, without the consent of
[the Securities Insurer and] the Indenture Trustee. The Issuer, the
Securityholders and the Indenture Trustee

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<PAGE>

hereby assign and appoint the Master Servicer to act on behalf of the Issuer as
"Owner" under the Servicing Agreement.

            As compensation for its services hereunder, the Master Servicer
shall be entitled to receive from the Note Payment Account the Master Servicer
Fee. In addition to the Master Servicer Fee, additional compensation
attributable to prepayment penalties, 20% of any late charges collected on the
Home Loans, investment earnings from the Collection Account and the Note Payment
Account shall be part of the Master Servicer Compensation payable to the Master
Servicer pursuant to Section 5.01(c) hereof. Master Servicing Compensation shall
be reduced by the amount of any due and unpaid Servicing Fee Recovery Amounts.
The Master Servicer shall be required to pay all expenses incurred by it in
connection with its Master Servicer duties and activities hereunder and shall
not be entitled to reimbursement therefor except as specifically provided for
herein.

            (b) Master Servicer Assumes Servicing Responsibility. If a Servicer
Termination Event occurs, then the Master Servicer shall be obligated (1) if
instructed by the Securities Insurer, to select a successor Servicer, [that is
acceptable to the Securities Insurer,] or (2) to act as the Servicer of the Home
Loans hereunder [unless the Securities Insurer directs otherwise].

            (c) Monitoring of Servicing. The Master Servicer shall: (i) review
the servicing reports and loan level information prepared by the Servicer (1) to
determine whether such reports are inaccurate or incomplete, in any material
respect, and (2) to ascertain that the Servicer is in compliance, in all
material respects, with its duties and obligations with respect to such reports
under this Agreement; (ii) otherwise monitor the performance by the Servicer of
its duties and obligations hereunder and notify the Indenture Trustee [and the
Securities Insurer] of any Servicer Event of Default of which it has received
notice or has actual knowledge; and (iii) be obligated to verify that the
Servicer has deposited all payments and proceeds required to be deposited into
the Collection Account pursuant to Section 5.01(b)(1) hereof. On the 19th
calendar day of each month (or the next Business Day, if the 19th is not a
Business Day), the Master Servicer shall provide the Indenture Trustee with an
Officer's Certificate to the effect that the Master Servicer has performed its
obligations under this Subsection 4.01(c) with respect to the servicing
information for such month.

            (d) Successor Servicer. The Master Servicer agrees that it shall at
all times be prepared [(and shall take all steps reasonably required by the
Securities Insurer to ensure such preparation)], to perform the duties and
obligations of the Servicer and become the successor servicer, if the Servicer
fails to perform its duties and obligations hereunder.

            (e) Servicer Termination or Non-Renewal. At the direction of [the
Securities Insurer, or] the Master Servicer [(with the prior consent of the
Securities Insurer)] or the Majority Noteholders [(with the prior consent of the
Securities Insurer)], the Master Servicer, on behalf of the Issuer and the
Securityholders, shall terminate the Servicer upon the occurrence and
continuance of a Servicer Event of Default. [The Securities Insurer will
instruct the Master Servicer not to renew the term of the Servicer and appoint a
replacement servicer (which shall be an Eligible Servicer) approved by the
Securities Insurer at the request of the Master Servicer.]

                                      -46-

<PAGE>

            (f) Resignation of Master Servicer. The Master Servicer shall resign
as Master Servicer hereunder if it determines that its duties hereunder are no
longer permissible under applicable law or are in material conflict by reason of
applicable law with any other activities carried on by it and cannot be cured,
provided that such determination shall be evidenced by an Opinion of Counsel
(which shall be Independent) to such effect delivered to the Owner Trustee, the
Indenture Trustee and the Securities Insurer. In addition, the Master Servicer
may resign for any reason with 30 day's prior written notice to the Owner
Trustee, the Indenture Trustee and the Securities Insurer. No resignation of the
Master Servicer shall become effective until a successor master servicer
acceptable to the Securities Insurer shall have assumed the obligations of the
Master Servicer hereunder.

            (g) Limitation on Liability of the Depositor and the Master
Servicer. Except as set forth in Section 9.01 herein, neither the Depositor nor
the Master Servicer nor any of the directors, officers, employees or agents of
the Depositor or the Master Servicer shall be under any liability to the Owner
Trustee, the Indenture Trustee, the Servicer, the Securities Insurer, the
Noteholders or any other Person for any action taken or for refraining from the
taking of any action at the direction of the Securities Insurer or any action in
good faith pursuant to this Agreement, or for errors in judgment; provided,
however, that this provision shall not protect the Depositor or the Master
Servicer or any such Person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence in its
performance of its duties or by reason of reckless disregard for its obligations
and duties under this Agreement. The Depositor or the Master Servicer and any
directors, officer, employee or agent of the Depositor or the Master Servicer
may rely in good faith on any document of any kind prima facie properly executed
and submitted by any Person respecting any matters arising hereunder.

            (h) Monthly Advances. If any Obligor fails to make all or any
portion of its Monthly Payment for any Due Period by the related Determination
Date, the Master Servicer shall deposit such shortfall (net of the Servicing Fee
and the Master Servicer Fee in respect thereof) into the Collection Account on
or before such Determination Date, unless the Master Servicer, in its reasonable
judgment, determines that any such Monthly Advance would be non-recoverable from
future proceeds from the related Home Loan. The Indenture Trustee shall make any
Monthly Advance that the Master Servicer fails to make. The Indenture Trustee
shall be reimbursed for funds so advanced out of Master Servicing Compensation
on subsequent Payment Dates.

            (i) Three Month Renewal of Master Servicer Term. The Master Servicer
hereby covenants and agrees to act as master servicer under this Agreement for
an initial term commencing on the Closing Date and expiring on _______, 200_
(the "Initial Term"). Thereafter, the Initial Term shall be extendible in the
sole discretion of the Securities Insurer by written notice (each, a "Master
Servicer Renewal Notice") of the Securities Insurer (or the Indenture Trustee if
a Securities Insurer Default is then occurring) for successive three month
terms. Each such Master Servicer Renewal Notice (if any) shall be delivered by
the Securities Insurer to the other parties to this Agreement. The Master
Servicer hereby agrees that, as of the date hereof and upon its receipt of any
Master Servicer Renewal Notice, the Master Servicer shall be bound for the
duration of the Initial Term and the term covered by any such Master Servicer
Renewal Notice to act as the Master Servicer, subject to and in accordance with
the other provisions of this Agreement. The Master Servicer agrees that if, as
of the last day of the

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<PAGE>

calendar month preceding the last day of any such servicing term, the Master
Servicer shall not have received a Master Servicer Renewal Notice from the
Securities Insurer, the Master Servicer shall, within five days thereafter, give
written notice of such non-receipt to the Securities Insurer and the Indenture
Trustee. The failure of the Securities Insurer to deliver a Master Servicer
Renewable Notice by the end of any such three-month term shall result in the
automatic termination of the Master Servicer.

            (j) Non-renewal or Termination. Upon any non-renewal or termination
of the Master Servicer pursuant to this Section 4.01, the master servicing of
the Home Loans hereunder shall be transferred to a successor master servicer in
accordance with the terms hereof.

            (k) Compensating Interest. If Compensating Interest is owing with
respect to such Payment Date, then the Master Servicer shall cause the Servicer
to direct Compensating Interest, up to the amount of the sum of the Master
Servicer Fee and the Servicing Fee for such Payment Date, into the Collection
Account on or before the related Determination Date. The Master Servicer shall
fund the payment of Compensating Interest on any Payment Date first out of its
Master Servicer Compensation for the related Payment Date, and if and only if
such amount is not sufficient, shall cause any remaining amounts to be paid out
of the Servicing Fee for the related Payment Date. Any Servicing Fees used to
pay Compensating Interest hereunder shall be repaid to the Servicer through the
payment of Servicing Fee Recovery Amounts.

            Section 4.02 Interim Servicer. Until the transfer of servicing to
the initial Servicer on the "servicing transfer date" as specified in the
Servicing Agreement, the Master Servicer agrees, and the Issuer,
Securityholders, the Security Insurer and the Indenture Trustee hereby assign
and appoint the Master Servicer as the Servicer of the Home Loans. The Master
Servicer shall be obligated to act as the Servicer of the Home Loans and agrees
to service the Home Loans in accordance with Accepted Servicing Procedures until
the transfer of servicing to the Servicer. During the period in which the Master
Servicer is acting as servicer, it shall be entitled to any Servicing Fee earned
during such period.

            Section 4.03 Powers of Attorney. The Indenture Trustee shall
execute, at the written direction of the Servicer or the Master Servicer, any
limited or special powers of attorney and other documents reasonably acceptable
to the Indenture Trustee to enable the Servicer or the Master Servicer to carry
out their servicing and administrative duties hereunder, including, without
limitation, limited or special powers of attorney with respect to any
Foreclosure Property, and the Indenture Trustee shall not be accountable for the
actions of the Servicer or the Master Servicer under such powers of attorney and
shall be indemnified by the Master Servicer in accordance with Section 9.01
hereof.

            Section 4.04 Filing of Continuation Statements. On or before the
fifth (or twelfth, as appropriate) anniversary of the filing of any financing
statements by the Transferor and the Depositor, respectively, with respect to
the assets conveyed to the Owner Trustee or to the Owner Trust, the Transferor
and the Depositor shall prepare, have executed by the necessary parties and file
in the proper jurisdictions at their expense all financing and continuation
statements necessary to maintain the liens, security interests and priorities of
such liens and security interests that have been granted by the Transferor and
the Depositor, respectively, the Transferor and the Depositor shall continue to
file on or before each fifth (or twelfth) anniversary

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<PAGE>

of the filing of any financing and continuation statements such additional
financing and continuation statements until the Trust has terminated pursuant to
Section 9.1 of the Owner Trust Agreement. The Indenture Trustee and Owner
Trustee agree to cooperate with the Transferor and the Depositor in preparing,
executing and filing such statements. The filing of any such statement with
respect to the Transferor and the Depositor shall not be construed as any
indication of an intent of any party contrary to the expressed intent set forth
in Section 2.03 hereof and Section 2.04 of the Home Loan Purchase Agreement. If
the Transferor or the Depositor has ceased to do business whenever any such
financing and continuation statements must be filed or the Transferor or the
Depositor fails to file any such financing statements or continuation statements
at least one month prior to the expiration thereof, each of the Transferor and
the Depositor does hereby make, constitute and appoint the Owner Trustee its
attorney-in-fact, with full power and authority, to execute and file in its name
and on its behalf any such financing statements or continuation statements
required under this Section 4.04 relating to assets conveyed to the Owner
Trustee and the Depositor does hereby make, constitute and appoint the Indenture
Trustee its attorney-in-fact, with full power and authority, to execute and file
in its name and on its behalf any such financing statements or continuation
statements required under this Section 4.04 relating to assets conveyed to the
Owner Trust.

            Section 4.05 Reports to the Securities and Exchange Commission. The
Indenture Trustee shall, on behalf of the Issuer, cause to be filed with the
Securities and Exchange Commission all monthly reports on Form 8-K and annual
reports on Form 10-K by EDGAR electronic format (or any successor format)
required to be filed under the provisions of the Securities Exchange Act of
1934, as amended, and the rules and regulations of the Securities and Exchange
Commission thereunder. The Indenture Trustee shall obtain on behalf of the
Issuer, EDGAR access codes (or any successor codes) on behalf of the Issuer
required for filing with the Securities and Exchange Commission. Upon the
request of the Indenture Trustee, each of the Servicer, the Master Servicer and
the Transferor shall cooperate with the Indenture Trustee in the preparation of
any such report and shall provide to the Indenture Trustee in a timely manner
all such information or documentation as the Indenture Trustee may reasonably
request in connection with the performance of its duties and obligations under
this Section 4.05.

                                   ARTICLE V

                         ESTABLISHMENT OF TRUST ACCOUNTS

            Section 5.01 Collection Account and Note Payment Account.

            (a) (1) Establishment of Collection Account. The Master Servicer,
for the benefit of the Securityholders, the Indenture Trustee and the Securities
Insurer, shall cause to be established and maintained by the Indenture Trustee
one or more Collection Accounts (collectively, the "Collection Account"), which
shall be separate Eligible Accounts and may be interest-bearing, and which shall
be entitled "Collection Account of _______________, as Indenture Trustee, in
trust for the _______ Home Loan Asset Backed Notes, Series 200_-_". The
Collection Account may be maintained with the Indenture Trustee or any other
depository institution, which satisfies the requirements set forth in the
definition of Eligible Account. The creation of any Collection Account other
than one maintained with the Indenture Trustee shall be evidenced by a letter
agreement between the Servicer and the depository institution acceptable to

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the Indenture Trustee and the Securities Insurer. A copy of such letter
agreement shall be furnished to the Securities Insurer and the Indenture
Trustee. Funds in the Collection Account shall be invested in accordance with
Section 5.03 hereof. The Collection Account shall be established, as of the
Closing Date, with ________________ as an Eligible Account pursuant to the
definition thereof. The Collection Account may, upon written notice to the
Indenture Trustee, and upon the written consent of the Securities Insurer, be
transferred to a different depository institution so long as such transfer is to
an Eligible Account acceptable to the Securities Insurer.

            (2) Establishment of Note Payment Account. No later than the Closing
Date, the Indenture Trustee, for the benefit of the Noteholders and the
Securities Insurer, shall cause to be established and maintained with the
Indenture Trustee one or more Note Payment Accounts (collectively, the "Note
Payment Account"), which shall be separate Eligible Accounts and may be
interest-bearing, and which shall be entitled "Note Payment Account of
________________, as Indenture Trustee, in trust for the _______ Home Loan Asset
Backed Notes, Series 200_-_". Funds in the Note Payment Account shall be
invested in accordance with Section 5.03 hereof.

            (b) (1) Deposits to Collection Account. The Servicer shall use its
best efforts to deposit or cause to be deposited (without duplication), within
one (1) Business Day after receipt thereof, into the Collection Account and
retain therein in trust for the benefit of the Noteholders and the Securities
Insurer:

            (i) all payments of principal and interest on the Home Loans
      collected after the Cut-Off Date;

            (ii) all Net Liquidation Proceeds;

            (iii) all Property Insurance Proceeds;

            (iv) all Released Mortgaged Property Proceeds;

            (v) any amounts payable in connection with the repurchase of any
      Home Loan and the amount of any Substitution Adjustment pursuant to
      Section 3.05 hereof;

            (vi) the deposit of the Termination Price under Section 11.01
      hereof;

            (vii) interest and gains on funds held in the Collection Account;

            (viii) Monthly Advances pursuant to Section 4.02(h) hereof; and

            (ix) Compensating Interest pursuant to Section 4.02(k) hereof.

            The Servicer shall be entitled to retain and not deposit into the
Collection Account any amounts received with respect to a Home Loan that
constitute additional servicing compensation pursuant to Section 7.03 hereof.

            (2) Deposits to Note Payment Account. By the close of business on
the fourth Business Day prior to each Payment Date, the Master Servicer shall
cause the Servicer to

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<PAGE>

withdraw from the Collection Account the Available Collection Amount and deposit
such into the Note Payment Account for such Payment Date.

            (3) Withdrawals from Collection Account. The Master Servicer shall
cause the Servicer to also make the following withdrawals from the Collection
Account, in no particular order of priority:

            (i) to withdraw any amount not required to be deposited in the
      Collection Account or deposited therein in error;

            (ii) to withdraw any Servicing Advance Reimbursement Amounts and
      Monthly Advance Reimbursement Amounts; and

            (iii) to clear and terminate the Collection Account in connection
      with the termination of this Agreement.

            (c) Initial Withdrawals from Note Payment Account. To the extent
funds are available in the Note Payment Account, the Indenture Trustee (based on
the information provided by the Servicer contained in the Servicer's Monthly
Remittance Report for such Payment Date) shall make withdrawals therefrom by
9:00 a.m. (New York City time) on each Payment Date, for application in the
following order of priority:

            (i) to distribute on such Payment Date the following amounts related
      to such Payment Date pursuant to the Indenture in the following order; (1)
      to the Indenture Trustee, an amount equal to the Indenture Trustee Fee and
      all unpaid Indenture Trustee Fees from prior Payment Dates; (2) to the
      Servicer an amount equal to the Servicing Compensation (net of the sum of
      any amounts retained prior to deposit into the Collection Account pursuant
      to subsection (b)(1) above) and all unpaid Servicing Compensation from
      prior Payment Dates; (3) to the Master Servicer an amount equal to the
      Master Servicer Compensation and all unpaid Master Servicer Compensation
      from prior Payment Dates; and (4) to the Securities Insurer, an amount
      equal to the Guaranty Insurance Premium and all unpaid Guaranty Insurance
      Premiums from prior Payment Dates; and

            (ii) subject to the priority of payments in Subsections 5.01(d) and
      (e) below, to deposit into the Certificate Distribution Account the
      applicable portions of the Available Payment Amount payable to the holders
      of the Residual Interest Certificates as calculated pursuant to Subsection
      5.01(e) below on such Payment Date.

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<PAGE>

            (d) Regular Payment Amount Withdrawals from Note Payment Account. On
each Payment Date, the Indenture Trustee (based on the information provided by
the Servicer contained in the Servicer's Monthly Remittance Report for such
Payment Date) shall distribute the Regular Payment Amount and any Deficiency
Amount paid by the Securities Insurer in respect of such Payment Date from the
Note Payment Account (in the case of all amounts distributable to Noteholders)
and from the Certificate Distribution Account (in the case of all amounts
distributable to Certificateholders), in the following order of priority:

            (i) to pay the holders of the Notes the Noteholders' Interest
      Payment Amount for such Payment Date;

            (ii) to pay the holders of the Notes principal thereof in an amount
      up to the sum of the Regular Principal Payment Amount and the Noteholders'
      Principal Deficiency Amount, until the Note Principal Balances thereof are
      reduced to zero;

            (iii) to apply any remaining amount together with Excess Spread in
      the manner specified in Subsection (e) below.

            (e) Excess Spread Withdrawals from Note Payment Account. On each
Payment Date, the Indenture Trustee (based on the information provided by the
Servicer contained in the Servicer's Monthly Remittance Report for such Payment
Date) shall distribute the Excess Spread, if any, in the following order of
priority (in each case after giving effect to all payments specified in Section
5.01(d) hereof):

            (i) to pay the Securities Insurer in an amount up to the Securities
      Insurer Reimbursement Amount;

            (ii) to pay the holders of the Notes, as principal thereof, any
      remaining Excess Spread in an amount up to any Overcollateralization
      Deficiency Amount (after giving effect to payments made pursuant to
      subsection (d) above), until the Note Principal Balances thereof are
      reduced to zero;

            (iii) to pay the holder of the Notes, pro rata, the Noteholders'
      Interest Carry-Forward Amount due and unpaid, if any; and

            (iv) to pay any remaining Excess Spread (A) first, concurrently to
      the Servicer in an amount equal to any outstanding Nonrecoverable
      Servicing Advances and to the Master Servicer in an amount equal to any
      outstanding Nonrecoverable Monthly Advances, (B) second, to repay the
      Servicer the Servicing Fee Recovery Amount, if any and (C) then, for
      deposit into the Certificate Distribution Account for payment to the
      holders of the Residual Interest Certificates any amount remaining after
      the preceding clauses (A) and (B).

            (f) All payments made on the Notes on each Payment Date will be made
on a pro rata basis among the Noteholders of record of such Notes on the next
preceding Record Date, without preference or priority of any kind, and, except
as otherwise provided in the next sentence, shall be made by wire transfer of
immediately available funds to the account of such Noteholder, if such
Noteholder shall own of record Notes in original Denominations aggregating

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<PAGE>

at least $250,000 and shall have so notified the Indenture Trustee, and
otherwise by check mailed to the address of such Noteholder appearing in the
Notes Register. The final payment on each Note will be made in like manner, but
only upon presentment and surrender of such Note at the location specified in
the notice to Noteholders of such final payment.

            Section 5.01A Claims Under Guaranty Policy. (a) If, on the second
Business Day prior to the related Payment Date a Deficiency Amount exists, the
Indenture Trustee shall give notice to the Securities Insurer and to its
direction by telephone or telecopy of the amount of such deficiency by 12:00
noon, New York City time, on such Business Day.

            (b) At the time of the execution and delivery of this Agreement, and
for the purposes of this Agreement, the Indenture Trustee shall establish a
separate special purpose trust account for the benefit of the Noteholders called
the "Policy Payments Account" and over which the Indenture Trustee shall have
exclusive control and sole right of withdrawal. The Indenture Trustee shall
deposit any amount paid under the Guaranty Policy in the Policy Payments Account
and distribute such amount only for purposes of making the Insured Payments for
which a claim was made. Such amounts shall be disbursed by the Indenture Trustee
to Noteholders in the same manner as principal and interest payments are to be
made with respect to the Notes under Sections regarding payment of Notes hereof.
It shall not be necessary for such payments to be made by checks or wire
transfers separate from the check or wire transfer used to pay Insured Payments
with other funds available to make such payments. However, the amount of any
payment of principal of or interest on the Notes to be paid from the Policy
Payments Account shall be noted as provided in (d) below in the Payment
Statement to be furnished to Noteholders. Funds held in the Policy Payments
Account shall not be invested by the Indenture Trustee.

            (c) Any funds received by the Indenture Trustee as a result of any
claim under the Guaranty Policy shall be applied by the Indenture Trustee,
subject to Section 3.03 of the Indenture, together with the funds, if any, to be
withdrawn from the Note Payment Account, directly to the payment in full of the
Insured Payments due on the Notes (including Notes held for the Indenture
Trustee's own account). Funds received by the Indenture Trustee as a result of
any claim under the Guaranty Policy shall be deposited by the Indenture Trustee
in the Policy Payments Account and used solely for payment to the Noteholders
and may not be applied to satisfy any costs, expenses or liabilities of the
Indenture Trustee. Any funds remaining in the Policy Payments Account following
a Payment Date shall promptly be remitted to the Securities Insurer except for
funds held for the payment of Noteholders pursuant to Section 3.03 of the
Indenture.

            (d) The Indenture Trustee shall keep a complete and accurate record
of all funds deposited by the Securities Insurer into the Policy Payments
Account and the allocation of such funds to payment of interest on and principal
paid in respect of any Note. The Securities Insurer shall have the right to
inspect such records at reasonable times upon one Business Day's prior notice to
the Indenture Trustee.

            (e) Subject to and conditioned upon payment of any interest or
principal with respect to the Notes by or on behalf of the Securities Insurer,
the Indenture Trustee shall assign to the Securities Insurer all rights to the
payment of interest or principal on the Notes which are

                                      -53-

<PAGE>

then due to the extent of all payments made by the Securities Insurer and the
Securities Insurer may exercise any option, vote, right, power or the like with
respect to the Notes to the extent it has made a principal payment pursuant to
the Guaranty Policy. The Indenture Trustee agrees that the Securities Insurer
shall be subrogated to all of the rights to payment of the Noteholders or in
relation thereto to the extent that any payment of principal or interest was
made to such Holders with payments made under the Guaranty Policy by the
Securities Insurer.

            (f) In the event that the Indenture Trustee has received a certified
copy of an order of the appropriate court that any scheduled payment of
principal of or interest on a Note has been voided in whole or in part as a
Preference Amount, the Indenture Trustee shall so notify the Securities Insurer,
shall comply with the provisions of the Guaranty Policy to obtain payment by the
Securities Insurer of such voided scheduled payment, and shall, at the time it
provides notice to the Securities Insurer, notify, by mail to Noteholders that,
in the event that any Noteholder's scheduled payment is so recovered, such
Noteholders will be entitled to payment pursuant to the terms of the Guaranty
Policy, a copy of which shall be made available through the Indenture Trustee,
the Securities Insurer or the fiscal agent, if any, and the Indenture Trustee
shall furnish to the Securities Insurer or its fiscal agent, if any, its records
evidencing the payments of principal of and interest on the Notes, if any, which
have been made by the Indenture Trustee and subsequently recovered from
Noteholders, and the dates on which such payments were made.

            (g) The Indenture Trustee shall promptly notify the Securities
Insurer of either of the following as to which it has actual knowledge: (i) the
commencement of any proceeding by or against the Depositor or the Issuer
commenced under the United States Bankruptcy Code or any other applicable
bankruptcy, insolvency, receivership, rehabilitation or similar law (an
"Insolvency Proceeding") and (ii) the making of any claim in connection with any
Insolvency Proceeding seeking the avoidance as a preferential transfer (a
"Preference Claim") of any payment of principal of, or interest on, the Notes.
Each Noteholder, by its purchase of Notes, and the Indenture Trustee hereby
agree that, so long as a Securities Insurer Default shall not have occurred and
be continuing, the Securities Insurer may at any time during the continuation of
any Insolvency Proceeding direct all matters relating to such Insolvency
Proceeding, including, without limitation, (i) all matters relating to any
Preference Claim, (ii) the direction of any appeal of any order relating to any
Preference Claim at the expense of the Securities Insurer but subject to
reimbursement as provided in the Insurance Agreement and (iii) the posting of
any surety, supersedes or performance bond pending any such appeal. In addition,
and without limitation of the foregoing, as set forth (i) hereinbelow, the
Securities Insurer shall be subrogated to, and each Noteholder and the Indenture
Trustee hereby delegate and assign, to the fullest extent permitted by law the
rights of the Indenture Trustee and each Noteholder in the conduct of any
Insolvency Proceeding, including, without limitation, all rights of any party to
an adversary proceeding action with respect to any court under issued in
connection with any such Insolvency Proceeding.

            (h) The Indenture Trustee shall furnish to the Securities Insurer or
its fiscal agent its records evidencing the payments of principal of and
interest on the Notes which have been made by the Indenture Trustee and
subsequently recovered from Noteholders, and the dates on which such payments
were made.

                                      -54-

<PAGE>

            (i) Anything herein to the contrary notwithstanding, any payment
with respect to the principal of or interest on the Notes which is made with
moneys received pursuant to the terms of the Guaranty Policy shall not be
considered payment by the Issuer, shall not discharge the Issuer in respect of
its obligation to make such payment and shall not result in the payment of or
the provision for the payment of the principal of or interest on the Notes
within the meaning of Section 4.01 of the Indenture. The Issuer and the
Indenture Trustee acknowledge that without the need for any further action on
the part of the Securities Insurer, the Issuer, or the Indenture Trustee (i) to
the extent the Securities Insurer makes payments, directly or indirectly, on
account of principal of or interest on the Notes to the Noteholders, the
Securities Insurer will be fully subrogated to the rights of such Noteholders to
receive such principal and interest from the Issuer, and (ii) Noteholders shall
be paid such principal and interest in their capacity as Noteholders but only
from the sources and in the manner provided herein for the payment of such
principal and interest.

            Section 5.02 Certificate Distribution Account. (a) Establishment of
Certificate Distribution Account. No later than the Closing Date, the Master
Servicer, for the benefit of the Certificateholders, shall cause to be
established and maintained with the Indenture Trustee for the benefit of the
Owner Trustee, on behalf of the Issuer and the Certificateholders, one or more
Certificate Distribution Accounts (collectively, the "Certificate Distribution
Account"), which shall be separate Eligible Accounts and may be
interest-bearing, entitled "Certificate Distribution Account,
__________________, as Indenture Trustee, in trust for the _______ Home Loan
Owner Trust Series 200_-_". Funds in the Certificate Distribution Account shall
be invested in accordance with Section 5.03 hereof.

            (b) Deposits to and Distributions from Certificate Distribution
Account. On each Payment Date the Indenture Trustee shall withdraw from the Note
Payment Account all amounts required to be deposited into the Certificate
Distribution Account with respect to such Payment Date pursuant to Section
5.01(c)(ii) hereof and, on behalf of the Owner Trustee, shall deposit such
amounts into the Certificate Distribution Account. The Indenture Trustee shall
make payments of all remaining amounts on deposit in the Note Payment Account to
the holders of the Notes to the extent of amounts due and unpaid on the Notes
for principal thereof and interest thereon in accordance with Section 5.01(d)
and (e) hereof. The Indenture Trustee, on behalf of the Owner Trustee, shall
distribute all amounts on deposit in the Certificate Distribution Account to the
holders of the Residual Interest Certificates. The Indenture Trustee, on behalf
of the Owner Trustee, also shall withdraw from the Certificate Distribution
Account any amount not required to be deposited in the Certificate Distribution
Account or deposited therein in error.

            (c) Distributions on the Residual Interest Certificates. All
distributions made on the Residual Interest Certificates on each Payment Date
will be made pro rata among the holders of the Residual Interest Certificates of
record on the next preceding Record Date based on their percentage holdings in
the Residual Interest, without preference or priority of any kind, and, except
as otherwise provided in the next succeeding sentence, shall be made by wire
transfer of immediately available funds to the account of each such holder, if
such holder shall own of record a Residual Interest Certificate in an original
denomination aggregating at least a 50% holding of the Residual Interest and
shall have so notified the Indenture Trustee at least 5 Business Days prior
thereto, and otherwise by check mailed to the address of such Residual

                                      -55-

<PAGE>

Interest holder appearing in the Certificate Register. The final distribution on
each Residual Interest Certificate will be made in like manner, but only upon
presentment and surrender of such Residual Interest Certificate at the location
specified in the notice to holders of the Residual Interest Certificates of such
final distribution. Any amount distributed to the holders of the Residual
Interest Certificates on any Payment Date shall not be subject to any claim or
interest of holders of the other Notes.

            Section 5.03 Trust Accounts; Trust Account Property. (a) Control of
Trust Accounts. Each of the Trust Accounts (or interests therein) established
hereunder has been pledged by the Issuer to the Indenture Trustee under the
Indenture and shall be subject to the lien of the Indenture. In addition to the
provisions hereunder, each of the Trust Accounts shall also be established and
maintained pursuant to the Indenture. Amounts distributed from each Trust
Account in accordance with the Indenture and this Agreement shall be released
from the lien of the Indenture upon such distribution thereunder or hereunder.
Subject to Sections 5.01 and 5.02 hereof, the Indenture Trustee shall possess
all right, title and interest in and to all funds on deposit from time to time
in the Trust Accounts (other than the Certificate Distribution Account) and in
all proceeds thereof (including all income thereon) and all such funds,
investments, proceeds and income shall be part of the Trust Account Property and
the Trust Estate. If, at any time, any Trust Account ceases to be an Eligible
Account, the Indenture Trustee (or the Servicer on its behalf) shall, within ten
Business Days (or such longer period, not to exceed 30 calendar days, as to
which each Rating Agency and the Securities Insurer may consent) (i) establish a
new Trust Account as an Eligible Account, (ii) terminate the ineligible Trust
Account, and (iii) transfer any cash and investments from such ineligible Trust
Account to such new Trust Account.

            With respect to the Trust Accounts (other than the Certificate
Distribution Account), the Indenture Trustee agrees, by its acceptance hereof,
that each such Trust Account shall be subject to the sole and exclusive custody
and control of the Indenture Trustee for the benefit of the Securityholders, the
Securities Insurer and the Issuer, as the case may be, and the Indenture Trustee
shall have sole signature and withdrawal authority with respect thereto.

            In addition to this Agreement and the Indenture, the Certificate
Distribution Account established hereunder shall also be subject to and
established and maintained in accordance with the Owner Trust Agreement. Subject
to rights of the Indenture Trustee, the Noteholders and the Securities Insurer
hereunder and under the Indenture, the Owner Trustee shall possess for the
benefit of the Certificateholders and the Securities Insurer all right, title
and interest in all funds on deposit from time to time in the Certificate
Distribution Account and in all proceeds thereof (including all income thereon)
and all such funds, investments, proceeds and income shall be part of the Trust
Account Property and the Trust Estate. Subject to the rights of the Indenture
Trustee, the Noteholders and the Securities Insurer, the Owner Trustee agrees,
by its acceptance hereof, that such Certificate Distribution Account shall be
subject to the sole and exclusive custody and control of the Owner Trustee for
the benefit of the Issuer and the parties entitled to payments and distributions
therefrom, including, without limitation, the Certificateholders and the
Securities Insurer, and the Owner Trustee shall have sole signature and
withdrawal authority with respect to the Certificate Distribution Account.
Notwithstanding the preceding, the distribution of amounts from the Certificate
Distribution Account in accordance with Section 5.01(c)(ii) hereof shall also be
made for the benefit of the Indenture Trustee

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<PAGE>

(including without limitation with respect to its duties under the Indenture and
this Agreement relating to the Trust Estate), and the Indenture Trustee (in its
capacity as Indenture Trustee) shall have the right, but not the obligation, to
take custody and control of the Certificate Distribution Account and to cause
the distribution of amounts therefrom in the event that the Owner Trustee fails
to distribute such amounts in accordance with subsections (b) and (c) of Section
5.02.

            In accordance with Section 5.01 and 5.02 hereof, the Servicer or the
Master Servicer shall have the power, revocable by the Indenture Trustee or by
the Owner Trustee with the consent of the Indenture Trustee, to instruct the
Indenture Trustee or Owner Trustee to make withdrawals and payments from the
Trust Accounts for the purpose of permitting the Servicer, the Master Servicer
or the Issuer to carry out their respective duties hereunder or permitting the
Indenture Trustee or Owner Trustee to carry out their respective duties herein
or under the Indenture or the Owner Trust Agreement, as applicable.

            (1) Investment of Funds. So long as no Master Servicer Event of
Default shall have occurred and be continuing, the funds held in any Trust
Account may be invested (to the extent practicable) in Permitted Investments, as
directed by the Master Servicer. Any directions for investment of funds in any
Trust Account shall be made in writing or by telephone or facsimile transmission
with confirmation in writing. In any case, funds in any Trust Account must be
available for withdrawal without penalty, and any Permitted Investments must
mature or otherwise be available for withdrawal, not later than the Business Day
immediately preceding the Payment Date next following the date of such
investment and shall not be sold or disposed of prior to its maturity subject to
subsection (a)(2) of this Section. All interest and any other investment
earnings on amounts or investments held in any Trust Account shall be deposited
into such Trust Account immediately upon receipt by the Indenture Trustee. All
Permitted Investments in which funds in any Trust Account (other than the
Certificate Distribution Account) are invested must be held by or registered in
the name of ______________, as Indenture Trustee, in trust for the _________
Home Loan Asset Backed Notes, Series 200_-_. While the Indenture Trustee holds
the Certificate Distribution Account, on behalf of the Owner Trustee, all
Permitted Investments in which funds in the Certificate Distribution Account are
invested shall be held by or registered in the name _______________, on behalf
of the Owner Trustee, in trust for the _________ Home Loan Asset Backed Notes,
Series 200_-_.

            (2) Insufficiency and Losses in Trust Accounts. If any amounts are
needed for disbursement from any Trust Account held by or on behalf of the
Indenture Trustee and sufficient uninvested funds are not available to make such
disbursement, the Indenture Trustee shall cause to be sold or otherwise
converted to cash a sufficient amount of the investments in such Trust Account.
The Indenture Trustee shall not be liable for any investment loss or other
charge resulting therefrom, unless such loss or charge is caused by the failure
of the Indenture Trustee or Owner Trustee, respectively, to perform in
accordance with this Section 5.03 hereof or the Indenture Trustee is the obligor
under the Permitted Investment and has defaulted thereon.

            If any losses are realized in connection with any investment in any
Trust Account pursuant to this Agreement and the Indenture, then the Master
Servicer shall deposit the amount of such losses (to the extent not offset by
income from other investments in such Trust Account) into such Trust Account
immediately upon the realization of such loss. All interest and any other
investment earnings on amounts held in any Trust Account shall be the income of
the Issuer (or,

                                      -57-

<PAGE>

when there is a single beneficial owner of a Residual Interest Certificate, such
owner), and for federal and state income tax purposes the Issuer (or such single
beneficial owner) shall be the owner (or beneficial owner in the case of the
Collection Account).

            (b) No Liability for Losses. Subject to Section 6.01 of the
Indenture, the Indenture Trustee shall not in any way be held liable by reason
of any insufficiency in any Trust Account held by the Indenture Trustee
resulting from any investment loss on any Permitted Investment included therein
(except to the extent that the Indenture Trustee is the obligor and has
defaulted thereon).

            (c) Delivery of Trust Account Property. With respect to the Trust
Account Property, the Indenture Trustee acknowledges and agrees that:

                  (1) any Trust Account Property that is held in deposit
      accounts shall be held solely in the Eligible Accounts; and each such
      Eligible Account shall be subject to the sole and exclusive dominion,
      custody and control of the Indenture Trustee; [and, without limitation on
      the foregoing, the Indenture Trustee shall have sole signature authority
      with respect thereto;]

                  (2) any Trust Account Property that constitutes property
      within clause (a) of the definition of "Delivery" in Section 1.1 hereof
      shall be delivered to and maintained by the Indenture Trustee in
      accordance with the definition of "Delivery" in Section 1.1 hereof and
      shall be held, pending maturity or disposition, solely by or on behalf of
      the Indenture Trustee; and

                  (3) any Trust Account Property that is a book-entry security
      held through the Federal Reserve System pursuant to federal book-entry
      regulations shall be delivered to and maintained by the Indenture Trustee
      in accordance with the definition of "Delivery" in Section 1.1 hereof.

            Section 5.04 Allocation of Losses. In the event that Net Liquidation
Proceeds, Property Insurance Proceeds or Released Mortgaged Property Proceeds on
a Liquidated Home Loan are less than the related Principal Balance plus accrued
interest thereon, or any Obligor makes a partial payment of any Monthly Payment
due on a Home Loan, such Net Liquidation Proceeds, Property Insurance Proceeds,
Released Mortgaged Property Proceeds or partial payment shall be applied to
payment of the related Debt Instrument, first, to interest accrued at the Home
Loan Interest Rate and, then, to principal.

                                   ARTICLE VI

                       STATEMENTS AND REPORTS; WITHHOLDING

            Section 6.01 Statements. (a) No later than each Determination Date,
the Master Servicer shall cause the Servicer to deliver to the Indenture Trustee
and the Master Servicer by facsimile, the receipt and legibility of which shall
be confirmed by telephone, and with hard copy thereof to be delivered no later
than one (1) Business Day after such Determination Date, the Servicer's Monthly
Remittance Report, setting forth the date of such Report (day, month and

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<PAGE>

year), the name of the Issuer (i.e., "________ Home Loan Owner Trust 200_-_"),
the Series designation of the Notes (i.e., "Series 200_-_") and the date of this
Agreement, all in substantially the form set out in Exhibit B hereto.
Furthermore, Master Servicer shall cause the Servicer to deliver to the Master
Servicer and the Indenture Trustee no later than each Determination Date, a
magnetic tape or computer disk providing such information regarding the
Servicer's activities in servicing the Home Loans during the related Due Period
as the Indenture Trustee or the Master Servicer may reasonably require. The
Master Servicer shall also cause the Servicer to deliver any Loan Liquidation
Reports pursuant to Section 4.10(a) hereof.

            (b) On each Payment Date, Indenture Trustee shall distribute, based
on information provided by the Servicer, a monthly statement (the "Payment
Statement") to the Depositor, the Securities Insurer, the Master Servicer, the
Securityholders and the Rating Agencies, stating the date of original issuance
of the Notes (day, month and year), the name of the Issuer (i.e., "_______ Home
Loan Owner Trust 200_-_"), the Series designation of the Notes (i.e., "Series
200_-_"), the date of this Agreement and the following information:

                  (1) the Available Collection Amount, Available Payment Amount,
      the Regular Payment Amount and the Excess Spread for the related Payment
      Date;

                  (2) the Note Principal Balance of the Notes before and after
      giving effect to payments made to the holders of such Notes on such
      Payment Date, and the Pool Principal Balance as of the first and last day
      of the related Due Period;

                  (3) the Note Factor with respect to the Notes then
      outstanding;

                  (4) the amount of principal, if any, and interest to be
      distributed to the Notes on the related Payment Date;

                  (5) the Note Interest Rate and Noteholders' Interest
      Carry-Forward Amount, if any, on the related Payment Date;

                  (6) as of such Payment Date, the Overcollateralization Amount,
      the Overcollateralization Target Amount and any Overcollateralization
      Deficiency Amount or any Overcollateralization Reduction Amount, and any
      such amount to be distributed to the Noteholders or the holders of the
      Residual Interest on such Payment Date;

                  (7) the Master Servicer Compensation, the Servicing
      Compensation, the Indenture Trustee Fee, and the Guaranty Insurance
      Premium, for such Payment Date;

                  (8) as of such Payment Date, the Net Loan Losses incurred
      during the related Due Period, the cumulative Net Loan Losses as of such
      Payment Date;

                  (9) the weighted average maturity of the Home Loans and the
      weighted average Home Loan Interest Rate of the Home Loans;

                  (10) the number of and aggregate Principal Balance of all Home
      Loans in foreclosure proceedings and the percent of the aggregate
      Principal Balances of such

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      Home Loans to the aggregate Principal Balances of all Home Loans, all as
      of the close of business on the last day of the related Due Period;

                  (11) the number of and the aggregate Principal Balance of the
      Home Loans in bankruptcy proceedings and the percent of the aggregate
      Principal Balances of such Home Loans to the aggregate Principal Balances
      of all Home Loans, all as of the close of business on the last day of the
      related Due Period;

                  (12) the number of Foreclosure Properties, the aggregate
      Principal Balance of the related Home Loans, the book value of such
      Foreclosure Properties and the percent of the aggregate Principal Balances
      of such Home Loans to the aggregate Principal Balances of all Home Loans,
      all as of the close of business on the last day of the related Due Period;

                  (13) during the related Due Period (and cumulatively, from the
      Closing Date through the most current Due Period), the number and
      aggregate Principal Balance of Home Loans for each of the following: (A)
      that became Defaulted Home Loans, (B) that became Liquidated Home Loans,
      (C) that became Deleted Home Loans pursuant to Section 3.05 hereof as a
      result of such Deleted Home Loans being Defective Home Loans, and (D) that
      became Deleted Home loans pursuant to Section 3.05 hereof as a result of
      such Deleted Home Loans being Defaulted Home Loans or a Home Loan in
      default or imminent default;

                  (14) the scheduled principal payments and the principal
      prepayments received with respect to the Home Loans during the Due Period;

                  (15) the number and aggregate Principal Balance of Home Loans
      that were 30, 60 or 90 days Delinquent as of the close of business on the
      last day of the related Due Period and the Six Month Average Delinquency,
      the Three-Month Average Annualized Losses and the cumulative Realized
      Losses;

                  (16) the amount of any Insured Payment included in the amounts
      distributed to the Noteholders on such Payment Date; and

                  (17) the amount of any Securities Insurer Reimbursement Amount
      to be paid to the Securities Insurer on such Payment Date and the amount
      of any Securities Insurer Reimbursement Amount remaining unsatisfied
      following such payment.

            In the case of information furnished to Noteholders pursuant to
subclause (b)(4) of this Section 6.01, the amounts shall be expressed as a
dollar amount per Note with a $1,000 Denomination.

            All reports prepared by the Indenture Trustee of the withdrawals
from and deposits in the Collection Account will be based in whole or in part
upon the information provided to the Indenture Trustee by the Servicer, and the
Indenture Trustee may fully rely upon and shall have no liability with respect
to such information provided by the Servicer. In no event shall the Indenture
Trustee be obligated to provide information required pursuant to this

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Section 6.01(b) if it has not timely received the necessary information form the
Servicer to provide such information.

            (c) Within a reasonable period of time after the end of each
calendar year, the Indenture Trustee shall prepare and distribute to each Person
who at any time during the calendar year was a Noteholder such information as is
reasonably necessary to provide to such Person a statement containing the
information set forth in subclause (b) of this Section 6.01, aggregated for such
calendar year or applicable portion thereof during which such Person was a
Noteholder.

            (d) On each Payment Date, the Indenture Trustee shall forward to The
Depository Trust Company and to the holders of the Residual Interest
Certificates a copy of the Payment Statement in respect of such Payment Date and
a statement setting forth the amounts actually distributed to such holders of
the Residual Interest Certificates on such Payment Date, together with such
other information as the Indenture Trustee deems necessary or appropriate.

            (e) Within a reasonable period of time after the end of each
calendar year, the Indenture Trustee shall prepare and distribute to each Person
who at any time during the calendar year was a holder of Residual Interest
Certificates, if requested in writing by such Person, a statement containing the
information provided pursuant to the previous paragraph aggregated for such
calendar year or applicable portion thereof during which such Person was a
holder of Residual Interest Certificates.

            (f) The Indenture Trustee shall forward to each Noteholder and each
holder of a Residual Interest Certificate, during the term of this Agreement,
such periodic, special or other reports, including information tax returns or
reports required with respect to the Notes and the Residual Interest
Certificates, as shall be necessary, reasonable, or appropriate with respect to
the Noteholders or the holders of Residual Interest Certificates, or otherwise
with respect to the purposes of this Agreement, all such reports or information
in the case of the Residual Interest Certificates to be provided by and in
accordance with such applicable instructions and directions as the Majority
Residual Interestholders may reasonably require.

            (g) The Master Servicer promptly shall notify each Rating Agency if
the Securities Insurer waives or changes the Overcollateralization Target
Amount, the OC Trigger Increase Event, the Spread Squeeze Amount or the Step
Down Test.

            (h) Reports and computer tapes furnished by the Servicer and the
Indenture Trustee, to the Master Servicer and the Securities Insurer pursuant to
this Agreement shall be deemed confidential and of a proprietary nature and
shall not be copied or distributed except in connection with the purposes and
requirements of this Agreement. No Person entitled to receive copies of such
reports or tapes shall use the information therein for the purpose of soliciting
the customers of the Transferor or the Servicer or for any other purpose except
as set forth in this Agreement.

            Section 6.02 Withholding. The Indenture Trustee shall comply with
all requirements of the Code, and applicable state and local laws, with respect
to the withholding from any payments made to any Noteholder of any applicable
withholding taxes imposed thereon and with respect to any applicable reporting
requirements in connection therewith,

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<PAGE>

giving due effect to any applicable exemptions from such withholding and
effective certifications or forms provided by the recipient. Any amounts
withheld pursuant to this Section 6.02 shall be deemed to have been paid to the
Noteholders for all purposes of this Agreement or the Indenture.

                                  ARTICLE VII

                          GENERAL SERVICING PROCEDURES

            Section 7.01 Servicing Advances. The Master Servicer shall cause the
Servicer to make Servicing Advances under Section 6.7 of the Servicing
Agreement. The Indenture Trustee shall make any Servicing Advance that the
Servicer fails to make. The Indenture Trustee shall be reimbursed for funds so
advanced out of Servicing Compensation on subsequent Payment Dates.

            Section 7.02 Release of Home Loan Files(a) . If with respect to any
Home Loan:

            (i) the outstanding Principal Balance of such Home Loan plus all
      interest accrued thereon shall have been paid;

            (ii) the Servicer shall have received, in escrow, payment in full of
      such Home Loan in a manner customary for such purposes;

            (iii) such Home Loan has become a Defective Loan and has been
      repurchased or a Qualified Substitute Home Loan has been conveyed to the
      Owner Trustee pursuant to Section 3.05 hereof;

            (iv) such Home Loan or the related Foreclosure Property has been
      sold in connection with the termination of the Issuer pursuant to Section
      11.01 hereof; or

            (v) such Home Loan is a Defaulted Home Loan or a Liquidated Home
      Loan that is liquidated or disposed of or the related Foreclosure Property
      has been sold.

then in each such case, an Officer's Certificate of the Servicer pursuant to
Section 4.5 of the Servicing Agreement to the effect that the Servicer has
complied with all of its obligations under this Agreement and the Servicing
Agreement with respect to such Home Loan and requesting that the Custodian
release to the Servicer the related Indenture Trustee's Home Loan File. Upon the
receipt of such Officer's Certificate, the Custodian shall, within five Business
Days or such shorter period as may be required by applicable law, release, or
cause the applicable Custodian to release (unless such Indenture Trustee's Home
Loan File has previously been released), the related Indenture Trustee's Home
Loan File to the Servicer and execute and deliver such instruments of transfer
or assignment, in each case without recourse, as shall be necessary to vest
ownership of such Home Loan in the Servicer or such other Person as may be
specified in such certificate, the forms of any such instrument to be appended
to such certificate.

            (b) If a temporary release of the Indenture Trustee's Home Loan File
is necessary or appropriate for the servicing (which may include any
modification or foreclosure) of any Home Loan, then upon the request of the
Servicer pursuant to Section 3(b) of the

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<PAGE>

Custodial Agreement the Custodian shall release the related Indenture Trustee's
Home Loan File (or any requested portion thereof) to the Servicer.

            Section 7.03 Servicing Compensation As compensation for its services
under the Servicing Agreement, the Servicer shall be entitled to receive from
the Collection Account the Servicing Fee, out of which the Servicer shall pay
any subservicing fees to any subservicer. Additional servicing compensation in
the form of assumption fees, 80% of late charges collected, modification fees,
and other administrative fees, insufficient funds charges shall be part of the
Servicing Compensation payable to the Servicer hereunder and under Section 8.1
of the Servicing Agreement and shall be paid either by the Servicer retaining
such additional servicing compensation prior to deposit in the Collection
Account pursuant to Section 5.01(b)(1) hereof or, if deposited in the Collection
Account, as part of the Servicing Compensation withdrawn from the Collection
Account or Note Payment Account.

            The Servicer shall be required to pay all expenses incurred by it in
connection with its servicing activities hereunder and under the Servicing
Agreement and shall not be entitled to reimbursement therefor except as
specifically provided for herein or in Section 8.1 thereof.

            Section 7.04 Statement as to Compliance and Financial Statements.
The Master Servicer will deliver or cause to be delivered to the Indenture
Trustee, the Owner Trustee, the Depositor, the Securities Insurer, the Master
Servicer and the Rating Agencies not later than 90 days following the end of
each fiscal year of the Servicer (beginning with the fiscal year 200_), an
Officer's Certificate, required under Section 7.2 of the Servicing Agreement,
stating that (i) a review of the activities of the Servicer during the preceding
year and of performance under this Agreement and the Servicing Agreement has
been made under such officer's supervision and (ii) to the best of such
officer's knowledge, based on such review, the Servicer has fulfilled all of its
obligations under this Agreement and the Servicing Agreement throughout such
year, or, if there has been a default in the fulfillment of any such obligation,
specifying each such default known to such officer and the nature and status
thereof and what action the Servicer proposes to take with respect thereto.

            Contemporaneously with the submission of the Officer's Certificate
required by the preceding paragraph, the Master Servicer shall deliver or cause
to be delivered to the Indenture Trustee, the Securities Insurer, the Master
Servicer and the Owner Trustee a copy of the Servicer's annual audited financial
statements prepared in the ordinary course of business. The Master Servicer
shall, upon the request of the Depositor, deliver to such party any unaudited
quarterly financial statements of the Servicer.

            The Master Servicer shall also cause the Servicer to furnish and
certify to the requesting party such other information as to (i) the Servicer's
organization, activities and personnel relating to the performance of the
obligations of the Servicer hereunder, (ii) the Servicer's financial condition,
(iii) the Home Loans and (iv) the performance of the obligations of any
subservicer under the any subservicing agreements, in each case as the Indenture
Trustee, the Owner Trustee, the Master Servicer, the Securities Insurer or the
Depositor may reasonably request from time to time.

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<PAGE>

            Section 7.05 Independent Public Accountants' Servicing Report. Not
later than 90 days following the end of each fiscal year of the Servicer
(beginning with fiscal year 200_), the Master Servicer shall require that the
Servicer comply with Section 7.3 of the Servicing Agreement and cause any
nationally recognized firm of Independent Certified Public Accountants (which
may also render other services to the Servicer) to furnish a statement to the
Indenture Trustee, the Owner Trustee, the Rating Agencies, the Securities
Insurer, the Master Servicer and the Depositor to the effect that such firm has
examined certain documents and records relating to the servicing of the Home
Loans under this Agreement, the Servicing Agreement or of mortgage loans under
pooling or sale and servicing agreements (including the Home Loans and this
Agreement) substantially similar to one another (such statement to have attached
thereto a schedule setting forth the pooling or sale and servicing agreements
covered thereby) and that, on the basis of such examination conducted
substantially in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or the Audit Program for Mortgages serviced for FHLMC, such
firm confirms that such servicing has been conducted in compliance with such
pooling or sale and servicing agreements except for such significant exceptions
or errors in records that, in the opinion of such firm, the Uniform Single
Attestation Program for Mortgage Bankers or the Attestation Program for
Mortgages serviced for FHLMC requires it to report, each of which errors and
omissions shall be specified in such statement. In rendering such statement,
such firm may rely, as to matters relating to direct servicing of mortgage loans
by subservicers, upon comparable statements for examinations conducted
substantially in compliance with the Uniform Single Attestation Program for
Mortgage Bankers or the Audit Program for Mortgages serviced for FHLMC (rendered
within one year of such statement) of independent public accountants with
respect to the related subservicer.

            Section 7.06 Reports to the Indenture Trustee; Collection Account
Statements. If the Collection Account is not maintained with the Indenture
Trustee, then not later than 25 days after each Record Date, the Master Servicer
shall cause the Servicer to forward to the Indenture Trustee, the Securities
Insurer and the Master Servicer, a statement, certified by a Servicing Officer,
setting forth the status of the Collection Account as of the close of business
on the preceding Record Date and showing, for the period covered by such
statement, the aggregate of deposits into the Collection Account for each
category of deposit specified in Section 5.01(b)(1) hereof, the aggregate of
withdrawals from the Collection Account for each category of withdrawal
specified in Section 5.01(b)(2) and (3) hereof, in each case, for the related
Due Period.

            Section 7.07 Financial Statements and Records of Servicer. The
Master Servicer shall require that the Servicer agree to provide the books,
records or information, and/or access thereto, of the types required of the
Master Servicer in Sections 9.07 and 9.08 herein, to the Indenture Trustee, the
Owner Trustee, the Depositor, the Securities Insurer and each of their
respective agents, upon terms substantially similar to the terms set forth in
Sections 9.07 and 9.08.

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<PAGE>

                                  ARTICLE VIII

                                   (RESERVED)

                                   ARTICLE IX

                             THE MASTER SERVICER

            Section 9.01 Indemnification; Third Party Claims (a) The Master
Servicer shall indemnify the Transferor, the Owner Trustee, the Issuer, the
Depositor, the Securities Insurer and the Indenture Trustee (each an
"Indemnified Party") and hold harmless each of them against any and all claims,
losses, damages, penalties, fines, forfeitures, reasonable legal fees and
related costs, judgments, and other costs and expenses resulting from any claim,
demand, defense or assertion based on or grounded upon, or resulting from, a
breach of any of the Master Servicer's representations and warranties and
covenants contained in this Agreement or in any way relating to the failure of
the Master Servicer to perform its duties and service the Home Loans in
compliance with the terms of this Agreement.

            (b) The Transferor, the Depositor, the Owner Trustee, the Securities
Insurer or the Indenture Trustee, as the case may be, shall promptly notify the
Master Servicer if a claim is made by a third party with respect to a breach of
any of the Master Servicer's representations and warranties and covenants
contained in this Agreement or in any way relating to the failure of the Master
Servicer to perform its duties and service the Home Loans in compliance with the
terms of this Agreement. The Master Servicer shall promptly notify the Indenture
Trustee, the Owner Trustee, the Securities Insurer and the Depositor of any
claim of which it has been notified pursuant to this Section 9.01 by a Person
other than the Depositor, and, in any event, shall promptly notify the Depositor
of its intended course of action with respect to any claim.

            (c) The Master Servicer shall be entitled to participate in and,
upon notice to the Indemnified Party, assume the defense of any such action or
claim in reasonable cooperation with, and with the reasonable cooperation of,
the Indemnified Party. The Indemnified Party will have the right to employ its
own counsel in any such action in addition to the counsel of the Master
Servicer, but the fees and expenses of such counsel will be at the expense of
such Indemnified Party, unless (i) the employment of counsel by the Indemnified
Party at its expense has been authorized in writing by the Master Servicer, (ii)
the Master Servicer has not in fact employed counsel to assume the defense of
such action within a reasonable time after receiving notice of the commencement
of the action, or (iii) the named parties to any such action or proceeding
(including any impleaded parties) include both the Master Servicer and one or
more Indemnified Parties, and the Indemnified Parties shall have been advised by
counsel that there may be one or more legal defenses available to them which are
different from or additional to those available to the Master Servicer. The
Master Servicer shall not be liable for any settlement of any such claim or
action unless the Master Servicer shall have consented thereto or be in default
on its obligations hereunder. Any failure by an Indemnified Party to comply with
the provisions of this Section 9.01 shall relieve the Master Servicer of
liability only if such failure is materially prejudicial to the position of the
Master Servicer and then only to the extent of such prejudice.

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<PAGE>

            (d) The provisions of this Section 9.01 shall survive the
replacement of the Master Servicer; provided, that no successor master servicer
shall be liable for (or required to indemnify any party for) any act or omission
of any predecessor master servicer.

            Section 9.02 Merger or Consolidation of the Master Servicer. The
Master Servicer shall keep in full effect its existence, rights and franchises
as a corporation, and will obtain and preserve its authorization or
qualification to do business as a foreign corporation and maintain, or cause an
affiliate approved by the other parties hereto to maintain, such other licenses
and permits in each jurisdiction necessary to protect the validity and
enforceability of this Agreement or any of the Home Loans and to perform its
duties under this Agreement; provided, however, that the Master Servicer may
merge or consolidate with any other corporation upon the satisfaction of the
conditions set forth in the following paragraph.

            With the consent of the Securities Insurer, any Person into which
the Master Servicer may be merged or consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Master Servicer shall
be a party, or any Person succeeding to the business of the Master Servicer,
shall be an Eligible Servicer and shall be the successor of the Master Servicer,
as applicable hereunder, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding. The Master Servicer shall send notice of any such
merger, conversion, consolidation or succession to the Indenture Trustee, the
Owner Trustee, the Securities Insurer, the Servicer and the Issuer.

            Section 9.03 Limitation on Liability of the Master Servicer and
Others. The Master Servicer and any director, officer, employee or agent of the
Master Servicer may rely on any document of any kind which it in good faith
reasonably believes to be genuine and to have been adopted or signed by the
proper authorities respecting any matters arising hereunder. Subject to the
terms of Section 9.01 hereof, the Master Servicer shall have no obligation to
appear with respect to, prosecute or defend any legal action which is not
incidental to the Master Servicer's duty to service the Home Loans in accordance
with this Agreement.

            Section 9.04 Master Servicer Not to Resign; Assignment. The Master
Servicer shall not resign from the obligations and duties hereby imposed on it
except (a) with the consent of the Owner Trustee, the Securities Insurer and
Indenture Trustee or (b) upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination pursuant to
clause (b) of the preceding sentence permitting the resignation of the Master
Servicer shall be evidenced by an independent opinion of counsel to such effect
delivered (at the expense of the Master Servicer) to the Owner Trustee, the
Securities Insurer and the Indenture Trustee. No resignation of the Master
Servicer shall become effective until a successor master servicer appointed by
the Depositor and acceptable to the Rating Agencies, the Securities Insurer and
the Indenture Trustee shall have assumed the Master Servicer's responsibilities,
duties, liabilities (other than those liabilities arising prior to the
appointment of such successor) and obligations under this Agreement.

            Except as expressly provided herein, the Master Servicer shall not
assign or transfer any of its rights, benefits or privileges hereunder to any
other Person, or delegate to or subcontract with, or authorize or appoint any
other Person to perform any of the duties,

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<PAGE>

covenants or obligations to be performed by the Master Servicer hereunder and
any agreement, instrument or act purporting to effect any such assignment,
transfer, delegation or appointment shall be void.

            The Master Servicer agrees to cooperate with any successor master
servicer in effecting the transfer of the Master Servicer's servicing
responsibilities and rights hereunder pursuant to the first paragraph of this
Section 9.04.

            Section 9.05 [Reserved.]

            Section 9.06 Relationship of Master Servicer to the Issuer and the
Indenture Trustee. The relationship of the Master Servicer (and of any successor
to the Master Servicer as master servicer under this Agreement) to the Issuer
and the Indenture Trustee under this Agreement is intended by the parties hereto
to be that of an independent contractor and not of a joint venturer, agent or
partner of the Issuer or the Indenture Trustee.

            Section 9.07 Master Servicer May Own Securities Each of the Master
Servicer and any Affiliate of the Master Servicer may in its individual or any
other capacity become the owner or pledgee of Securities with the same rights as
it would have if it were not the Master Servicer or an Affiliate thereof except
as otherwise specifically provided herein. Securities so owned by or pledged to
the Master Servicer or such Affiliate shall have an equal and proportionate
benefit under the provisions of this Agreement, without preference, priority, or
distinction as among all of the Securities; provided, however, that any
Securities owned by the Master Servicer or any Affiliate thereof, during the
time such Securities are owned by them, shall be without voting rights for any
purpose set forth in this Agreement. The Master Servicer shall notify the
Indenture Trustee and the Securities Insurer promptly after it or any of its
Affiliates becomes the owner or pledgee of a Security.

            Section 9.08 Right to Examine Master Servicer Records. The Indenture
Trustee, the Owner Trustee, the Depositor, the Securities Insurer and each of
their respective agents shall have the right upon reasonable prior notice,
during normal business hours and as often as reasonably required, to examine,
audit and copy, at the expense of the Person making such examination, any and
all of the books, records or other information of the Master Servicer
(including, without limitation, the Servicer), whether held by the Master
Servicer or by another on behalf of the Master Servicer, which may be relevant
to the performance or observance by the Master Servicer of the terms, covenants
or conditions of this Agreement. In the case of the supervisory agents and
examiners of the Issuer, the Indenture Trustee, the Owner Trustee, the
Securities Insurer and the Securityholders, access to the documentation
regarding the Home Loans required by applicable state and federal regulations
shall be afforded without charge but only upon reasonable request and during
normal business hours at the offices of the Master Servicer designated by it.

            The Master Servicer also agrees to make available on a reasonable
basis to the Depositor, the Securityholders or any prospective Securityholder a
knowledgeable financial or accounting officer for the purpose of answering
reasonable questions respecting recent developments affecting the Servicer or
the financial statements of the Servicer and to permit the

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Depositor, the Securityholders and any prospective Securityholder to inspect the
Servicer's servicing facilities during normal business hours for the purpose of
satisfying that the Servicer has the ability to service the Home Loans in
accordance with this Agreement.

            Each Securityholder, the Indenture Trustee, the Securities Insurer,
the Master Servicer and the Owner Trustee agree that any information obtained
pursuant to the terms of this Agreement shall be held confidential.

            Section 9.09 Financial Statements The Master Servicer understands
that, in connection with the transfer of the Notes, Noteholders and the
Securities Insurer may request that the Master Servicer make available to the
Noteholders and to prospective Noteholders annual audited financial statements
of the Servicer for one or more of the most recently completed five fiscal years
for which such statements are available, which request shall not be unreasonably
denied.

                                   ARTICLE X

                                     DEFAULT

            Section 10.01 Master Servicer Events of Default. (a) Master Servicer
Event of Default. A Master Servicer Event of Default shall include the
occurrence and continuation of one or more of the following:

            (i) (1) Any failure by the Servicer to deposit in the Collection
      Account in accordance with Section 5.01(b) hereof any payments in respect
      of the Home Loans received by the Servicer no later than the second
      Business Day following the day on which such payments were received; (2)
      any failure of the Servicer to pay when due any amount payable by it under
      the Servicing Agreement or this Agreement; or (3) the occurrence and
      continuance of any other Servicer Event of Default (as defined in Exhibit
      E hereto) which Servicer Event of Default continues unremedied for a
      period of 30 days after the date on which a Notice of Default requiring
      such failure to be remedied shall have been given (a) to the Servicer and
      the Master Servicer by the Indenture Trustee, or the Securities Insurer,
      or (b) to the Servicer, the Master Servicer, the Indenture Trustee, the
      Owner Trustee and the Securities Insurer by the Majority Noteholders.

            (ii) The failure by the Master Servicer duly to observe or perform,
      in any material respect, any other covenants, obligations or agreements of
      the Master Servicer as set forth in this Agreement, which failure
      continues unremedied for a period of 30 days after the date on which a
      Notice of Default requiring such failure to be remedied shall have been
      given (a) to the Master Servicer by the Indenture Trustee, the Owner
      Trustee or the Securities Insurer, or (b) to the Master Servicer, the
      Indenture Trustee, the Owner Trustee and the Securities Insurer by the
      Majority Noteholders.

            (iii) A decree or order of a court or agency or supervisory
      authority having jurisdiction for the appointment of a conservator or
      receiver or liquidator in any insolvency, readjustment of debt, marshaling
      of assets and liabilities or similar proceedings, or for the winding-up or
      liquidation of its affairs, shall have been entered

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<PAGE>

      against the Master Servicer and such decree or order shall have remained
      in force, undischarged or unstayed for a period of 60 days.

            (iv) The Master Servicer shall consent to the appointment of a
      conservator or receiver or liquidator in any insolvency, readjustment of
      debt, marshaling of assets and liabilities or similar proceedings of or
      relating to the Master Servicer or of or relating to all or substantially
      all of the Master Servicer's property.

            (v) The Master Servicer shall admit in writing its inability to pay
      its debts as they become due, file a petition to take advantage of any
      applicable insolvency or reorganization statute, make an assignment for
      the benefit of its creditors, or voluntarily suspend payment of its
      obligations.

            (vi) The Majority Noteholders and the Securities Insurer,
      collectively, or the Securities Insurer, individually, shall determine, in
      their reasonable judgment and based upon published reports (including wire
      services), which they reasonably believe in good faith to be reliable, and
      shall give the Master Servicer a Notice of Default, that:

                  (1) the Master Servicer or Servicer has experienced a material
      adverse change in its business, assets, liabilities, operations, condition
      (financial or otherwise) or prospects; or

                  (2) the Master Servicer or Servicer or any of their
      subsidiaries or parent has defaulted on any of its material obligations;
      or

                  (3) the Master Servicer is no longer able to discharge its
      duties under this Agreement or the Servicer is no longer able to discharge
      its duties under the Servicing Agreement; or

                  (4) the Master Servicer has ceased to conduct its business in
      the ordinary course;

provided, however, that the Master Servicer shall have five Business Days from
the receipt of such Notice of Default to cure such Master Servicer Event of
Default by providing the foregoing parties with written assurances that, in a
reasonable and good faith manner, substantiate the financial and operational
well-being of the Master Servicer or Servicer, as appropriate, and adequately
refute the occurrence of a material adverse change, including, without
limitation, information, reports or written assurances obtained from certain of
its lenders or lenders to the Servicer.

            (vii) An event of default has occurred and is continuing under the
      Indemnification Agreement.

            (b) Remedies. If a Servicer Event of Default (as defined in Exhibit
E hereto) shall occur and be continuing or the Servicer's term of service has
not been renewed pursuant to Section 3 of the Servicing Agreement, then, and in
each and every such case, so long as such Servicer Event of Default shall not
have been remedied, the Securities Insurer or the Indenture Trustee, the Owner
Trustee or the Majority Noteholders, by a Notice of Default to the Master

                                      -69-

<PAGE>

Servicer may, in addition to whatever rights such Person may have at law or in
equity to damages, including injunctive relief and specific performance, with
the consent of the Securities Insurer may require the Master Servicer to
terminate all the rights and obligations of the Servicer under the Servicing
Agreement and in and to the Home Loans and the proceeds thereof, as servicer
under the Servicing Agreement. Upon termination of the Servicer following such
Notice of Default, all authority and power of the Servicer under the Servicing
Agreement, whether with respect to the Home Loans or otherwise, shall, at the
direction of the Securities Insurer, pass to, be transferred to, and be vested
in either: (1) a successor servicer acceptable to the Securities Insurer; or (2)
the Master Servicer, or (3) the Indenture Trustee. If a Master Servicer Event of
Default shall occur and be continuing, then, and in each and every such case, so
long as a Master Servicer Event of Default shall not have been remedied, the
Securities Insurer or the Indenture Trustee, or the Majority Noteholders, by a
Notice of Default to the Master Servicer may, in addition to whatever rights
such Person may have at law or in equity to damages, including injunctive relief
and specific performance, with the consent of the Securities Insurer, may
terminate all the rights and obligations of the Master Servicer under this
Agreement and in and to the Home Loans and the proceeds thereof, as Master
Servicer under this Agreement. Upon termination of the Master Servicer following
such Notice of Default, all authority and power of the Master Servicer under
this Agreement, whether with respect to the Home Loans or otherwise, shall, at
the direction of the Securities Insurer pass to, be transferred to, and be
vested in either: (1) a successor master servicer reasonably acceptable to the
Securities Insurer; or (2) the Indenture Trustee.

            Upon the termination of the Master Servicer and transfer to a
successor, master servicer, the Indenture Trustee is hereby authorized and
empowered to execute and deliver, on behalf of the Master Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments and
do or cause to be done all other acts or things necessary or appropriate to
effect the purposes of such notice of termination, including, but not limited
to, the transfer and endorsement or assignment of the Home Loans and related
documents. The Master Servicer agrees to cooperate with the successor master
servicer in effecting the termination of the Master Servicer's responsibilities
and rights hereunder.

            Section 10.02 [Reserved].

            Section 10.03 Waiver of Defaults. The Securities Insurer, and the
Majority Noteholders may with prior consent of the Securities Insurer, on behalf
of all Noteholders, waive any events permitting removal of the Servicer or
Master Servicer pursuant to this Article X; provided, however, that the Majority
Noteholders may not waive a default in making a required payment on a Note or
distribution on a Residual Interest Certificate without the consent of the
related Noteholder or holder of the Residual Interest Certificate. Upon any
waiver of a past default, such default shall cease to exist and any Master
Servicer Event of Default arising therefrom shall be deemed to have been
remedied for every purpose of this Agreement. No such waiver shall extend to any
subsequent or other default or impair any right consequent thereto except to the
extent expressly so waived.

            Section 10.04 Accounting Upon Termination of Master Servicer. Upon
termination of the Master Servicer under this Article X, the Master Servicer
shall, at its own expense execute and deliver such instruments and perform all
acts reasonably requested in order

                                      -70-

<PAGE>

to effect the orderly and efficient transfer of master servicing of the Home
Loans to its successor and to more fully and definitively vest in such successor
all rights, powers, duties, responsibilities, obligations and liabilities of the
Master Servicer under this Agreement.

                                   ARTICLE XI

                                   TERMINATION

            Section 11.01 Termination. This Agreement shall terminate upon
notice to the Indenture Trustee of either:

            (a) the later of (i) the satisfaction and discharge of the Indenture
and the provisions thereof, or (ii) the disposition of all funds with respect to
the last Home Loan and the remittance of all funds due hereunder and the payment
of all amounts due and payable to the Servicer, the Indenture Trustee, the Owner
Trustee, the Issuer, the Master Servicer, the Securities Insurer and any
Custodian; or

            (b) the mutual consent of the Servicer, the Master Servicer, the
Depositor, the Transferor, the Securities Insurer and all Securityholders in
writing.

            Section 11.02 Optional Termination. On or after any Payment Date on
which the Pool Principal Balance declines to 10% or less of the Original Pool
Principal Balance, then the Majority Residual Interestholders may, at their
option, effect an early termination of the Issuer. On or after any Payment Date
on which the Pool Principal Balance declines to 5% or less of the Original Pool
Principal Balance, then the Securities Insurer or the Master Servicer may, at
their respective options, effect an early termination of the Issuer. The
Majority Residual Interestholders, the Securities Insurer or the Master
Servicer, as applicable, shall effect such early termination by providing prior
notice thereof to the Servicer, the Indenture Trustee, the Master Servicer, the
Securities Insurer and Owner Trustee and by purchasing all of the Home Loans
from the Issuer at a purchase price, payable in cash, equal to or greater than
the Termination Price. The expense of any Independent appraiser required under
this Section 11.02 shall be a nonreimbursable expense of Majority Residual
Interestholders, the Securities Insurer or the Master Servicer, as applicable.

            Any such early termination by the Majority Residual Interestholders,
the Securities Insurer or the Master Servicer, as applicable, shall be
accomplished by depositing into the Collection Account on the third Business Day
prior to the Payment Date on which the purchase is to occur the amount of the
Termination Price to be paid. The Termination Price and any amounts then on
deposit in the Collection Account (other than any amounts not required to have
been deposited therein pursuant to Section 5.01(b)(1) hereof and any amounts
withdrawn therefrom by the Indenture Trustee pursuant to Section 5.01(b)(3)
hereof) shall be transferred to the Note Payment Account pursuant to Section
5.01(b)(2) hereof for payment to Noteholders and the Securities Insurer on the
succeeding Payment Date; and any amounts received with respect to the Home Loans
and Foreclosure Properties subsequent to the Due Period immediately preceding
such final

                                      -71-

<PAGE>

Payment Date shall belong to the purchaser thereof or the Securities
Insurer, as applicable. For purposes of calculating the Available Payment Amount
for such final Payment Date, amounts transferred to the Note Payment Account
immediately preceding such final Payment Date shall in all cases be deemed to
have been received during the related Due Period, and amounts so transferred
shall be applied pursuant to Section 5.01(d) and (e) hereof.

            Section 11.03 Notice of Termination. Notice of termination of this
Agreement or of early redemption and termination of the Issuer shall be sent (i)
by the Indenture Trustee to the Noteholders and the Securities Insurer in
accordance with Section 10.02 of the Indenture and (ii) by the Owner Trustee to
the Certificateholders in accordance with Section 9.1(d) of the Owner Trust
Agreement.

                                  ARTICLE XII

                            MISCELLANEOUS PROVISIONS

            Section 12.01 Acts of Noteholders. Except as otherwise specifically
provided herein, whenever action, consent or approval of the Noteholders is
required under this Agreement, such action, consent or approval shall be deemed
to have been taken or given on behalf of, and shall be binding upon, all
Noteholders if the Majority Noteholders agree to take such action or give such
consent or approval.

            Section 12.02 Amendment. (a) This Agreement may be amended from time
to time by the Depositor, the Master Servicer, the Transferor, the Indenture
Trustee and the Issuer by written agreement with notice thereof to the
Securityholders, without the consent of any of the Securityholders, but with the
consent of the Securities Insurer, to cure any error or ambiguity, to correct or
supplement any provisions hereof which may be defective or inconsistent with any
other provisions hereof or to add any other provisions with respect to matters
or questions arising under this Agreement; provided, however, that such action
will not adversely affect in any material respect the interests of the
Noteholders. An amendment described above shall be deemed not to adversely
affect in any material respect the interests of the Noteholders if either (i) an
Opinion of Counsel is obtained to such effect or (ii) the party requesting the
amendment obtains the Ratings Confirmation with respect to such amendment.

            (b) This Agreement may also be amended from time to time by the
Depositor, the Master Servicer, the Transferor, the Indenture Trustee and the
Issuer by written agreement, with the prior written consent of the Majority
Noteholders and the Securities Insurer, for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of this
Agreement, or of modifying in any manner the rights of the Noteholders;
provided, however, that no such amendment shall (i) reduce in any manner the
amount of, or delay the timing of, collections of payments on Home Loans or
distributions which are required to be made on any Note, without the consent of
the holders of 100% of the Notes affected thereby and the Securities Insurer,
(ii) adversely affect in any material respect the interests of the holders of
any of the Notes or the Securities Insurer in any manner other than as described
in clause (i), without the consent of the holders of 100% of such Notes or the
Securities Insurer, or (iii) reduce the percentage of any of the Notes, the
consent of which is required for any such amendment, without the consent of the
holders of 100% of such Notes and the Securities Insurer.

                                      -72-

<PAGE>

            (c) It shall not be necessary for the consent of Noteholders under
this Section to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof.

            Prior to the execution of any amendment to this Agreement, the
Issuer and the Indenture Trustee shall be entitled to receive and rely upon an
Opinion of Counsel stating that the execution of such amendment is authorized or
permitted by this Agreement. The Issuer and the Indenture Trustee may, but shall
not be obligated to, enter into any such amendment which affects the Issuer's
own rights, duties or immunities of the Issuer or the Indenture Trustee, as the
case may be, under this Agreement.

            Section 12.03 Recordation of Agreement. To the extent permitted by
applicable law, this Agreement, or a memorandum thereof if permitted under
applicable law, is subject to recordation in all appropriate public offices for
real property records in all of the counties or other comparable jurisdictions
in which any or all of the Mortgaged Properties are situated, and in any other
appropriate public recording office or elsewhere, such recordation to be
effected by the Servicer at the Noteholders' expense on direction of the
Majority Noteholders or the Securities Insurer, but only when accompanied by an
Opinion of Counsel to the effect that such recordation materially and
beneficially affects the interests of the Noteholders or is necessary for the
administration or servicing of the Home Loans.

            Section 12.04 Duration of Agreement. This Agreement shall continue
in existence and effect until terminated as herein provided.

            Section 12.05 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

            Section 12.06 Notices. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by overnight mail, certified mail or
registered mail, postage prepaid, to:

            (a) in the case of the Depositor,
[________________________________], [200 Park Avenue, New York, New York 10166],
Attention: [___________], or such other addresses as may hereafter be furnished
to the Securityholders and the other parties hereto in writing by the Depositor;

            (b) in the case of the Issuer, at ________ Home Loan Owner Trust
200_-_, c/o [______________________], [_____________________], Attention:
[____________], or such other address as may hereafter be furnished to the
Securityholders and the other parties hereto;

            (c) in the case of the Transferor and Master Servicer, _________
_________, [_________________], Attention: [___________], or such other address
as may hereafter be furnished to the Securityholders and the other parties
hereto in writing by the Servicer or the Transferor;

                                      -73-

<PAGE>

            (d) in the case of the Indenture Trustee,
_______,____________________ ________________________;

            (e) in the case of the Securityholders, as set forth in the
applicable Note Register;

            (f) [in the case of a claim under the Guaranty Policy,
_______________ ____________________________, or such other address as may be
furnished to the Securityholders and the other parties hereto in writing by the
Securities Insurer];

            (g) [in the case of the Securities Insurer, ______________________,
Attention: [ ] (_________ Home Loan Asset Backed Notes, Series 200_-_);] or

            (h) in the case of the Servicer, to
_________________________________ _______________, Attention: _____________,
_________ Series 200_-_; provided that during the period that the Master
Servicer is acting as Servicer, notices shall be sent to the Master Servicer.

            Any such notices shall be deemed to be effective with respect to any
party hereto upon the receipt of such notice by such party, except that notices
to the Securityholders shall be effective upon mailing or personal delivery.

            Section 12.07 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be held
invalid for any reason whatsoever, then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other covenants, agreements, provisions or terms of this
Agreement.

            Section 12.08 No Partnership. Nothing herein contained shall be
deemed or construed to create any partnership or joint venture between the
parties hereto and the services of the Servicer shall be rendered as an
independent contractor.

            Section 12.09 Counterparts. This Agreement 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 Agreement.

            Section 12.10 Successors and Assigns. This Agreement shall inure to
the benefit of and be binding upon the Servicer, the Transferor, the Depositor,
the Indenture Trustee, the Issuer, the Noteholders, the Securities Insurer, the
Master Servicer and their respective successors and permitted assigns.

            Section 12.11 Headings. The headings of the various sections of this
Agreement have been inserted for convenience of reference only and shall not be
deemed to be part of this Agreement.

                                      -74-

<PAGE>

            Section 12.12 Actions of Securityholders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Agreement to be given or taken by Securityholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Securityholders in person or by agent 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 Depositor, the Servicer, the
Indenture Trustee or the Issuer. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Agreement and conclusive in favor of the Depositor, the Servicer, the Indenture
Trustee and the Issuer if made in the manner provided in this Section 12.12.

            (b) The fact and date of the execution by any Securityholder of any
such instrument or writing may be proved in any reasonable manner, which the
Depositor, the Servicer, the Indenture Trustee or the Issuer deems sufficient.

            (c) Any request, demand, authorization, direction, notice, consent,
waiver or other act by a Securityholder shall bind every holder of every
Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof, in respect of anything done, or omitted to be done,
by the Depositor, the Servicer, the Indenture Trustee, the Securities Insurer or
the Issuer in reliance thereon, whether or not notation of such action is made
upon such Security.

            (d) The Depositor, the Servicer, the Indenture Trustee or the Issuer
may require additional proof of any matter referred to in this Section 12.12 as
it shall deem necessary.

            Section 12.13 Reports to Rating Agencies. (a) The Indenture Trustee
shall provide to each Rating Agency copies of statements, reports and notices,
to the extent received or prepared in connection herewith, as follows:

            (i) copies of amendments to this Agreement;

            (ii) notice of any substitution or repurchase of any Home Loans;

            (iii) notice of any termination, replacement, succession, merger or
      consolidation of the Servicer, the Master Servicer, any Custodian or the
      Issuer;

            (iv) notice of final payment on the Notes;

            (v) any Notice of Default;

            (vi) copies of the annual independent accountants' report delivered
      pursuant to Section 7.05 hereof, and copies of any compliance reports
      delivered by the Servicer including under Section 7.04 hereof; and

            (vii) copies of any Payment Date Statement pursuant to Section
      6.01(b) hereof.

            (b) With respect to the requirement of the Indenture Trustee to
provide statements, reports and notices to the Rating Agencies, such statements,
reports and notices shall

                                      -75-

<PAGE>

be delivered to the Rating Agencies at the following addresses: (i) if to
Standard & Poor's Ratings Services, 55 Water Street, New York, New York, 10041,
Attention: Residential Mortgage Surveillance Group; and (ii) if to Moody's
Investors Service, Inc., 99 Church Street, Pass-Through Group, New York, New
York 10007, Attention: Residential Mortgage.

            Section 12.14 Holders of the Residual Interest Certificates. (a) Any
sums to be distributed or otherwise paid hereunder or under the Owner Trust
Agreement to the holders of the Residual Interest Certificates shall be paid to
such holders pro rata based on their percentage holdings in the Residual
Interest;

            (b) Where any act or event hereunder is expressed to be subject to
the consent or approval of the holders of the Residual Interest Certificates,
such consent or approval shall be capable of being given by the holder or
holders of not less than 51% of the Residual Interest in aggregate.

            Section 12.15 [Grant of Noteholder Rights to Securities Insurer. In
consideration for the guarantee of the Insured Securities by the Securities
Insurer pursuant to the Guaranty Policy, and by acceptance of an Insured
Security, the Noteholders hereby grant to the Securities Insurer the right to
act as the holder of 100% of the outstanding Insured Securities for the purpose
of exercising the rights of the holders of the Insured Securities under this
Agreement, without the consent of any such Noteholders, including the voting
rights of such holders, but excluding those rights requiring the consent of all
such holders under Section 12.02(b), and any rights of such holders to payments
under Section 5.01 (d) and (e) hereof and under Section 8.02(c) of the
Indenture; provided that the preceding grant of rights to the Securities Insurer
by the Noteholders shall be subject to Section 12.17 hereof. The rights of the
Securities Insurer to direct certain actions and consent to certain actions of
the Majority Noteholders hereunder will terminate at such time as the Principal
Balance of Insured Securities have been reduced to zero and the Securities
Insurer has been paid the Securities Insurer Reimbursement Amount in full and
all other amounts owed under the Guaranty Policy and Insurance Agreement and the
Securities Insurer has no further obligation under the Guaranty Policy.]

            Section 12.16 Third Party Beneficiary. The parties hereto
acknowledge that the Securities Insurer is an express third party beneficiary
hereof entitled to enforce any rights reserved to it hereunder as if it were
actually a party hereto.

            Section 12.17 [Suspension and Termination of Securities Insurer's
Rights. (a) During the continuation of a Securities Insurer Default, the rights
granted or reserved to the Securities Insurer hereunder shall vest instead in
the Majority Noteholders; provided, however, that the Securities Insurer shall
be entitled to any payments of the Securities Insurer Reimbursement Amount, and
the Securities Insurer shall retain those rights under Section 11.01 to consent
to the termination of this Agreement and Section 12.02 to consent to any
amendment of this Agreement.

            (b) At such time as either (i) the Principal Balances of the Insured
Securities have been reduced to zero or (ii) the Guaranty Policy has been
terminated, and in either case of (i) or (ii) the Securities Insurer has been
paid the Securities Insurer Reimbursement Amount in full and all other amounts
owed under the Guaranty Policy and the Insurance Agreement (and the

                                      -76-

<PAGE>

Securities Insurer no longer has any obligation under the Guaranty Policy,
except for breach thereof by the Securities Insurer), then the rights and
benefits granted or reserved to the Securities Insurer hereunder (including the
rights to direct certain actions and receive certain notices) shall terminate
and the Noteholders (including in certain instances the Majority Noteholders)
shall be entitled to the exercise of such rights and to receive such benefits of
the Securities Insurer following such termination to the extent that such rights
and benefits are applicable to the Noteholders (including the Majority
Noteholders).]

                                      -77-

<PAGE>

            IN WITNESS WHEREOF, the Issuer, the Depositor, the Transferor, the
Servicer, the Master Servicer and the Indenture Trustee have caused their names
to be signed by their respective officers thereunto duly authorized, as of the
day and year first above written, to this Sale and Servicing Agreement.

                                       _________ HOME LOAN OWNER TRUST SERIES
                                          200_-_, as Issuer

                                       By:[____________________________], not
                                          in its individual capacity but
                                          solely as Owner Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

                                       [________________________________], as
                                          Depositor

                                       By:____________________________________
                                          Name:
                                          Title:

                                       _________ _________, as Transferor and
                                          Master      Servicer

                                       By:____________________________________
                                          Name:
                                          Title:

<PAGE>

                                       _________, not in its individual
                                          capacity but solely as Indenture
                                          Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

            BEFORE ME, the undersigned authority, a Notary Public, on this _____
day of _______ 200_, personally appeared _______________, known to me to be a
person and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said
[______________________], not in its individual capacity but in its capacity as
Owner Trustee of _________ HOME LOAN OWNER TRUST 200_-_ as Issuer, and that she
executed the same as the act of such corporation for the purpose and
consideration therein expressed, and in the capacity therein stated.

            GIVEN UNDER MY HAND AND SEAL OF [______________________], this the
____ day of ______, 200_.

                                       Notary Public, State of _______________

<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

            BEFORE ME, the undersigned authority, a Notary Public, on this _____
day of _______ 200_, personally appeared _______________, known to me to be a
person and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said
[________________________________], as the Depositor, and that he/she executed
the same as the act of such corporation for the purpose and consideration
therein expressed, and in the capacity therein stated.

            GIVEN UNDER MY HAND AND SEAL OF [________________________________],
this the ____ day of ________, 200_.

                                       Notary Public, State of _______________

<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

            BEFORE ME, the undersigned authority, a Notary Public, on this __
day of ______ 200_, personally appeared _______________________, known to me to
be the person and officer whose name is subscribed to the foregoing instrument
and acknowledged to me that the same was the act of the said _________
_________, as the Transferor and Master Servicer, and that he executed the same
as the act of such corporation for the purposes and consideration therein
expressed, and in the capacity therein stated.

            GIVEN UNDER MY HAND AND SEAL OF _________ _________, this the ____
day of _______ 200_.

                                       Notary Public, State of _______________

<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

            BEFORE ME, the undersigned authority, a Notary Public, on this __
day of _______ 200_, personally appeared ____________________, known to me to be
the person and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said _________, not in its
individual capacity, but in its capacity as Indenture Trustee, and that she
executed the same as the act of such entity for the purposes and consideration
therein expressed, and in the capacity therein stated.

            GIVEN UNDER MY HAND AND SEAL, this the __ day of _______ 200_.

                                       Notary Public, State of _______________

<PAGE>

                                    EXHIBIT A

                               HOME LOAN SCHEDULE

                                      A-1

<PAGE>

                                    EXHIBIT B

        Form of Servicer's Monthly Remittance Report to Indenture Trustee

                                      B-1

<PAGE>

                                    EXHIBIT C

                         Form of Loan Liquidation Report

Customer Name:
Account No.:
Original Principal Balance:
1. Type of Liquidation (REO disposition/charge-off/short pay-off)     __________
      Date last paid                                                  __________
   Foreclosure
      Date of Foreclosure                                             __________
      Date of REO                                                     __________
      Date of REO Disposition                                         __________
      Property Sale Price/Estimated Market Value at disposition       $_________
   Settlement (short pay-off and collection actions)
      Date of Settlement Payment                                      __________
   Defaulted Loan Sale                                                __________
      Date of Sale                                                    __________
      Charge-off or Bankruptcy Date of Charge-off or Bankruptcy
        Discharge                                                     __________
2. Liquidation Proceeds
      Principal Prepayment                                            $_________
      Property Sale Proceeds                                          $_________
      Insurance Proceeds                                              $_________
      Settlement Payment Loan Sale Proceeds                           $_________
      Other (Itemize)                                                 $_________
         Total Proceeds                                               $_________
      Liquidation Expenses Servicing Advances                         $_________
      Servicing Fees                                                  $_________
      Other Servicing Compensation                                    $_________
      Collection Agent or Attorney's Fees                             $_________
         Total Advances                                               $_________
4. Net Liquidation Proceeds (Item 2 minus Item 3)                     $_________
5. Principal Balance of Mortgage Loan                                 $_________
6. Loss, if any (Item 5 minus Item 4)                                 $_________

                                      C-1

<PAGE>

                                    EXHIBIT D

                     Form of Master Servicer Renewal Notice

            [MASTER SERVICER]

            Re: _________ Home Loan Asset Backed Notes, Series 200_-_ Dear
Ladies and Gentlemen:

            Reference is hereby made to the Sale and Servicing Agreement dated
as of _______ 1, 200_ (the "Agreement") among _________ Home Loan Owner Trust
200_-_, as Issuer, [________________________________], as Depositor, _________
_________, as Transferor, Master Servicer, and as Servicer, and _________, as
Indenture Trustee. [The Indenture Trustee has not received notification from
_________________, as the Securities Insurer, that instructs the Indenture
Trustee not to renew the term of ______________ as the Master Servicer under the
Agreement.] Therefore, pursuant to Section 9.05 of the Agreement, the Indenture
Trustee hereby notifies ________________________ that its term as Master
Servicer has been extended for a successive three calendar month period
beginning with the month of __________, ____.

                                       ___________________________________,
                                          as Indenture Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

cc:___[Securities Insurer]

[_________________________________]
200 Park Avenue
New York, New York  10166
Attn:  [_____________]

_________ Home Loan Owner Trust 200_-_
c/o [______________________]
[_______________________]
Attn:  [______________________]

                                      D-1

<PAGE>

                                    EXHIBIT E

                                      E-1

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