Document:

Exhibit 4.3

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                                 TRUST AGREEMENT

                                      among

                         HOUSEHOLD FINANCE CORPORATION,

                            HFC REVOLVING CORPORATION
                                  as Depositor,

                                       and

                                [               ],
                                as Owner Trustee

                             Dated as of [        ]

                     HOUSEHOLD HOME EQUITY LOAN TRUST 200_-_
             [ ] Home Equity Loan Asset-Backed Notes, Series 200_-_

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                               Table of Contents
                                                                           Page

                                    ARTICLE I
                                   DEFINITIONS

Section 1.1    Capitalized Terms.............................................1
Section 1.2    Other Definitional Provisions.................................4

                                   ARTICLE II
                                  ORGANIZATION

Section 2.1    Name..........................................................5
Section 2.2    Office........................................................5
Section 2.3    Purposes and Powers...........................................5
Section 2.4    Appointment of Owner Trustee..................................6
Section 2.5    Initial Capital Contribution of Owner Trust Estate............6
Section 2.6    Declaration of Trust..........................................6
Section 2.7    Title to Trust Property.......................................6
Section 2.8    Situs of Trust................................................6
Section 2.9    Representations and Warranties of the Depositor...............7
Section 2.10   Federal Income Tax Allocations................................8

                                  ARTICLE III
           OWNERSHIP INTEREST AND TRANSFERS OF THE OWNERSHIP INTEREST

Section 3.1    Initial Ownership.............................................9
Section 3.2    The Ownership Interest........................................9
Section 3.3    [Reserved]....................................................9
Section 3.4    Registration of Transfer and Exchange of
               Ownership Interest............................................9
Section 3.5    [Reserved]....................................................9
Section 3.6    Persons Deemed Transferors....................................9
Section 3.7    [Reserved]....................................................9
Section 3.8    Maintenance of Office or Agency...............................9
Section 3.9    Appointment of Paying Agent..................................10
Section 3.10   [Reserved]...................................................10
Section 3.11   [Reserved]...................................................10
Section 3.12   [Reserved]...................................................10
Section 3.13   Restrictions on Transfers of Ownership Interest..............10

                                   ARTICLE IV
                            ACTIONS BY OWNER TRUSTEE

Section 4.1    Prior Notice to the Transferor [and the Insurer] with
               Respect to Certain Matters...................................13

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Section 4.2    [Reserved]...................................................15
Section 4.3    Action by Transferor with Respect to Bankruptcy..............15
Section 4.4    Restrictions on Transferor's Power...........................15

                                   ARTICLE V
                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

Section 5.1    Establishment of Trust Account...............................16
Section 5.2    Application Of Trust Funds...................................16
Section 5.3    Method of Payment............................................16
Section 5.4    [Reserved]...................................................16
Section 5.5    Accounting and Reports to the Transferor, the Internal
               Revenue Service and Others...................................16
Section 5.6    Signature on Returns.........................................17

                                   ARTICLE VI
                     AUTHORITY AND DUTIES OF OWNER TRUSTEE

Section 6.1    General Authority............................................18
Section 6.2    General Duties...............................................18
Section 6.3    Action upon Instruction......................................18
Section 6.4    No Duties Except as Specified in this Agreement,
               the Transaction Documents or in Instructions.................19
Section 6.5    No Action Except Under Specified Documents or Instructions...20
Section 6.6    Restrictions.................................................20

                                  ARTICLE VII
                          CONCERNING THE OWNER TRUSTEE

Section 7.1    Acceptance of Trusts and Duties..............................21
Section 7.2    Furnishing of Documents......................................22
Section 7.3    Representations and Warranties...............................22
Section 7.4    Reliance; Advice of Counsel..................................23
Section 7.5    Not Acting in Individual Capacity............................23
Section 7.6    Owner Trustee Not Liable for the Ownership
               Interest or the Home Equity Loans............................24
Section 7.7    Owner Trustee May Own the Ownership Interest and the Notes...24
Section 7.8    Licenses.....................................................24

                                  ARTICLE VIII
                          COMPENSATION OF OWNER TRUSTEE

Section 8.1    Owner Trustee's Fees and Expenses............................25
Section 8.2    Indemnification..............................................25

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Section 8.3    Payments to the Owner Trustee.................................25

                                   ARTICLE IX
                         TERMINATION OF TRUST AGREEMENT

Section 9.1    Termination of Trust Agreement................................26

                                    ARTICLE X
             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

Section 10.1   Eligibility Requirements for Owner Trustee....................28
Section 10.2   Resignation or Removal of Owner Trustee.......................28
Section 10.3   Successor Owner Trustee.......................................29
Section 10.4   Merger or Consolidation of Owner Trustee......................29
Section 10.5   Appointment of Co-Owner Trustee or Separate Owner Trustee.....29

                                   ARTICLE XI
                                  MISCELLANEOUS

Section 11.1   Supplements and Amendments....................................32
Section 11.2   No Legal Title to Owner Trust Estate in Transferor............33
Section 11.3   Limitations on Rights of Others...............................33
Section 11.4   Notices.......................................................33
Section 11.5   Severability..................................................33
Section 11.6   Separate Counterparts.........................................34
Section 11.7   Successors and Assigns........................................34
Section 11.8   No Petition...................................................34
Section 11.9   [Reserved]....................................................34
Section 11.10  No Recourse...................................................34
Section 11.11  Headings......................................................34
Section 11.12  GOVERNING LAW.................................................34
Section 11.13  Inconsistencies with Sale and Servicing Agreement.............35
[Section 11.14 Third Party Beneficiary...................................... 35]

EXHIBIT A      Certificate of Trust..........................................A-1
EXHIBIT B      Form of Transfer Certificate..................................B-1

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     TRUST AGREEMENT, dated as of [       ], among Household Finance Corporation
("HFC"), HFC Revolving Corporation, as depositor (the "Depositor") and [      ],
a Delaware banking corporation, as owner trustee (the "Owner Trustee").

                                   ARTICLE I

                                   DEFINITIONS

     Section 1.1 Capitalized Terms. For all purposes of this Agreement, the
following terms shall have the meanings set forth below:

     "Agreement" shall mean this Trust Agreement, as the same may be amended and
supplemented from time to time.

     "Bankruptcy Action" shall have the meaning assigned to such term in Section
4.1.

     "Benefit Plan" shall have the meaning assigned to such term in Section
3.13.

     "Business Trust Statute" shall mean Chapter 38 of Title 12 of the Delaware
Code, 12 Del. Code ss. 3801 et seq., as the same may be amended from time to
time.

     "Certificate" shall mean the Ownership Interest.

     "Certificate of Trust" shall mean the Certificate of Trust in the form of
Exhibit A to be filed for the Trust pursuant to Section 3810(a) of the Business
Trust Statute.

     "Code" shall mean the Internal Revenue Code of 1986, as amended.

     "Collection Account" shall have the meaning assigned to such term in the
Sale and Servicing Agreement.

     "Corporate Trust Office" shall mean, (i) with respect to the Owner Trustee,
the principal corporate trust office of the Owner Trustee, which office at date
of execution of this Agreement, is located at [        ], Attention: Corporate
Trust Administration; or at such other address in the State of Delaware as the
Owner Trustee may designate by notice to the Transferor and the Trust, or the
principal corporate trust office of any successor Owner Trustee (the address
(which shall be in the State of Delaware) of which the successor owner trustee
will notify the Transferor and the Trust); or (ii) with respect to the Indenture
Trustee, the principal corporate trust office of the Indenture Trustee, which
office at date of execution of this Agreement, is located at [        ],
Attention: Indenture Trust Administration, or at such other address as the
Indenture Trustee may designate by notice to the Transferor and the Trust, or
the principal corporate trust office of any successor Indenture Trustee (the
address (which shall be in the State of [ ]) of which the successor indenture
trustee will notify the Transferor and the Trust.

     "Depositor" shall mean HFC Revolving Corporation or its successors.

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     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

     "Expenses" shall have the meaning assigned to such term in Section 8.2.

     "HFC" shall mean Household Finance Corporation or its successors.

     "Indenture" shall mean the Indenture, dated as of [         ], by and
between the Trust and the Indenture Trustee.

     "Indenture Trustee" shall mean [         ], as Indenture Trustee under
the Indenture.

     "Initial Note Principal Amount" shall mean with respect to the Class A
Notes, $[      ].

     ["Insurance Agreement" shall mean the Insurance and Reimbursement Agreement
dated as of [       ] among the Indenture Trustee, the Depositor, the Master
Servicer and the Insurer, including any amendments and supplements thereto.]

     "Master Servicer" shall mean HFC, or any successor servicer appointed
pursuant to the Sale and Servicing Agreement.

     "Non-permitted Foreign Owner" shall have the meaning set forth in Exhibit B
hereto.

     "Non-U.S. Person" shall mean any Person other than (i) a citizen or
resident of the United States, (ii) an entity treated for United States federal
income tax purposes as a corporation or partnership created or organized in or
under the laws of the United States or any state thereof, including the District
of Columbia, (iii) an estate that is subject to U.S. federal income tax
regardless of the source of its income, (iv) a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States trustees have authority to control all
substantial decisions of the trust, or (v) certain trusts in existence on August
20, 1996 and treated as United States persons on such date that elect to
continue to be so treated.

     "Owner Trust Estate" shall mean the contribution of $1 referred to in
Section 2.5 and the Trust Estate.

     "Owner Trustee" shall mean [       ], a Delaware banking corporation, not
in its individual capacity but solely as owner trustee under this Agreement, and
any successor owner trustee hereunder.

     "Ownership Interest" shall have the meaning specified in Section 3.2.

     "Prospective Transferor" shall mean any prospective purchaser or
prospective transferee of the Ownership Interest.

     "Rating Agency Condition" shall mean, with respect to certain actions
requiring Rating Agency consent, that each Rating Agency shall have been given
10 days (or such shorter period

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as is acceptable to each Rating Agency) prior notice thereof and that each of
the Rating Agencies shall have notified the Depositor, the Owner Trustee[, the
Insurer] and the Trust in writing that such action will not result in a
reduction or withdrawal of the then current rating of the Notes[, without regard
to the Insurance Policy].

     "Record Date" shall mean the last Business Day preceding the related
Payment Date; provided, however, that following the date on which Definitive
Notes are available pursuant to Section 2.2 of the Indenture, the Record Date
shall be the last day of the calendar month preceding the month in which the
related Payment Date occurs.

     "Register" shall mean a register kept by the Registrar in which, subject to
such reasonable regulations as it may prescribe, the Registrar shall provide for
the registration of the Certificate and the registration of transfers of the
Certificate. The location of the Registrar shall be the same as that of the
Corporate Trust Office of the Indenture Trustee.

     "Registrar" shall mean the [indenture trustee] as Registrar hereunder.

     "Sale and Servicing Agreement" shall mean the Sale and Servicing Agreement
dated as of the date hereof, among the Trust, the Depositor, the Indenture
Trustee and the Master Servicer.

     "Secretary of State" shall mean the Secretary of State of the State of
Delaware.

     "Transaction Documents" shall mean each of the Indenture, the Sale and
Servicing Agreement[, the Insurance Agreement] and this Agreement.

     "Transferor" shall mean the owner of the Ownership Interest.

     "Transferor Interest" shall have the meaning specified in Section 3.2.

     "Treasury Regulations" shall mean 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" shall mean Household Home Equity Loan Trust 200_-_, the Delaware
business trust created pursuant to this Agreement.

     "Trust Estate" shall mean the assets subject to the Sale and Servicing
Agreement, [each Home Equity Loan Purchase Agreement,] this Trust Agreement and
the Indenture, assigned to the Indenture Trustee, which assets consist of: (i)
each Home Equity Loan and its related Mortgage Note and other Mortgage File
documents for such Home Equity Loan, including such Home Equity Loan's Principal
Balance and all collections in respect thereof received after the Cut-Off Date;
(ii) property that secured a Home Equity Loan that has become REO; (iii) the
interest of the Depositor in certain hazard insurance policies maintained by the
Mortgagors or the

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Master Servicer in respect of the Home Equity Loans; (iv) amounts on deposit in
the Collection Account (exclusive of net earnings thereon); (v) the Depositor's
rights under the Purchase Agreement, (vi) one share of Preferred Stock of the
Depositor, (vii) any proceeds of any of the foregoing and (viii) all other
assets included or to be included in the Trust for the benefit of Noteholders
[and the Insurer]. [In addition, on or prior to the Closing Date, the Depositor
shall cause the Insurer to deliver the Insurance Policy to the Indenture Trustee
for the benefit of the Noteholders.]

     "Underwriter" shall mean [                   ].

     Section 1.2 Other Definitional Provisions.

          (a) Capitalized terms used herein and not otherwise defined herein
have the meanings assigned to them in the Sale and Servicing Agreement or, if
not defined therein, in the Indenture.

          (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 generally accepted accounting principles. 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 generally
accepted accounting principles, 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; Section and Exhibit
references contained in this Agreement are references to Sections 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 and neuter genders of such terms.

          (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.

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                                   ARTICLE II

                                  ORGANIZATION

     Section 2.1 Name. The Trust created hereby shall be known as "Household
Home Equity Loan Trust 200_-_," in which name the Owner Trustee may conduct the
business of the Trust and make and execute contracts and other instruments on
behalf of the Trust and the Trust may sue and be sued.

     Section 2.2 Office. The office of the Trust shall be in care of the Owner
Trustee at the Corporate Trust Office or at such other address in the State of
Delaware as the Owner Trustee may designate by written notice to the Transferor.

     Section 2.3 Purposes and Powers.

          (a)   The purpose of the Trust is to engage in the following
     activities:

          (i)   to issue the Notes pursuant to the Indenture and the Ownership
     Interest pursuant to this Agreement and to sell such Notes and Ownership
     Interest;

          (ii)  with the proceeds of the sale of the Notes and the Ownership
     Interest, to fund start-up and transactional expenses of the Trust and to
     pay the balance to the Depositor, as its interests may appear pursuant to
     the Sale and Servicing Agreement;

          (iii) to assign, grant, transfer, pledge, mortgage and convey the
     Trust Estate pursuant to the Indenture and to hold, manage and distribute
     to the Transferor pursuant to the terms of the Sale and Servicing Agreement
     any portion of the Trust Estate released from the lien of, and remitted to
     the Trust pursuant to, the Indenture;

          (iv)  to enter into and perform its obligations under the Transaction
     Documents to which it is to be a party;

          (v)   to engage in those activities, including entering into
     agreements, that are necessary, suitable or convenient to accomplish the
     foregoing or are incidental thereto or connected therewith; and

          (vi)  subject to compliance with the Transaction Documents, to engage
     in such other activities as may be required in connection with conservation
     of the Owner Trust Estate and the making of distributions to the
     Noteholders and the Transferor.

The Trust is hereby authorized to engage in the foregoing activities. The Trust
shall not engage in any activity other than in connection with the foregoing or
other than as required or authorized by the terms of this Agreement or the
Transaction Documents.

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     Section 2.4 Appointment of Owner Trustee. The Depositor hereby appoints the
Owner Trustee as trustee of the Trust effective as of the date hereof, to have
all the rights, powers and duties set forth herein.

     Section 2.5 Initial Capital Contribution of Owner Trust Estate. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Trust,
as of the date hereof, the sum of $1. The Owner Trustee hereby acknowledges
receipt in trust from the Depositor, as of the date hereof, of the foregoing
contribution, which shall constitute the initial Owner Trust Estate and shall be
deposited in the Collection Account. The Depositor shall pay organizational
expenses of the Trust as they may arise or shall, upon the request of the Owner
Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the
Owner Trustee.

     Section 2.6 Declaration of Trust. The Owner Trustee hereby declares that it
will hold the Owner Trust Estate in trust upon and subject to the conditions set
forth herein for the use and benefit of the Transferor, subject to the
obligations of the Trust under the Transaction Documents. It is the intention of
the parties hereto that the Trust constitute a business trust under the Business
Trust Statute and that this Agreement constitute the governing instrument of
such business trust. It is the intention of the parties hereto that, solely for
income and franchise tax purposes, the Trust shall be treated as a security
arrangement, with the assets of the Trust being the Trust Estate and the
Transferor being the owner of the Ownership Interest. The parties agree that,
unless otherwise required by appropriate tax authorities, the Trust will file or
cause to be filed annual or other necessary returns, reports and other forms, if
any, consistent with the characterization of the Trust as provided in the
preceding sentence for such tax purposes. Effective as of the date hereof, the
Owner Trustee shall have all rights, powers and duties set forth herein and in
the Business Trust Statute with respect to accomplishing the purposes of the
Trust. The Owner Trustee shall file the Certificate of Trust with the Secretary
of State of the State of Delaware.

     Section 2.7 Title to Trust Property.

          (a) Subject to the Indenture, legal title to all the Owner Trust
Estate shall be vested at all times in the Trust as a separate legal entity
except where applicable law in any jurisdiction requires title to any part of
the Owner Trust Estate to be vested in a trustee or trustees, in which case
title shall be deemed to be vested in the Owner Trustee, a co-owner trustee
and/or a separate trustee, as the case may be.

          (b) The Transferor shall not have legal title to any part of the Owner
Trust Estate. No transfer by operation of law or otherwise of any interest of
the Transferor shall operate to terminate this Agreement or the trusts hereunder
or entitle any transferee to an accounting or to the transfer to it of any part
of the Owner Trust Estate.

     Section 2.8 Situs of Trust. The Trust will be located and administered in
the State of Delaware. All bank accounts maintained by the Owner Trustee on
behalf of the Trust shall be located in the State of Delaware or the State
of [      ]. The Trust shall not have any employees; provided, however, that
nothing herein shall restrict or prohibit the Owner Trustee

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from having employees within or without the State of Delaware. Payments will be
received by the Trust only in Delaware or [       ], and payments will be made
by the Trust only from Delaware or [       ]. The only office of the Trust will
be at the Corporate Trust Office in Delaware.

     Section 2.9 Representations and Warranties of the Depositor.

         The Depositor hereby represents and warrants to the Owner Trustee [and
the Insurer] that:

          (a) The Depositor is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware and has the
corporate power to own its assets and to transact the business in which it is
currently engaged. The Depositor is duly qualified to do business as a foreign
corporation and is in good standing in each jurisdiction in which the character
of the business transacted by it or properties owned or leased by it require
such qualification and in which the failure to so qualify would have a material
adverse effect on the business, properties, assets or condition (financial or
other) of the Depositor;

          (b) The Depositor has the power and authority to make, execute,
deliver and perform its obligations under this Agreement and to perform its
obligations with respect to all of the transactions contemplated under this
Agreement, and has taken all necessary corporate action to authorize the
execution, delivery and performance of its obligations under this Agreement.
When executed and delivered, this Agreement will constitute the legal, valid and
binding obligation of the Depositor enforceable in accordance with its terms,
except as enforcement of such terms may be limited by bankruptcy, insolvency or
similar laws affecting the enforcement of creditors' rights generally and by the
availability of equitable remedies (whether in a proceeding at law or in
equity);

          (c) The Depositor is not required to obtain the consent of any other
Person or any consent, license, approval or authorization from, or registration
or declaration with, any governmental authority, bureau or agency in connection
with the execution, delivery, performance, validity or enforceability of this
Agreement, except for such consents, licenses, approvals or authorizations, or
registrations or declarations, as shall have been obtained or filed, as the case
may be;

          (d) The execution and delivery of this Agreement and the performance
of the transactions contemplated hereby by the Depositor will not violate any
provision of any existing law or regulation or any order or decree of any court
applicable to the Depositor or any provision of the Certificate of Incorporation
or Bylaws of the Depositor, or constitute a material breach of any mortgage,
indenture, contract or other agreement to which the Depositor is a party or by
which the Depositor may be bound; and

          (e) No litigation or administrative proceeding of or before any court,
tribunal or governmental body is currently pending, or to the knowledge of the
Depositor threatened, against the Depositor or any of its properties or with
respect to this Agreement which in the opinion of

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the Depositor has a reasonable likelihood of resulting in a material adverse
effect on the transactions contemplated by this Agreement.

     Section 2.10 Federal Income Tax Allocations. Net income of the Trust for
any month, as determined for Federal income tax purposes (and each item of
income, gain, loss and deduction entering into the computation thereof), shall
be allocated to the Transferor.

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                                  ARTICLE III

           OWNERSHIP INTEREST AND TRANSFERS OF THE OWNERSHIP INTEREST

     Section 3.1 Initial Ownership. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.5, the Transferor shall be
the sole beneficial owner of the Trust.

     Section 3.2 The Ownership Interest. The Ownership Interest (as defined
below) shall be uncertificated and shall represent the entire beneficial
ownership interest in the Owner Trust Estate, subject to the debt
represented by the Notes (the "Ownership Interest" or "Transferor Interest").
The Ownership Interest may be assigned by the Transferor as provided in Section
3.13.

     Upon the completion of a transfer in accordance with the terms and
conditions of this Article III, a transferee of the Ownership Interest shall
become the Transferor, and shall be entitled to the rights and subject to the
obligations of the Transferor hereunder, upon such transferee's acceptance of
the Ownership Interest duly registered in such transferee's name pursuant to
Section 3.4 below.

     Section 3.3 [Reserved].

     Section 3.4 Registration of Transfer and Exchange of Ownership Interest.
The Owner Trustee hereby appoints [         ] as Registrar under this Agreement.
The Registrar shall keep or cause to be kept, at the office or agency maintained
pursuant to Section 3.8, a Register in which, subject to such reasonable
regulations as it may prescribe, the Register shall provide for the registration
of the Ownership Interest and of transfer and exchange of the Ownership Interest
as herein provided. The Registrar, subject to Section 3.13 hereof, on behalf of
the Trust shall note on the Register the transfer of the Ownership Interest.

     Section 3.5 [Reserved].

     Section 3.6 Persons Deemed Transferors. Prior to due assignment of the
Ownership Interest for registration of transfer, the Depositor, the Owner
Trustee, the Indenture Trustee[, the Insurer] and the Registrar may treat the
Person in whose name the Ownership Interest shall be registered in the Register
as the owner thereof for the purpose of receiving distributions pursuant to
Section 5.2 hereof and for all other purposes whatsoever, and none of the
Depositor, the Owner Trustee, the Indenture Trustee[, the Insurer] or the
Registrar shall be bound by any notice to the contrary.

     Section 3.7 [Reserved]

     Section 3.8 Maintenance of Office or Agency. The Indenture Trustee shall
maintain an office or offices or agency or agencies (initially, the Corporate
Trust Office of the Indenture Trustee) where instructions for the transfer of
the Ownership Interest may be delivered for registration of transfer [or
exchange] pursuant to Section 3.4 and where notices and demands to or upon the
Registrar in respect of the Ownership Interest and the Transaction Documents may

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be served. The Indenture Trustee shall give prompt written notice to [the
Insurer,] the Owner Trustee and the Transferor of any change in the location of
the Register or any such office or agency.

     Section 3.9 Appointment of Paying Agent. The Owner Trustee hereby appoints
the Indenture Trustee as Paying Agent under this Agreement. The Paying Agent
shall make distributions to the Transferor from the Collection Account pursuant
to Section 5.2 hereof and Section 5.01 of the Sale and Servicing Agreement and
shall report the amounts of such distributions to the Owner Trustee. The Paying
Agent shall have the revocable power to withdraw funds from the Collection
Account for the purpose of making the distributions referred to above. In the
event that the Indenture Trustee shall no longer be the Paying Agent hereunder,
the Owner Trustee shall appoint a successor to act as Paying Agent (which shall
at all times be a corporation duly incorporated and validly existing under the
laws of the United States of America or any state thereof, authorized under such
laws to exercise corporate trust powers and subject to supervision or
examination by federal or state authorities). The Owner Trustee shall cause such
successor Paying Agent or any additional Paying Agent appointed by the Owner
Trustee to execute and deliver to the Owner Trustee an instrument in which such
successor Paying Agent or additional Paying Agent shall agree with the Owner
Trustee that as Paying Agent, such successor Paying Agent or additional Paying
Agent will hold all sums, if any, held by it for payment to the Transferor in
trust for the benefit of the Transferor until such sums shall be paid to the
Transferor. The Paying Agent shall return all unclaimed funds to the Owner
Trustee, and upon removal of a Paying Agent, such Paying Agent shall also return
all funds in its possession to the Owner Trustee. Any reference in this
Agreement to the Paying Agent shall include any co-paying agent unless the
context requires otherwise.

     Section 3.10 [Reserved].

     Section 3.11 [Reserved].

     Section 3.12 [Reserved].

     Section 3.13 Restrictions on Transfers of Ownership Interest. To the
fullest extent permitted by applicable law, the Ownership Interest shall not be
sold, pledged, transferred or assigned, except as provided below.

          (a) The Ownership Interest may not be acquired by or for the account
of (i) an employee benefit plan (as defined in Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA")) that is subject to
the provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1)
of the Code, or (iii) any entity, including an insurance company separate
account or general account, whose underlying assets include plan assets by
reason of a plan's investment in the entity (each, a "Benefit Plan"). Each
Prospective owner of the Ownership Interest, other than HFC or an affiliate of
HFC, shall represent and warrant, in writing, to the Owner Trustee and the
Registrar and any of their respective successors that:

          (i) Such Person is (A) a "qualified institutional buyer" as defined in
     Rule 144A under the Securities Act of 1933, as amended (the "Securities
     Act"), and is

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     aware that the seller of such Ownership Interest may be relying on the
     exemption from the registration requirements of the Securities Act provided
     by Rule 144A and is acquiring such Ownership Interest for its own account
     or for the account of one or more qualified institutional buyers for whom
     it is authorized to act, (B) an "accredited investor" as defined in Rule
     501(a) under the Securities Act , or (C) a Person involved in the
     organization or operation of the Trust or an affiliate of such Person
     within the meaning of Rule 3a-7 of the 1940 Act, as amended (including, but
     not limited to, HFC or the Transferor).

          (ii) Such Person understands that such Ownership Interest has not been
     and will not be registered under the Securities Act and may be offered,
     sold, pledged or otherwise transferred only to a person whom the seller
     reasonably believes is (A) a "qualified institutional buyer," (B) "an
     accredited investor" or (C) a Person involved in the organization or
     operation of the Trust or an affiliate of such Person, in each case in a
     transaction meeting the requirements of Rule 144A under the Securities Act
     or that is otherwise exempt from registration under the Securities Act and
     in accordance with any applicable securities laws of any state of the
     United States.

          (iii) Such Person shall comply with the provisions of Section 3.13(b),
     as applicable, relating to the ERISA restrictions with respect to the
     acceptance or acquisition of such Ownership Interest .

          (b) Each Prospective Transferor, other than the Transferor or an
affiliate of the Transferor, shall either:

          (i) represent and warrant, in writing, to the Owner Trustee and the
     Registrar and any of their respective successors, in accordance with
     Exhibit B hereto, that the Prospective Transferor is not (A) an "employee
     benefit plan" within the meaning of Section 3(3) of the Employee Retirement
     Income Security Act of 1974, as amended ("ERISA"), or (B) a "plan" within
     the meaning of Section 4975(e)(1) of the Code (any such plan or employee
     benefit plan, a "Plan") or (C) any entity, including an insurance company
     separate account or general account, whose underlying assets include plan
     assets by reason of a plan's investment in the entity and is not directly
     or indirectly purchasing such Ownership Interest on behalf of, as
     investment manager of, as named fiduciary of, as trustee of, or with assets
     of a Plan; or

          (ii) furnish to the Owner Trustee and the Registrar and any of their
     respective successors an opinion of counsel acceptable to such persons that
     (A) the proposed issuance or transfer of such Ownership Interest to such
     Prospective Transferor will not cause any assets of the Trust to be deemed
     assets of a Plan, and (B) the proposed holding or transfer of such
     Ownership Interest will not cause the Owner Trustee or the Registrar or any
     of their respective successors to be a fiduciary of a Plan within the
     meaning of Section 3(21) of ERISA and will not give rise to a transaction
     described in Section 406 of

                                       11
<PAGE>
     ERISA or Section 4975(c)(1) of the Code for which a statutory or
     administrative exemption is unavailable.

          (c) [Reserved].

          (d) The Prospective Transferor, other than the initial Transferor or
an affiliate of the initial Transferor, shall obtain an Opinion of Counsel to
the effect that, as a matter of federal income tax law, such Prospective
Transferor is permitted to accept the transfer of the Ownership Interest.

          (e) The Ownership Interest may not be pledged or transferred without
delivery to the Registrar of an Opinion of Counsel to the effect that such
transfer would not jeopardize the tax treatment of the Trust, would not subject
the Trust to an entity-level tax, and would not jeopardize the status of the
Notes as debt for all purposes (including a withholding tax on the Home Equity
Loans).

          (f) No pledge or transfer of the Ownership Interest shall be effective
unless such purchase or transfer is (i) to a single beneficial owner and (ii)
accompanied by an opinion of counsel satisfactory to the Owner Trustee, which
Opinion of Counsel shall not be an expense of the Trust, the Registrar or the
Master Servicer, to the effect such pledge or transfer will not cause the Trust
to be treated for federal income tax purposes as a taxable mortgage pool,
association or a publicly traded partnership taxable as a corporation.

          (g) Transfer of the Ownership Interest shall be made only if
accompanied by an opinion of counsel satisfactory to the Owner Trustee, which
opinion of counsel shall not be an expense of the Trust, the Owner Trustee or
the Master Servicer, to the effect such transfer will not cause the Trust to be
treated for federal income tax purposes as an association, a taxable mortgage
pool or a publicly traded partnership taxable as a corporation.

                                       12
<PAGE>

                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

     Section 4.1 Prior Notice to the Transferor [and the Insurer] with Respect
to Certain Matters. With respect to the following matters, the Owner Trustee
shall not take action, and neither the Transferor [nor the Insurer] shall direct
the Owner Trustee to take any action, unless [(i) the Insurer has provided its
written consent and (ii)] at least 30 days before the taking of such action, the
Owner Trustee shall have notified the Transferor in writing of the proposed
action and neither the Transferor [nor the Insurer] shall have notified the
Owner Trustee in writing prior to the 30th day after such notice is given that
the Transferor has withheld consent or the Transferor [or the Insurer] has
provided alternative direction:

          (a) the initiation of any claim or lawsuit by the Trust (except claims
or lawsuits brought in connection with the collection of the Home Equity Loans)
and the compromise of any action, claim or lawsuit brought by or against the
Trust (except with respect to the aforementioned claims or lawsuits for
collection of the Home Equity Loans);

          (b) the election by the Trust to file an amendment to the Certificate
of Trust (unless such amendment is required to be filed under the Business Trust
Statute);

          (c) the amendment or other change to this Agreement or any Transaction
Document in circumstances where the consent of any Noteholder [or the Insurer]
is required;

          (d) the amendment or other change to this Agreement or any Transaction
Document in circumstances where the consent of any Noteholder [or the Insurer]
is not required and such amendment materially adversely affects the interest of
the Transferor;

          (e) the appointment pursuant to the Indenture of a successor Note
Registrar, Paying Agent or Indenture Trustee, or the consent to the assignment
by the Note Registrar, Paying Agent or Indenture Trustee of its obligations
under the Indenture;

          (f) the consent to the calling or waiver of any default of any
Transaction Document;

          (g) the consent to the assignment by the Indenture Trustee of their
respective obligations under any Transaction Document;

          (h) except as provided in Article IX hereof, dissolve, terminate or
liquidate the Trust in whole or in part;

          (i) merge or consolidate the Trust with or into any other entity, or,
except as contemplated by the Sale and Servicing Agreement, convey or transfer
all or substantially all of the Trust's assets to any other entity;

                                       13
<PAGE>
          (j) cause the Trust to incur, assume or guaranty any indebtedness
other than the Notes, as set forth in this Agreement;

          (k) do any act that conflicts with any other Transaction Document;

          (l) do any act which would make it impossible to carry on the ordinary
business of the Trust;

          (m) confess a judgment against the Trust;

          (n) possess Trust assets, or assign the Trust's right to property, for
other than a Trust purpose; or

          (o) change the Trust's purpose and powers from those set forth in this
Agreement.

     In addition, except as specifically contemplated by the Transaction
Documents, the Trust shall not commingle its assets with those of any other
entity. The Trust shall maintain its financial and accounting books and records
separate from those of any other entity. Except as expressly set forth herein,
the Trust shall pay its indebtedness, operating expenses from its own funds, and
the Trust shall not pay the indebtedness, operating expenses and liabilities of
any other Person. The Trust shall maintain appropriate minutes or other records
of all appropriate actions and shall maintain its office separate from the
offices of the Depositor or HFC, and any of their respective affiliates. This
Agreement and the Transaction Documents shall be the only agreements among the
parties hereto with respect to the creation, operation and termination of the
Trust. For accounting purposes, the Trust shall be treated as an entity separate
and distinct from the Transferor. The pricing and other material terms of all
transactions and agreements to which the Trust is a party shall be intrinsically
fair to all parties thereto.

     The Owner Trustee shall not have the power, except upon the direction of
the Transferor [and with the consent of the Insurer (which consent shall not be
unreasonably withheld)], and to the extent otherwise consistent with the
Transaction Documents, to (i) remove or replace the Master Servicer or the
Indenture Trustee, (ii) institute proceedings to have the Trust declared or
adjudicated a bankrupt or insolvent, (iii) consent to the institution of
bankruptcy or insolvency proceedings against the Trust, (iv) file a petition or
consent to a petition seeking reorganization or relief on behalf of the Trust
under any applicable federal or state law relating to bankruptcy, (v) consent to
the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or
any similar official) of the Trust or a substantial portion of the property of
the Trust, (vi) make any assignment for the benefit of the Trust's creditors,
(vii) cause the Trust to admit in writing its inability to pay its debts
generally as they become due, or (viii) take any action, or cause the Trust to
take any action, in furtherance of any of the foregoing (any of the above, a
"Bankruptcy Action"). So long as the Indenture remains in effect, the Transferor
shall not have the power to take, and shall not take, any Bankruptcy Action with
respect to the Trust or direct the Owner Trustee to take any Bankruptcy Action
with respect to the Trust.

                                       14
<PAGE>
     Section 4.2 [Reserved].

     Section 4.3 Action by Transferor with Respect to Bankruptcy. To the fullest
extent permitted by applicable law, the Owner Trustee shall not have the power
to commence a voluntary proceeding in bankruptcy relating to the Trust without
the prior consent and approval of [(i) the Insurer;] (ii) the Transferor; (iii)
the Owner Trustee; and (iv) the Indenture Trustee, and the delivery to the Owner
Trustee by the Transferor of a certificate certifying that such Transferor
reasonably believes that the Trust is insolvent. The terms of this Section 4.3
shall survive for one year and one day following the termination of this
Agreement.

     Section 4.4 Restrictions on Transferor's Power. The Transferor shall not
direct the Owner Trustee to take or refrain from taking any action if such
action or inaction would be contrary to any obligation of the Trust or the Owner
Trustee under this Agreement or any of the Transaction Documents or would be
contrary to Section 2.3 hereof, nor shall the Owner Trustee be obligated to
follow any such direction, if given.

                                       15
<PAGE>

                                   ARTICLE V

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

     Section 5.1 Establishment of Trust Account. The Owner Trustee shall cause
the Indenture Trustee to establish and maintain with the Indenture Trustee for
the benefit of the Owner Trustee one or more Eligible Accounts in accordance
with the Indenture.

     Section 5.2 Application Of Trust Funds.

          (a) On each Payment Date, the Paying Agent shall make the
distributions and payments set forth in Section 5.01 of the Sale and Servicing
Agreement from amounts on deposit in the Collection Account.

          (b) On or before the third Business Day following each Payment Date,
the Paying Agent shall send to DTC the statement provided to the Paying Agent by
the Indenture Trustee pursuant to Section 5.03 of the Sale and Servicing
Agreement with respect to such Payment Date.

          (c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to the Transferor, such tax shall reduce the
amount otherwise distributable to the Transferor in accordance with this Section
5.2. The Paying Agent is hereby authorized and directed to retain from amounts
otherwise distributable to the Transferor sufficient funds for the payment of
any tax that is legally owed by the Trust (but such authorization shall not
prevent the Paying Agent from contesting any such tax in appropriate
proceedings, and withholding payment of such tax, if permitted by law, pending
the outcome of such proceedings). The amount of any withholding tax imposed with
respect to the Transferor shall be treated as cash distributed to the Transferor
at the time it is withheld by the Trust and remitted to the appropriate taxing
authority. If there is a possibility that withholding tax is payable with
respect to a distribution (such as a distribution to a non-U.S. Transferor), the
Paying Agent may in its sole discretion withhold such amounts in accordance with
this paragraph (c). In the event that the Transferor wishes to apply for a
refund of any such withholding tax, the Owner Trustee and the Paying Agent shall
reasonably cooperate with the Transferor in making such claim so long as the
Transferor agrees to reimburse the Owner Trustee and the Paying Agent for any
out-of-pocket expenses incurred.

     Section 5.3 Method of Payment. Distributions required to be made to the
Transferor on any Payment Date shall be made to the Transferor of record on the
preceding Record Date in the manner set forth in Section 5.01 of the Sale and
Servicing Agreement.

     Section 5.4 [Reserved].

     Section 5.5 Accounting and Reports to the Transferor, the Internal Revenue
Service and Others. The Owner Trustee shall deliver to the Transferor such
information, reports or statements as may be required by the Code and applicable
Treasury Regulations and as may be

                                       16
<PAGE>
required to enable the Transferor to prepare its respective federal and state
income tax returns. Consistent with the Trust's characterization for tax
purposes as a security arrangement for the issuance of non-recourse debt, no
federal income tax return shall be filed on behalf of the Trust unless either
(a) the Trust or the Transferor shall receive an Opinion of Counsel based on a
change in applicable law occurring after the date hereof that the Code requires
such a filing or (b) the Internal Revenue Service shall determine that the Trust
is required to file such a return. In the event that the Trust is required to
file tax returns, the Owner Trustee shall elect under Section 1278 of the Code
to include in income currently any market discount that accrues with respect to
the Home Equity Loans. The Owner Trustee shall prepare or shall cause to be
prepared any tax returns required to be filed by the Trust and shall remit such
returns to the Transferor at least five days before such returns are due to be
filed. The Transferor, or any other such party required by law, shall promptly
sign such returns and deliver such returns after signature to the Owner Trustee
and such returns shall be filed by, or at the direction of, the Owner Trustee
with the appropriate tax authorities. In no event shall the Transferor be liable
for any liabilities, costs or expenses of the Trust arising out of the
application of any tax law, including federal, state, foreign or local income or
excise taxes or any other tax imposed on or measured by income (or any interest,
penalty or addition with respect thereto or arising from a failure to comply
therewith), except for any such liability, cost or expense attributable to the
Transferor's breach of its obligations under this Agreement.

     Section 5.6 Signature on Returns.

     The Owner Trustee shall sign on behalf of the Trust the tax returns of the
Trust, if any, unless applicable law requires a Transferor to sign such
documents, in which case such documents shall be signed by the Transferor.

                                       17
<PAGE>
                                   ARTICLE VI

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

     Section 6.1 General Authority. The Owner Trustee is authorized and directed
to execute and deliver or cause to be executed and delivered the Notes, and the
Transaction Documents to which the Trust is to be a party and each certificate
or other document attached as an exhibit to or contemplated by the Transaction
Documents to which the Trust is to be a party and any amendment or other
agreement or instrument described in Article III, in each case, in such form as
the Owner Trustee shall approve, as evidenced conclusively by the Owner
Trustee's execution thereof, and, on behalf of the Trust, to direct the
Indenture Trustee to authenticate and deliver the Class A Notes in an aggregate
principal amount equal to $[     ]. In addition to the foregoing, the Owner
Trustee is authorized, but shall not be obligated, to take all actions required
of the Trust pursuant to the Transaction Documents.

     Section 6.2 General Duties. It shall be the duty of the Owner Trustee to
discharge (or cause to be discharged) all of its responsibilities pursuant to
the terms of this Agreement and the Transaction Documents to which the Trust is
a party and to administer the Trust in the interest of the Transferor, subject
to the Transaction Documents and in accordance with the provisions of this
Agreement. Notwithstanding the foregoing, the Owner Trustee shall be deemed to
have discharged its duties and responsibilities hereunder and under the
Transaction Documents to the extent the Administrator has agreed in the
Administration Agreement to perform any act or to discharge any duty of the
Owner Trustee hereunder or under any Transaction Document, and the Owner Trustee
shall not be held liable for the default or failure of the Administrator to
carry out their respective obligations under the Administration Agreement.

     Section 6.3 Action upon Instruction.

          (a) Subject to Article IV herein and in accordance with the terms of
the Transaction Documents, the Transferor may by written instruction direct the
Owner Trustee in the management of the Trust but only to the extent consistent
with the limited purpose of the Trust. Such direction may be exercised at any
time by written instruction of the Transferor pursuant to Article IV.

          (b) Notwithstanding the foregoing, the Owner Trustee shall not be
required to take any action hereunder or under any Transaction Document if the
Owner Trustee shall have reasonably determined, or shall have been advised by
counsel, that such action is likely to result in liability on the part of the
Owner Trustee or is contrary to the terms hereof or of any Transaction Document
or is otherwise contrary to law.

          (c) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Agreement or under
any Transaction Document, the Owner Trustee shall promptly give notice (in such
form as shall be appropriate under the circumstances) to the Transferor [and the
Insurer (so long as no Insurer Default exists)] requesting instruction from the
Transferor [and the Insurer (so long as no Insurer Default exists)]

                                       18
<PAGE>
as to the course of action to be adopted, and to the extent the Owner Trustee
acts in good faith in accordance with any written instruction of the Transferor
[or the Insurer] received, the Owner Trustee shall not be liable on account of
such action to any Person. If the Owner Trustee shall not have received
appropriate instruction within 10 days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be necessary
under the circumstances) it may, but shall be under no duty to, take or refrain
from taking such action, not inconsistent with this Agreement or the Transaction
Documents, as it shall deem to be in the best interest of the Transferor, and
shall have no liability to any Person for such action or inaction.

          (d) In the event that the Owner Trustee is unsure as to the
application of any provision of this Agreement or any Transaction Document or
any such provision is ambiguous as to its application, or is, or appears to be,
in conflict with any other applicable provision, or in the event that this
Agreement provides no direction to the Owner Trustee or is silent or is
incomplete as to the course of action that the Owner Trustee is required to take
with respect to a particular set of facts, the Owner Trustee may give notice (in
such form as shall be appropriate under the circumstances) to the Transferor
[and the Insurer] requesting instruction and, to the extent that the Owner
Trustee acts or refrains from acting in good faith in accordance with any such
instruction received from [the Insurer, or if there is an Insurer Default,] the
Transferor, the Owner Trustee shall not be liable, on account of such action or
inaction, to any Person. If the Owner Trustee shall not have received
appropriate instruction within 10 days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be necessary
under the circumstances) it may, but shall be under no duty to, take or refrain
from taking such action, not inconsistent with this Agreement or the Transaction
Documents, as it shall deem to be in the best interest of the Transferor, and
shall have no liability to any Person for such action or inaction.

     Section 6.4 No Duties Except as Specified in this Agreement, the
Transaction Documents or in Instructions. The Owner Trustee shall not have any
duty or obligation to manage, make any payment with respect to, register,
record, sell, dispose of, or otherwise deal with the Owner Trust Estate, or to
otherwise take or refrain from taking any action under, or in connection with,
any document contemplated hereby to which the Owner Trustee or the Trust is a
party, except as expressly provided by the terms of this Agreement, any
Transaction Document or in any document or written instruction received by the
Owner Trustee pursuant to Section 6.3; and no implied duties or obligations
shall be read into this Agreement or any Transaction Document against the Owner
Trustee. The Owner Trustee shall have no responsibility for filing any financing
or continuation statement in any public office at anytime or to otherwise
perfect or maintain the perfection of any security interest or lien granted to
it hereunder or to prepare or file any Securities and Exchange Commission filing
for the Trust or to record this Agreement or any Transaction Document. The Owner
Trustee nevertheless agrees that it will, at its own cost and expense, promptly
take all action as may be necessary to discharge any liens on any part of the
Owner Trust Estate that result from actions by, or claims against, the Owner
Trustee that are not related to the ownership or the administration of the Owner
Trust Estate.

                                       19
<PAGE>
     Section 6.5 No Action Except Under Specified Documents or Instructions. The
Owner Trustee shall not manage, control, use, sell, dispose of or otherwise deal
with any part of the Owner Trust Estate except (i) in accordance with the powers
granted to and the authority conferred upon the Owner Trustee pursuant to this
Agreement, (ii) in accordance with the Transaction Documents and (iii) in
accordance with any document or instruction delivered to the Owner Trustee
pursuant to Section 6.3 above.

     Section 6.6 Restrictions. The Owner Trustee shall not take any action (a)
that is inconsistent with the purposes of the Trust set forth in Section 2.3
hereof or (b) that, to the actual knowledge of the Owner Trustee, would result
in the Trust's becoming taxable as a corporation for Federal income tax
purposes. The Transferor shall not direct the Owner Trustee to take action that
would violate the provisions of this Section 6.6.

                                       20
<PAGE>

                                  ARTICLE VII

                          CONCERNING THE OWNER TRUSTEE

     Section 7.1 Acceptance of Trusts and Duties. The Owner Trustee accepts the
trusts hereby created and agrees to perform its duties hereunder with respect to
such trusts but only upon the terms of this Agreement and the Transaction
Documents. The Owner Trustee also agrees to disburse all moneys actually
received by it constituting part of the Owner Trust Estate upon the terms of the
Transaction Documents and this Agreement. The Owner Trustee shall not be
answerable or accountable hereunder or under any Transaction Document under any
circumstances, except (i) for its own willful misconduct, bad faith or
negligence or (ii) in the case of the inaccuracy of any representation or
warranty contained in Section 7.3 below expressly made by the Owner Trustee. In
particular, but not by way of limitation (and subject to the exceptions set
forth in the preceding sentence):

          (a) the Owner Trustee shall not be liable for any error of judgment
made by a responsible officer of the Owner Trustee;

          (b) no provision of this Agreement or any Transaction Document shall
require the Owner Trustee to expend or risk funds or otherwise incur any
financial liability in the performance of any of its rights or powers hereunder
or under any Transaction Document if the Owner Trustee shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured or provided to it;

          (c) under no circumstances shall the Owner Trustee be liable for
indebtedness evidenced by or arising under any of the Transaction Documents,
including the principal of and interest on the Notes;

          (d) the Owner Trustee shall not be responsible for or in respect of
the validity or sufficiency of this Agreement or for the due execution hereof by
the Depositor or for the form, character, genuineness, sufficiency, value or
validity of any of the Owner Trust Estate or for or in respect of the validity
or sufficiency of the Transaction Documents, other than the certificate of
authentication on the Ownership Interest, and the Owner Trustee shall in no
event assume or incur any liability, duty, or obligation to any Noteholder, to
the Transferor or other than as expressly provided for herein and in the
Transaction Documents;

          (e) the Owner Trustee shall not be liable for the default or
misconduct of the Indenture Trustee or the Master Servicer under any of the
Transaction Documents or otherwise and the Owner Trustee shall have no
obligation or liability to perform the obligations of the Trust under this
Agreement or the Transaction Documents that are required to be performed by the

                                       21
<PAGE>

Indenture Trustee under the Indenture, the Master Servicer under the Sale and
Servicing Agreement, the Administrator or [ ] under the Administration Agreement
or the Registrar or any Paying Agent hereunder;

          (f) the Owner Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Agreement, or to institute, conduct or
defend any litigation under this Agreement or otherwise or in relation to this
Agreement or any Transaction Document, at the request, order or direction of the
Transferor [or the Insurer], unless such Transferor [or Insurer] has offered to
the Owner Trustee security or indemnity satisfactory to it against the costs,
expenses and liabilities that may be incurred by the Owner Trustee therein or
thereby. The right of the Owner Trustee to perform any discretionary act
enumerated in this Agreement or in any Transaction Document shall not be
construed as a duty, and the Owner Trustee shall not be answerable for other
than its gross negligence or willful misconduct in the performance of any such
act; and

          (g) The Owner Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in accordance with the instructions of [the
Insurer,] the Depositor or any Owner to the extent such action or direction is
permitted by the Transaction Documents.

     Section 7.2 Furnishing of Documents. The Owner Trustee shall furnish (a) to
the Transferor promptly upon receipt of a written request therefor, duplicates
or copies of all reports, notices, requests, demands, certificates, financial
statements and any other instruments furnished to the Owner Trustee under the
Transaction Documents and (b) to Noteholders [and the Insurer] promptly upon
written request therefor, copies of the Sale and Servicing Agreement and this
Agreement.

     Section 7.3 Representations and Warranties.

     The Owner Trustee hereby represents and warrants to the Depositor, for the
benefit of the Transferor [and the Insurer], that:

          (a) It is a banking corporation duly organized and validly existing in
good standing under the laws of the State of Delaware. It has all requisite
corporate power and authority to execute, deliver and perform its obligations
under this Agreement;

          (b) It has taken all corporate action necessary to authorize the
execution and delivery by it of this Agreement, and this Agreement will be
executed and delivered by one of its officers who is duly authorized to execute
and deliver this Agreement on its behalf;

          (c) Neither the execution nor the delivery by it of this Agreement nor
the consummation by it of the transactions contemplated hereby nor compliance by
it with any of the terms or provisions hereof will contravene any Federal or
Delaware law, governmental rule or regulation governing the banking or trust
powers of the Owner Trustee or any judgment or order binding on it, or
constitute any default under its charter documents or by-laws or any indenture,
mortgage, contract, agreement or instrument to which it is a party or by which
any of its properties may be bound;

                                       22
<PAGE>
          (d) The execution, delivery, authentication and performance by the
Owner Trustee of this Agreement will not require the authorization, consent or
approval of, the giving of notice to, the filing or registration with, or the
taking of any other action with respect to, any governmental authority or
agency;

          (e) This Agreement has been duly authorized, executed and delivered by
the Owner Trustee and constitutes a valid, legal and binding obligation of the
Owner Trustee, enforceable against it in accordance with the terms hereof,
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
other laws affecting the enforcement of creditors' rights generally and to
general principles of equity, regardless of whether such enforcement is
considered in a proceeding in equity or at law;

          (f) The Owner Trustee 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 Owner Trustee or its properties or might have consequences
that would materially adversely affect its performance hereunder; and

          (g) No litigation is pending or, to the best of the Owner Trustee's
knowledge, threatened against the Owner Trustee which would prohibit its
entering into this Agreement or performing its obligations under this Agreement.

     Section 7.4 Reliance; Advice of Counsel.

          (a) The Owner Trustee shall incur no liability to anyone in acting
upon any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond, or other document or paper believed by it to
be genuine and believed by it to be signed by the proper party or parties. The
Owner Trustee may accept a certified copy of a resolution of the board of
directors or other governing body of any corporate party as conclusive evidence
that such resolution has been duly adopted by such body and that the same is in
full force and effect. As to any fact or matter the method of the determination
of which is not specifically prescribed herein, the Owner Trustee may for all
purposes hereof rely on a certificate, signed by the president or any vice
president or by the treasurer or other authorized officer of the relevant party,
as to such fact or matter and such certificate shall constitute full protection
to the Owner Trustee for any action taken or omitted to be taken by it in good
faith in reliance thereon.

          (b) In the exercise or administration of the trusts hereunder and in
the performance of its duties and obligations under this Agreement or the
Transaction Documents, the Owner Trustee (i) may act directly or through its
agents or attorneys pursuant to agreements entered into with any of them, and
the Owner Trustee shall not be liable for the conduct or misconduct of such
agents or attorneys if such agents or attorneys shall have been selected by the
Owner Trustee with reasonable care, and (ii) may consult with counsel,
accountants and other skilled persons to be selected with reasonable care and
employed by it. The Owner Trustee shall not be liable for anything done,
suffered or omitted in good faith by it in accordance with the opinion or advice
of any such counsel, accountants or other such persons and not contrary to this
Agreement or any Transaction Document.

     Section 7.5 Not Acting in Individual Capacity. Except as provided in this
Article VII, in accepting the trusts hereby created, [Owner Trustee] acts solely
as Owner Trustee hereunder and not in its individual capacity and all Persons
having any claim against the Owner Trustee by

                                       23
<PAGE>
reason of the transactions contemplated by this Agreement or any Transaction
Document shall look only to the Owner Trust Estate for payment or satisfaction
thereof.

     Section 7.6 Owner Trustee Not Liable for the Ownership Interest or the Home
Equity Loans. The recitals contained herein and in the Ownership Interest (other
than the signature of the Owner Trustee on the Certificate) shall be taken as
the statements of the Depositor, and the Owner Trustee assumes no responsibility
for the correctness thereof. The Owner Trustee makes no representations as to
the validity or sufficiency of this Agreement, of any Transaction Document or of
the Ownership Interest (other than the signature of the Owner Trustee on the
Certificate and as specified in Section 7.3 hereof) or the Notes, or of any Home
Equity Loans or related documents. The Owner Trustee shall at no time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of any Home Equity Loan, or the perfection and priority of any
security interest created by any Home Equity Loan or the maintenance of any such
perfection and priority, or for or with respect to the sufficiency of the Owner
Trust Estate or its ability to generate the payments to be distributed to the
Transferor under this Agreement or to the Noteholders under the Indenture,
including, without limitation: the existence, condition and ownership of any
Mortgaged Property; the existence and enforceability of any insurance thereon;
the existence and contents of any Home Equity Loan on any computer or other
record thereof; the validity of the assignment of any Home Equity Loan to the
Trust or of any intervening assignment; the completeness of any Home Equity
Loan; the performance or enforcement of any Home Equity Loan; the compliance by
the Depositor or the Master Servicer with any warranty or representation made
under any Transaction Document or in any related document or the accuracy of any
such warranty or representation or any action of the Depositor, the Indenture
Trustee, the Administrator or the Master Servicer or any subservicer taken in
the name of the Owner Trustee.

     Section 7.7 Owner Trustee May Own the Ownership Interest and the Notes. The
Owner Trustee in its individual or any other capacity may become the owner or
pledgee of the Ownership Interest or the Notes and may deal with the Depositor,
the Indenture Trustee, the Administrator and the Master Servicer in banking
transactions with the same rights as it would have if it were not Owner Trustee.

     Section 7.8 Licenses. The Owner Trustee shall cause the Trust to use its
best efforts to obtain and maintain the effectiveness of any licenses required
in connection with this Agreement and the Transaction Documents and the
transactions contemplated hereby and thereby until such time as the Trust shall
terminate in accordance with the terms hereof.

                                       24
<PAGE>

                                  ARTICLE VIII

                          COMPENSATION OF OWNER TRUSTEE

     Section 8.1 Owner Trustee's Fees and Expenses. The Owner Trustee shall
receive as compensation for its services hereunder such fees as have been
separately agreed upon before the date hereof between [HFC] and the Owner
Trustee, and the Owner Trustee shall be entitled to be reimbursed by [HFC] for
its other reasonable expenses hereunder, including the reasonable compensation,
expenses and disbursements of such agents, representatives, experts and counsel
as the Owner Trustee may employ in connection with the exercise and performance
of its rights and its duties hereunder.

     Section 8.2 Indemnification. [HFC] shall be liable as primary obligor for,
and shall indemnify the Owner Trustee and its successors, assigns, agents and
servants (collectively, the "Indemnified Parties") from and against, any and all
liabilities, obligations, losses, damages, taxes, claims, actions and suits, and
any and all reasonable costs, expenses and disbursements (including reasonable
legal fees and expenses) of any kind and nature whatsoever (collectively,
"Expenses") which may at any time be imposed on, incurred by, or asserted
against the Owner Trustee or any Indemnified Party in any way relating to or
arising out of this Agreement, the Transaction Documents, the Owner Trust
Estate, the administration of the Owner Trust Estate or the action or inaction
of the Owner Trustee hereunder, except only that [HFC] shall not be liable for
or required to indemnify an Indemnified Party from and against Expenses arising
or resulting from any of the matters described in the third sentence of Section
7.1 hereof. The indemnities contained in this Section 8.2 shall survive the
resignation or termination of the Owner Trustee or the termination of this
Agreement. In the event of any claim, action or proceeding for which indemnity
will be sought pursuant to this Section 8.2, the Owner Trustee's choice of legal
counsel shall be subject to the approval of HFC, which approval shall not be
unreasonably withheld.

     Section 8.3 Payments to the Owner Trustee. Any amounts paid to the Owner
Trustee pursuant to this Article VIII shall be deemed not to be a part of the
Owner Trust Estate immediately after such payment.

                                       25
<PAGE>

                                   ARTICLE IX

                         TERMINATION OF TRUST AGREEMENT

Section 9.1       Termination of Trust Agreement.

          (a) This Agreement (other than Article VIII) and the Trust shall
terminate pursuant to the Business Trust Statute and be of no further force or
effect on the earlier of (i) payment in full of all amounts owing to the Insurer
unless the Insurer shall otherwise consent and (B) the earliest of (i) the final
payment or other liquidation of the last Home Equity Loan remaining in the
Trust; (ii) the optional purchase by the Master Servicer of the Home Equity
Loans as described below and (iii) the Payment Date in [_____]. Notwithstanding
the foregoing, in no event shall the trust created hereby continue beyond the
expiration of 21 years from the date of the last survivor of the descendants of
Joseph P. Kennedy, the late ambassador of the United States to the Court of St.
James's, living on the date hereof. The bankruptcy, liquidation, dissolution,
death or incapacity of the Transferor shall not (x) operate to terminate this
Agreement or the Trust, nor (y) entitle such Transferor's legal representatives
or heirs to claim an accounting or to take any action or proceeding in any court
for a partition or winding-up of all or any part of the Trust or Owner Trust
Estate nor (z) otherwise affect the rights, obligations and liabilities of the
parties hereto.

          (b) The Ownership Interest shall be subject to an early redemption or
termination at the option of the Master Servicer in the manner and subject to
the provisions of Section 8.01 of the Sale and Servicing Agreement.

          (c) Except as provided in Sections 9.1(a) and (b) above, none of the
Depositor, the Administrator, or the Transferor shall be entitled to revoke or
terminate the Trust.

          (d) Notice of any termination of the Trust, specifying the Payment
Date upon which the Transferor shall surrender their Ownership Interest to the
Paying Agent for payment of the final distributions and cancellation, shall be
given by the Registrar to the Transferor[, the Insurer] and the Rating Agencies
mailed within five Business Days of receipt by the Registrar of notice of such
termination pursuant to (a) or (b) above, which notice given by the Owner
Trustee shall state (i) the Payment Date upon or with respect to which final
payment of the Registrar shall be made upon presentation and surrender of the
Ownership Interest at the office of the Paying Agent therein designated, (ii)
the amount of any such final payment and (iii) that the Record Date otherwise
applicable to such Payment Date is not applicable, payments being made only upon
submission of a claim for and acknowledgment of final distribution under the
Ownership Interest at the office of the Paying Agent therein specified. The
Registrar shall give such notice to the Owner Trustee and the Paying Agent at
the time such notice is given to the Transferor. Upon presentation of such
submission of a claim for and acknowledgment of final distribution under the
Ownership Interest, the Paying Agent shall cause to be distributed to the
Transferor amounts distributable on such Payment Date pursuant to Section 5.01
of the Sale and Servicing Agreement.

          In the event that the Transferor shall not have submitted claim for
and acknowledgment of final distribution under the Ownership Interest for
cancellation within six months after the date specified in the above mentioned
written notice, the Registrar shall give a

                                       26
<PAGE>
second written notice to the Transferor with respect thereto. If within one year
after such second notice, the Registrar may take appropriate steps, or may
appoint an agent to take appropriate steps, to contact the Transferor concerning
the final distribution, and the cost thereof shall be paid out of the funds and
other assets that shall remain subject to this Agreement.

          (e) Upon the winding up of the Trust and its termination, the Owner
Trustee shall cause the Certificate of Trust to be canceled by filing a
certificate of cancellation with the Secretary of State in accordance with the
Business Trust Statute.

                                       27
<PAGE>
                                   ARTICLE X

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

     Section 10.1 Eligibility Requirements for Owner Trustee. The Owner Trustee
shall at all times be a corporation satisfying the provisions of the Business
Trust Statute; authorized to exercise corporate powers; having a combined
capital and surplus of at least $50,000,000 and subject to supervision or
examination by Federal or state authorities; and having (or having a parent
which has) a long-term rating of at least "A" (or its equivalent) by each of
Standard & Poor's and Fitch [and being acceptable to the Insurer]. If such
corporation shall publish reports of condition at least annually, pursuant to
law or to the requirements of the aforesaid supervising or examining authority,
then for the purpose of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Owner Trustee shall cease to be eligible in accordance with the provisions of
this Section 10.1, the Owner Trustee shall resign immediately in the manner and
with the effect specified in Section 10.2.

     Section 10.2 Resignation or Removal of Owner Trustee. The Owner Trustee may
at any time resign and be discharged from the trusts hereby created by giving
written notice thereof to the Trust, the Indenture Trustee[, the Insurer] and
the Rating Agencies. Upon receiving such notice of resignation, the Indenture
Trustee shall promptly appoint a successor Owner Trustee [with the consent of
the Insurer, which consent shall not be unreasonably withheld,] by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
resigning Owner Trustee and one copy to the successor Owner Trustee. If no
successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Owner Trustee [or the Insurer] may petition any court of competent
jurisdiction for the appointment of a successor Owner Trustee.

     If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of Section 10.1 above and shall fail to resign after written
request therefor by the Indenture Trustee, or if at any time the Owner Trustee
shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a
receiver of the Owner Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Owner Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Indenture Trustee may[, and, at the direction of the
Insurer, shall,] remove the Owner Trustee. If the Indenture Trustee shall remove
the Owner Trustee under the authority of the immediately preceding sentence, the
Indenture Trustee shall promptly appoint a successor Owner Trustee [acceptable
to the Insurer] by written instrument in duplicate, one copy of which instrument
shall be delivered to the outgoing Owner Trustee so removed and one copy to the
successor Owner Trustee and payment of all fees owed to the outgoing Owner
Trustee.

     Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section 10.2
shall not become effective until acceptance of appointment by the successor
Owner Trustee pursuant to Section 10.3[, written

                                       28
<PAGE>
approval by the Insurer] and payment of all fees and expenses owed to the
outgoing Owner Trustee. The Indenture Trustee shall provide notice of such
resignation or removal of the Owner Trustee to each of the Rating Agencies.

     Section 10.3 Successor Owner Trustee. Any successor Owner Trustee appointed
pursuant to Section 10.2 shall execute, acknowledge and deliver to the Indenture
Trustee[, the Insurer] and to its predecessor Owner Trustee an instrument
accepting such appointment under this Agreement, and thereupon the resignation
or removal of the predecessor Owner Trustee shall become effective and such
successor Owner Trustee [(if acceptable to the Insurer)], without any further
act, deed or conveyance, shall become fully vested with all the rights, powers,
duties, and obligations of its predecessor under this Agreement, with like
effect as if originally named as Owner Trustee. The predecessor Owner Trustee
shall upon payment of its fees and expenses deliver to the successor Owner
Trustee all documents and statements and monies held by it under this Agreement;
and the Indenture Trustee and the predecessor Owner Trustee shall execute and
deliver such instruments and do such other things as may reasonably be required
for fully and certainly vesting and confirming in the successor Owner Trustee
all such rights, powers, duties, and obligations.

     No successor Owner Trustee shall accept appointment as provided in this
Section 10.3 unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 10.1 above.

     Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section 10.3, the Indenture Trustee shall mail notice of the successor of
such Owner Trustee to the Transferor, the Noteholders[, the Insurer] and the
Rating Agencies. If the Indenture Trustee fails to mail such notice within 10
days after acceptance of appointment by the successor Owner Trustee, the
successor Owner Trustee shall cause such notice to be mailed at the expense of
the Indenture Trustee.

     Section 10.4 Merger or Consolidation of Owner Trustee. Any corporation into
which the Owner Trustee may be merged or converted or with which either may be
consolidated or any corporation resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee, as the case may be,
hereunder, provided such corporation shall be eligible pursuant to Section 10.1
above, without the execution or filing of any instrument or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided further that the Owner Trustee, shall mail notice of
such merger or consolidation to the Depositor, HFC[, the Insurer] and the Rating
Agencies.

     Section 10.5 Appointment of Co-Owner Trustee or Separate Owner Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Owner Trust Estate or any Mortgaged Property may at the time be located,
the Owner Trustee [(with the consent of the

                                       29
<PAGE>
Insurer, which consent shall not be unreasonably withheld)] shall have the power
and shall execute and deliver all instruments to appoint one or more Persons to
act as co-owner trustee, jointly with the Owner Trustee, or separate owner
trustee or separate owner trustees, of all or any part of the Owner Trust
Estate, and to vest in such Person, in such capacity, such title to the Trust,
or any part thereof, and, subject to the other provisions of this Section, such
powers, duties, obligations, rights and trusts as the Owner Trustee may consider
necessary or desirable. No co-owner trustee or separate trustee under this
Section 10.5 shall be required to meet the terms of eligibility as a successor
Owner Trustee pursuant to Section 10.1 above and no notice of the appointment of
any co-owner trustee or separate trustee shall be required pursuant to Section
10.3 above.

     [The Owner Trustee hereby appoints the Indenture Trustee for the purpose of
establishing and maintaining the Collection Account and making the distributions
therefrom to the Persons entitled thereto pursuant to Section 5.01 of the Sale
and Servicing Agreement.]

     Each separate trustee and co-owner trustee shall, to the extent permitted
by law, be appointed and act subject to the following provision and conditions:

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

          (ii) no owner trustee under this Agreement shall be personally liable
     by reason of any act or omission of any other owner trustee under this
     Agreement; and

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

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

                                       30
<PAGE>
     Any separate trustee or co-owner trustee may at any time appoint the Owner
Trustee as 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 owner trustee or co-owner
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 Owner Trustee, to the extent permitted by law, without the appointment of
a new or successor trustee.

                                       31
<PAGE>

                                   ARTICLE XI

                                  MISCELLANEOUS

     Section 11.1 Supplements and Amendments. This Agreement may be amended by
the Depositor, HFC and the Owner Trustee with prior written notice to the Rating
Agencies and the Indenture Trustee [and with the consent of the Insurer (which
consent shall not be unreasonably withheld)], but without the consent of any of
the Noteholders, the Transferor or the Indenture Trustee, to cure any ambiguity,
to correct or supplement any provisions in this Agreement or for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions in this Agreement or of modifying in any manner the rights of the
Noteholders or the Transferor; provided, however, that such action shall not, as
evidenced by an Opinion of Counsel, adversely affect in any material respect the
interests of any Noteholder, the Transferor [or the Insurer]. An amendment
described above shall be deemed not to adversely affect in any material respect
the interests of any Noteholder, the Transferor [or the Insurer] if the party
requesting the amendment satisfies the Rating Agency Condition with respect to
such amendment.

     This Agreement may also be amended from time to time by the Depositor, HFC
and the Owner Trustee, with the prior written consent of the Rating Agencies[,
the Insurer] and the Indenture Trustee, the Noteholders evidencing more than 50%
of the Percentage Interests in the Notes and the Transferor, 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 or the Transferor; provided, however, that no such amendment shall
(a) increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on the Home Equity Loans or distributions
that shall be required to be made for the benefit of the Noteholders or the
Transferor or (b) reduce the aforesaid Percentage Interests required to consent
to any such amendment, without the consent of the holders of all the outstanding
Notes. [; and provided further, that no such amendment will be effective unless
the Insurer consents to such action or such action will not, as evidenced by an
Opinion of Counsel, adversely affect in any material respect the interests of
any Noteholders or the Insurer]. The Depositor shall join in any such amendment
approved as provided in the preceding sentence so long as such amendment is not
adverse to the interests of the Depositor.

     Promptly after the execution of any such amendment, the Owner Trustee shall
furnish written notification of the substance of such amendment to the Indenture
Trustee[, the Insurer] and each of the Rating Agencies.

     It shall not be necessary for the consent of the Transferor, the
Noteholders or the Indenture Trustee pursuant to this Section 11.1 to approve
the particular form of any proposed amendment, but it shall be sufficient if
such consent shall approve the substance thereof. The manner of obtaining such
consents (and any other consents of the Transferor provided for in this
Agreement or in any other Transaction Document) and of evidencing the
authorization of the execution thereof by the Transferor and the Noteholders
shall be subject to such reasonable requirements as the Owner Trustee may
prescribe.

                                       32
<PAGE>
     Promptly after the execution of any amendment to the Certificate of Trust,
the Owner Trustee shall cause the filing of such amendment with the Secretary of
State.

     Prior to the execution of any amendment to this Agreement or the
Certificate of Trust, the Owner 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 and that all conditions precedent to
such execution and delivery have been satisfied. The Owner Trustee may, but
shall not be obligated to, enter into any such amendment which affects the Owner
Trustee's own rights, duties or immunities under this Agreement or otherwise.

     Section 11.2 No Legal Title to Owner Trust Estate in Transferor. The
Transferor shall not have legal title to any part of the Owner Trust Estate. The
Transferor shall be entitled to receive distributions with respect to their
undivided ownership interest therein only in accordance with Articles V and IX
herein. No transfer, by operation of law or otherwise, of any right, title, or
interest of the Transferor to and in its Ownership Interest shall operate to
terminate this Agreement or the trusts hereunder or entitle any transferee to an
accounting or to the transfer to it of legal title to any part of the Owner
Trust Estate.

     Section 11.3 Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Owner Trustee, the Trust[, the
Insurer,] the Transferor and, to the extent expressly provided herein, the
Indenture Trustee[, the Insurer] and the Noteholders, and nothing in this
Agreement, whether express or implied, shall be construed to give to any other
Person any legal or equitable right, remedy or claim in the Owner Trust Estate
or under or in respect of this Agreement or any covenants, conditions or
provisions contained herein.

     Section 11.4 Notices.

          (a) Unless otherwise expressly specified or permitted by the terms
hereof, all notices shall be in writing and shall be deemed given upon receipt
by the intended recipient or three Business Days after mailing if mailed by
certified mail, postage prepaid (except that notice to the Owner Trustee shall
be deemed given only upon actual receipt by the Owner Trustee), at the following
addresses: (i) if to the Owner Trustee, its Corporate Trust Office; (ii) if to
the Depositor or HFC, 2700 Sanders Road, Prospect Heights, Illinois 60070,
Attention: Treasurer, [(iii) if to the Insurer, [           ];] (iv) if to the
Indenture Trustee, its Corporate Trust Office; (v) if to the Transferor,
[         ]; or, as to each such party, at such other address as shall be
designated by such party in a written notice to each other party.

          (b) Any notice required or permitted to be given to the Transferor
shall be given by first-class mail, postage prepaid, at the address of such
Transferor as shown in the Register. Any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Transferor receives such notice.

     Section 11.5 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such

                                       33
<PAGE>
prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.

     Section 11.6 Separate Counterparts. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

     Section 11.7 Successors and Assigns. All covenants and agreements contained
herein shall be binding upon, and inure to the benefit of the Owner Trustee[,
the Insurer] and its successors and the Transferor and its successors and
permitted assigns, all as herein provided. Any request, notice, direction,
consent, waiver or other instrument or action by the Transferor shall bind the
successors and assigns of the Transferor.

     Section 11.8 No Petition. The Owner Trustee, by entering into this
Agreement, the Transferor, by accepting the Ownership Interest, and the
Indenture Trustee and each Noteholder by accepting the benefits of this
Agreement, hereby covenant and agree that they will not at any time institute
against the Transferor or the Trust, or join in any institution against the
Transferor, or the Trust of, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any United
States Federal or state bankruptcy or law in connection with any obligations
relating to the Ownership Interest and the Notes, this Agreement or any of the
Transaction Documents.

     Section 11.9 [Reserved].

     Section 11.10 No Recourse. The Transferor by accepting the Ownership
Interest acknowledges that the Transferor's Ownership Interest represents a
beneficial interest in the Trust only and does not represent an interest in or
an obligation of the Master Servicer, the Owner Trustee or any Affiliate thereof
and no recourse may be had against such parties or their assets, except as may
be expressly set forth or contemplated in this Agreement, the Ownership Interest
or the Transaction Documents.

     Section 11.11 Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

     Section 11.12 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, 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.

                                       34

<PAGE>
     Section 11.13 Inconsistencies with Sale and Servicing Agreement.

     In the event certain provisions of this Agreement conflict with the
provisions of the Sale and Servicing Agreement, the parties hereto agree that
the provisions of the Sale and Servicing Agreement shall be controlling (other
than the provisions governing the internal affairs of the Trust, which shall be
governed by Delaware law).

     Section 11.14 [Third Party Beneficiary.

     The parties hereto acknowledge that the Insurer is an express third party
beneficiary hereof entitled to enforce the provisions hereof as if it were
actually a party hereto. Nothing in this Section 11.14 however shall be
construed to mitigate in any way, the fiduciary responsibilities of the Owner
Trustee to the beneficiaries of the Trust.]

                                       35
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement to
be duly executed by their respective officers hereunto duly authorized, as of
the day and year first above written.

                                 [                 ]
                                 as Owner Trustee

                                 By:
                                    -----------------------------
                                    Name:
                                    Title:

                                 HFC REVOLVING CORPORATION,
                                   as Depositor

                                 By:
                                    -----------------------------
                                    Name:
                                    Title:

                                 HOUSEHOLD FINANCE CORPORATION

                                 By:
                                    -----------------------------
                                    Name:
                                    Title:

<PAGE>
                                    EXHIBIT A

                             CERTIFICATE OF TRUST OF
                      HOUSEHOLD HOME EQUITY LOAN TRUST [ ]

     THIS Certificate of Trust of HOUSEHOLD HOME EQUITY LOAN TRUST [   ] (the
"Trust"), is being duly executed and filed by [       ], a Delaware banking
corporation, as trustee, to form a business trust under the Delaware Business
Trust Act (12 Del. Code, ss. 3801 et seq.)(the "Act").

     1. Name. The name of the business trust formed hereby is HOUSEHOLD HOME
EQUITY LOAN TRUST [      ].

     2. Delaware Trustee. The name and business address of the trustee of the
Trust in the State of Delaware is [               ]. Attention: Corporate Trust
Administration Department.

     IN WITNESS WHEREOF, the undersigned, being the sole trustee of the Trust,
has executed this Certificate of Trust in accordance with Section 3811(a) of the
Act.

                                   [                   ], not in its individual
                                   capacity but solely as Owner Trustee under a
                                   Trust Agreement dated as of [ ].

                                      By:
                                         --------------------------------
                                         Name:
                                         Title:

                                      A-1

<PAGE>
                                    EXHIBIT B

                              TRANSFER CERTIFICATE

[Owner Trustee]

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

Attention: [____________________]

          Re:  Trust Agreement, dated as of [     ], among Household Home Equity
               Loan Trust 200_-_, [            ] and [           ], as Owner
               Trustee; Household Home Equity Loan Trust 200_-_, [        ] Home
               Equity Loan Asset-Backed Notes, Series 200_-_

Ladies and Gentlemen:

          The undersigned (the "Transferee") has agreed to purchase from _______
(the "Transferor") the Ownership Interest:

          A. Rule 144A "Qualified Institutional Buyers" should complete this
section

          I. The Transferee is (check one):

          __   (i) An insurance company, as defined in Section 2(13) of the
               Securities Act of 1933, as amended (the "Securities Act"), (ii)
               an investment company registered under the Investment Company Act
               of 1940, as amended (the "Investment Company Act"), (iii) a
               business development company as defined in Section 2(a)(48) of
               the Securities Act, (iv) a Small Business Investment Company
               licensed by the U.S. Small Business Administration under Section
               301(c) or (d) of the Small Business Investment Act of 1958, (v) a
               plan established and maintained by a state, its political
               subdivisions, or any agency or instrumentality of a state or its
               political subdivisions, for the benefit of its employees, (vi) an
               employee benefit plan within the meaning of Title I of the
               Employee Retirement Income Security Act of 1974, as amended
               ("ERISA"), (vii) a business development company as defined in
               Section 202(a)(22) of the Investment Advisors Act of 1940, (viii)
               an organization described in Section 501(c)(3) of the Internal
               Revenue Code, corporation (other than a bank as defined in
               Section 3(a)(2) of the Securities Act or a savings and loan
               association or

                                       B-1
<PAGE>
               other institution referenced in Section 3(a)(2) of the Securities
               Act or a foreign bank or savings and loan association or
               equivalent institution), partnership, or Massachusetts or similar
               business trust; or (ix) an investment advisor registered under
               the Investment Advisors Act of 1940, which, for each of (i)
               through (ix), owns and invests on a discretionary basis at least
               $100 million in securities other than securities of issuers
               affiliated with the Transferee, securities issued or guaranteed
               by the United States or a person controlled or supervised by and
               acting as an instrumentality of the government of the United
               States pursuant to authority granted by the Congress of the
               United States, bank deposit notes and certificates of deposit,
               loan participations, repurchase agreements, securities owned but
               subject to a repurchase agreement, and currency, interest rate
               and commodity swaps (collectively, "Excluded Securities");

          __   a dealer registered pursuant to Section 15 of the Securities
               Exchange Act of 1934, as amended (the "Exchange Act") that in the
               aggregate owns and invests on a discretionary basis at least $10
               million of securities other than Excluded Securities and
               securities constituting the whole or part of an unsold allotment
               to, or subscription by, Transferee as a participant in a public
               offering;

          __   an investment company registered under the Investment Company Act
               that is part of a family of investment companies (as defined in
               Rule 144A of the Securities and Exchange Commission) which own in
               the aggregate at least $100 million in securities other than
               Excluded Securities and securities of issuers that are part of
               such family of investment companies;

          __   an entity, all of the equity owners of which are entities
               described in this  Paragraph A(I);

          __   a bank as defined in Section 3(a)(2) of the Securities Act, any
               savings and loan association or other institution as referenced
               in Section 3(a)(5)(A) of the Securities Act, or any foreign bank
               or savings and loan association or equivalent institution that in
               the aggregate owns and invests on a discretionary basis at least
               $100 million in securities other than Excluded Securities and has
               an audited net worth of at least $25 million as demonstrated in
               its latest annual financial statements, as of a date not more
               than 16 months preceding the date of transfer of the Ownership
               Interest to the Transferee in the case of a U.S. Bank or savings
               and loan association, and not more than 18 months preceding such
               date in the case of a foreign bank or savings association or
               equivalent institution.

          II. The Transferee is acquiring such Ownership Interest solely for its
own account, for the account of one or more others, all of which are "Qualified
Institutional Buyers"

                                       B-2
<PAGE>
within the meaning of Rule 144A, or in its capacity as a
dealer registered pursuant to Section 15 of the Exchange Act acting in a
riskless principal transaction on behalf of a "Qualified Institutional Buyer".
The Transferee is not acquiring such Ownership Interest with a view to or for
the resale, distribution, subdivision or fractionalization thereof which would
require registration of the Ownership Interest under the Securities Act.

          B. "Accredited Investors" should complete this Section

          I. The Transferee is (check one):

          __   a bank within the meaning of Section 3(a)(2) of the Securities
               Act;

          __   a savings and loan association or other institution defined in
               Section 3(a)(5) of the Securities Act;

          __   a broker or dealer registered pursuant to the Exchange Act;

          __   an insurance company within the meaning of Section 2(13) of the
               Securities Act;

          __   an investment company registered under the Investment Company
               Act;

          __   an employee benefit plan within the meaning of Title I of ERISA,
               which has total assets in excess of $5,000,000;

          __   another entity which is an "accredited investor" within the
               meaning of paragraph ___ (fill in) of subsection (a) of Rule 501
               of the Securities and Exchange Commission.

          II. The Transferee is acquiring such Ownership Interest solely for its
own account, for investment, and not with a view to or for the resale,
distribution, subdivision or fractionalization thereof which would require
registration of the Ownership Interest under the Securities Act.

          C. If the Transferee is unable to complete one of paragraph A(I) or
paragraph B(I) above, the Transferee must furnish an opinion in form and
substance satisfactory to the Trustee of counsel satisfactory to the Trustee to
the effect that such purchase will not violate any applicable federal or state
securities laws.

          D. The Transferee represents that it is not (A) an "employee benefit
plan" within the meaning of Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), or (B) a "plan" within the meaning
of Section 4975(e)(1) of the Code (any such plan or employee benefit plan, a
"Plan") or (C) any entity, including an insurance company separate account or
general account, whose underlying assets include plan assets by reason of a

                                      B-3

<PAGE>

plan's investment in the entity and is not directly or indirectly purchasing
such Trust Security on behalf of, as investment manager of, as named fiduciary
of, as trustee of, or with assets of a Plan.

          (iii) the Transferee is an "accredited investor" as defined in Rule
501(a) of Regulation D pursuant to the Securities Act.

                                 Very truly yours,
                                 [NAME OF PURCHASER]

                                 By:
                                     --------------------------------------
                                 Title:
                                       -----------------------------------
Dated:

THE FOREGOING IS ACKNOWLEDGED THIS ____ DAY OF __________, 200_.

[NAME OF SELLER]
By:
   -----------------------------------------
Title:
      --------------------------------------

                                      B-4Exhibit 4.4

                                    INDENTURE

                                     between

                     HOUSEHOLD HOME EQUITY LOAN TRUST 200_-_
                                    as Issuer

                                       and

                                  [        ],
                              as Indenture Trustee

                             Dated as of [      ]

                     HOUSEHOLD HOME EQUITY LOAN TRUST 200_-_
                  [     ] Home Equity Loan Asset-Backed Notes,
                                  Series 200_-_

<PAGE>
                                Table of Contents

<TABLE>
<CAPTION>
                                                                                                  Page
                                                                                                  ----
                                    ARTICLE I
                                   DEFINITIONS
<S>              <C>                                                                              <C>
SECTION 1.1      Definitions.........................................................................2
SECTION 1.2      Incorporation by Reference of Trust Indenture Act...................................9
SECTION 1.3      Rules of Construction...............................................................9

                                   ARTICLE II
                                    THE NOTES

SECTION 2.1      Form...............................................................................11
SECTION 2.2      Execution, Authentication, Delivery and Dating.....................................11
SECTION 2.3      Registration; Registration of Transfer and Exchange................................12
SECTION 2.4      Mutilated, Destroyed, Lost or Stolen Notes.........................................13
SECTION 2.5      Persons Deemed Owner...............................................................13
SECTION 2.6      Payment of Principal and Interest; Defaulted Interest..............................14
SECTION 2.7      Cancellation.......................................................................14
SECTION 2.8      [Reserved].........................................................................14
SECTION 2.9      Release of Trust Estate............................................................15
SECTION 2.10     Book-Entry Notes...................................................................15
SECTION 2.11     Notices to Clearing Agency.........................................................16
SECTION 2.12     Definitive Notes...................................................................16
SECTION 2.13     Tax Treatment......................................................................16

                                   ARTICLE III
                                    COVENANTS

SECTION 3.1      Payment of Principal and Interest..................................................17
SECTION 3.2      Maintenance of Office or Agency....................................................17
SECTION 3.3      Money for Payments To Be Held in Trust.............................................17
SECTION 3.4      Existence..........................................................................18
SECTION 3.5      Protection of Trust Estate.........................................................19
SECTION 3.6      Annual Opinions as to the Trust Estate.............................................19
SECTION 3.7      Performance of Obligations; Servicing of Home Equity Loans.........................20
SECTION 3.8      Negative Covenants.................................................................21
SECTION 3.9      Annual Statement as to Compliance..................................................22
SECTION 3.10     Covenants of the Issuer............................................................22
SECTION 3.11     Master Servicer's Obligations......................................................23
SECTION 3.12     Restricted Payments................................................................23
SECTION 3.13     Treatment of Notes as Debt for All Purposes........................................23
SECTION 3.14     Notice of Events of Default........................................................23
SECTION 3.15     Further Instruments and Acts.......................................................23
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>              <C>                                                                              <C>
SECTION 3.16     Issuer May Consolidate, etc........................................................23
SECTION 3.17     Successor or Transferee............................................................25
SECTION 3.18     No Other Business..................................................................25
SECTION 3.19     No Borrowing.......................................................................25
SECTION 3.20     Guarantees, Loans, Advances and Other Liabilities..................................26
SECTION 3.21     Capital Expenditures...............................................................26

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

SECTION 4.1      Satisfaction and Discharge of Indenture............................................27
SECTION 4.2      Application of Trust Money.........................................................28
SECTION 4.3      Subrogation and Cooperation........................................................28
SECTION 4.4      Repayment of Moneys Held by Paying Agent...........................................29

                                    ARTICLE V
                                    REMEDIES

SECTION 5.1      Events of Default..................................................................30
SECTION 5.2      Acceleration of Maturity; Rescission and Annulment.................................31
SECTION 5.3      Collection of Indebtedness and Suits for Enforcement by Indenture Trustee..........31
SECTION 5.4      Remedies; Priorities...............................................................34
SECTION 5.5      Optional Preservation of the Trust Estate..........................................35
SECTION 5.6      Limitation of Suits................................................................36
SECTION 5.7      Unconditional Rights of Noteholders To Receive Principal and Interest..............36
SECTION 5.8      Restoration of Rights and Remedies.................................................36
SECTION 5.9      Rights and Remedies Cumulative.....................................................37
SECTION 5.10     Delay or Omission Not a Waiver.....................................................37
SECTION 5.11     Control by Noteholders.............................................................37
SECTION 5.12     Waiver of Past Defaults............................................................38
SECTION 5.13     Undertaking for Costs..............................................................38
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.................................39

                                   ARTICLE VI
                              THE INDENTURE TRUSTEE

SECTION 6.1      Duties of Indenture Trustee........................................................40
SECTION 6.2      Rights of Indenture Trustee........................................................41
SECTION 6.3      Individual Rights of Indenture Trustee.............................................43
SECTION 6.4      Indenture Trustee's Disclaimer.....................................................43
SECTION 6.5      Notice of Defaults.................................................................43
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>              <C>                                                                              <C>
SECTION 6.6      Reports by Indenture Trustee to Holders............................................43
SECTION 6.7      Compensation and Indemnity.........................................................44
SECTION 6.8      Replacement of Indenture Trustee...................................................44
SECTION 6.9      Successor Indenture Trustee by Merger..............................................45
SECTION 6.10     Appointment of Co-Indenture Trustee or Separate Indenture Trustee..................46
SECTION 6.11     Eligibility; Disqualification......................................................47
SECTION 6.12     Preferential Collection of Claims Against Issuer...................................47
SECTION 6.13     Representations and Warranties.....................................................47
SECTION 6.14     Directions to Indenture Trustee....................................................47

                                   ARTICLE VII
                         NOTEHOLDERS' LISTS AND REPORTS

SECTION 7.1      Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.............49
SECTION 7.2      Preservation of Information; Communications to Noteholders.........................49
SECTION 7.3      Reports by Issuer..................................................................49
SECTION 7.4      Reports by Indenture Trustee.......................................................50

                                  ARTICLE VIII
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

SECTION 8.1      Collection of Money................................................................51
SECTION 8.2      Accounts; Distributions............................................................51
SECTION 8.3      [Reserved].........................................................................52
SECTION 8.4      Master Servicer's Monthly Statements...............................................52
SECTION 8.5      [Reserved].........................................................................52
SECTION 8.6      Opinion of Counsel.................................................................52

                              ARTICLE IX
                        SUPPLEMENTAL INDENTURES

SECTION 9.1      Supplemental Indentures Without Consent of Noteholders.............................53
SECTION 9.2      Supplemental Indentures with Consent of Noteholders................................54
SECTION 9.3      Execution of Supplemental Indentures...............................................55
SECTION 9.4      Effect of Supplemental Indenture...................................................55
SECTION 9.5      Conformity with Trust Indenture Act................................................56
SECTION 9.6      Reference in Notes to Supplemental Indentures......................................56

                                    ARTICLE X
                               REDEMPTION OF NOTES

SECTION 10.1     Redemption.........................................................................57
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>              <C>                                                                              <C>
                                   ARTICLE XI
                                  MISCELLANEOUS

SECTION 11.1     Compliance Certificates and Opinions, etc..........................................58
SECTION 11.2     Form of Documents Delivered to Indenture Trustee...................................59
SECTION 11.3     Acts of Noteholders................................................................60
SECTION 11.4     Notices............................................................................61
SECTION 11.5     Notices to Noteholders; Waiver.....................................................61
SECTION 11.6     Rights of the Insurer to Exercise Rights of Noteholders............................62
SECTION 11.7     Conflict with Trust Indenture Act..................................................62
SECTION 11.8     Effect of Headings and Table of Contents...........................................62
SECTION 11.9     Successors and Assigns.............................................................62
SECTION 11.10    Separability.......................................................................62
SECTION 11.11    Benefits of Indenture..............................................................62
SECTION 11.12    Legal Holidays.....................................................................63
SECTION 11.13    Governing Law......................................................................63
SECTION 11.14    Counterparts.......................................................................63
SECTION 11.15    Recording of Indenture.............................................................63
SECTION 11.16    Trust Obligation...................................................................63
SECTION 11.17    No Petition........................................................................63
SECTION 11.18    Inspection.........................................................................64
SECTION 11.19    Inconsistencies With the Sale and Servicing Agreement..............................64
SECTION 11.20    Third-Party Beneficiaries..........................................................64
</TABLE>

                                       iv
<PAGE>

EXHIBITS
--------

SCHEDULE A       -    Home Equity Loan Schedule
EXHIBIT A        -    Form of Notes

                                       v
<PAGE>
                                                                     Exhibit 4.4

     INDENTURE dated as of [ ] between HOUSEHOLD HOME EQUITY LOAN TRUST 200_-_,
a Delaware business trust (the "Issuer"), and [ ], a [ ] banking corporation, as
trustee and not in its individual capacity (the "Indenture Trustee").

     Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the holders of the Issuer's [ ] Home Equity Loan
Asset-Backed Notes (the "Notes") and the Insurer:

                                 GRANTING CLAUSE

     Subject to the terms of this Indenture, the Issuer hereby Grants to the
Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of
the Class A Noteholders and the Insurer, all of the Issuer's right, title and
interest in and to: (i) the Trust Estate; (ii) all right, title and interest of
the Issuer in the Sale and Servicing Agreement and the Home Equity Loan Purchase
Agreement with respect to the Home Equity Loans (including the Issuer's right to
cause the Depositor or the Master Servicer to repurchase Home Equity 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, 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 Collection
Account; (v) all other property of the Trust from time to time; and (vi) any and
all proceeds of the foregoing (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 Class A Notes,
equally and ratably without prejudice, priority or distinction, and to secure
compliance with the provisions of this Indenture, all as provided in this
Indenture.

     The foregoing Grant shall inure to the benefit of the Insurer in respect of
draws made on the Insurance Policy and amounts owing from time to time pursuant
to the Insurance and Reimbursement Agreement, and such Grant shall continue in
full force and effect for the benefit of the Insurer until all such amounts
owing to it have been repaid in full.

     The Indenture Trustee, as Indenture Trustee on behalf of the holders of the
Notes, acknowledges the foregoing Grant, accepts the trusts hereunder in good
faith and without notice of any adverse claim or liens 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 and the Insurer may be adequately and
effectively protected. The Indenture Trustee further agrees and acknowledges
that each item of Collateral that is physically delivered to the Indenture
Trustee will be held by the Indenture Trustee in [state].

<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

     SECTION 1.1 Definitions.

     (a) For all purposes of this Indenture, except as otherwise expressly
provided herein or unless the context otherwise requires, capitalized terms not
otherwise defined herein shall have the meanings assigned to such terms in the
Sale and Servicing Agreement. All other capitalized terms used herein shall have
the meanings specified herein.

     "Act" has the meaning specified in Section 11.3(a).

     "Administration Agreement" means the Administration Agreement dated as of
[ ], among the Administrator, the Issuer, the Indenture Trustee and [ ].

     "Administrator" means [ ], [a state] banking corporation, 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 or [ ] who is authorized to act for the
Administrator or [ ] in matters relating to the Issuer and to be acted upon by
the Administrator or [ ] pursuant to the Administration Agreement and who is
identified on the list of Authorized Officers delivered by the Administrator to
the Indenture Trustee on the Closing Date (as such list may be modified or
supplemented from time to time thereafter).

     "Book-Entry Notes" means any Class A Note registered in the name of the
Depository or its nominee, ownership of which is reflected on the books of the
Depository or on the books of a Person maintaining an account with such
Depository (directly or as an indirect participant in accordance with the rules
of such Depository).

     "Business Day" has the meaning assigned thereto in the Sale and Servicing
Agreement.

                                       2
<PAGE>

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

     "Class A Note Rate" with respect to the Class A Notes shall have the
meaning assigned thereto in the Sale and Servicing Agreement.

     "Class A Notes" means any Note, designated as a Class A Note, executed by
the Issuer and authenticated by the Indenture Trustee substantially in the form
of Exhibit A hereto.

     "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 whom from time to time a Clearing Agency effects
book-entry transfers and pledges of securities deposited with the Clearing
Agency.

     "Closing Date" means [       ].

     "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" shall mean the Securities and Exchange Commission.

     "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
[ ], Attention: Indenture Trust Administration, or at such other address as the
Indenture Trustee may designate from time to time by notice to the Noteholders,
the Issuer and the Insurer 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, the Insurer, 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" has the meaning specified in Article II.

     "Depositor" shall mean HFC Revolving Corporation, a Delaware corporation,
in its capacity as depositor under the Sale and Servicing Agreement, and its
successor in interest.

     "Depository Institution" means any depository institution or trust company,
including the Indenture Trustee, that (i) has short-term debt obligations and
long-term debt obligations at the time of any deposit therein and throughout the
time the interest is maintained that are rated at least ["P-1"] and ["A2,"]
respectively, by Moody's and ["A-1"] and ["A,"] respectively, by Standard &
Poor's, and that the deposits in such account are fully insured to the maximum
extent

                                       3
<PAGE>

provided by either the BIF or the SAIF and which is any of (a) a federal savings
and loan association duly organized, validly existing and in good standing under
the applicable banking laws of any state, (b) an institution duly organized,
validly existing and in good standing under the applicable banking laws of any
state, (c) a national banking association duly organized, validly existing and
in good standing under the federal banking laws or (d) a principal subsidiary of
a bank holding company, and in each case of (a)-(d), approved in writing by the
Insurer. Such Depository Institution shall have (x) a segregated trust account
maintained with the corporate trust department of a federal or state chartered
depository or trust company, having capital and surplus of not less than
[$50,000,000,] acting in its fiduciary capacity or (y) an account otherwise
acceptable to each Rating Agency and the Insurer as evidenced by a letter from
each Rating Agency and the Insurer to the Owner Trustee and the Indenture
Trustee, without reduction or withdrawal of the then current ratings of the
Class A Notes, without regard to the Insurance Policy.

     "Distribution Account" means the Distribution Account (as defined in the
Sale and Servicing Agreement), established by the Indenture Trustee.

     "Event of Default" has the meaning specified in Section 5.1.

     "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.

     "Final Payment Date" means, with respect to any Note, the Payment Date
occurring in [        ].

     "Grant" means mortgage, pledge, bargain, 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 with respect to 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.

                                       4
<PAGE>

     "Home Equity Loan Schedule" means the listing of the Home Equity Loans set
forth in Schedule A, as supplemented as of any date on which a Defective Home
Equity Loan has been repurchased from the Trust or substituted with an Eligible
Substitute Home Equity Loan pursuant to the Sale and Servicing Agreement.

     "Indenture Trust Estate" or "Trust Estate" means all money, instruments,
rights and other property that are subject or intended to be subject to the lien
and security interest of this Indenture for the benefit of the Noteholders and
the Insurer (including, without limitation, all Collateral Granted to the
Indenture Trustee pursuant to the Granting Clause), including all proceeds
thereof.

     "Indenture Trustee" means [ ], an [ ] banking corporation, as Indenture
Trustee under this Indenture, or any successor Indenture Trustee appointed
pursuant to the terms of this Indenture.

     "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 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 or any Affiliate
of any of the foregoing Persons and (c) is not connected with the Issuer, any
such other obligor, the Transferor 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 applicable requirements of Section 11.1 herein, 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 and Reimbursement Agreement" shall have the meaning assigned
thereto in the Sale and Servicing Agreement.

     "Insurer" shall have the meaning assigned thereto in the Sale and Servicing
Agreement.

     "Interest Period" shall have the meaning assigned thereto in the Sale and
Servicing Agreement.

     "Issuer" means [ ] Home Equity Loan Trust 200_-_ until a successor replaces
it in accordance with the terms of the Transaction Documents and, thereafter,
means the successor.

     "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.

     "LIBOR" shall have the meaning assigned thereto in the Sale and Servicing
Agreement.

                                       5
<PAGE>

     "LIBOR Business Day" shall have the meaning assigned thereto in the Sale
and Servicing Agreement.

     "Lien" shall mean any lien, pledge, encumbrance or security interest on or
in any particular asset or property.

     "Master Servicer" shall mean [ ], in its capacity as master servicer under
the Sale and Servicing Agreement, or any Successor Master Servicer appointed in
accordance with the terms of the Sale and Servicing Agreement.

     "Moody's" shall mean Moody's Investors Service, Inc., or any successor
thereto.

     "Note" means any of the Class A Notes.

     "Note Depository Agreement" means the agreement dated [ ], 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 who 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 Article II.

     "Noteholder" means a Holder of a Class A Note.

     "Obligations" shall mean the Home Equity Loans.

     "Officer's Certificate" means a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.1 herein, 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.

     "Opinion of Counsel" means one or more written opinions of counsel who may,
except as otherwise expressly provided in this Indenture, be employees of or
counsel to the Issuer and who shall be satisfactory to the Indenture Trustee and
the Insurer, and which opinion or opinions shall be addressed to the Indenture
Trustee and the Insurer, as Indenture Trustee and the Insurer, respectively, and
shall comply with any applicable requirements of Section 11.1 herein and shall
be in form and substance satisfactory to the Indenture Trustee and the 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:

                                       6
<PAGE>

          (i) Notes theretofore canceled 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 been theretofore 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
     has been made, satisfactory to the Indenture Trustee);

          (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; and

          (iv) Notes for which the Final Payment Date has occurred;

provided, however, in determining whether the Holders of the requisite
Outstanding Amount of the Notes have given any request, demand, authorization,
direction, notice, consent, or waiver hereunder or under any Transaction
Document, Notes owned by the Issuer, any other obligor upon the Notes, the
Depositor, 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 so owned shall be so disregarded
and provided further that for purposes of determining the Insurer's subrogation
rights, a Note shall be deemed Outstanding to the extent of any payment made by
the Insurer. Notes so owned that have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgee's right so to act with respect to such Notes and that the
pledgee is not the Issuer, any other obligor upon the Notes, the Transferor or
any Affiliate of any of the foregoing Persons.

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

     "Owner Trustee" means [        ], not in its individual capacity but solely
as Owner Trustee under the 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 of
the Sale and Servicing Agreement and is authorized by the Issuer to make
payments to and distributions from the Distribution Account, including payment
of principal of or interest on the Notes on behalf of the Issuer.

     "Payment Date" shall mean the twenty-fifth day of each month or, if such
day is not a Business Day, then the next Business Day, beginning in [       ].

                                       7
<PAGE>

     "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 Article II 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 Condition" means, with respect to certain actions requiring
prior Rating Agency consent, 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 Rating Agencies shall have notified the
Transferor, the Master Servicer and the Insurer in writing that such action will
not result in a reduction or withdrawal of the then current rating of the Notes
without regard to the Insurance Policy.

     "Rating Agency" means either of (i) [    ]or (ii) [     ]. 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 Depositor and the Insurer, notice of which designation shall
have been given to the Indenture Trustee.

     "Record Date" shall have the meaning assigned thereto in the Sale and
Servicing Agreement.

     "Redemption Date" means, in the case of a redemption of the Notes pursuant
to Section 10.1, the Payment Date specified by the Indenture Trustee pursuant to
Section 10.1.

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

     "Responsible Officer" shall have the meaning assigned thereto in the Sale
and Servicing Agreement.

     "Sale and Servicing Agreement" means the Sale and Servicing Agreement dated
as of [ ], among the Issuer, the Depositor, the Master Servicer and the
Indenture Trustee.

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

     "Standard & Poor's" means Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc.

                                       8
<PAGE>

     "State" means any one of the 50 States of the United States of America or
the District of Columbia.

     "Successor Master Servicer" has the meaning specified in Section 3.7(e)
hereof.

     "Transaction Documents" has the meaning set forth in the Sale and Servicing
Agreement.

     "Transferor" shall have the meaning assigned thereto in the Sale and
Servicing Agreement.

     "Trust" means the Issuer.

     "Trust Estate" shall mean the assets subject to the Sale and Servicing
Agreement, the Home Equity Loan Purchase Agreement, the Trust Agreement and this
Indenture, assigned to the Indenture Trustee, which assets consist of: (i) the
Home Equity Loans, (ii) such assets as shall from time to time be identified as
deposited in the Collection Account (exclusive of net earnings thereon), (iii)
the Mortgage Notes and other Mortgage File documents for the Home Equity Loans,
(iv) any property that secured a Home Equity Loan and that has become REO, (v)
the interest of the Depositor in certain hazard insurance policies maintained by
the Mortgagors or the Master Servicer in respect of the Home Equity Loans, (vi)
the Collection Account, (vii) [the Insurance Policy,] (viii) the proceeds of
each of the foregoing and (viii) one share of Preferred Stock of the Depositor.

     "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.

SECTION 1.2 Incorporation by Reference of Trust Indenture Act. 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:

     "Commission" means the Securities and Exchange Commission.

     "indenture securities" means the Notes.

     "indenture security holder" means a Noteholder.

     "indenture to be qualified" means this Indenture.

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

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

                                       9
<PAGE>

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

     SECTION 1.3 Rules of Construction.

          Unless the context otherwise requires:

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

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

          (iii) "or" is not exclusive;

          (iv) "including" means including without limitation;

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

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

                                       10
<PAGE>

                                   ARTICLE II

                                    THE NOTES

     SECTION 2.1 Form. The Notes shall be designated as the "HOUSEHOLD HOME
EQUITY LOAN TRUST 200_-_, [       ] Home Equity Loan Asset-Backed Notes, Series
200_-_". Each Note shall be in substantially the form set forth in Exhibit A
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.

     The terms of the Notes are set forth in Exhibit A hereto. The terms of the
Notes are part of the terms of this Indenture.

     SECTION 2.2 Execution, Authentication, Delivery and Dating. The Notes shall
be executed on behalf of the Issuer by an Authorized Officer of the Owner
Trustee. 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 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 2.8, the
Indenture Trustee shall upon receipt of an Issuer Order, authenticate and
deliver the Class A Notes for original issue in the principal amount equal to
$[ ]. The aggregate principal amount of the Class A 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 [ ]. 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 Class A
Notes shall be issuable as registered Notes in the minimum denomination of
$[25,000] and multiples of $[1,000] in excess thereof.

     No Note shall be entitled to any benefit under this Indenture or be valid
or obligatory for any purpose, unless there appears on such Note a certificate
of authentication substantially in the form provided for herein executed by the
Indenture Trustee by the manual signature of one of its

                                       11
<PAGE>

authorized signatories, and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder.

     SECTION 2.3 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 the 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 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 shall have the
right to inspect the Note Register at all reasonable times and to obtain copies
thereof, and the Indenture Trustee 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 3.2 hereof, the
Owner Trustee on behalf of 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 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 Exchange Act.

                                       12
<PAGE>

     No service charge shall be made to a Holder 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 2.4 or Section 9.6 hereof not involving any
transfer.

     SECTION 2.4 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 such security or
indemnity as may be reasonably required by it to hold the Issuer 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, and an Authorized Officer of the Owner Trustee 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
and the Indenture Trustee shall be entitled to recover such replacement Note (or
such payment) from the Person to whom it was delivered or any Person taking such
replacement Note from such Person to whom such replacement Note was delivered or
any assignee of such Person, except a bona fide purchaser, and shall be entitled
to recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in
connection therewith.

     Upon the issuance of any replacement Note under this Section 2.4, 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 2.4 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 2.4 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.

                                       13
<PAGE>

     SECTION 2.5 Persons Deemed Owner. Prior to due presentment for registration
of transfer of any Note, the Issuer, the Indenture Trustee and any agent of the
Issuer or the Indenture Trustee may treat the Person in whose name any Note is
registered (as of the day of determination) as the owner of such Note for the
purpose of receiving payments of principal of and interest on, if any, such Note
and for all other purposes whatsoever, whether or not such Note be overdue, and
none of the Issuer, the Indenture Trustee or any agent of the Issuer or the
Indenture Trustee shall be affected by notice to the contrary.

     SECTION 2.6 Payment of Principal and Interest; Defaulted Interest.

     (a) Each Class A Note shall accrue interest at the Class A Note Rate and
such interest shall be payable on each Payment Date as specified in Exhibit A
hereto, subject to Section 3.1 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 whose name
such Note (or one or more Predecessor Notes) is registered on the Record Date in
the manner set forth in Section 5.01(c) of the Sale and Servicing Agreement.

     (b) The principal of each Class A Note shall be payable in installments on
each Payment Date as provided in the forms of the Notes set forth in Exhibit A
hereto. Notwithstanding the foregoing, the entire unpaid principal amount of the
Class A Notes shall be due and payable, if not previously paid, on the earliest
of (i) the Final Payment 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, the Insurer or the Holders of Notes representing not less
than a majority of the Outstanding Amount of the Notes have declared the Notes
to be immediately due and payable in the manner provided in Section 5.2 hereof.
All principal payments on the Notes shall be in the manner set forth in the Sale
and Servicing Agreement. The Indenture Trustee shall notify the Person in whose
name 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 the place where such Note may be presented and
surrendered for payment of such installment. Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section 8.01
of the Sale and Servicing Agreement.

     SECTION 2.7 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 be
promptly canceled 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 be promptly canceled by the Indenture Trustee.
No Notes shall be authenticated in lieu of or in exchange for any Notes canceled
as provided in this Section, 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

                                       14
<PAGE>

returned to it; provided, that such Issuer Order is timely and the Notes have
not been previously disposed of by the Indenture Trustee.

     SECTION 2.8 [Reserved].

     SECTION 2.9 Release of Trust Estate.

     (a) Except as otherwise provided in subsections (b) and (c) of this Section
2.9 and Section 11.1 hereof and the terms of the Transaction Documents, the
Indenture Trustee shall release property from the lien of this Indenture only
upon consent of the Insurer and 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 Master Servicer, on behalf of the Issuer and with the consent of
the Insurer, shall be entitled to obtain a release from the lien of this
Indenture for any Home Equity Loan and the related Mortgaged Property at any
time in accordance with the provisions of Section 3.08 of the Sale and Servicing
Agreement.

     (c) The Indenture Trustee shall, if requested by the Master Servicer,
temporarily release to the Master Servicer the Indenture Trustee's Mortgage File
pursuant to the provisions of Section 3.08 of the Sale and Servicing Agreement
upon compliance by the Master Servicer of the provisions thereof provided that
the Indenture Trustee's Mortgage 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, upon original issuance, will be
issued in the form of typewritten Notes representing the Book-Entry Notes, to be
delivered to The Depository Trust Company, the initial Clearing Agency or its
custodian, 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 thereof will receive a
definitive Note representing such Note Owner's interest in such Note, except as
provided in Section 2.12 below. Unless and until definitive, fully registered
Notes (the "Definitive Notes") have been issued to such Note Owners pursuant to
Section 2.12 below:

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

          (ii) the Note Registrar and the Indenture Trustee 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 conflict with
     any other provisions of this Indenture, the provisions of this Section
     shall control;

                                       15
<PAGE>

          (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
     below, 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 Amount of the 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, the Indenture 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 Clearing Agency or the Issuer
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 Clearing Agency or the Issuer is unable to locate a
qualified successor, (ii) the Issuer 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 Amount of such 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 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 or the Indenture
Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Notes, the 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 tax purposes, the
Class A Notes will qualify as indebtedness secured by the Trust Estate. 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

                                       16
<PAGE>

the applicable Book-Entry Note), agree to treat the Notes for all purposes as
indebtedness of the Issuer.

                                       17
<PAGE>
                                   ARTICLE III

                                    COVENANTS

     SECTION 3.1 Payment of Principal and Interest. The Issuer will duly and
punctually pay (or will cause to be duly and punctually paid) the principal of
and interest, if any, on the Notes in accordance with the terms of the Notes and
this Indenture. Without limiting the foregoing, the Indenture Trustee shall,
pursuant to Section 5.01 of the Sale and Servicing Agreement, distribute all
amounts on deposit in the Distribution Account on each Payment Date deposited
therein pursuant to the Sale and Servicing Agreement, and held therein for
distribution to the Noteholders for the benefit of such Noteholders and the
Insurer. 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 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 available from the Trust Estate, 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 3.1, the provisions of this
Section 3.1 shall control.

     SECTION 3.2 Maintenance of Office or Agency. The Issuer will maintain 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 Indenture Trustee to serve as its agent for the foregoing
purposes and to serve as Paying Agent with respect to the Notes. 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 3.3 Money for Payments To Be Held in Trust. As provided in Section
8.2(a) and (b), all payments of amounts due and payable with respect to any
Notes that are to be remitted from amounts withdrawn from the Distribution
Account pursuant to Section 8.2(c) shall be made on behalf of the Issuer by the
Indenture Trustee or by the Paying Agent, and no amounts so withdrawn from the
Distribution Account for payments on the Notes shall be paid over to the Issuer
except as provided in this Section 3.3.

     Any Paying Agent shall be appointed by Issuer Order with written notice
thereof to the Indenture Trustee. Any Paying Agent appointed by the Issuer shall
be a Person who 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.

                                       18
<PAGE>

     The Issuer will cause each Paying Agent to execute and deliver to the
Indenture Trustee 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 3.3, 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 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 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 terms
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.

     Any termination and release of a Trust Estate shall be done in accordance
with the provisions of Section 8.01 of the Sale and Servicing Agreement.

     SECTION 3.4 Existence.

     (a) Subject to Section 3.4(b) below, 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 it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other State or of

                                       19
<PAGE>

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 Trust Estate.

     (b) Any successor to the Owner Trustee appointed pursuant to Section 10.2
of the 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 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 3.5 Protection of Trust Estate. The Issuer will from time to time
execute and deliver all such supplements and amendments hereto and all such
financing statements, continuation statements, instruments of further assurance
and other instruments, and will take such other action necessary or advisable
to:

          (i) provide further assurance with respect to a Grant of all or any
     portion of the related Trust Estate;

          (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 Trust Estate; or

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

     SECTION 3.6 Annual Opinions as to the Trust Estate.

     On or before [Date] in each calendar year, beginning in [ ], the Issuer
shall furnish to the Indenture Trustee an Opinion of Counsel either stating
that, in the opinion of such counsel, such action has been taken with respect to
the recording, filing, re-recording and refiling of 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

                                       20
<PAGE>

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 [Date] of the following calendar year.

     SECTION 3.7 Performance of Obligations; Servicing of Home Equity Loans.

     (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 Trust Estate 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 to assist it in performing its duties under this Indenture, and
any performance of such duties by a Person identified to the Indenture Trustee
in an Officer's Certificate of the Issuer shall be deemed to be action taken by
the Issuer. Initially, the Issuer has contracted with the Administrator and [ ]
to assist the Issuer in performing its duties under this Indenture.

     (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, the Transaction Documents and in the
instruments and agreements included in the Trust Estate, 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, the
Home Equity Loan Purchase Agreement 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 assumption and modification
agreements required to be recorded by the terms of the Sale and Servicing
Agreement and the Home Equity Loan Purchase 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
Transaction Document or any provision thereof without the consent of the
Indenture Trustee, the Insurer and the Holders of at least a majority of the
Outstanding Amount of the Notes.

     (d) Subject to the terms of the Sale and Servicing Agreement, if the Issuer
shall have knowledge of the occurrence of an Master Servicer Termination Event
under the Sale and Servicing Agreement, the Issuer shall promptly notify the
Indenture Trustee, the Depositor, the Insurer, the Master Servicer and the
Rating Agencies thereof, and shall specify in such notice the action, if any,
the Master Servicer is taking with respect of such default. If such a Master
Servicer Termination Event 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 Equity Loans, the Issuer shall take all
reasonable steps available to it to remedy or cause to be remedied such failure.

                                       21
<PAGE>

     (e) Subject to the terms of the Sale and Servicing Agreement, as promptly
as possible after the giving of notice of termination to the Master Servicer of
the Master Servicer's rights and powers pursuant to Section 7.01 of the Sale and
Servicing Agreement, a successor master servicer (the "Successor Master
Servicer") shall be appointed pursuant to Section 7.02 of the Sale and Servicing
Agreement. If the Indenture Trustee shall succeed to the Master Servicer's
duties as master servicer of the Home Equity Loans as provided herein, it shall
do so in its individual capacity and not in its capacity as Indenture Trustee
and, accordingly, the provisions of Article VI hereof shall be inapplicable to
the Indenture Trustee in its duties as successor Master Servicer and the
servicing of the Home Equity Loans. In case the Indenture Trustee shall become
successor Master Servicer under the Sale and Servicing Agreement, the Indenture
Trustee shall be entitled to appoint as Successor Master Servicer any one of its
Affiliates acceptable to the Insurer, provided that it shall be fully liable for
the actions and omissions of such Affiliate in such capacity as Successor Master
Servicer.

     (f) 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 the Insurer (which consent shall
not be unreasonably withheld), amend, modify, waive, supplement, terminate or
surrender, or agree to any amendment, modification, supplement, termination,
waiver or surrender of, the terms of the Trust Estate (except to the extent
otherwise provided in the Sale and Servicing Agreement or the other Transaction
Documents), or waive timely performance or observance by the Master Servicer or
the Depositor under the Sale and Servicing Agreement; and (ii) that any such
amendment shall not (A) reduce in any manner the amount of, or delay the timing
of, collections of payments on home equity loans, (B) reduce in any manner the
amount of, or delay the timing of, payments that are required to be made on a
Note without the consent of the affected Noteholder, (C) impair the right of any
Noteholder to institute suit for the enforcement of the provisions of the
Agreement, or (D) reduce the aforesaid percentage of the Notes that is required
to consent to any such amendment, without the consent of the Holders of all the
outstanding Notes. If any such amendment, modification, supplement or waiver
shall be so consented to by the Indenture Trustee and the Insurer, the Issuer
agrees, promptly following a request by the Indenture Trustee or the 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
or the Insurer may deem necessary or appropriate in the circumstances.

     SECTION 3.8 Negative Covenants. So long as any Notes are Outstanding, the
Issuer shall not, unless the Insurer otherwise consents in writing:

          (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
     Trust Estate, unless directed to do so by the Indenture Trustee and
     consented to by the 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 payments under the Code) or assert any claim against any
     present or former Noteholder

                                       22
<PAGE>

     by reason of the payment of the taxes levied or assessed upon any part of
     the related Trust Estate;

          (iii) engage in any business or activity other than as permitted by
     the Trust Agreement or other than in connection with, or relating to, the
     issuance of Notes pursuant to this Indenture and the Ownership Interest
     pursuant to the Trust Agreement, or amend the 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 be expressly permitted hereby, (B) permit any lien,
     charge, excise, claim, security interest, mortgage or other encumbrance
     (other than the lien of this Indenture) to be created on or extend to or
     otherwise arise upon or burden the Trust Estate or any part thereof or any
     interest therein or the proceeds thereof (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 Mortgagor) or (C) permit the lien of this Indenture
     not to constitute a valid first priority (other than with respect to any
     such tax, mechanics' or other lien) security interest in the Trust Estate;

          (viii) [reserved]; 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) a taxable mortgage pool
     pursuant to Section 7701(i) of the Code and the corresponding regulations.

     SECTION 3.9 Annual Statement as to Compliance. The Issuer will deliver to
the Indenture Trustee and the Insurer, within 120 days after the end of each
fiscal year of the Issuer (commencing with the fiscal year [ ]), an Officer's
Certificate stating, as to the Authorized Officer signing such Officer's
Certificate, that:

                                       23

<PAGE>
               (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

               (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 Trust Agreement will be, entering into this
Indenture solely as Owner Trustee under the 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 Master Servicer's Obligations. The Issuer shall cause the
Master Servicer to comply with its obligations under the terms of the Sale and
Servicing Agreement.

          SECTION 3.12 Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer or to the 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 (x)
distributions to the Master Servicer, the Indenture Trustee, the Owner Trustee,
the Ownership Interest and the Noteholders as contemplated by, and to the extent
funds are available for such purpose under, the Sale and Servicing Agreement or
the 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 Transaction Documents.

          SECTION 3.13 Treatment of Notes as Debt for All Purposes.

          The Issuer shall treat the Notes as indebtedness for all purposes.

          SECTION 3.14 Notice of Events of Default. The Issuer shall give the
Indenture Trustee, the Insurer and the Rating Agencies prompt written notice of
each Event of Default hereunder, each default on the part of the Master Servicer
of its obligations under the Sale and Servicing Agreement and each default on
the part of the Depositor of its obligations under the Sale and Servicing
Agreement.

                                       24
<PAGE>

          SECTION 3.15 Further Instruments and Acts. Upon request of the
Indenture Trustee or the 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.

          SECTION 3.16 Issuer May Consolidate, etc.

          (a) The Issuer shall not consolidate or merge with or into any other
Person, unless:

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

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

               (iii) the Insurer shall have consented in writing thereto and
          each Rating Agency shall have notified the Issuer that such
          transaction will not cause a reduction or withdrawal by a Rating
          Agency of its then current rating of the Notes, without regard to the
          Insurance Policy;

               (iv) the Issuer shall have received an Opinion of Counsel (and
          shall have delivered copies thereof to the Indenture Trustee and the
          Insurer) to the effect that such transaction will not have any
          material adverse tax consequence to the Issuer, any Noteholder or the
          Insurer;

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

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

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

                                       25
<PAGE>

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

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

               (iii) the Insurer shall have consented thereto, and each Rating
          Agency shall have notified the Issuer that such transaction will not
          cause a reduction or withdrawal by a Rating Agency of its then current
          rating of the Notes, without regard to the Insurance Policy;

               (iv) the Issuer shall have received an Opinion of Counsel (and
          shall have delivered copies thereof to the Indenture Trustee) to the
          effect that such transaction will not have any material adverse tax
          consequence to the Issuer, the Insurer or any Noteholder;

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

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

          SECTION 3.17 Successor or Transferee.

          (a) Upon any consolidation or merger of the Issuer in accordance with
Section 3.16(a) above, the Person formed by or surviving such consolidation or
merger (if other than the Issuer)

                                       26
<PAGE>

shall succeed to, and be substituted for, and may exercise every right and power
of, the Issuer under this Indenture with the same effect as if such Person had
been named as the Issuer herein.

          (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.16(b) above, the Issuer shall be released from
every covenant and agreement (except such obligations that survive such
transfer) of this Indenture to be observed or performed on the part of the
Issuer with respect to the Notes immediately upon the delivery of written notice
to the Indenture Trustee of such conveyance or transfer.

          SECTION 3.18 No Other Business. The Issuer shall not engage in any
business other than financing, purchasing, owning, selling and managing the Home
Equity Loans and the issuance of the Notes in the manner contemplated by this
Indenture and the Transaction Documents and all activities incidental thereto.

          SECTION 3.19 No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Notes.

          SECTION 3.20 Guarantees, Loans, Advances and Other Liabilities. Except
as contemplated by this Indenture or the other Transaction Documents, the Issuer
shall not make any loan or advance or credit to, or guarantee (directly or
indirectly or by an instrument having the effect of assuring another's payment
or performance on any obligation or capability of so doing or otherwise),
endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase,
repurchase or acquire (or agree contingently to do so) any stock, obligations,
assets or securities of, or any other interest in, or make any capital
contribution to, any other Person.

          SECTION 3.21 Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

          SECTION 3.22 Representations and Warranties of the Issuer.

          (a) The Issuer hereby represents and warrants, for the benefit of the
Indenture Trustee and the Noteholders, that:

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

               (ii) the Collateral constitutes "general intangibles" within the
          meaning of the UCC;

               (iii) immediately prior to its Grant of the Collateral provided
          for herein, the Issuer had good title to, and was the sole owner of,
          the Collateral, free and clear of any Lien of any Person;

                                       27
<PAGE>

               (iv) the Issuer has received all consents and approvals required
          by the terms of the Collateral for the transfer to the Indenture
          Trustee of its rights and interests therein;

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

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

          (b) The foregoing representations and warranties shall survive
satisfaction and discharge of this Indenture.

          (c) The foregoing representations and warranties may not be waived by
the Indenture Trustee[, the Insurer] or any Noteholder.

                                       28
<PAGE>

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

         SECTION 4.1 Satisfaction and Discharge of Indenture. Subject to and in
accordance with Section 8.01 of the Sale and Servicing Agreement, this Indenture
shall cease to be of further effect with respect to the Notes (except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.3, 3.4, 3.5, 3.8 and
3.10 hereof, (v) the rights, obligations and immunities of the Indenture Trustee
hereunder (including the rights of the Indenture Trustee under Section 6.7
hereof and the obligations of the Indenture Trustee under Section 4.2 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 2.4 and (ii) Notes for
              whose payment money has theretofore been deposited in trust or
              segregated and held in trust by the Issuer and thereafter repaid
              to the Issuer or discharged from such trust, as provided in
              Section 3.3 above) have been delivered to the Indenture Trustee
              for cancellation; or

         (2)  all Notes not theretofore delivered to the Indenture Trustee for
              cancellation

              a.   have become due and payable,

              b.   will become due and payable within one year prior to the
                   Final Payment 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,

and the Issuer, in the case of a., b. or c. above, has irrevocably deposited or
caused to be irrevocably 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 Final Payment Date or Redemption Date (if Notes shall have been
called for

                                       29
<PAGE>

redemption pursuant to Section 10.1 hereof) and all amounts due and owing the
Insurer and the Indenture Trustee have been paid, as the case may be;

         (B) the later of (a) twelve months after payment in full of all
outstanding obligations under the Notes, (b) the payment in full of all unpaid
fees and expenses of the Indenture Trustee hereunder and the other Transaction
Documents, (c) the payment of all amounts due and owing to the Insurer for
unpaid premiums and unreimbursed Insured Payments and all other amounts owing to
the Insurer, together with interest thereon as provided under the Insurance and
Reimbursement Agreement 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 has delivered to the Indenture Trustee and the 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 11.1(a)
hereof and, subject to Section 11.2 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 4.2 Application of Trust Money. All moneys deposited with the
Indenture Trustee pursuant to Sections 3.3 and 4.1 hereof shall be held in trust
and applied by it, in accordance with the provisions of the Sale and Servicing
Agreement, to the payment, either directly or through any Paying Agent to the
Holders of the particular Notes and the Insurer 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 for principal and interest; 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 4.3 Subrogation and Cooperation.

         (a) The Issuer and the Indenture Trustee acknowledge that (i) to the
extent the Insurer makes payments under the Insurance Policy on account of
principal of or interest on the Home Equity Loans, the Insurer will be fully
subrogated to the rights of the Noteholders to receive such principal of and
interest on the Home Equity Loans of the related Trust Estate, and (ii) the
Insurer shall be paid such principal and interest only from the sources and in
the manner provided herein and in the Insurance and Reimbursement Agreement for
the payment of such principal and interest.

         The Indenture Trustee shall cooperate in all respects with any
reasonable request or direction by the Insurer for action to preserve or enforce
the Insurer's rights or interest under this Indenture or the Insurance and
Reimbursement Agreement, consistent with this Indenture and without limiting the
rights of the Noteholders as otherwise set forth in the Indenture, including
without limitation upon the occurrence and continuance of an Insurer Default, a
request to take any one or more of the following actions:

                                       30
<PAGE>

         (i) institute Proceedings for the collection of all amounts then
     payable on the Notes or under this Indenture in respect to the Notes and
     all amounts payable under the Insurance and Reimbursement Agreement and to
     enforce any judgment obtained and collect from the Issuer monies adjudged
     due;

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

         (iii) file or record all assignments that have not previously been
     recorded;

         (iv) institute Proceedings from time to time for the complete or
     partial foreclosure of this Indenture; and

         (v) 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 Insurer hereunder.

         Following the payment in full of the Notes, the Insurer shall continue
to have all rights and privileges provided to it under this Section 4.3 and in
all other provisions of this Indenture, until all amounts owing to the Insurer
have been paid in full.

         SECTION 4.4 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 3.3 above and thereupon such Paying Agent shall be released from all
further liability with respect to such moneys.

                                       31
<PAGE>
                                   ARTICLE V

                                    REMEDIES

         SECTION 5.1 Events of Default. "Event of Default," wherever used
herein, means with respect to the Notes 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):

         (a) 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

         (b) default in the payment in full of the principal of the Class A Note
Principal Amount on the Final Payment Date; or

         (c) 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 5.1 specifically dealt with), or any representation or warranty of
the Issuer made in this Indenture, 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 or to the Issuer and the Indenture
Trustee by the Insurer or the Holders of at least 25% of the Outstanding Amount
of the Notes, a written notice specifying such default or incorrect
representation or warranty and requiring it to be remedied and stating that such
notice is a notice of Default hereunder; or

         (d) [reserved]; or

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

         (f) 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

                                       32
<PAGE>

Trust Estate, or the making by the Issuer of any general assignment for the
benefit of creditors, or the failure by the Issuer generally to pay its debts as
such debts become due, or the taking of any action by the Issuer in furtherance
of any of the foregoing.

         The Issuer shall deliver to the Indenture Trustee, the Transferor and
the Insurer within five days after the occurrence thereof, written notice in the
form of an Officer's Certificate of any event which with the giving of notice
and the lapse of time would become an Event of Default under clause (c) above,
its status and what action the Issuer is taking or proposes to take with respect
thereto.

         SECTION 5.2 Acceleration of Maturity; Rescission and Annulment. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee, at the direction of the Insurer or upon the prior written
direction of the Holders of Notes representing not less than [51]% of the
Outstanding Amount of the Notes, with the written consent of the Insurer, may
declare all the Notes to be 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 unpaid principal amount of such Notes, together with
accrued and unpaid interest thereon through the date of acceleration, shall
become immediately due and payable.

         At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided, the
Insurer or the Holders of Notes representing a majority of the Outstanding
Amount of the related Notes, with the written consent of the Insurer, by written
notice to the Issuer and the Indenture Trustee, may rescind and annul such
declaration and its consequences if:

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

                   (A) all payments of principal of and 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

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

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

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

                                       33
<PAGE>

         SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

         (a) The Issuer covenants that if (i) default occurs 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 occurs in the payment of
the principal of or any installment of the principal of any Note when the same
becomes due and payable, and such default continues for a period of five days,
the Issuer will, upon demand of the Indenture Trustee or the Insurer if the
Insurer has made a payment under the Insurance Policy, pay to the Indenture
Trustee or the Insurer, as applicable, for the benefit of the Holders of the
Notes, the whole amount then due and payable on such Notes for principal and
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, the Insurer and its agents and counsel.

         (b) In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee may, and shall at the direction of the
Insurer, 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.

         (c) If an Event of Default occurs and is continuing, the Indenture
Trustee may, with the consent of the Insurer, and shall at the written direction
of the Insurer or of the Holders of [51]% of the Outstanding Amount of the
Notes, with the consent of the Insurer, as more particularly provided in Section
5.4 below, proceed to protect and enforce its rights and the rights of the
Noteholders and the Insurer, [by such appropriate Proceedings as the Insurer
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 Trust Estate, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, 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 5.3, shall be
entitled and empowered by

                                       34
<PAGE>

intervention in such Proceedings with the consent of or at the direction of the
Insurer or otherwise:

              (i) to file and prove a claim or claims for the whole amount of
         principal and interest owing and unpaid in respect of the 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 its 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)), and of the
         Noteholders and the Insurer allowed in such Proceedings;

              (ii) unless prohibited by applicable law and regulations, to vote
         on behalf of the Holders of Notes and the Insurer 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 Indenture
         Trustee and the Insurer 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 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 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, 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 Insurer any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder
thereof or to authorize the Indenture Trustee to vote in respect of the claim of
any Noteholder or the Insurer 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

                                       35
<PAGE>

express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Indenture Trustee, each
predecessor Indenture Trustee and their respective agents and attorneys, shall
be for the ratable benefit of the Holders of the Notes.

         (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.

         SECTION 5.4 Remedies; Priorities.

         (a) If an Event of Default shall have occurred and be continuing of
which a Responsible Officer of the Indenture Trustee has actual knowledge, the
Indenture Trustee may with the consent of the Insurer, or, at the direction of
the Insurer, shall or, if an Insurer Default shall be continuing, at the
direction of a majority of the Holders of the Notes shall, do one or more of the
following (subject to Section 5.5 below):

              (i) institute Proceedings in its own name and as trustee of an
         express trust for the collection of all amounts then payable on the
         related Notes or under this Indenture with respect thereto, whether by
         declaration or otherwise, and all amounts payable under the Insurance
         and Reimbursement Agreement, 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 of this Indenture with respect to the Trust Estate;

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

              (iv) sell the Trust Estate 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, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee obtains the consent of the Insurer and the Holders of 100% of
the Outstanding Amount of the Notes, (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 interest and
to reimburse the Insurer for any unreimbursed Insured Payments and any other
amounts due the Insurer under the Insurance and Reimbursement Agreement or (C)
the Indenture Trustee determines that the Trust Estate 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 the Insurer and the
Holders of 66-2/3% of the

                                       36
<PAGE>

Outstanding Amount of the Notes. In determining such sufficiency or
insufficiency with respect to clauses (B) and (C) above, the Indenture Trustee
may, but need not, obtain and rely upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the feasibility of such
proposed action and as to the sufficiency of the Trust Estate for such purpose.

         (b) If the Indenture Trustee collects any money or property pursuant to
this Article V, the Indenture Trustee and the Paying Agent in respect of amounts
due on the Senior Interest Participation shall pay out the money or property in
the following order:

              FIRST: to the Indenture Trustee for the Indenture Trustee Fee then
         due and any costs or expenses incurred by it in connection with the
         enforcement of the remedies provided for in this Article V and to the
         Owner Trustee for the Owner Trustee Fee then due;

              SECOND: to the Noteholders for amounts due and unpaid on the Notes
         for interest pro rata among the Holders of the Notes, according to the
         amounts due and payable on such Notes;

              THIRD: 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 until the Class A Note Principal Amount is
         reduced to zero;

              FOURTH: to the Insurer, any other amounts owed to the Insurer
         under the Insurance and Reimbursement Agreement; and

              FIFTH: to the Owner Trustee, as applicable, for any amounts to be
         distributed, to the holder of the Ownership Interest, in the manner set
         forth in Section 5.01 of the Sale and Servicing Agreement.

         The Indenture Trustee may fix a record date and payment date for any
payment to be made to the Noteholders pursuant to this Section 5.4. At least 15
days before such record date, the Indenture Trustee shall mail to each
Noteholder and the Issuer a notice that states the record date, the payment date
and the amount to be paid.

         SECTION 5.5 Optional Preservation of the Trust Estate. If the Notes
have been declared to be due and payable under Section 5.2 above following an
Event of Default and such declaration and its consequences have not been
rescinded and annulled, the Indenture Trustee may with the consent of the
Insurer, but need not (but shall at the written direction of the Insurer), elect
to maintain possession of the Trust Estate. It is the desire of the parties
hereto and the Noteholders that there be at all times sufficient funds for the
payment of principal of and interest on the Notes (although the parties hereto
understand that there exists the possibility of a shortfall in collections of
the Home Equity Loans), and the Indenture Trustee shall take such desire into
account when determining whether or not to maintain possession of the Trust
Estate. In determining whether to maintain possession of the Trust Estate, the
Indenture Trustee may, but need not, obtain and rely upon an opinion of an
Independent investment banking or

                                       37
<PAGE>

accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

         SECTION 5.6 Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless the Insurer has otherwise consented in writing thereto
and:

         (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 Amount of the
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 60 days after its receipt of such notice,
request and offer of indemnity has failed to institute such Proceedings; and

         (e) no direction inconsistent with such written request has been given
to the Indenture Trustee during such 60-day period by the Holders of a majority
of the Outstanding Amount of the Notes.

         It is understood and intended that no Noteholders 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 Noteholders 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.

         SECTION 5.7 Unconditional Rights of Noteholders To Receive Principal
and 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 respective due date thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) to
the extent funds are available therefor out of the Trust Estate 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 5.8 Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right or
remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all

                                       38
<PAGE>

rights and remedies of the Indenture Trustee and the Noteholders shall continue
as though no such Proceeding had been instituted.

         SECTION 5.9 Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee, the 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 Insurer or any Noteholder 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 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 Insurer or by the Noteholders, as the case may be.

         SECTION 5.11 Control by Noteholders. The Insurer (so long as no Insurer
Default exists) or if an Insurer Default exists the Holders of a majority of the
Outstanding Amount of the Notes with the consent of the Insurer, shall have the
right to direct the time, method and place of conducting any Proceeding for any
remedy available to the Indenture Trustee with respect to the Notes or
exercising any trust or power conferred on the Indenture Trustee; provided that:

         (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 5.4 above, any direction to
the Indenture Trustee to sell or liquidate the Trust Estate shall be in writing
by the Insurer (so long as no Insurer Default exists) or the Holders of Notes
representing not less than 100% of the Outstanding Amount of the Notes with the
consent of the Insurer;

         (c) if the conditions set forth in Section 5.5 above have been
satisfied and the Indenture Trustee elects to retain the Trust Estate pursuant
to such Section 5.5, then any direction to the Indenture Trustee by Holders of
Notes representing less than 100% of the Outstanding Amount of the Notes to sell
or liquidate the Trust Estate 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 6.1 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.

                                       39
<PAGE>

         SECTION 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.2 above, the
Insurer (so long as no Insurer Default exists) or the Holders of Notes
representing not less than 51% of the Outstanding Amount of the Notes, with the
consent of the Insurer (so long as no Insurer Default exists), 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 Holder of each Note. In the case of any such waiver, the Issuer,
the Insurer, the Indenture Trustee and the Holders of the Notes shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other 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, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount 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, 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

                                       40
<PAGE>

Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders
shall be impaired by the recovery of any judgment by the Indenture Trustee
against the Issuer or by the levy of any execution under such judgment upon any
portion of the Trust Estate or upon any of the assets of the Issuer. Any money
or property collected by the Indenture Trustee shall be applied in accordance
with Section 5.4(b) above.

         SECTION 5.16 Performance and Enforcement of Certain Obligations.

         (a) Promptly following a request from the Insurer or the Indenture
Trustee, with the consent of the Insurer to do so, the Issuer shall take all
such lawful action as the Indenture Trustee or the Insurer, as applicable, may
request to compel or secure the performance and observance by the Depositor 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 Insurer, as
applicable, including the transmission of notices of default on the part of the
Depositor or the Master Servicer thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by the
Depositor or the Master 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, subject to the rights of the Insurer hereunder and under the
Sale and Servicing Agreement, may, and at the direction (which direction shall
be in writing or by telephone, confirmed in writing promptly thereafter) of the
Insurer or the Holders of a majority of the Outstanding Amount if there is an
Insurer Default shall, exercise all rights, remedies, powers, privileges and
claims of the Issuer against the Depositor 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 observance by the
Depositor, 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.

                                       41
<PAGE>

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

         SECTION 6.1 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 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; however, 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 6.1;

              (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 above or any
         direction from the Insurer that the Insurer is entitled to give under
         the terms of the Transaction Documents.

         (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
6.1.

         (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.

                                       42
<PAGE>

         (f) Money held in trust by the Indenture Trustee shall be segregated
from other funds 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; and none of the provisions contained in this Indenture
shall in any event require the Indenture Trustee to perform, or be responsible
for the manner of performance of, any of the obligations of the Master Servicer,
the Issuer or Transferor under this Indenture except during such time, if any,
as the Indenture Trustee shall be the successor to, and be vested with the
rights, duties, powers and privileges of, the Master Servicer in accordance with
the terms of this Indenture.

         (h) The Indenture Trustee shall challenge or cause to be challenged any
attempt at substantive consolidation of the assets and liabilities of the Issuer
with those of any Owner (as the term "Owner" is defined in the Trust Agreement)
in connection with any insolvency proceeding of the Issuer.

         (i) 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 6.1 and to the provisions of
the TIA.

         (j) Subject to the other provisions of this Indenture and without
limiting the generality of this Section 6.1, the Indenture Trustee shall have no
duty (A) to see to any recording, filing, or depositing of this Indenture or any
agreement referred to herein or any financing statement or continuation
statement evidencing a security interest, or to see to the maintenance of any
such recording or filing or depositing or to any rerecording, refiling or
redepositing of any thereof, (B) to see to any insurance, (C) to see to the
payment or discharge of any tax, assessment, or other governmental charge or any
lien or encumbrance of any kind owing with respect to, assessed or levied
against, any part of the Trust Estate other than from funds available in the
Distribution Account, (D) to confirm or verify the contents of any reports or
certificates of the Issuer, Insurer or Master Servicer delivered to the
Indenture Trustee pursuant to this Indenture believed by the Indenture Trustee
to be genuine and to have been signed or presented by the proper party or
parties.

         SECTION 6.2 Rights of Indenture Trustee.

         (a) The Indenture Trustee may conclusively rely and shall be fully
protected in acting or refraining from acting on any resolution, certificate of
auditors or any other certificate, statement, instrument, opinion, report,
notice, request, consent, order, appraisal, bond or other paper or 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.

                                       43
<PAGE>

         (b) Before the Indenture Trustee acts or refrains from acting, it may
require and shall be entitled to receive 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 and the Indenture Trustee shall
not be responsible for any misconduct or negligence on the part of such agent,
attorney, nominee or custodian appointed by the Indenture Trustee with due care.

         (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 consult with counsel, and the advice or
opinion of counsel selected by it with due care with respect to legal matters
relating to this Indenture, the Notes and the Transaction Documents to which it
is a party, 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.

         (f) The Indenture Trustee shall be under no obligation to exercise any
of the trusts or powers vested in it by this Indenture or to institute, conduct
or defend any litigation hereunder or in relation hereto at the request, order
or direction of the Insurer or any of the Noteholders, pursuant to the
provisions of this Indenture, unless the Insurer or such Noteholders shall have
offered to the Indenture Trustee reasonable security or indemnity against the
costs, expenses and liabilities which may be incurred therein or thereby;
nothing contained herein shall, however, relieve the Indenture Trustee of the
obligation, upon the occurrence of an Event of Default of which a Responsible
Officer of the Indenture Trustee shall have actual knowledge (which has not been
cured), to exercise such of the rights and powers vested in it by this
Indenture, and to use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.

         (g) The Indenture Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond or
other paper or document, unless requested in writing to do so by the Insurer or
the Majority Noteholders; provided, however, that if the payment within a
reasonable time to the Indenture Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the
opinion of the Indenture Trustee, not reasonably assured to the Indenture
Trustee by the security afforded to it by the terms of this Indenture, the
Indenture Trustee may require reasonable indemnity against such cost, expense or
liability as a condition to taking any such action. The reasonable expense of
every such examination shall be paid by the Issuer or, if paid by the Indenture
Trustee, shall be repaid by the Issuer upon demand.

                                       44
<PAGE>

         (h) The right of the Indenture Trustee to perform any discretionary act
enumerated in this Indenture shall not be construed as a duty, and the Indenture
Trustee shall not be answerable for other than its negligence or willful
misconduct in the performance of such act.

         (i) The Indenture Trustee shall not be required to give any bond or
surety in respect of the execution of the Trust Fund created hereby or the
powers granted hereunder.

         (j) The Indenture Trustee shall have no liability in connection with
the malfeasance or nonfeasance by the Issuer, the Master Servicer or the
Administrator. The Indenture Trustee shall have no liability in connection with
compliance by the Issuer or the Master Servicer with statutory or regulatory
requirements related to the Collateral or the Trust Estate. The Indenture
Trustee shall not make or be deemed to have made any representations or
warranties with respect to the Collateral or the Trust Estate or the validity or
sufficiency of any assignment of the Collateral or the Trust Estate to the
Indenture Trustee.

         (k) In the event that the Indenture Trustee is also acting as Paying
Agent or Registrar hereunder, the rights, protection, immunities and indemnities
afforded to the Indenture Trustee pursuant to this Article VI shall also be
afforded to such Paying Agent or Registrar.

         SECTION 6.3 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 below.

         SECTION 6.4 Indenture Trustee's Disclaimer. The Indenture Trustee shall
not be (i) responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, (ii) shall not be accountable for the
Issuer's use of the proceeds from the Notes or (iii) 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 6.5 Notice of Defaults. If a Default occurs and is continuing
and if it is actually known to a Responsible Officer of the Indenture Trustee,
the Indenture Trustee shall give prompt notice thereof to the Insurer. The
Indenture Trustee shall not be charged with the knowledge of an Event of Default
unless a Responsible Officer has received written notice or has actual knowledge
thereof. The Indenture Trustee shall mail to each Noteholder, the Master
Servicer and the Depositor notice of the Default within 30 days after it occurs
at the expense of the Issuer. Except in the case of a Default in payment of
principal of or interest on any Note, the Indenture Trustee may withhold the
notice to the Noteholders if and so long as a committee of its Responsible
Officers in good faith determines that withholding the notice is in the
interests of Noteholders.

                                       45
<PAGE>

         SECTION 6.6 Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver to each Noteholder such information as may be required to
enable such holder to prepare its federal and state income tax returns. In
addition, upon Issuer Request, the Indenture Trustee shall promptly furnish such
information reasonably requested by the Issuer that is reasonably available to
the Indenture Trustee to enable the Issuer to perform its federal and state
income tax reporting obligations.

         SECTION 6.7 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 5.01 of the Sale
and Servicing Agreement (which compensation shall not be limited by any law on
compensation of a trustee of an express trust) and shall be entitled to
reimbursement 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. The Indenture Trustee shall be indemnified from the
Trust Estate 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 promptly of any claim for which it may seek indemnity. Failure
by the Indenture Trustee to so notify the Issuer shall not relieve the Issuer of
its obligations hereunder. The Issuer shall defend any such claim, and the
Indenture Trustee may have separate counsel and the Issuer shall pay the fees
and expenses of such counsel. The Indenture Trustee shall not be entitled to any
such reimbursement of any expense or to indemnification against any loss,
liability or expense incurred by the Indenture Trustee through the Indenture
Trustee's own willful misconduct, negligence or bad faith. Anything in this
Indenture to the contrary notwithstanding, in no event shall the Indenture
Trustee be liable for special, indirect or consequential loss or damage of any
kind whatsoever (including but not limited to lost profits), even if the
Indenture Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action. This indemnity shall survive the termination
of this Indenture.

         The Issuer's payment obligations to the Indenture Trustee pursuant to
this Section 6.7 shall survive the discharge of this Indenture. When the
Indenture Trustee incurs expenses or provides services after the occurrence of a
Default specified in Section 5.1(e) or (f) hereof with respect to the Issuer,
the expenses and fees for such services 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 6.8 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 acceptable to the Insurer pursuant to this Section. The
Indenture Trustee may resign at any time by so notifying the Issuer and the
Insurer. The Insurer or the Holders of a majority in Outstanding Amount of the
Notes (with the prior written consent of the Insurer) may remove the Indenture
Trustee by so notifying the Indenture Trustee and the Insurer (if given by such
Noteholders) and may appoint a successor

                                       46
<PAGE>

Indenture Trustee acceptable to the Insurer. The Issuer shall (with the prior
written consent of the Insurer) remove the Indenture Trustee if:

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

         (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 with the consent of the
Insurer, which consent shall not be unreasonably withheld.

         A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, the 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 30 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee 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 below, any
Noteholder may (with the consent of the Insurer) petition any court of competent
jurisdiction for the removal of the Indenture Trustee and the appointment of a
successor Indenture Trustee.

         Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section 6.8, the Issuer's obligations under Section 6.7 above shall
continue for the benefit of the retiring Indenture Trustee.

         SECTION 6.9 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, that
such corporation or banking association shall be otherwise qualified and
eligible under Section 6.11 below.

         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

                                       47
<PAGE>

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 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 Trust Estate may at the time be located, the Indenture
Trustee shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Trust, and to vest in
such Person or Persons, in such capacity and for the benefit of the Noteholders
and the Insurer, such title to the Trust Estate, or any part hereof, and,
subject to the other provisions of this Section 6.10, such powers, duties,
obligations, rights and trusts as the Indenture Trustee may consider necessary
or desirable. No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor trustee under Section 6.11 below
and no notice to Noteholders of the appointment of any co-trustee or separate
trustee shall be required under Section 6.8 hereof.

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

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

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

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

         (c) Any notice, request or other writing given to the Indenture Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this

                                       48
<PAGE>

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 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. The Indenture Trustee shall remain
primarily liable for all actions of a co-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 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 who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated.

         SECTION 6.13 Representations and Warranties. The Indenture Trustee
hereby represents and warrants that:

         (a) The Indenture Trustee is duly organized, validly existing and in
good standing under the laws of State of [ ], with power and authority to own
its properties and to conduct its business as such properties are currently
owned and such business is currently conducted.

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

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

                                       49
<PAGE>

         SECTION 6.14 Directions to Indenture Trustee. The Indenture Trustee is
hereby directed:

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

         (b) to authenticate and deliver the Notes substantially in the form
prescribed by Exhibit A in accordance with the terms of this Indenture; and

         (c) to take all other actions as shall be required to be taken by the
terms of this Indenture.

                                       50
<PAGE>
                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

         SECTION 7.1 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
Noteholders as of such Record Date, (b) at such other times as the Indenture
Trustee and the Insurer 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.

         SECTION 7.2 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 Noteholders contained in
the most recent list furnished to the Indenture Trustee as provided in Section
7.1 above and the names and addresses of Noteholders 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 7.1 upon receipt of a new list
so furnished.

         (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 7.3 Reports by Issuer.

         (a) The Issuer shall:

              (i) file with the Indenture Trustee, within 15 days after the
         Issuer is required to file the same with the Commission, copies of the
         annual reports and of the information, documents and other reports (or
         copies of such portions of any of the foregoing as the Commission may
         from time to time by rules and regulations prescribe) 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 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

                                       51
<PAGE>

              (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 7.3(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 7.4 Reports by Indenture Trustee. If required by TIA Section
313(a), within 60 days after each August 1, beginning with [ ], the Indenture
Trustee shall mail to each Noteholder as required by TIA Section 313(c) and to
the Insurer a 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.

                                       52
<PAGE>

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

         SECTION 8.1 Collection of Money. 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 Trust Estate, the Indenture Trustee may take such action as
may be appropriate to enforce such payment or performance, including the
institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V herein.

         SECTION 8.2 Accounts; Distributions.

         (a) On or prior to the Closing Date, the Indenture Trustee shall
establish and maintain or cause to be established and maintained, in the name of
the Indenture Trustee for the benefit of the Noteholders, the Transferor and the
Insurer, the Distribution Account as provided in Article V of the Sale and
Servicing Agreement into which amounts shall be deposited in accordance with the
terms of the Sale and Servicing Agreement.

         (b) The Indenture Trustee shall deposit any amounts representing
payments on and any collections in respect of the Home Equity Loans received by
it, if any, and any other amounts required by the terms of the Transaction
Documents to be deposited, immediately following receipt thereof, including,
without limitation, all amounts withdrawn by the Master Servicer from the
Collection Account pursuant to Section 3.03 of the Sale and Servicing Agreement
for deposit to the Distribution Account. Amounts on deposit in the Distribution
Account may be invested in Eligible Investments pursuant to Section 5.06 of the
Sale and Servicing Agreement.

         (c) On each Payment Date and the Redemption Date, to the extent funds
are available in the Distribution Account, the Indenture Trustee shall make the
distributions and payments in the amounts and in the priority set forth in
Section 5.01 of the Sale and Servicing Agreement (except as otherwise provided
in Section 5.4(b) herein).

         (d) On each Payment Date and the Redemption Date, to the extent of the
interest of the Indenture Trustee in the Distribution Account (as described in
Section 5.05 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 Distribution Account as required pursuant to Section 5.01
of the Sale and Servicing Agreement.

                                       53
<PAGE>

         SECTION 8.3 [Reserved].

         SECTION 8.4 Master Servicer's Monthly Statements.

         On each Payment Date, the Indenture Trustee shall deliver the Servicing
Certificate (as defined in the Sale and Servicing Agreement) with respect to
such Payment Date to DTC and the Rating Agencies.

         SECTION 8.5 [Reserved].

         SECTION 8.6 Opinion of Counsel. The Indenture Trustee shall receive at
least seven days notice when requested by the Issuer to take any action pursuant
to Section 2.9(a) herein, accompanied by copies of any instruments involved, and
the Indenture Trustee shall also require with a copy to the Insurer, as a
condition to such action, an Opinion of Counsel, in form and substance
satisfactory to the Indenture Trustee, stating the legal effect of any such
action, outlining the steps required to complete the same, and concluding that
all conditions precedent to the taking of such action have been complied with
and such action will not materially and adversely impair the security for the
Notes or the rights of the Noteholders or the Insurer 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 market value of a
Trust Estate. 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.

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                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

         SECTION 9.1 Supplemental Indentures Without Consent of Noteholders.

         (a) Without the consent of the Holders of any Notes but with prior
notice to the Rating Agencies, the Issuer and the Indenture Trustee, when
authorized by an Issuer Order, at any time and from time to time and only with
the prior written consent of the Insurer, 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 Noteholders or the Insurer, or to surrender any right or power
         herein conferred upon the Issuer;

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

              (v) to cure any ambiguity, to correct or supplement any provision
         herein or in any supplemental indenture that may be inconsistent with
         any other provision herein or in any supplemental indenture or to make
         any other provisions with respect to matters or questions arising under
         this Indenture or in any supplemental indenture; provided, that such
         action shall not adversely affect the interests of the Noteholders or
         the Insurer;

              (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
         herein; 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.

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<PAGE>

         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, when authorized by an Issuer
Order, may, also without the consent of any of the Noteholders but with prior
consent of the Rating Agencies and the Insurer, 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 Noteholders under this
Indenture; provided, however, that such action shall not, as evidenced by an
Opinion of Counsel or satisfaction of the Rating Agency Condition, adversely
affect in any material respect the interests of any Noteholder or the Insurer or
cause the Issuer to be subject to entity level tax.

         SECTION 9.2 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 and the Insurer, and with the consent
of the Holders of not less than a majority of the Outstanding Amount of the
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:

         (a) change the date of payment of any installment of principal of or
interest on any Note, or reduce the principal amount thereof, the interest rate
thereon or the amount required to be paid on the Notes following the exercise of
the option set forth in Section 8.01 of the Sale and Servicing Agreement, change
the provisions of this Indenture relating to the application of collections on,
or the proceeds of the sale of, the Trust Estate 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
herein, 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 Amount of the 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";

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         (d) reduce the percentage of the Outstanding Amount of the Notes
required to direct the Indenture Trustee to direct the Issuer to sell or
liquidate the Trust Estate pursuant to Section 5.4 herein;

         (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 Transaction 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

         (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 Trust Estate or,
except as otherwise permitted or contemplated herein, terminate the lien of this
Indenture on any property at any time subject hereto or deprive the Holder of
any Note of the security provided by the lien of this Indenture provided
further, that such action shall not, as evidenced by an Opinion of Counsel,
cause the Issuer to be subject to an entity level tax.

         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 9.2, 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 substance of such supplemental indenture at the
Issuer's expense. It shall not be necessary for any Act of Noteholders under
this Section 9.2 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance
thereof.

         SECTION 9.3 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 6.1 and 6.2 herein, 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 and all conditions
precedent to the execution of such supplemental indenture have been met. 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 9.4 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be deemed to be

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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 9.5 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 9.6 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.

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                                   ARTICLE X

                               REDEMPTION OF NOTES

         SECTION 10.1 Redemption.

         The Master Servicer may effect an early termination of the Notes
pursuant to Section 8.01 of the Sale and Servicing Agreement on or after any
Payment Date on which the Pool Balance declines to [__%] or less of the
aggregate Cut-Off Date Pool Balance and the purchase price for the Home Equity
Loans together with all amounts due and owing to the Insurer for unpaid premiums
and unreimbursed Insured Payments and any other amounts then due and owing under
the Insurance and Reimbursement Agreement to the Insurer, together with interest
thereon as provided under the Insurance and Reimbursement Agreement, have been
paid, pursuant to the provisions of Section 8.01(b) of the Sale and Servicing
Agreement.

         The Indenture Trustee shall furnish notice of any such redemption in
accordance with Section 8.01 of the Sale and Servicing Agreement.

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                                   ARTICLE XI

                                  MISCELLANEOUS

         SECTION 11.1 Compliance Certificates and Opinions, etc.

         (a) Upon any application or request by the Issuer made to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall furnish to the Indenture Trustee and to the 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 11.1, 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.

         (b) (i) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture
(except in the case of the release of Home Equity Loans in accordance with the
Sale and Servicing Agreement), the Issuer shall, in addition to any obligation
imposed in Section 11.1(a) herein or elsewhere in this Indenture, furnish to the
Indenture Trustee an Officer's Certificate certifying or stating the opinion of
each person signing such certificate as to the fair value (within 90 days of
such deposit) to the Issuer of the Collateral or other property or securities to
be so deposited.

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         (ii) Whenever the Issuer is required to furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (i) above, the Issuer shall also
deliver to the Indenture Trustee an Independent Certificate as to the same
matters, if the fair value to the Issuer of the Collateral, other property or
securities to be so deposited and of all other such Collateral, other property
or securities made the basis of any such withdrawal or release since the
commencement of the then-current fiscal year of the Issuer, as set forth in the
certificates delivered pursuant to clause (i) above and this clause (ii), is 10%
or more of the aggregate Class A Note Principal 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 either (A) $25,000 or (B) one percent of the aggregate
Class A Note Principal Amount of the Notes.

         (iii) Whenever any property or securities are to be released from the
lien of this Indenture, the Issuer shall also furnish to the Indenture Trustee
an Officer's Certificate certifying or stating the opinion of each person
signing such certificate as to the fair value (within 90 days 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.

         (iv) Whenever the Issuer is required to furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (iii) above, the Issuer shall also
furnish to the Indenture Trustee an Independent Certificate as to the same
matters if the fair value of the property or securities and of all other
property or securities released from the lien of this Indenture since the
commencement of the then-current calendar year, as set forth in the certificates
required by clause (iii) above and this clause (iv), equals 10% or more of the
aggregate Class A Note Principal 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 aggregate Class A Note
Principal Amount of the Notes.

         SECTION 11.2 Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

         Any certificate or opinion of an Authorized Officer of the Issuer may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which 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 Master Servicer, the Transferor or the Issuer,

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stating that the information with respect to such factual matters is in the
possession of the Master Servicer, the Transferor or the Issuer, unless such
counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.

         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 11.3 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 6.1 hereof) conclusive
in favor of the Indenture Trustee and the Issuer, if made in the manner provided
in this Section 11.3.

         (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.

         (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.

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<PAGE>

         SECTION 11.4 Notices. 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:

         (a) the Indenture Trustee by any Noteholder or by the Issuer shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Indenture Trustee at its Corporate Trust Office, or

         (b) the Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if in writing and mailed first-class,
postage prepaid to the Issuer addressed to: Household Home Equity Loan Trust
200_-_, in care of [ ], Attention: Corporate Trust Administration, with copies
to the Administrator addressed to: [ ], Attention: Indenture Trust
Administration and to the Master Servicer addressed to: [ ], 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.

         (c) the Insurer, by the Issuer, the Indenture Trustee or by any
Noteholders shall be sufficient for every purpose hereunder to in writing and
mailed, first-class postage pre-paid, or personally delivered or telecopied to:
[ ], Attention: [ ]. The Insurer shall promptly transmit any notice received by
it from the Issuer, the Indenture Trustee or the Noteholders to the Issuer or
Indenture Trustee, as the case may be.

         Notices required to be given to the Rating Agencies by the Indenture
Trustee or the Owner Trustee shall be in writing, personally delivered or mailed
by certified mail, return receipt requested, to (i) in the case of [ ], at the
following address: [ ] and (ii) in the case of [ ], at the following address: [
]; or as to each of the foregoing, at such other address as shall be designated
by written notice to the other parties.

         SECTION 11.5 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 been duly 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.

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               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.

         SECTION 11.6 Rights of the Insurer to Exercise Rights of Noteholders.

         By accepting its Note, each Noteholder agrees that unless an Insurer
Default exists, the Insurer shall have the right to exercise all rights of the
Noteholders as specified under this Agreement without any further consent of the
Noteholders. Any right conferred to the Insurer hereunder shall be suspended and
shall run to the benefit of the Noteholders during any period in which there
exists an Insurer Default, provided, however, that during an Insurer Default,
the consent of the Insurer must be obtained with respect to any amendments that
may materially adversely affect the Insurer.

         SECTION 11.7 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 11.8 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 11.9 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 11.10 Separability. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         SECTION 11.11 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, and the Noteholders, the Insurer, and any
other party secured hereunder, and any

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other Person with an ownership interest in any part of the Trust Estate, any
benefit or any legal or equitable right, remedy or claim under this Indenture.

         SECTION 11.12 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 11.13 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 11.14 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 11.15 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

         SECTION 11.16 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 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 have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement.

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<PAGE>

         SECTION 11.17 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 (and any
wholly-owned subsidiary thereof), the Depositor, the Master Servicer or the
Issuer, or join in any institution against the Transferor (and any wholly-owned
subsidiary thereof), the Depositor, 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 Transaction Documents.

         SECTION 11.18 Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee or the
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 be reasonably
requested. The Indenture Trustee and the Insurer (to the extent described in the
Insurance and Reimbursement Agreement) 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 11.19 Inconsistencies With the Sale and Servicing Agreement. In
the event certain provisions of this Agreement conflict with the provisions of
the Sale and Servicing Agreement, the parties hereto agree that the provisions
of the Sale and Servicing Agreement shall be controlling.

         SECTION 11.20 Third-Party Beneficiaries. This Indenture will inure to
the benefit of and be binding upon the parties hereto, the Noteholders, the Note
Owners, the Insurer and their respective successors and permitted assigns.
Except as otherwise provided in this Indenture, no other person will have any
right or obligation hereunder.

                                       66
<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.

                                         HOUSEHOLD HOME EQUITY LOAN TRUST 200_-_
                                         By: [                                ],
                                             not in its individual capacity but
                                             solely as Owner Trustee

                                             By:
                                                --------------------------------
                                             Name:
                                             Title:

                                         [                                ],
                                         as Indenture Trustee

                                         By:
                                            ------------------------------------
                                         Name:
                                         Title:

<PAGE>

STATE OF

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 HOUSEHOLD
HOME EQUITY LOAN 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 [ ].

                                 -----------------------------------------------
                                 Notary Public in and for the State of _________

(Seal)

My commission expires:

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

<PAGE>

STATE OF

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 [ ], [a state]
banking corporation, and that such person executed the same as the act of said
corporation for the purpose and consideration therein stated.

         GIVEN UNDER MY HAND AND SEAL OF OFFICE, this     day of [ ].
                                                      ---

                                 -----------------------------------------------
                                 Notary Public in and for the State of _________

(Seal)

My commission expires:

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

<PAGE>

                                   SCHEDULE A

                             MORTGAGE LOAN SCHEDULE

<PAGE>

                                    EXHIBIT A

                              FORM OF CLASS A NOTES

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE 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.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS 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.

No.                                            CUSIP NO.

Aggregate Class Note Principal Amount:         Denomination of this Class A
                                               Note:
$                                              $

                    HOUSEHOLD HOME EQUITY LOAN TRUST ______-_

        [ ] HOME EQUITY LOAN ASSET-BACKED NOTES, SERIES _____-_, CLASS A

         HOUSEHOLD HOME EQUITY LOAN TRUST ____-_, a business trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Trust"), 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 Class A Note and the
denominator of which is the aggregate principal amount of all Class A Notes by
(ii) the aggregate amount, if any, payable from the Distribution Account in
respect of principal on the Class A Note pursuant to Section 5.01 of the Sale
and Servicing Agreement dated as of [ ] (the "Sale and Servicing Agreement"),
among the Trust, HFC Revolving Corporation, as Depositor (the "Depositor"),
Household Finance Corporation, as Master Servicer ("HFC"), and [ ], a banking
corporation organized under the laws of the State of [ ], as Indenture Trustee
(the "Indenture Trustee"); provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the earliest to occur of (i) the
Payment Date occurring in [ ] (the "Final Maturity Date"), (ii) any termination
date pursuant to Section 8.01 of the Sale and Servicing Agreement or (iii) the
date on which an Event of Default under the Indenture dated as of [ ], between
the Trust and the Indenture

                                      A-1
<PAGE>

Trustee shall have occurred and be continuing, if the Indenture Trustee or the
Holders of Notes representing not less than a [ ] of the Outstanding Amount of
the Notes have declared the Notes to be immediately due and payable in the
manner provided in Section 5.2 of the Indenture. Capitalized terms used but not
defined herein are defined in Article I of the Indenture, which also contains
rules as to construction that shall be applicable herein.

         The Trust will pay interest on this Note at the rate per annum
described in the Sale and Servicing Agreement with respect to the Class A Note
on the principal amount of this Note outstanding on the preceding Payment Date
(after giving effect to all payments of principal made on the preceding Payment
Date) on each Payment Date until the principal of this Note is paid or made
available for payment in full. Interest on this Note will accrue for each
Payment Date during the [period from the preceding Payment Date to the day
preceding such Payment Date (or, in the case of the first Payment Date, the
period from the Closing Date to the day preceding the First Payment Date)]
(each, an "Interest Period"). Interest will be computed on the basis of the
[actual number of] days in each Interest Period and a [360-]day year. 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 Trust
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 benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                                      A-2
<PAGE>

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

Date:  [            ]

                                       HOUSEHOLD HOME EQUITY LOAN TRUST ______-_

                                         By: [                                ],
                                             not in its individual capacity but
                                             solely as Owner Trustee under the
                                             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:  [            ]

                                         [                                    ],
                                         not in its individual capacity but
                                         solely as Indenture Trustee,

                                         By: ___________________________________
                                                   Authorized Signatory

                                      A-3
<PAGE>

                                (REVERSE OF NOTE)

         This Note is one of a duly authorized issue of Notes of the Trust,
designated as its [ ] Home Equity Loan Asset-Backed Notes, Class A, all 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 Trust, the Indenture Trustee and the Holders of
the Notes. The Class A Notes are subject to all terms of the Indenture.

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

         Principal of the Class A Notes will be payable on each Payment Date in
an amount described on the face hereof. "Payment Date" means the [25]th day of
each month, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing in [ ].

         As described above, the entire unpaid principal amount of this Note
shall be due and payable on the earlier of the Final Maturity Date and any
termination date pursuant to Section 8.01 of the Sale and Servicing Agreement.
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 under the
Indenture shall have occurred and be continuing and the Indenture Trustee, at
the direction or upon the prior written consent of the Holders of the Notes
representing not less than [66-2/3]% of the Outstanding Amount of the Notes,
shall have declared the Notes to be immediately due and payable in the manner
provided in Section 5.2 of the Indenture. All principal payments on the Class A
Notes shall be made pro rata to the Holders of the Class A Notes entitled
thereto.

         Payments of interest on this Note due and payable on each Payment Date,
together with the related installment of principal, if any, to the extent not in
full payment of this Note, shall be made by wire transfer of immediately
available funds to, or 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 Trust, 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 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 New York, New York.

                                      A-4
<PAGE>

         As provided in the Sale and Servicing Agreement, the Class A Notes may
be redeemed in whole, but not in part, at the option of the Master Servicer, on
any Payment Date on and after the date on which the Pool Balance is less than or
equal to [ ]% of the Cut-Off Date Pool 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 Trust 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 for any registration of
transfer or exchange of this Note, but the Trust may require payment of 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 Trust, 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 Trust 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 Trust, the Owner Trustee or the Indenture
Trustee or of any successor or assign of the Indenture Trustee or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed 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 Depositor or the Trust, or join in any
institution against the Depositor or the Trust 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 Transaction Documents.

         The Trust 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 Trust
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

                                      A-5
<PAGE>

the Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Trust.

         Prior to the due presentment for registration of transfer of this Note,
the Trust, the Indenture Trustee and any agent of the Trust 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 Trust, 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
Trust and the rights of the Holders of the Notes under the Indenture at any time
by the Trust with the consent of the Holders of Notes representing a majority of
the Outstanding Amount of all Notes at the time Outstanding. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Notes, on behalf of the Holders of
all the Notes, to waive compliance by the Trust 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 to amend or waive certain terms and conditions set forth in
the Indenture without the consent of Holders of the Notes issued thereunder.

         The term "Trust" as used in this Note includes any successor to the
Trust 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 Trust, 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 Transaction Documents, none of the Trust in its individual
capacity, the Owner Trustee in its individual capacity, any owner of a
beneficial interest in the Trust, 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

                                      A-6
<PAGE>

or indemnifications contained in the Indenture. The Holder of this Note by its
acceptance hereof agrees that, except as expressly provided in the Transaction
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 Trust for any
and all liabilities, obligations and undertakings contained in the Indenture or
in this Note.

                                      A-7
<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-8

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