Document:

EXHIBIT 4.3

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                             [___________________]
                                    Issuer

                                      and

                             [___________________]
                               Indenture Trustee

                                   INDENTURE

                          Dated as of [_____], 20[__]

                  __________________________________________

                                  [_________]

                  __________________________________________

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

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                               TABLE OF CONTENTS

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                                  ARTICLE I.
                                  Definitions

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

                                  ARTICLE II.
                          Original Issuance of Notes

Section 2.01.   Form.........................................................3
Section 2.02.   Execution, Authentication and Delivery.......................3

                                 ARTICLE III.
                                   Covenants

Section 3.01.   Collection of Payments with respect to the Home
                Equity Loans.................................................4
Section 3.02.   Maintenance of Office or Agency..............................4
Section 3.03.   Money for Payments to Be Held in Trust; Paying Agent.........4
Section 3.04.   Existence....................................................5
Section 3.05.   Payment of Principal and Interest; Defaulted
                Interest.....................................................6
Section 3.06.   Protection of Trust Estate...................................8
Section 3.07.   Opinions as to Trust Estate..................................9
Section 3.08.   Performance of Obligations; Servicing Agreement..............9
Section 3.09.   Negative Covenants..........................................10
Section 3.10.   Annual Statement as to Compliance...........................10
Section 3.11.   Recording of Assignments....................................11
Section 3.12.   Representations and Warranties Concerning the Home
                Equity Loans................................................11
Section 3.13.   Assignee of Record of the Home Equity Loans.................12
Section 3.14.   Servicer as Agent and Bailee of the Indenture Trustee.......12
Section 3.15.   Investment Company Act......................................12
Section 3.16.   Issuer May Consolidate, etc.................................13
Section 3.17.   Successor or Transferee.....................................14
Section 3.18.   No Other Business...........................................15
Section 3.19.   No Borrowing................................................15
Section 3.20.   Guarantees, Loans, Advances and Other Liabilities...........15
Section 3.21.   Capital Expenditures........................................15
Section 3.22.   Owner Trustee Not Liable for Certificates or Related
                Documents...................................................15
Section 3.23.   Restricted Payments.........................................15
Section 3.24.   Notice of Events of Default.................................16
Section 3.25.   Further Instruments and Acts................................16
Section 3.26.   Statements to Noteholders...................................16
Section 3.27.   Determination of Note Rate..................................16
Section 3.28.   Claims under the Credit Enhancement Instrument..............16
Section 3.29.   [Reserved.].................................................17
Section 3.30.   Rights in Respect of Insolvency Proceedings.................17

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Section 3.31.   Effect of Payments by the Credit Enhancer:
                Subrogation.................................................18
Section 3.32.   Protection of Trust Estate..................................19
Section 3.33.   Preference Claims...........................................19

                                  ARTICLE IV.
              The Notes; Satisfaction and Discharge of Indenture

Section 4.01.   The Notes...................................................21
Section 4.02.   Registration of and Limitations on Transfer and
                Exchange of Notes; Appointment of Certificate
                Registrar...................................................21
Section 4.03.   Mutilated, Destroyed, Lost or Stolen Notes..................23
Section 4.04.   Persons Deemed Owners.......................................23
Section 4.05.   Cancellation................................................24
Section 4.06.   Book-Entry Notes............................................24
Section 4.07.   Notices to Depository.......................................25
Section 4.08.   Definitive Notes............................................25
Section 4.09.   Tax Treatment...............................................25
Section 4.10.   Satisfaction and Discharge of Indenture.....................25
Section 4.11.   Application of Trust Money..................................26
Section 4.12.   Reserved....................................................27
Section 4.13.   Repayment of Monies Held by Paying Agent....................27
Section 4.14.   Temporary Notes.............................................27

                                  ARTICLE V.
                             Default and Remedies

Section 5.01.   Events of Default...........................................27
Section 5.02.   Acceleration of Maturity; Rescission and Annulment..........27
Section 5.03.   Collection of Indebtedness and Suits for Enforcement
                by Indenture Trustee........................................28
Section 5.04.   Remedies; Priorities........................................30
Section 5.05.   Optional Preservation of the Trust Estate...................32
Section 5.06.   Limitation of Suits.........................................32
Section 5.07.   Unconditional Rights of Noteholders to Receive
                Principal and Interest......................................33
Section 5.08.   Restoration of Rights and Remedies..........................33
Section 5.09.   Rights and Remedies Cumulative..............................33
Section 5.10.   Delay or Omission Not a Waiver..............................33
Section 5.11.   Control by Credit Enhancer or Noteholders...................33
Section 5.12.   Waiver of Past Defaults.....................................34
Section 5.13.   Undertaking for Costs.......................................34
Section 5.14.   Waiver of Stay or Extension Laws............................35
Section 5.15.   Sale of Trust Estate........................................35
Section 5.16.   Action on Notes.............................................37

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Section 5.17.   Performance and Enforcement of Certain Obligations..........37

                                  ARTICLE VI.
                             The Indenture Trustee

Section 6.01.   Duties of Indenture Trustee.................................38
Section 6.02.   Rights of Indenture Trustee.................................39
Section 6.03.   Individual Rights of Indenture Trustee......................39
Section 6.04.   Indenture Trustee's Disclaimer..............................40
Section 6.05.   Notice of Event of Default..................................40
Section 6.06.   Reports by Indenture Trustee to Holders.....................40
Section 6.07.   Tax.........................................................40
Section 6.08.   Compensation and Indemnity..................................40
Section 6.09.   Replacement of Indenture Trustee............................41
Section 6.10.   Successor Indenture Trustee by Merger.......................42
Section 6.11.   Appointment of Co-Indenture Trustee or Separate
                Indenture Trustee...........................................42
Section 6.12.   Eligibility; Disqualification...............................43
Section 6.13.   Preferential Collection of Claims Against Issuer............44
Section 6.14.   Representations and Warranties..............................44
Section 6.15.   Directions to Indenture Trustee.............................45
Section 6.16.   Indenture Trustee May Own Securities........................45
Section 6.17.   Other Capacities of Indenture Trustee.......................45

                                 ARTICLE VII.
                        Noteholders' Lists and Reports

Section 7.01.   Issuer to Furnish Indenture Trustee Names and
                Addresses of Noteholders....................................45
Section 7.02.   Preservation of Information; Communications to
                Noteholders.................................................45
Section 7.03.   Reserved....................................................46
Section 7.04.   Reports by Issuer...........................................46
Section 7.05.   Reports by Indenture Trustee................................46

                                 ARTICLE VIII.
                     Accounts, Disbursements and Releases

Section 8.01.   Collection of Money.........................................46
Section 8.02.   Trust Accounts..............................................47
Section 8.03.   Officer's Certificate.......................................47
Section 8.04.   Mandatory Auction; Termination Upon Distribution to
                Noteholders.................................................47
Section 8.05.   Release of Trust Estate.....................................48
Section 8.06.   Surrender of Notes Upon Final Payment.......................49

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                                  ARTICLE IX.
                            Supplemental Indentures

Section 9.01.   Supplemental Indentures Without Consent of
                Noteholders.................................................49
Section 9.02.   Supplemental Indentures With Consent of Noteholders.........50
Section 9.03.   Execution of Supplemental Indentures........................52
Section 9.04.   Effect of Supplemental Indenture............................52
Section 9.05.   Conformity with Trust Indenture Act.........................52
Section 9.06.   Reference in Notes to Supplemental Indentures...............52

                                  ARTICLE X.
                                 Miscellaneous

Section 10.01.  Compliance Certificates and Opinions, etc...................53
Section 10.02.  Form of Documents Delivered to Indenture Trustee............53
Section 10.03.  Acts of Noteholders.........................................54
Section 10.04.  Notices, etc., to Indenture Trustee, Issuer, Credit
                Enhancer and Rating Agencies................................54
Section 10.05.  Notices to Noteholders; Waiver..............................55
Section 10.06.  Alternate Payment and Notice Provisions.....................56
Section 10.07.  Conflict with Trust Indenture Act...........................56
Section 10.08.  Effect of Headings..........................................56
Section 10.09.  Successors and Assigns......................................56
Section 10.10.  Separability................................................56
Section 10.11.  Benefits of Indenture.......................................56
Section 10.12.  Legal Holidays..............................................56
Section 10.13.  GOVERNING LAW...............................................57
Section 10.14.  Counterparts................................................57
Section 10.15.  Recording of Indenture......................................57
Section 10.16.  Issuer Obligation...........................................57
Section 10.17.  No Petition.................................................57
Section 10.18.  Inspection..................................................58
Section 10.19.  Rights of the Credit Enhancer to Exercise Rights of
                Noteholder..................................................58
Section 10.20.  Third-Party Beneficiary.....................................58

EXHIBITS

Exhibit A   -     Form of Notes

Exhibit B   -     Form of Servicer Certification

Exhibit C   -     Form of Certification to be Provided to Servicer by
Indenture Trustee

Appendix A  Definitions

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            This Indenture, dated as of [______], 20[__], between [_________],
a [state] statutory trust, as Issuer (the "Issuer"), and [____________], a
national banking association, as Indenture Trustee (the "Indenture Trustee"),

                               WITNESSETH THAT:

            Each party hereto agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Issuer's
Series [___________] (the "Notes").

                                GRANTING CLAUSE

            The Issuer hereby Grants to the Indenture Trustee at the Closing
Date, as trustee for the benefit of the Holders of the Notes, all of the
Issuer's right, title and interest in and to, whether now existing or
hereafter created (a) the [__________]; (b) all funds, cash, money and
investment property on deposit from time to time in, or credited from time to
time to, each of the Collection Account, the Certificate Distribution Account,
the Payment Account and all proceeds thereof; (c) all insurance policies,
including the right to payments thereunder, with respect to the [__________]
required to be maintained pursuant to the Servicing Agreement and to be
serviced by the Servicer; (d) all present and future claims, demands, causes
and chooses in action in respect of any or all of the foregoing and all
payments thereon or thereunder, and all proceeds of every kind and nature
whatsoever in respect of, any or all of the foregoing and all payments thereon
or thereunder, and all proceeds of every kind and nature whatsoever in the
conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, checks, deposit accounts, rights to payment of any and every
kind, and other forms of obligations and receivables, instruments, investment
property and other property which at any time constitute all or part of or are
included in the proceeds of any of the foregoing; [(e) all rights of the
Seller/Servicer under the Insurance Policy as described in Section 2.1(a) of
the [______] Purchase Agreement] and (f) all of the Depositor's right, title
and interest under the [______] Purchase Agreement (each of (a) - (f)
collectively, the "Trust Estate" or the "Collateral").

            The foregoing Grant is made in trust to secure the payment of
principal of and interest on, and any other amounts owing in respect of, the
Notes, 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 Credit
Enhancer in respect of draws made on the Credit Enhancement Instrument and
amounts owing from time to time pursuant to the Insurance and Indemnity
Agreement (regardless of whether such amounts relate to the Notes), and such
Grant shall continue in full force and effect for the benefit of the Credit
Enhancer until all such amounts owing to it have been repaid in full.

            The Indenture Trustee, as trustee on behalf of the Holders of the
Notes, acknowledges such Grant, accepts the trust under this Indenture in
accordance with the provisions hereof and agrees to perform its duties as
Indenture Trustee as required herein.

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                                  ARTICLE I.

                                  Definitions

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

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

            "Commission" means the Securities and Exchange Commission.

            "indenture securities" means the Notes.

            "indenture security holder" means a Noteholder.

            "indenture to be qualified" means this Indenture.

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

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

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

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

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

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

                  (iii) "or" is not exclusive;

                  (iv) "including" means including without limitation;

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

                  (vi) any agreement, instrument or statute defined or
      referred to herein or in any instrument or certificate delivered in
      connection herewith means such

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      agreement, instrument or statute as from time to time amended, modified
      or supplemented and includes (in the case of agreements or instruments)
      references to all attachments thereto and instruments incorporated
      therein; references to a Person are also to its permitted successors and
      assigns.

                                  ARTICLE II.

                          Original Issuance of Notes

      Section 2.01.  Form. The Notes, together with the Indenture Trustee's
certificate of authentication, 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 Authorized Officers executing such Notes, as evidenced by their execution
of the Notes. 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 Notes shall be typewritten, printed, lithographed or engraved
or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the Authorized Officers executing such
Notes, as evidenced by their execution of such Notes.

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

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

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

            The Indenture Trustee shall upon Issuer Request authenticate and
deliver Notes for original issue in an aggregate initial principal amount of
$[__].

            Each Note shall be dated the date of its authentication. The Notes
shall be issuable as registered Notes and shall be issuable in the minimum
initial Security Balances of $[__] and in integral multiples of $[_] in excess
thereof, except for one Note, evidencing the sum of an authorized denomination
thereof and the remainder of the aggregate Security Balance of the Notes.

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

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

                                 ARTICLE III.

                                   Covenants

      Section 3.01.  Collection of Payments with respect to the Home Equity
Loans. The Indenture Trustee shall establish and maintain with itself the
Payment Account in which the Indenture Trustee shall, subject to the terms of
this paragraph, deposit, on the same day as it is received from the Servicer,
each remittance received by the Indenture Trustee with respect to the
[__________]. The Indenture Trustee shall make all payments of principal of
and interest on the Notes, subject to Section 3.03 and as provided in Section
3.05 herein, from monies on deposit in the Payment Account.

      Section 3.02.  Maintenance of Office or Agency. The Issuer will maintain
in the City of New York, an office or agency where, subject to satisfaction of
conditions set forth herein, 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. 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 Indenture Trustee's Corporate
Trust Office, and the Issuer hereby appoints the Indenture Trustee as its
agent to receive all such surrenders, notices and demands at the Indenture
Trustee's Corporate Trust Office.

      Section 3.03.  Money for Payments to Be Held in Trust; Paying Agent. As
provided in Section 3.01, all payments of amounts due and payable with respect
to any Notes that are to be made from amounts withdrawn from the Payment
Account pursuant to Section 3.01 shall be made on behalf of the Issuer by the
Indenture Trustee or by the Paying Agent, and no amounts so withdrawn from the
Payment Account for payments of Notes shall be paid over to the Issuer except
as provided in this Section 3.03. The Issuer hereby appoints the Indenture
Trustee as the initial Paying Agent hereunder. The Indenture Trustee hereby
accepts such appointment.

            The Issuer will cause each Paying Agent other than the Indenture
Trustee 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 3.03, 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 Credit Enhancer
      written notice of any default by the Issuer of which it has actual
      knowledge in the making of any payment required to be made with respect
      to the Notes;

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                  (iii) at any time during the continuance of any such
      default, identified in clause (ii) above 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 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;

                  (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; and

                  (vi) deliver to the Indenture Trustee a copy of the report
      to Noteholders prepared with respect to each Payment Date by the
      Servicer pursuant to Section 4.01 of the Servicing Agreement.

            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 Request direct any Paying Agent to pay to the Indenture Trustee all
sums held in trust by such Paying Agent, such sums to be held by the Indenture
Trustee upon the same trusts as those upon which the sums were held by such
Paying Agent; and upon such payment by any Paying Agent to the Indenture
Trustee, such Paying Agent shall be released from all further liability with
respect to such money.

            Subject to applicable laws with respect to escheat of funds, any
money held by the Indenture Trustee or any Paying Agent in trust for the
payment of any amount due with respect to any Note and remaining unclaimed for
one year after such amount has become due and payable shall be discharged from
such trust and be paid to the Issuer on Issuer Request; and the Holder of such
Note shall thereafter, as an unsecured general creditor, look only to the
Issuer for payment thereof (but only to the extent of the amounts so paid to
the Issuer), and all liability of the Indenture Trustee or such Paying Agent
with respect to such trust money shall thereupon cease; provided, however,
that the Indenture Trustee or such Paying Agent, before being required to make
any such repayment, shall at the expense and direction of the Issuer cause to
be published once, in an Authorized Newspaper, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such publication, any unclaimed balance of such
money then remaining will be repaid to the Issuer. The Indenture Trustee may
also adopt and employ, at the expense and direction of the Issuer, any other
reasonable means of notification of such repayment (including, but not limited
to, mailing notice of such repayment to Holders whose Notes have been called
but have not been surrendered for redemption or whose right to or interest in
monies due and payable but not claimed is determinable from the records of the
Indenture Trustee or of any Paying Agent, at the last address of record for
each such Holder).

      Section 3.04.  Existence.  The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other state or of the

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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, the Home
Equity Loans and each other instrument or agreement included in the Trust
Estate.

      Section 3.05.  Payment of Principal and Interest; Defaulted Interest.

            (a) On each Payment Date from Investor P&I Collections on deposit
in the Payment Account, the Paying Agent shall pay to the Noteholders, the
Certificate Paying Agent, on behalf of the Certificateholders, and to other
Persons the amounts to which they are entitled, as set forth below in the
following order of priority:

                  (i) sequentially to (A) concurrently (I) the Indenture
      Trustee, payment or reimbursement of any amounts owing to it pursuant to
      this Indenture, including but not limited to Section 6.08, and pursuant
      to the Servicing Agreement, including but not limited to Section 7.02,
      [subject to a $[__] cap per annum for such Payment Date and no more than
      $[__] on any Payment Date and (II) the Owner Trustee, its fee for
      services rendered pursuant to the Trust Agreement, for such Payment
      Date, and (B) the Servicer, payment of any amounts owing to it pursuant
      to Section 6.03 of the Servicing Agreement, subject to a $[__] cap per
      annum];

                  (ii) [to the Credit Enhancer, the Premium for the Credit
      Enhancement Instrument (as set forth in the Premium Letter) and any such
      Premium remaining unpaid for any prior Payment Date (with interest
      thereon as provided in the Insurance and Indemnity Agreement) for such
      Payment Date];

                  (iii) to the Noteholders, interest accrued during the
      related Interest Period at the Note Rate on the Security Balance of the
      Notes immediately prior to such Payment Date, other than Interest
      Shortfalls;

                  (iv) to the Noteholders, principal equal to the Principal
      Collection Distribution Amount for such Payment Date less the Principal
      Reduction Amount for such Payment Date;

                  (v) to the Noteholders, an amount equal to (A) the Investor
      Liquidation Loss Amounts on such Payment Date, plus (B) any Investor
      Liquidation Loss Amounts remaining undistributed from any preceding
      Payment Date, provided that any Investor Liquidation Loss Amount shall
      not be required to be paid to the extent that such Investor Liquidation
      Loss Amount was paid on the Notes by means of a draw on the Credit
      Enhancement Instrument;

                  (vi) to the Credit Enhancer, reimbursement for prior draws
      made under the Credit Enhancement Instrument and any other amounts owed
      to the Credit Enhancer pursuant to the Basic Documents (with interest
      thereon as provided in the Insurance and Indemnity Agreement);

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                  (vii) to the Noteholders, an amount equal to the
      Overcollateralization Deficit for such Payment Date;

                  (viii) to the Noteholders, principal in the amount of the
      Accelerated Principal Payment Amount for such Payment Date;

                  (ix) to the Servicer, payment of any amounts owing to it
      pursuant to Section 6.03 of the Servicing Agreement, not subject to a
      per annum cap;

                  (x) to the Noteholders, an amount equal to Interest
      Shortfalls not previously paid (together with interest thereon at the
      Note Rate, to the extent permitted by law);

                  (xi) to the Indenture Trustee for any other amounts owing it
      pursuant to this Indenture, including but not limited to Section 6.08
      hereof, and the Servicing Agreement, including but not limited to
      Section 7.02 thereof, and remaining unpaid after the payment of amounts
      under Section 3.05(a)(i) above or to the Owner Trustee for any other
      expenses due it under the Trust Agreement; and

                  (xii) any remaining amount, including any Seller P&I
      Collections, to the Certificate Paying Agent, on behalf of the holders
      of the Certificates;

provided, however, that on the Scheduled Final Payment Date or other final
Payment Date, the amount to be paid pursuant to clause (iv) above shall be
equal to the Security Balance of the Notes immediately prior to such Payment
Date. For purposes of the foregoing, required payments of principal on the
Notes on each Payment Date will include the Investor Liquidation Loss Amounts
for such Payment Date and for all previous Collection Periods until paid or
covered in full, to the extent not otherwise covered by a Liquidation Loss
Distribution Amount, a reduction of the Overcollateralization Amount or a draw
on the Credit Enhancement Instrument (up to the outstanding Security Balance
thereof).

            On each Payment Date, the Certificate Paying Agent shall deposit
in the Certificate Distribution Account all amounts it received pursuant to
this Section 3.05 for the purpose of distributing such funds to the
Certificateholders.

            The amounts paid to Noteholders shall be paid in accordance with
the applicable percentage as set forth in paragraph (b) below. Interest will
accrue on the Notes during an Interest Period on the basis of the actual
number of days in such Interest Period and a year assumed to consist of 360
days.

            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 each Holder of record on the
preceding Record Date, by wire transfer to an account specified in writing by
such Holder reasonably satisfactory to the Indenture Trustee as of the
preceding Record Date or in all other cases or if no such instructions have
been delivered to the Indenture Trustee, by check to such Noteholder mailed to
such Holder's address as it appears in the Note Register in the amount
required to be distributed to such Holder on such Payment Date pursuant

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to such Holder's Securities; provided, however, that the Indenture Trustee
shall not pay to such Holders any amount required to be withheld from a
payment to such Holder by the Code.

            (b) The principal of each Note shall be due and payable in full on
the Scheduled Final Payment Date for such Note as provided in the related form
of Note set forth in Exhibit A. All principal payments of each of the Notes
shall be made to the Noteholders entitled thereto in accordance with the
Percentage Interests represented by such Notes. Upon written notice to the
Indenture Trustee by the Issuer, 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 Scheduled Final Payment Date or other final Payment Date. Such
notice shall be mailed no later than five Business Days prior to such
Scheduled Final Payment Date or other final Payment Date and shall specify
that payment of the principal amount and any interest due with respect to such
Note at the Scheduled Final Payment Date or other final Payment Date will be
payable only upon presentation and surrender of such Note and shall specify
the place where such Note may be presented and surrendered for such final
payment.

      Section 3.06.  Protection of Trust Estate.

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

                  (ii) perfect, publish notice of or protect the validity of
      any Grant made or to be made by this Indenture including but not limited
      to the filing of one or more UCC-1 financing statements describing as
      collateral all assets and other property of the Issuer and naming the
      Issuer as debtor and the Indenture Trustee as secured party;

                  (iii) cause the Trust to enforce any of the Home Equity
      Loans; or

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

            (b) Except as otherwise provided in this Indenture, the Indenture
Trustee shall not remove any portion of the Trust Estate that consists of
money or is evidenced by an instrument, certificate or other writing from the
jurisdiction in which it was held at the date of the most recent Opinion of
Counsel delivered pursuant to Section 3.07 (or from the jurisdiction in which
it was held as described in the Opinion of Counsel delivered at the Closing
Date pursuant to Section 3.07(a), if no Opinion of Counsel has yet been
delivered pursuant to Section 3.07(b)) unless the Indenture Trustee shall have
first received an Opinion of Counsel to the effect that the Lien and security
interest created by this Indenture with respect to such property will continue
to be maintained after giving effect to such action or actions.

                                       8
<PAGE>

            The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute (if required) and cause the Servicer to file any
financing statement, continuation statement or other instrument required to be
executed pursuant to this Section 3.06.

      Section 3.07.  Opinions as to Trust Estate.

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

            (b) On or before [__] in each calendar year, beginning in 20[__],
the Issuer shall furnish to the Indenture Trustee and the Credit Enhancer an
Opinion of Counsel at the expense of the Issuer either stating that, in the
opinion of such counsel, such action has been taken with respect to the
recording, filing, re-recording and refiling of this Indenture, any indentures
supplemental hereto and any other requisite documents and with respect to the
execution (if required) and filing of any financing statements and
continuation statements as is necessary to maintain the lien and security
interest in the Trust Estate and reciting the details of such action or
stating that in the opinion of such counsel no such action is necessary to
maintain such lien and security interest. Such Opinion of Counsel shall also
describe the recording, filing, re-recording and refiling of this Indenture,
any indentures supplemental hereto and any other requisite documents and the
execution (if required) and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest in the Trust Estate until [__] in
the following calendar year.

      Section 3.08.  Performance of Obligations; Servicing Agreement.

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

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

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

                                       9
<PAGE>

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

      Section 3.09.  Negative Covenants. So long as any Notes are Outstanding,
the Issuer shall not:

                  (i) except as expressly permitted by this Indenture, sell,
      transfer, exchange or otherwise dispose of the Trust Estate, unless
      directed to do so by the Indenture Trustee or the Credit Enhancer
      pursuant to Section 5.04 or 8.05 hereof or as may be permitted or
      required pursuant to the Servicing Agreement or the Home Equity Loan
      Purchase Agreement;

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

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

                  (iv) impair or cause to be impaired the Issuer's interest in
      the Home Equity Loans, the Home Equity Loan Purchase Agreement or in any
      Basic Document, if any such action would materially and adversely affect
      the interests of the Noteholders or the Credit Enhancer.

      Section 3.10.  Annual Statement as to Compliance. The Issuer will
deliver to the Indenture Trustee and the Credit Enhancer, within [__] days
after the end of each fiscal year (which currently ends on December 31) of the
Issuer (commencing with the fiscal year 20[__]), an Officer's Certificate
stating, as to the Authorized Officer signing such Officer's Certificate,
that:

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

                  (ii) to the best of such Authorized Officer's knowledge,
      based on such review, the Issuer has complied with all conditions and
      covenants under this Indenture and the provisions of the Trust Agreement
      throughout such year, or, if there has been a

                                      10
<PAGE>

      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 3.11.  Recording of Assignments. The Issuer shall enforce the
obligation of the Seller under the Home Equity Loan Purchase Agreement to
submit or cause to be submitted for recording all Assignments of Mortgages to
the extent required by the Home Equity Loan Purchase Agreement.

      Section 3.12.  Representations and Warranties Concerning the Home Equity
Loans.

            (a) The Indenture Trustee, as pledgee of the Home Equity Loans,
has the benefit of the representations and warranties made by the Seller in
Section 3.1(a) and Section 3.1(b) of the Home Equity Loan Purchase Agreement
concerning the Home Equity Loans and the right to enforce the remedies against
the Seller provided in such Section 3.1(a) or Section 3.1(b) to the same
extent as though such representations and warranties were made directly to the
Indenture Trustee.

            (b) The Issuer hereby makes the following representations and
warranties as of the Closing Date with respect to the Home Equity Loans:

                  (i) The Issuer represents and warrants that the Indenture
      creates a valid and continuing security interest (as defined in the UCC)
      in the Home Equity Loans in favor of the Noteholders, 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 Issuer represents and warrants that the Home Equity
      Loans constitute "instruments" within the meaning of the UCC.

                  (iii) The Issuer represents and warrants that the Issuer
      owns and has good and marketable title to the Home Equity Loans free and
      clear of any Lien, claim or encumbrance of any Person.

                  (iv) The Issuer represents and warrants that the Issuer has
      caused or will have caused, on or prior to the Closing Date the filing
      of all appropriate financing statements in the proper filing office in
      the appropriate jurisdictions under applicable law in order to perfect
      the security interest in the Home Equity Loans granted to the
      Noteholders hereunder.

                  (v) The Issuer represents and warrants that other than the
      security interest granted to the Noteholders pursuant to this Agreement,
      the Issuer has not pledged, assigned, sold, granted a security interest
      in, or otherwise conveyed any of the Home Equity Loans. 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 Home Equity Loans other than any financing statement
      relating to the security interest granted to the Noteholders hereunder
      or that has been terminated. The Issuer is not aware of any judgment or
      tax lien filings against the Issuer.

                                      11
<PAGE>

                  (vi) The Issuer represents and warrants that the Issuer has
      in its possession all original copies of the security certificates that
      constitute or evidence the Home Equity Loans. The security certificates
      that constitute or evidence the Home Equity Loans do not have any marks
      or notations indicating that they have been pledged, assigned or
      otherwise conveyed to any Person other than the Noteholders. All
      financing statements filed or to be filed against the Issuer in favor of
      the Noteholders in connection herewith describing the Home Equity Loans
      contain a statement to the following effect: "A purchase of or security
      interest in any collateral described in this financing statement will
      violate the rights of the Noteholders."

      Section 3.13.  Assignee of Record of the Home Equity Loans. As pledgee
of the Home Equity Loans, the Indenture Trustee may, upon the occurrence of
certain events, hold record title to the Home Equity Loans by being named as
payee in the endorsements of the Mortgage Notes and assignee in the
Assignments of Mortgage as provided under Section 2.1 of the Home Equity Loan
Purchase Agreement. Except as expressly provided in the Home Equity Loan
Purchase Agreement or in the Servicing Agreement with respect to any specific
Home Equity Loan, the Indenture Trustee shall not execute any endorsement or
assignment or otherwise release or transfer such record title to any of the
Home Equity Loans until such time as the remaining Trust Estate may be
released pursuant to Section 8.05(b).

      Section 3.14.  Servicer as Agent and Bailee of the Indenture Trustee.
Solely for purposes of perfection under Section 9-305 of the UCC or other
similar applicable law, rule or regulation of the state in which such property
is held by the Servicer, the Issuer and the Indenture Trustee hereby
acknowledge that the Servicer is acting as agent and bailee of the Indenture
Trustee in holding amounts on deposit in the Collection Account pursuant to
Section 3.02 of the Servicing Agreement that are allocable to the Home Equity
Loans, as well as the agent and bailee of the Indenture Trustee in holding any
Related Documents released to the Servicer pursuant to Section 3.06(b) of the
Servicing Agreement, and any other items constituting a part of the Trust
Estate which from time to time come into the possession of the Servicer. It is
intended that, by the Servicer's acceptance of such agency pursuant to Section
3.02 of the Servicing Agreement, the Indenture Trustee, as a pledgee of the
Home Equity Loans, will be deemed to have possession of such Related
Documents, such monies and such other items for purposes of Section 9-305 of
the UCC of the state in which such property is held by the Servicer.

      Section 3.15.  Investment Company Act. The Issuer shall not become an
"investment company" or come under the "control" of an "investment company" as
such terms are defined in the Investment Company Act of 1940, as amended (or
any successor or amendatory statute), and the rules and regulations thereunder
(taking into account not only the general definition of the term "investment
company" but also any available exceptions to such general definition);
provided, however, that the Issuer shall be in compliance with this Section
3.15 if it shall have obtained an order exempting it from regulation as an
"investment company" so long as it is in compliance with the conditions
imposed in such order.

                                      12
<PAGE>

      Section 3.16.  Issuer May Consolidate, etc.

            (a) The Issuer shall not consolidate or merge with or into any
other Person, unless the Credit Enhancer consents thereto and:

                  (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
      thereof 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 and
      the Credit Enhancer, the due and punctual payment of the principal of
      and interest on all Notes and to the Certificate Paying Agent, on behalf
      of the Certificateholders and the performance or observance of every
      agreement and covenant of this Indenture on the part of the Issuer to be
      performed or observed, all as provided herein;

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

                  (iii) the Issuer receives prior written consent of the
      Credit Enhancer and the Rating Agencies shall have notified the Issuer
      that such transaction shall not cause the rating of the Notes or the
      Certificates to be reduced, suspended or withdrawn or to be considered
      by either Rating Agency to be below investment grade without taking into
      account the Credit Enhancement Instrument;

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

                  (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 Credit Enhancer 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) Except as otherwise provided in the Servicing Agreement or the
Home Equity Loan Purchase Agreement, the Issuer shall not convey or transfer
any of its properties or assets, including those included in the Trust Estate,
to any Person, unless the Credit Enhancer consents to such conveyance or
transfer and:

                  (i) the Person that acquires by conveyance or transfer the
      properties and assets of the Issuer the conveyance or transfer of which
      is hereby restricted shall (A) be a United States citizen or a Person
      organized and existing under the laws of the United States of America or
      any state thereof, or the District of Columbia, (B) expressly assume, by
      an indenture supplemental hereto, executed and delivered to the
      Indenture

                                      13
<PAGE>

      Trustee, in form satisfactory to the Indenture Trustee and the Credit
      Enhancer, the due and punctual payment of the principal of and interest
      on all Notes and the performance or observance of every agreement and
      covenant of this Indenture on the part of the Issuer to be performed or
      observed, all as provided herein, (C) expressly agree by means of such
      supplemental indenture that all right, title and interest so conveyed or
      transferred shall be subject and subordinate to the rights of Holders of
      the Notes, (D) unless otherwise provided in such supplemental indenture,
      expressly agree to indemnify, defend and hold harmless the Issuer
      against and from any loss, liability or expense arising under or related
      to this Indenture and the Notes and (E) expressly agree by means of such
      supplemental indenture that such Person (or if a group of Persons, then
      one specified Person) shall make all filings with the Commission (and
      any other appropriate Person) required by the Exchange Act in connection
      with the Notes;

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

                  (iii) the Issuer receives consent of the Credit Enhancer and
      the Rating Agencies shall have notified the Issuer that such transaction
      shall not cause the rating of the Notes or the Certificates to be
      reduced, suspended or withdrawn, as determined without regard to the
      Credit Enhancement Instrument;

                  (iv) the Issuer shall have received an Opinion of Counsel
      (and shall have delivered copies thereof to the Indenture Trustee and
      the Credit Enhancer as addressees thereof) to the effect that such
      transaction will not have any material adverse tax consequence to the
      Issuer 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 Credit Enhancer 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), the Person formed by or surviving such consolidation or
merger (if other than the Issuer) 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), the Issuer will be released from
every covenant and agreement of this Indenture to be observed or performed on
the part of the Issuer with respect to the Notes immediately upon the delivery
of written notice to the Indenture Trustee of such conveyance or transfer.

                                      14
<PAGE>

      Section 3.18.  No Other Business. The Issuer shall not engage in any
business other than financing, purchasing, owning and selling and managing the
Home Equity Loans and the issuance of the Notes and Certificates in the manner
contemplated by this Indenture and the Basic 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 Basic Documents, the Issuer shall not
make any loan or advance or extend 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.  Owner Trustee Not Liable for Certificates or Related
Documents. The recitals contained herein shall be taken as the statements of
the Depositor, and the Owner Trustee assumes no responsibility for the
correctness thereof. The Owner Trustee and the Indenture Trustee make no
representations as to the validity or sufficiency of this Indenture, of any
Basic Document or of the Certificates (other than the signatures of the Owner
Trustee on the Certificates) or the Notes, or of any Related Documents. The
Owner Trustee and the Indenture Trustee shall at no time have any
responsibility or liability with respect to the sufficiency of the Owner Trust
Estate or its ability to generate the payments to be distributed to
Certificateholders under the Trust Agreement or to the Noteholders under this
Indenture including, the compliance by the Depositor or the Seller with any
warranty or representation made under any Basic Document or in any related
document or the accuracy of any such warranty or representation, or any action
of the Certificate Paying Agent, the Certificate Registrar or the Indenture
Trustee taken in the name of the Owner Trustee.

      Section 3.23.  Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or
security in or of the Issuer, (ii) redeem, purchase, retire or otherwise
acquire for value any such ownership or equity interest or security or (iii)
set aside or otherwise segregate any amounts for any such purpose; provided,
however, that the Issuer may make, or cause to be made, (x) distributions to
the Owner Trustee and the Certificateholders as contemplated by, and to the
extent funds are available for such purpose under the Trust Agreement and (y)
payments to the Servicer pursuant to the terms of the Servicing Agreement. The
Issuer will not, directly or indirectly, make payments to or distributions
from the Collection Account except in accordance with this Indenture and the
Basic Documents.

                                      15
<PAGE>

      Section 3.24.  Notice of Events of Default. The Issuer shall give the
Indenture Trustee, the Credit Enhancer and the Rating Agencies prompt written
notice of each Event of Default hereunder and under the Trust Agreement.

      Section 3.25.  Further Instruments and Acts. Upon request of the
Indenture Trustee or the Credit Enhancer, 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 3.26.  Statements to Noteholders. On each Payment Date, the
Indenture Trustee and the Certificate Registrar shall make available to DTC,
the Rating Agencies, the Issuer, the Depositor, the Servicer, the Credit
Enhancer, each Noteholder and Certificateholder, respectively, the Statement
prepared by the Indenture Trustee and based on the Servicing Reports provided
to the Indenture Trustee by the Servicer pursuant to Section 4.01 of the
Servicing Agreement.

            The Indenture Trustee will make the Statement (and, at its option,
any additional files containing the same information in an alternative format)
available each month to Noteholders, the other parties described in the
preceding paragraph and the general public via the Indenture Trustee's
internet website. The Indenture Trustee's internet website shall initially be
located at [____]. Assistance in using the website can be obtained by calling
the Indenture Trustee's customer service desk at [____]. Parties that are
unable to use the above distribution option are entitled to have a paper copy
mailed to them via first class mail by calling the customer service desk and
indicating such. The Indenture Trustee shall have the right to change the way
the Statement is distributed in order to make such distribution more
convenient and/or more accessible to the above parties and the Indenture
Trustee shall provide timely and adequate notification to all above parties
regarding any such changes.

      Section 3.27.  Determination of Note Rate. On the second LIBOR Business
Day immediately preceding (i) the Closing Date in the case of the first
Interest Period and (ii) the first day of each succeeding Interest Period, the
Indenture Trustee shall determine LIBOR and the Note Rate for such Interest
Period and shall provide the Issuer, the Servicer and the Depositor with the
rates of LIBOR and the Note Rate by making such rates available on the
Indenture Trustee's internet website, as set forth in Section 3.26.

      Section 3.28.  Claims under the Credit Enhancement Instrument.

            (a) By the close of business on the [__] Business Day preceding
each Payment Date the Indenture Trustee shall determine from the Servicing
Report with respect to the immediately following Payment Date, the Deficiency
Amount, if any.

            (b) If the Indenture Trustee determines pursuant to paragraph (a)
above that a Deficiency Amount would exist, the Indenture Trustee shall
complete a notice in the form of Exhibit A to the Credit Enhancement
Instrument and submit such notice to the Credit Enhancer no later than 12:00
noon New York City time on the [__] Business Day preceding such Payment Date
as a claim for the payment of an Insured Amount in an amount equal to the
Deficiency Amount.

                                      16
<PAGE>

            (c) The Indenture Trustee shall establish an Eligible Account
(which may be a sub-account of the Payment Account) for the benefit of the
Noteholders and the Credit Enhancer referred to herein as the "Policy Payment
Account" over which the Indenture Trustee shall have exclusive control and
sole right of withdrawal. The Indenture Trustee shall deposit upon receipt any
amount paid under the Credit Enhancement Instrument into the Policy Payment
Account and distribute such amount only for purposes of payment to the
Noteholders of the Insured Amount for which a claim was made and such amount
may not be applied to satisfy any costs, expenses or liabilities of the
Depositor, the Servicer, the Indenture Trustee or the Trust. Amounts paid
under the Credit Enhancement Instrument, to the extent needed to pay the
Insured Amount, shall be disbursed by the Indenture Trustee to the Noteholders
in accordance with Section 3.05(a)(iii), (iv) and (v), as applicable. It shall
not be necessary for such payments to be made by check or wire transfers
separate from checks or wire transfers used to pay the Insured Amount with
other funds available to make such payment. However, the amount of any payment
of principal or interest on the Notes to be paid from funds transferred from
the Policy Payment Account shall be noted as provided in subsection (d) of
this Section 3.28 and in the Servicing Report. Funds held in the Policy
Payment Account shall not be invested. Any funds remaining in the Policy
Payment Account on the [__] Business Day following a Payment Date shall be
returned to the Credit Enhancer pursuant to the written instructions of the
Credit Enhancer by the end of such Business Day.

            (d) The Indenture Trustee shall keep a complete and accurate
record of the amount of interest and principal paid in respect of any Note
from moneys received under the Credit Enhancement Instrument. The Credit
Enhancer shall have the right to inspect such records at reasonable times
during normal business hours upon[__][__] Business Day[s] prior written notice
to the Indenture Trustee.

            (e) The Indenture Trustee shall, upon retirement of the Notes,
furnish to the Credit Enhancer a notice of such retirement, and, upon
retirement of the Notes and the expiration of the term of the Credit
Enhancement Instrument, surrender the Credit Enhancement Instrument to the
Credit Enhancer for cancellation.

      Section 3.29.  [Reserved.]

      Section 3.30.  Rights in Respect of Insolvency Proceedings.

            [Until all Notes have been paid in full, all amounts owed to the
Credit Enhancer have been paid in full, the Insurance and Indemnity Agreement
has terminated and the Credit Enhancement Instrument has been returned to the
Credit Enhancer for cancellation, the following provisions shall apply:

            (a) Unless the Credit Enhancer is in default resulting from the
failure of the Credit Enhancer to make payments under the Credit Enhancement
Instrument, notwithstanding anything contained herein or in the other Basic
Documents to the contrary, the Credit Enhancer shall have the right to
participate in, to direct the enforcement or defense of, and, at the Credit
Enhancer's sole option, to institute or assume the defense of, any action,
proceeding or investigation that could adversely affect the Issuer, the
Collateral, the Trust Estate or the rights or obligations of the Credit
Enhancer hereunder or under the Credit Enhancement Instrument or the

                                      17
<PAGE>

Basic Documents, including (without limitation) any insolvency or bankruptcy
proceeding in respect of the Servicer, the Seller, the Depositor, the Issuer
or any affiliate thereof. Following notice to the Indenture Trustee and
subject to the preceding sentence, the Credit Enhancer shall have exclusive
right to determine, in its sole discretion, the actions necessary to preserve
and protect the Issuer, the Collateral, and the Trust Estate. All reasonable
costs and expenses of the Credit Enhancer in connection with such action,
proceeding or investigation, including (without limitation) any judgment or
settlement entered into affecting the Credit Enhancer or the Credit Enhancer's
interests, shall be included in the Reimbursement Amount.

            (b) In connection with any action, proceeding or investigation
that could adversely affect the Issuer, the Collateral, the Trust Estate or
the rights or obligations of the Credit Enhancer hereunder or under the Credit
Enhancement Instrument or the Basic Documents, including (without limitation)
any insolvency or bankruptcy proceeding in respect of the Servicer, the
Seller, the Depositor, the Issuer or any affiliate thereof, the Indenture
Trustee hereby agrees to cooperate with, and to take such action as directed
by, the Credit Enhancer, including (without limitation) entering into such
agreements and settlements as the Credit Enhancer shall direct, in its sole
discretion, without the consent of any Noteholder.

            (c) The Indenture Trustee hereby agrees to provide to the Credit
Enhancer prompt written notice of any action, proceeding or investigation of
which a Responsible Officer has received notice or has actual knowledge that
names the Issuer or the Indenture Trustee as a party or that could adversely
affect the Issuer, the Collateral, the Trust Estate or the rights or
obligations of the Credit Enhancer hereunder or under the Credit Enhancement
Instrument or the Basic Documents, including (without limitation) any
insolvency or bankruptcy proceeding in respect of the Servicer, the Seller,
the Depositor, the Trust or any affiliate thereof.

            (d) Notwithstanding anything contained herein or in any of the
other Basic Documents to the contrary, the Indenture Trustee shall not,
without the Credit Enhancer's prior written consent or unless directed by the
Credit Enhancer, undertake or join any litigation or agree to any settlement
of any action, proceeding or investigation affecting the Issuer, the
Collateral, the Trust Estate or the rights or obligations of the Credit
Enhancer hereunder or under the Credit Enhancement Instrument or the Basic
Documents.

            (e) Each Noteholder, by acceptance of its Note, and the Indenture
Trustee agree that the Credit Enhancer shall have such rights as set forth in
this Section 3.30, which are in addition to any rights of the Credit Enhancer
pursuant to the other provisions of the Basic Documents, that the rights set
forth in this Section may be exercised by the Credit Enhancer, in its sole
discretion, without the need for the consent or approval of any Noteholder or
the Indenture Trustee, notwithstanding any other provision contained herein or
in any of the other Basic Documents, and that nothing contained in this
Section shall be deemed to be an obligation of the Credit Enhancer to exercise
any of the rights provided for herein.]

      Section 3.31.  Effect of Payments by the Credit Enhancer: Subrogation.
[The Indenture Trustee shall receive as attorney-in-fact of each Noteholder
any Insured Amounts or Preference Amounts from the Credit Enhancer pursuant to
the Credit Enhancement Instrument. Any and all Insured Amounts and Preference
Amounts disbursed by the Indenture Trustee from claims made under the Credit
Enhancement Instrument shall not be considered payment by the

                                      18
<PAGE>

Issuer, and shall not discharge the obligations of the Issuer with respect
thereto. The Credit Enhancer shall, to the extent it makes any payment with
respect to the Notes, become subrogated to the rights of the recipient of such
payments to the extent of such payments. Subject to and conditioned upon any
payment with respect to the Notes by or on behalf of the Credit Enhancer, the
Indenture Trustee shall assign to the Credit Enhancer all rights to the
payment of interest or principal with respect to the Notes which are then due
for payment to the extent of all payments made by the Credit Enhancer.]

      Section 3.32.  Protection of Trust Estate. At the request of the Credit
Enhancer (so long as no Credit Enhancer Default exists), the Indenture Trustee
and 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 as may be necessary or advisable to:

                  (i) Grant more effectively all or any portion of the Trust
      Estate;

                  (ii) maintain or preserve the Lien 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 of the Related Documents;

                  (v) preserve and defend title to the Trust Estate and the
      rights of the Indenture Trustee, and of Noteholders in the Related
      Documents and the other property held as part of the Trust Estate
      against the claims of all Persons and parties; or pay all taxes or
      assessments levied or assessed upon the Trust Estate when due.

      Section 3.33.  Preference Claims.

            (a) [In the event that the Indenture Trustee has received a
certified copy of an order of the appropriate court that any payment of
principal and interest on a Note has been avoided in whole or in part as a
preference payment under applicable bankruptcy law, the Indenture Trustee
shall so notify the Credit Enhancer, shall comply with the provisions of the
Credit Enhancement Instrument to obtain payment by the Credit Enhancer of such
avoided payment, and shall, at the time it provides notice to the Credit
Enhancer, notify Holders of the Notes by mail that, in the event that any
Noteholder's payment is so recoverable, such Noteholder will be entitled to
payment pursuant to the terms of the Credit Enhancement Instrument. The
Indenture Trustee shall furnish to the Credit Enhancer at its written request,
the requested records it holds in its possession evidencing the payments of
principal of and interest on Notes, if any, which have been made by the
Indenture Trustee and subsequently recovered from Noteholders and the dates on
which such payments were made. Pursuant to the terms of the Credit Enhancement
Instrument, the Credit Enhancer will make such payment on behalf of the
related Noteholder to the receiver, conservator, debtor-in-possession or
trustee in bankruptcy named in the final order of the court exercising
jurisdiction on behalf of the Noteholders and not to the Indenture Trustee,
any Noteholder directly (unless such Noteholder has returned principal or
interest paid on the Notes to such receiver or trustee in bankruptcy, in which
case the Credit

                                      19
<PAGE>

Enhancer shall make such payment to the Indenture Trustee for payment to such
Noteholder in accordance with the terms of the Credit Enhancement Instrument).

            (b) The Indenture Trustee shall promptly notify the Credit
Enhancer of any proceeding or the institution of any action (of which the
Indenture Trustee has actual knowledge) seeking the avoidance as a
preferential transfer under applicable bankruptcy, insolvency, receivership,
rehabilitation or similar law (a "Preference Claim") of any distribution made
with respect to the Notes. Each Holder, by its purchase of Notes, and the
Indenture Trustee hereby agree that so long as the Credit Enhancer is not in
default, the Credit Enhancer may at any time during the continuation of any
proceeding relating to a Preference Claim direct all matters relating to such
Preference Claim, including, without limitation, (i) the direction of any
appeal of any order relating to any Preference Claim and (ii) the posting of
any surety, supersedes or performance bond pending any such appeal at the
expense of the Credit Enhancer, but subject to reimbursement as provided in
the Insurance and Indemnity Agreement. In addition, and without limitation of
the foregoing, as set forth in Section 3.31, the Credit Enhancer shall be
subrogated to, and each Noteholder and the Indenture Trustee hereby delegate
and assign, to the fullest extent permitted by law, the rights of the
Indenture Trustee and each Noteholder in the conduct of any proceeding with
respect to a Preference Claim, including, without limitation, all rights of
any party to an adversary proceeding action with respect to any court order
issued in connection with any such Preference Claim. All actions taken under
this Section 3.33 by the Indenture Trustee shall be taken in accordance with
the terms of the Credit Enhancement Instrument.]

                                      20
<PAGE>

                                  ARTICLE IV.

              The Notes; Satisfaction and Discharge of Indenture

      Section 4.01.  The Notes. The Notes shall be registered in the name of a
nominee designated by the Depository. Beneficial Owners will hold interests in
the Notes through the book-entry facilities of the Depository in minimum
initial Security Balances of $[__] and integral multiples of $[__] in excess
thereof, except for one Note, evidencing the sum of an authorized denomination
thereof and the remainder of the aggregate Security Balance of the Notes.

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

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

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

      Section 4.02.  Registration of and Limitations on Transfer and Exchange
of Notes; Appointment of Certificate Registrar. The Issuer shall cause to be
kept at the Indenture Trustee's Corporate Trust Office a Note Register in
which, subject to such reasonable regulations as it may prescribe, the Note
Registrar shall provide for the registration of Notes and of transfers and
exchanges of Notes as herein provided. The Issuer hereby appoints the
Indenture Trustee as Note Registrar to keep at its Corporate Trust Office a
Note Register in which, subject to such reasonable regulations as it may
prescribe, the Note Registrar shall provide for the registration of Notes and
of transfers and exchanges thereof pursuant to this Section 4.02. The
Indenture Trustee hereby accepts such appointment.

                                      21
<PAGE>

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

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

            Any Noteholder using the assets 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 Internal Revenue
Code of 1986, as amended, or (iii) any entity whose underlying assets include
plan assets by reason of a plan's investment in the entity to purchase the
Notes, or to whom the Notes are transferred, will be deemed to have
represented that the acquisition and continued holding of the Notes do not
constitute or give rise to a prohibited transaction under Section 406 of ERISA
or Section 4975 of the Code for which no statutory, regulatory or
administrative exemption is available, and the Indenture Trustee shall be
entitled to conclusively rely upon such representation without any independent
investigation.

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

            All Notes surrendered for registration of transfer and exchange
shall be cancelled by the Note Registrar and delivered to the Indenture
Trustee for subsequent destruction without liability on the part of either.

            The Issuer hereby appoints the Indenture Trustee as Certificate
Registrar to keep at its Corporate Trust Office a Certificate Register
pursuant to Section 3.09 of the Trust Agreement in which, subject to such
reasonable regulations as it may prescribe, the Certificate Registrar shall
provide for the registration of Certificates and of transfers and exchanges
thereof pursuant to Section 3.05 of the Trust Agreement. The Indenture Trustee
hereby accepts such appointment.

                                      22
<PAGE>

      Section 4.03.  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 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 provided that the requirements of Section 8-405 of
the UCC are met, the Issuer shall execute, and upon its request the Indenture
Trustee shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note of the same
class; provided, however, that if any such destroyed, lost or stolen Note, but
not a mutilated Note, shall have become or within [__] days shall be due and
payable, instead of issuing a replacement Note, the Issuer may pay such
destroyed, lost or stolen Note when so due or payable without surrender
thereof. If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note pursuant to the proviso to the preceding
sentence, a bona fide purchaser of the original Note in lieu of which such
replacement Note was issued presents for payment such original Note, the
Issuer and the 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 4.03,
the Issuer may require the payment by the Holder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee) connected therewith.

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

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

      Section 4.04.  Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Credit Enhancer, the
Indenture Trustee, the Note Registrar 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, if any, on such Note and for
all other purposes whatsoever, whether or not such Note be overdue, and none
of the Issuer, the Credit Enhancer, the Indenture Trustee or any agent of the
Issuer or the Indenture Trustee shall be affected by notice to the contrary.

                                      23
<PAGE>

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

      Section 4.06.  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 Depository, by,
or on behalf of, the Issuer. Such Notes shall initially be registered on the
Note Register in the name of Cede & Co., the nominee of the initial
Depository, and no Beneficial Owner will receive a Definitive Note
representing such Beneficial Owner's interest in such Note, except as provided
in Section 4.08. Unless and until definitive, fully registered Notes (the
"Definitive Notes") have been issued to Beneficial Owners pursuant to Section
4.08:

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

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

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

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

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

                                      24
<PAGE>

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

      Section 4.08.  Definitive Notes. If (i) the Indenture Trustee determines
that the Depository is no longer willing or able to properly discharge its
responsibilities with respect to the Notes and the Indenture Trustee is unable
to locate a qualified successor, (ii) the Depositor notifies the Indenture
Trustee of its intent to terminate the book entry system through the
Depository and, upon receipt of notice of such intent from the Depository, the
Beneficial Owners of the Book-Entry Notes agree to initiate such termination
or (iii) after the occurrence of an Event of Default, Owners of Notes
representing beneficial interests aggregating at least a majority of the
Security Balances of the Notes advise the Depository in writing that the
continuation of a book-entry system through the Depository is no longer in the
best interests of the Beneficial Owners, then the Depository shall notify all
Beneficial Owners and the Indenture Trustee of the occurrence of any such
event and of the availability of Definitive Notes to Beneficial Owners
requesting the same. Upon surrender to the Indenture Trustee of the
typewritten Notes representing the Book-Entry Notes by the Depository,
accompanied by registration instructions, the Issuer shall execute and the
Note Registrar shall authenticate the Definitive Notes in accordance with the
instructions of the Depository. 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 4.09.  Tax Treatment. The Issuer has entered into this
Indenture, and the Notes will be issued, with the intention that, for federal,
state and local income, single business and franchise tax purposes, the Notes
will qualify as indebtedness of the Issuer. The Issuer, by entering into this
Indenture, and each Noteholder, by its acceptance of its Note (and each
Beneficial Owner by its acceptance of an interest in the applicable Book-Entry
Note), agree to treat the Notes for federal, state and local income, single
business and franchise tax purposes as indebtedness.

      Section 4.10.  Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of
mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
receive payments of principal thereof and interest thereon, (iv) Sections
3.03, 3.04, 3.06, 3.09, 3.16, 3.18 and 3.19, (v) the rights, obligations and
immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.08 and the obligations of the Indenture
Trustee under Section 4.11) 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

                                      25
<PAGE>

                        (A) either

                        (1) all Notes theretofore authenticated and delivered
                  (other than (i) Notes that have been destroyed, lost or
                  stolen and that have been replaced or paid as provided in
                  Section 4.03 and (ii) Notes for payment of which money has
                  theretofore been deposited in trust or segregated and held
                  in trust by the Issuer and thereafter repaid to the Issuer
                  or discharged from such trust, as provided in Section 3.03)
                  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 at the Scheduled
                        Final Payment Date within one year, or

                              c. have been declared immediately due and
                        payable pursuant to Section 5.02.

and the Issuer, in the case of a. or b. above, has irrevocably deposited or
caused to be irrevocably deposited with the Indenture Trustee cash or
non-callable 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 and Certificates then
outstanding not theretofore delivered to the Indenture Trustee for
cancellation when due on the Scheduled Final Payment Date and all amounts due
and owing the Credit Enhancer and Indenture Trustee;

                        (B) the Issuer has paid or caused to be paid all other
            sums payable or to become payable hereunder, including, without
            limitation, all expenses incurred by the Indenture Trustee in
            connection with the defeasance described in the immediately
            preceding paragraph and all amounts due and owing to the Credit
            Enhancer under the Insurance and Indemnity Agreement; and

                        (C) the Issuer has delivered to the Indenture Trustee
            and the Credit Enhancer an Officer's Certificate and an Opinion of
            Counsel, each meeting the applicable requirements of Section 10.01
            and each stating that all conditions precedent herein provided for
            relating to the satisfaction and discharge of this Indenture have
            been complied with and, if the Opinion of Counsel relates to a
            deposit made in connection with Section 4.10(A)(2)b. above, such
            opinion shall further be to the effect that such deposit will not
            have any material adverse tax consequences to the Issuer, any
            Noteholders or any Certificateholders.

      Section 4.11.  Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.10 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent or
Certificate Paying Agent, as the Indenture Trustee may determine, to the

                                      26
<PAGE>

Holders of Securities, of all sums due and to become due thereon for principal
and interest; but such monies need not be segregated from other funds except
to the extent required herein or required by law.

      Section 4.12.  Reserved.

      Section 4.13.  Repayment of Monies Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the
Notes, all monies then held by any 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 3.05 and thereupon such Paying Agent shall be
released from all further liability with respect to such monies.

      Section 4.14.  Temporary Notes. Pending the preparation of any
Definitive Notes, the Issuer may execute and upon its written direction, the
Indenture Trustee may authenticate and make available for delivery, temporary
Notes that are printed, lithographed, typewritten, photocopied or otherwise
produced, in any denomination, substantially of the tenor of the Definitive
Notes in lieu of which they are issued and with such appropriate insertions,
omissions, substitutions and other variations as the officers executing such
Notes may determine, as evidenced by their execution of such Notes.

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

                                  ARTICLE V.

                             Default and Remedies

      Section 5.01.  Events of Default. The Issuer shall deliver to the
Indenture Trustee and the Credit Enhancer, within [__] days after learning of
the occurrence of any event which with the giving of notice and the lapse of
time would become an Event of Default written notice in the form of an
Officer's Certificate of its status and what action the Issuer is taking or
proposes to take with respect thereto.

      Section 5.02.  Acceleration of Maturity; Rescission and Annulment. If an
Event of Default described in clauses (i), (ii) or (iii) of the definition
thereof should occur, then and in every such case (i) the Indenture Trustee
with the prior consent of the Credit Enhancer or the Holders of Notes
representing not less than a majority of the Security Balances of all Notes
with the prior written consent of the Credit Enhancer, or (ii) the Credit
Enhancer may declare the Notes to be immediately due and payable, by a notice
in writing to the Issuer (and to the

                                      27
<PAGE>

Indenture Trustee if given by Noteholders or the Credit Enhancer and to the
Credit Enhancer if given by the Indenture Trustee or the Noteholders), and
upon any such declaration the unpaid principal amount of such class of Notes,
together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable. If an Event of Default
described in clause (iv) or (v) of the definition thereof shall occur, the
Notes shall automatically be declared due and payable hereunder.

            At any time after such declaration of acceleration of maturity
with respect to an Event of Default has been made and before a judgment or
decree for payment of the money due has been obtained by the Indenture Trustee
as hereinafter in this Article V provided, the Holders of Notes representing a
majority of the aggregate Security Balance of all Notes, by written notice to
the Issuer and the Indenture Trustee with the written consent of the Credit
Enhancer, or the Credit Enhancer, may in writing waive the related Event of
Default and rescind and annul such declaration and its consequences if:

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

                        (A) all payments of principal of and interest on the
            Notes and all other amounts that would then be due hereunder or
            upon the 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.

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

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

            (a) The Issuer covenants that upon default in the payment of (i)
any interest on any Note when the same becomes due and payable, and such
default continues for a period of [five] days, or (ii) the principal of or any
installment of the principal of any Note when the same becomes due and
payable, the Issuer shall, upon demand of the Indenture Trustee, pay to it,
for the benefit of the Holders of Notes, the whole amount then due and payable
on the Notes for principal and interest, with interest upon the overdue
principal, and in addition thereto such further amount as shall be sufficient
to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee
and its agents and counsel.

            (b) In case the Issuer shall fail forthwith to pay such amounts
upon such demand, the Indenture Trustee, in its own name and as trustee of an
express trust, subject to the

                                      28
<PAGE>

provisions of Section 10.17 hereof may with the consent of the Credit
Enhancer, and if the Credit Enhancer so directs, shall institute a Proceeding
for the collection of the sums so due and unpaid, and may with the consent of
the Credit Enhancer, and if the Credit Enhancer so directs, shall prosecute
such Proceeding to judgment or final decree, and may with the consent of the
Credit Enhancer, and if the Credit Enhancer so directs, shall enforce the same
against the Issuer or other obligor upon the Notes and collect in the manner
provided by law out of the property of the Issuer or other obligor upon the
Notes, wherever situated, the monies adjudged or decreed to be payable.

            (c) If an Event of Default occurs and is continuing, the Indenture
Trustee subject to the provisions of Section 10.17 hereof may, as more
particularly provided in Section 5.04, in its discretion, with the consent of
the Credit Enhancer, and if the Credit Enhancer so directs, shall proceed to
protect and enforce its rights and the rights of the Noteholders, by such
appropriate Proceedings as the Indenture Trustee or the Credit Enhancer, as
applicable, 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, shall be entitled and empowered, by intervention
in such Proceedings or otherwise:

                  (i) to file and prove a claim or claims for the whole amount
      of principal and interest owing and unpaid in respect of the 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 and each
      predecessor Indenture Trustee, and their respective agents, attorneys
      and counsel, and for reimbursement of all expenses and liabilities
      incurred, and all advances made, by the Indenture Trustee and each
      predecessor Indenture Trustee, except as a result of negligence, willful
      misconduct or bad faith) and of the Noteholders allowed in such
      Proceedings;

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

                                      29
<PAGE>

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

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

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the 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, willful misconduct 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 any plan of reorganization, arrangement, adjustment
or composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar Person.

            (f) All rights of action and of asserting claims under this
Indenture, or under any of the Notes, may be enforced by the Indenture Trustee
without the possession of any of the Notes or the production thereof in any
trial or other Proceedings relative thereto, and any such action or
proceedings instituted by the Indenture Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment, subject to
the payment of the expenses, disbursements and compensation of the Indenture
Trustee, each predecessor Indenture Trustee and their respective agents and
attorneys, shall be for the 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 Holders of the Notes and the Credit
Enhancer, and it shall not be necessary to make any Noteholder or the Credit
Enhancer a party to any such Proceedings.

      Section 5.04.  Remedies; Priorities.

            (a) If an Event of Default shall have occurred and be continuing,
the Indenture Trustee subject to the provisions of Section 10.17 hereof may
with the prior written consent of the Credit Enhancer, or shall at the written
direction of the Credit Enhancer do one or more of the following (subject to
Section 5.05):

                  (i) institute Proceedings in its own name and as trustee of
      an express trust for the collection of all amounts then payable on the
      Notes or under this Indenture

                                      30
<PAGE>

      with respect thereto, whether by declaration or otherwise, and all
      amounts payable under the Insurance and Indemnity Agreement, enforce any
      judgment obtained, and collect from the Issuer and any other obligor
      upon such Notes monies adjudged due;

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

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

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

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee is directed to do so by the Credit Enhancer, (B) the
Indenture Trustee obtains the consent of the Holders of 100% of the aggregate
Security Balance of the Notes and the Credit Enhancer, (C) the proceeds of
such sale or liquidation distributable to Holders are sufficient to discharge
in full all amounts then due and unpaid upon the Notes for principal and
interest and to reimburse the Credit Enhancer for any amounts drawn under the
Credit Enhancement Instrument and any other amounts due the Credit Enhancer
under the Insurance and Indemnity Agreement and to reimburse the Indenture
Trustee for any unreimbursed expenses, advances or liabilities incurred
hereunder or (D) the Indenture Trustee determines that the Home Equity Loans
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 Credit Enhancer, and of the Holders of 66 2/3% of the aggregate
Security Balances of the Notes. In determining such sufficiency or
insufficiency with respect to clause (C) and (D), the Indenture Trustee may,
but need not, obtain and rely upon an opinion of an Independent investment
banking or accounting firm of national reputation (which opinion shall not be
an expense of the Indenture Trustee) as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.
Notwithstanding the foregoing, so long as a Servicing Default has not
occurred, any Sale of the Trust Estate shall be made subject to the continued
servicing of the Home Equity Loans by the Servicer as provided in the
Servicing Agreement.

            (b) If the Indenture Trustee collects any money or property
pursuant to this Article V, it shall pay out the money or property in the
order described in Section 3.05 hereof, except that payments pursuant to
clause (viii) shall be made without regard to the Accelerated Principal
Payment Amount but rather shall be made until the Security Balance of the
Notes is reduced to zero.

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

                                      31
<PAGE>

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

      Section 5.06.  Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless and subject to the provisions of Section 10.17
hereof, the Credit Enhancer consents and:

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

                  (ii) the Holders of not less than 25% of the Security
      Balances 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;

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

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

                  (v) no direction inconsistent with such written request has
      been given to the Indenture Trustee during such [60]-day period by the
      Holders of a majority of the Security Balances of the Notes or by the
      Credit Enhancer.

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

            In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of
Notes, each representing less than a majority of the Security Balances of the
Notes, the Indenture Trustee in its sole discretion may

                                      32
<PAGE>

determine what action, if any, shall be taken, notwithstanding any other
provisions of this Indenture.

      Section 5.07.  Unconditional Rights of Noteholders to Receive Principal
and 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 dates thereof expressed in such Note or in this
Indenture and to institute suit for the enforcement of any such payment, and
such right shall not be impaired without the consent of such Holder.

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

      Section 5.09.  Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee, the Credit Enhancer 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 Credit Enhancer or any Holder of any Note to
exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default
or an acquiescence therein. Every right and remedy given by this Article V or
by law to the Indenture Trustee, the Credit Enhancer or to the Noteholders may
be exercised from time to time, and as often as may be deemed expedient, by
the Indenture Trustee, the Credit Enhancer or by the Noteholders, as the case
may be.

      Section 5.11.  Control by Credit Enhancer or Noteholders. The Holders of
a majority of the Security Balance of Notes with the prior written consent of
the Credit Enhancer, or the Credit Enhancer (so long as no Credit Enhancer
Default exists) shall have the right to direct the time, method and place of
conducting any Proceeding for any remedy available to the Indenture Trustee
with respect to the Notes or exercising any trust or power conferred on the
Indenture Trustee; provided that:

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

                  (ii) subject to the express terms of Section 5.04, any
      direction to the Indenture Trustee to sell or liquidate the Trust Estate
      shall be by Holders of Notes

                                      33
<PAGE>

      representing not less than 100% of the Security Balances of Notes with
      the consent of the Credit Enhancer, or the Credit Enhancer (so long as
      no Credit Enhancer Default exists);

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

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

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

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

      Section 5.13.  Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note 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 5.13 shall not apply to (a) any suit instituted by
the Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than [__]% of the
Security Balance 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.

                                      34
<PAGE>

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

      Section 5.15.  Sale of Trust Estate.

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

            (b) Other than pursuant to Section 5.15(e) below, the Indenture
Trustee shall not in any private Sale sell the Trust Estate, or any portion
thereof, unless:

                        (1) the Holders of all Notes (with the prior written
                  consent of the Credit Enhancer) or the Credit Enhancer
                  consent to, or direct the Indenture Trustee to make or the
                  Indenture Trustee may make (with the consent of the Credit
                  Enhancer and all Holders of the Notes), such Sale, or

                        (2) the proceeds of such Sale would be not less than
                  the entire amount which would be payable to the Noteholders
                  under the Notes, the Certificateholders under the
                  Certificates and the Credit Enhancer in respect of amounts
                  drawn under the Credit Enhancement Instrument and any other
                  amounts due the Credit Enhancer under the Insurance and
                  Indemnity Agreement, in full payment thereof in accordance
                  with Section 5.02, on the Payment Date next succeeding the
                  date of such Sale, or

                        (3) the Indenture Trustee determines, in its sole
                  discretion, that the conditions for retention of the Trust
                  Estate set forth in Section 5.05 cannot be satisfied (in
                  making any such determination, the Indenture Trustee may
                  rely upon an opinion of an Independent investment banking
                  firm obtained and delivered as provided in Section 5.05),
                  and the Credit Enhancer consents in writing to such Sale,
                  and the Holders representing at least 66 2/3% of the
                  Security Balance of the Notes consent to such Sale.

                                      35
<PAGE>

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

            (c) Unless the Holders and the Credit Enhancer have otherwise
consented or directed the Indenture Trustee, at any public Sale (other than
pursuant to Section 5.15(e) below) of all or any portion of the Trust Estate
at which a minimum bid equal to or greater than the amount described in
paragraph (2) of subsection (b) of this Section 5.15 has not been established
by the Indenture Trustee and no Person bids an amount equal to or greater than
such amount, the Indenture Trustee shall bid an amount at least $[__] more
than the highest other bid.

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

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

                        (2) the Indenture Trustee may bid for and acquire the
                  property offered for Sale in connection with any Sale
                  thereof, and, subject to any requirements of, and to the
                  extent permitted by, applicable law in connection therewith,
                  may purchase all or any portion of the Trust Estate in a
                  private sale, and, in lieu of paying cash therefor, may make
                  settlement for the purchase price by crediting the gross
                  Sale price against the sum of (A) the amount which would be
                  distributable to the Holders of the Notes and Holders of
                  Certificates and amounts owing to the Credit Enhancer as a
                  result of such Sale in accordance with Section 5.04(b) on
                  the Payment Date next succeeding the date of such Sale and
                  (B) the expenses of the Sale and of any Proceedings in
                  connection therewith which are reimbursable to it, without
                  being required to produce the Notes in order to complete any
                  such Sale or in order for the net Sale price to be credited
                  against such Notes, and any property so acquired by the
                  Indenture Trustee shall be held and dealt with by it in
                  accordance with the provisions of this Indenture;

                        (3) the Indenture Trustee shall execute and deliver an
                  appropriate instrument of conveyance transferring its
                  interest in any portion of the Trust Estate in connection
                  with a Sale thereof;

                        (4) the Indenture Trustee is hereby irrevocably
                  appointed the agent and attorney-in-fact of the Issuer to
                  transfer and convey its interest

                                      36
<PAGE>

                  in any portion of the Trust Estate in connection with a
                  Sale thereof, and to take all action necessary to effect
                  such Sale; and

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

            (e) On the [fifth] Business Day prior to the Auction Payment Date,
the Auction Administrator shall effectuate the auction contemplated by Section
8.04(a) of this Indenture.

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

      Section 5.17.  Performance and Enforcement of Certain Obligations.

            (a) Promptly following a written direction from (a) the Credit
Enhancer or (b) the Indenture Trustee with the written consent of the Credit
Enhancer, the Issuer, in its capacity as holder of the Home Equity Loans,
shall take all such lawful action as the Credit Enhancer or the Indenture
Trustee may request to cause the Issuer to compel or secure the performance
and observance by the Seller and the Servicer, as applicable, of each of their
obligations to the Issuer under or in connection with the Home Equity Loan
Purchase Agreement and the Servicing Agreement, and to exercise any and all
rights, remedies, powers and privileges lawfully available to the Issuer under
or in connection with the Home Equity Loan Purchase Agreement and the
Servicing Agreement to the extent and in the manner directed by the Indenture
Trustee, as pledgee of the Home Equity Loans, including the transmission of
notices of default on the part of the Seller or the Servicer thereunder and
the institution of legal or administrative actions or proceedings to compel or
secure performance by the Seller or the Servicer of each of their obligations
under the [______] Purchase Agreement and the Servicing Agreement.

            (b) If an Event of Default has occurred and is continuing, the
Indenture Trustee, as pledgee of the Home Equity Loans, subject to the rights
of the Credit Enhancer under the Servicing Agreement may, and at the direction
(which direction shall be in writing or by telephone (confirmed in writing
promptly thereafter)) of the Holders of 66 2/3% of the Security Balances of
the Notes, with the consent of the Credit Enhancer shall exercise all rights,
remedies, powers, privileges and claims of the Issuer against the Seller or
the Servicer under or in connection with the Home Equity Loan Purchase
Agreement and the Servicing Agreement, including the right or power to take
any action to compel or secure performance or observance by the Seller or the
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 Home Equity Loan Purchase Agreement and the
Servicing Agreement, as the case may

                                      37
<PAGE>

be, and any right of the Issuer to take such action shall not be suspended. In
connection therewith, as determined by the Indenture Trustee, the Issuer shall
take all actions necessary to effect the transfer of the Home Equity Loans to
the Indenture Trustee.

                                  ARTICLE VI.

                             The Indenture Trustee

      Section 6.01.  Duties of Indenture Trustee.

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

            (b) Except during the continuance of an Event of Default:

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

                  (ii) in the absence of bad faith 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,
      reports 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 6.01;

                  (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 (A) pursuant to Section 5.11 or (B) from the
      Credit Enhancer, which it is entitled to give under any of the Basic
      Documents.

            (d) 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.

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<PAGE>

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

            (f) No provision of this Indenture shall require the Indenture
Trustee 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.

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

      Section 6.02.  Rights of Indenture Trustee.

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

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

            (c) The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee approved by the Credit Enhancer,
and the Indenture Trustee shall not be responsible for any misconduct or
negligence on the part of, or for the supervision of, any such agent,
attorney, custodian or nominee appointed with due care by it hereunder.

            (d) The Indenture Trustee shall not be liable for any action it
takes or omits to take in good faith which it believes to be authorized or
within its rights or powers; provided, however, that the Indenture Trustee's
conduct does not constitute willful misconduct, negligence or bad faith.

            (e) The Indenture Trustee may consult with counsel, and the advice
or opinion of counsel with respect to legal matters relating to this
Indenture, the Trust Estate and the Notes shall be full and complete
authorization and protection from liability in respect to any action taken,
omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

      Section 6.03.  Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or
pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with
the same rights it would have if it were not Indenture Trustee. Any 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.

                                      39
<PAGE>

      Section 6.04.  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) 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 6.05.  Notice of Event of Default. If an Event of Default occurs
and is continuing and if it is actually known to a Responsible Officer of the
Indenture Trustee, the Indenture Trustee shall give notice thereof to the
Credit Enhancer. The Indenture Trustee shall mail to each Noteholder notice of
the Event of Default within [5] days after it occurs.

      Section 6.06.  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 the Issuer's written request, the Indenture Trustee shall
promptly furnish information reasonably requested by the Issuer that is in the
possession of the Indenture Trustee to enable the Issuer to perform its
federal and state income tax reporting obligations.

      Section 6.07.  Tax. The Indenture Trustee shall prepare and deliver the
income tax returns, tax elections, financial statements, and such annual or
other reports of the Trust pursuant to Section 2.06 of the Trust Agreement;
provided, however, that the Indenture Trustee shall not be required to compute
the Trust's gross income except to the extent it can do so without
unreasonable effort or expense based upon income statements furnished to it;
and provided, further, that the Indenture Trustee shall not be required to
prepare and file partnership tax returns on behalf of the Trust unless it
receives an Opinion of Counsel (which shall not be at the Indenture Trustee's
expense, but shall be at the expense of the Seller or other party furnishing
such opinion) as to the necessity of such filings. The Indenture Trustee shall
be paid additional reasonable compensation by the Seller for the preparation
of partnership tax returns on behalf of the Trust.

      Section 6.08.  Compensation and Indemnity. The Indenture Trustee and the
Custodian shall be compensated and indemnified by the Servicer in accordance
with Section 6.06 of the Servicing Agreement and Section 3.2 of the Custodial
Agreement, respectively, and all amounts owing to the Indenture Trustee and
the Custodian, hereunder and the Custodian under the Custodial Agreement in
excess of such compensation and indemnification payable by the Servicer
whether payable by the Issuer pursuant to this Section 6.08 or upon the
failure or inability of the Servicer to pay the amounts specified in Section
6.06(b) of the Servicing Agreement shall be paid solely as provided in Section
3.05(a)(i) and (a)(xi) hereof (subject to the priorities set forth therein).
The Indenture Trustee's compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Issuer shall reimburse the
Indenture Trustee for all reasonable out-of-pocket expenses incurred or made
by it, including Transition Costs, 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 Issuer shall indemnify
the Indenture Trustee against any and all loss, liability or expense
(including attorneys' fees) incurred by it in connection with the
administration of this trust and the performance of its duties or the exercise
of its rights hereunder and under any other Basic Document pursuant to Section
6.17. The

                                      40
<PAGE>

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 Issuer is not
obligated to reimburse any expense or indemnify against any loss, liability or
expense incurred by the Indenture Trustee through the Indenture Trustee's own
willful misconduct, negligence or bad faith.

            The Issuer's payment obligations to the Indenture Trustee pursuant
to this Section 6.08 shall survive the discharge of this Indenture or the
termination of any Basic Document. When the Indenture Trustee incurs expenses
after the occurrence of an Event of Default specified in clause (iv) or (v) of
the definition thereof with respect to the Issuer, the expenses are intended
to constitute expenses of administration under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or
similar law.

      Section 6.09.  Replacement of Indenture Trustee. No resignation or
removal of the Indenture Trustee and no appointment of a successor Indenture
Trustee shall become effective until the acceptance by the Credit Enhancer and
the successor Indenture Trustee of appointment pursuant to this Section 6.09.
The Indenture Trustee may resign at any time by so notifying the Issuer and
the Credit Enhancer. The Holders of a majority of Security Balances of the
Notes or the Credit Enhancer may remove the Indenture Trustee by so notifying
the Indenture Trustee and the Credit Enhancer and may appoint a successor
Indenture Trustee. The Issuer shall (with the consent of the Credit Enhancer)
remove the Indenture Trustee if:

                  (i) the Indenture Trustee fails to comply with Section 6.12;

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

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

                  (iv) the Indenture Trustee otherwise becomes incapable of
      fulfilling its duties under the Basic Documents.

            If the Indenture Trustee resigns or is removed or if a vacancy
exists in the office of the Indenture Trustee for any reason (the Indenture
Trustee in such event being referred to herein as the retiring Indenture
Trustee), the Credit Enhancer may (and if the Credit Enhancer shall fail to do
so, the Issuer shall promptly with the prior written consent of the Credit
Enhancer which consent will not be unreasonably withheld) appoint a successor
Indenture Trustee. In addition, the Indenture Trustee will resign to avoid
being directly or indirectly controlled by the Issuer.

            A successor Indenture Trustee shall deliver a written acceptance
of its appointment to the retiring Indenture Trustee 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

                                      41
<PAGE>

Indenture Trustee shall promptly transfer all property held by it as Indenture
Trustee to the successor Indenture Trustee.

            If a successor Indenture Trustee does not take office within [60]
days after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Holders of a majority of Security
Balances of the Notes (with the consent of the Credit Enhancer) may petition
any court of competent jurisdiction for the appointment of a successor
Indenture Trustee.

            If the Indenture Trustee fails to comply with Section 6.12, any
Noteholder (with the consent of the Credit Enhancer) may 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, the Issuer's obligations under Section 6.08 shall continue
for the benefit of the retiring Indenture Trustee.

      Section 6.10.  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 6.12. The Indenture Trustee shall provide
the Rating Agencies written notice of any such transaction after the Closing
Date.

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

      Section 6.11.  Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

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

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<PAGE>

eligibility as a successor trustee under Section 6.12 and no notice to
Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.09 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
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, either
jointly with the Indenture Trustee or separately, as may be provided therein,
subject to all the provisions of this Indenture, specifically including every
provision of this Indenture relating to the conduct of, affecting the
liability of, or affording protection to, the Indenture Trustee. Every such
instrument shall be filed with the Indenture Trustee.

            (d) Any separate trustee or co-trustee may at any time constitute
the Indenture Trustee, its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or
in respect of this Agreement on its behalf and in its name. If any separate
trustee or co-trustee shall die, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall
vest in and be exercised by the Indenture Trustee, to the extent permitted by
law, without the appointment of a new or successor trustee.

      Section 6.12.  Eligibility; Disqualification. The Indenture Trustee
shall at all times satisfy the requirements of TIA ss. 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 and it or
its parent shall have a long-term unsecured debt rating of A or better by

                                      43
<PAGE>

[rating agency]. The Indenture Trustee shall comply with TIA ss. 310(b),
including the optional provision permitted by the second sentence of TIA ss.
310(b)(9); provided, however, that there shall be excluded from the operation
of TIA ss. 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 ss. 310(b)(1) are met.

      Section 6.13.  Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). An Indenture Trustee who has resigned
or been removed shall be subject to TIA ss. 311(a) to the extent indicated.

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

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

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

                  (iii) The consummation of the transactions contemplated by
      this Indenture and the fulfillment of the terms hereof do not conflict
      with, result in any breach of any of the terms and provisions of, or
      constitute (with or without notice or lapse of time) a default under,
      the articles of organization 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.

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

                  (v) The Indenture Trustee does not have actual notice of any
      material adverse claim with respect to the Home Equity Loans and does
      not have actual knowledge that its security interest therein, for the
      benefit of the Noteholders, violates the rights of any other secured
      party.

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<PAGE>

      Section 6.15.  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 Credit Enhancer;

            (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.

      Section 6.16.  Indenture Trustee May Own Securities. The Indenture
Trustee, in its individual or any other capacity may become the owner or
pledgee of Securities with the same rights it would have if it were not
Indenture Trustee.

      Section 6.17.  Other Capacities of Indenture Trustee. Any protection or
right afforded the Indenture Trustee pursuant to this Indenture, including but
not limited to Section 6.01(d) through (f), Section 6.02 and Section 6.08
shall apply to the Indenture Trustee acting in other capacities under the
Basic Documents, including but not limited to the capacity of Note Registrar,
Paying Agent and Auction Administrator hereunder, Certificate Paying Agent and
Certificate Registrar under the Trust Agreement, Indenture Trustee under the
Servicing Agreement and Custodian under the Custodial Agreement.

                                 ARTICLE VII.

                        Noteholders' Lists and Reports

      Section 7.01.  Issuer to Furnish Indenture Trustee Names and Addresses
of Noteholders. The Issuer will furnish or cause to be furnished to the
Indenture Trustee (a) not more than [___] days after each Record Date, a list,
in such form as the Indenture Trustee may reasonably require, of the names and
addresses of the Holders of Notes as of such Record Date and, (b) at such
other times as the Indenture Trustee and the Credit Enhancer 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 to the Indenture Trustee.

      Section 7.02.  Preservation of Information; Communications to
Noteholders.

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

                                      45
<PAGE>

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

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

      Section 7.03.  Reserved.

      Section 7.04.  Reports by Issuer.

            (a) The Issuer shall:

                  (i) file with the Indenture Trustee, and the Commission in
      accordance with 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

                  (ii) supply to the Indenture Trustee (and the Indenture
      Trustee shall transmit by mail to all Noteholders described in TIA ss.
      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 7.04(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 7.05.  Reports by Indenture Trustee. If required by TIA ss.
313(a), within [__] days after each [____] beginning with [____], 20[__], the
Indenture Trustee shall mail to each Noteholder as required by TIA ss. 313(c)
and to the Credit Enhancer a brief report dated as of such date that complies
with TIA ss. 313(a). The Indenture Trustee also shall comply with TIA ss.
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, if required, and
each stock 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 stock
exchange.

                                 ARTICLE VIII.

                     Accounts, Disbursements and Releases

      Section 8.01.  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

                                      46
<PAGE>

payment or performance under any agreement or instrument that is part of the
Trust Estate, the Indenture Trustee may, with the consent of the Credit
Enhancer, and if directed to do so by the Credit Enhancer, shall take such
action as may be appropriate to enforce such payment or performance, including
the institution and prosecution of appropriate Proceedings. Any such action
shall be without prejudice to any right to claim a Default or Event of Default
under this Indenture and any right to proceed thereafter as provided in
Article V.

      Section 8.02.  Trust Accounts.

            (a) On or prior to the Closing Date, the Indenture Trustee shall
establish and maintain, in the name of the Indenture Trustee, for the benefit
of the Noteholders and the Certificate Paying Agent, on behalf of the
Certificateholders and the Credit Enhancer, the Payment Account as provided in
Section 3.01 of this Indenture.

            (b) All monies deposited from time to time in the Payment Account
pursuant to the Servicing Agreement and all deposits therein pursuant to this
Indenture are for the benefit of the Noteholders, the Credit Enhancer and the
Certificate Paying Agent, on behalf of the Certificateholders and all
investments made with such monies including all income or other gain from such
investments for the period beginning on and including the Determination Date
to but excluding the [third] Business Day prior to the Payment Date are for
the benefit of the Servicer.

            On each Payment Date, the Indenture Trustee shall distribute all
amounts on deposit in the Payment Account to Noteholders in respect of the
Notes and in its capacity as Certificate Paying Agent to Certificateholders in
the order of priority set forth in Section 3.05 (except as otherwise provided
in Section 5.04(b)).

            For the period beginning on and including the Determination Date
and ending on but excluding the [third] Business Day prior to the Payment Date
the Indenture Trustee shall invest any funds in the Payment Account at the
direction of the Servicer, but only in Permitted Investments, as provided in
Section 5.01 of the Servicing Agreement. Thereafter, the Indenture Trustee may
invest any funds in the Payment Account for its own benefit and at its own
direction, but only in Permitted Investments.

      Section 8.03.  Officer's Certificate. The Indenture Trustee shall
receive at least [seven] days notice when requested by the Issuer to take any
action pursuant to Section 8.05(a), accompanied by copies of any instruments
to be executed, and the Indenture Trustee shall also require, as a condition
to such action, an Officer's Certificate, in form and substance satisfactory
to the Indenture Trustee, stating the legal effect of any such action,
outlining the steps required to complete the same, and concluding that all
conditions precedent to the taking of such action have been complied with.

      Section 8.04.  Mandatory Auction; Termination Upon Distribution to
Noteholders.

            (a) On the [__] Business Day before the Payment Date in [____]
20[__], the Auction Administrator will conduct an auction, using commercially
reasonable standards and procedures, and sell the Home Equity Loans remaining
in the Trust to third party bidders. The Auction Administrator may hire an
agent to conduct the auction or to advise it with respect to the
administration of the auction. If (x) a bid equal to at least the Minimum
Auction Price is

                                      47
<PAGE>

received from a third party bidder or (y) upon its agreement to pay amounts
specified in clause (iii) the Credit Enhancer directs the Auction
Administrator to accept the highest bid received from a third party bidder,
the Auction Administrator shall (i) instruct the Trust to transfer the Home
Equity Loans to such highest bidder, (ii) deliver to the Indenture Trustee the
proceeds of the auction for deposit into the Payment Account, and (iii) if the
remaining Home Equity Loans are sold pursuant to clause (y) above, cause the
Credit Enhancer to deliver the amount of the shortfall between the highest bid
received and the Minimum Auction Price to the Indenture Trustee for deposit
into the Payment Account. If the remaining Home Equity Loans are sold in
accordance with the preceding sentence the Indenture Trustee will pay to
Noteholders the Security Balance on the Payment Date related to the month of
the auction pursuant to Section 3.05(a) hereof. If a bid equal to at least the
Minimum Auction Price is not received and the Credit Enhancer does not direct
the Auction Administrator to accept a lower bid pursuant to clause (y) of the
second preceding sentence, the Auction Administrator will terminate the
auction and the Credit Enhancer will have the option to (i) purchase the
remaining Home Equity Loans at the Minimum Auction Price or (ii) direct the
Auction Administrator to conduct another auction no later than the [third]
Business Day before any Payment Date occurring prior to the Scheduled Final
Payment Date. Thereafter, if the Credit Enhancer exercises its purchase option
described in the preceding sentence or if the Auction Administrator receives
the Minimum Auction Price at a subsequent auction held pursuant to clause (ii)
of the preceding sentence, the Indenture Trustee will pay to Noteholders
pursuant to Section 3.05(a) hereof the Security Balance on the Payment Date
immediately following the sale of the remaining Home Equity Loans in
accordance with the preceding sentence.

            If the Home Equity Loans are not sold at auction to a third party
bidder and the Credit Enhancer does not exercise its option to purchase the
Home Equity Loans prior to the Scheduled Final Payment Date, the Credit
Enhancer will be required, in accordance with the terms of the Credit
Enhancement Instrument, to pay the outstanding Security Balance of the Notes
on the Scheduled Final Payment Date and following such Payment by the Credit
Enhancer, the Credit Enhancer will be the Owner of the Home Equity Loans free
and clear of the Lien of the Indenture, and the Indenture Trustee and the
Issuer will take all responsible steps to transfer all of the Home Equity
Loans to the Credit Enhancer.

            The Issuer hereby appoints the Indenture Trustee as Auction
Administrator to conduct and administer the mandatory auction described in
this Section 8.04(a). The Indenture Trustee hereby accepts such appointment.

            (b) This Indenture and the respective obligations and
responsibilities of the Issuer and the Indenture Trustee created hereby shall
terminate upon the distribution to the Noteholders, the Certificate Paying
Agent (on behalf of the Certificateholders), the Credit Enhancer and the
Indenture Trustee of all amounts required to be distributed pursuant to
Article III.

      Section 8.05.  Release of Trust Estate.

            (a) Subject to the payment of its fees and expenses, the Indenture
Trustee may, and when required by the provisions of this Indenture shall,
execute instruments to release property from the Lien of this Indenture, or
convey the Indenture Trustee's interest in the same,

                                      48
<PAGE>

in a manner and under circumstances that are not inconsistent with the
provisions of this Indenture. No party relying upon an instrument executed by
the Indenture Trustee as provided in Article VIII hereunder shall be bound to
ascertain the Indenture Trustee's authority, inquire into the satisfaction of
any conditions precedent, or see to the application of any monies.

            (b) The Indenture Trustee shall, at such time as (i) there are no
Notes Outstanding, (ii) all sums due the Indenture Trustee pursuant to this
Indenture have been paid, and (iii) all sums due the Credit Enhancer have been
paid, release any remaining portion of the Trust Estate that secured the Notes
from the Lien of this Indenture.

            (c) The Indenture Trustee shall release property from the Lien of
this Indenture pursuant to this Section 8.05 only upon receipt of a request
from the Issuer accompanied by an Officers' Certificate and a letter from the
Credit Enhancer, stating that the Credit Enhancer has no objection to such
request from the Issuer.

            (d) The Indenture Trustee shall, at the request of the Issuer or
the Depositor, surrender the Credit Enhancement Instrument to the Credit
Enhancer for cancellation, upon final payment of principal and interest on the
Notes.

      Section 8.06.  Surrender of Notes Upon Final Payment. By acceptance of
any Note, the Holder thereof agrees to surrender such Note to the Indenture
Trustee promptly, prior to such Noteholder's receipt of the final payment
thereon.

                                  ARTICLE IX.

                            Supplemental Indentures

      Section 9.01.  Supplemental Indentures Without Consent of Noteholders.

            (a) Without the consent of the Holders of any Notes but with prior
notice to the Rating Agencies and with the prior written consent of the Credit
Enhancer, the Issuer and the Indenture Trustee, when authorized by an Issuer
Request, at any time and from time to time, may enter into one or more
indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

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

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

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

                                      49
<PAGE>

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

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

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

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

                  (viii) [Reserved] or

                  (ix) 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;

provided, however, that no such indenture supplements shall be entered into
unless the Indenture Trustee and the Credit Enhancer shall have received an
Opinion of Counsel that entering into such indenture supplement will not have
any material adverse tax consequences to the Issuer or Noteholders.

            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 Request, may, also without the consent of any of the Holders of the
Notes but with prior notice to the Rating Agencies and the consent of the
Credit Enhancer, enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Holders of the Notes under this Indenture; provided,
however, that such action shall not, as evidenced by an Opinion of Counsel,
(i) adversely affect in any material respect the interests of any Noteholder
or the Credit Enhancer or (ii) cause the Issuer to be subject to an entity
level tax.

      Section 9.02.  Supplemental Indentures With Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Request, also
may, with prior notice to the Rating Agencies and with the consent of the
Holders of not less than a majority of the Security Balances of the Notes
affected thereby and the prior written consent of the Credit Enhancer, 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

                                      50
<PAGE>

rights of the Holders of the Notes under this Indenture; provided, however,
that no such supplemental indenture shall, without the consent of the Holder
of each Note affected thereby:

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

                  (ii) reduce the percentage of the Security Balances 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;

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

                  (iv) reduce the percentage of the Security Balances of the
      Notes required to direct the Indenture Trustee to direct the Issuer to
      sell or liquidate the Trust Estate pursuant to Section 5.04;

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

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

                  (vii) permit the creation of any Lien ranking prior to or on
      a parity with the Lien of this Indenture with respect to any part of the
      Trust Estate or, except as otherwise permitted or contemplated herein,
      terminate the Lien of this Indenture on any property at any time subject
      hereto or deprive the Holder of any Note of the security provided by the
      Lien of this Indenture; and provided, further, that such action shall
      not, as evidenced by an Opinion of Counsel addressed to the Indenture
      Trustee and the Credit Enhancer, 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

                                      51
<PAGE>

hereunder. The Indenture Trustee shall not be liable for any such
determination made in good faith.

            It shall not be necessary for any Act of Noteholders (as defined
in Section 10.03) under this Section 9.02 to approve the particular form of
any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

            Promptly after the execution by the Issuer and the Indenture
Trustee of any supplemental indenture pursuant to this Section 9.02, the
Indenture Trustee shall mail to the Holders of the Notes to which such
amendment or supplemental indenture relates a notice setting forth in general
terms the substance of such supplemental indenture. Any failure of the
Indenture Trustee to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

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

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

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

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

                                      52
<PAGE>

                                  ARTICLE X.

                                 Miscellaneous

      Section 10.01. Compliance Certificates and Opinions, etc.

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

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

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

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

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

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

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

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

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

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<PAGE>

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

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

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

      Section 10.03. Acts of Noteholders.

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

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

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

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

      Section 10.04. Notices, etc., to Indenture Trustee, Issuer, Credit
Enhancer and Rating Agencies.  Any request, demand, authorization, direction,
notice, consent, waiver or Act of

                                      54
<PAGE>

Noteholders or other documents provided or permitted by this Indenture shall
be in writing and if such request, demand, authorization, direction, notice,
consent, waiver or Act of Noteholders is to be made upon, given or furnished
to or filed with:

                  (i) the Indenture Trustee by any Noteholder or by the Issuer
      shall be sufficient for every purpose hereunder if made, given,
      furnished or filed in writing to or with the Indenture Trustee at
      [address], Attention: [_____] with a copy to the Indenture Trustee's
      [______]. The Indenture Trustee shall promptly transmit any notice
      received by it from the Noteholders to the Issuer, or

                  (ii) 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:
      [_______], in care of [______], or at any other address previously
      furnished in writing to the Indenture Trustee by the Issuer. The Issuer
      shall promptly transmit any notice received by it from the Noteholders
      to the Indenture Trustee, or

                  (iii) [the Credit Enhancer by the Issuer, the Indenture
      Trustee or by any Noteholders shall be sufficient for every purpose
      hereunder if in writing and mailed, first-class postage pre-paid, or
      personally delivered or telecopied to: [____], [address], Attention:
      [____] Re: [_______],[____], Series [____], Confirmation: [telephone
      number], Telecopy No.: [____]. The Credit Enhancer 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 Issuer,
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: [____], Attention of [____], or as to each
of the foregoing, at such other address as shall be designated by written
notice to the other parties.

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

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

                                      55
<PAGE>

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

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

      Section 10.06. Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the
Issuer may enter into any agreement with any Holder of a Note providing for a
method of payment, or notice by the Indenture Trustee to such Holder, that is
different from the methods provided for in this Indenture for such payments or
notices. The Issuer shall furnish to the Indenture Trustee a copy of each such
agreement and the Indenture Trustee shall cause payments to be made and
notices to be given in accordance with such agreements.

      Section 10.07. 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 ss.ss. 310 through 317 that impose duties on
any Person (including the provisions automatically deemed included herein
unless expressly excluded by this Indenture) are a part of and govern this
Indenture, whether or not physically contained herein.

      Section 10.08. Effect of Headings.  The Article and Section headings
herein are for convenience only and shall not affect the construction hereof.

      Section 10.09. Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee
in this Indenture shall bind its successors, co-trustees and agents.

      Section 10.10. 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 10.11. 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 Credit
Enhancer, and any other party secured hereunder, and any 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 10.12. 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

                                      56
<PAGE>

Indenture) payment need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the date
on which nominally due, and no interest shall accrue for the period from and
after any such nominal date.

      Section 10.13. 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 10.14. 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 10.15. 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 10.16. Issuer 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 each 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 each 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 each in its individual capacity, except as any such Person
may have expressly agreed (it being understood that the Indenture Trustee and
the Owner Trustee have no such obligations in their individual capacity) and
except that any such partner, owner or beneficiary shall be fully liable, to
the extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity. For all purposes of this Indenture, in the performance of any
duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of
Article VI, VII and VIII of the Trust Agreement.

      Section 10.17. 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 Depositor or the Issuer,
or join in any institution against the Depositor or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Notes, this Indenture or any of the Basic Documents.

                                      57
<PAGE>

      Section 10.18. Inspection. The Issuer agrees that, on reasonable prior
notice, it shall permit any representative of the Indenture Trustee or the
Credit Enhancer, 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 or the Credit Enhancer 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 10.19. Rights of the Credit Enhancer to Exercise Rights of
Noteholder. By accepting its Note, each Noteholder agrees that unless a Credit
Enhancer Default exists, the Credit Enhancer shall have the right to exercise
all rights of the Noteholders under this Agreement without any further consent
of the Noteholders. So long as no Credit Enhancer Default exists, the
Noteholders may only exercise such rights with the consent of the Credit
Enhancer.

      Section 10.20. Third-Party Beneficiary. The Credit Enhancer shall be a
third-party beneficiary of this Indenture entitled to enforce the provisions
hereof as if a party hereto.

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<PAGE>

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

                                          [___________________],
                                          as Issuer

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

                                          By: ________________________________
                                             Name:
                                             Title:

                                          [___________________],
                                          as Indenture Trustee

                                          By: ________________________________
                                             Name:
                                             Title:

[___________________], hereby accepts
the appointment as Paying Agent
pursuant to Section 3.03 hereof, as
Note Registrar pursuant to Section 4.02
hereof and as Auction Administrator
pursuant to Section 8.04 hereof.

By:    ________________________________
Name:
Title:

<PAGE>

STATE OF [____]      )
                           ) ss.:
COUNTY OF [____]  )

            On this [__]th day of [____], 20[__], before me personally
appeared [o], to me known, who being by me duly sworn, did depose and say,
that [_]he resides at [____], that [_]he is the [o] of the Owner Trustee, one
of the corporations described in and which executed the above instrument; that
[_]he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by order of the
Board of Directors of said corporation; and that [_]he signed [_] name thereto
by like order.

                                          Notary Public

<PAGE>

STATE OF [_______]      )
                        ) ss.:
COUNTY OF [_______]     )

            On this [__]th day of [___], 20[__], before me personally appeared
[o], to me known, who being by me duly sworn, did depose and say, that [s]he
resides at [___________________], that [_]he is the [o] of
[___________________], as Indenture Trustee, one of the corporations described
in and which executed the above instrument; that [_]he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by order of the Board of Directors of said corporation;
and that [_]he signed [__] name thereto by like order.

                                                      Notary Public

NOTORIAL SEAL

<PAGE>

                                   Exhibit A

                                 FORM OF 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 AND IN THE INDENTURE. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

            THIS NOTE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE
SELLER, THE DEPOSITOR, THE SERVICER, THE INDENTURE TRUSTEE OR THE OWNER
TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY PROVIDED IN
THE INDENTURE OR THE BASIC DOCUMENTS.

                             [___________________]
                                  [________]

Registered                                     Principal Amount:  $[o]

No. _                                          Note Rate:

CUSIP NO. [o]

            [_______], a statutory trust duly organized and existing under the
laws of the State of [state] (herein referred to as the "Issuer"), for value
received, hereby promises to pay to Cede & Co. or registered assigns, the
principal sum of $[o], payable on each Payment Date in an amount equal to the
Percentage Interest specified above of the aggregate amount, if any, payable
from the Payment Account in respect of principal on the Notes pursuant to
Section 3.05 of the Indenture dated as of [_____], 20[__] (the "Indenture")
between the Issuer, as Issuer, and [___________________], as Indenture Trustee
(the "Indenture Trustee"); provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the Payment Date in [____]
20[__], to the extent not previously paid on a prior Payment Date. Capitalized
terms used but not defined herein are defined in Appendix A of the Indenture.

            Interest on the Notes will be paid monthly on each Payment Date at
the Note Rate for the related Interest Period subject to limitations which may
result in Interest Shortfalls (as

                                  Exhibit A-1
<PAGE>

further described in the Indenture). The Note Rate for each Interest Period
will be a floating rate equal to the lesser of (i) LIBOR plus [__]% per annum
(or [__]% on or after the Optional Redemption Date) and (ii) the Maximum Net
Loan Rate. LIBOR for each applicable Interest Period will be determined on the
second LIBOR Business Day immediately preceding (i) the Closing Date in the
case of the first Interest Period and (ii) the first day of each succeeding
Interest Period by the Indenture Trustee as set forth in the Indenture. All
determinations of LIBOR by the Indenture Trustee shall, in the absence of
manifest error, be conclusive for all purposes, and each holder of this Note,
by accepting this Note, agrees to be bound by such determination. Interest on
this Note will accrue for each Payment Date from the most recent Payment Date
on which interest has been paid (in the case of the first Payment Date, from
the Closing Date) to but excluding such Payment Date. Interest will be
computed on the basis of the actual number of days in each Interest Period and
a year assumed to consist of 360 days. Principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

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

            Unless the certificate of authentication hereon has been executed
by the Note Registrar 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.

            This Note is one of a duly authorized issue of Notes of the
Issuer, designated as its Asset-Backed Notes (herein called the "Notes"), 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 Issuer, the Indenture Trustee and the holders of
the Notes. The Notes are subject to all terms of the Indenture.

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

            This Note is entitled to the benefits of an irrevocable and
unconditional financial guaranty insurance policy issued by [______].

            Principal of and interest on this Note will be payable on each
Payment Date, commencing on [____], 20[__], as described in the Indenture.
"Payment Date" means the [_] day of each month, or, if any such date is not a
Business Day, then the next Business Day.

            The entire unpaid principal amount of this Note shall be due and
payable in full on the Payment Date in [___] 20[__] pursuant to the Indenture,
to the extent not previously paid on a prior Payment Date. Notwithstanding the
foregoing, if an Event of Default shall have occurred and be continuing, then
the Indenture Trustee or the holders of Notes representing not less than a
majority of the Security Balances of all Notes with the consent of the Credit
Enhancer, or the Credit Enhancer may declare the Notes to be immediately due
and payable in

                                  Exhibit A-2
<PAGE>

the manner provided in Section 5.02 of the Indenture. All principal payments
on the Notes shall be made pro rata to the holders of Notes entitled thereto.

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

            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
Corporate Trust Office, 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 in 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 Note Registrar shall require
payment of a sum sufficient to cover any tax or governmental charge that may
be imposed in connection with any registration of transfer or exchange of this
Note.

            Each holder or Beneficial Owner of a Note, by acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial interest
in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee,
the Seller, the Servicer, the Depositor or the Indenture Trustee on the Notes
or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee
in its individual capacity, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or

                                  Exhibit A-3
<PAGE>

employee of the Indenture Trustee or the Owner Trustee in its individual
capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee
or the Indenture Trustee or of any successor or assign of the Indenture
Trustee or the Owner Trustee in 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.

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

            Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Note is registered
(as of the day of determination or as of such other date as may be specified
in the Indenture) as the owner hereof for all purposes, whether or not this
Note be overdue, and none of the Issuer, the Indenture Trustee or any such
agent shall be affected by notice to the contrary.

            The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the Indenture Trustee and the rights of the
holders of the Notes under the Indenture at any time by the Issuer and the
Indenture Trustee with the consent of the holders of Notes representing a
majority of the Security Balances of all Notes at the time Outstanding and the
Credit Enhancer and with prior notice to the Rating Agencies. The Indenture
also contains provisions permitting the holders of Notes representing
specified percentages of the Security Balances of all Notes, on behalf of the
holders of all the Notes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the holder of this Note (or
any one of 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 Issuer and 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 but with prior notice to the Rating
Agencies and the Credit Enhancer.

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

            The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate, subject to the rights of the Indenture
Trustee and the holders of Notes 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.

                                  Exhibit A-4
<PAGE>

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

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

            Anything herein to the contrary notwithstanding, except as
expressly provided in the Basic Documents, none of [______] in its individual
capacity, [___________________], in its individual capacity, any owner of a
beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of or interest on this Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The holder of this Note by its acceptance hereof
agrees that, except as expressly provided in the Basic Documents, in the case
of an Event of Default under the Indenture, the holder shall have no claim
against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in
this Note.

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

                                  Exhibit A-5
<PAGE>

            IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and
not in its individual capacity, has caused this Note to be duly executed.

                                       [___________________]

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

                                       Dated:

                                       By ____________________________________
                                          Authorized Signatory

                         CERTIFICATE OF AUTHENTICATION

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

                                       [___________________], not in its
                                       individual capacity but solely as Note
                                       Registrar

                                       Dated:

                                       By ____________________________________
                                          Authorized Signatory

                                  Exhibit A-6
<PAGE>

                                  ASSIGNMENT

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

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfer 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.

                                  Exhibit A-7

                                  APPENDIX A

                                  DEFINITIONS

            Accelerated Principal Payment Amount: With respect to any Payment
Date, payment to Noteholders pursuant to Section 3.05(a)(viii) of the
Indenture in an amount equal to the Overcollateralization Deficit.

            Act:  As defined in Section 10.03 of the Indenture.

            Additional Balance: With respect to any Revolving Credit Loan, any
future Draw made by the related Mortgagor pursuant to the related Loan
Agreement after the Cut-off Date.

            Additional Balance Contributed Amount: As to any Payment Date, the
difference, if any, between (a) (1) during the Managed Amortization Period,
the aggregate excess, if any, for all prior Payment Dates of (i) the aggregate
principal amount of all Additional Balances created during the Collection
Period relating to each such Payment Date over (ii) Principal Collections
relating to such Payment Date with respect to the Revolving Credit Loans, and
(2) during the Rapid Amortization Period, the aggregate principal amount of
all Additional Balances created during the Collection Period relating to each
such Payment Date, and (b) the aggregate Additional Balance Contributed
Amounts paid to the Holders of the Class L Certificates on all prior Payment
Dates pursuant to Section 3.05(a) of the Indenture.

            Adjustable-Rate   Mortgage   Loan:   Any  Mortgage  Loan  with  an
adjustable Loan Rate.

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

            Aggregate Security Balance: With respect to any date of
determination, the aggregate of the Security Balances of all Securities as of
such date.

            Appraised Value: With respect to any Mortgaged Property, the
appraised value of the related Mortgaged Property determined in the appraisal
or automated property valuation used in the origination of such Home Equity
Loan.

            Assignment of Mortgage: With respect to any Mortgage, an
assignment, notice of transfer or equivalent instrument, in recordable form,
sufficient under the laws of the jurisdiction in which the related Mortgaged
Property is located to reflect the conveyance of the Mortgage, which
assignment, notice of transfer or equivalent instrument may be in the form of
one or more blanket assignments covering the Home Equity Loans secured by
Mortgaged Properties located in the same jurisdiction.

            Auction Administrator: The Indenture Trustee, in its capacity as
Auction Administrator, appointed pursuant to Section 8.04 of the Indenture.

<PAGE>

            Auction Payment Date: The Payment Date following any auction held
pursuant to Section 8.04 of the Indenture.

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

            Authorized Officer: With respect to the Issuer, any officer of the
Servicer or 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).

            Bankruptcy  Code: The Bankruptcy  Code of 1978 (11 U.S.C. ss.ss.101
et seq.), as amended.

            Basic Documents: The Trust Agreement, the Indenture, the Home
Equity Loan Purchase Agreement, [the Insurance and Indemnity Agreement,
Indemnification Agreement, the Credit Enhancement Instrument,] the Servicing
Agreement (including any Transfer Document related thereto), the Custodial
Agreement and the other documents and certificates delivered in connection
with any of the above.

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

            Billing Cycle: With respect to any Revolving Credit Loan and Due
Date, the period from the preceding Due Date through the day immediately prior
to such Due Date.

            Book-Entry Notes: Beneficial interests in the Notes, ownership and
transfers of which shall be made through book entries by the Depository as
described in Section 4.06 of the Indenture.

            Business Day: Any day other than (i) a Saturday or a Sunday or
(ii) a day on which banking institutions in the States of New York or Delaware
are required or authorized by law to be closed.

            Calculated Loan Balance: With respect to the Revolving Credit
Loans and a Collection Period, the sum of the product of (a) 12 times the
actual interest collected with respect to each Revolving Credit Loan during
such Collection Period and (b) the ratio of one over the applicable Loan Rate
on the last day of such Collection Period for each Revolving Credit Loan for
such Collection Period.

            Certificate Distribution Account: The account or accounts created
and maintained by the Certificate Paying Agent pursuant to Section 3.09(c) of
the Trust Agreement. The Certificate Paying Agent will make all distributions
on the Certificates from money on deposit in the Certificate Distribution
Account.

                                      2
<PAGE>

            Certificate Distribution Amount: For any Payment Date, the amount
remaining in the Payment Account following distributions pursuant to clauses
(i) through (xi) of Section 3.05(a) of the Indenture.

            Certificate   Paying  Agent:  The  meaning  specified  in  Section
3.09(a) of the Trust Agreement.

            Certificate Percentage Interest: With respect to any Payment Date,
the Certificate Percentage Interest as stated on the face of such Certificate,
which percentage may be recalculated in accordance with Section 3.03 of the
Trust Agreement.

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

            Certificate  Registrar:  Initially,  the Indenture Trustee, in its
capacity as Certificate Registrar.

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

            Certificateholder: The Person in whose name a Certificate is
registered in the Certificate Register except that, any Certificate registered
in the name of the Issuer, the Owner Trustee or the Indenture Trustee or any
Affiliate of any of them shall be deemed not to be outstanding and the
registered holder will not be considered a Certificateholder or a holder for
purposes of giving any request, demand, authorization, direction, notice,
consent or waiver under the Indenture or the Trust Agreement provided that, in
determining whether the Indenture Trustee or the Owner Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Certificates that the Indenture Trustee or the
Owner Trustee knows to be so owned shall be so disregarded. Owners of
Certificates that have been pledged in good faith may be regarded as Holders
if the pledgee establishes to the satisfaction of the Indenture Trustee or the
Owner Trustee, as the case may be, the pledgee's right so to act with respect
to such Certificates and that the pledgee is not the Issuer, any other obligor
upon the Certificates or any Affiliate of any of the foregoing Persons.

            Certificates:  The Class O Certificates  or Class L  Certificates,
as applicable.

            Certification  Party:  shall have the meaning set forth in Section
9.07 of the Servicing Agreement.

            Certifying  Person:  shall have the  meaning  set forth in Section
9.07 of the Servicing Agreement.

            Change of Ownership: Any consolidation or merger of, or any sale
or transfer of all or substantially all of the property or assets of any
direct owner, any indirect owner, any successor direct owner or any successor
indirect owner of the Servicer where such consolidation, merger, sale or
transfer, results in a successor and surviving entity thereof having (i) a

                                      3
<PAGE>

Controlling Interest in the Servicer and (ii) a long-term, unsecured debt
rating below "BBB-" from S&P and "Baa2" from Moody's.

            Class L Certificates: The Class L Certificates in substantially
the form set forth in Exhibit A-1 to the Trust Agreement.

            Class O Certificates: The Class O Certificates in substantially
the form set forth in Exhibit A-2 to the Trust Agreement.

            Class Principal Balance: With respect to the Class L Certificates
and any Payment Date, the Additional Balance Contributed Amount less the sum
of (i) aggregate Realized Loss Allocated Amount for all prior Payment Dates
and (ii) distributions to Class L Certificates pursuant to Section 5.01 of the
Trust Agreement representing principal payments on the Revolving Credit Loans.

            With respect to the Class O Certificates and any Payment Date, an
amount equal to the excess of the Pool Balance on the last day of the related
Collection Period (after taking into account all Principal Collections for
such Payment Date) over the sum of (a) the aggregate Security Balance of the
Notes on such Payment Date (after taking into account any reductions to such
aggregate Security Balance resulting from payments made pursuant to clauses
(iv) and (vii) of Section 3.05(a) of the Indenture on such Payment Date) and
(b) the Class Principal Balance of the Class L Certificates immediately prior
to such Payment Date.

            Closing Date:  [                       ], 20[    ].

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

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

            Collection Account: The account or accounts created and maintained
by the Servicer pursuant to Section 3.02(b) of the Servicing Agreement, in
which the Servicer shall deposit or cause to be deposited certain amounts in
respect of the Home Equity Loans.

            Collection Period: With respect to any Home Equity Loan and any
Payment Date the calendar month preceding any such Payment Date.

            Combined Loan-to-Value Ratio or CLTV: With respect to each first
Lien Home Equity Loan, the ratio, expressed as a percentage, of (A) the Credit
Limit, in the case of the Revolving Credit Loans and the Loan Balance at
origination, in the case of the Mortgage Loans, to (B) (i) with respect to
those first lien Home Equity Loans for which the proceeds were used to
purchase the related mortgaged property, the lesser of the Appraised Value and
the purchase price and (ii) with respect to all other first lien Home Equity
Loans, the Appraised Value. With respect to each second Lien Home Equity Loan,
the Combined Loan-to-Value Ratio or CLTV generally will be the ratio,
expressed as a percentage, of (A) the sum of (i) the Credit Limit, in the case
of the Revolving Credit Loans and the Loan Balance at origination, in the case
of the Mortgage Loans, and (ii) any outstanding principal balance, at the time
of origination of such Home Equity Loan, of all other mortgage loans, if any,
secured by senior Liens on the related

                                      4
<PAGE>

Mortgaged Property, to (B) (i) with respect to those second Lien Home Equity
Loans for which the proceeds were used to purchase the related Mortgaged
Property, the lesser of the Appraised Value and the purchase price, and (ii)
with respect to all other second Lien Home Equity Loans, the Appraised Value.

            Commission:  The United States Securities and Exchange Commission.

            Controlling Interest: The ability to control in any manner the
election of a majority of the directors of the Servicer or the ability to
directly or indirectly exercise controlling influence over the management or
policies of the Servicer by ownership of voting securities, by contract or
otherwise.

            Corporate Trust Office: With respect to the Indenture Trustee,
Note Registrar, Certificate Registrar, Certificate Paying Agent, Paying Agent
and Auction Administrator, the principal corporate trust office at which at
any particular time its corporate trust business shall be administered, which
office at the date of the execution of this instrument is located at [_______],
Attention: [________]. With respect to the Owner Trustee, the principal
corporate trust office of the Owner Trustee at which at any particular time
its corporate trust business shall be administered, which office at the date
of the execution of this Trust Agreement is located at [________], Attention:
[________].

            Credit Enhancement Draw Amount: With respect to any Payment Date,
an amount, if any, equal to the sum of (x) the amount by which accrued and
unpaid interest on the Notes, at the Note Rate on such Payment Date (exclusive
of any Interest Shortfalls or any shortfalls caused by prepayments of Mortgage
Loans and application of the Relief Act) exceeds the amount on deposit in the
Payment Account available for interest distributions on such Payment Date and,
(y) the Guaranteed Principal Distribution Amount.

            Credit Enhancement Instrument: The Financial Guaranty Insurance
Policy number [ ], dated as of the Closing Date, issued by the Credit Enhancer
to the Indenture Trustee on behalf of and for the benefit of the Noteholders.

            Credit Enhancer: [________], a [________]-domiciled stock
insurance  corporation,  and  any successor thereto.

            Credit  Enhancer  Default:  If the Credit Enhancer fails to make a
payment  required under the Credit  Enhancement  Instrument in accordance with
its terms.

            Credit  Enhancer  Premium  Rate:  The rate at which the Premium is
calculated as set forth in the Premium Letter.

            Credit  Limit:  With respect to any  Revolving  Credit  Loan,  the
maximum Loan Balance permitted under the terms of the related Loan Agreement.

            Credit Limit Utilization Rate: With respect to any Revolving
Credit Loan and date of determination, the fraction expressed as a percentage,
the numerator of which is the Loan Balance of such Revolving Credit Loan on
that date and the denominator of which is the Credit Limit for such Revolving
Credit Loan.

                                      5
<PAGE>

            Credit Line Agreement or Mortgage Note: With respect to a Home
Equity Loan, the Loan Agreement pursuant to which the related Mortgagor agrees
to pay the indebtedness evidenced thereby and secured by the related Mortgage
as modified or amended.

            Credit Score: With respect to any Home Equity Loan, the numerical
designation obtained from credit reports provided by any credit reporting
organization used to assess a borrower's credit-worthiness and the relative
degree of risk a borrower represents to a lender.

            Custodial Agreement: The Custodial Agreement dated as of [_______],
20[__] among the Custodian, the Indenture Trustee and the Servicer
relating to the custody of the Home Equity Loans and the Related Documents.

            Custodian: [________], a national banking association, and its
successors and assigns.

            Cut-off Date:  [________], 20[__].

            Cut-off Date Loan Balance: With respect to any Home Equity Loan,
the unpaid principal balance thereof as of the close of business on the last
day immediately prior to the Cut-off Date.

            Cut-off  Date  Pool  Balance:  The  aggregate  Cut-off  Date  Loan
Balance of  the  Home Equity Loans which on  the Closing  Date is $[________].

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

            Deficiency  Amount:  The  meaning  ascribed  to  such  term in the
Credit Enhancement Instrument.

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

            Deleted  Loan: A Home Equity Loan  replaced or to be replaced with
an Eligible Substitute Loan.

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

            Depositor:   Morgan   Stanley  ABS  Capital  I  Inc.,  a  Delaware
corporation, or its successor in interest.

            Depository or Depository Agency: The Depository Trust Company or a
successor appointed by the Indenture Trustee with the approval of the
Depositor. Any successor to the Depository shall be an organization registered
as a "clearing agency" pursuant to Section 17A of the Exchange Act and the
regulations of the Securities and Exchange Commission thereunder.

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

                                      6
<PAGE>

            Determination Date: With respect to any Payment Date, the
[_____]th day of the month in which such Payment Date occurs or if such day is
not a Business Day, the next preceding Business Day.

            Draw: With respect to any Revolving Credit Loan, a borrowing by
the Mortgagor under the related Loan Agreement.

            Draw Period: With respect to each Revolving Credit Loan, the
period consisting of nine years and eleven months after the date of
origination of such Revolving Credit Loan, during which the related Mortgagor
is permitted to make Draws.

            Due Date: With respect to the Home Equity Loans, the date on which
payments thereunder are due, as specified in the related Credit Line Agreement
or Mortgage Note.

            Eligible Account: An account that is any of the following: (i)
maintained with a depository institution the short-term debt obligations of
which have been rated by each Rating Agency in its highest rating category
available, or (ii) an account or accounts in a depository institution in which
such accounts are fully insured to the limits established by the FDIC,
provided that any deposits not so insured shall, to the extent acceptable to
each Rating Agency, as evidenced in writing, be maintained such that (as
evidenced by an Opinion of Counsel delivered to the Indenture Trustee, the
Credit Enhancer and each Rating Agency) the Indenture Trustee have a claim
with respect to the funds in such account or a perfected first security
interest against any collateral (which shall be limited to Permitted
Investments) securing such funds that is superior to claims of any other
depositors or creditors of the depository institution with which such account
is maintained, or (iii) in the case of the Collection Account, either (A) a
trust account or accounts maintained at the corporate trust department of the
Indenture Trustee or (B) an account or accounts maintained at a depository
institution for which the short term debt obligations are rated "P-1" by
Moody's and "A-1+" by Standard & Poor's (or the equivalent) or better by each
Rating Agency and its long term debt obligations are rated "A2" by Moody's and
"AA-" by Standard & Poor's (or the equivalent) or better by each Rating
Agency, or (iv) in the case of the Collection Account, the Certificate
Distribution Account and the Payment Account, a trust account or accounts
maintained in the corporate trust division of the Indenture Trustee, or (v) an
account or accounts of a depository institution acceptable to each Rating
Agency and the Credit Enhancer (as evidenced in writing by each Rating Agency
that use of any such account as the Collection Account or the Payment Account
will not reduce the rating assigned to any of the Securities by such Rating
Agency (if determined without regard to the Credit Enhancement Instrument)
below the lower of the then-current rating or the rating assigned to such
Securities (if determined without regard to the Credit Enhancement Instrument)
as of the Closing Date by such Rating Agency).

            Eligible Substitute Loan: A Home Equity Loan substituted by the
Seller for a Deleted Loan which must, on the date of such substitution, as
confirmed in an Officer's Certificate delivered to the Indenture Trustee, (i)
have an outstanding Loan Balance, after deduction of the principal portion of
the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Home Equity Loan for a Deleted Loan, an
aggregate outstanding Loan Balance, after such deduction), not in excess of
the outstanding Loan Balance of the Deleted Loan (the amount of any shortfall
to be deposited by the Seller in the Collection

                                      7
<PAGE>

Account in the month of substitution); (i) comply with each representation and
warranty set forth in Section [_____] of the Home Equity Loan Purchase
Agreement as of the date of substitution; (iii) have a Loan Rate, Net Loan
Rate and Gross Margin no lower than and not more than 1% per annum higher than
the Loan Rate, Net Loan Rate and Gross Margin, respectively, of the Deleted
Loan as of the date of substitution; (iv) have a Combined Loan-to-Value Ratio
at the time of substitution no higher than that of the Deleted Loan at the
time of substitution; (v) have a remaining term to stated maturity not greater
than (and not more than one year less than) that of the Deleted Loan, (vi) not
be 30 days or more delinquent, (vii) have the same lien status as the Deleted
Loan, (viii) have a Credit Score no more than 10 points lower than the Credit
Score of the Deleted Loan and (ix) if the Deleted Loan is a Revolving Credit
Loan, shall also be a revolving credit loan and if the Deleted Loan is a
Mortgage Loan, shall also be a closed end Mortgage Loan and, if such Deleted
Loan is a Adjustable-Rate Mortgage Loan, have the same Index as the Deleted
Loan.

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

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

            (i) a default in the payment of any interest on any Note when the
      same becomes due and payable, and such default shall continue for a
      period of [five] days; or

            (ii) a default 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 shall continue for a period of five days; or

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

            (iv) there occurs the filing of a decree or order for relief by a
      court having jurisdiction in the premises in respect of the Issuer or
      any substantial part of the Trust Estate in an involuntary case under
      any applicable federal or state bankruptcy, insolvency or other similar
      law now or hereafter in effect, or appointing a receiver, liquidator,
      assignee, custodian, trustee, sequestrator or similar official of the
      Issuer or for any

                                      8
<PAGE>

      substantial part of the Trust Estate, or ordering the winding-up or
      liquidation of the Issuer's affairs, and such decree or order shall
      remain unstayed and in effect for a period of 60 consecutive days; or

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

            Event of Liquidation: Following the occurrence of an Event of
Default under the Indenture, the determination by the Indenture Trustee, as
evidenced by a written notice provided to the Owner Trustee, the Depositor and
the Credit Enhancer, that all conditions precedent to the sale or other
liquidation of the Trust Estate pursuant to Section 5.04 of the Indenture have
been satisfied.

            Event of Servicer Termination: With respect to the Servicing
Agreement, a Servicing Default as defined in Section 7.01 of the Servicing
Agreement.

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

            Exchange Act Reports: shall mean any reports on Form 10-D, Form
8-K and Form 10-K required to be filed by the Depositor with respect to the
Issuer under the Exchange Act.

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

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

            FHLMC:  The  Federal  Home  Loan  Mortgage  Corporation,   or  any
successor thereto.

            Final  Scheduled Payment Date:  The Payment Date in [        ],
20[ ].

            Fiscal  Agent:  The meaning  specified for such term in the Credit
Enhancement Instrument.

            FNMA:  The  Federal   National   Mortgage   Association,   or  any
successor thereto.

            Foreclosure Profit: With respect to a Liquidated Home Equity Loan,
the amount, if any, by which (i) the aggregate of Liquidation Proceeds net of
Liquidation Expenses and other unreimbursed advances and expenses exceeds (ii)
the related Loan Balance (plus accrued and unpaid interest thereon at the
applicable Loan Rate from the date interest was last paid through

                                      9
<PAGE>

the date of receipt of the final Liquidation Proceeds) of such Liquidated Home
Equity Loan immediately prior to the final recovery of its Liquidation
Proceeds.

            Form 10-D Disclosure Item: shall mean with respect to any Person,
any litigation or governmental proceedings pending against such Person, or any
of the Issuer, the Depositor, the Indenture Trustee, the Owner Trustee or the
Servicer if such Person or in the case of the Owner Trustee or Indenture
Trustee, a Responsible Officer of such Person, has actual knowledge thereof,
in each case that would be material to the noteholders.

            Form 10-K Disclosure Item: shall mean with respect to any Person,
(a) any Form 10-D Disclosure Item and (b) any affiliations or relationships
between such Person and any Item 1119 Party to the extent a Responsible
Officer of such Person (in the case of the Indenture Trustee and the Owner
Trustee) has actual knowledge thereof.

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

            Gross Margin: With respect to any Revolving Credit Loan or any
Adjustable-Rate Mortgage Loan, the percentage set forth as the "Margin" for
such Home Equity Loan on the Home Equity Loan Schedule.

            Guaranteed Principal Distribution Amount: With respect to any
Payment Date (other than the Payment Date in [ ], 20[ ]), the amount, if any,
by which the Security Balance of the Notes (after giving effect to all other
amounts paid and allocated to principal on the Notes) exceeds the Investor
Amount as of such Payment Date (after giving effect to all other amounts paid
and allocated as principal on the Notes). With respect to the Payment Date in
[ ], 20[ ] (after giving effect to all other amounts paid and allocated as
principal on the Notes), any amount necessary to pay in full the outstanding
Security Balance of the Notes on such Payment Date.

            Holder:  Any of the Noteholders or Certificateholders.

            Home Equity  Loan:  Either a  Revolving  Credit Loan or a Mortgage
Loan.

            Home Equity Loan Purchase Agreement: The Home Equity Loan Purchase
Agreement, dated as of [__________], 20[__], between the Seller, as seller,
and the Depositor, as purchaser, with respect to the Home Equity Loans.

                                      10
<PAGE>

            Home Equity Loan Schedule: The initial schedule of Home Equity
Loans as of the Cut-off Date set forth in Exhibit A of the Servicing
Agreement, which schedule sets forth as to each Home Equity Loan (i) the
Cut-off Date Loan Balance ("Loan Balance"), (ii) with respect to any Revolving
Credit Loan, the Credit Limit, (iii) with respect to any Revolving Credit Loan
and any Adjustable-Rate Mortgage Loan, the Gross Margin ("Margin"), (iv) the
name of the Mortgagor, (v) with respect to any Revolving Credit Loan and any
Adjustable-Rate Mortgage Loan, the Maximum Rate ("Ceiling"), if any, (vi) the
loan number, (vii) the lien position of the related Mortgage, (viii) the CLTV,
(ix) the remaining term to maturity, (x) maturity date, (xi) with respect to
any Revolving Credit Loan, the Credit Limit Utilization Rate, (xii) the Junior
Ratio, and (xiii) whether such Home Equity Loan has an original policy of
title insurance or an ownership report in its Mortgage File.

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

            Indenture:  The indenture  dated as of  [                       ],
20[    ]  between  the  Issuer,  as  debtor,  and the  Indenture  Trustee,  as
indenture trustee.

            Indenture Trustee:  [                       ],  and its successors
and  assigns or any  successor  indenture  trustee  appointed  pursuant to the
terms of the Indenture.

            Independent: When used with respect to any specified Person, the
Person (i) is in fact independent of the Issuer, any other obligor on the
Notes, the Seller, the Depositor and any Affiliate of any of the foregoing
Persons, (ii) does not have any direct financial interest or any material
indirect financial interest in the Issuer, any such other obligor, the Seller,
the Depositor or any Affiliate of any of the foregoing Persons and (iii) is
not connected with the Issuer, any such other obligor, the Seller, the
Depositor or any Affiliate of any of the foregoing Persons as an officer,
employee, promoter, underwriter, trustee, partner, director or person
performing similar functions.

            Independent Certificate: A certificate or opinion to be delivered
to the Indenture Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 10.01 of the Indenture,
made by an Independent appraiser or other expert appointed by an Issuer 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.

            Index: With respect to any Revolving Credit Loan, the prime rate
from time to time for the adjustment of the Loan Rate set forth as such on the
related Credit Line Agreement. With respect to any Adjustable-Rate Mortgage
Loan, either [One-Month LIBOR or Six-Month LIBOR] as specified in the related
Mortgage Note from time to time for the adjustment of the Loan Rate.

            Initial  Security  Balance:  With  respect  to  the  Certificates,
$0.00 and the Notes, $[                       ].

            Insolvency Event: With respect to a specified Person, (a) the
filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of such Person or any

                                      11
<PAGE>

substantial part of its property in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
or similar official for such Person or for any substantial part of its
property, or ordering the winding-up or liquidation of such Person's affairs,
and such decree or order shall remain unstayed and in effect for a period of
60 consecutive days; or (b) the commencement by such Person of a voluntary
case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or the consent by such Person to the entry of an order
for relief in an involuntary case under any such law, or the consent by such
Person to the appointment of or taking possession by a receiver, liquidator,
assignee, custodian, trustee, sequestrator or similar official for such Person
or for any substantial part of its property, or the making by such Person of
any general assignment for the benefit of creditors, or the failure by such
Person generally to pay its debts as such debts become due or the admission by
such Person in writing (as to which the Indenture Trustee shall have notice)
of its inability to pay its debts generally, or the adoption by the Board of
Directors or managing member of such Person of a resolution which authorizes
action by such Person in furtherance of any of the foregoing.

            Insurance and Indemnity Agreement: The Insurance and Indemnity
Agreement dated as of [ ], 20[ ] among the Servicer, the Seller, the
Depositor, the Issuer, the Indenture Trustee and the Credit Enhancer,
including any amendments and supplements thereto.

            Insurance Proceeds: Proceeds paid by any insurer (other than the
Credit Enhancer) pursuant to any insurance policy covering a Home Equity Loan
which are required to be remitted to the Servicer, or amounts required to be
paid by the Servicer pursuant to the next to last sentence of Section 3.04 of
the Servicing Agreement, net of any component thereof (i) covering any
expenses incurred by or on behalf of the Servicer in connection with obtaining
such proceeds, (ii) that is applied to the restoration or repair of the
related Mortgaged Property, (iii) released to the Mortgagor in accordance with
the Servicer's normal servicing procedures or (iv) required to be paid to any
holder of a mortgage senior to such Home Equity Loan.

            Insured Amount: The meaning ascribed to such term in the Credit
Enhancement Instrument.

            Insured  Payments:  The  meaning  ascribed  to  such  term  in the
Credit Enhancement Instrument.

            Interest Collections: With respect to any Payment Date, the sum of
all payments by or on behalf of Mortgagors and any other amounts constituting
interest (including without limitation such portion of Insurance Proceeds, Net
Liquidation Proceeds and Repurchase Prices as is allocable to interest on the
applicable Home Equity Loan) as is paid by the Seller or the Servicer or is
collected by the Servicer under the Home Equity Loans, reduced by the
Servicing Fees for the related Collection Period and by any fees (including
annual fees) or late charges or similar administrative fees paid by Mortgagors
during the related Collection Period. The terms of the related Loan Agreement
shall determine the portion of each payment in respect of such Home Equity
Loan that constitutes principal or interest.

            Interest Period: With respect to any Payment Date other than the
first Payment Date, the period beginning on the preceding Payment Date and
ending on the day preceding such

                                      12
<PAGE>

Payment Date, and in the case of the first Payment Date, the period beginning
on the Closing Date and ending on the day preceding the first Payment Date.

            Interest Rate Adjustment Date: With respect to each Revolving
Credit Loan and each Adjustable-Rate Mortgage, the date or dates on which the
Loan Rate is adjusted in accordance with the related Credit Line Agreement.

            Interest Shortfall: With respect to the Notes, on any Payment Date
an amount by which interest that would have accrued on the Notes during the
related Interest Period without regard to clause (ii) of the definition of
Note Rate exceeds an amount equal to the product of (A) the ratio of the
actual number of days in the related Interest Period to 360, multiplied by (B)
the product of (a) the Security Balance of the Notes for that Payment Date
(before taking into account payments to be made on such Payment Date)
multiplied by (b) the Net Loan Rate Cap. Interest Shortfalls will not be
included as interest payments on the Notes for such Payment Date and such
amount will accrue interest at the Note Rate (as adjusted from time to time)
and will be paid on future Payment Dates only to the extent funds are
available therefor as set forth in Section 3.05(a) of the Indenture.

            Investor Amount: With respect to any Payment Date, the amount
equal to the Original Investor Amount minus (i) the amount of Principal
Collections previously paid to the Noteholders and minus (ii) an amount equal
to the product of the Investor Floating Allocation Percentage and all
Liquidation Loss Amounts for the Home Equity Loans prior to such Payment Date.

            Investor Floating Allocation Percentage: With respect to any
Payment Date, the percentage equivalent of a fraction, the numerator of which
is the Investor Revolving Amount as of the end of the immediately preceding
Payment Date and the denominator of which is the sum of the aggregate
Principal Balance of the Revolving Credit Loans at the beginning of the
related Collection Period.

            Investor Liquidation Loss Amounts: With respect to any Payment
Date, the sum of (1) the product of the Investor Floating Allocation
Percentage and the aggregate of Liquidation Loss Amounts for the Revolving
Credit Loans and (2) the aggregate of Liquidation Loss Amounts for the
Mortgage Loans for the related Collection Period.

            Investor P&I Collections: With respect to (i) any Payment Date
during the Managed Amortization Period, the sum of (a) the product of the
Investor Floating Allocation Percentage and Interest Collections on the
Revolving Credit Loans, each for such Payment Date, and (b) the Interest
Collections on the Mortgage Loans for such Payment Date, (c) the product of
the Investor Floating Allocation Percentage and Net Principal Collections on
the Revolving Credit Loans, each for such Payment Date and (d) the Principal
Collections on the Mortgage Loans, each for such Payment Date and (ii) any
Payment Date during the Rapid Amortization Period, the sum of (a) the product
of the Investor Floating Allocation Percentage and Interest Collections for
the Revolving Credit Loans, each for such Payment Date, (b) the Interest
Collections on the Mortgage Loans for such Payment Date and (c) Principal
Collections for such Payment Date.

                                      13
<PAGE>

            Investor Revolving Amount: With respect to any Payment Date
following the Closing Date, an amount equal to the Original Investor Revolving
Amount minus the excess of (A) the sum of (i) the aggregate Principal
Collection Distribution Amount for all prior Payment Dates and (ii) any
Investor Liquidation Loss Amounts for all prior Payment Dates over (B) the sum
of (i) the aggregate Principal Collections on the Mortgage Loans for all prior
Payment Dates and (ii) the aggregate Liquidation Loss Amounts for the Mortgage
Loans for all prior Payment Dates.

            Issuer or Trust: The [ ] Trust 20[ ]-[ ], a [Delaware statutory]
trust, or its successor in interest.

            Issuer Request: A written order or request signed in the name of
the Issuer by any one of its Authorized Officers and delivered to the
Indenture Trustee.

            Item 1119 Party: shall mean the Depositor, the Seller, the
Servicer, the Indenture Trustee, the Owner Trustee and any other material
transaction party, as identified in Appendix D to the Servicing Agreement.

            LIBOR Business Day: Any day other than (i) a Saturday or a Sunday
or (ii) a day on which banking institutions in the city of [London, England
or] New York City are required or authorized by law to be closed.

            Lien: Any mortgage, deed of trust, pledge, conveyance,
hypothecation, assignment, participation, deposit arrangement, encumbrance,
lien (statutory or other), preference, priority right or interest or other
security agreement or preferential arrangement of any kind or nature
whatsoever, including, without limitation, any conditional sale or other title
retention agreement, any financing lease having substantially the same
economic effect as any of the foregoing and the filing of any financing
statement under the UCC (other than any such financing statement filed for
informational purposes only) or comparable law of any jurisdiction to evidence
any of the foregoing; provided, however, that any assignment pursuant to
Section 6.02 of the Servicing Agreement shall not be deemed to constitute a
Lien.

            Liquidated Home Equity Loan: With respect to any Payment Date, any
Home Equity Loan in respect of which the Servicer has determined, in
accordance with the servicing procedures specified in the Servicing Agreement,
as of the end of the related Collection Period that all Liquidation Proceeds
which it reasonably expects to recover, if any, with respect to the
disposition of the related REO have been recovered.

            Liquidation Expenses: Out-of-pocket expenses (exclusive of
overhead) which are incurred by or on behalf of the Servicer in connection
with the liquidation of any Home Equity Loan and not recovered under any
insurance policy, such expenses including, without limitation, legal fees and
expenses, any unreimbursed amount expended (including, without limitation,
amounts advanced to correct defaults on any mortgage loan which is senior to
such Home Equity Loan and amounts advanced to keep current or pay off a
mortgage loan that is senior to such Home Equity Loan) respecting the related
Home Equity Loan and any related and unreimbursed expenditures for real estate
property taxes or for property restoration, preservation or insurance against
casualty loss or damage.

                                      14
<PAGE>

            Liquidation Loss Amounts: With respect to any Payment Date and any
Home Equity Loan that became a Liquidated Home Equity Loan during the related
Collection Period, the unrecovered portion of the related Loan Balance thereof
at the end of such Collection Period, after giving effect to the Net
Liquidation Proceeds applied in reduction of the Loan Balance.

            Liquidation Loss Distribution Amount: With respect to any Payment
Date, the aggregate of (A) 100% of the Investor Liquidation Loss Amounts on
such Payment Date, plus (B) any such Investor Liquidation Loss Amounts
remaining undistributed from any preceding Payment Date not paid pursuant to
the Credit Enhancement Instrument.

            Liquidation Proceeds: Proceeds (including Insurance Proceeds but
not including amounts drawn under the Credit Enhancement Instrument) if any
received in connection with the liquidation of any Home Equity Loan or related
REO, whether through trustee's sale, foreclosure sale or otherwise.

            Loan Agreement: With respect to any Revolving Credit Loan, the
credit line account agreement executed by the related Mortgagor and any
amendment or modification thereof. With respect to any Mortgage Loan, the
mortgage executed by the related Mortgagor and any amendment or modification
thereof.

            Loan Balance: With respect to any Home Equity Loan, other than a
Liquidated Home Equity Loan, and as of any day, the related Cut-off Date Loan
Balance, plus (i) in the case of each Revolving Credit Loan any Additional
Balances in respect of such Revolving Credit Loan conveyed to the Trust, minus
(ii) all collections credited as principal in respect of any such Home Equity
Loan in accordance with the related Loan Agreement and applied in reduction of
the Loan Balance thereof. For purposes of this definition, a Liquidated Home
Equity Loan shall be deemed to have a Loan Balance equal to the Loan Balance
of the related Home Equity Loan immediately prior to the final recovery of
substantially all related Liquidation Proceeds and a Loan Balance of zero
thereafter.

            Loan Rate: With respect to any Revolving Credit Loan or
Adjustable-Rate Mortgage Loan and any day, the per annum rate of interest
applicable under the related Loan Agreement.

            Lost Note Affidavit: With respect to any Home Equity Loan as to
which the original Credit Line Agreement has been permanently lost or
destroyed and has not been replaced, an affidavit from the Seller certifying
that the original Credit Line Agreement or Mortgage Note has been lost,
misplaced or destroyed (together with a copy of the related Credit Line
Agreement or Mortgage Note).

            Managed Amortization Period: The period commencing on the Closing
Date and ending on the earlier of (i) the Payment Date in [ ], 20[ ] and (ii)
the occurrence of a Rapid Amortization Event.

            Maximum Rate: With respect to each Revolving Credit Loan or
Adjustable-Rate Mortgage Loan with respect to which the related Credit Line
Agreement or Mortgage Note provides for a lifetime rate cap, the maximum Loan
Rate permitted over the life of such Revolving Credit Loan or Adjustable-Rate
Mortgage Loan under the terms of such Credit Line

                                      15
<PAGE>

Agreement or Mortgage Note as set forth on the Home Equity Loan Schedule and
initially as set forth on Exhibit A to the Servicing Agreement.

            Minimum Auction Price: An amount equal to the sum of (i) the
outstanding Security Balance of the Notes plus accrued and unpaid interest on
the Notes, and (ii) any amounts owed to the Credit Enhancer, Auction
Administrator, Indenture Trustee and the Credit Enhancer under the Insurance
Agreement.

            Minimum Class O Certificateholder Interest: With respect to any
Transfer Date, an amount equal to the lesser of (a) [5]% of the Pool Balance
on such date and (b) [2]% of the Cut-off Date Pool Balance.

            Minimum Monthly Payment: With respect to any Revolving Credit Loan
and any month, the minimum amount required to be paid by the related Mortgagor
in that month.

            Moody's:  Moody's  Investors  Service,  Inc. or its  successor  in
interest.

            Mortgage: The mortgage, deed of trust or other instrument creating
a first or subordinate lien on an estate in fee simple interest in real
property securing a Home Equity Loan.

            Mortgage File: The file containing the Related Documents
pertaining to a particular Home Equity Loan and any additional documents
required to be added to the Mortgage File pursuant to the Home Equity Loan
Purchase Agreement or the Servicing Agreement.

            Mortgage Loans: At any time, all Mortgage Loans that are
closed-end and that have been sold to the Depositor under the Home Equity Loan
Purchase Agreement and conveyed to the Trust, together with the Related
Documents, and that remain subject to the terms thereof.

            Mortgaged Property: The underlying property, including real
property and improvements thereon, securing a Home Equity Loan.

            Mortgagor:  The obligor or obligors under a Loan Agreement.

            Net Liquidation Proceeds: With respect to any Liquidated Home
Equity Loan, Liquidation Proceeds net of Liquidation Expenses (but not
including the portion, if any, of such amount that exceeds the Loan Balance of
the Home Equity Loan at the end of the Collection Period immediately preceding
the Collection Period in which such Home Equity Loan became a Liquidated Home
Equity Loan plus accrued and unpaid interest and unreimbursed advances and
expenses). Net Liquidation proceeds will not be an amount less than zero.

            Net Loan Rate: With respect to any Home Equity Loan and any day,
the related Loan Rate less the sum of the Servicing Fee Rate, the Credit
Enhancer Premium Rate, the per annum rate at which the fee payable to the
Owner Trustee, if any, is calculated and, commencing with the Payment Date in
[__________], 20[ ], [0.25]%.

                                      16
<PAGE>

            Net Loan Rate Cap: With respect to any Payment Date, the Weighted
Average Net Loan Rate, adjusted to an effective rate reflecting interest
calculated on the basis of the actual number of days in the related Interest
Period and a year assumed to consist of 360 days.

            Net Principal Collections: With respect to any Payment Date (1)
prior to the Rapid Amortization Period, the excess, if any, of Principal
Collections for such Payment Date with respect to the Revolving Credit Loans
over the aggregate amount of Additional Balances created during the related
Collection Period and conveyed to the Trust, or (2) during the Rapid
Amortization Period, the Principal Collections with respect to the Revolving
Credit Loans for such Payment Date.

            Note Owner:  The Beneficial Owner of a Note.

            Note Rate: With respect to any Interest Period, a per annum rate
determined by the Indenture Trustee equal to the lesser of (i) One-Month LIBOR
for such Interest Period plus [ ]% (or [ ]% after any Optional Redemption
Date) and (ii) the Net Loan Rate Cap for such Interest Period.

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

            Note  Registrar:  The Indenture  Trustee,  in its capacity as Note
Registrar.

            Noteholder: The Person in whose name a Note is registered in the
Note Register, except that, any Note registered in the name of the Depositor,
the Issuer or the Indenture Trustee or any Affiliate of any of them shall be
deemed not to be outstanding and the registered holder will not be considered
a Noteholder or holder for purposes of giving any request, demand,
authorization, direction, notice, consent or waiver under the Indenture or the
Trust Agreement provided that, in determining whether the Indenture Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Notes that the Indenture Trustee or
the Owner Trustee knows to be so owned shall be so disregarded. Owners of
Notes that have been pledged in good faith may be regarded as Holders if the
pledgee establishes to the satisfaction of the Indenture Trustee or the Owner
Trustee the pledgee's right so to act with respect to such Notes and that the
pledgee is not the Issuer, any other obligor upon the Notes or any Affiliate
of any of the foregoing Persons.

            Notes:  The Notes issued and  outstanding  at any time pursuant to
the Indenture.

            Officer's Certificate: With respect to the Servicer, a certificate
signed by the President, Managing Director, a Director, a Vice President or an
Assistant Vice President, of the Servicer and delivered to the Indenture
Trustee. With respect to the Issuer, a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 10.01 of the Indenture,
and delivered to the Indenture Trustee. Unless otherwise specified, any
reference in the Indenture to an Officer's Certificate shall be to an
Officer's Certificate of any Authorized Officer of the Issuer.

            One-Month LIBOR: For any Interest Period other than the first
Interest Period, the rate for United States dollar deposits for one month
which appears on the Telerate Screen

                                      17
<PAGE>

Page 3750 as of 11:00 A.M., London, England time, on the second LIBOR Business
Day prior to the first day of such Interest Period. With respect to the first
Interest Period, the rate for United States dollar deposits for one month
which appears on the Telerate Screen Page 3750 as of 11:00 A.M., London,
England time, two LIBOR Business Days prior to the Closing Date. If such rate
does not appear on such page (or such other page as may replace that page on
that service, or if such service is no longer offered, such other service for
displaying One-Month LIBOR or comparable rates as may be reasonably selected
by the Indenture Trustee after consultation with the Servicer and the Credit
Enhancer), the rate will be the Reference Bank Rate. If no such quotations can
be obtained and no Reference Bank Rate is available, One-Month LIBOR will be
One-Month LIBOR applicable to the preceding Payment Date.

            Opinion of Counsel: A written opinion of counsel of a law firm
acceptable to the recipients thereof. Any Opinion of Counsel for the Servicer
may be provided by in-house counsel for the Servicer if reasonably acceptable
to the Indenture Trustee, the Credit Enhancer and the Rating Agencies or
counsel for the Depositor, as the case may be.

            Optional Redemption Date: The first Payment Date on which the
outstanding Security Balance of the Notes is reduced to an amount equal to or
less than 10% of the Security Balance of the Notes on the Closing Date.

            Original Investor Amount: As of the Closing Date, $[ ], which
represents the sum of 100% of the Cut-off Date Pool Balance.

            Original Investor Revolving Amount: An amount equal to the excess
of (i) the Original Investor Amount over (ii) the Cut-off Date Balance of the
Mortgage Loans.

            Outstanding:  With  respect  to  the  Notes,  as of  the  date  of
determination,  all Notes  theretofore  executed,  authenticated and delivered
under this Indenture except:

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

            (ii) Notes in exchange for or in lieu of which other Notes have
      been executed, authenticated and delivered pursuant to the Indenture
      unless proof satisfactory to the Indenture Trustee is presented that any
      such Notes are held by a holder in due course;

provided, however, that for purposes of effectuating the Credit Enhancer's
right of subrogation as set forth in the Indenture only, all Notes that have
been paid with funds provided under the Credit Enhancement Instrument shall be
deemed to be Outstanding until the Credit Enhancer has been reimbursed with
respect thereto.

            Overcollateralization Amount: With respect to any date of
determination, the amount, if any, by which the Investor Amount exceeds the
Security Balance of the Notes.

            Overcollateralization Deficit: With respect to any Payment Date,
the amount, if any, by which the Security Balance of the Notes (after giving
effect to all other amounts paid and allocated to principal on the Notes)
exceeds the Investor Amount as of such Payment Date (after giving effect to
all other amounts paid and allocated as principal of the Notes).

                                      18
<PAGE>

            Overcollateralization Shortfall: With respect to any Payment Date,
the amount by which (i) the Required Overcollateralization Amount exceeds (ii)
the Overcollateralization Amount for such Payment Date.

            Owner  Trust: The [________] Trust 20[___]-[___] to be created
pursuant to the Trust Agreement.

            Owner Trust Estate: The  corpus of the  Issuer  created  by the
Trust  Agreement  which  consists  of the Home  Equity  Loans  and the  Credit
Enhancement Instrument.

            Owner Trustee:  [__________],  not in its individual  capacity but
solely as Owner Trustee of the Trust,  and its  successors  and assigns or any
successor  owner  trustee  appointed  pursuant  to  the  terms  of  the  Trust
Agreement.

            Paying  Agent:  Any  paying  agent or  co-paying  agent  appointed
pursuant  to  Section  3.03 of the  Indenture,  which  initially  shall be the
Indenture Trustee.

            Payment Account: The account established by the Indenture Trustee
pursuant to Section 8.02 of the Indenture and Section 5.01 of the Servicing
Agreement. Amounts deposited in the Payment Account will be distributed by the
Indenture Trustee in accordance with Section 3.05 of the Indenture.

            Payment Date: The [ ]th day of each month beginning in [ ], 20[ ],
or if such day is not a Business Day, then the next Business Day.

            Percentage Interest: With respect to any Note, the percentage
obtained by dividing the Security Balance of such Note by the aggregate of the
Security Balances of all Notes prior to such Payment Date. With respect to any
Certificate, the percentage obtained by dividing the Security Balance on any
such Certificate by the aggregate of the Security Balances of all Certificates
prior to any Payment Date.

            Permitted Investments:  One or more of the following:

            (i) obligations of or guaranteed as to principal and interest by
      the United States or any agency or instrumentality thereof when such
      obligations are backed by the full faith and credit of the United
      States;

            (ii) repurchase agreements on obligations specified in clause (i)
      maturing not more than one month from the date of acquisition thereof,
      provided that the unsecured obligations of the party agreeing to
      repurchase such obligations are at the time (a) rated by Moody's in its
      highest short-term rating category available and (b) "AA" by Standard &
      Poor's with respect to its long-term unsecured debt or "A-1+" with
      respect to its short-term obligations;

            (iii) federal funds, certificates of deposit, demand deposits,
      time deposits and bankers' acceptances (which shall each have an
      original maturity of not more than 90 days and, in the case of bankers'
      acceptances, shall in no event have an original maturity of more than
      365 days or a remaining maturity of more than 30 days) denominated in

                                      19
<PAGE>

      United States dollars of any U.S. depository institution or trust
      company incorporated under the laws of the United States or any state
      thereof or of any domestic branch of a foreign depository institution or
      trust company; provided that the debt obligations of such depository
      institution or trust company (or, if the only Rating Agency is Standard
      & Poor's, in the case of the principal depository institution in a
      depository institution holding company, debt obligations of the
      depository institution holding company) at the date of acquisition
      thereof have been rated by each Rating Agency in its highest short-term
      rating category available; and provided further that, if the only Rating
      Agency is Standard & Poor's and if the depository or trust company is a
      principal subsidiary of a bank holding company and the debt obligations
      of such subsidiary are not separately rated, the applicable rating shall
      be that of the bank holding company; and, provided further that, if the
      original maturity of such short-term obligations of a domestic branch of
      a foreign depository institution or trust company shall exceed 30 days,
      the short-term rating of such institution shall be "A-1+" in the case of
      Standard & Poor's if Standard & Poor's is the Rating Agency;

            (iv) commercial paper (having original maturities of not more than
      365 days) of any corporation incorporated under the laws of the United
      States or any state thereof which on the date of acquisition has been
      rated by each Rating Agency in its highest short-term rating category
      available; provided that such commercial paper shall have a remaining
      maturity of not more than 30 days;

            (v) money market funds having ratings in the highest long-term
      available rating category of Moody's and having a rating of at least
      AAAm or AAm-G by Standard & Poor's at the time of such investment (any
      such money market funds which provide for demand withdrawals being
      conclusively deemed to satisfy any maturity requirements for Permitted
      Investments set forth in the Servicing Agreement) including money market
      funds of the Indenture Trustee and any such funds that are managed by
      the Indenture Trustee or its Affiliates or for which the Indenture
      Trustee or any Affiliate acts as advisor, as long as such money market
      funds satisfy the criteria of this subparagraph; and

            (vi) other obligations or securities that are acceptable to each
      Rating Agency as an Permitted Investment hereunder and will not reduce
      the rating assigned to any Securities by such Rating Agency below the
      lower of the then-current rating or the rating assigned to such
      Securities as of the Closing Date by such Rating Agency, and which are
      acceptable to the Credit Enhancer, as evidenced in writing, provided
      that if the Servicer or any other Person controlled by the Servicer is
      the issuer or the obligor of any obligation or security described in
      this clause (vi) such obligation or security must have an interest rate
      or yield that is fixed or is variable based on an objective index that
      is not affected by the rate or amount of losses on the Home Equity
      Loans;

provided, however, that no instrument shall be a Permitted Investment if it
represents, either (1) the right to receive only interest payments with
respect to the underlying debt instrument or (2) the right to receive both
principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity greater than 120% of the yield to
maturity at par of such underlying obligations References herein to the
highest rating available on unsecured long-term debt shall

                                      20
<PAGE>

mean "AAA" in the case of Standard & Poor's and "Aaa" in the case of Moody's,
and references herein to the highest rating available on unsecured commercial
paper and short-term debt obligations shall mean "A-1" in the case of Standard
& Poor's and "P-1" in the case of Moody's.

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

            Pool Balance: With respect to any date, the aggregate of the Loan
Balances of all Home Equity Loans as of such date.

            Predecessor Note: With respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced
by such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 4.03 of the Indenture 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.

            Preference Amounts: The meaning ascribed to such term in the
Credit Enhancement Instrument.

            Premium:  As defined in the Insurance Agreement.

            Premium  Letter:  The  Commitment  to Issue a  Financial  Guaranty
Insurance Policy dated the Closing Date.

            Principal Collection Distribution Amount: For any Payment Date (i)
the sum of (a) the Investor Floating Allocation Percentage of the Net
Principal Collections for the Revolving Credit loans, each for such Payment
Date and (b) Principal Collections for the Mortgage Loans for such Payment
Date, if such Payment Date is during the Managed Amortization Period, or (ii)
Principal Collections for such Payment Date if such Payment Date is after the
end of the Managed Amortization Period.

            Principal Collections: With respect to any Payment Date and any
Home Equity Loan, the aggregate of the following amounts:

            (i) the total amount of payments made by or on behalf of the
      Mortgagor, received and applied as payments of principal on the Home
      Equity Loan during the related Collection Period, as reported by the
      Servicer;

            (ii) any Net Liquidation Proceeds, allocable as a recovery of
      principal, received in connection with the Home Equity Loan during the
      related Collection Period;

            (iii) if the Home Equity Loan was purchased by the Servicer
      pursuant to Section 3.15 or 8.08 of the Servicing Agreement, or was
      repurchased by the Seller pursuant to the Home Equity Loan Purchase
      Agreement, during the related Collection Period, 100% of the Loan
      Balance of the Home Equity Loan as of the date of such purchase or
      repurchase and any Substitution Adjustment Amounts received for such
      Collection Period;

                                      21
<PAGE>

            (iv) any other amounts received as payments on or proceeds of the
      Home Equity Loan during the Collection Period to the extent applied in
      reduction of the principal amount thereof; and

            (v) any amounts received pursuant to the Mandatory Auction
provision in Section 8.04 of the Indenture.

provided, that Principal Collections shall not include any Foreclosure
Profits, and shall be reduced by any amounts withdrawn from the Collection
Account pursuant to clauses (iii), (vi) and (vii) of Section 3.03 of the
Servicing Agreement.

            Principal Reduction Amount: With respect to any Payment Date, the
lesser of (a) the Principal Collection Distribution Amount and (b) the greater
of (i) the excess, if any, of the Overcollateralization Amount over the
Required Overcollateralization Amount, each for such Payment Date and (ii)
zero.

            Proceeding:  Any suit in equity,  action at law or other  judicial
or administrative proceeding.

            Purchase  Price:  The meaning  specified in Section  2.2(a) of the
Home Equity Loan Purchase Agreement.

            Purchaser:   [__________],   a  Delaware   corporation,   and  its
successors and assigns.

            Rapid Amortization Event:  Any one of the following events:

            (a) the failure on the part of the Seller (i) to make any payment
      or deposit required to be made under the Home Equity Loan Purchase
      Agreement within five Business Days after the date such payment or
      deposit is required to be made; or (ii) to observe or perform in any
      material respect any other covenants or agreements of the Seller set
      forth in the Home Equity Loan Purchase Agreement, which failure
      continues unremedied for a period of 60 days after written notice and
      such failure materially and adversely affects the interests of the
      Securityholders or the Credit Enhancer;

            (b) if any representation or warranty made by the Seller in the
      Home Equity Loan Purchase Agreement proves to have been incorrect in any
      material respect when made and which continues to be incorrect in any
      material respect for a period of [60] days with respect to any
      representation or warranty of the Seller made in Section 3.1(a) of the
      Home Equity Loan Purchase Agreement or [90] days with respect to any
      representation or warranty made in Section 3.1(b) of the Home Equity
      Loan Purchase Agreement after written notice and as a result of which
      the interests of the Securityholders or the Credit Enhancer are
      materially and adversely affected; provided, however, that a Rapid
      Amortization Event shall not be deemed to occur if the Seller has
      repurchased or caused to be repurchased or substituted for the related
      Home Equity Loans or all Home Equity Loans, if applicable, during such
      period (or within an additional [60] days with the consent of the
      Indenture Trustee and the Credit Enhancer) in accordance with the
      provisions of the Indenture;

                                      22
<PAGE>

            (c) the entry against the Seller or the Issuer of a decree or
      order by a court or agency or supervisory authority having jurisdiction
      in the premises for the appointment of a trustee, conservator, receiver
      or liquidator in any insolvency, conservatorship, receivership,
      readjustment of debt, marshalling of assets and liabilities or similar
      proceedings, or for the winding up or liquidation of its affairs, and
      the continuance of any such decree or order unstayed and in effect for a
      period of 60 consecutive days;

            (d) the Seller or the Issuer shall voluntarily go into
      liquidation, consent to the appointment of a conservator, receiver,
      liquidator or similar person in any insolvency, readjustment of debt,
      marshalling of assets and liabilities or similar proceedings of or
      relating to the Seller or the Issuer or of or relating to all or
      substantially all of its property, or a decree or order of a court,
      agency or supervisory authority having jurisdiction in the premises for
      the appointment of a conservator, receiver, liquidator or similar person
      in any insolvency, readjustment of debt, marshalling of assets and
      liabilities or similar proceedings, or for the winding-up or liquidation
      of its affairs, shall have been entered against the Seller or the Issuer
      and such decree or order shall have remained in force undischarged,
      unbonded or unstayed for a period of 60 days; or the Seller or the
      Issuer shall admit in writing its inability to pay its debts generally
      as they become due, file a petition to take advantage of any applicable
      insolvency or reorganization statute, make an assignment for the benefit
      of its creditors or voluntarily suspend payment of its obligations;

            (e) the Issuer becomes subject to regulation by the Commission as
      an investment company within the meaning of the Investment Company Act of
      1940, as amended;

            (f) a Servicing Default relating to the Servicer occurs under the
      Servicing Agreement;

            (g) any draw on the Credit Enhancement Instrument;

            (h) the Issuer is determined to be an association taxable as a
      corporation for federal income tax purposes; or

            (i) an Event of Default under the Indenture has occurred and is
      continuing

            In the case of any event described in (a), (b) or (f), a Rapid
Amortization Event will be deemed to have occurred only if, after any
applicable grace period described in such clauses, the Credit Enhancer or,
with the consent of the Credit Enhancer, Securityholders evidencing not less
than [51]% of the Security Balance of each of the Notes and the Certificates,
by written notice to the Seller, the Servicer, the Indenture Trustee, the
Depositor and the Owner Trustee, declare that a Rapid Amortization Event has
occurred as of the date of such notice. In the case of any event described in
clauses (c), (d), (e), (g), (h) or (i), an Rapid Amortization Event will be
deemed to have occurred without any notice or other action on the part of the
Noteholders or the Credit Enhancer immediately upon the occurrence of such
event; provided, that any Rapid Amortization Event may be waived and deemed of
no effect with the written consent of the Credit Enhancer and each Rating
Agency, subject to the satisfaction of any conditions to such waiver.

                                      23
<PAGE>

            Rating Agency: Any nationally recognized statistical rating
organization, or its successor, that rated the Securities at the request of
the Depositor at the time of the initial issuance of the Securities.
Initially, Moody's or Standard & Poor's. If such organization or a successor
is no longer in existence, "Rating Agency" shall be such nationally recognized
statistical rating organization, or other comparable Person, designated by the
Depositor, notice of which designation shall be given to the Indenture
Trustee. References herein to the highest short term unsecured rating category
of a Rating Agency shall mean "A-1+" or better in the case of Standard &
Poor's and "P-1" or better in the case of Moody's and in the case of any other
Rating Agency shall mean such equivalent ratings. References herein to the
highest long-term rating category of a Rating Agency shall mean "AAA" in the
case of Standard & Poor's and "Aaa" in the case of Moody's and in the case of
any other Rating Agency, such equivalent rating.

            Realized Loss Allocated Amount: With respect to any Payment Date,
an amount equal to Realized Losses on the Revolving Credit Loans incurred
during the prior Collection Period multiplied by a fraction the numerator of
which is the Class Principal Balance of the Class L Certificates immediately
prior to such Payment Date and the denominator of which is the aggregate Loan
Balances of the Revolving Credit Loans at the end of the related Collection
Period.

            Realized Losses: For any Payment Date the positive difference
between (i) the Principal Balances of all Home Equity Loans that were
liquidated during the related Collection Period and (ii) the principal portion
of Net Liquidation Proceeds of such Home Equity Loans.

            Record Date: With respect to the Notes and any Payment Date, the
Business Day next preceding such Payment Date and with respect to the
Certificates and any Payment Date, the last Business Day of the month
preceding the month of such Payment Date.

            Reference Bank Rate: With respect to One-Month LIBOR and any
Interest Period, as follows: the arithmetic mean (rounded upwards, if
necessary, to the nearest one sixteenth of a percent) of the offered rates for
United States dollar deposits for one month, which are offered by the
Reference Banks as of 11:00 A.M., London, England time, on the second LIBOR
Business Day prior to the first day of such Interest Period to prime banks in
the London interbank market for a period of one month, in amounts
approximately equal to the sum of the outstanding Security Balance of the
Notes and the Certificates; provided that at least two such Reference Banks
provide such rate. If fewer than two offered rates appear, the Reference Bank
Rate will be the arithmetic mean of the rates quoted by one or more major
banks in New York City, selected by the Indenture Trustee after consultation
with the Servicer and the Credit Enhancer, as of 11:00 a.m., New York time, on
such date for loans in U.S. Dollars to leading European Banks for a period of
one month, in amounts approximately equal to the aggregate Security Balance of
the Notes. If no such quotations can be obtained, the Reference Bank Rate
shall be the Reference Bank Rate applicable to the preceding Interest Period.

            Reference Banks: [Barclays Bank PLC, National Westminster Bank and
Deutsche Bank, AG], or any successor in interest thereto.

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

                                      24
<PAGE>

            Regulation AB: Subpart 229.1100 - Asset Backed Securities
(Regulation AB), 17 C.F.R. ss.ss.229.1100-229.1123, as such may be amended
from time to time, and subject to such clarification and interpretation as
have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531
(Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by
the Commission or its staff from time to time.

            Reimbursement Amount: The meaning ascribed to such term in the
Credit Enhancement Instrument.

            Related Documents: With respect to each Home Equity Loan, the
documents specified in Section 2.1(c) of the Home Equity Loan Purchase
Agreement and any documents required to be added to such documents pursuant to
the Home Equity Loan Purchase Agreement, the Trust Agreement or the Servicing
Agreement.

            Relief Act:  The Servicemembers Civil Relief Act, as amended.

            REO:  A  Mortgaged  Property  that is  acquired  by the  Trust  in
foreclosure or by deed in lieu of foreclosure.

            Reportable  Event:  shall mean any event  required  to be reported
on Form 8-K, and in any event, the following:

      (a) entry into a definitive agreement related to the Issuer, the Notes
      or the Receivables, or an amendment to a Basic Document, even if the
      Depositor is not a party to such agreement (e.g., a servicing agreement
      with a servicer contemplated by Item 1108(a)(3) of Regulation AB);

      (b) termination of a Basic Document (other than by expiration of the
      agreement on its stated termination date or as a result of all parties
      completing their obligations under such agreement), even if the
      Depositor is not a party to such agreement (e.g., a servicing agreement
      with a servicer contemplated by Item 1108(a)(3) of Regulation AB);

      (c) with respect to the Servicer only, the occurrence of a Servicing
      Default;

      (d) the resignation, removal, replacement, substitution of the Indenture
      Trustee, the Owner Trustee or any Co-Trustee;

      (e) with respect to the Indenture Trustee only, a required distribution
      to holders of the Notes is not made as of the required Payment Date
      under the Indenture; and

      (f) with respect to the Servicer only, if the Servicer becomes aware of
      any bankruptcy or receivership of the Seller, the Depositor, the
      Indenture Trustee, the Owner Trustee, any enhancement or support
      provider contemplated by Item 1114(b) or 1115 of Regulation AB, or other
      material party contemplated by Item 1101(d)(1) of Regulation AB.

                                      25
<PAGE>

            Repurchase Event: With respect to any Home Equity Loan, either (i)
a discovery that, as of the Closing Date, the related Mortgage was not a valid
Lien on the related Mortgaged Property subject only to (A) the lien of any
prior mortgage indicated on the Home Equity Loan Schedule, (B) the Lien of
real property taxes and assessments not yet due and payable, (C) covenants,
conditions, and restrictions, rights of way, easements and other matters of
public record as of the date of recording of such Mortgage and such other
title exceptions permissible by mortgage lenders generally and (D) other
matters to which like properties are commonly subject which do not materially
adversely affect the value, use, enjoyment or marketability of the related
Mortgaged Property or (ii) with respect to any Home Equity Loan as to which
the Seller delivers an affidavit certifying that the original Credit Line
Agreement has been lost or destroyed, a subsequent default on such Home Equity
Loan if the enforcement thereof or of the related Mortgage is materially and
adversely affected by the absence of such original Credit Line Agreement.

            Repurchase Price: With respect to any Home Equity Loan required to
be repurchased on any date pursuant to the Home Equity Loan Purchase Agreement
or purchased by the Servicer pursuant to the Servicing Agreement, an amount
equal to the sum of (i) 100% of the Loan Balance thereof (without reduction
for any amounts charged off), (ii) unpaid accrued interest at the Loan Rate
(or with respect to the last day of the month in the month of repurchase, the
Loan Rate will be the Loan Rate in effect as to the second to last day in such
month) on the outstanding principal balance thereof from the Due Date to which
interest was last paid by the Mortgagor to the first day of the month
following the month of purchase and (iii) and any costs and damages incurred
by the Trust resulting from any violation of any predatory or abusive lending
law in connection with such Home Equity Loan.

            Required Overcollateralization Amount:[_____________].

            Responsible Officer: With respect to the Indenture Trustee, any
officer of the Indenture Trustee with direct responsibility for the
administration of the Indenture and also, with respect to a particular matter,
any other officer to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject.

            Revolving Credit Loans: At any time, all Revolving Credit Loans,
including Additional Balances, if any, that have been sold to the Depositor
under the Home Equity Loan Purchase Agreement and conveyed to the Trust,
together with the Related Documents, and that remain subject to the terms
thereof.

            Scheduled Final Payment Date: The Payment Date in
[___________], 20[  ].

            Securities  Act: The Securities  Act of 1933, as amended,  and the
rules and regulations promulgated thereunder.

            Security:  Any of the Certificates or Notes.

            Security Balance: With respect to any Payment Date and the Notes,
the Initial Security Balance thereof prior to such Payment Date reduced by all
payments of principal thereon prior to such Payment Date. With respect to any
Payment Date and any Class of Certificates, the Class Principal Balance
thereof.

                                      26
<PAGE>

            Security  Collections:  With respect to any Payment Date,  the sum
of the following amounts:

            (i) the aggregate of all Security Interest Collections received
      during the related Collection Period;

            (ii) the aggregate of all Security Principal Collections received
      during the
      related Collection Period; and

            (iii) all Substitution Adjustment Amounts to be deposited to the
      Payment Account for such Payment Date.

            Securityholder or Holder:  Any Noteholder or a Certificateholder.

            Security Interest  Collections:  With respect to any Payment Date,
Interest Collections during the related Collection Period.

            Security Percentage: With respect to any Payment Date and
Security, the percentage equivalent of a fraction the numerator of which is
the Security Balance of such Security immediately prior to such Payment Date
and the denominator of which is the aggregate of the Security Balances of all
Securities as of such date.

            Security  Principal  Collections:  With  respect  to  any  Payment
Date, Principal Collections during the related Collection Period.

            Seller:  [___________],  a  [___________] corporation, and its
successors and assigns.

            Seller P&I Collections: With respect to any Payment Date, the
excess of Security Collections over the Investor P&I Collections for such
Payment Date.

            Servicer: [___________],  a  [___________] corporation, and its
successors and assigns.

            Servicer Performance Test: With respect to the Servicer, the
Servicer Performance Test shall be satisfied so long as (i) the ratio,
expressed as a percentage, of the cumulative Liquidation Loss Amounts over the
Cut-Off Date Pool Balance, is less than the following percentages during the
following calendar months after the Cut-Off Date: (a) [1.00]% during months
[31] to [48], inclusive, (b) [1.50]% during months [49] to [60], inclusive,
and (c) [2.00]% on and after month [61], (ii) the most recent servicer ranking
of the Servicer is "average" or better from S&P and (iii) the 60+ Delinquency
Percentage (Rolling Six Month), is less than [3.00]%.

            Servicer Test: With respect to the Servicer, the Servicer Test
shall be satisfied so long as (i) the ratio, expressed as a percentage, of the
cumulative Liquidation Loss Amounts over the Cut-Off Date Pool Balance is less
than the following percentage rates during the following calendar months after
the Cut-Off Date: (a) [1.00]% during months [31] to [48], inclusive, (b)
[1.50]% during months [49] to [60], inclusive, and (c) [2.00]% on and after
month [61], (ii) the
                                      27
<PAGE>

Tangible Net Worth is at least $[500,000,000] or such other amount as the
parties agree that the Servicer will maintain, (iii) the most recent servicer
ranking of the Servicer is "average" or better from S&P and (iv) the 60+
Delinquency Percentage (Rolling Six Month), is less than [3.00]%; provided,
however, with respect to clause (ii) above, as a substitute for equity
capital, the Servicer shall have the right to provide a letter of credit or
letters of credit, with each letter of credit being in form and substance
acceptable to the Credit Enhancer and its outside counsel and from a letter of
credit provider or providers, each of which is acceptable to the Credit
Enhancer and its outside counsel.

            Servicing Advance: Those costs and expenses advanced for the
preservation or restoration of any Mortgaged Property, including advances, if
any, to pay delinquent real estate taxes and insurance that the Servicer is
required to advance in accordance with the terms of the Servicing Agreement.

            Servicing Agreement: The Servicing Agreement dated as of [ ], 20[
] between the Indenture Trustee, the Issuer, the Depositor and the Servicer,
as servicer.

            Servicing  Criteria:  shall  mean  the  "servicing  criteria"  set
forth in Item 1122(d) of Regulation AB.

            Servicing  Default:  The meaning  specified in Section 7.01 of the
Servicing Agreement.

            Servicing Fee: With respect to any Home Equity Loan except
Liquidated Home Equity Loans and any Collection Period, the product of (i) the
Servicing Fee Rate divided by 12 and (ii) (A) the Calculated Loan Balance, in
the case of Revolving Credit Loans, and (B) the Loan Balance, in the case of
Mortgage Loans.

            Servicing  Fee Rate:  With  respect to any Home Equity Loan except
Liquidated Home Equity Loans, 0.[    ]% per annum.

            Servicing Officer: Any officer of the Servicer involved in, or
responsible for, the administration and servicing of the Home Equity Loans
whose name and specimen signature appear on a list of Servicing Officers
furnished to the Indenture Trustee (with a copy to the Credit Enhancer) by the
Servicer, as such list may be amended from time to time.

            Servicing Report: The monthly report delivered to the Indenture
Trustee by the Servicer pursuant to Section 4.01 of the Servicing Agreement.

            Single Certificate: A Certificate in the denomination  of
$[1,000].

            Single Note:  A Note in the amount of $[1,000].

            Six-Month LIBOR: With respect to any Adjustable-Rate Mortgage Loan
for which Six-Month LIBOR is the related Index, the rate for United States
dollar deposits for six months which appears on the Telerate Screen Page 3750
as of 11:00 A.M., London, England time, on the second LIBOR Business Day prior
to the first day of such Collection Period or such other date specified in the
related Mortgage Note. If such rate does not appear on such page (or

                                      28
<PAGE>

such other page as may replace that page on that service), or if such service
is no longer offered, such other service for displaying Six-Month LIBOR or
comparable rates as may be reasonably selected by the Servicer after
consultation with the Credit Enhancer), in accordance with the terms of the
related Mortgage Note.

            60+ Delinquency Percentage (Rolling Six Month): means, as of any
Payment Date, the ratio expressed as a percentage, of the six-month rolling
average of all Home Equity Loans sixty days or more delinquent as of such
Payment Date in the payment of all or any portion of scheduled principal or
interest (including all Home Equity Loans that are REO or the subject of a
foreclosure proceeding) over the Pool Balance.

            Standard  &  Poor's:   Standard  &  Poor's  Ratings  Services,   a
division of The McGraw Hill Companies, Inc.,  or its successor in interest.

            Statement:   The  monthly  statement  prepared  by  the  Indenture
Trustee  pursuant to Section 3.26 of the Indenture  and made  available to the
parties described therein.

            Subcontractor: Any third-party or Affiliated vendor, subcontractor
or other Person utilized by a Servicer, a Subservicer or the Trustee, as
applicable, that is not responsible for the overall servicing (as "servicing:
is commonly understood by participants in the mortgage-backed securities
market) of Mortgage Loans but performs one or more discrete functions
identified in Item 1122(d) of Regulation AB with respect to Mortgage Loans.

            Subservicer: Any Person that services Mortgage Loans on behalf of
a Servicer or any Subservicer and is responsible for the performance (whether
directly or through Subservicers or Subcontractors) of a substantial portion
of the material servicing functions required to be performed by a Servicer
under this Agreement, with respect to some or all of the Mortgage Loans, that
are identified in Item 1122(d) of Regulation AB.

            Subservicing   Account:   An  Eligible   Account   established  or
maintained  by a  Subservicer  as  provided  for  in  Section  3.02(c)  of the
Servicing Agreement.

            Subservicing Agreement: The written contract between the Servicer
and any Subservicer relating to servicing and administration of certain Home
Equity Loans as provided in Section 3.01 of the Servicing Agreement.

            Substitution Adjustment Amounts: With respect to any Eligible
Substitute Loan and any Deleted Loan, the amount, if any, as determined by the
Servicer, by which the aggregate principal balance of all such Eligible
Substitute Loans as of the date of substitution is less than the aggregate
principal balance of all such Deleted Loans (after application of the
principal portion of the monthly payments due in the month of substitution
that are to be distributed to the Payment Account in the month of
substitution).

            Tangible Net Worth: The excess of (a) the tangible assets of the
Servicer and any Affiliates calculated in accordance with GAAP, as reduced by
adequate reserves in each case

                                      29
<PAGE>

where reserves are proper over (b) all indebtedness (including subordinated
debt) of the Servicer and its Affiliates; provided, however, that (i) in no
event shall there be included in the above calculation any intangible assets
such as patents, trademarks, trade names, copyrights, licenses, goodwill,
organizational costs, advances or loans to, or receivables from, directors,
officers, employees or affiliates, prepaid assets, amounts relating to
covenants not to compete, pension assets, deferred charges or treasury stock
or any securities of the Servicer or any other securities unless the same are
readily marketable in the United States of America or entitled to be used as a
credit against federal income tax liabilities, (ii) securities included in
such intangible assets shall be taken into account at their current market
price or cost, whichever is lower, and (iii) any write-up in the book value of
the assets shall not be taken into account.

            Teaser Loan: Any Revolving Credit Loan or any Adjustable-Rate
Mortgage Loan, which provides for an initial period during which the Loan Rate
is less than the sum of the current Index plus the applicable Gross Margin.

            Telerate Screen Page 3750: The display designated as page 3750 on
the Telerate Service (or such other page as may replace page 3750 on that
service for the purpose of displaying London interbank offered rates of major
banks). If such rate does not appear on such page (or such other page as may
replace that page on that service, or if such service is no longer offered,
such other service for displaying One-Month LIBOR or comparable rates as may
be selected by the Issuer after consultation with the Indenture Trustee and
the Credit Enhancer), the rate will be the related Reference Bank Rate.

            Transfer Date: Any Payment Date on which the Seller removes
Revolving Credit Loans from the Trust pursuant to Section 2.3 of the Home
Equity Loan Purchase Agreement.

            Transfer Document: A document substantially in the form of Exhibit
D to the Servicing Agreement.

            Transition Costs: Any documented fees, expenses and allocated
costs reasonably incurred by the Indenture Trustee (or a successor Servicer or
the Credit Enhancer) in connection with a transfer of servicing from the
Servicer to the Indenture Trustee (or a successor Servicer), including,
without limitation, any costs or expenses associated with the complete
transfer of all servicing data and the completion, correction or manipulation
of such servicing data as may be required by the Indenture Trustee (or a
successor Servicer) to correct any errors or insufficiencies in the servicing
data or otherwise to enable the Indenture Trustee (or a successor Servicer) to
service the Home Equity Loans properly and effectively.

            Treasury Regulations: Regulations, including proposed or temporary
Regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

            Trust:  As defined in Section 2.01 of the Trust Agreement.

            Trust Agreement:  The Trust Agreement, dated as of [__________],
20[__], between the Owner Trustee  and  the Depositor.

                                      30
<PAGE>

            Trust Estate:  The meaning specified in the Granting Clause of
the Indenture.

            Trust Indenture Act or TIA: The Trust Indenture Act of 1939, as
amended from time to time, as in effect on any relevant date.

            UCC: The Uniform Commercial Code, as in effect from time to time
in the applicable jurisdiction.

            Underwriter:  [_____________].

            Weighted Average Net Loan Rate: With respect to the Home Equity
Loans in the aggregate, and any Payment Date, the average of the Net Loan Rate
for each Home Equity Loan as of the last day of the Billing Cycle for the Due
Date that occurs in the Collection Period immediately prior to such Payment
Date weighted on the basis of the related Loan Balances outstanding as of the
last day of such Billing Cycle for each Home Equity Loan as determined by the
Servicer in accordance with the Servicer's normal servicing procedures.

                                      31EXHIBIT 4.4

                                 [__________],
                                  as Servicer

                                 [__________],
                                   as Issuer

                                 [__________],
                             as Indenture Trustee

                                      and

                      Morgan Stanley ABS Capital I Inc.,
                                 as Depositor

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

                              SERVICING AGREEMENT
                          Dated as of [____], 20[__]

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

                              [Home Equity] Loans

<PAGE>

<TABLE>
<CAPTION>
                                      TABLE OF CONTENTS

                                                                                          Page
                                                                                          ----

                                          ARTICLE I.
                                         Definitions

<S>                                                                                        <C>
        Section 1.01. Definitions............................................................1
        Section 1.02. Other Definitional Provisions..........................................1
        Section 1.03. Interest Calculations..................................................2

                                         ARTICLE II.
                                Representations and Warranties

        Section 2.01. Representations and Warranties Regarding the Servicer..................3
        Section 2.02. Representations and Warranties of the Issuer...........................4
        Section 2.03. Enforcement of Representations and Warranties..........................4

                                         ARTICLE III.
                      Administration and Servicing of Home Equity Loans

        Section 3.01. The Servicer...........................................................6
        Section 3.02. Collection of Certain Home Equity Loan Payments.......................10
        Section 3.03. Withdrawals from the Collection Account...............................12
        Section 3.04. Maintenance of Hazard Insurance; Property Protection Expenses.........13
        Section 3.05. Modification Agreements...............................................14
        Section 3.06. Trust Estate; Related Documents.......................................14
        Section 3.07. Realization Upon Defaulted Home Equity Loans..........................15
        Section 3.08. Issuer and Indenture Trustee to Cooperate.............................16
        Section 3.09. Servicing Compensation; Payment of Certain Expenses by Servicer.......17
        Section 3.10. Annual Statement as to Compliance.....................................18
        Section 3.11. Annual Reports on Assessment of Compliance with Servicing
                      Criteria; Annual Independent Public Accountants' Attestation
                      Report................................................................18
        Section 3.12. Access to Certain Documentation and Information Regarding the
                      Home Equity Loans.....................................................20
        Section 3.13. Maintenance of Certain Servicing Insurance Policies...................20
        Section 3.14. Information Required by the Internal Revenue Service and
                      Reports of Foreclosures and Abandonments of Mortgaged Property........20
        Section 3.15. [Reserved]............................................................20
        Section 3.16. Payment of Taxes, Insurance and Other Charges.........................21
        Section 3.17. Optional Retransfers of Home Equity Loans.............................21

                                         ARTICLE IV.
                                      Servicing Reports

        Section 4.01. Statements to Securityholders.........................................22

<PAGE>

        Section 4.02. Tax Reporting.........................................................24

                                          ARTICLE V.
                                       Payment Account

        Section 5.01. Payment Account.......................................................25

                                         ARTICLE VI.
                                         The Servicer

        Section 6.01. Liability of the Servicer.............................................26
        Section 6.02. Merger or Consolidation of, or Assumption of the Obligations
                      of, the Servicer......................................................26
        Section 6.03. Limitation on Liability of the Servicer and Others....................26
        Section 6.04. Servicer Not to Resign................................................27
        Section 6.05. Delegation of Duties..................................................27
        Section 6.06. Servicer to Pay Indenture Trustee's and Owner Trustee's Fees
                      and Expenses; Indemnification.........................................28
        Section 6.07. Servicer to act as Administrator for the Owner Trustee................28

                                         ARTICLE VII.
                                           Default

        Section 7.01. Servicing Default.....................................................29
        Section 7.02. Indenture Trustee to Act; Appointment of Successor....................31
        Section 7.03. Notification to Securityholders.......................................33

                                        ARTICLE VIII.
                                   Miscellaneous Provisions

        Section 8.01. Amendment.............................................................34
        Section 8.02. GOVERNING LAW.........................................................34
        Section 8.03. Notices...............................................................34
        Section 8.04. Severability of Provisions............................................34
        Section 8.05. Third-Party Beneficiaries.............................................34
        Section 8.06. Counterparts..........................................................35
        Section 8.07. Effect of Headings and Table of Contents..............................35
        Section 8.08. Termination Upon Purchase by the Servicer or Liquidation of All
                      Home Equity Loans.....................................................35
        Section 8.09. Certain Matters Affecting the Indenture Trustee.......................35
        Section 8.10. Owner Trustee Not Liable for Related Documents........................36

                                         ARTICLE IX.
                                    Exchange Act Reporting

        Section 9.01. Further Assurances....................................................37
        Section 9.02. Form 10-D Filings.....................................................37
        Section 9.03. Form 8-K Filings......................................................38

<PAGE>

        Section 9.04. Form 10-K Filings.....................................................38
        Section 9.05. Form 15 Filings, Late Filings.........................................39
        Section 9.06. Report on Assessment of Compliance and Attestation....................40
        Section 9.07. Back-up Sarbanes-Oxley Certification..................................41
        Section 9.08. Representations and Warranties........................................41
        Section 9.09. Indemnification.......................................................42
        Section 9.10. Amendments............................................................42

EXHIBIT A         HOME EQUITY LOAN SCHEDULE................................................A-1
EXHIBIT B         POWER OF ATTORNEY........................................................B-1
EXHIBIT C         FORM OF REQUEST FOR RELEASE..............................................C-1
APPENDIX D        ITEM 1119 PARTIES........................................................D-1
APPENDIX E        MINIMUM SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF
                  COMPLIANCE STATEMENT.....................................................E-1
APPENDIX F        FORM OF PERFORMANCE CERTIFICATION........................................F-1
APPENDIX G        CERTIFICATION............................................................G-1
</TABLE>

<PAGE>

            This Servicing Agreement, dated as [____], 20[__], among
[__________] (the "Servicer"), [__________] (the "Issuer"), [__________] (the
"Indenture Trustee") and Morgan Stanley ABS Capital I Inc. (the "Depositor").

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

            WHEREAS, pursuant to the terms of the Home Equity Loan Purchase
Agreement, [__________] (in its capacity as Seller) will sell to the Depositor
the Home Equity Loans together with the Related Documents on the Closing Date,
and thereafter, with respect to the Revolving Credit Loans, all Additional
Balances created on or after the Cut-off Date;

            WHEREAS, the Depositor will transfer the Home Equity Loans and all
of its rights under the Home Equity Loan Purchase Agreement to the Issuer,
together with the Related Documents on the Closing Date, and thereafter, with
respect to the Revolving Credit Loans, all Additional Balances created on or
after the Cut-off Date;

            WHEREAS, pursuant to the terms of the Trust Agreement, the Issuer
will issue and transfer to or at the direction of the Depositor, the
Certificates;

            WHEREAS,  pursuant to the terms of the Indenture,  the Issuer will
issue and transfer to or at the direction of the Depositor, the Notes; and

            WHEREAS, pursuant to the terms of this Servicing Agreement, the
Servicer will service the Home Equity Loans directly;

            NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the parties hereto agree as follows:

                                  ARTICLE I.

                                  Definitions

      Section 1.01. Definitions. For all purposes of this Servicing Agreement,
except as otherwise expressly provided herein or unless the context otherwise
requires, capitalized terms not otherwise defined herein shall have the
meanings assigned to such terms in the Definitions contained in Appendix A to
the Indenture dated as of [____], 20[__] (the "Indenture"), between
[__________], as issuer, and [__________], as indenture trustee, which is
incorporated by reference herein. All other capitalized terms used herein
shall have the meanings specified herein.

      Section 1.02. Other Definitional Provisions.

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

<PAGE>

      (b) As used in this Servicing Agreement and in any certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Servicing Agreement or in any such certificate or other
document, and accounting terms partly defined in this Servicing 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
Servicing 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 Servicing Agreement
or in any such certificate or other document shall control.

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

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

      (e) 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.

      Section 1.03. Interest Calculations. All calculations of interest
hereunder that are made in respect of the Loan Balance of a Home Equity Loan
shall be made on a daily basis using a 365/366-day year. All calculations of
interest on the Securities shall be made on the basis of the actual number of
days in an Interest Period and a year assumed to consist of [__] days. The
calculation of the Servicing Fee shall be made on the basis of a [__]-day year
consisting of [__] [__]-day months. All dollar amounts calculated hereunder
shall be rounded to the nearest penny with one-half of one penny being rounded
up.

                                      2
<PAGE>

                                 ARTICLE II.

                        Representations and Warranties

      Section 2.01. Representations and Warranties Regarding the Servicer. The
Servicer represents and warrants to the Issuer and for the benefit of the
Indenture Trustee, as pledgee of the Home Equity Loans and the Credit
Enhancer, as of the Cut-off Date:

            (i) The Servicer is a corporation duly organized, validly existing
and in good standing under the laws of the State of [_____] and has the
corporate power to own its assets and to transact the business in which it is
currently engaged. The Servicer 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
requires 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 Servicer;

            (ii) The Servicer has the power and authority to make, execute,
deliver and perform this Servicing Agreement and all of the transactions
contemplated under this Servicing Agreement, and has taken all necessary
corporate action to authorize the execution, delivery and performance of this
Servicing Agreement. When executed and delivered, this Servicing Agreement
will constitute the legal, valid and binding obligation of the Servicer
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;

            (iii) The Servicer 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 Servicing Agreement, except for such consent, license,
approval or authorization, or registration or declaration, as shall have been
obtained or filed, as the case may be;

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

            (v) No litigation or administrative proceeding of or before any
court, tribunal or governmental body is currently pending, or to the knowledge
of the Servicer threatened, against the Servicer or any of its properties or
with respect to this Servicing Agreement or the Securities which in the
opinion of the Servicer has a reasonable likelihood of resulting in a material
adverse effect on the transactions contemplated by this Servicing Agreement.

      The foregoing representations and warranties shall survive any
termination of the Servicer hereunder.

                                      3
<PAGE>

      Section 2.02. Representations and Warranties of the Issuer. The Issuer
hereby represents and warrants to the Servicer and for the benefit of the
Indenture Trustee, as pledgee of the Home Equity Loans and the Credit
Enhancer, as of the Cut-off Date:

            (i) The Issuer is a statutory trust duly formed and in good
standing under the laws of the State of [Delaware] and has full power,
authority and legal right to execute and deliver this Servicing Agreement and
to perform its obligations under this Servicing Agreement, and has taken all
necessary action to authorize the execution, delivery and performance by it of
this Servicing Agreement; and

            (ii) The execution and delivery by the Issuer of this Servicing
Agreement and the performance by the Issuer of its obligations under this
Servicing Agreement will not violate any provision of any law or regulation
governing the Issuer or any order, writ, judgment or decree of any court,
arbitrator or governmental authority or agency applicable to the Issuer or any
of its assets. Such execution, delivery, authentication and performance 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 regulating the activities of
limited liability companies. Such execution, delivery, authentication and
performance will not conflict with, or result in a breach or violation of, any
mortgage, deed of trust, lease or other agreement or instrument to which the
Issuer is bound.

      Section 2.03. Enforcement of Representations and Warranties. The
Servicer, on behalf of and subject to the direction of the Indenture Trustee,
as pledgee of the Home Equity Loans, the Credit Enhancer or the Issuer, shall
enforce the representations and warranties of the Seller pursuant to the Home
Equity Loan Purchase Agreement. Upon the discovery by the Seller, the
Depositor, the Servicer, the Indenture Trustee, the Credit Enhancer, the
Issuer, or any Custodian of a breach of any of the representations and
warranties made in the Home Equity Loan Purchase Agreement, in respect of any
Home Equity Loan which materially and adversely affects the interests of the
Securityholders or the Credit Enhancer, the party discovering such breach
shall give prompt written notice to the other parties (any Custodian being so
obligated under a Custodial Agreement). The Servicer shall promptly notify the
Seller of such breach and request that, pursuant to the terms of the Home
Equity Loan Purchase Agreement, the Seller either (i) cure such breach in all
material respects within 60 days (with respect to a breach of the
representations and warranties contained in Section 3.1(a) of the Home Equity
Loan Purchase Agreement) or 90 days (with respect to a breach of the
representations and warranties contained in Section 3.1(b) of the Home Equity
Loan Purchase Agreement) from the earlier of the Seller's discovery of such
breach or the date the Seller was notified of such breach or (ii) purchase
such Home Equity Loan from the Issuer at the Repurchase Price and in the
manner set forth in Section 3.1(c) of the Home Equity Loan Purchase Agreement;
provided that the Seller shall, subject to compliance with all the conditions
set forth in the Home Equity Loan Purchase Agreement, have the option to
substitute an Eligible Substitute Loan or Loans, together with any
Substitution Adjustment Amounts, for such Home Equity Loan. In the event that
the Seller elects to substitute one or more Eligible Substitute Loans pursuant
to Section 3.1(c) of the Home Equity Loan Purchase Agreement, the Seller shall
deliver to the Issuer with respect to such Eligible Substitute Loans, the
original Credit Line Agreement, the Mortgage, and such other documents and
agreements as are required by the Home Equity Loan Purchase Agreement.
Payments due with respect to Eligible Substitute Loans in the month of
substitution shall not be transferred to

                                      4
<PAGE>

the Issuer and will be retained by the Servicer and remitted by the Servicer
to the Seller on the next succeeding Payment Date provided a payment at least
equal to the applicable Minimum Monthly Payment has been received by the
Issuer for the month of substitution in respect of the Home Equity Loan to be
removed. The Servicer shall amend or cause to be amended the Home Equity Loan
Schedule to reflect the removal of such Home Equity Loan and the substitution
of the Eligible Substitute Loans and the Servicer shall promptly deliver the
amended Home Equity Loan Schedule to the Owner Trustee and Indenture Trustee
together with a separate list of any Home Equity Loans so removed.

      It is understood and agreed that the obligation of the Seller to cure
such breach or purchase or substitute for such Home Equity Loan as to which
such a breach has occurred and is continuing, together with the obligation of
the Seller in the third paragraph of Section 2.1(c) of the Home Equity Loan
Purchase Agreement and the indemnification provided in Section 6.1 of the Home
Equity Loan Purchase Agreement, shall constitute the sole remedy respecting
such breach available to the Issuer and the Indenture Trustee, as pledgee of
the Home Equity Loans, against the Seller. In connection with the purchase of
or substitution for any such Home Equity Loan by the Seller, the Issuer shall
assign to the Seller all of its right, title and interest in respect of the
Home Equity Loan Purchase Agreement applicable to such Home Equity Loan. Upon
receipt of the Repurchase Price, or upon completion of such substitution, the
Servicer shall notify the Custodian and then the Custodian shall deliver the
Mortgage Files to the Servicer, together with all relevant endorsements and
assignments prepared by the Servicer which the Indenture Trustee shall
execute.

                                      5
<PAGE>

                                 ARTICLE III.

                         Administration and Servicing
                             of Home Equity Loans

      Section 3.01. The Servicer.

      (a) The Servicer shall service and administer the Home Equity Loans in a
manner consistent with the terms of this Servicing Agreement and which shall
be normal and usual in its general mortgage servicing activities and shall
have full power and authority, acting alone or through a subservicer, to do
any and all things in connection with such servicing and administration which
it may deem necessary or desirable, it being understood, however, that the
Servicer shall at all times remain responsible to the Issuer and the Indenture
Trustee, as pledgee of the Home Equity Loans and the Credit Enhancer, for the
performance of its duties and obligations hereunder in accordance with the
terms hereof. Without limiting the generality of the foregoing, the Servicer
shall continue, and is hereby authorized and empowered by the Issuer and the
Indenture Trustee, as pledgee of the Home Equity Loans, to execute and
deliver, on behalf of itself, the Issuer, the Indenture Trustee or any of
them, any and all instruments of satisfaction or cancellation, or of partial
or full release or discharge and all other comparable instruments with respect
to the Home Equity Loans and with respect to the Mortgaged Properties. The
Issuer, the Indenture Trustee and the Custodian, as applicable, shall furnish
the Servicer with any powers of attorney and other documents necessary or
appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder. On the Closing Date, the Indenture Trustee
shall deliver to the Servicer a limited power of attorney substantially in the
form of Exhibit B hereto.

      If the Mortgage relating to a Home Equity Loan did not have a Lien
senior to the Home Equity Loan on the related Mortgaged Property as of the
Cut-off Date, then the Servicer, in such capacity, may not consent to the
placing of a lien senior to that of the Mortgage on the related Mortgaged
Property. If the Mortgage relating to a Home Equity Loan had a lien senior to
the Home Equity Loan on the related Mortgaged Property as of the Cut-off Date,
then the Servicer, in such capacity, may consent to the refinancing of the
prior senior lien, provided that the following requirements are met:

            (i) the resulting Combined Loan-to-Value Ratio ("CLTV") of such
Home Equity Loan is no higher than the greater of the Combined Loan-to-Value
Ratio prior to such refinancing or a [70]% CLTV (or a [80]% CLTV for those
borrowers with a Credit Score as of the Cut-off Date of [712] or greater);
provided, however, if such refinanced mortgage loan is a "rate and term"
mortgage loan (meaning, the borrower does not receive any cash from the
refinancing), the CLTV may increase to the extent of either (a) the reasonable
closing costs of such refinancing (up to a maximum of [5]% of the CLTV) or (b)
any decrease in the value of the related Mortgaged Property, if the borrower
is not delinquent in the payment of interest or principal on such Home Equity
Loan at the time of such refinancing;

            (ii) the interest rate for the loan evidencing the refinanced
senior lien is no higher than the interest rate on the loan evidencing the
existing senior lien immediately prior to the date of such refinancing
(meaning, in the case of an adjustable rate loan, a substantially

                                      6
<PAGE>

similar index and a gross margin no higher than that of the existing senior
lien); provided, however, if the loan evidencing the existing senior lien
prior to the date of refinancing is an adjustable rate loan and the loan
evidencing the refinanced senior lien is a fixed rate loan, then the interest
rate on the loan evidencing the refinanced senior lien may be up to [2.0]%
higher than the then-current mortgage rate of the loan evidencing the existing
senior lien; and

            (iii) the loan evidencing the refinanced senior lien is not
subject to negative amortization.

      The Servicer may also, without prior approval of the Rating Agencies and
the Credit Enhancer, increase the Credit Limits on Revolving Credit Loans,
provided that (i) a new appraisal in accordance with the Servicer's
underwriting or servicing guidelines is obtained, (ii) the new CLTV of any
such Revolving Credit Loan after giving effect to such increase is less than
or equal to the CLTV of the Revolving Credit Loan as of the Cut-off Date,
(iii) the Servicer receives verbal verification of employment of the related
Mortgagor and (iv) the payment history of the related borrower is within the
underwriting parameters of the Guide. In addition, the Servicer may increase
the Credit Limits on Revolving Credit Loans without obtaining new appraisals
provided that clauses (ii) through (iv) of the preceding sentence are
satisfied and the CLTV of the Revolving Credit Loan following the increase in
the Credit Limit is less than or equal to 100.00%. In addition, such increases
without new appraisals shall be limited to no greater than [10]% of the
current Pool Balance, provided, that the principal balances of such Revolving
Credit Loans with CLTVs greater than [80]% will be limited to [3]% of the
current Pool Balance.

      In connection with servicing the Revolving Credit Loans, the Servicer
may take reasonable actions to encourage or effect the termination of Loan
Agreements that have become dormant.

      The relationship of the Servicer (and of any successor to the Servicer
as servicer under this Servicing Agreement) to the Issuer under this Servicing
Agreement is intended by the parties to be that of an independent contractor
and not that of a joint venturer, partner or agent.

      (b) With the consent of the Credit Enhancer, and subject to the notice
provisions and other conditions set forth in this Section 3.01(b), the
Servicer may enter into Subservicing Agreements with Subservicers for the
servicing and administration of certain of the Home Equity Loans. References
in this Servicing Agreement to actions taken or to be taken by the Servicer in
servicing the Home Equity Loans include actions taken or to be taken by a
Subservicer on behalf of the Servicer and any amount actually received by such
Subservicer in respect of a Home Equity Loan shall be deemed to have been
received by the Servicer whether or not actually received by the Servicer.
Each Subservicing Agreement will be upon such terms and conditions as are not
inconsistent with this Servicing Agreement and as the Servicer and the
Subservicer have agreed. With the approval of the Servicer and the Credit
Enhancer, a Subservicer may delegate its servicing obligations to third-party
servicers, but such Subservicers will remain obligated under the related
Subservicing Agreements. The Servicer and the Subservicer may enter into
amendments to the related Subservicing Agreements; provided, however, that any
such amendments shall not cause the Home Equity Loans to be serviced in a
manner that would be materially inconsistent with the standards set forth in
this Servicing Agreement. With the

                                      7
<PAGE>

consent of the Credit Enhancer, the Servicer shall be entitled to terminate
any Subservicing Agreement in accordance with the terms and conditions thereof
and without any limitation by virtue of this Servicing Agreement; provided,
however, that in the event of termination of any Subservicing Agreement by the
Servicer or the Subservicer, the Servicer shall either act as servicer of the
related Home Equity Loan or enter into a Subservicing Agreement with a
successor Subservicer which will be bound by the terms of the related
Subservicing Agreement. The Servicer shall be entitled to enter into any
agreement with a Subservicer for indemnification of the Servicer and nothing
contained in this Servicing Agreement shall be deemed to limit or modify such
indemnification.

      In the event that the rights, duties and obligations of the Servicer are
terminated hereunder, any successor to the Servicer in its sole discretion
may, to the extent permitted by applicable law, terminate the existing
Subservicing Agreement with any Subservicer in accordance with the terms of
the applicable Subservicing Agreement (but without the payment of any
termination fee) or assume the terminated Servicer's rights and obligations
under such subservicing arrangements which termination or assumption will not
violate the terms of such arrangements.

      Notwithstanding any Subservicing Agreement or any of the provisions of
this Servicing Agreement relating to agreements or arrangements between the
Servicer and a Subservicer or reference to actions taken through a Subservicer
or otherwise, the Servicer shall remain obligated and primarily liable for the
servicing and administering of the Home Equity Loans in accordance with the
provisions of this Servicing Agreement without diminution of such obligation
or liability by virtue of such Subservicing Agreements or arrangements or by
virtue of indemnification from the Subservicer and to the same extent and
under the same terms and conditions as if the Servicer alone were servicing
and administering the Home Equity Loans. For purposes of this Servicing
Agreement, the Servicer shall be deemed to have received payments on Home
Equity Loans when the Subservicer has received such payments.

      Any Subservicing Agreement that may be entered into and any transactions
or services relating to the Home Equity Loans involving a Subservicer in its
capacity as such and not as an originator shall be deemed to be between the
Subservicer and the Servicer alone, and none of the Indenture Trustee, the
Credit Enhancer or the Securityholders shall be deemed parties thereto or
shall have any claims, rights, obligations, duties or liabilities with respect
to the Subservicer. The Servicer shall be solely liable for all fees owed by
it to any Subservicer irrespective of whether the Servicer's compensation
pursuant to this Servicing Agreement is sufficient to pay such fees.

      As part of its servicing activities hereunder, the Servicer, for the
benefit of the Trust, the Securityholders and the Credit Enhancer, shall use
reasonable efforts to enforce the obligations of each Subservicer under the
related Subservicing Agreement, to the extent that the non-performance of any
such obligation would have a material adverse effect on a Home Equity Loan.
Such enforcement, including, without limitation, the legal prosecution of
claims, termination of Subservicing Agreements and the pursuit of other
appropriate remedies, shall be in such form and carried out to such an extent
and at such time as the Servicer, in its good faith business judgment, would
require were it the owner of the related Home Equity Loans. The Servicer shall
pay the costs of such enforcement at its own expense, and shall be reimbursed

                                      8
<PAGE>

therefor only (i) from a general recovery resulting from such enforcement to
the extent, if any, that such recovery exceeds all amounts due in respect of
the related Home Equity Loan or (ii) from a specific recovery of costs,
expenses or attorneys fees against the party against whom such enforcement is
directed.

      The Servicer shall give notice to the Depositor and the Indenture
Trustee of any Subservicer and Subservicing Agreement, which notice shall
contain all information (including without limitation a copy of the
Subservicing Agreement) reasonably necessary to enable the Depositor, pursuant
to Section 9.03, to accurately and timely report the event under Item 6.02 of
Form 8-K pursuant to the Exchange Act (if such reports under the Exchange Act
are required to be filed under the Exchange Act). No Subservicing Agreement
shall be effective until [30] days after such written notice is received by
both the Depositor and the Indenture Trustee. The Indenture Trustee shall not
be required to review or consent to such Subservicing Agreements and shall
have no liability in connection therewith. The Servicer shall cause any
Subservicer engaged by the Servicer (or by any Subservicer) for the benefit of
the Depositor, the Issuer and the Indenture Trustee to comply with the
provisions of this Section 3.01 and with Sections 3.10, 3.11, 6.02 and 6.06 of
this Agreement to the same extent as if such Subservicer were the Servicer,
and to provide the information required with respect to such Subservicer under
Article IX of this Agreement. The Servicer shall be responsible for obtaining
from each such Subservicer and delivering to applicable Persons any servicer
compliance statement required to be delivered by such Subservicer under
Section 3.10 and any assessment of compliance report and related accountant's
attestation required to be delivered by such Subservicer under Section 3.11,
in each case as and when required to be delivered. In addition, any
termination, resignation or removal of a Subservicer shall be not be effective
until 30 days after written notice is received by both the Depositor and the
Indenture Trustee that contains all information reasonably necessary to enable
the Indenture Trustee, pursuant to Section 9.03, to accurately and timely
report the event under Item 6.02 of Form 8-K pursuant to the Exchange Act (if
such reports under the Exchange Act are required to be filed under the
Exchange Act).

      Subject to the conditions set forth below in this Section 3.01(b), the
Servicer and any Subservicer is permitted to utilize one or more
Subcontractors to perform certain of its obligations hereunder. The Servicer
shall promptly upon request provide to the Depositor a written description (in
form and substance satisfactory to the Depositor) of the role and function of
each Subcontractor utilized by the Servicer or any such Subservicer,
specifying, not later than the date specified for delivery of the annual
report on assessment of compliance set forth in Section 3.11, (i) the identity
of each such Subcontractor, if any, that is "participating in the servicing
function" within the meaning of Item 1122 of Regulation AB, and (ii) which
elements of the Servicing Criteria will be addressed in assessments of
compliance provided by each Subcontractor identified pursuant to clause (i) of
this paragraph. As a condition to the utilization by the Servicer or any such
Subservicer of any Subcontractor determined to be "participating in the
servicing function" within the meaning of Item 1122 of Regulation AB, the
Servicer shall cause any such Subcontractor used by the Servicer (or by any
such Subservicer) for the benefit of the Depositor, the Issuer and the
Indenture Trustee to comply with the provisions of Section 3.11 of this
Agreement to the same extent as if such Subcontractor were the Servicer. The
Servicer shall be responsible for obtaining from each such Subcontractor and
delivering to the applicable Persons any assessment of compliance report and
related accountant's attestation required to be

                                      9
<PAGE>

delivered by such Subcontractor under Section 3.11, in each case as and when
required to be delivered.

      Notwithstanding the foregoing, if the Servicer engages a Subcontractor
in connection with the performance of any of its duties under this Agreement,
the Servicer shall be responsible for determining whether such Subcontractor
is a "servicer" within the meaning of Item 1101 of Regulation AB and whether
any such affiliate or third-party vendor meets the criteria in Item
1108(a)(2)(i) through (iii) of Regulation AB. If the Servicer determines,
pursuant to the preceding sentence, that such Subcontractor is a "servicer"
within the meaning of Item 1101 of Regulation AB and meets the criteria in
Item 1108(a)(2)(i) through (iii) of Regulation AB, then such Subcontractor
shall be deemed to be a Subservicer for purposes of this Agreement, the
engagement of such Subservicer shall not be effective unless and until notice
is given pursuant to the second preceding paragraph of this Section 3.01(b)
and the Servicer shall comply with this Section 3.01(b) with respect thereto.

      Section 3.02. Collection of Certain Home Equity Loan Payments.

      (a) The Servicer shall make reasonable efforts to collect all payments
called for under the terms and provisions of the Home Equity Loans, and shall,
to the extent such procedures shall be consistent with this Servicing
Agreement follow such collection procedures as shall be normal and usual in
its general mortgage servicing activities. Consistent with the foregoing, and
without limiting the generality of the foregoing, the Servicer may in its
discretion (i) waive any late payment charge, penalty interest or other fees
which may be collected in the ordinary course of servicing such Home Equity
Loan and (ii) arrange with a Mortgagor a schedule for the payment of principal
and interest due and unpaid; provided such arrangement is generally consistent
with the Servicer's policies with respect to home equity loans generally;
provided, further, that notwithstanding such arrangement such Home Equity
Loans will be included in the information regarding delinquent Home Equity
Loans set forth in the Servicing Report. The Servicer may also extend the Due
Date for payment due on a Home Equity Loan in accordance with its standard
servicing procedures, provided, however, that the Servicer shall first
determine that any such waiver or extension will not impair the coverage of
any related insurance policy or materially adversely affect the lien of the
related Mortgage or the interests of the Securityholders or the Credit
Enhancer. Consistent with the terms of this Servicing Agreement, the Servicer
may also waive, modify or vary any term of any Home Equity Loan (including
reduce the Credit Limit with respect to any Revolving Credit Loan) or consent
to the postponement of strict compliance with any such term or in any manner
grant indulgence to any Mortgagor if in the Servicer's determination such
waiver, modification, postponement or indulgence is not materially adverse to
the interests of the Securityholders or the Credit Enhancer, provided,
however, that the Servicer may not modify or permit any Subservicer to modify
any Home Equity Loan (including without limitation any modification that would
change the Loan Rate, forgive the payment of any principal or interest (unless
in connection with the liquidation of the related Home Equity Loan) or extend
the final maturity date of such Home Equity Loan) unless such Home Equity Loan
is in default or, in the judgment of the Servicer, such default is reasonably
foreseeable. The general terms of any waiver, modification, postponement or
indulgence with respect to any of the Home Equity Loans will be included in
the Servicing Report, and such Home Equity Loans will not be considered
"delinquent" for the purposes of the Basic Documents, so long as the Mortgagor
complies with the terms of such waiver,

                                      10
<PAGE>

modification, postponement or indulgence. Notwithstanding the foregoing, the
Servicer in its sole discretion (i) may permit the Mortgagor (or may enter
into a modification agreement which will allow the Mortgagor) to make monthly
payments, with respect to any Billing Cycle during the related Draw Period, in
a minimum amount that will be equal to the related finance charge for such
Billing Cycle and (ii) may reduce the amount of the Credit Limit with respect
to any Revolving Credit Loans (to an amount no less than the then current
Principal Balance of such Revolving Credit Loan) in connection with any
refinancing of a senior lien pursuant to the second paragraph of Section
3.01(a) of this Servicing Agreement.

      (b) The Servicer shall establish a Collection Account in the name of the
Indenture Trustee on behalf of the Noteholders and the Credit Enhancer, which
shall be an Eligible Account in which the Servicer shall deposit or cause to
be deposited any amounts representing payments and collections in respect of
the Home Equity Loans received by it subsequent to the Cut-off Date (other
than in respect of the payments referred to in the paragraph following
subsection (viii) below) within [__] Business Days following receipt thereof
(or otherwise on or prior to the Closing Date), including the following
payments and collections received or made by it (without duplication):

            (i) all payments of principal or interest on the Home Equity Loans
received by the Servicer, net of the Servicing Fee;

            (ii) the aggregate Repurchase Price of the Home Equity Loans
purchased by the Servicer pursuant to Section 3.1 (c) of the Home Equity Loan
Purchase Agreement;

            (iii) Net Liquidation Proceeds net of any related Foreclosure
Profit;

            (iv) all proceeds of any Home Equity Loans repurchased by the
Seller pursuant to the Home Equity Loan Purchase Agreement, and all
Substitution Adjustment Amounts required to be deposited in connection with
the substitution of an Eligible Substitute Loan pursuant to the Home Equity
Loan Purchase Agreement;

            (v) insurance proceeds, other than Net Liquidation Proceeds,
resulting from any insurance policy maintained on a Mortgaged Property;

            (vi) amounts required to be paid by the Servicer pursuant to
Section 8.08;

            (vii) any blanket policy deductible; and

            (viii) any investment losses for amounts on deposit in the
Collection Account;

provided, however, that with respect to each Collection Period, the Servicer
shall be permitted to retain from payments in respect of interest on the Home
Equity Loans, the Servicing Fee for such Collection Period. All amounts
deposited in the Collection Account shall be held by the Servicer in trust for
the Securityholders and the Credit Enhancer until disbursed in accordance with
this Servicing Agreement. The foregoing requirements respecting deposits to
the Collection Account are exclusive, it being understood that, without
limiting the generality of the foregoing, the Servicer need not deposit in the
Collection Account amounts representing Foreclosure Profits, fees (including
annual fees) or late charge penalties, payable by Mortgagors, or amounts
received

                                      11
<PAGE>

by the Servicer for the accounts of Mortgagors for application towards the
payment of taxes, insurance premiums, assessments and similar items. In the
event any amount not required to be deposited in the Collection Account is so
deposited, the Servicer may at any time withdraw such amount from the
Collection Account, any provision herein to the contrary notwithstanding. The
Servicer shall retain all Foreclosure Profits (to the extent permitted by law)
as additional servicing compensation.

      The Servicer may cause the institution maintaining the Collection
Account to invest any funds in the Collection Account in Permitted Investments
(including obligations of the Servicer or any of its Affiliates, if such
obligations otherwise qualify as Permitted Investments), which shall mature
not later than the Determination Date related to the following Payment Date
and shall not be sold or disposed of prior to its maturity. Except as provided
above, all income and gain realized from any such investment shall inure to
the benefit of the Servicer and shall be subject to its withdrawal or order
from time to time. The amount of any losses incurred in respect of the
principal amount of any such investments shall be deposited in the Collection
Account by the Servicer out of its own funds immediately as realized.

      (c) The Servicer will require each Subservicer to hold all funds
constituting collections on the Home Equity Loans, pending remittance thereof
to the Servicer, in one or more accounts meeting the requirements of an
Eligible Account, and invested in Permitted Investments.

      Section 3.03. Withdrawals from the Collection Account. The Servicer
shall, from time to time as provided herein, make withdrawals from the
Collection Account of amounts on deposit therein pursuant to Section 3.02 that
are attributable to the Home Equity Loans for the following purposes:

            (i) to remit to the Indenture Trustee for deposit in the Payment
Account, on the related Determination Date for each Payment Date, an amount
equal to the Security Collections for such Payment Date;

            (ii) prior to either a Rapid Amortization Event or the Collection
Period preceding the end of the Managed Amortization Period, to pay to the
Seller, with respect to the Revolving Credit Loans, the amount of any
Additional Balances as and when created during the related Collection Period,
provided, that, with respect to the Revolving Credit Loans, the aggregate
amount so paid to the Seller in respect of Additional Balances at any time
during any Collection Period shall not exceed the amount of Principal
Collections theretofore received for such Collection Period;

            (iii) to the extent deposited to the Collection Account, to
reimburse itself or the related Subservicer for previously unreimbursed
expenses incurred in maintaining individual insurance policies pursuant to
Section 3.04, or Liquidation Expenses, paid pursuant to Section 3.07 or
otherwise reimbursable pursuant to the terms of this Servicing Agreement (to
the extent not payable pursuant to Section 3.09), such withdrawal right being
limited to amounts received on particular Home Equity Loans (other than any
Repurchase Price in respect thereof) which represent late recoveries of the
payments for which such advances were made, or from related Liquidation
Proceeds or the proceeds of the purchase of such Home Equity Loan;

                                      12
<PAGE>

            (iv) to pay to itself out of each payment received on account of
interest on a Home Equity Loan as contemplated by Section 3.09, an amount
equal to the Servicing Fee (to the extent not retained pursuant to Section
3.02);

            (v) to the extent deposited in the Collection Account to pay to
itself as additional servicing compensation any interest or investment income
earned on funds deposited in the Collection Account that it is entitled to
withdraw pursuant to Sections 3.02(b) and 5.01;

            (vi) to the extent deposited in the Collection Account, to pay to
itself as additional servicing compensation any Foreclosure Profits (to the
extent permitted by law); and

            (vii) to withdraw any other amount deposited in the Collection
Account that was not required to be deposited therein pursuant to Section
3.02.

Since, in connection with withdrawals pursuant to clauses (iii), (iv) and
(vi), the Servicer's entitlement thereto is limited to collections or other
recoveries on the related Home Equity Loan, the Servicer shall keep and
maintain separate accounting, on a Home Equity Loan by Home Equity Loan basis,
for the purpose of justifying any withdrawal from the Collection Account
pursuant to such clauses. Notwithstanding any other provision of this
Servicing Agreement, the Servicer shall be entitled to reimburse itself for
any previously unreimbursed expenses incurred pursuant to Section 3.07 or
otherwise reimbursable pursuant to the terms of this Servicing Agreement that
the Servicer determines to be otherwise nonrecoverable (except with respect to
any Home Equity Loan as to which the Repurchase Price has been paid), by
withdrawal from the Collection Account of amounts on deposit therein
attributable to the Home Equity Loans on any Business Day prior to the
Determination Date following the date of such calculation.

      Section 3.04. Maintenance of Hazard Insurance; Property Protection
Expenses. The Servicer shall cause to be maintained for each Home Equity Loan
that is either (a) in a first lien position or (b) has a Credit Limit at
origination in excess of $[__] hazard insurance naming the Servicer or related
Subservicer as loss payee thereunder providing extended coverage in an amount
which is at least equal to the lesser of (i) the maximum insurable value of
the improvements securing such Home Equity Loan from time to time or (ii) the
combined principal balance owing on such Home Equity Loan and any mortgage
loan senior to such Home Equity Loan from time to time; provided, however,
that such coverage may not be less than the minimum amount required to fully
compensate for any loss or damage on a replacement cost basis. The Servicer
shall also cause to be maintained on property acquired upon foreclosure, or
deed in lieu of foreclosure, of any Home Equity Loan, fire insurance with
extended coverage in an amount sufficient to cover the value of the related
Mortgaged Property (less the amount of any deductible). Amounts collected by
the Servicer under any such policies (other than amounts to be applied to the
restoration or repair of the related Mortgaged Property or property thus
acquired or amounts released to the Mortgagor in accordance with the
Servicer's normal servicing procedures) shall be deposited in the Collection
Account to the extent called for by Section 3.02. The Servicer shall be under
no obligation to require that any Mortgagor maintain earthquake or other
additional insurance and shall be under no obligation itself to maintain any
such additional insurance on property acquired in respect of a Home Equity
Loan, other than pursuant to such applicable laws and regulations as shall at
any time be in force and as shall require such additional insurance. If the
Servicer shall obtain and maintain a blanket policy

                                      13
<PAGE>

consistent with its general mortgage servicing activities insuring against
hazard losses on all of the Home Equity Loans, it shall conclusively be deemed
to have satisfied its obligations as set forth in the first sentence of this
Section 3.04, it being understood and agreed that such policy may contain a
deductible clause, in which case the Servicer shall, in the event that there
shall not have been maintained on the related Mortgaged Property a policy
complying with the first sentence of this Section 3.04 and there shall have
been a loss which would have been covered by such policy, deposit in the
Collection Account the amount not otherwise payable under the blanket policy
because of such deductible clause. Any such deposit by the Servicer shall be
made on the last Business Day of the Collection Period in the month in which
payments under any such policy would have been deposited in the Collection
Account. In connection with its activities as servicer of the Home Equity
Loans, the Servicer agrees to present, on behalf of itself, the Issuer and the
Indenture Trustee, claims under any such blanket policy.

      Section 3.05. Modification Agreements. The Servicer shall be entitled to
(A) execute assumption agreements, substitution agreements, and instruments of
satisfaction or cancellation or of partial or full release or discharge, or
any other document contemplated by this Servicing Agreement and other
comparable instruments with respect to the Home Equity Loans and with respect
to the Mortgaged Properties subject to the Mortgages (and the Issuer and the
Indenture Trustee each shall promptly execute any such documents on request of
the Servicer) and (B) approve the granting of an easement thereon in favor of
another Person, any alteration or demolition of the related Mortgaged Property
or other similar matters, if it has determined, exercising its good faith
business judgment in the same manner as it would if it were the owner of the
related Home Equity Loan, that the security for, and the timely and full
collectability of, such Home Equity Loan would not be adversely affected
thereby. A partial release pursuant to this Section 3.05 shall be permitted
only if the Combined Loan-to-Value Ratio for such Home Equity Loan after such
partial release does not exceed the Combined Loan-to-Value Ratio for such Home
Equity Loan as of the Cut-off Date. Any fee collected by the Servicer or the
related Subservicer for processing such request will be retained by the
Servicer or such Subservicer as additional servicing compensation.

      Section 3.06. Trust Estate; Related Documents.

      (a) When required by the provisions of this Servicing Agreement, the
Issuer or the Indenture Trustee shall execute instruments to release property
from the terms of the Trust Agreement, Indenture or Custodial Agreement, as
applicable, or convey the Issuer's or the Indenture Trustee's interest in the
same, in a manner and under circumstances which are not inconsistent with the
provisions of this Servicing Agreement. No party relying upon an instrument
executed by the Issuer or the Indenture Trustee as provided in this Section
3.06 shall be bound to ascertain the Issuer's or the Indenture Trustee's
authority, inquire into the satisfaction of any conditions precedent or see to
the application of any moneys.

      (b) If from time to time the Servicer shall deliver to the Custodian
copies of any written assurance, assumption agreement or substitution
agreement or other similar agreement pursuant to Section 3.05, the Custodian
shall check that each such document purports to be an original executed copy
(or a copy of the original executed document if the original executed copy has
been submitted for recording and has not yet been returned) and, if so, shall
file such documents, and upon receipt of the original executed copy from the
applicable recording office

                                      14
<PAGE>

or receipt of a copy thereof certified by the applicable recording office
shall file such originals or certified copies with the Related Documents. If
any such documents submitted by the Servicer do not meet the above
qualifications, such documents shall promptly be returned by the Custodian to
the Servicer, with a direction to the Servicer to forward the correct
documentation.

      (c) Upon receipt of two copies (one of which will be returned to the
Servicer with the related Mortgage File) of a Request for Release from the
Servicer, substantially in the form of Exhibit C which shall be signed by a
Servicing Officer or in a mutually agreeable format, which in lieu of a
signature on its face will originate from a Servicing Officer, to the effect
that a Home Equity Loan has been the subject of a final payment or a
prepayment in full and the related Home Equity Loan has been terminated or
that substantially all Liquidation Proceeds which have been determined by the
Servicer in its reasonable judgment to be finally recoverable have been
recovered, and upon deposit to the Collection Account of such final monthly
payment, prepayment in full together with accrued and unpaid interest to the
date of such payment with respect to such Home Equity Loan or, if applicable,
Liquidation Proceeds, the Custodian shall promptly release the related
Mortgage File to the Servicer, upon request of the Servicer. If from time to
time and as appropriate for the servicing or foreclosure of any Home Equity
Loan, the Servicer requests the Custodian to release the Mortgage File and
delivers to the Custodian two copies of a Request for Release reasonably
satisfactory to the Custodian and signed by a Responsible Officer of the
Servicer, the Custodian shall release the related Mortgage File to the
Servicer. If such Home Equity Loans shall be liquidated and the Custodian
receives a certificate from the Servicer as provided above, then, upon request
of the Servicer, the Custodian shall release the Mortgage File to the
Servicer.

      Section 3.07. Realization Upon Defaulted Home Equity Loans. With respect
to those of the Home Equity Loans which become and continue in default, the
Servicer will decide whether to (i) foreclose upon the Mortgaged Properties
securing such Home Equity Loans, (ii) write off the unpaid principal balance
of the Home Equity Loans as bad debt, (iii) take a deed in lieu of
foreclosure, (iv) accept a short sale, (v) arrange for a repayment plan, (vi)
agree to a modification in accordance with this Servicing Agreement, or (vii)
take an unsecured note or substitute a new lien, in each case subject to the
rights of any related first lien holder; provided that in connection with the
foregoing if the Servicer has actual knowledge that any Mortgaged Property is
affected by hazardous or toxic wastes or substances and that the acquisition
of such Mortgaged Property would not be commercially reasonable, then the
Servicer will not cause the Issuer or the Indenture Trustee to acquire title
to such Mortgaged Property in a foreclosure or similar proceeding. In
connection with such decision, the Servicer shall follow such practices
(including, in the case of any default on a related senior mortgage loan, the
advancing of funds to correct such default if deemed to be appropriate by the
Servicer) and procedures as it shall deem necessary or advisable and as shall
be normal and usual in its general mortgage servicing activities; provided
that the Servicer shall not be liable in any respect hereunder if the Servicer
is acting in connection with any such foreclosure or attempted foreclosure
which is not completed or other conversion in a manner that is consistent with
the provisions of this Servicing Agreement. The foregoing is subject to the
proviso that the Servicer shall not be required to expend its own funds in
connection with any foreclosure or attempted foreclosure or towards the
correction of any default on a related senior mortgage loan or restoration of
any property unless it shall determine that such expenditure will increase Net
Liquidation Proceeds. In the event of a determination by the Servicer that any
such expenditure previously made pursuant to this Section

                                      15
<PAGE>

3.07 will not be reimbursable from Net Liquidation Proceeds, the Servicer
shall be entitled to reimbursement of its funds so expended pursuant to
Section 3.03.

      Notwithstanding any provision of this Servicing Agreement, a Home Equity
Loan may be deemed to be finally liquidated if substantially all amounts
expected by the Servicer to be received in connection with the related
defaulted Home Equity Loan have been received; provided, however, that any
subsequent collections with respect to any such Home Equity Loan shall be
deposited to the Collection Account. For purposes of determining the amount of
any Liquidation Proceeds or Insurance Proceeds, or other unscheduled
collections, the Servicer may take into account minimal amounts of additional
receipts expected to be received or any estimated additional liquidation
expenses expected to be incurred in connection with the related defaulted Home
Equity Loan.

      In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be issued to the Indenture Trustee, who shall hold the same on behalf of
the Issuer in accordance with Section 3.13 of the Indenture. Notwithstanding
any such acquisition of title and cancellation of the related Home Equity
Loan, such Mortgaged Property shall (except as otherwise expressly provided
herein) be considered to be an outstanding Home Equity Loan held as an asset
of the Issuer until such time as such property shall be sold. Consistent with
the foregoing for purposes of all calculations hereunder, so long as such
Mortgaged Property shall be considered to be an outstanding Home Equity Loan
it shall be assumed that, notwithstanding that the indebtedness evidenced by
the related Credit Line Agreement shall have been discharged, such Credit Line
Agreement in effect at the time of any such acquisition of title before any
adjustment thereto by reason of any bankruptcy or similar proceeding or any
moratorium or similar waiver or grace period will remain in effect.

      Any proceeds from foreclosure proceedings or the purchase or repurchase
of any Home Equity Loan pursuant to the terms of this Servicing Agreement, as
well as any recovery resulting from a collection of Liquidation Proceeds or
Insurance Proceeds, will be applied in the following order of priority: first,
to reimburse the Servicer in accordance with Section 3.03(vii) and this
Section 3.07; second, to the Servicer, all Servicing Fees payable therefrom
(to the extent not retained pursuant to Section 3.02(b)); third, to the
Payment Account to the extent of accrued and unpaid interest to the Payment
Date on the related Home Equity Loan, at the Loan Rate (less the Servicing Fee
Rate); fourth, to the Payment Account as a recovery of principal on the Home
Equity Loan; and fifth, to Foreclosure Profits (to the extent permitted by
law).

      Section 3.08. Issuer and Indenture Trustee to Cooperate. On or before
each Determination Date, the Servicer will notify the Indenture Trustee and
the Custodian, with a copy to the Issuer, of the termination of or the payment
in full and the termination of any Home Equity Loan during the preceding
Collection Period. Upon receipt of payment in full, the Servicer is authorized
to execute, pursuant to the authorization contained in Section 3.01, if the
assignments of Mortgage have been recorded if required under the Home Equity
Loan Purchase Agreement, an instrument of satisfaction regarding the related
Mortgage, which instrument of satisfaction shall be recorded by the Servicer
if required by applicable law and be delivered to the Person entitled thereto.
It is understood and agreed that no expenses incurred in connection with such
instrument of satisfaction or transfer shall be reimbursed from amounts
deposited in the Collection Account. From time to time and as appropriate for
the servicing or foreclosure of

                                      16
<PAGE>

any Home Equity Loan, the Indenture Trustee or the Custodian shall, upon
request of the Servicer and delivery to the Indenture Trustee or Custodian,
with a copy to the Issuer, of two copies (one of which will be returned to the
Servicer with the related Mortgage File) of a Request for Release, in the form
annexed hereto as Exhibit C, which shall be signed by a Servicing Officer or
in a mutually agreeable electronic format which in lieu of a signature on its
face will originate from a Servicing Officer, release or cause to be released
the related Mortgage File to the Servicer and the Issuer or Indenture Trustee
shall promptly execute such documents, in the forms provided by the Servicer,
as shall be necessary for the prosecution of any such proceedings or the
taking of other servicing actions. Such trust receipt shall obligate the
Servicer to return the Mortgage File to the Indenture Trustee or the Custodian
(as specified in such receipt) when the need therefor by the Servicer no
longer exists unless the Home Equity Loan shall be liquidated, in which case,
upon receipt of a certificate of a Servicing Officer similar to that
hereinabove specified, the trust receipt shall be released to the Servicer.

      In order to facilitate the foreclosure of the Mortgage securing any Home
Equity Loan that is in default following recordation of the assignments of
Mortgage in accordance with the provisions of the Home Equity Loan Purchase
Agreement, the Indenture Trustee or the Issuer shall, if so requested in
writing by the Servicer, promptly execute an appropriate assignment in the
form provided by the Servicer to assign such Home Equity Loan for the purpose
of collection to the Servicer (any such assignment shall unambiguously
indicate that the assignment is for the purpose of collection only), and, upon
such assignment, such assignee for collection will thereupon bring all
required actions in its own name and otherwise enforce the terms of the Home
Equity Loan and deposit or credit the Net Liquidation Proceeds, exclusive of
Foreclosure Profits, received with respect thereto in the Collection Account.
In the event that all delinquent payments due under any such Home Equity Loan
are paid by the Mortgagor and any other defaults are cured, then the assignee
for collection shall promptly reassign such Home Equity Loan to the Indenture
Trustee and return the related Mortgage File to the Custodian.

      In connection with the Issuer's obligation to cooperate as provided in
this Section 3.08 and all other provisions of this Servicing Agreement
requiring the Issuer to authorize or permit any actions to be taken with
respect to the Home Equity Loans, the Indenture Trustee, as pledgee of the
Home Equity Loans and as assignee of record of the Home Equity Loans on behalf
of the Issuer pursuant to Section 3.13 of the Indenture, expressly agrees, on
behalf of the Issuer, to take all such actions on behalf of the Issuer and to
promptly execute and return all instruments reasonably required by the
Servicer in connection therewith; provided that if the Servicer shall request
a signature of the Indenture Trustee, on behalf of the Issuer, the Servicer
will deliver to the Indenture Trustee an Officer's Certificate stating that
such signature is necessary or appropriate to enable the Servicer to carry out
its servicing and administrative duties under this Servicing Agreement.

      Section 3.09. Servicing Compensation; Payment of Certain Expenses by
Servicer. The Servicer shall be entitled to receive the Servicing Fee in
accordance with Section 3.03 (or retain such Servicing Fee pursuant to Section
3.02) as compensation for its services in connection with servicing the Home
Equity Loans. Moreover, additional servicing compensation in the form of late
payment charges and other receipts not required to be deposited in the
Collection Account as specified in Section 3.02 shall be retained by the
Servicer. The Servicer shall be required to pay all expenses incurred by it in
connection with its activities hereunder (including payment of all

                                      17
<PAGE>

other fees and expenses not expressly stated hereunder to be for the account
of the Securityholders, including, without limitation, the Indenture Trustee
and any Custodian) and shall not be entitled to reimbursement therefor.

      Section 3.10. Annual Statement as to Compliance.

      (a) The Servicer shall deliver or cause to be delivered, and shall cause
each Subservicer engaged by the Servicer to deliver or cause to be delivered
to the Depositor, the Underwriter, and the Indenture Trustee on or before
March [1] of each calendar year, commencing in 20[__], an Officer's
Certificate stating, as to each signatory thereof, that (i) a review of the
activities of the Servicer or Subservicer, as applicable, during the preceding
calendar year and of its performance under this Agreement or the applicable
Subservicing Agreement, as the case may be, has been made under such officers'
supervision, and (ii) to the best of such officers' knowledge, based on such
review, the Servicer or Subservicer, as applicable, has fulfilled all of its
obligations under this Agreement or the applicable Subservicing Agreement, as
the case may be, in all material respects, throughout such year, or, if there
has been a default in the fulfillment of any such obligation in any material
respect, specifying each such default known to such officers and the nature
and status thereof. Promptly after receipt of each such Officer's Certificate,
the Depositor shall review each such Officer's Certificate and, if applicable,
consult with the Indenture Trustee, Servicer or Subservicer as to the nature
of any defaults by the Indenture Trustee, Servicer or any related Subservicer
in the fulfillment of any of the Indenture Trustee's, the Servicer's or any
related Subservicer's obligations. The obligations of the Indenture Trustee,
the Servicer and each Subservicer under this Section apply to the Indenture
Trustee, the Servicer and each Subservicer that acted as Indenture Trustee or
serviced a Home Equity Loan, as applicable, during the applicable period,
whether or not the Indenture Trustee, the Servicer or such Subservicer is
acting as the Indenture Trustee, Servicer or Subservicer at the time such
Officer's Certificate is required to be delivered.

      (b) The Servicer shall deliver to the Issuer and the Indenture Trustee,
with a copy to the Credit Enhancer, promptly after having obtained knowledge
thereof, but in no event later than [__] Business Days thereafter, written
notice by means of an Officer's Certificate of any event which with the giving
of notice or the lapse of time or both, would become a Servicing Default.

      (c) Upon the reasonable request of the Indenture Trustee, the Servicer
will provide to the Indenture Trustee a copy of its financial statements for
the most recent fiscal year; provided that such financial statements are
available for distribution.

      Section 3.11. Annual Reports on Assessment of Compliance with Servicing
Criteria; Annual Independent Public Accountants' Attestation Report. (a) Not
later than March [1] of each calendar year commencing in 20[__], the Servicer
and the [Custodian] shall deliver, and the Servicer shall cause each
Subservicer engaged by the Servicer and the Servicer shall cause each
Subcontractor utilized by the Servicer (or by any Subservicer) and determined
by the Depositor pursuant to Section 3.01(b) to be "participating in a
servicing function" within the meaning of Item 1122 of Regulation AB (in each
case, a "Servicing Function Participant"), to deliver, each at its own
expense, to the Depositor and the Indenture Trustee, a report on an assessment
of compliance with the Servicing Criteria applicable to it that contains (A) a
statement by such

                                      18
<PAGE>

party of its responsibility for assessing compliance with the Servicing
Criteria applicable to it, (B) a statement that such party used the Servicing
Criteria to assess compliance with the applicable Servicing Criteria, (C) such
party's assessment of compliance with the applicable Servicing Criteria as of
and for the period ending the end of the fiscal year covered by the Form 10-K
required to be filed pursuant to Section 9.04, including, if there has been
any material instance of noncompliance with the applicable Servicing Criteria,
a discussion of each such failure and the nature and status thereof, and (D) a
statement that a registered public accounting firm has issued an attestation
report on such Person's assessment of compliance with the applicable Servicing
Criteria as of and for such period. Each such assessment of compliance report
shall be addressed to the Depositor and signed by an authorized officer of the
applicable company, and shall address each of the applicable Servicing
Criteria set forth on Appendix E hereto, or as set forth in the notification
furnished to the Depositor and the Indenture Trustee pursuant to Section
3.11(c). The Servicer and the [Custodian] hereby acknowledge and agree that
their respective assessments of compliance will cover the items identified on
Appendix E hereto as being covered by such party. The parties to this
Agreement acknowledge that where a particular Servicing Criteria has multiple
components, each party's assessment of compliance (and related attestation of
compliance) will relate only to those components that are applicable to such
party. Promptly after receipt of each such report on assessment of compliance,
the Depositor shall review each such report and, if applicable, consult with
the Servicer or the [Custodian] as to the nature of any material instance of
noncompliance with the Servicing Criteria applicable to it (and each
Subservicer or Servicing Function Participant engaged or utilized by the
Servicer, the [Custodian] or a Subservicer, as applicable), as the case may
be.

      (b) Not later than March [1] of each calendar year commencing in 2007,
the Servicer and the [Custodian] shall cause, and each Subservicer engaged by
the Servicer, and the Servicer shall cause each Servicing Function Participant
utilized by the Servicer (or by any Subservicer engaged by the Servicer), to
cause, each at its own expense, a registered public accounting firm (which may
also render other services to such party) and that is a member of the American
Institute of Certified Public Accountants to furnish a report to the Indenture
Trustee and the Depositor, with a copy to the Underwriter, to the effect that
(i) it has obtained a representation regarding certain matters from the
management of such Person, which includes an assertion that such Person has
complied with the Servicing Criteria applicable to it pursuant to Section
3.11(a) and (ii) on the basis of an examination conducted by such firm in
accordance with standards for attestation engagements issued or adopted by the
PCAOB, that attests to and reports on such Person's assessment of compliance
with the Servicing Criteria applicable to it. In the event that an overall
opinion cannot be expressed, such registered public accounting firm shall
state in such report why it was unable to express such an opinion. Each such
related accountant's attestation report shall be made in accordance with Rules
1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the
Exchange Act. Such report must be available for general use and not contain
restricted use language. Promptly after receipt of each such accountants'
attestation report, the Depositor shall review the report and, if applicable,
consult with the Servicer or the [Custodian] as to the nature of any defaults
by the Servicer or the [Custodian] (and each Subservicer or Servicing Function
Participant engaged or utilized by the Servicer or the [Custodian], as
applicable, or by any Subservicer engaged by the Servicer), as the case may
be, as the case may be, in the fulfillment of any of the Servicers', the
[Custodian's] or the applicable Subservicer's or Servicing Function
Participant's obligations hereunder or under any applicable sub servicing
agreement.

                                      19
<PAGE>

      (c) No later than March [1] of each fiscal year, commencing in 20[__],
the Servicer shall notify the Indenture Trustee and the Depositor as to the
name of each Subservicer engaged by it and each Servicing Function Participant
utilized by it and by each Subservicer engaged by it, but only to the extent
there has been a change in the information in such notification from notices
previously delivered and the Indenture Trustee shall notify the Depositor as
to the name of each Servicing Function Participant utilized by it and each
such notice will specify what specific Servicing Criteria will be addressed in
the report on assessment of compliance prepared by such Servicing Function
Participant in each case, to the extent of any change from the prior year's
notice, if any. When a Servicer or the [Custodian] submits its assessment
pursuant to Section 3.11(a), the Servicer and the [Custodian], as applicable,
will also at such time include the assessment (and related attestation
pursuant to Section 3.11(b)) of each Servicing Function Participant utilized
by it and by each Subservicer engaged by it.

      Section 3.12. Access to Certain Documentation and Information Regarding
the Home Equity Loans. Whenever required by statute or regulation, the
Servicer shall provide to the Credit Enhancer, any Securityholder upon
reasonable request (or a regulator for a Securityholder) or the Indenture
Trustee, reasonable access to the documentation regarding the Home Equity
Loans such access being afforded without charge but only upon reasonable
request and during normal business hours at the offices of the Servicer.
Nothing in this Section 3.12 shall derogate from the obligation of the
Servicer to observe any applicable law prohibiting disclosure of information
regarding the Mortgagors and the failure of the Servicer to provide access as
provided in this Section 3.12 as a result of such obligation shall not
constitute a breach of this Section 3.12.

      Section 3.13. Maintenance of Certain Servicing Insurance Policies. The
Servicer shall during the term of its service as servicer maintain in force
(i) a policy or policies of insurance covering errors and omissions in the
performance of its obligations as Servicer hereunder and (ii) a fidelity bond
in respect of its officers, employees or agents. Each such policy or policies
and bond shall be at least equal to the coverage that would be required by
FNMA or FHLMC, whichever is greater, for Persons performing servicing for home
equity loans purchased by such entity.

      Section 3.14. Information Required by the Internal Revenue Service and
Reports of Foreclosures and Abandonments of Mortgaged Property. The Servicer
shall prepare and deliver all federal and state information reports with
respect to the Home Equity Loans when and as required by all applicable state
and federal income tax laws. In particular, with respect to the requirement
under Section 6050J of the Code to the effect that the Servicer or Subservicer
shall make reports of foreclosures and abandonments of any mortgaged property
for each year beginning in 20[__], the Servicer or Subservicer shall file
reports relating to each instance occurring during the previous calendar year
in which the Servicer (i) on behalf of the Issuer, acquires an interest in any
Mortgaged Property through foreclosure or other comparable conversion in full
or partial satisfaction of a Home Equity Loan, or (ii) knows or has reason to
know that any Mortgaged Property has been abandoned. The reports from the
Servicer or Subservicer shall be in form and substance sufficient to meet the
reporting requirements imposed by Section 6050J and Section 6050H (reports
relating to mortgage interest received) of the Code.

      Section 3.15. [Reserved].

                                      20
<PAGE>

      Section 3.16. Payment of Taxes, Insurance and Other Charges. With
respect to each Home Equity Loan, the Servicer will maintain accurate records
reflecting fire and hazard insurance coverage to the extent required by
Section 3.04.

      With respect to each Home Equity Loan as to which the Servicer maintains
escrow accounts, the Servicer shall maintain accurate records reflecting the
status of ground taxes, assessments, water rates and other charges which are
or may become a lien upon the Mortgaged Property and the status of primary
mortgage guaranty premiums, if any, shall maintain fire and hazard insurance
coverage and shall obtain, from time to time, all bills for the payment of
such charges (including renewal premiums) and shall effect payment thereof
prior to any applicable penalty or termination date and at a time appropriate
for securing the maximum amounts allowable, employing for such purpose
deposits of the Mortgagor in any escrow account which shall have been
estimated and accumulated by the Servicer in amounts sufficient for such
purposes, as allowed under the terms of the Mortgage. To the extent that a
Mortgage does not provide for escrow payments, the Servicer shall, if it has
received notice of a default or a deficiency, monitor such payments to
determine if they are made by the Mortgagor.

      Section 3.17. Optional Retransfers of Home Equity Loans. Pursuant to
Section 2.3 of the Home Equity Loan Purchase Agreement, the Servicer, in its
capacity as Seller, may, but shall not be obligated to, require the retransfer
of Home Equity Loans from the Trust to the Seller as of the close of business
on a Transfer Date after giving notice to the Indenture Trustee on the Notice
Transfer Date. Any such retransfers shall be permissible only upon the
satisfaction of the conditions set forth in Section 2.3 of the Home Equity
Loan Purchase Agreement.

                                      21
<PAGE>

                                 ARTICLE IV.

                               Servicing Reports

                 Section 4.01. Statements to Securityholders.

      (a) With respect to each Payment Date, on the related Determination
Date, the Servicer shall forward to the Indenture Trustee monthly Servicing
Reports in a mutually agreeable electronic format. The Servicing Reports shall
set forth the following information to the extent applicable:

            (i) the aggregate amount of (a) Interest Collections, (b)
Principal Collections, (c) Substitution Adjustment Amounts and (d) Investor
P&I Collections;

            (ii) (a) the aggregate Loan Balance of the Home Equity Loans as of
the end of the preceding Collection Period, (b) the Investor Amount, (c) the
aggregate Loan Balance of the Mortgage Loans and (d) the aggregate Loan
Balance of the Revolving Credit Loans;

            (iii) with respect to the Revolving Credit Loans, the aggregate
amount of Additional Balances created during the previous Collection Period
conveyed to the Issuer;

            (iv) the number and aggregate Loan Balances of Home Equity Loans
(a) as to which the Minimum Monthly Payment is delinquent for [__]-[__] days,
[__]-[__] days and [__] or more days, respectively, (b) that are foreclosed
and (c) that have become REO, in each case as of the end of the preceding
Collection Period; provided, however, that such information will not be
provided on the statements relating to the first Payment Date;

            (v) the aggregate Liquidation Loss Amounts with respect to the
related Collection Period, the amount of any Liquidation Loss Distribution
Amounts with respect to the Notes, and the aggregate of the Liquidation Loss
Amounts from all Collection Periods to date expressed as dollars and as a
percentage of the aggregate Cut-off Date Loan Balance;

            (vi) the aggregate Servicing Fees for the related Collection
Period and the aggregate amount of Draws for the related Collection Period;

            (vii) the aggregate outstanding principal balance of the [__] Home
Equity Loans having the largest outstanding principal balances or Credit
Limits, as applicable for the related Collection Period;

            (viii) the number and aggregate outstanding principal balances of
the Home Equity Loans which are [__] or more days delinquent in the payment of
all or any portion of the scheduled interest or principal for the related
Collection Period;

            (ix) the [__]+ Delinquency Percentage (Rolling [__] Month) for the
related Collection Period;

                                      22
<PAGE>

            (x) the number and the aggregate Loan Balances of Liquidated Home
Equity Loans for the related Collection Period; and

            (xi) the number and the aggregate Loan Balances of Home Equity
Loans having an outstanding principal balance (or any other amounts owing but
otherwise unpaid) as of or following the final maturity date as set forth in
the Related Documents respecting such Home Equity Loans.

The Indenture Trustee pursuant to Section 3.26 of the Indenture shall prepare
its monthly Statement based solely on the information contained in the
Servicing Reports and shall make available such Statements to each
Certificateholder, Noteholder, the Credit Enhancer, the Depositor, the Owner
Trustee, the Certificate Paying Agent and each Rating Agency. The Indenture
Trustee may conclusively rely on the correctness of the information contained
in the Servicing Reports, without independent verification thereof. The
Statements to Securityholders shall contain the information in the Servicing
Report and the following information:

            (i) the amount of any distribution of principal to the
Noteholders;

            (ii) the amount of any distribution of interest to the
Noteholders, separately stating the portion thereof in respect of overdue
accrued interest;

            (iii) the amount of any Credit Enhancement Draw Amount, if any,
for such Payment Date and the aggregate amount of prior draws thereunder not
yet reimbursed;

            (iv) the amount of such distribution as principal and interest to
the Certificateholders of each Class of Certificates, separately stating the
portion thereof which resulted in a reduction of the Certificate Principal
Balance thereof;

            (v) the weighted average Net Loan Rate for the related Collection
Period;

            (vi) the Security Balance of the Notes and the Class Principal
Balance of each Class of Certificates after giving effect to the distribution
of principal on such Payment Date;

            (vii) the Required Overcollateralization Amount for the related
Payment Date; and

            (viii) the Overcollateralization Amount for the related Payment
Date.

      In the case of information furnished pursuant to clauses (i) and (ii)
above, the amounts shall be expressed as an aggregate dollar amount per Note
or Certificate, as applicable, with a $[__] denomination.

      The Indenture Trustee will make the monthly statement (and, at its
option, any additional files containing the same information in an alternative
format) available each month to the Noteholders, the Certificateholders, and
the other parties described in the second preceding paragraph via the
Indenture Trustee's internet website. The Indenture Trustee's internet website
shall initially be located at "[__]". Assistance in using the website can be
obtained by calling the Indenture Trustee's customer service desk at [__].
Parties that are unable to use the above

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<PAGE>

Statement distribution option are entitled to have a paper copy mailed to them
via first class mail by calling the customer service desk and indicating such.
The Indenture Trustee shall have the right to change the way monthly
Statements are distributed in order to make such distribution more convenient
and/or more accessible to the Noteholders and the Certificateholders and the
Indenture Trustee shall provide timely and adequate notification to all the
Noteholders and the Certificateholders regarding any such changes. The
Indenture Trustee shall deliver to the Credit Enhancer a paper copy of such
monthly Statements.

      In addition, the Servicer shall forward to the Indenture Trustee any
other information reasonably requested by the Indenture Trustee necessary to
make payments pursuant to Section 3.05 of the Indenture. Prior to the close of
business on each Determination Date, the Servicer shall furnish a written
statement to the Certificate Paying Agent and the Indenture Trustee setting
forth the aggregate amounts required to be withdrawn from the Collection
Account and deposited into the Payment Account on such Determination Date
pursuant to Section 3.03. The determination by the Servicer of such amounts
shall, in the absence of obvious error, be presumptively deemed to be correct
for all purposes hereunder and the Certificate Paying Agent and Indenture
Trustee shall be protected in relying upon the same without any independent
check or verification. In addition, upon the Issuer's written request, the
Servicer shall promptly furnish information reasonably requested by the Issuer
that is reasonably available to the Servicer to enable the Issuer to perform
its federal and state income tax reporting obligations.

      Section 4.02. Tax Reporting. So long as [__________] or any affiliate
thereof owns 100% of the Certificates, then no separate federal and state
income tax returns and information returns or reports will be filed with
respect to the Issuer, and the Issuer will be treated for tax purposes as an
entity wholly owned by [__________] or an affiliate thereof.

                                      24
<PAGE>

                                  ARTICLE V.

                                Payment Account

      Section 5.01. Payment Account. The Indenture Trustee shall establish and
maintain a Payment Account titled "[__________], as Indenture Trustee, for the
benefit of the Securityholders, the Certificate Paying Agent and the Credit
Enhancer pursuant to the Indenture, dated as of [____], 20[__], between
[__________] and [__________]". The Payment Account shall be an Eligible
Account. On each Payment Date, amounts on deposit in the Payment Account will
be distributed by the Indenture Trustee in accordance with Section 3.05 of the
Indenture. For the period beginning on and including the Determination Date
and ending on but excluding the [___] Business Day prior to the Payment Date,
the Indenture Trustee shall invest or cause the institution maintaining the
Payment Account to invest the funds in the Payment Account as directed by the
Servicer, but only in Permitted Investments designated in the name of the
Indenture Trustee, which shall mature not later than the [__] Business Day
prior to the Payment Date next following the date of such investment and shall
not be sold or disposed of prior to maturity. Thereafter, the Indenture
Trustee may invest the funds in the Payment Account for its own benefit and at
its direction but only in Permitted Investments which should mature not later
than (i) the Business Day preceding the Payment Date or (ii) with respect to
Permitted Investments described in clause (v) of the definition thereof that
are managed by the Indenture Trustee or its Affiliates or for which the
Indenture Trustee or any Affiliate acts as advisor, the Payment Date. All
income and gain realized from any such investment for the period beginning on
and including the Determination Date to but excluding such [___] Business Day
prior to the Payment Date shall be for the benefit of the Servicer and shall
be subject to withdrawal by the Indenture Trustee for payment to the Servicer
from time to time. All income and gain realized from any such investment for
the period beginning on the [__] Business Day preceding the Payment Date and
ending on the Business Day preceding the Payment Date pursuant to clause (i)
above, or the Payment Date pursuant to clause (ii) above, as the case may be,
shall be for the benefit of the Indenture Trustee. The amount of any losses
incurred in respect of any such investments shall be deposited in the Payment
Account by the party which made the investment decision resulting in such loss
(i.e., either the Servicer or the Indenture Trustee, as the case may be), out
of its own funds immediately as realized.

                                      25
<PAGE>

                                  ARTICLE VI.

                                 The Servicer

      Section 6.01. Liability of the Servicer. The Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically imposed
upon and undertaken by the Servicer herein.

      Section 6.02. Merger or Consolidation of, or Assumption of the
Obligations of, the Servicer. Any corporation into which the Servicer may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Servicer
shall be a party, or any corporation succeeding to the business of the
Servicer, shall (with the consent of the Credit Enhancer, which consent shall
not be unreasonably withheld if such merger, conversion or consolidation is
with an Affiliate of the Servicer and provided that the resulting Person is of
reasonably equivalent capitalization) be the successor of the Servicer,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

      The Servicer may assign its rights and delegate its duties and
obligations under this Servicing Agreement; provided that the Person accepting
such assignment or delegation shall be a Person which is qualified to service
home equity loans, is reasonably satisfactory to the Indenture Trustee (as
pledgee of the Home Equity Loans), the Issuer and the Credit Enhancer, is
willing to service the Home Equity Loans and executes and delivers to the
Indenture Trustee and the Issuer an agreement, in form and substance
reasonably satisfactory to the Credit Enhancer, the Indenture Trustee and the
Issuer, which contains an assumption by such Person of the due and punctual
performance and observance of each covenant and condition to be performed or
observed by the Servicer under this Servicing Agreement; provided further that
each Rating Agency's rating of the Securities in effect immediately prior to
such assignment and delegation will not be qualified, reduced, or withdrawn as
a result of such assignment and delegation (as evidenced by a letter to such
effect from each Rating Agency), if determined without regard to the Credit
Enhancement Instrument; and provided further that the Owner Trustee and the
Credit Enhancer receive an Opinion of Counsel to the effect that such
assignment or delegation shall not cause the Owner Trust to be treated as a
corporation for federal or state income tax purposes.

      Section 6.03. Limitation on Liability of the Servicer and Others.
Neither the Servicer nor any of the directors or officers or employees or
agents of the Servicer shall be under any liability to the Issuer, the Owner
Trustee, the Indenture Trustee or the Securityholders for any action taken or
for refraining from the taking of any action in good faith pursuant to this
Servicing Agreement, provided, however, that this provision shall not protect
the Servicer or any such Person against any liability which would otherwise be
imposed by reason of its willful misfeasance, bad faith or negligence in the
performance of its duties hereunder or by reason of its reckless disregard of
its obligations and duties hereunder. The Servicer and any director or officer
or employee or agent of the Servicer may rely in good faith on any document of
any kind prima facie properly executed and submitted by any Person respecting
any matters arising hereunder. The Servicer and any director or officer or
employee or agent of the Servicer shall be indemnified by the Issuer pursuant
to Section 3.05(a)(i) and Section 3.05(a)(ix) of the Indenture

                                      26
<PAGE>

and held harmless against any loss, liability or expense incurred in
connection with any legal action relating to this Servicing Agreement or the
Securities, other than any loss, liability or expense incurred by reason of
its willful misfeasance, bad faith or negligence in the performance of its
duties hereunder or by reason of its reckless disregard of its obligations and
duties hereunder. The Servicer shall not be under any obligation to appear in,
prosecute or defend any legal action which is not incidental to its duties to
service the Home Equity Loans in accordance with this Servicing Agreement, and
which in its opinion may involve it in any expense or liability; provided,
however, that the Servicer may in its sole discretion undertake any such
action which it may deem necessary or desirable in respect of this Servicing
Agreement, and the rights and duties of the parties hereto and the interests
of the Securityholders. In such event, the reasonable legal expenses and costs
of such action and any liability resulting therefrom shall be expenses, costs
and liabilities of the Issuer, and the Servicer shall be entitled to be
reimbursed therefor. The Servicer's right to indemnity or reimbursement
pursuant to this Section 6.03 shall survive any resignation or termination of
the Servicer pursuant to Section 6.04 or 7.01 with respect to any losses,
expenses, costs or liabilities arising prior to such resignation or
termination (or arising from events that occurred prior to such resignation or
termination).

      Section 6.04. Servicer Not to Resign. Subject to the provisions of
Section 6.02, the Servicer shall not resign from the obligations and duties
hereby imposed on it except (i) upon determination that the performance of its
obligations or duties hereunder are no longer permissible under applicable law
or are in material conflict by reason of applicable law with any other
activities carried on by it or its subsidiaries or Affiliates, the other
activities of the Servicer so causing such conflict being of a type and nature
carried on by the Servicer or its subsidiaries or Affiliates at the date of
this Servicing Agreement or (ii) upon satisfaction of the following
conditions: (a) the Servicer has proposed a successor servicer to the Issuer
and the Indenture Trustee in writing and such proposed successor servicer is
reasonably acceptable to the Issuer and the Indenture Trustee, (b) each Rating
Agency shall have delivered a letter to the Issuer, the Credit Enhancer and
the Indenture Trustee prior to the appointment of the successor servicer
stating that the proposed appointment of such successor servicer as Servicer
hereunder will not result in the qualification, reduction or withdrawal of the
then current rating of the Securities, if determined without regard to the
Credit Enhancement Instrument; and (c) such proposed successor servicer is
acceptable to the Credit Enhancer, as evidenced by a letter to the Issuer and
the Indenture Trustee; provided, however, that no such resignation by the
Servicer shall become effective until such successor servicer or, in the case
of (i) above, the Indenture Trustee, as pledgee of the Home Equity Loans,
shall have assumed the Servicer's responsibilities and obligations hereunder
or the Indenture Trustee, as pledgee of the Home Equity Loans, shall have
designated a successor servicer in accordance with Section 7.02. Any such
resignation shall not relieve the Servicer of responsibility for any of the
obligations specified in Sections 7.01 and 7.02 as obligations that survive
the resignation or termination of the Servicer. Any such determination
permitting the resignation of the Servicer shall be evidenced by an Opinion of
Counsel to such effect delivered to the Indenture Trustee and the Credit
Enhancer.

      Section 6.05. Delegation of Duties. In the ordinary course of business,
the Servicer at any time may delegate any of its duties hereunder to any
Person, including any of its Affiliates, who agrees to conduct such duties in
accordance with standards comparable to those with which the Servicer complies
pursuant to Section 3.01. Such delegation shall not relieve the Servicer of

                                      27
<PAGE>

its liabilities and responsibilities with respect to such duties and shall not
constitute a resignation within the meaning of Section 6.04.

      Section 6.06. Servicer to Pay Indenture Trustee's and Owner Trustee's
Fees and Expenses; Indemnification.

      (a) The Servicer covenants and agrees to pay to the Owner Trustee, the
Indenture Trustee and any co-trustee of the Indenture Trustee or the Owner
Trustee from time to time, and the Owner Trustee, the Indenture Trustee and
any such co-trustee shall be entitled to, reasonable compensation (which shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust) for all services rendered by each of them in the
execution of the trusts created under the Trust Agreement and the Indenture or
any other Basic Document and in the exercise and performance of any of the
powers and duties under the Trust Agreement or the Indenture, as the case may
be, of the Owner Trustee, the Indenture Trustee and any co-trustee, and the
Servicer will pay or reimburse the Indenture Trustee and any co-trustee upon
request for all reasonable expenses, disbursements and advances incurred or
made by the Indenture Trustee or any co-trustee in accordance with any of the
provisions of this Servicing Agreement except any such expense, disbursement
or advance as may arise from its negligence, willful misfeasance or bad faith.
The Servicer further agrees to indemnify the Owner Trustee in the same manner
and to the same extent as is provided by the holder of the majority of the
Certificate Percentage Interest of the [Class [_]] Certificates in Section
7.02 of the Trust Agreement.

      (b) The Servicer shall indemnify and hold harmless the Trust, the Credit
Enhancer, the Indenture Trustee and the Owner Trustee from and against any
loss, liability, expense, damage or injury suffered or sustained by reason of
the Servicer's willful misfeasance, bad faith or negligence in the performance
of its activities in any material respect in servicing or administering the
Home Equity Loans pursuant to this Servicing Agreement, including, but not
limited to, any judgment, award, settlement, reasonable attorneys' fees and
other costs or expenses incurred in connection with the defense of any actual
or threatened action, proceeding or claim related to the Servicer's willful
misfeasance, bad faith or negligence in the performance of its activities in
any material respect in servicing or administering the Home Equity Loans
pursuant to this Servicing Agreement. Any such indemnification shall not be
payable from the assets of the Trust. The provisions of this Section 6.06
shall survive the termination of this Servicing Agreement.

      Section 6.07. Servicer to act as Administrator for the Owner Trustee.
The Servicer shall perform all its duties and the duties of the Issuer under
the Indenture and other Basic Documents, unless otherwise specifically
delegated to another party therein. In furtherance of the foregoing, the
Servicer shall take all necessary action that is the duty of the Issuer to
take pursuant to the Indenture and other Basic Documents, unless such duty has
been specifically delegated to another party therein.

                                      28
<PAGE>

                                 ARTICLE VII.

                                    Default

      Section 7.01. Servicing Default. If any one of the following events
("Servicing Default") shall occur and be continuing:

            (i) Any failure by the Servicer (a) to deposit in the Collection
Account any deposit required to be made under the terms of this Servicing
Agreement or to make payments to be made under the terms of the Insurance
Agreement which continues unremedied for a period of [__] Business Days or (b)
to deposit in the Payment Account any deposit required to be made under the
terms of this Servicing Agreement which continues unremedied for a period of
[__] Business Day after the date upon which written notice of such failure
shall have been given to the Servicer by the Issuer or the Indenture Trustee,
or to the Servicer, the Issuer and the Indenture Trustee by the Credit
Enhancer; or

            (ii) Failure on the part of the Servicer duly to observe or
perform in any material respect any other covenants or agreements of the
Servicer set forth in the Securities or in this Servicing Agreement or the
Insurance Agreement, which failure, in each case, materially and adversely
affects the interests of Securityholders or the Credit Enhancer and which
continues unremedied for a period of [__] days or [__] days, respectively,
after the date on which written notice of such failure, requiring the same to
be remedied, and stating that such notice is a "Notice of Default" hereunder,
shall have been given to the Servicer by the Issuer or the Indenture Trustee,
or to the Servicer, the Issuer and the Indenture Trustee by the Credit
Enhancer; or

            (iii) The entry against the Servicer of a decree or order by a
court or agency or supervisory authority having jurisdiction in the premises
for the appointment of a trustee, conservator, receiver or liquidator in any
insolvency, conservatorship, receivership, readjustment of debt, marshalling
of assets and liabilities or similar proceedings, or for the winding up or
liquidation of its affairs, and the continuance of any such decree or order
unstayed and in effect for a period of [__] consecutive days; or

            (iv) The Servicer shall voluntarily go into liquidation, consent
to the appointment of a conservator, receiver, liquidator or similar person in
any insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings of or relating to the Servicer or of or relating to all or
substantially all of its property, or a decree or order of a court, agency or
supervisory authority having jurisdiction in the premises for the appointment
of a conservator, receiver, liquidator or similar person in any insolvency,
readjustment of debt, marshalling of assets and liabilities or similar
proceedings, or for the winding-up or liquidation of its affairs, shall have
been entered against the Servicer and such decree or order shall have remained
in force undischarged, unbonded or unstayed for a period of [__] days; or the
Servicer shall admit in writing its inability to pay its debts generally as
they become due, file a petition to take advantage of any applicable
insolvency or reorganization statute, make an assignment for the benefit of
its creditors or voluntarily suspend payment of its obligations; or

                                      29
<PAGE>

            (v) the long-term unsecured debt rating of Morgan Stanley or any
successor and surviving entity with Controlling Interest in the Servicer is
suspended, terminated or downgraded below "[__]" by [___] or "[__]" by [___]
and the [___] is not satisfied; or

            (vi) there has been a Change of Ownership and the Servicer Test is
not satisfied;

then, and in every such case, so long as a Servicing Default shall not have
been remedied by the Servicer, either the Issuer or the Indenture Trustee (to
the extent a Responsible Officer of the Indenture Trustee has actual knowledge
of such Servicing Default), with the prior written consent of the Credit
Enhancer, or the Credit Enhancer, by notice then given in writing to the
Servicer (and to the Issuer and the Indenture Trustee if given by the Credit
Enhancer) may terminate all of the rights and obligations of the Servicer as
servicer under this Servicing Agreement other than its right to receive
servicing compensation and expenses for servicing the Home Equity Loans
hereunder during any period prior to the date of such termination and the
Issuer or the Indenture Trustee, with the prior written consent of the Credit
Enhancer, or the Credit Enhancer may exercise any and all other remedies
available at law or equity. Any such notice to the Servicer shall also be
given to each Rating Agency, the Credit Enhancer and the Issuer. On or after
the receipt by the Servicer of such written notice, all authority and power of
the Servicer under this Servicing Agreement, whether with respect to the
Securities or the Home Equity Loans or otherwise, shall pass to and be vested
in a successor servicer designated by the Credit Enhancer (or if the Credit
Enhancer does not designate a successor servicer, the Indenture Trustee as
pledgee of the Home Equity Loans), pursuant to and under this Section 7.01;
and, without limitation, such successor servicer or the Indenture Trustee is
hereby authorized and empowered to execute and deliver, on behalf of the
Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement of each Home Equity Loan and related
documents, or otherwise; provided, that, without affecting the immediate
termination of the rights of the Servicer hereunder, it is understood and
acknowledged by the parties hereto that there will be a period of transition,
not to exceed [__] days from the provision of notice hereunder before the
servicing transfer is fully effected; and provided, further, that any failure
by the Indenture Trustee or any successor servicer to perform such duties or
responsibilities caused by the Servicer's failure to provide the documents and
records required by Section 7.01 hereof shall not be considered a default by
the Indenture Trustee (as successor to the Servicer hereunder, or any
successor servicer). The Servicer agrees to cooperate with such successor
servicer or the Indenture Trustee in effecting the termination of the
responsibilities and rights of the Servicer hereunder, including, without
limitation, the transfer to such successor servicer or the Indenture Trustee
for the administration by it of all cash amounts relating to the Home Equity
Loans that shall at the time be held by the Servicer and have yet to be
deposited by it in the Collection Account, or that have been deposited by the
Servicer in the Collection Account or are thereafter received by the Servicer
with respect to the Home Equity Loans. All reasonable costs and expenses
(including, but not limited to, attorneys' fees) incurred in connection with
amending this Servicing Agreement to reflect such succession as Servicer
pursuant to this Section 7.01 shall be paid by the predecessor Servicer (or if
the predecessor Servicer is the Indenture Trustee, the initial Servicer) upon
presentation of reasonable documentation of such costs and expenses.

                                      30
<PAGE>

      Notwithstanding the foregoing, a delay in or failure of performance
under Section 7.01(i) or under Section 7.01(ii) after the applicable grace
periods specified in such Sections, shall not constitute a Servicing Default
if such delay or failure could not be prevented by the exercise of reasonable
diligence by the Servicer and such delay or failure was caused by an act of
God or the public enemy, acts of declared or undeclared war, public disorder,
rebellion or sabotage, epidemics, landslides, lightning, fire, hurricanes,
earthquakes, floods or similar causes. The preceding sentence shall not
relieve the Servicer from using reasonable efforts to perform its respective
obligations in a timely manner in accordance with the terms of this Servicing
Agreement and the Servicer shall provide the Indenture Trustee, the Credit
Enhancer and the Securityholders with notice of such failure or delay by it,
together with a description of its efforts to so perform its obligations. The
Servicer shall immediately notify the Indenture Trustee, the Credit Enhancer
and the Owner Trustee in writing of any Servicing Default.

      Notwithstanding anything to the contrary in this Agreement, the
Indenture Trustee is not obligated to determine whether the Servicer Test or
Servicer Performance Test has been satisfied or monitor whether there has been
a Change of Ownership.

      Section 7.02. Indenture Trustee to Act; Appointment of Successor.

      (a) On and after the time the Servicer receives a notice of termination
pursuant to Section 7.01 or sends a notice pursuant to Section 6.04, the
Indenture Trustee shall appoint a successor servicer in accordance with the
instruction of the Credit Enhancer, or if the Credit Enhancer does not provide
the Indenture Trustee such instruction within [__] days of such notice, the
Indenture Trustee, in a period not to exceed [__] days, shall appoint a
successor Servicer or shall itself become the successor in all respects to the
Servicer in its capacity as servicer under this Servicing Agreement and in
connection with the transactions set forth or provided for herein and shall be
subject to all the responsibilities, duties and liabilities relating thereto
placed on the Servicer by the terms and provisions hereof. Notwithstanding the
foregoing, the parties hereto agree that the Indenture Trustee, in its
capacity as successor servicer, immediately will assume all of the obligations
of the Servicer to make advances hereunder. During such [__] day period,
neither the Indenture Trustee nor any successor servicer shall be responsible
for any lack of information or documents that it cannot reasonably obtain on a
practical basis under the circumstances. Neither the Indenture Trustee nor any
successor servicer shall be liable for any action taken by the terminated
Servicer during such [__] day period. Nothing in this Servicing Agreement, the
Indenture or in the Trust Agreement shall be construed to permit or require
the Indenture Trustee to (i) succeed to the responsibilities, duties and
liabilities of the initial Servicer in its capacity as Seller under the Home
Equity Loan Purchase Agreement, (ii) be responsible or accountable for any act
or omission of the Servicer prior to the issuance of a notice of termination
hereunder, (iii) require or obligate the Indenture Trustee, in its capacity as
successor servicer, to purchase, repurchase or substitute any Home Equity
Loan, (iv) fund any Additional Balances with respect to any Revolving Credit
Loans, (v) fund any losses on any Permitted Investment directed by any other
Servicer, or (vi) be responsible for the representations and warranties of the
Servicer. As compensation therefor, any successor servicer other than the
Indenture Trustee shall be entitled to such compensation as it and the Credit
Enhancer may agree upon and, if the Indenture Trustee is the successor
servicer, the Indenture Trustee shall be entitled to such compensation as the
Servicer would have been entitled to hereunder if no such notice of
termination had been given. The predecessor Servicer

                                      31
<PAGE>

shall also pay the Transition Costs of the Indenture Trustee or other servicer
as successor servicer. To the extent not paid by the predecessor Servicer, any
Transition Costs incurred by the Indenture Trustee shall be paid pursuant to
Section 3.05(a)(i) of the Indenture. Notwithstanding the above, (i) if the
Credit Enhancer does not direct the appointment of a successor servicer and if
the Indenture Trustee is unwilling to act as successor servicer itself or
appoint a successor to act as successor servicer, or (ii) if the Credit
Enhancer does not direct the appointment of a successor servicer and if the
Indenture Trustee is legally unable so to act, the Indenture Trustee may (in
the situation described in clause (i)) or shall (in the situation described in
clause (ii)) appoint or petition a court of competent jurisdiction to appoint
any established housing and home finance institution, bank or other mortgage
loan or home equity loan servicer having a net worth of not less than $[__] as
the successor to the Servicer hereunder in the assumption of all or any part
of the responsibilities, duties or liabilities of the Servicer hereunder;
provided that any such successor servicer shall be acceptable to the Credit
Enhancer, as evidenced by the Credit Enhancer's prior written consent which
consent shall not be unreasonably withheld or delayed and provided further
that the appointment of any such successor servicer will not result in the
qualification, reduction or withdrawal of the ratings assigned to the
Securities by the Rating Agencies, if determined without regard to the Credit
Enhancement Instrument. Pending appointment of a successor to the Servicer
hereunder, unless the Indenture Trustee is prohibited by law from so acting,
the Indenture Trustee, in a period not to exceed [__] days, shall itself
succeed or appoint a successor to succeed to all of the rights and duties of
the Servicer hereunder hereinabove provided. In connection with such
appointment and assumption, the successor shall be entitled to receive
compensation out of payments on Home Equity Loans in an amount equal to the
compensation which the Servicer would otherwise have received pursuant to
Section 3.09 (or such other compensation as the Credit Enhancer and such
successor shall agree, together with the Transition Costs of the successor
servicer, which shall be paid by the predecessor Servicer). The appointment of
a successor servicer shall not affect any liability of the predecessor
Servicer which may have arisen under this Servicing Agreement prior to its
termination as Servicer (including, without limitation, the obligation to
purchase Home Equity Loans pursuant to Section 3.01, to pay any deductible
under an insurance policy pursuant to Section 3.04 or to indemnify the
Indenture Trustee, the Trust, the Credit Enhancer and the Owner Trustee
pursuant to Section 6.06), nor shall any successor servicer be liable for any
acts or omissions of the predecessor Servicer or for any breach by such
predecessor servicer of any of its representations or warranties contained
herein or in any related document or agreement. The Indenture Trustee and such
successor shall take such action, consistent with this Servicing Agreement, as
shall be necessary to effectuate any such succession.

      (b) Any successor, including the Indenture Trustee, to the Servicer as
servicer shall during the term of its service as servicer (i) continue to
service and administer the Home Equity Loans for the benefit of the
Securityholders and the Credit Enhancer, (ii) maintain in force a policy or
policies of insurance covering errors and omissions in the performance of its
obligations as Servicer hereunder and a fidelity bond in respect of its
officers, employees and agents to the same extent as the Servicer is so
required pursuant to Section 3.13 and (iii) be bound by the terms of the
Insurance Agreement.

      (c) Any successor servicer, including the Indenture Trustee, shall not
be deemed in default or to have breached its duties hereunder if the
predecessor Servicer shall fail to deliver

                                      32
<PAGE>

any required deposit to the Collection Account or otherwise cooperate with any
required servicing transfer or succession hereunder.

      Section 7.03. Notification to Securityholders. Upon any termination of
or appointment of a successor to the Servicer pursuant to this Article VII or
Section 6.04, the Indenture Trustee shall give prompt written notice thereof
to the Securityholders, the Credit Enhancer, the Issuer and each Rating
Agency.

                                      33
<PAGE>

                                ARTICLE VIII.

                           Miscellaneous Provisions

      Section 8.01. Amendment. This Servicing Agreement may be amended from
time to time by the parties hereto, with the prior written consent of the
Credit Enhancer, provided that the Rating Agencies be given notice of any such
amendment.

      Section 8.02. GOVERNING LAW. THIS SERVICING AGREEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

      Section 8.03. Notices. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered at or mailed by certified mail, return receipt requested, to (a) in
the case of the Servicer, [__________], [address], Attention: [______] with a
copy to [______], (b) in the case of the Credit Enhancer, [_______],[address],
Attention: [_______], Confirmation: [_______], Telecopy No. [_______]; (c) in
the case of the Depositor, [address] (d) in the case of [_______], [address],
Attention: [_______], (e) in the case of the Owner Trustee,
[______],[address], (f) in the case of the Issuer, to [__________], c/o Owner
Trustee, [______], [address], (g) in the case of the Indenture Trustee, to
[__________], [address], Attention: [_______], with a copy to [__________],
[address] and to the Indenture Trustee's [______] and (h) in the case of the
Underwriter, [_______], [address], Attention: [_______]; or, as to each party,
at such other address as shall be designated by such party in a written notice
to each other party. Any notice required or permitted to be mailed to a
Securityholder shall be given by first class mail, postage prepaid, at the
address of such Securityholder as shown in the Register. Any notice so mailed
within the time prescribed in this Servicing Agreement shall be conclusively
presumed to have been duly given, whether or not the Securityholder receives
such notice. Any notice or other document required to be delivered or mailed
by the Indenture Trustee to any Rating Agency shall be given on a reasonable
efforts basis and only as a matter of courtesy and accommodation and the
Indenture Trustee shall have no liability for failure to deliver such notice
or document to any Rating Agency.

      Section 8.04. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Servicing Agreement shall
be for any reason whatsoever held invalid, then such covenants, agreements,
provisions or terms shall be deemed severable from the remaining covenants,
agreements, provisions or terms of this Servicing Agreement and shall in no
way affect the validity or enforceability of the other provisions of this
Servicing Agreement or of the Securities or the rights of the Securityholders
thereof.

      Section 8.05. Third-Party Beneficiaries. This Servicing Agreement will
inure to the benefit of and be binding upon the parties hereto, the
Securityholders, the Credit Enhancer, the Owner Trustee and their respective
successors and permitted assigns. Except as otherwise

                                      34
<PAGE>

provided in this Servicing Agreement, no other Person will have any right or
obligation hereunder.

      Section 8.06. Counterparts. This instrument 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 8.07. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

      Section 8.08. Termination Upon Purchase by the Servicer or Liquidation
of All Home Equity Loans.

      (a) The respective obligations and responsibilities of the Servicer, the
Issuer and the Indenture Trustee created hereby shall terminate upon the last
action required to be taken by the Issuer pursuant to the Trust Agreement and
by the Indenture Trustee pursuant to the Indenture following the earlier of:

            (i) the date on or before which the Indenture or Trust Agreement
is terminated, or

            (ii) the purchase by the Servicer from the Issuer of all Home
Equity Loans and all property acquired in respect of any Home Equity Loan at a
price equal to 100% of the unpaid Loan Balance of each Home Equity Loan, plus
accrued and unpaid interest thereon at the Weighted Average Net Loan Rate up
to the day preceding the Payment Date on which such amounts are to be
distributed to Securityholders, plus any amounts due and owing to the Credit
Enhancer and the Indenture Trustee under the Basic Documents (any unpaid
Servicing Fee shall be deemed paid at such time).

The right of the Servicer to purchase the assets of the Issuer pursuant to
clause (ii) above is conditioned upon the Pool Balance as of such date being
less than ten percent of the aggregate of the Cut-off Date Loan Balances of
the Home Equity Loans. If such right is exercised by the Servicer, the
Servicer shall deposit the amount calculated pursuant to clause (ii) above
with the Indenture Trustee pursuant to Section 4.10 of the Indenture and, upon
the receipt of such deposit, the Indenture Trustee or Custodian shall release
to the Servicer, the Mortgage Files pertaining to the Home Equity Loans being
purchased.

      (b) The Servicer, at its expense, shall prepare and deliver to the
Indenture Trustee for execution, at the time the Home Equity Loans are to be
released to the Servicer, appropriate documents assigning each such Home
Equity Loan from the Indenture Trustee or the Issuer to the Servicer or the
appropriate party.

      Section 8.09. Certain Matters Affecting the Indenture Trustee. For all
purposes of this Servicing Agreement, in the performance of any of its duties
or in the exercise of any of its powers hereunder, the Indenture Trustee shall
be subject to and entitled to the benefits of Article VI of the Indenture.

                                      35
<PAGE>

      Section 8.10. Owner Trustee Not Liable for Related Documents. The
recitals contained herein 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 Servicing Agreement, of any Basic Document or of the Certificates
(other than the signatures of the Owner Trustee on the Certificates) or the
Notes, or of any Related Documents. The Owner Trustee shall at no time have
any responsibility or liability with respect to the sufficiency of the Owner
Trust Estate or its ability to generate the payments to be distributed to
Certificateholders under the Trust Agreement or the Noteholders under the
Indenture, including, the compliance by the Issuer, the Depositor or the
Seller with any warranty or representation made under any Basic Document or in
any related document or the accuracy of any such warranty or representation,
or any action of the Certificate Paying Agent, the Certificate Registrar or
the Indenture Trustee taken in the name of the Owner Trustee.

      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
Home Equity Loans or under this Servicing Agreement 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 Servicing Agreement, in the performance of any duties
or obligations of the Issuer hereunder, the Owner Trustee shall be subject to,
and entitled to the benefits of, the terms and provisions of Article VI, VII
and VIII of the Trust Agreement.

                                      36
<PAGE>

                                 ARTICLE IX.

                            EXCHANGE ACT REPORTING

      Section 9.01. Further Assurances. The Indenture Trustee, the Owner
Trustee and the Servicer shall reasonably cooperate with the Depositor in
connection with the satisfaction of the Depositor's reporting requirements
under the Exchange Act with respect to the Issuer. The Depositor shall not
exercise its right to request delivery of information or other performance
under these provisions other than in good faith. In addition to the
information specified below, if so requested by the Depositor for the purpose
of satisfying its reporting obligation under the Exchange Act, the Indenture
Trustee, the Owner Trustee and the Servicer shall provide the Depositor with
(a) such information which is available to such Person without unreasonable
effort or expense and within such timeframe as may be reasonably requested by
the Depositor to comply with the Depositor's reporting obligations under the
Exchange Act and (b) to the extent such Person is a party (and the Depositor
is not a party) to any agreement or amendment required to be filed, copies of
such agreement or amendment in EDGAR-compatible form. Each of the Servicer,
the Indenture Trustee and the Owner Trustee acknowledges that interpretations
of the requirements of Regulation AB may change over time, whether due to
interpretive guidance provided by the Commission or its staff, consensus among
participants in the asset-backed securities markets, advice of counsel, or
otherwise, and agrees to comply with requests made by the Depositor in good
faith for delivery of information under these provisions on the basis of
evolving interpretations of Regulation AB.

      Section 9.02. Form 10-D Filings. (a) Within 15 days after each
Distribution Date (subject to permitted extensions under the Exchange Act),
the [Indenture Trustee] shall prepare and file on behalf of the Trust any Form
10-D required by the Exchange Act, in form and substance as required by the
Exchange Act. The [Indenture Trustee] shall file each Form 10-D with a copy of
the related Monthly Statement attached thereto.

      (b) After preparing the Form 10-D, the [Indenture Trustee] shall forward
electronically a draft copy of the Form 10-D to the Depositor for review,
verification and execution by the Depositor. No later than 2 Business Days
prior to the 15th calendar day after the related Distribution Date, an officer
of the Depositor shall sign the Form 10-D and return an electronic or fax copy
of such signed Form 10-D (with an original executed hard copy to follow by
overnight mail) to the [Indenture Trustee]. If a Form 10-D cannot be filed on
time or if a previously filed Form 10-D needs to be amended, the [Indenture
Trustee] will follow the procedures set forth in Section 9.05. The signing
party at the Depositor can be contacted at the Depositor's address for notices
set forth in Section 8.03, or such other address as to which the Depositor has
provided prior written notice to the [Indenture Trustee]. The Depositor
acknowledges that the performance by the [Indenture Trustee] of its duties
under this Section 9.02 related to the timely preparation and filing of Form
10-D is contingent, in part, upon each Servicer and the Depositor and any
other Person obligated to provide any Form 10-D Disclosure Items observing all
applicable deadlines in the performance of their duties under this Section
9.02. The [Indenture Trustee] shall have no liability for any loss, expense,
damage, or claim arising out of or with respect to any failure to properly
prepare and/or timely file such Form 10-D, where such failure results from the
[Indenture Trustee]'s inability or failure to obtain or receive, on a timely
basis, any information from any party hereto (other than the [Indenture

                                      37
<PAGE>

Trustee] or any Subcontractor utilized by the [Indenture Trustee]) needed to
prepare, arrange for execution or file such Form 10-D, not resulting from its
own negligence, bad faith or willful misconduct.

      (c) So long as the Depositor is required to file Exchange Act Reports
with respect to the Issuer, no later than each Payment Date, each of the
Indenture Trustee, the Owner Trustee and the Servicer shall notify (and the
Servicer shall cause any Subservicer to notify) the Depositor of any Form 10-D
Disclosure Item with respect to such Person, together with a description of
any such Form 10-D Disclosure Item in form and substance reasonably acceptable
to the Depositor. In addition to such information as the Servicer is obligated
to provide pursuant to other provisions of this Agreement, if so requested by
the Depositor, the Servicer shall provide such information which is available
to the Servicer, without unreasonable effort or expense regarding the
performance or servicing of the Home Equity Loans as is reasonably required to
facilitate preparation of distribution reports in accordance with Item 1121 of
Regulation AB. Such information shall be provided concurrently with the
Statements to Securityholders pursuant to Section 4.01, commencing with the
first such report due not less than [five] Business Days following such
request.

      Section 9.03. Form 8-K Filings. So long as the Depositor is required to
file Exchange Act Reports with respect to the Issuer, each of the Indenture
Trustee, the Owner Trustee and the Servicer shall promptly notify the
Depositor, but in no event later than [one (1)] Business Day after its
occurrence, of any Reportable Event (in the case of the Owner Trustee, only an
event in clause (d) of the definition of "Reportable Event") of which such
Person (or in the case of the Owner Trustee and the Indenture Trustee, a
Responsible Officer of such Person) has actual knowledge. Each Person shall be
deemed to have actual knowledge of any such event to the extent that it
relates to such Person or any action or failure to act by such Person.

      Section 9.04. Form 10-K Filings. (a) Within 90 days after the end of
each fiscal year of the Trust or such earlier date as may be required by the
Exchange Act (the "10-K Filing Deadline"), commencing in March 20[__], the
[Indenture Trustee] shall prepare and file on behalf of the Trust a Form 10-K,
in form and substance as required by the Exchange Act. Each such Form 10-K
shall include the following items, in each case to the extent they have been
delivered to the [Indenture Trustee] within the applicable time frames set
forth in this Agreement, (i) an annual compliance statement for each Servicer
and each Subservicer engaged by any Servicer and the [Indenture Trustee], as
described under Section 3.10, (ii)(A) the annual reports on assessment of
compliance with servicing criteria for the [Indenture Trustee], the Servicers,
each Subservicer engaged by any Servicer and each Servicing Function
Participant utilized by the Servicer or the [Indenture Trustee], as described
under Section 3.11, and (B) if any such report on assessment of compliance
with servicing criteria described under Section 3.11 identifies any material
instance of noncompliance, disclosure identifying such instance of
noncompliance, or such report on assessment of compliance with servicing
criteria described under Section 3.11 is not included as an exhibit to such
Form 10-K, disclosure that such report is not included and an explanation why
such report is not included, (iii)(A) the registered public accounting firm
attestation report for the [Indenture Trustee], each Servicer, each
Subservicer engaged by a Servicer and each Servicing Function Participant
utilized by a Servicer or the [Indenture Trustee], as described under Section
3.11, and (B) if any registered public accounting firm attestation report
described under Section 3.11 identifies any material instance of

                                      38
<PAGE>

noncompliance, disclosure identifying such instance of noncompliance, or if
any such registered public accounting firm attestation report is not included
as an exhibit to such Form 10-K, disclosure that such report is not included
and an explanation why such report is not included, and (iv) a certification,
with such changes as may be necessary or appropriate as a result of changes
promulgated by the Commission (the "Sarbanes Certification"), which shall be
signed by the senior officer of the Depositor in charge of securitization.

      (b) After preparing the Form 10-K, the [Indenture Trustee] shall forward
electronically a draft copy of the Form 10-K to the Depositor for review,
verification and execution by the Depositor. No later than 5:00 p.m. EST on
the [3rd] Business Day prior to the 10-K Filing Deadline, an officer of the
Depositor shall sign the Form 10-K and return an electronic or fax copy of
such signed Form 10-K (with an original executed hard copy to follow by
overnight mail) to the [Indenture Trustee]. If a Form 10-K cannot be filed on
time or if a previously filed Form 10-K needs to be amended, the [Indenture
Trustee] will follow the procedures set forth in Section 9.05). The signing
party at the Depositor can be contacted at the Depositor's address for notices
set forth in Section 8.03, or such other address as to which the Depositor has
provided prior written notice to the [Indenture Trustee]. The Depositor and
each Servicer acknowledge that the performance by the [Indenture Trustee] of
its duties under this Section 9.04 related to the timely preparation and
filing of Form 10-K is contingent, in part, upon each Servicer (and any
Subservicer or Servicing Function Participant engaged by a Servicer) and the
Depositor and any other Person obligated to provide Form 10-K Disclosure
Items, observing all applicable deadlines in the performance of their duties
under this Section 9.04 and Section 3.10 and 3.11. The [Indenture Trustee]
shall have no liability for any loss, expense, damage or claim arising out of
or with respect to any failure to properly prepare and/or timely file such
Form 10-K, where such failure results from the [Indenture Trustee]'s inability
or failure to obtain or receive, on a timely basis, any information from any
party hereto (other than the [Indenture Trustee] or any Subcontractor utilized
by the [Indenture Trustee]) needed to prepare, arrange for execution or file
such Form 10-K, not resulting from its own negligence, bad faith or willful
misconduct.

      (c) So long as the Depositor is required to file Exchange Act Reports:
(i) if the Item 1119 Parties listed on Appendix D have changed since the
Closing Date, no later than March 1 of each year, the Depositor shall provide
each of the Indenture Trustee, the Owner Trustee and the Servicer with an
updated Appendix D setting forth the Item 1119 Parties and (ii) no later than
March [1] of each year, commencing in 20[__], the Indenture Trustee, the Owner
Trustee and the Servicer shall notify the Depositor of any Form 10-K
Disclosure Item, together with a description of any such Form 10-K Disclosure
Item in form and substance reasonably acceptable to the Depositor.

      Section 9.05. Form 15 Filings, Late Filings. Prior to January [_] of the
first year in which the [Indenture Trustee] is able to do so under applicable
law, the [Indenture Trustee] shall file a Form 15 Suspension Notification with
respect to the Trust, with a copy to the Depositor. At any time after the
filing of a Form 15 Suspension Notification, if the number of Holders of the
Notes of record exceeds the number set forth in Section 15(d) of the Exchange
Act or the regulations promulgated pursuant thereto which would cause the
Trust to again become subject to the reporting requirements of the Exchange
Act, the [Indenture Trustee] shall recommence

                                      39
<PAGE>

preparing and filing reports on Form 10-K, 10-D and 8-K as required pursuant
to this Section 9.05 and the parties hereto shall again have the obligations
set forth in this Section.

      In the event that the [Indenture Trustee] is unable to timely file with
the Commission all or any required portion of any 10-D or 10-K required to be
filed pursuant to this Agreement because required disclosure information was
either not delivered to it or delivered to it after the delivery deadlines set
forth in this Agreement, the [Indenture Trustee] will immediately notify the
Depositor and the Servicers. The Depositor, Servicers and [Indenture Trustee]
will thereupon cooperate to prepare and file a Form 12b-25 and a 10-DA and
10-KA as applicable, pursuant to Rule 12b-25 of the Exchange Act. In the case
of Form 8-K, the [Indenture Trustee] will, upon receipt of all disclosure
information required to be included on Form 8-K, include such disclosure
information on the next Form 10-D. In the event that any previously filed Form
8-K, 10-D or 10-K needs to be amended, the party to this Agreement deciding
that an amendment to such Form 8-K, 10-D or 10-K is required will notify the
Depositor, the [Indenture Trustee] and the Servicers and such parties will
cooperate to prepare any necessary Form 8-KA, 10-DA or 10-KA. Any Form 15,
Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K shall be signed by an
officer of the Depositor. The Depositor and Servicers acknowledge that the
performance by the [Indenture Trustee] of its duties under this Section 9.05
related to the timely preparation and filing of Form 15, a Form 12b-25 or any
amendment to Form 8-K, 10-D or 10-K is contingent upon the Servicer and the
Depositor observing all applicable deadlines (and the related grace periods
thereto) in the performance of their duties under this Section 9.05 and
Sections 3.10 and 3.11. The [Indenture Trustee] shall have no liability for
any loss, expense, damage, claim arising out of or with respect to any failure
to properly prepare and/or timely file any such Form 15, Form 12b-25 or any
amendments to Forms 8-K, 10-D or 10-K, where such failure results from the
[Indenture Trustee]'s inability or failure to obtain or receive, on a timely
basis, any information from any party hereto (other than the [Indenture
Trustee] or any Subcontractor utilized by the [Indenture Trustee]) needed to
prepare, arrange for execution or file such Form 15, Form 12b-25 or any
amendments to Forms 8-K, 10-D or 10-K, not resulting from its own negligence,
bad faith or willful misconduct.

      Section 9.06. Report on Assessment of Compliance and Attestation. [So
long as the Depositor is required to file Exchange Act Reports, on or before
March [1] of each calendar year, commencing in 20[__]:

      (a) The Indenture Trustee shall deliver to the Depositor and the
Servicer a report of the Indenture Trustee's assessment of compliance with the
Servicing Criteria during the immediately preceding calendar year, as set
forth under Rules 13a-18 and 15d-18 of the Exchange Act (or any successor
provisions) and Item 1122 of Regulation AB. Such report shall be signed by an
authorized officer of the Indenture Trustee and shall at a minimum address
each of the Servicing Criteria specified on a certification substantially in
the form of Appendix E hereto delivered to the Depositor concurrently with the
execution of this Agreement (provided that such certification may be revised
after the date of this Agreement as agreed by the Depositor and the Indenture
Trustee to reflect any guidance with respect to such criteria from the
Commission). To the extent any of the Servicing Criteria are not applicable to
the Indenture Trustee, with respect to asset-backed securities transactions
taken as a whole involving the Indenture Trustee and that are backed by the
same asset type backing the Notes, such report shall include such a statement
to that effect. The Indenture Trustee acknowledges and agrees that the

                                      40
<PAGE>

Depositor and the Servicer with respect to its duties as the Certifying
Person, and each of their respective officers and directors shall be entitled
to rely on upon each such servicing criteria assessment and the attestation
delivered pursuant to Section 9.06(b) below.

      (b) The Indenture Trustee shall deliver to the Depositor and the
Servicer a report of a registered public accounting firm that attests to, and
reports on, the assessment of compliance made by the Indenture Trustee and
delivered pursuant to the preceding paragraph. Such attestation shall be in
accordance with Rules 13a-18 and 15d-18 of the Exchange Act (or any successor
provisions), Rules 1-02(a)(3) and 2-02(g) of Regulation S-X (or any successor
provisions) under the Securities Act and the Exchange Act, including, without
limitation that in the event that an overall opinion cannot be expressed, such
registered public accounting firm shall state in such report why it was unable
to express such an opinion. Such report must be available for general use and
not contain restricted use language.

      (c) In the event the Indenture Trustee is terminated or resigns during
the term of this Agreement, such Person shall provide the documents and
information pursuant to this Section 9.06 with respect to the period of time
it was subject to this Agreement or provided services with respect to the
Issuer or the Home Equity Loans.]

      Section 9.07. Back-up Sarbanes-Oxley Certification. No later than March
[1] of each year, beginning in 20[__], the Indenture Trustee and the Servicer
shall provide to the Person who signs the Sarbanes-Oxley Certification (the
"Certifying Person") a certification (each, a "Performance Certification") and
the Servicer shall cause each Subservicer, in the form attached hereto as
Appendix F (in the case of the Indenture Trustee or a Subservicer) and as
Appendix G (in the case of the Servicer) on which the Certifying Person, the
entity for which the Certifying Person acts as an officer, and such entity's
officers, directors and Affiliates (collectively with the Certifying Person,
"Certification Parties") can reasonably rely. The Depositor will not request
delivery of a certification under this clause unless the Depositor is required
under the Exchange Act to file an annual report on Form 10-K with respect to
the Issuer. So long as the Servicer is an Affiliate of the Depositor, the
Servicer may, but is not required to deliver the Performance Certificate. In
the event that prior to the filing date of the Form 10-K in March of each
year, the Indenture Trustee or the Servicer has actual knowledge of
information material to the Sarbanes-Oxley Certification, the Indenture
Trustee or the Servicer shall promptly notify the Depositor. Each of the
Indenture Trustee and the Servicer agrees to cooperate with all reasonable
requests made by any Certifying Person or Certification Party in connection
with such Person's attempt to conduct any due diligence that such Person
reasonably believes to be appropriate in order to allow it to deliver any
Sarbanes-Oxley Certification or portion thereof with respect to the Issuer.

      Section 9.08. Representations and Warranties. Each of the Indenture
Trustee and the Owner Trustee represents that (i) there are no affiliations,
relating to such Person with respect to any 1119 Party, (ii) there are no
relationships or transactions with respect to any 1119 Party and such Person
that are outside the ordinary course of business or on terms other than would
be obtained in an arm's length transaction with an unrelated third party,
apart from the transactions contemplated under the Basic Documents, and that
are material to the investors' understanding of the Notes and (iii) there are
no legal proceedings pending, or known to be contemplated by governmental
authorities, against such Person, or of which the property of such Person is
subject, that is material to the Noteholders.

                                      41
<PAGE>

      Section 9.09. Indemnification.

      (a) Each of the Indenture Trustee and the Servicer shall indemnify the
Depositor, each affiliate of the Depositor, the Servicer with respect to its
duties as Certifying Person or each Person who controls any of such parties
(within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act) and the respective present and former directors, officers,
employees and agents of each of the foregoing, and shall hold each of them
harmless from and against any losses, damages, penalties, fines, forfeitures,
legal fees and expenses and related costs, judgments, and any other costs,
fees and expenses that any of them may sustain arising out of or based upon:

            (i) (A) any untrue statement of a material fact contained or
alleged to be contained in (x) with respect to the Indenture Trustee, the
servicing criteria assessment provided under this Article IX and (y) with
respect to the Servicer, Section 3.10 and Section 3.11 of this Agreement by or
on behalf of such Person (with respect to each such party, the "Provided
Information"), or (B) the omission or alleged omission to state in the
Provided Information a material fact required to be stated in the Provided
Information, or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading;
provided, by way of clarification, that clause (B) of this paragraph shall be
construed solely by reference to the related Provided Information and not to
any other information communicated in connection with a sale or purchase of
securities, without regard to whether the Provided Information or any portion
thereof is presented together with or separately from such other information;
or

            (ii) with respect to the Indenture Trustee, any failure by the
Indenture Trustee to deliver any servicing criteria assessment when and as
required under this Article IX and with respect to the Servicer, any failure
by the Servicer to deliver any information, report, certification,
accountant's letter or other material when and as required under Section 3.10,
Section 3.11 or Article IX, as applicable.

      (b) In the case of any failure of performance described in clause (ii)
of this Section, each of the Indenture Trustee and the Servicer shall promptly
reimburse the Depositor for all costs reasonably incurred by each such party
in order to obtain the information, report, certification, accountants' letter
or other material not delivered as required by the Indenture Trustee or the
Servicer, as applicable.

      (c) Each of the Indenture Trustee and the Servicer shall require that
any Subservicer agree to the provisions of paragraphs (a) and (b) of this
Section 9.09, or shall be responsible for all such indemnification, costs or
expenses if the Subservicer will not agree to such provisions.

      (d) Notwithstanding anything to the contrary contained herein, in no
event shall the Indenture Trustee be liable for special, indirect or
consequential damages 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.

      Section 9.10. Amendments. In the event the parties to this Agreement
desire to further clarify or amend any provision of this Article IX, this
Agreement shall be amended to reflect the

                                      42
<PAGE>

new agreement between the parties covering matters in this Article IX pursuant
to Section 9.01, provided such amendment will not require any Opinion of
Counsel or satisfaction of the Rating Agency Condition or the consent of any
Noteholder or Certificateholder.

                                      43
<PAGE>

      IN WITNESS WHEREOF, the Servicer, the Indenture Trustee, the Depositor
and the Issuer [and to the extent set forth below, the Custodian] have caused
this Servicing Agreement to be duly executed by their respective officers or
representatives all as of the day and year first above written.

                                    [__________],
                                          as Servicer

                                    By:
                                        -------------------------------------
                                    Title:   [___]

                                    [__________]

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

                                    By:
                                        -------------------------------------
                                    Title:   [___]

                                    [__________],
                                          as Indenture Trustee

                                    By:
                                       --------------------------------------
                                    Title:   [___]

                                      44
<PAGE>

                                    MORGAN STANLEY ABS CAPITAL I INC.,
                                          as Depositor

                                    By:
                                        -------------------------------------
                                    Title:   [___]

                                    [with respect to Section 3.11 [and
                                    Article IX] only:

                                    [_________________], as Custodian

                                    By:
                                        -------------------------------------
                                    Title:   [___]]

                                      45
<PAGE>

                                   EXHIBIT A

                           HOME EQUITY LOAN SCHEDULE

                                 Exhibit A-1
<PAGE>

                                   EXHIBIT B

                           LIMITED POWER OF ATTORNEY

[__________],  (the  "Principal"),  in its capacity as indenture trustee under
that  certain  Servicing  Agreement  relating  to   [__________],[__________],
Series  [___],  dated as of  [____],  20[__]  (the  "Agreement")  by and among
[__________] (Issuer),  [__________] (Servicer),  Morgan Stanley ABS Capital I
Inc. and [__________] (Indenture Trustee).

hereby constitutes and appoints:

                                 [__________]

its true and lawful attorney-in-fact (the "Attorney-in-Fact"), acting by and
through its officers and employees, with full authority and power to execute
and deliver on behalf of Principal any and all of the following instruments to
the extent consistent with the terms and conditions of the Agreement:

            (i) All documents with respect to any of the mortgages or deeds of
            trust securing the Home Equity Loans (as defined in the Agreement)
            serviced for Principal by said attorney-in-fact which are
            customarily and reasonably necessary and appropriate to the
            satisfaction, cancellation, or partial or full release of
            mortgages, deeds of trust or deeds to secure debt upon payment and
            discharge of all sums secured thereby;

            (ii) Instruments appointing one or more substitute trustees to act
            in place of the trustees named in Deeds of Trust;

            (iii) Affidavits of debt, notice of default, declaration of
            default, notices of foreclosure, and all such contracts,
            agreements, deeds, assignments and instruments as are appropriate
            to effect any sale, transfer or disposition of real property
            acquired through foreclosure or otherwise;

            (iv) All other comparable instruments.

                                 Exhibit B-1
<PAGE>

This Limited Power of Attorney is effective as of the date below and shall
remain in full force and effect until revoked in writing by the undersigned or
termination of the Agreement, whichever is earlier.

Dated:  XXXXXXXXXX               [__________]
                                       As Indenture Trustee under the Agreement

                                       By: ___________________________________
                                           By:
                                           Its:
Attest:

________________________________
By:  ___________________________
Its:  Asst. Secretary

Unofficial Witnesses:

________________________________

________________________________

                                 Exhibit B-2
<PAGE>

STATE OF
COUNTY OF                    ss:

      On the ____ day of __________, 20[__] before me, a Notary Public in and
for said State, personally appeared ___________________, known to me to be
___________________ of [__________], and also known to me to be the person who
executed this Power of Attorney on behalf of said bank, and acknowledged to me
that such bank executed this Power of Attorney.

      IN WITNESS WHEREOF, I have hereunto set my hand and affixed my office
seal the day and year written above.

                                          ___________________________________
                                          Notary Public
                                          My commission expires _____________

                                 Exhibit B-3
<PAGE>

STATE OF                )
                        SS.
COUNTY OF               )

      On this __th day of [___], 20[__], before me the undersigned, Notary
Public of said State, personally appeared _______________________________
personally known to me to be duly authorized officers of [__________] that
executed the within instrument and personally known to me to be the persons
who executed the within instrument on behalf of [__________] therein named,
and acknowledged to me such [__________] executed the within instrument
pursuant to its by-laws.

                                          WITNESS my hand and official seal.

                                          Notary Public in and for the
                                          State of

After recording, please mail to:

Attn:

                                 Exhibit B-4
<PAGE>

                                   EXHIBIT C

                          FORM OF REQUEST FOR RELEASE

To:   [________]
      [________]
      [________]
      Attn: [___]

      Re:   Custodial Agreement dated as of ____, among
            _________________________________ and [__________], as Custodian

      In connection with the administration of the Home Equity Loans held by
you as Custodian for the Owner pursuant to the above-captioned Custodial
Agreement, we request the release, and hereby acknowledge receipt, of the
Custodian's Mortgage File for the Home Equity Loan described below, for the
reason indicated.

Home Equity Loan Number
-----------------------

Mortgagor Name, Address & Zip Code
----------------------------------

Reason for Requesting Documents (check one):
-------------------------------

_______  1. Mortgage Paid in Full

_______  2. Foreclosure

_______  3. Substitution

_______  4. Other Liquidation (Repurchases, etc.)

_______  5. Nonliquidation                    Reason:_________________________

Address to which Custodian should
Deliver the Custodian's Mortgage File: _______________________________________
                                       _______________________________________
                                       _______________________________________

                                          By:_________________________________
                                                  (authorized signer)
                                         Issuer:______________________________
                                         Address:_____________________________
                                                 _____________________________
                                         Date:________________________________
Custodian
---------

[__________]

Please acknowledge the execution of the above request your signature and date
below:

______________________________________    _____________________
Signature                                 Date

Documents returned to Custodian:

Custodian   Date

                                 Exhibit C-1
<PAGE>

                                  APPENDIX D

                               ITEM 1119 PARTIES

[_____________] Trust 20[__]-[_]
[___________________________]
[___________________________]

                                 Appendix D-1
<PAGE>

                                  APPENDIX E

                MINIMUM SERVICING CRITERIA TO BE ADDRESSED IN
                      ASSESSMENT OF COMPLIANCE STATEMENT

            The assessment of compliance to be delivered by the [Indenture
Trustee] [Servicer] shall address, at a minimum, the criteria identified as
below as "Applicable Servicing Criteria":

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
Reg AB Reference          Servicing Criteria                                        Applicable Servicing Criteria
--------------------------------------------------------------------------------------------------------------------
                          General Servicing Considerations
--------------------------------------------------------------------------------------------------------------------
<S>                       <C>                                                       <C>
                          Policies and procedures are instituted to monitor
                          any performance or other triggers and events of
                          default in accordance with the transaction
1122(d)(1)(i)             agreements.
--------------------------------------------------------------------------------------------------------------------
                          If any material servicing activities are outsourced
                          to third parties, policies and procedures are
                          instituted to monitor the third party's performance
1122(d)(1)(ii)            and compliance with such servicing activities.
--------------------------------------------------------------------------------------------------------------------
                          Any requirements in the transaction
                          agreements to maintain a back-up
                          servicer for the Pool Assets are
1122(d)(1)(iii)           maintained.
--------------------------------------------------------------------------------------------------------------------
                          A fidelity bond and errors and omissions policy is
                          in effect on the party participating in the
                          servicing function throughout the reporting period
                          in the amount of coverage required by and otherwise
                          in accordance with the terms of the
1122(d)(1)(iv)            transaction agreements.
--------------------------------------------------------------------------------------------------------------------
                          Cash Collection and Administration
--------------------------------------------------------------------------------------------------------------------
                          Payments on pool assets are deposited into the
                          appropriate custodial bank accounts and related bank
                          clearing accounts no more than two business days
                          following receipt, or such other number of days
11229d)(2)(i)             specified in the transaction agreements.
--------------------------------------------------------------------------------------------------------------------
                          Disbursements made via wire transfer
                          on behalf of an obligor or to an
                          investor are made only by authorized
1122(d)(2)(ii)            personnel.
--------------------------------------------------------------------------------------------------------------------
                          Advances of funds or guarantees regarding
                          collections, cash flows or distributions, and any
                          interest or other fees charged for such advances,
                          are made, reviewed and approved as specified in the
                          transaction
1122(d)(2)(iii)           agreements.
--------------------------------------------------------------------------------------------------------------------
                          The related accounts for the transaction, such as
                          cash reserve accounts or accounts established as a
                          form of over collateralization, are separately
                          maintained (e.g., with respect to commingling of
1122(d)(2)(iv)            cash) as set forth in the transaction agreements.
--------------------------------------------------------------------------------------------------------------------
                          Each custodial account is maintained at a federally
                          insured depository institution as set forth in the
                          transaction agreements. For purposes of this
                          criterion, "federally insured depository
                          institution" with respect to a foreign financial
                          institution means a foreign financial institution
                          that meets the requirements of Rule 13k-1(b)(1) of
11229d)(2)(v)             the Securities Exchange Act.
--------------------------------------------------------------------------------------------------------------------

                                 Appendix E-1
<PAGE>

--------------------------------------------------------------------------------------------------------------------
Reg AB Reference          Servicing Criteria                                        Applicable Servicing Criteria
--------------------------------------------------------------------------------------------------------------------
                          Unissued checks are safeguarded so as
1122(d)(2)(vi)            to prevent unauthorized access.
--------------------------------------------------------------------------------------------------------------------
                          Reconciliations are prepared on a monthly basis for
                          all asset-backed securities related bank accounts,
                          including custodial accounts and related bank
                          clearing accounts. These reconciliations are (A)
                          mathematically accurate; (B) prepared within 30
                          calendar days after the bank statement cutoff date,
                          or such other number of days specified in the
                          transaction agreements; (C) reviewed and approved by
                          someone other than the person who prepared the
                          reconciliation; and (D) contain explanations for
                          reconciling items. These reconciling items are
                          resolved within 90 calendar days of their original
                          identification, or such other number of days
1122(d)(2)(vii)           specified in the transaction agreements.
--------------------------------------------------------------------------------------------------------------------
                          Investor Remittances and Reporting
--------------------------------------------------------------------------------------------------------------------
                          Reports to investors, including those to be filed
                          with the Commission, are maintained in accordance
                          with the transaction agreements and applicable
                          Commission requirements. Specifically, such reports
                          (A) are prepared in accordance with timeframes and
                          other terms set forth in the transaction agreements;
                          (B) provide information calculated in accordance
                          with the terms specified in the transaction
                          agreements; (C) are filed with the Commission as
                          required by its rules and regulations; and (D) agree
                          with investors' or the trustee's records as to the
                          total unpaid principal balance and number of Pool
1122(d)(3)(i)             Assets serviced by the Servicer.
--------------------------------------------------------------------------------------------------------------------
                          Amounts due to investors are allocated and remitted
                          in accordance with timeframes, distribution priority
                          and other terms set forth in the transaction
1122(d)(3)(ii)            agreements.
--------------------------------------------------------------------------------------------------------------------
                          Disbursements made to an investor are posted within
                          two business days to the Servicer's investor
                          records, or such other number of days specified in
1122(d)(3)(iii)           the transaction agreements.
--------------------------------------------------------------------------------------------------------------------
                          Amounts remitted to investors per the investor
                          reports agree with cancelled checks, or other form
1122(d)(3)(iv)            of payment, or custodial bank statements.
--------------------------------------------------------------------------------------------------------------------
                          Pool Asset Administration
--------------------------------------------------------------------------------------------------------------------
                          Collateral or security on pool assets
                          is maintained as required by the
                          transaction agreements or related pool
1122(d)(4)(i)             asset documents.
--------------------------------------------------------------------------------------------------------------------
                          Pool assets  and related documents are
                          safeguarded as required by the
1122(d)(4)(ii)            transaction agreements
--------------------------------------------------------------------------------------------------------------------
                          Any additions, removals or substitutions to the
                          asset pool are made, reviewed and approved in
                          accordance with any conditions or requirements in
1122(d)(4)(iii)           the transaction agreements.
--------------------------------------------------------------------------------------------------------------------
                          Payments on pool assets, including any payoffs, made
                          in accordance with the related pool asset documents
                          are posted to the Servicer's obligor records
                          maintained no more than two business days after
                          receipt, or such other number of days specified in
                          the transaction agreements, and allocated to
                          principal, interest or other items (e.g., escrow) in
1122(d)(4)(iv)            accordance with the related pool asset documents.
--------------------------------------------------------------------------------------------------------------------

                                     Appendix E-2
<PAGE>

--------------------------------------------------------------------------------------------------------------------
Reg AB Reference          Servicing Criteria                                        Applicable Servicing Criteria
--------------------------------------------------------------------------------------------------------------------
                          The Servicer's records regarding the pool assets
                          agree with the Servicer's records with respect to an
1122(d)(4)(v)             obligor's unpaid principal balance.
--------------------------------------------------------------------------------------------------------------------
                          Changes with respect to the terms or status of an
                          obligor's pool assets (e.g., loan modifications or
                          re-agings) are made, reviewed and approved by
                          authorized personnel in accordance with the
                          transaction agreements and related pool asset
1122(d)(4)(vi)            documents.
--------------------------------------------------------------------------------------------------------------------
                          Loss mitigation or recovery actions (e.g.,
                          forbearance plans, modifications and deeds in lieu
                          of foreclosure, foreclosures and repossessions, as
                          applicable) are initiated, conducted and concluded
                          in accordance with the timeframes or other
                          requirements established by the transaction
1122(d)(4)(vii)           agreements.
--------------------------------------------------------------------------------------------------------------------
                          Records documenting collection efforts are
                          maintained during the period a pool asset is
                          delinquent in accordance with the transaction
                          agreements. Such records are maintained on at least
                          a monthly basis, or such other period specified in
                          the transaction agreements, and describe the
                          entity's activities in monitoring delinquent pool
                          assets including, for example, phone calls, letters
                          and payment rescheduling plans in cases where
                          delinquency is deemed temporary (e.g., illness or
1122(d)(4)(viii)          unemployment).
--------------------------------------------------------------------------------------------------------------------
                          Adjustments to interest rates or rates of return for
                          pool assets with variable rates are computed based
1122(d)(4)(ix)            on the related pool asset documents.
--------------------------------------------------------------------------------------------------------------------
                          Regarding any funds held in trust for an obligor
                          (such as escrow accounts): (A) such funds are
                          analyzed, in accordance with the obligor's pool
                          asset documents, on at least an annual basis, or
                          such other period specified in the transaction
                          agreements; (B) interest on such funds is paid, or
                          credited, to obligors in accordance with applicable
                          pool asset documents and state laws; and (C) such
                          funds are returned to the obligor within 30 calendar
                          days of full repayment of the related pool assets,
                          or such other number of days specified in the
1122(d)(4)(x)             transaction agreements.
--------------------------------------------------------------------------------------------------------------------
                          Payments made on behalf of an obligor (such as tax
                          or insurance payments) are made on or before the
                          related penalty or expiration dates, as indicated on
                          the appropriate bills or notices for such payments,
                          provided that such support has been received by the
                          servicer at least 30 calendar days prior to these
                          dates, or such other number of days specified in the
1122(d)(4)(xi)            transaction agreements.
--------------------------------------------------------------------------------------------------------------------
                          Any late payment penalties in connection with any
                          payment to be made on behalf of an obligor are paid
                          from the Servicer's funds and not charged to the
                          obligor, unless the late payment was due to the
1122(d)(4)(xii)           obligor's error or omission.
--------------------------------------------------------------------------------------------------------------------
                          Disbursements made on behalf of an obligor are
1122(d)(4)(xiii)          posted within two business days to the obligor's
--------------------------------------------------------------------------------------------------------------------

                                 Appendix E-3
<PAGE>

--------------------------------------------------------------------------------------------------------------------
Reg AB Reference          Servicing Criteria                                        Applicable Servicing Criteria
--------------------------------------------------------------------------------------------------------------------
                          records maintained by the servicer, or such other
                          number of days specified in the transaction
1122(d)(4)(xiii)          agreements.
--------------------------------------------------------------------------------------------------------------------
                          Delinquencies, charge-offs and
                          uncollectible accounts are recognized
                          and recorded in accordance with the
1122(d)(4)(xiv)           transaction agreements.
--------------------------------------------------------------------------------------------------------------------
                          Any external enhancement or other support,
                          identified in Item 1114(a)(1) through (3) or Item
                          1115 of Regulation AB, is maintained as set forth in
1122(d)(4)(xv)            the transaction agreements.
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                    [__________________________________]

                                    By:________________________________
                                    Name:
                                    Title:

                                    Date: _________________________

                                 Appendix E-4
<PAGE>

                                  APPENDIX F

                       FORM OF PERFORMANCE CERTIFICATION

                                 CERTIFICATION

      Re:

      The undersigned [Indenture Trustee] [Subservicer] hereby certifies to
the [        ] and its officers, directors and Affiliates (collectively, the
"Certification Parties") as follows, with the knowledge and intent that the
Certification Parties will rely on this Certification in connection with the
certification concerning the Issuer to be signed by an officer of the Servicer
and submitted to the Securities and Exchange Commission pursuant to the
Sarbanes-Oxley Act of 2002:

      1. The [Indenture Trustee] [Subservicer] has reviewed the information
and reports provided by it to the Depositor and the Servicer pursuant to the
Servicing Agreement with respect to the servicing criteria assessment under
Section 9.06 of the Servicing Agreement (the "Information");

      2. Based on the [Indenture Trustee] [Subservicer]'s knowledge, the
Information, taken as a whole, does not contain any untrue statement of a
material fact or omit to state a material fact required in the Information and
necessary to make the statements made, in the light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by the 10-K report; and

      3. The servicing criteria assessment required to be provided by the
[Indenture Trustee] [Subservicer] pursuant to the Agreement, has been provided
to the Depositor and the Servicer. Any material instance of noncompliance with
the applicable Servicing Criteria has been disclosed in such report.

      [4. Any assessment of compliance with servicing criteria required to be
provided by any Subservicer of the Indenture Trustee have been provided by
such Subservicer.]

      Capitalized terms not otherwise defined herein have the meanings
ascribed thereto in the Servicing Agreement dated as of [_______________]
among [________________________________________________________________].

                                 Appendix F-1
<PAGE>

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

                                    By:________________________________
                                     Name:
                                    Title:

                                    Date: _________________________

                                 Appendix F-2
<PAGE>

                                  APPENDIX G

                       FORM OF PERFORMANCE CERTIFICATION

                                 CERTIFICATION

      Re:

      The undersigned Servicer hereby certifies to the [ ] and its officers,
directors and Affiliates (collectively, the "Certification Parties") as
follows, with the knowledge and intent that the Certification Parties will
rely on this Certification in connection with the certification concerning the
Issuer to be signed by an officer of the Servicer and submitted to the
Securities and Exchange Commission pursuant to the Sarbanes-Oxley Act of 2002:

      1. I have reviewed the servicer compliance statement of the Servicer
provided in accordance with Item 1123 of Regulation AB (the "Compliance
Statement"), the report on assessment of the Servicer's compliance with the
servicing criteria set forth in Item 1122(d) of Regulation AB (the "Servicing
Criteria"), provided in accordance with Rules 13a-18 and 15d-18 under
Securities Exchange Act of 1934, as amended (the "Exchange Act") and Item 1122
of Regulation AB (the "Servicing Assessment"), the registered public
accounting firm's attestation report provided in accordance with Rules 13a-18
and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the
"Attestation Report"), and all servicing reports, officer's certificates and
other information relating to the servicing of the Home Equity Loans by the
Servicer during 200[ ] that were delivered by the Servicer to the Indenture
Trustee pursuant to the Agreement (collectively, the "Servicer Servicing
Information");

      2. Based on my knowledge, the Servicer Servicing Information, taken as a
whole, does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in the light of
the circumstances under which such statements were made, not misleading with
respect to the period of time covered by the Servicer Servicing Information;

      3. Based on my knowledge, all of the Servicer Servicing Information
required to be provided by the Servicer under the Agreement has been provided
to the Indenture Trustee;

      4. I am responsible for reviewing the activities performed by the
Servicer as servicer under the Servicing Agreement dated as of [____], 20[__],
among [__________] (the "Servicer"), [__________] (the "Issuer"), Morgan
Stanley ABS Capital I Inc. (the "Depositor") and [__________] (the "Indenture
Trustee"), and based on my knowledge and the compliance review conducted in
preparing the Compliance Statement and except as disclosed in the Compliance
Statement, the Servicing Assessment or the Attestation Report, the Servicer
has fulfilled its obligations under the Agreement in all material respects;
and

                                 Appendix G-1
<PAGE>

      5. The Compliance Statement required to be delivered by the Servicer
pursuant to the Agreement, and the Servicing Assessment and Attestation Report
required to be provided by the Servicer and by any Subservicer pursuant to the
Agreement, have been provided to the Indenture Trustee. Any material instances
of noncompliance described in such reports have been disclosed to the
Depositor. Any material instance of noncompliance with the Servicing Criteria
has been disclosed in such reports.

      Capitalized terms not otherwise defined herein have the meanings
ascribed thereto in the Servicing Agreement dated as of dated as of [____],
20[__], among [__________] (the "Servicer"), [__________] (the "Issuer"),
Morgan Stanley ABS Capital I Inc. (the "Depositor") and [__________] (the
"Indenture Trustee").

                                  [SERVICER]

                                    By:________________________________
                                     Name:
                                    Title:
Date: _________________________

                                 Appendix G-2

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