Document:

EXHIBIT 4.5.2
                                                               EXECUTION VERSION

                            DATED 23 SEPTEMBER, 2002

                         GRANITE FINANCE FUNDING LIMITED
                                   as Funding

                              THE BANK OF NEW YORK
                               as Security Trustee

                           GRANITE MORTGAGES 02-2 PLC
                                as Current Issuer

                                NORTHERN ROCK PLC
                  as Current Issuer Start-up Loan Provider

                                     - AND -

                                     OTHERS

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

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                                    CONTENTS

Clause                                                                Page No.

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

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

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

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

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

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

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

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

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

10.   Amendment to Clause 16.9 of the Funding Deed of Charge...............8

11.   Notices and Demands..................................................8

12.   Non Petition Covenant................................................9

13.   Third Party Rights...................................................9

14.   Execution in Counterparts............................................9

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

      SCHEDULE I  UTILISATION OF ISSUER RESERVES .........................17

      APPENDIX 1 AMENDED AND RESTATED FUNDING PRIORITY OF PAYMENTS .......20

      APPENDIX 2 AMENDED AND RESTATED CLAUSE 16.9
      OF THE FUNDING DEED OF CHARGE ......................................29

                                       I

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THIS DEED OF ACCESSION is made on 23 September, 2002

BETWEEN:

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

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

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

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

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

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

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

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

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

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

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

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

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

NOW THIS DEED OF ACCESSION WITNESSES AS FOLLOWS

WHEREAS:

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

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

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

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

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

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

                                       2

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

1.   INTERPRETATION

     The provisions of the Master Definitions Schedule as amended and restated
     by (and appearing in Appendix 1 to) the Master Definitions Schedule Third
     Amendment Deed made on 23 September, 2002 between, among others, the
     Seller, Funding and the Mortgages Trustee (as the same have been and may be
     amended, varied or supplemented from time to time with the consent of the
     parties hereto) are expressly and specifically incorporated into and shall
     apply to this Agreement.

2.   REPRESENTATIONS AND WARRANTIES

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

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

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

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

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

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

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

                                       3

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

3.   ACCESSION

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

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

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

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

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

3.2  THE CURRENT ISSUER NOTE TRUSTEE:

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

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

4.   FUNDING SECURITY

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

                                       4

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

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

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

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

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

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

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

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

                                       5

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

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

5.   TITLE GUARANTEE

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

6.   APPLICATION

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

7.   SCOPE OF THE FUNDING DEED OF CHARGE

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

                                       6

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

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

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

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

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

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

8.   NOTICES AND ACKNOWLEDGEMENTS

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

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

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

                                       7

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

9.   AMENDMENT TO THE FUNDING PRIORITY OF PAYMENTS

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

10.  AMENDMENT TO CLAUSE 16.9 OF THE FUNDING DEED OF CHARGE

     The Funding Secured Creditors agree to amend and restate Clause 16.9
     (Security Trustee to act on Note Trustee direction) in accordance with
     APPENDIX 2 hereto.

11.  NOTICES AND DEMANDS

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

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

            For the attention of:   The Company Secretary

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

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

            Northern Rock PLC
            Northern Rock House
            Gosforth
            Newcastle upon Tyne
            NE3 4PL

            For the attention of:   The Group Secretary
            Facsimile:              +44 (0)191 213 2203

                                       8

<PAGE>

      and for the Current Issuer Note Trustee are:

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

            For the attention of:   Corporate Trust (Global Structured
            Finance)
            Facsimile:              +44 (020) 7964 6399.

12.  NON PETITION COVENANT

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

13.  THIRD PARTY RIGHTS

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

14.  EXECUTION IN COUNTERPARTS

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

15.  GOVERNING LAW AND JURISDICTION; APPROPRIATE FORUM

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

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

                                       9

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

                                       10

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

Funding

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

Name: NIGEL BRADLEY
Title: DIRECTOR

Name: CARL FLINN
Title: ALTERNATE DIRECTOR

THE SECURITY TRUSTEE

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

Name: KATE RUSSELL
Title: ASSISTANT VICE PRESIDENT

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

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

Name: KATE RUSSELL
Title: ASSISTANT VICE PRESIDENT

                                       11

<PAGE>

GRANITE 01-1 PLC

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

Name: CLIVE RAKESTROW
Representing LDC SECURITISATION DIRECTOR NO. 1 LIMITED
Title:  DIRECTOR

Name: IAN BOWDEN
Representing LDC SECURITISATION DIRECTOR NO. 2 LIMITED
Title:  DIRECTOR

GRANITE 01-2 PLC

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

Name: CLIVE RAKESTROW
Representing LDC SECURITISATION DIRECTOR NO. 1 LIMITED
Title:  DIRECTOR

Name: IAN BOWDEN
Representing LDC SECURITISATION DIRECTOR NO. 2 LIMITED
Title:  DIRECTOR

                                       12

<PAGE>

GRANITE 02-1 PLC

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

Name: CLIVE RAKESTROW
Representing LDC SECURITISATION DIRECTOR NO. 1 LIMITED
Title:  DIRECTOR

Name: IAN BOWDEN
Representing LDC SECURITISATION DIRECTOR NO. 2 LIMITED
Title:  DIRECTOR

THE CURRENT ISSUER

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

Name:  CARL FLINN
Title:  ALTERNATIVE DIRECTOR

Name:
Representing LDC SECURITISATION DIRECTOR NO. 1 LIMITED
Title:  DIRECTOR

                                       13

<PAGE>

THE CASH MANAGER

EXECUTED AS A DEED by                         )
                                              )
                                              )

as attorney for
NORTHERN ROCK PLC
in the presence of:

Witness Signature:

Name of Witness:

Occupation:

Address: 1 Threadneedle Street
         London EC2R 8AW

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

EXECUTED AS A DEED by                     )
                                          )
                                          )

as attorney for
NORTHERN ROCK PLC
in the presence of:

Witness Signature:

Name of Witness:

Occupation:

Address: 1 Threadneedle Street
         London EC2R 8AW

                                       14

<PAGE>

THE CORPORATE SERVICES PROVIDER

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

Name: NIGEL BRADLEY
Title: DIRECTOR

Name:
Title:

THE ACCOUNT BANK AND THE FUNDING GIC PROVIDER

EXECUTED AS A DEED by                         )
                                              )
                                              )

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

Witness Signature:

Name of Witness:

Occupation:

Address: 1 Threadneedle Street
         London EC2R 8AW

                                       15

<PAGE>

THE MORTGAGES TRUSTEE

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

Name:
Title: DIRECTOR

Name:
Title: DIRECTOR

                                       16

<PAGE>

                                   SCHEDULE I

                         UTILISATION OF ISSUER RESERVES

RESERVES FOR CURRENT ISSUER

1.   CURRENT ISSUER RESERVE FUND:

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

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

2.   CURRENT ISSUER LIQUIDITY RESERVE FUND:

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

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

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

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

                                       17

<PAGE>

                                   APPENDIX 1
             AMENDED AND RESTATED FUNDING PRIORITY OF PAYMENTS

                                     PART I

            FUNDING PRE-ENFORCEMENT REVENUE PRIORITY OF PAYMENTS

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

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

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

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

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

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

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

                                       18

<PAGE>

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

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

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

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

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

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

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

                                       19

<PAGE>

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

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

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

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

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

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

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

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

RULES FOR APPLICATION OF FUNDING AVAILABLE REVENUE RECEIPTS

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

                                       20

<PAGE>

     Fund or Issuer Liquidity Reserve Fund (if any) of any Issuer), shall
     constitute "SHARED ISSUER REVENUE RECEIPTS". Shared Issuer Revenue Receipts
     will be reallocated by the Cash Manager and distributed on such Payment
     Date among the Issuers as payments of interest and fees under the
     applicable Intercompany Loans to the extent required to make payments of
     interest due on the Notes, to credit the related Issuer Principal
     Deficiency Ledgers and to pay other costs, expenses and third party amounts
     payable by the Issuers under the relevant Issuer Priority of Payments (but
     excluding principal payable under any Intercompany Loan). Such reallocation
     and distribution will continue to be made on such Payment Date until there
     are no remaining amounts of Shared Issuer Revenue Receipts to be
     reallocated and distributed on such Payment Date. If there is more than one
     Issuer that is entitled to Shared Issuer Revenue Receipts then each such
     Issuer will be reallocated a portion of the Shared Issuer Revenue Receipts
     equal to:

<TABLE>
<S>                                              <C>
                                                   Outstanding Principal Balance of the
                                                     Intercompany Loan of the Issuer
     Amount of Shared Issuer Revenue Receipts x  -------------------------------------------
                                                   Aggregate Outstanding Principal Balance
                                                   of the Intercompany Loans of all Issuers
</TABLE>

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

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

                                       21

<PAGE>

     and may be utilized by Funding in paying any other liability of Funding
     subject to and in accordance with the relevant Funding Priority of
     Payments.

     (4) If on any Payment Date any Issuer Allocable Revenue Receipts and/or any
     Shared Issuer Revenue Receipts are paid to an Issuer and are applied by
     that Issuer, in reducing any deficiency recorded on the Issuer Principal
     Deficiency Ledger of that Issuer (but only to the extent that any
     deficiency which has arisen as a result of (i) losses on the Mortgage Loans
     allocated by Funding to the Issuer and/or (ii) the application of Funding
     Available Principal Receipts to fund the Issuer Liquidity Reserve Fund of
     the Issuer, but not as a result of any other principal deficiency of the
     Issuer), then the Issuer Allocable Revenue Receipts and/or Shared Issuer
     Revenue Receipts so applied shall constitute repayments of principal under
     the relevant Intercompany Loan and shall reduce the Outstanding Principal
     Balance of that Intercompany Loan accordingly.

                                       22

<PAGE>

                                     Part II

           FUNDING PRE-ENFORCEMENT PRINCIPAL PRIORITY OF PAYMENTS

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

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

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

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

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

RULES FOR APPLICATION OF FUNDING AVAILABLE PRINCIPAL RECEIPTS

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

          (a) (only if relevant) the principal amount due on the Intercompany
          Loan of such Issuer which is an amount equal to the Controlled
          Amortisation

                                       23

<PAGE>

          Amount due, if any, on the Payment Date immediately succeeding such
          Distribution Date; and

          (b) an amount equal to:

<TABLE>
<S>                                          <C>
                                               Outstanding Principal Balance on such
                                                      Issuer's Intercompany Loan
     Funding Available Principal Receipts x  -------------------------------------------
                                               Aggregate Outstanding Principal Balance
                                               of the Intercompany Loans of all Issuers
</TABLE>

      PROVIDED THAT,

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

     (b) for the purposes only of determining the amount of Shared Issuer
     Principal Receipts in accordance with paragraph (6) below, Issuer Allocable
     Principal Receipts shall be an amount equal to the amount calculated in
     accordance with paragraph 1(b) above only and paragraph 1(a) above shall
     not apply.

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

     (3) For the purpose of determining the amount of Issuer Allocable Principal
     Receipts and/or any Shared Issuer Principal Receipts which may be paid to
     any Issuer on a Payment Date pursuant to paragraph (1) above or paragraph
     (6) below, the

                                       24

<PAGE>

     Outstanding Principal Balance of that Intercompany Loan shall be deemed to
     be reduced by the amount of:

          (a)  any deficiency recorded on the Issuer Principal Deficiency Ledger
               of that Issuer as at such Payment Date, but only to the extent
               that such deficiency has arisen as a result of (i) losses on the
               Mortgage Loans allocated by Funding to that Issuer and/or (ii)
               the application of Funding Available Principal Receipts to fund
               the Issuer Liquidity Reserve Fund of that Issuer but not as a
               result of any other principal deficiency of that Issuer; and

          (b)  the Outstanding Principal Balance as at such Payment Date of any
               Special Repayment Notes issued by that Issuer.

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

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

     (6) The portion of Issuer Allocable Principal Receipts (calculated in
     accordance with paragraph 1(b) above), if any, not required to be applied
     by the Issuer to pay principal on the Notes on a Payment Date together with
     the portion of Issuer Allocable Principal Receipts relating to all other
     Issuers not required to be so applied by such other Issuers (or otherwise
     required to be set aside by Funding for any Issuer) on that Payment Date
     (excluding the amount of any Issuer Reserve Fund or Issuer Liquidity
     Reserve Fund (if any) of any Issuer), shall constitute "SHARED ISSUER
     PRINCIPAL RECEIPTS". Shared Issuer Principal Receipts will be reallocated
     by the Cash Manager and distributed on such Payment Date among the Issuers
     as payments of principal under the applicable Intercompany Loans to the
     extent required to make payments of principal due on the relevant Notes.
     Such reallocation and distribution will continue to be made on such Payment
     Date until there are no remaining amounts of Shared Issuer Principal
     Receipts to be reallocated and distributed on such Payment Date. Save as
     provided in paragraph (2) above, if there is more than one Issuer that is

                                       25

<PAGE>

     entitled to Shared Issuer Principal Receipts, then each such Issuer will be
     reallocated a portion of the Shared Issuer Principal Receipts equal to:

<TABLE>
<S>                                      <C>
                                           Outstanding Principal Balance of the
                                             Intercompany Loan of the Issuer
     Shared Issuer Principal Receipts x  -------------------------------------------
                                           Aggregate Outstanding Principal Balance
                                           of the Intercompany Loans of all Issuers
</TABLE>

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

                                       26

<PAGE>

                                    PART III

               FUNDING POST-ENFORCEMENT PRIORITY OF PAYMENTS

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

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

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

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

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

     (D)  fourth, (in no order of priority between them but in proportion to the
          respective amounts due) to each Issuer its share of Issuer Allocable
          Revenue Receipts and Issuer Allocable Principal Receipts towards
          payment of amounts of interest, principal and fees due to such Issuer
          under such Issuer's

                                       27

<PAGE>

          Intercompany Loan Agreement, which in the case of that Issuer shall be
          up to the aggregate amount of the amounts, and shall be applied in the
          amounts and priorities, as set forth in the Issuer Post-Enforcement
          Priority of Payments for that Issuer;

     (E)  fifth, towards payment of amounts due to each Issuer Start-up Loan
          Provider under the relevant Issuer Start-up Loan Agreement;

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

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

Provided that for the avoidance of doubt, subject to and in accordance with the
Funding Priority of Payments, funds standing to the credit of any Issuer Reserve
Fund or Issuer Liquidity Reserve Fund of an Issuer shall only be applied in
reduction of the liabilities owing under the Intercompany Loan of such Issuer.

                                       28

<PAGE>

                                   APPENDIX 2

       AMENDED AND RESTATED CLAUSE 16.9 OF THE FUNDING DEED OF CHARGE

16.9 Security Trustee to act on Note Trustee direction: Notwithstanding any
     other provision in any other Funding Transaction Document, the Funding
     Secured Creditors and Funding acknowledge that when exercising its opinion
     and/or when exercising the rights, benefits, power, trusts, authorities,
     directions and obligations expressed to be granted by this Funding Deed of
     Charge, the other Funding Transaction Documents or by operation of law, the
     Security Trustee shall act only at the request or direction of the Note
     Trustee(s) and shall not be responsible for any loss, costs, damages,
     expenses or inconveniences that may result from the exercise or
     non-exercise thereof PROVIDED THAT:

     (a)  if there is a conflict in directions, the Security Trustee shall have
          regard only to the directions of the Note Trustee(s) for the holders
          of the highest ranking class of Notes outstanding (meaning the Class A
          Notes for so long as there are Class A Notes outstanding and
          thereafter the Class B Notes so long as there are no Class A Notes
          outstanding, and thereafter the Class C Notes so long as there are
          neither Class A Notes nor Class B Notes outstanding and thereafter
          Class D Notes so long as there are neither Class A Notes, Class B
          Notes nor Class C Notes outstanding) (the "PRINCIPAL DIRECTIONS"); and

     (b)  if there is any conflict between the Principal Directions, due to two
          or more Issuers having Notes of the same class as their highest
          ranking class, the Security Trustee shall have regard only to the
          Principal Directions from the Note Trustee(s) for the holders of the
          greatest aggregate principal amount outstanding of the highest ranking
          class of Notes and for this purpose, the principal amount outstanding
          of any Note not denominated in Sterling shall be converted into
          Sterling at the rate specified in the Currency Swap Agreement
          applicable to such Note or, if at the relevant time there is no such
          Currency Swap Agreement in effect, at the "spot rate" at which the
          relevant currency is converted into Sterling on the foreign exchange
          markets,

     AND PROVIDED FURTHER THAT

          (i)  the Security Trustee shall not be bound to act unless it is first
               indemnified and/or secured to its satisfaction against all
               actions, proceedings, claims and demands to which it may render
               itself liable and all costs, charges, damages, expenses and
               liabilities which it may incur by so doing; and

          (ii) if any Note Trustee fails to give directions to the Security
               Trustee within a reasonable time, the Security Trustee shall be
               entitled to act only on the directions of the Note Trustee(s), if
               any, who have given directions, but subject always to the other
               provisions of this Clause 16.9;

         (iii) at any time when the Intercompany Loans have been repaid in full
               and/or there is no further claim outstanding under any
               Intercompany

                                       29

<PAGE>

               Loan Agreement, this Clause 16.9 (Security Trustee to act on Note
               Trustee's Discretion) shall no longer apply and the Security
               Trustee shall no longer be required to act at the request or
               direction of the Note Trustee but instead shall act at the
               request or direction of the Funding Secured Creditor which ranks
               next highest in the Funding Post-Enforcement Priority of
               Payments.

                                       30EXHIBIT 4.6
                                                               EXECUTION VERSION

                            DATED 23 SEPTEMBER, 2002

                           GRANITE MORTGAGES 02-2 PLC
                                as Current Issuer

                                       and

                              THE BANK OF NEW YORK
                                 as Note Trustee

               -------------------------------------------------
                                ISSUER TRUST DEED
               -------------------------------------------------

                           SIDLEY AUSTIN BROWN & WOOD
                              1 THREADNEEDLE STREET
                                 LONDON EC2R8AW
                             TELEPHONE 020 7360 3600
                             FACSIMILE 020 7626 7937
                               REF:30507-13/550548

<PAGE>

                             CROSS-REFERENCE TABLE*

Section of Trust
Indenture Act of
1939, as amended                                                 Section of Deed
----------------                                                 ---------------
310(a)......................................................................14.2
310(b)......................................................................14.2
310(c)..............................................................Inapplicable
311(a)..................................................................10.3(kk)
311(b)..................................................................10.3(kk)
311(c)..............................................................Inapplicable
312(a).....................................................................5(ee)
312(b)......................................................................19.2
312(c)......................................................................19.2
313.....................................................................10.3(jj)
314(a)......................................................................5(u)
314(b).....................................................................5(gg)
314(c)................................................................16.1, 17.1
314(d)......................................................................17.1
314(e)......................................................................16.2
315(a)..................................................................... 10.1
315(b)......................................................................10.8
315(c).......................................................................2.7
315(d).....................................................................10.12
316(a).................................................................7.2, 11.2
316(b)....................................................................2.2(d)
316(c).......................................................................7.2
317(a).......................................................................6.1
317(b)......................................................................5(p)
318(a)........................................................................15
318(b)......................................................................17.4
318(c).......................................................................1.4

* This Cross-Reference Table does not constitute part of this Deed and shall not
affect the interpretation of any of its terms or provisions.

                                       i
<PAGE>

                                TABLE OF CONTENTS

CLAUSE                                                                      PAGE

1.       Definitions...........................................................1

2.       Covenant to Repay etc.................................................3

3.       Form, Issue and Deposit of Note Certificates..........................6

4.       Covenant of Compliance................................................9

5.       Covenants by the Current Issuer.......................................9

6.       Enforcement..........................................................15

7.       Proceedings, Actions and Indemnification.............................16

8.       Application of Moneys etc............................................17

9.       Remuneration and Indemnification of Note Trustee.....................18

10.      Supplement to the Trustee Acts.......................................21

11.      Modification and Waiver..............................................31

12.      Entitlement to Treat holder as owner.................................33

13.      Currency Indemnity...................................................33

14.      Appointment, Removal and Retirement of Note Trustee..................34

15.      Trust Indenture Act Prevails.........................................35

16.      Certificates and Opinions............................................36

17.      Release of Collateral................................................36

18.      Rights Cumulative....................................................37

19.      Notices..............................................................37

20.      Third Party Rights...................................................38

21.      Execution in Counterparts; Severability..............................38

22.      Governing Law and Jurisdiction; Appropriate Forum....................38

SCHEDULE 1 FORMS OF GLOBAL NOTE CERTIFICATES..................................40
SCHEDULE 2 FORMS OF INDIVIDUAL NOTE CERTIFICATES..............................63
SCHEDULE 3 CURRENT ISSUER CONDITIONS OF THE NOTES.............................80
SCHEDULE 4 PROVISIONS FOR MEETINGS OF NOTEHOLDERS.............................81

                                       ii
<PAGE>

THIS ISSUER TRUST DEED is made on 23 September 2002

BETWEEN:

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

(2)      THE BANK OF NEW YORK, a New York banking corporation acting through its
         London branch at One Canada Square, Canary Wharf, London E14 5AL in its
         capacity as Note Trustee.

WHEREAS:

(A)      By a resolution of a duly authorised Board of Directors of the Current
         Issuer passed on 10 September, 2002 the Current Issuer authorised the
         creation and issue of the Current Issuer Notes.

(B)      The Note Trustee has agreed to act as trustee of these presents for the
         benefit of the Noteholders upon and subject to the Current Issuer
         Conditions.

NOW THIS ISSUER TRUST DEED WITNESSES AND IT IS AGREED AND DECLARED:

1.       DEFINITIONS

1.1      The provisions of:

         (a)      the Master Definitions Schedule as amended and restated by
                  (and appearing as Appendix 1 to) the Master Definitions
                  Schedule Third Amendment Deed made on 23 September, 2002
                  between, among others, the Seller, Funding and the Mortgages
                  Trustee, and

         (b)      the Issuer Master Definitions Schedule signed for the purposes
                  of identification by Sidley Austin Brown & Wood and Allen &
                  Overy on 23 September, 2002,

         (as the same have been and may be amended, varied or supplemented from
         time to time with the consent of the parties hereto) are expressly and
         specifically incorporated into and shall apply to this Deed.

         The Issuer Master Definitions Schedule specified above shall prevail to
         the extent that it conflicts with the Master Definitions Schedule.

1.2      All references in these presents:

         (a)      to principal and/or premium and/or interest in respect of the
                  Current Issuer Notes or to any monies payable by the Current
                  Issuer under these presents shall be deemed to include a
                  reference to any additional amounts which may be payable under
                  Condition 4(B) (Payment Dates and Interest Periods) or, if
                  applicable, under any undertaking or covenant given pursuant
                  to Clause 2.2 (Covenant to Repay).

                                        1
<PAGE>

         (b)      to "THESE PRESENTS" and/or to "THIS DEED" means this Trust
                  Deed, the schedules hereto, any deed expressed to be
                  supplemental hereto and the Current Issuer Deed of Charge all
                  as from time to time supplemented or modified in accordance
                  with the provisions contained in these presents and/or where
                  applicable, therein contained.

         (c)      to guarantees or to an obligation being guaranteed shall be
                  deemed to include respectively references to indemnities or to
                  an indemnity being given in respect thereof.

         (d)      to any action, remedy or method of proceeding for the
                  enforcement of the rights of creditors shall be deemed to
                  include, in respect of any jurisdiction other than England,
                  references to such action, remedy or method of proceeding for
                  the enforcement of the rights of creditors available or
                  appropriate in such jurisdiction as shall most nearly
                  approximate to such action, remedy or method of proceeding
                  described or referred to in these presents.

         (e)      to taking proceedings against the Current Issuer shall be
                  deemed to include references to proving in the winding up of
                  the Current Issuer.

         (f)      to DTC, Euroclear and Clearstream, Luxembourg shall be deemed
                  to include references to any other or additional clearing
                  system as may be approved in writing by the Note Trustee.

1.3      Unless the context otherwise requires words or expressions used in
         these presents shall bear the same meanings as in the Companies Act
         1985 of England.

1.4      Whenever these presents refers to a provision of the Trust Indenture
         Act, the provision is incorporated by reference in and made part of
         these presents. All other Trust Indenture Act terms used in these
         presents that are defined by the Trust Indenture Act, defined in the
         Trust Indenture Act by reference to another statute or defined by SEC
         rule have the meanings assigned to them in the Trust Indenture Act.

1.5      For the purposes of determining whether a direction, request or consent
         has been received from the holders of at least 25 per cent. in
         Principal Amount Outstanding of any class of Notes, the Principal
         Amount Outstanding of any Note denominated in Dollars or Euro shall be
         converted into Sterling at the relevant Dollar Currency Swap Rate or
         Euro Currency Swap Rate, as the case may be.

1.6      "OUTSTANDING" means, in relation to the Current Issuer Notes, all the
         Current Issuer Notes other than:

                  (a)      those which have been redeemed in accordance with
                           these presents;

                  (b)      those in respect of which the date for redemption in
                           accordance with the provisions of the Current Issuer
                           Conditions has occurred and for which the redemption
                           moneys (including all interest accrued thereon to
                           such date for redemption) have been duly paid to the
                           Note Trustee or the Principal Paying Agent in the
                           manner provided for in the Current Issuer Paying
                           Agent and Agent Bank Agreement (and, where

                                       2
<PAGE>

                           appropriate, notice to that effect has been given to
                           the relevant class or classes of Noteholders in
                           accordance with Condition 14 (Notice to Noteholders))
                           and remain available for payment in accordance with
                           the Current Issuer Conditions;

                  (c)      those which have been purchased and surrendered for
                           cancellation as provided in Condition 5 (Redemption,
                           Purchase and Cancellation) and notice of the
                           cancellation of which has been given to the Note
                           Trustee;

                  (d)      those which have become void under Condition 7
                           (Prescription);

                  (e)      those mutilated or defaced Note Certificates which
                           have been surrendered or cancelled and in respect of
                           which replacement Note Certificates have been issued
                           pursuant to Condition 13 (Replacement of Notes);

                  (f)      (for the purpose only of ascertaining the amount of
                           the Current Issuer Notes outstanding and without
                           prejudice to the status for any other purpose of the
                           relevant Current Issuer Notes) those Note
                           Certificates which are alleged to have been lost,
                           stolen or destroyed and in respect of which
                           replacements have been issued pursuant to Condition
                           13 (Replacement of Notes);

                  (provided that) for each of the following purposes, namely:

                  (i)      the right to attend and vote at any Meeting (as
                           defined in Schedule 4 (Provisions for Meetings of
                           Noteholders) hereto);

                  (ii)     the determination of how many and which Current
                           Issuer Notes are for the time being outstanding for
                           the purposes of Clauses 7 (Proceedings, Actions and
                           Indemnification) and 11.2 (Waiver), Condition 10
                           (Enforcement of Notes) and Schedule 4 (Provisions for
                           Meetings of Noteholders); and

                  (iii)    any discretion, power or authority, whether contained
                           in these presents or provided by law, which the Note
                           Trustee is required to exercise in or by reference to
                           the interests of the Noteholders or any of them,

                  those Current Issuer Notes (if any) which are for the time
                  being held by any person (including but not limited to the
                  Current Issuer or any subsidiary or affiliate of either for
                  the benefit of the Current Issuer or any subsidiary or
                  affiliate shall (unless and until ceasing to be so held) be
                  deemed not to remain outstanding.

2.       COVENANT TO REPAY ETC.

2.1      THE CURRENT ISSUER NOTES: The aggregate principal amount of:

         (a)      the Series 1 Class A1 Notes is limited to US$650,000,000;

         (b)      the Series 1 Class A2 Notes is limited to US$1,150,000,000;

                                       3
<PAGE>

         (c)      the Series 1 Class B Notes is limited to US$60,000,000;

         (d)      the Series 1 Class C Notes is limited to US$88,000,000;

         (e)      the Series 2 Class A Notes is limited to (euro)1,100,000,000;

         (f)      the Series 2 Class B Notes is limited to (euro)41,000,000;

         (g)      the Series 2 Class C Notes is limited to (euro)53,000,000;

         (h)      the Series 3 Class A Notes is limited to (pound)665,000,000;

         (i)      the Series 3 Class B Notes is limited to (pound)25,000,000;
                  and

         (j)      the Series 3 Class C Notes is limited to (pound)33,000,000.

2.2      COVENANT TO REPAY: The Current Issuer covenants with the Note Trustee
         that it will, in accordance with these presents, on the Final Maturity
         Date of the Current Issuer Notes, or on such earlier date as the same
         or any part thereof may become due and repayable thereunder in
         accordance with the Current Issuer Conditions, pay or procure to be
         paid unconditionally to or to the order of the Note Trustee in
         Sterling, Euro or US dollars, as applicable, in London or New York
         City, as applicable, in immediately available funds or same day funds,
         as applicable, the principal amount of the Current Issuer Notes
         repayable on that date and shall in the meantime and until all such
         payments (both before and after any judgment or other order of a court
         of competent jurisdiction) are duly made (subject to the provisions of
         the Current Issuer Conditions) pay or procure to be paid
         unconditionally to or to the order of the Note Trustee as aforesaid
         interest (which shall accrue from day to day) on the Principal Amount
         Outstanding of the Current Issuer Notes at the rates set out in or (as
         the case may be) calculated from time to time in accordance with
         Condition 4 (Interest) and on the dates on which such interest becomes
         due and payable in accordance with the Current Issuer Conditions
         provided that:

         (a)      every payment of principal or interest in respect of the
                  Current Issuer Notes or any of them to or to the account of
                  the Paying Agents in the manner provided in the Current Issuer
                  Paying Agent and Agent Bank Agreement shall operate in
                  satisfaction pro tanto of the relative covenant by the Current
                  Issuer in this Clause except to the extent that there is
                  default in the subsequent payment thereof to the Noteholders
                  in accordance with the Current Issuer Conditions;

         (b)      if any payment of principal or interest in respect of the
                  Current Issuer Notes or any of them is made after the due
                  date, payment shall be deemed not to have been made until
                  either the full amount is paid to the Noteholders or, if
                  earlier, the seventh day after notice has been given to the
                  Noteholders in accordance with the Current Issuer Conditions
                  that the full amount has been received by the Note Trustee or
                  the Paying Agents, to the extent that there is a failure in
                  the subsequent payment to Noteholders under the Current Issuer
                  Conditions;

         (c)      in any case where payment of the whole or any part of the
                  principal amount of any Current Issuer Note is improperly
                  withheld or refused upon due presentation thereof (if so
                  provided in the Current Issuer Paying Agent and

                                       4
<PAGE>

                  Agent Bank Agreement) interest shall accrue on the whole or
                  such part of such principal amount which has been so withheld
                  or refused (both before and after any judgment or other order
                  of a court of competent jurisdiction) at the rates aforesaid
                  from and including the date of such withholding or refusal up
                  to and including the date on which such principal amount due
                  is paid to the Noteholders or (if earlier) the seventh day
                  after notice is given to the Noteholders in accordance with
                  the Current Issuer Conditions that the full amount (including
                  interest as aforesaid) payable in respect of the principal
                  amount is available for payment, provided that, upon further
                  due presentation thereof (if so provided in the Current Issuer
                  Paying Agent and Agent Bank Agreement), such payment is in
                  fact made; and

         (d)      notwithstanding any other provision of these presents,
                  pursuant to Section 316(b) of the Trust Indenture Act the
                  right of any Noteholder to receive payment of principal and
                  interest on the Current Issuer Notes, on or after the
                  respective due dates expressed in the Current Issuer Notes, or
                  to bring suit for the enforcement of any such payment on or
                  after such respective dates, shall not be impaired or affected
                  without the consent of the Noteholder.

2.3      ADDITIONAL INTEREST: The Current Issuer shall pay Additional Interest
         in accordance with Condition 4(B) (Payment Dates and Interest Periods).

2.4      ON TRUST: The Note Trustee will hold the benefit of the covenants
         contained in this Clause 2 (Covenant to Repay, etc) on trust for the
         Noteholders and itself in accordance with these presents.

2.5      NOTE TRUSTEE'S REQUIREMENTS REGARDING AGENTS, ETC.: At any time after a
         Note Event of Default shall have occurred (which shall not have been
         waived by the Note Trustee or remedied to its satisfaction) or the
         Current Issuer Notes shall otherwise have become due and repayable or
         Individual Note Certificates have not been issued when so required in
         accordance with these presents and the Global Note Certificates, the
         Note Trustee may:

         (a)      by notice in writing to the Current Issuer, the Principal
                  Paying Agent, the US Paying Agent, the Agent Bank, the
                  Transfer Agent and the Registrar require such Agents or any of
                  them pursuant to the Current Issuer Paying Agent and Agent
                  Bank Agreement:

                  (i)      to act thereafter, and until otherwise instructed by
                           the Note Trustee, as Agents respectively of the Note
                           Trustee on the terms provided in the Current Issuer
                           Paying Agent and Agent Bank Agreement (with
                           consequential amendments as necessary and save that
                           the Note Trustee's liability under any provisions
                           thereof for the indemnification, remuneration and
                           payment of out-of-pocket expenses of the Agents shall
                           be limited to the amounts for the time being held by
                           the Note Trustee on the trusts of these presents
                           relating to the Current Issuer Notes and available
                           for such purpose) and thereafter to hold all Note
                           Certificates and all sums, documents and records held
                           by them in respect of Current Issuer Notes on behalf
                           of the Note Trustee; and/or

                                       5
<PAGE>

                  (ii)     to deliver up all Note Certificates and all sums,
                           documents and records held by them in respect of the
                           Current Issuer Notes to the Note Trustee or as the
                           Note Trustee shall direct in such notice provided
                           that such notice shall be deemed not to apply to any
                           documents or records which the relevant Agent or the
                           Registrar, as the case may be, is obliged not to
                           release by any law or regulation; and/or

         (b)      by notice in writing to the Current Issuer require it to make
                  all subsequent payments in respect of the Current Issuer Notes
                  to or to the order of the Note Trustee with effect from the
                  issue of any such notice to the Current Issuer and until such
                  notice is withdrawn, Clause 2.2(a) above relating to the
                  Current Issuer Notes shall cease to have effect.

2.6      INTEREST FOLLOWING DEFAULT: The rate of interest payable in respect of
         the Current Issuer Notes if they become immediately repayable pursuant
         to a notice given to the Note Trustee pursuant to the Current Issuer
         Conditions shall be calculated at three monthly intervals, the first of
         which shall commence on the expiry of the Interest Period (as defined
         in the Current Issuer Conditions) during which the Current Issuer Notes
         become so repayable, in accordance with the Current Issuer Conditions
         (with consequential amendments as necessary) except that the rates of
         interest need not be published.

2.7      EXERCISE BY TRUSTEE FOLLOWING DEFAULT: If a Note Event of Default has
         occurred and is continuing, the Note Trustee shall exercise any or all
         of the rights and powers vested in it by these presents and use the
         same degree of care and skill in its exercise as a prudent person would
         exercise or use under the circumstances in the conduct of such person's
         own affairs in accordance with Section 315(c) of the Trust Indenture
         Act.

3.       FORM, ISSUE AND DEPOSIT OF NOTE CERTIFICATES

3.1      GLOBAL NOTE CERTIFICATES:

         (a)      The US Notes will be initially offered and sold pursuant to a
                  Registration Statement filed with the SEC. Each class of the
                  US Notes will be issued in fully registered global form and be
                  initially represented by a US Global Note Certificate and
                  which, in aggregate, will represent the aggregate Principal
                  Amount Outstanding of the US Notes.

         (b)      The Reg S Notes will be initially offered and sold outside the
                  United States to non-US persons pursuant to Reg S. Each class
                  of the Reg S Notes will be issued in fully registered global
                  form and be initially represented by a Reg S Global Note
                  Certificate and which, in aggregate, will represent the
                  aggregate Principal Amount Outstanding of the Reg S Notes.

         (c)      The Global Note Certificates shall be issued by the Current
                  Issuer and (1) in the case of the US Notes, the US Global Note
                  Certificates will be registered in the name of Cede & Co. as
                  nominee for DTC, and be deposited with, the DTC Custodian and
                  (2) in the case of the Reg S Notes, the Reg S Global Note
                  Certificates will be registered in the name of Citivic
                  Nominees Limited as nominee for, and will be deposited with,
                  the Common Depositary.

                                       6
<PAGE>

         (d)      Interests in the US Global Note Certificates and the Reg S
                  Global Note Certificates shall be exchangeable, in accordance
                  with their respective terms and as set out in Clause 3.3
                  (Individual Note Certificates) hereof, for Individual Note
                  Certificates.

3.2      FORM OF GLOBAL NOTE CERTIFICATES: The Global Note Certificates shall be
         printed or typewritten and shall be in the form or substantially in the
         respective forms set out in Schedule 1 (Forms of Global Note
         Certificates) and may be a facsimile which the Current Issuer shall
         deposit with the DTC Custodian or the Common Depositary, as the case
         may be. Each Global Note Certificate shall represent such of the
         outstanding Current Issuer Notes of the relevant class as shall be
         specified therein and shall be endorsed with the relevant Current
         Issuer Conditions and each shall provide that it shall represent the
         aggregate Principal Amount Outstanding of the relevant class of Current
         Issuer Notes from time to time endorsed on the relevant Global Note
         Certificate and that the aggregate Principal Amount Outstanding of the
         Current Issuer Notes represented thereby may from time to time be
         reduced or increased, as appropriate, to reflect exchanges,
         redemptions, purchases and transfers of interests therein in accordance
         with the terms of these presents and the Current Issuer Paying Agent
         and Agent Bank Agreement. Any notation on the Register to reflect the
         amount of any increase or decrease in the Principal Amount Outstanding
         of the Current Issuer Notes represented by a Global Note Certificate
         shall be made by or on behalf of the Registrar in accordance with such
         Global Note Certificate and the Current Issuer Paying Agent and Agent
         Bank Agreement. The Global Note Certificates shall be issued only in
         registered form without coupons or talons and signed manually or in
         facsimile by a person duly authorised by the Current Issuer on behalf
         of the Current Issuer and the Current Issuer shall procure that the
         Global Note Certificates shall be authenticated by or on behalf of the
         Registrar on the Closing Date. The Global Note Certificates so executed
         and authenticated shall be binding and valid obligations of the Current
         Issuer, notwithstanding that such duly authorised person no longer
         holds that office at the time the Registrar authenticates the relevant
         Global Note Certificate. Title to the Current Issuer Notes shall only
         pass by and upon the registration in the Register in respect thereof in
         accordance with the provisions of the Current Issuer Paying Agent and
         Agent Bank Agreement.

3.3      INDIVIDUAL NOTE CERTIFICATES: The Current Issuer shall issue Individual
         Note Certificates only if one or more of the following applies while
         the Current Issuer Notes are represented by Global Note Certificates.
         At any time after the 40th day following the later of the Closing Date
         and the date of the issue of such Global Note Certificates:

         (a)      (i) (in the case of the US Global Note Certificates) DTC has
                  notified the Current Issuer that it is at any time unwilling
                  or unable to continue as, or has ceased to be, a clearing
                  agency registered under the Exchange Act, and a successor to
                  DTC registered as a clearing agency under the Exchange Act is
                  not able to be appointed by the Current Issuer within 90 days
                  of such notification; or (ii) (in the case of the Reg S Global
                  Note Certificates) both Euroclear and Clearstream, Luxembourg
                  are closed for business for a continuous period of 14 days
                  (other than by reason of holiday, statutory or otherwise) or
                  announce an intention permanently to cease business and do so

                                       7
<PAGE>

                  cease to do business and no alternative clearing system
                  satisfactory to the Note Trustee is available; or

         (b)      as a result of any amendment to, or change in, the laws or
                  regulations of the United Kingdom (or of any political
                  sub-division thereof) or of any authority therein or thereof
                  having power to tax or in the interpretation or administration
                  by a revenue authority or a court or administration of such
                  laws or regulations which becomes effective on or after the
                  Closing Date, the Current Issuer or any Paying Agent is or
                  will be required to make any deduction or withholding from any
                  payment in respect of the Current Issuer Notes which would not
                  be required were the Current Issuer Notes represented by
                  Individual Note Certificates.

         If required by this Clause 3.3 (Individual Note Certificates), then the
         Current Issuer shall, at its sole cost and expense within 30 days of
         the occurrence of the relevant event, issue Individual Note
         Certificates of the same class as the class of Current Issuer Notes
         represented by the relevant Global Note Certificate.

         If Individual Note Certificates are issued, the beneficial interests
         represented by the Reg S Global Note Certificate representing each
         class shall be exchanged by the Current Issuer for Reg S Individual
         Note Certificates of that class and the beneficial interests
         represented by the US Global Note Certificate representing each class
         shall be exchanged by the Current Issuer for US Individual Note
         Certificates of that class.

3.4      FORM OF INDIVIDUAL NOTE CERTIFICATES: The Individual Note Certificates
         shall be printed or typewritten in accordance with all applicable legal
         and stock exchange requirements and be in the form or substantially in
         the relevant form set out in Schedule 2 (Forms of Individual Note
         Certificates). Individual Note Certificates will be in the
         denominations, and transferable in units, of (i) US$1,000 and US$10,000
         (in the case of the Dollar Notes) (ii) (pound)1,000 or (pound)10,000
         (in the case of the Sterling Notes) (iii) (euro)1,000 or (euro)10,000
         (in the case of the Euro Notes) each, shall be serially numbered and
         shall be endorsed with the relevant Current Issuer Conditions and a
         form of transfer in the form or substantially in the relevant form also
         set out in Schedule 2 (Forms of Individual Note Certificates). Title to
         the Individual Note Certificates shall only pass by and upon the
         registration in the Register in respect thereof in accordance with the
         provisions of the Current Issuer Paying Agent and Agent Bank Agreement.
         The Individual Note Certificates shall be issued only in registered
         form and signed manually or in facsimile by a person duly authorised by
         or on behalf of the Current Issuer and the Current Issuer shall procure
         that the Individual Note Certificates shall be authenticated by or on
         behalf of the Registrar. Each Individual Note Certificate so executed
         and authenticated shall be a binding and valid obligation of the
         Current Issuer notwithstanding that such duly authorised person no
         longer holds that office at the time the Registrar authenticates the
         relevant Individual Note Certificate.

3.5      INDEMNITY: If the Current Issuer is obliged to issue or procure the
         issue of any Individual Note Certificate pursuant to Clause 3.3
         (Individual Note Certificates) but fails to do so within 30 days of the
         occurrence of the relevant event described in Clause 3.3 (Individual
         Note Certificates), then the Current Issuer shall indemnify the Note
         Trustee and the relevant Noteholders and keep them indemnified against
         any loss or damage incurred by any of them if the amount received by
         the Note Trustee or the relevant Noteholders in respect of the Current
         Issuer Notes is less than the amount

                                       8
<PAGE>

         that would have been received had Individual Note Certificates been
         issued in accordance with Clause 3.4 (Form of Individual Note
         Certificates). If and for so long as the Current Issuer discharges its
         obligations under this indemnity, the breach by the Current Issuer of
         the provisions of Clause 3.4 (Form of Individual Note Certificates)
         shall be deemed to be cured ab initio.

4.       COVENANT OF COMPLIANCE

4.1      COVENANT: The Current Issuer covenants with the Note Trustee that it
         will comply with and perform and observe all the provisions of these
         presents, the Current Issuer Notes (including the Current Issuer
         Conditions), the Current Issuer Deed of Charge, the Current Issuer
         Paying Agent and Agent Bank Agreement, and the documents executed
         pursuant thereto and the other Current Issuer Transaction Documents.
         The Current Issuer Conditions shall be binding on the Current Issuer,
         the Noteholders, the Note Trustee and all persons claiming through or
         under any of them. The Current Issuer Notes are subject to the
         provisions of these presents, all of which shall be binding on the
         Current Issuer, the Noteholders, the Note Trustee and all persons
         claiming through or under any of them.

4.2      ON TRUST: The Note Trustee shall hold the benefit of the covenants
         contained in this Clause 4 (Covenant of Compliance) upon trust for
         itself and the Noteholders according to its and their respective
         interests.

5.       COVENANTS BY THE CURRENT ISSUER

         The Current Issuer hereby covenants with the Note Trustee that, so long
         as any of the Current Issuer Notes remains outstanding, it will:

         (a)      BOOKS AND RECORDS: at all times keep such books of account and
                  records as may be necessary to comply with all applicable laws
                  and so as to enable accounts of the Current Issuer to be
                  prepared and allow the Note Trustee and any person appointed
                  by the Note Trustee free access to such books of account and
                  records at all reasonable times during normal business hours;

         (b)      ACCOUNTS FOR STOCK EXCHANGE: cause to be prepared and
                  certified by the Auditors of the Current Issuer in respect of
                  each Financial Year, accounts in such form as will comply with
                  all relevant legal and accounting requirements and all
                  requirements for the time being of any stock exchange,
                  competent listing authority and/or quotation system on which
                  the Current Issuer Notes are listed, quoted and/or traded;

         (c)      NOTEHOLDER INFORMATION: send to the Note Trustee two copies of
                  every balance sheet, profit and loss account, report, circular
                  and notice of general meeting and every other document issued
                  or sent to its shareholders or holders of securities other
                  than its shareholders (including the Noteholders) (or any
                  class of them) as soon as practicable after the issue or
                  publication thereof;

         (d)      INFORMATION: so far as permitted by applicable law, give or
                  procure to be given to the Note Trustee such opinions,
                  certificates, information and evidence as it shall require and
                  in such form as it shall require, including without limitation
                  the procurement by the Current Issuer of all such certificates
                  called for by the

                                       9
<PAGE>

                  Note Trustee pursuant to these presents or the purpose of the
                  discharge or exercise of the duties, trusts, powers,
                  authorities and discretions vested in it under these presents
                  or by operation of law;

         (e)      NOTICE OF NOTE EVENT OF DEFAULT: give notice in writing to the
                  Note Trustee forthwith upon becoming aware of the occurrence
                  of any Note Event of Default or any Potential Note Event of
                  Default immediately upon becoming aware thereof, including the
                  status of any such default or matter and what action the
                  Current Issuer is taking or proposes to take with respect
                  thereto, and without waiting for the Note Trustee to take any
                  action;

         (f)      CERTIFICATES RELATING TO FINANCIAL INFORMATION: give to the
                  Note Trustee (a) within 14 days after demand by the Note
                  Trustee therefor and (b) (without the necessity for any such
                  demand) promptly after the publication of its audited accounts
                  in respect of each Financial Year commencing with the
                  Financial Year first ending after the date hereof and in any
                  event not later than 180 days after the end of each such
                  Financial Year a certificate signed by two directors of the
                  Current Issuer to the effect that as at a date not more than
                  seven days prior to the date of such certificate (the
                  "CERTIFICATION DATE") there did not exist and had not existed
                  since the certification date of the previous certificate (or
                  in the case of the first such certificate the date hereof) any
                  Note Event of Default (or if such exists or existed specifying
                  the same) and that during the period from and including the
                  certification date of the last such certificate (or in the
                  case of the first such certificate the date hereof) to and
                  including the certification date of such certificate the
                  Current Issuer has complied, with all its obligations
                  contained in these presents and each of the Current Issuer
                  Transaction Documents to which it is a party or (if such is
                  not the case) specifying the respects in which it has not so
                  complied;

         (g)      NOTICE OF DEFERRAL OF PAYMENTS: as soon as practicable after
                  becoming aware that any part of a payment of interest on the
                  Current Issuer Notes will be deferred or that a payment
                  previously deferred will be made in accordance with Condition
                  4 (Interest), give notice thereof to the Noteholders in
                  accordance with the Current Issuer Conditions and, for so long
                  as the Current Issuer Notes are listed on the Official List of
                  the UK Listing Authority and admitted to trading by the London
                  Stock Exchange and/or such other exchange(s) or securities
                  market(s) upon which the Current Issuer Notes may become
                  listed, to the UK Listing Authority and to the London Stock
                  Exchange and/or such other exchange(s) or securities
                  market(s);

         (h)      FURTHER ASSURANCES: so far as permitted by applicable law, at
                  all times execute and do all such further documents, acts and
                  things as may be necessary at any time or times in the opinion
                  of the Note Trustee to give effect to these presents and the
                  other Current Issuer Transaction Documents;

         (i)      AGENT BANK, REFERENCE BANKS ETC.: at all times maintain an
                  Agent Bank, four Reference Banks, a Paying Agent, a Transfer
                  Agent and a Registrar in accordance with the Current Issuer
                  Conditions;

                                       10
<PAGE>

         (j)      NOTIFICATION OF NON-PAYMENT: procure that any Paying Agent
                  notify the Note Trustee forthwith in the event that (i) such
                  Paying Agent does not, on or before any Payment Date or due
                  date, as the case may be, for any payment in respect of any of
                  the Current Issuer Notes, receive unconditionally pursuant to
                  the Current Issuer Paying Agent and Agent Bank Agreement the
                  full amount in the requisite currency of the monies payable on
                  such Payment Date or due date, as the case may be, on all such
                  Current Issuer Notes, or (ii) there are insufficient funds in
                  Sterling, Euro or US dollars, as the case may be, available to
                  the relevant Paying Agent to discharge the amount of the
                  monies payable on such Payment Date or due date, as the case
                  may be;

         (k)      NOTIFICATION OF LATE PAYMENT: in the event of the
                  unconditional payment to the Paying Agents or the Note Trustee
                  of any sum due in respect of any of the Current Issuer Notes
                  or any of them being made after the due date for payment
                  thereof, forthwith give or procure to be given notice to the
                  relevant Noteholders in accordance with the Current Issuer
                  Conditions that such payment has been made;

         (l)      LISTING AND ADMISSION TO TRADING: use reasonable endeavours to
                  maintain the listing of the Current Issuer Notes on the
                  Official List of the UK Listing Authority and their admission
                  to trading by the London Stock Exchange or, if it is unable to
                  do so having used reasonable endeavours, use reasonable
                  endeavours to obtain and maintain a quotation or listing of
                  the Current Issuer Notes on such other stock exchange or
                  exchanges or securities market or markets as the Current
                  Issuer may decide (with the prior written approval of the Note
                  Trustee) and shall also upon obtaining a quotation or listing
                  of the Current Issuer Notes on such other stock exchange or
                  exchanges or securities market or markets enter into a trust
                  deed supplemental to these presents to effect such
                  consequential amendments to these presents as the Note Trustee
                  may require or as shall be requisite to comply with the
                  requirements of any such stock exchange or securities market;

         (m)      CHANGE OF AGENTS, ETC.: subject to the Current Issuer Paying
                  Agent and Agent Bank Agreement, give notice to the Noteholders
                  in accordance with the Current Issuer Conditions of any
                  appointment, resignation or removal of any Agent Bank,
                  Reference Bank, Paying Agent, Transfer Agent or Registrar
                  (other than the appointment of the initial Agent Bank,
                  Reference Banks, Paying Agents, Transfer Agent and Registrar)
                  after, except in the case of resignation, having obtained the
                  prior written approval of the Note Trustee (not to be
                  unreasonably withheld or delayed) thereto or any change of the
                  Specified Office of any Agent Bank, Paying Agent, Transfer
                  Agent or Registrar provided always that so long as any of the
                  Current Issuer Notes remains outstanding, in the case of the
                  termination of the appointment of the Agent Bank, the Transfer
                  Agent or the Registrar, or so long as any of the Current
                  Issuer Notes remains liable to prescription, in the case of
                  the termination of the appointment of the Principal Paying
                  Agent, no such termination shall take effect until a new Agent
                  Bank, the Transfer Agent, Registrar or Principal Paying Agent
                  (as the case may be) has been appointed on terms previously
                  approved in writing by the Note Trustee;

                                       11
<PAGE>

         (n)      PRE-APPROVAL OF NOTICES: obtain the prior written approval of
                  the Note Trustee to, and upon publication promptly give to the
                  Note Trustee and the Rating Agencies two copies of, every
                  notice given to the Noteholders in accordance with the Current
                  Issuer Conditions (such approval, unless so expressed, not to
                  constitute approval for the purposes of Section 21 of the
                  Financial Services and Markets Act 2000 (the "FSMA") of the
                  United Kingdom of any such notice the content of which is an
                  invitation or inducement to engage in investment activities
                  within the meaning of Section 21 of the FSMA);

         (o)      MEETINGS: from time to time as required or contemplated by
                  these presents or as reasonably requested by the Note Trustee,
                  make available through the Paying Agents or otherwise such
                  documents as may be required by the Noteholders in connection
                  with Meetings;

         (p)      COMPLIANCE WITH CURRENT ISSUER PAYING AGENT AND AGENT BANK
                  AGREEMENT: (A) observe and comply with its obligations and use
                  its reasonable endeavours to procure that the Agent Bank, the
                  Paying Agents, the Transfer Agent and the Registrar comply
                  with and perform all their respective obligations under the
                  Current Issuer Paying Agent and Agent Bank Agreement and any
                  notice given by the Note Trustee pursuant to Clause 2.5(a) and
                  not make any amendment or modification to such agreement or
                  agree to waive or authorise any breach thereof without the
                  prior written approval of the Note Trustee and notify the Note
                  Trustee forthwith upon becoming aware of any breach by any of
                  the Agent Bank, the Paying Agents, the Transfer Agent and/or
                  the Registrar, and (B) ensure that each Paying Agent under the
                  Current Issuer Paying Agent and Agent Bank Agreement agrees in
                  writing to (1) hold funds received by such Paying Agent for
                  the payment of any sums due in respect of any Current Issuer
                  Notes for the relevant Noteholders or the Note Trustee in
                  trust to the extent required by Section 317(b) of the Trust
                  Indenture Act, and (2) notify the Note Trustee of any default
                  by the Current Issuer in making any such payment;

         (q)      COMPLIANCE WITH CURRENT ISSUER TRANSACTION DOCUMENTS: observe
                  and comply with its obligations and use its reasonable
                  endeavours to procure that each other party to any of the
                  Current Issuer Transaction Documents complies with and
                  performs all its respective obligations under any Current
                  Issuer Transaction Document and not make any amendment or
                  modification to such agreement or agree to waive or authorise
                  any breach thereof without the prior written approval of the
                  Note Trustee and notify the Note Trustee forthwith upon
                  becoming aware of any breach by such other party to any
                  Current Issuer Transaction Document;

         (r)      INDIVIDUAL NOTE CERTIFICATES: notify the Note Trustee upon the
                  occurrence of any of the events referred to in Clause 3.3
                  (Individual Note Certificates) and shall promptly give notice
                  thereto and of its obligations to issue Individual Note
                  Certificates to the Noteholders in accordance with Condition
                  14 (Notice to Noteholders);

         (s)      EXERCISE OF REDEMPTION RIGHTS: subject to paragraph (t) below,
                  in the event that any notice of prepayment of the Current
                  Issuer Intercompany Loan is given under Clause 8 (Prepayment)
                  of the Intercompany Loan Terms and

                                       12
<PAGE>

                  Conditions, the Current Issuer shall exercise its right to
                  redeem the Current Issuer Notes on the same Payment Date under
                  Condition 5(D) (Optional Redemption in Full) or, as
                  applicable, Condition 5(E) (Optional Redemption for Tax and
                  other Reasons);

         (t)      REDEMPTION REQUIREMENTS: not redeem or, as the case may be,
                  give notice of redemption to Noteholders of all or any part of
                  a class or classes of Current Issuer Notes pursuant to
                  Condition 5(D) (Optional Redemption in Full) or Condition 5(E)
                  (Optional Redemption for Tax and other Reasons) unless it
                  shall first have provided to the Note Trustee such
                  certificates and opinions as may be required to be given to
                  the Note Trustee pursuant to and in accordance with Condition
                  5(D) (Optional Redemption in Full) or, as the case may be
                  Condition 5(E)(Optional Redemption for Tax and other Reasons);

         (u)      UNITED STATES REPORTING REQUIREMENTS: file with the Note
                  Trustee copies of the annual reports and of the information,
                  documents, and other reports (or copies of such portions of
                  any of the foregoing as the SEC may by rules and regulations
                  prescribe) which the Current Issuer is required to file with
                  the SEC pursuant to Section 13 or 15(d) of the Exchange Act
                  within 15 days after it files them with the SEC and comply
                  with the other provisions of Section 314(a) of the Trust
                  Indenture Act;

         (v)      INTEREST IN CURRENT ISSUER CHARGED PROPERTY: ensure that, save
                  as permitted in these presents, the Current Issuer Deed of
                  Charge and the other Current Issuer Transaction Documents, no
                  person other than the Current Issuer and the Note Trustee
                  shall have any equitable interest in the Current Issuer
                  Charged Property;

         (w)      MAINTENANCE OF CURRENT ISSUER CASH MANAGER: ensure that there
                  is at all times a cash manager appointed in accordance with
                  the provisions of the Current Issuer Cash Management
                  Agreement;

         (x)      TAX DEDUCTION: take reasonable steps to ensure that it does
                  not engage in any course of conduct that would lead to a
                  deduction, for United Kingdom corporation tax purposes, in
                  respect of accrued interest or discount on the Current Issuer
                  Notes by the Current Issuer being denied, postponed or
                  restricted (whether such denial, postponement or restriction
                  results from the application of paragraph 2 or 13 of Schedule
                  9 of the Finance Act 1996 or otherwise);

         (y)      UNITED KINGDOM AND UNITED STATES TAX STATUS: ensure that it is
                  at all times solely resident in the United Kingdom for United
                  Kingdom tax purposes and has no branch, business establishment
                  or other fixed establishment outside the United Kingdom; and
                  furthermore, ensure that it will not engage in any activities
                  in the United States (directly or through agents), will not
                  derive any income from United States sources as determined
                  under United States income tax principles, will not hold any
                  property if doing so would cause it to be engaged or deemed to
                  be engaged in a trade or business within the United States as
                  determined under United States income tax principles, and will
                  not (and will use its best efforts to procure that any
                  affiliate of the Current Issuer, including Funding, will not)
                  take any position that would contradict the

                                       13
<PAGE>

                  treatment of the Current Issuer Notes as indebtedness for
                  United States federal income tax purposes;

         (z)      CURRENT ISSUER PRE-ENFORCEMENT PRIORITY OF PAYMENTS: prior to
                  any enforcement of the security created under the Current
                  Issuer Deed of Charge, ensure that amounts standing to the
                  credit of the Current Issuer Transaction Account on a Payment
                  Date will be applied by the Current Issuer in or towards
                  satisfaction of such of the obligations set out in the
                  applicable Current Issuer Pre-Enforcement Priority of Payments
                  as may be, at any given time, then due and payable (in each
                  case only if and to the extent that payments or provisions of
                  a higher order of priority which are also due and payable or,
                  where relevant, are likely to fall due at that time or prior
                  to the next succeeding Payment Date have been made or provided
                  for in full);

         (aa)     AVAILABILITY OF INFORMATION: make available for inspection by
                  Noteholders at the Specified Office of the Principal Paying
                  Agent during normal business hours on any London Business Day
                  copies of each balance sheet and profit and loss account sent
                  to the Note Trustee pursuant to these presents, the Current
                  Issuer Paying Agent and Agent Bank Agreement and the other
                  Current Issuer Transaction Documents;

         (bb)     RATINGS: furnish, or procure that there is furnished, from
                  time to time, any and all documents, instruments, information
                  and undertakings that may be reasonably necessary in order to
                  maintain the current ratings of the Current Issuer Notes by
                  the Rating Agencies (save that when any such document,
                  instrument, information and/or undertaking is not within the
                  possession or control of the Current Issuer, the Current
                  Issuer agrees to use its reasonable efforts to furnish, or
                  procure that there is furnished, from time to time any such
                  documents, instruments, information and undertakings as may be
                  reasonably necessary in order to maintain the current ratings
                  of the Current Issuer Notes by the Rating Agencies);

         (cc)     CALCULATIONS: procure that there are done on its behalf, all
                  calculations required pursuant to the Current Issuer
                  Conditions;

         (dd)     DTC, EUROCLEAR AND CLEARSTREAM, LUXEMBOURG: use its reasonable
                  endeavours to procure that DTC, Euroclear and/or Clearstream,
                  Luxembourg (as the case may be) issue(s) any certificate or
                  other document requested by the Note Trustee acting reasonably
                  pursuant to these presents as soon as practicable after such
                  request;

         (ee)     INFORMATION REGARDING NOTEHOLDERS: pursuant to Section 312(a)
                  of the Trust Indenture Act, furnish or cause to be furnished
                  to the Note Trustee on 31st March and 30th September of each
                  year, commencing 30th September 2003, and at such other times
                  as the Note Trustee may request in writing, all information in
                  the possession or control of the Current Issuer or of any of
                  its Paying Agents as to the names and addresses of the
                  Noteholders, and requiring the Note Trustee to preserve, in as
                  current a form as is reasonably practicable, all such
                  information so furnished to it;

                                       14
<PAGE>

         (ff)     OFFICERS' CERTIFICATES AND OPINIONS OF COUNSEL; STATEMENTS TO
                  BE CONTAINED THEREIN: upon any application, demand or request
                  by the Current Issuer to the Note Trustee to take any action
                  under any of the provisions of these presents (other than the
                  issuance of Current Issuer Notes) and upon request of the Note
                  Trustee, furnish to the Note Trustee an officers' certificate
                  and opinion of counsel complying with the provisions of
                  Section 314 of the Trust Indenture Act (an "OFFICERS'
                  CERTIFICATE" and "OPINION OF COUNSEL", respectively);

         (gg)     PROTECTION OF SECURITY: promptly after the execution and
                  delivery of these presents and each supplement hereto,
                  pursuant to Section 314(b) of the Trust Indenture Act furnish
                  to the Note Trustee an Opinion of Counsel stating that in the
                  opinion of such counsel, appropriate steps have been taken to
                  protect the security interests of the Note Trustee in the
                  Current Issuer Charged Property under the Current Issuer Deed
                  of Charge and reciting the details of such action, or stating
                  that in the opinion of such counsel no such action is
                  necessary; and the Current Issuer shall furnish annually to
                  the Note Trustee, not more than three (3) months after the
                  anniversary of the signing of this Deed, commencing with
                  calendar year 2003, an Opinion of Counsel stating either that,
                  in the opinion of such counsel, (i) such action has been taken
                  as is necessary for the proper protection of the security
                  interests of the Note Trustee in the Current Issuer Charged
                  Property under the Current Issuer Deed of Charge and reciting
                  the details of such action or (ii) no such action is necessary
                  for any of such purposes;

         (hh)     AUTHORISED SIGNATORIES: upon the execution of this Deed and
                  thereafter forthwith upon any change of the same, deliver to
                  the Note Trustee (with a copy to the Principal Paying Agent
                  and the Registrar) a list of the Authorised Signatories of the
                  Current Issuer, together with certified specimen signatures of
                  the same; and

         (ii)     CURRENT ISSUER NOTES: in order to enable the Note Trustee to
                  ascertain the number and amount of Current Issuer Notes for
                  the time being outstanding for any of the purposes referred to
                  in the proviso to the definition of "OUTSTANDING" contained in
                  Clause 1.6, deliver to the Note Trustee forthwith upon being
                  so requested in writing by the Note Trustee a certificate in
                  writing signed by two Authorised Signatories of the Current
                  Issuer setting out the total number and the principal amount
                  of the Current Issuer Notes, if any, which:

                  (a)      up to and including the date of such certificate have
                           been purchased by the Current Issuer and cancelled;
                           and

                  (b)      are at the date of such certificate beneficially held
                           by or for the account of the Current Issuer, any of
                           its subsidiaries or holding companies or other
                           subsidiaries of such holding companies.

6.       ENFORCEMENT

6.1      PROCEEDINGS: At any time after the occurrence of a Note Event of
         Default, the Note Trustee may, at its discretion and without notice
         (and in compliance with Section 317(a) of the Trust Indenture Act),
         recover judgment in its own name and as trustee of an express trust
         against the Current Issuer for the whole amount of principal and

                                       15
<PAGE>

         interest remaining unpaid; institute such proceedings and/or take other
         action against or in relation to the Current Issuer or any other person
         as it may think fit to enforce the obligations of the Current Issuer
         under these presents, the Current Issuer Notes and/or any of the other
         Current Issuer Transaction Documents but it shall not be bound to take
         such action save as provided in Clause 7 (Proceedings, Actions and
         Indemnification).

6.2      EXERCISE OF POWERS: The Note Trustee shall be entitled to enforce the
         obligations of the Current Issuer under the Current Issuer Notes
         (including the Current Issuer Conditions) and to exercise any other
         rights, powers, authorities and discretions conferred upon the Note
         Trustee in the Current Issuer Conditions as scheduled to this Trust
         Deed, which shall be read and construed as one document with the
         Current Issuer Notes.

6.3      EVIDENCE OF DEFAULT: Unless the contrary be proved, proof that as
         regards any specified Current Issuer Note the Current Issuer has made
         default in paying any amount due in respect of such Current Issuer Note
         shall be sufficient evidence that the Current Issuer has made the like
         default as regards all other Current Issuer Notes in respect of which
         the corresponding amount is then due and payable in accordance with the
         Current Issuer Conditions and for the purposes of this Clause 6.3
         (Evidence of Default) an amount shall be a corresponding amount
         notwithstanding that it is due in respect of a Current Issuer Note of a
         different denomination from that in respect of the above specified
         Current Issuer Note. The Note Trustee may file such proofs of claim and
         other papers or documents as may be necessary or advisable in order to
         have the claims of the Note Trustee and the Noteholders allowed in any
         judicial proceedings relative to the Current Issuer, its creditors or
         its property.

7.       PROCEEDINGS, ACTIONS AND INDEMNIFICATION

7.1      The Note Trustee shall not be bound to take any proceedings mentioned
         in Clause 6.1 (Proceedings) or any other action in relation to these
         presents, the Current Issuer Notes or any documents executed pursuant
         thereto or any of the other Current Issuer Transaction Documents to
         which the Note Trustee is a party unless:

         (a)      it shall have been so directed by an Extraordinary Resolution
                  of the Senior Noteholders or the Mezzanine Noteholders or the
                  Junior Noteholders as appropriate; or

         (b)      it shall have been so requested in writing by the holders of
                  at least one quarter of the aggregate Principal Amount
                  Outstanding of the Senior Notes or by the holders of at least
                  one quarter of the aggregate Principal Amount Outstanding of
                  the Mezzanine Notes or by the holders of at least one quarter
                  of the aggregate Principal Amount Outstanding of the Junior
                  Notes; and

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

         provided that:

                                       16
<PAGE>

                  (i)      the Note Trustee shall not be held liable for the
                           consequence of taking any such action and may take
                           such action without having regard to the effect of
                           such action on individual Noteholders or any other
                           Current Issuer Secured Creditor; and

                  (ii)     save to the extent provided otherwise under the
                           Current Issuer Conditions, the Note Trustee shall not
                           and shall not be obliged to act at the direction or
                           request of the Mezzanine Noteholders as aforesaid
                           unless at such time no Senior Notes are then
                           outstanding; and

                  (iii)    save to the extent provided otherwise under the
                           Current Issuer Conditions, the Note Trustee shall not
                           and shall not be obliged to act at the direction or
                           request of the Junior Noteholders as aforesaid unless
                           at such time there are no Senior Notes and no
                           Mezzanine Notes then outstanding.

7.2      ONLY NOTE TRUSTEE TO ENFORCE: Only the Note Trustee may enforce the
         provisions of these presents, the Current Issuer Conditions or the
         Current Issuer Notes. No Noteholder or other Current Issuer Secured
         Creditor shall be entitled to proceed directly against the Current
         Issuer or any other party to any of the Transaction Documents unless
         the Note Trustee having become bound as aforesaid to institute
         proceedings has failed to do so within 30 days of becoming so bound and
         such failure is continuing; provided that save to the extent provided
         in the Current Issuer Conditions, no Junior Noteholder and no Mezzanine
         Noteholder shall be entitled to take proceedings for the winding up or
         administration of the Current Issuer unless there are no outstanding
         Current Issuer Notes of a class with higher priority, or if Current
         Issuer Notes of a class with higher priority are outstanding, there is
         consent of Noteholders of not less than 25 per cent. of the aggregate
         principal amount of the Current Issuer Notes outstanding of the class
         or classes of Current Issuer Notes with higher priority.
         Notwithstanding the foregoing and notwithstanding any other provision
         of these presents, consistent with Section 316 of the Trust Indenture
         Act, the right of each Noteholder to receive principal and/or interest
         on its Current Issuer Notes on or after the due date for payment of
         such principal or interest in accordance with the Current Issuer
         Conditions or to institute suit for the enforcement of the payment of
         that principal and/or interest may not be impaired or affected without
         the consent of the such Noteholder. Notwithstanding anything herein to
         the contrary any action to be taken under Section 316(a) of the Trust
         Indenture Act shall comply with Section 316(c) of the Trust Indenture
         Act and the record date for the purpose of Section 316(c) shall be such
         date as the Current Issuer shall notify to the relevant Noteholders in
         accordance with the Current Issuer Conditions.

8.       APPLICATION OF MONEYS ETC.

8.1      APPLICATION OF MONEYS: All moneys received by the Note Trustee in
         respect of the Current Issuer Notes or amounts payable under these
         presents will (including any moneys which represent principal or
         interest in respect of Current Issuer Notes which have become void
         under the Current Issuer Conditions) be held by the Note Trustee on
         trust to apply them (subject to Clause 8.3 (Authorised Investments)) in
         accordance with the Current Issuer Priority of Payments.

8.2      INVESTMENT OF MONEYS: If the amount of the moneys at any time available
         for

                                       17
<PAGE>

         payment of principal and interest in respect of the Current Issuer
         Notes under Clause 8.1 (Application of Moneys) shall be less than a sum
         sufficient to pay at least one-tenth of the principal amount of the
         Current Issuer Notes then outstanding, the Note Trustee may, at its
         discretion, invest such moneys upon some or one of the investments
         hereinafter authorised with power from time to time, with like
         discretion, to vary such investments; and such investment with the
         resulting income thereof may be accumulated until the accumulations
         together with any other funds for the time being under the control of
         the Note Trustee and available for the purpose shall amount to a sum
         sufficient to pay at least one-tenth of the principal amount of the
         Current Issuer Notes then outstanding and such accumulation and funds
         (after deduction of any taxes and any other deductibles applicable
         thereto) shall then be applied in the manner aforesaid.

8.3      AUTHORISED INVESTMENTS: Any moneys which under the trusts herein
         contained may be invested by the Note Trustee may be invested in the
         name or under the control of the Note Trustee in any Authorised
         Investments and the Note Trustee may at any time vary or transfer any
         of such Authorised Investments for or into other such Authorised
         Investments as the Note Trustee in its absolute discretion may
         determine, and shall not be responsible (save where any loss results
         from the Note Trustee's fraud, wilful default or negligence or that of
         its officers or employees) for any loss occasioned by reason of any
         such investments whether by depreciation in value or otherwise,
         provided that such Authorised Investments were made in accordance with
         the foregoing provisions.

8.4      PAYMENT TO NOTEHOLDERS: Any payment to be made in respect of the
         Current Issuer Notes by the Current Issuer or the Note Trustee may be
         made in the manner provided in the Current Issuer Conditions and any
         payment so made shall be a good discharge, to the extent of such
         payment, to the Current Issuer or the Note Trustee, as the case may be.

8.5      PRODUCTION OF NOTE CERTIFICATES: Upon any payment under Clause 8.4
         (Payment to Noteholders) of principal or interest, the Note Certificate
         representing the relevant Current Issuer Note in respect of which such
         payment is made shall, if the Note Trustee so requires, be produced to
         the Note Trustee or the Paying Agent by or through whom such payment is
         made and the Note Trustee shall, in the case of part payment, require
         the Registrar to make a notation in the Register of the amount and date
         of payment thereon or, in the case of payment in full, shall cause such
         Note Certificate to be surrendered or shall cancel or procure the same
         to be cancelled and shall certify or procure the certification of such
         cancellation, in each case subject to and in accordance with the
         Current Issuer Paying Agent and Agent Bank Agreement.

9.       REMUNERATION AND INDEMNIFICATION OF NOTE TRUSTEE

9.1      NORMAL REMUNERATION: The Current Issuer shall (subject as hereinafter
         provided) pay to the Note Trustee remuneration of such amount as shall
         from time to time be agreed by the Current Issuer and the Note Trustee.
         The rate of remuneration in force from time to time may upon the final
         redemption of the whole of the Current Issuer Notes of any Series be
         reduced by such amount as shall be agreed between the Current Issuer
         and the Note Trustee, such reduced remuneration to be calculated from
         such date as shall be agreed as aforesaid. Such remuneration shall be
         payable in priority to payments to Noteholders and other Current Issuer
         Secured Creditors on each Payment

                                       18
<PAGE>

         Date subject to and in accordance with the relevant Current Issuer
         Priority of Payments. Such remuneration shall accrue from day to day
         and be payable up to and including the date when, all the Current
         Issuer Notes having become due for redemption, the redemption monies
         and interest thereon to the date of redemption have been paid to the
         Principal Paying Agent or, as the case may be, the Note Trustee
         PROVIDED THAT if upon due presentation of any Note Certificate or any
         cheque payment of the monies due in respect thereof is improperly
         withheld or refused, remuneration will commence again to accrue until
         payment to Noteholders is made.

9.2      EXTRA REMUNERATION: In the event of the occurrence of a Note Event of
         Default or the Note Trustee considering it expedient or necessary or
         being requested by the Current Issuer to undertake duties which the
         Note Trustee and the Current Issuer agree to be of an exceptional
         nature or otherwise outside the scope of the normal duties of the Note
         Trustee under these presents, the Current Issuer shall pay to the Note
         Trustee such additional remuneration as shall be agreed between them;

9.3      FAILURE TO AGREE: In the event of the Note Trustee and the Current
         Issuer failing to agree:

         (a)      (in a case to which Clause 9.1 (Normal Remuneration) applies)
                  upon normal remuneration; or

         (b)      (in a case to which Clause 9.2 (Extra Remuneration) applies)
                  upon whether such duties shall be of an exceptional nature or
                  otherwise outside the scope of the normal duties of the Note
                  Trustee under these presents, or upon such additional
                  remuneration;

         such matters shall be determined by an investment bank (acting as an
         expert and not as an arbitrator) selected by the Note Trustee and
         approved by the Current Issuer or, failing such approval, nominated (on
         the application of the Note Trustee) by the President for the time
         being of The Law Society of England and Wales (the expenses involved in
         such nomination and the fees of such investment bank being payable by
         the Current Issuer) and the determination of any such investment bank
         shall be final and binding upon the Note Trustee and the Current
         Issuer.

9.4      EXPENSES: In addition to the remuneration hereunder, the Current Issuer
         shall on written request, pay all other costs, charges and expenses
         (against production of invoices) which the Note Trustee may properly
         incur in relation to:

         (a)      the negotiation, preparation and execution of, the exercise of
                  its powers and discretions and the performance of its duties
                  under these presents and any other Current Issuer Transaction
                  Documents including, but not limited to legal and travelling
                  expenses; and

         (b)      any other action taken by or on behalf of the Note Trustee to
                  enforce the obligations of the Current Issuer under or
                  resolving any doubt in respect of these presents and/or any of
                  the other Current Issuer Transaction Documents.

9.5      INDEMNITY: The Current Issuer shall indemnify the Note Trustee in
         respect of all proceedings, claims, demands, losses, costs, charges,
         expenses and liabilities to which it (or any person appointed by it to
         whom any trust, power, authority or discretion

                                       19
<PAGE>

         may be delegated by it in the execution or purported execution of the
         trusts, powers, authorities or discretions vested in it by or pursuant
         to these presents and any of the other Current Issuer Transaction
         Documents) may be or become liable or which may be properly incurred by
         it (or any such person as aforesaid) in the execution or purported
         execution of any of its trusts, powers, authorities and discretions
         hereunder or its functions under any such appointment or in respect of
         any other matter or thing done or omitted in any way relating to these
         presents and any of the other Current Issuer Transaction Documents
         provided that it is expressly stated that Clause 10.12 (Note Trustee
         Liable for Negligence etc.) shall apply in relation to these
         provisions.

9.6      STAMP DUTIES: The Current Issuer shall, pay all stamp duties and other
         duties or taxes of a similar nature, including for the avoidance of
         doubt any duty levied under the Stamp Act 1891 as amended and
         supplemented, (if any) payable in the United Kingdom and/or Jersey on
         or arising out of or in consequence of:

         (a)      the execution and delivery of these presents and any other
                  Current Issuer Transaction Document to which the Note Trustee
                  is a party;

         (b)      the constitution and issue of the Current Issuer Notes;

         (c)      the initial delivery of the Note Certificates representing the
                  Current Issuer Notes; and

         (d)      any action in any jurisdiction taken by or on behalf of the
                  Note Trustee. If the Note Trustee (or any Noteholder or
                  Current Issuer Secured Creditor) where permitted under these
                  presents so to do) shall take any proceedings against the
                  Current Issuer in any other jurisdiction and if for the
                  purpose of any such proceedings these presents or any Note
                  Certificates are taken into any such jurisdiction and any
                  stamp duties or other duties or taxes become payable thereon
                  in any such jurisdiction, the Current Issuer will pay (or
                  reimburse the person making payment of) such stamp duties or
                  other duties or taxes (including penalties).

9.7      VAT: The Current Issuer shall in addition pay to the Note Trustee an
         amount equal to any value added tax or similar tax chargeable in
         respect of its remuneration under these presents.

9.8      INTEREST: Subject as provided in Clause 9.9 (Payment), all sums payable
         by the Current Issuer under this Clause 9 (Remuneration and
         Indemnification of Note Trustee) shall be payable on demand or, in the
         case of any remuneration payable under Clause 9.1 (Normal Remuneration)
         on the due date specified therein and shall carry interest at the rate
         per annum, which is one per cent. per annum above the base rate from
         time to time of the National Westminster Bank Plc from the date on
         which they were paid, charged or incurred by the Note Trustee or, in
         the case of remuneration, the due date for payment thereof, to the date
         of actual payment, and in all other cases shall (if not paid on the
         date specified in such demand or, if later, within three days after
         such demand and, in either case, the Note Trustee so requires) carry
         interest at such rate from the date specified in such demand.

9.9      PAYMENT: Notwithstanding the other provisions of this Deed, any amount
         owing by the Current Issuer pursuant to this Clause 9 (Remuneration and
         Indemnification of

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<PAGE>

         Note Trustee) shall only be payable by the Current Issuer subject to
         and in accordance with the applicable Current Issuer Priority of
         Payments which applies at such time.

9.10     APPORTIONMENT: The Note Trustee shall be entitled in its absolute
         discretion to determine in respect of which Series of Current Issuer
         Notes any costs, charges, expenses or liabilities incurred under these
         presents have been incurred or to allocate such costs, charges,
         expenses or liabilities between two or more Series of Current Issuer
         Notes.

9.11     SURVIVAL: Unless otherwise specifically stated in any discharge of this
         Deed, the provisions of this Clause 9 (Remuneration and Indemnification
         of Note Trustee) shall continue in full force and effect
         notwithstanding such discharge.

10.      SUPPLEMENT TO THE TRUSTEE ACTS

10.1     TRUSTEE ACT 1925 AND TRUSTEE ACT 2000: The Note Trustee shall have all
         the powers conferred upon trustees by the Trustee Act 1925 and the
         Trustee Act 2000 of England and Wales and by way of supplement thereto
         it is expressly declared as set out in the remaining provisions of this
         Clause 10 (Supplement to Trustee Acts) (which provisions, except as
         expressly provided therein, shall be in lieu of the provisions
         contained in Section 315(a) of the Trust Indenture Act).

10.2     RELIANCE ON INFORMATION:

         (a)      The Note Trustee may in relation to these presents act on the
                  opinion or advice of, or a certificate or any information
                  obtained from, any lawyer, banker, valuer, surveyor,
                  securities company, broker, auctioneer, accountant or other
                  expert in the United Kingdom or elsewhere, whether obtained by
                  the Current Issuer, the Note Trustee or otherwise, and shall
                  not be responsible for any loss occasioned by so acting. Any
                  such opinion, advice, certificate or information may be sent
                  or obtained by letter, facsimile reproduction or in any other
                  form and the Note Trustee shall not be liable for acting in
                  good faith on any opinion, advice, certificate or information
                  purporting to be so conveyed although the same shall contain
                  some error or shall not be authentic provided that such error
                  or lack of authenticity is not manifest.

         (b)      Except in the event of wilful default or manifest error, the
                  Note Trustee may call for and shall be entitled to rely upon a
                  certificate, reasonably believed by it to be genuine, of the
                  Current Issuer or any other person in respect of every matter
                  and circumstance for which a certificate is expressly provided
                  for under these presents, the Current Issuer Conditions or any
                  other Current Issuer Transaction Document and to call for and
                  rely upon a certificate of the Agent Bank, any Paying Agent,
                  Registrar, Transfer Agent, any Reference Bank or any other
                  person reasonably believed by it to be genuine as to any other
                  fact or matter prima facie within the knowledge of such Agent
                  Bank, Paying Agent, Registrar, Transfer Agent, Reference Bank
                  or such other person as sufficient evidence thereof and the
                  Note Trustee shall not be bound in any such case to call for
                  further evidence or be responsible for any loss, liability,
                  costs, damages, expenses or inconvenience that may be caused
                  by it failing to do so.

10.3     POWERS AND DUTIES:

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<PAGE>

         (a)      The Note Trustee shall not have any responsibility for or have
                  any duty to make any investigation in respect of or in any way
                  be liable whatsoever for the nature, status, creditworthiness
                  or solvency of the Current Issuer. Each Noteholder and each
                  other Current Issuer Secured Creditor shall be solely
                  responsible for making its own independent appraisal of and
                  investigation into the financial condition, creditworthiness,
                  affairs, status and nature of the Current Issuer and the Note
                  Trustee shall not at any time have any responsibility for the
                  same and each Noteholder and other Current Issuer Secured
                  Creditors shall not rely on the Note Trustee in respect
                  thereof.

         (b)      Save as required for the purposes of the Trust Indenture Act,
                  the Note Trustee shall not be responsible for the execution,
                  legality, effectiveness, adequacy, genuineness, validity or
                  enforceability or admissibility in evidence of any Current
                  Issuer Transaction Document or any other document entered into
                  in connection therewith or any security thereby constituted or
                  purported to be constituted thereby nor shall it be
                  responsible or liable to any person because of any invalidity
                  of any provision of such documents or the unenforceability
                  thereof, whether arising from statute, law or decision of any
                  court.

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

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

         (e)      The Note Trustee shall not be bound to give notice to any
                  person of the execution of these presents or of an Event of
                  Default under the Current Issuer Intercompany Loan Agreement
                  nor shall it have any duty to make any investigation in
                  respect of or in any way be liable whatsoever for the
                  registration, filing, protection or perfection of any security
                  constituted by any Current Issuer Transaction Document
                  relating to the Current Issuer Charged Property or the
                  priority of the security created thereby and shall not be
                  liable for any failure, omission or defect in perfecting,
                  protecting, procuring the registration of or further assuring
                  the security created or purported to be created thereby.

         (f)      The Note Trustee shall not have any duty to make any
                  investigation in respect of or in any way be liable whatsoever
                  for the failure to call for delivery of documents of title to
                  or require any transfers, legal mortgages, charges or other
                  further assurances in relation to any of the assets the
                  subject matter of any of these presents or any other document.

                                       22
<PAGE>

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

         (h)      The Note Trustee shall not have any responsibility for or have
                  any duty to make any investigation in respect of or in any way
                  be liable whatsoever for the existence, accuracy or
                  sufficiency of any legal or other opinions, searches, reports,
                  certificates, valuations or investigations delivered or
                  obtained or required to be delivered or obtained at any time
                  in connection with the Current Issuer Charged Property or any
                  Current Issuer Transaction Document.

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

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

         (k)      The Note Trustee shall not be responsible for, nor shall it
                  have any liability with respect to, any loss or theft of the
                  Current Issuer Charged Property.

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

         (m)      The Note Trustee shall not be responsible for the receipt or
                  application by the Current Issuer of the proceeds of the
                  Current Issuer Notes, the exchange of any Global Note
                  Certificate for another Global Note Certificate or Individual
                  Note Certificates or the exchange of any Individual Note
                  Certificate for another Individual Note Certificate or the
                  delivery of any Global Note Certificate or Individual Note
                  Certificates to the person(s) entitled to it or them.

         (n)      The Note Trustee may appoint and pay any person to act as a
                  custodian or nominee on any terms in relation to such assets
                  of the trust as the Note Trustee may determine, including for
                  the purpose of depositing with a custodian this Deed or any
                  Current Issuer Transaction Document and the Note Trustee shall
                  not be responsible for any loss, liability, expense, demand,
                  cost, claim or proceedings incurred by reason of the
                  misconduct, omission or default on the part of any person
                  appointed by it hereunder or be bound to supervise the
                  proceedings or acts of any such person.

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<PAGE>

         (o)      The Note Trustee shall (save as expressly otherwise provided
                  in these presents or in any other Current Issuer Transaction
                  Document) as regards all rights, powers, authorities and
                  discretions vested in it by these presents or any other
                  Current Issuer Transaction Document, or by operation of law,
                  have absolute and uncontrolled discretion as to the exercise
                  or non-exercise thereof and whenever the Note Trustee is bound
                  to act at the request or direction of the Noteholders or any
                  class of them, the Note Trustee shall nevertheless not be so
                  bound unless first indemnified to its satisfaction against all
                  actions, proceedings, claims and demands to which it may
                  render itself liable and all costs, expenses, damages and
                  liabilities which it may incur by so doing.

         (p)      The Note Trustee as between itself and the Noteholders or any
                  class of them shall have full power to determine all questions
                  and doubts arising in relation to any of the provisions of
                  these presents and/or any other Current Issuer Transaction
                  Document and every such determination, whether made upon a
                  question actually raised or implied in the acts or proceedings
                  of the Note Trustee, shall be conclusive and shall bind the
                  Note Trustee, the Noteholders and the other Current Issuer
                  Secured Creditors.

         (q)      In connection with the exercise by it of any of its trusts,
                  powers, authorities and discretions under these presents
                  (including without limitation any power to authorise any
                  amendment or to waive any breach or to make any determination)
                  the Note Trustee shall always have regard to all the
                  Noteholders, provided that:

                  (i)      without prejudice to the provisions of sub-paragraph
                           (ii) below where it is required to have regard to the
                           interests of the Noteholders, it shall have regard to
                           the interests of the Noteholders as a class and, in
                           particular but without prejudice to the generality of
                           the foregoing, shall not have regard to, or be in any
                           way liable for, the consequences of any exercise
                           thereof for any individual Noteholder resulting from
                           their being domiciled or resident or otherwise
                           connected with or subject to the jurisdiction of, any
                           particular territory or any political sub-division
                           thereof and the Note Trustee shall not be entitled to
                           require, nor shall any Noteholder be entitled to
                           claim, from the Current Issuer, the Note Trustee or
                           any other person any indemnification or payment in
                           respect of any tax consequence of any such exercise
                           upon individual Noteholders;

                  (ii)     except where expressly provided otherwise in these
                           presents or any other Current Issuer Transaction
                           Document, the Note Trustee shall solely have regard
                           to the interests of the Noteholders provided that (a)
                           if in the opinion of the Note Trustee there is a
                           conflict between the interests of the Senior
                           Noteholders, on the one hand and the interests of the
                           Mezzanine Noteholders and/or the Junior Noteholders
                           on the other hand, the Note Trustee shall have regard
                           only to the interests of the Senior Noteholders or
                           (b) if in the opinion of the Note Trustee there is a
                           conflict between the interests of the Mezzanine
                           Noteholders on the one hand and the interests of the
                           Junior Noteholders on the other hand, the Note
                           Trustee shall have regard only to the interests of
                           the Mezzanine Noteholders; but so that this proviso
                           shall not apply in the

                                       24
<PAGE>

                           case of powers, authorities or discretions in
                           relation to which it is expressly stated that they
                           may be exercised by the Note Trustee only if in its
                           opinion the interests of all the Noteholders would
                           not be materially prejudiced thereby; and

                  (iii)    it shall not have regard to, or be in any way liable
                           for, the consequences of any exercise thereof for any
                           other Current Issuer Secured Creditor or any other
                           person.

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

         (s)      The Note Trustee may, in the conduct of its trust business,
                  instead of acting personally, employ and pay an agent on any
                  terms, whether or not a lawyer or other professional person,
                  to transact or conduct, or concur in transacting or
                  conducting, any business and to do or concur in doing all acts
                  required to be done by the Note Trustee (including the receipt
                  and payment of monies).

         (t)      In relation to any asset held by the Note Trustee under these
                  presents, the Note Trustee may appoint any person to act as
                  its nominee on any terms.

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

         (v)      The Note Trustee may, in the execution of all or any of the
                  trusts, powers, authorities and discretions vested in it by
                  these presents or any of the other Current Issuer Transaction
                  Documents, act by responsible officers or a responsible
                  officer for the time being of the Note Trustee. The Note
                  Trustee may also, whenever it thinks expedient in the
                  interests of the Noteholders, whether by power of attorney or
                  otherwise, delegate to any person or persons all or any of the
                  trusts, rights, powers, duties, authorities and discretions
                  vested in it by these presents or any of the other Current
                  Issuer Transaction Documents. Any such delegation may be made
                  upon such terms and subject to such Current Issuer Conditions
                  and subject to such regulations (including

                                       25
<PAGE>

                  power to sub-delegate) as the Note Trustee may think fit in
                  the interests of the Noteholders. The Note Trustee shall give
                  prompt notice to the Current Issuer of the appointment of any
                  delegate as aforesaid and shall procure that any delegate
                  shall also give prompt notice of the appointment of any
                  sub-delegate to the Current Issuer.

         (w)      If the Note Trustee exercises reasonable care in selecting any
                  custodian, agent, delegate, nominee or any other person
                  appointed under this Clause 10.3 (Powers and Duties) (each, an
                  "APPOINTEE") it will not have any obligation to supervise such
                  Appointee or be responsible for any loss, liability, costs,
                  claim, proceedings or expenses incurred by reason of such
                  Appointee's misconduct, omission or default or the misconduct,
                  omission or default of any substitute lawfully appointed by
                  such Appointee.

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

         (y)      Any consent given by the Note Trustee for the purposes of
                  these presents or any of the other Current Issuer Transaction
                  Documents may be given on such terms and subject to such
                  conditions (if any) as the Note Trustee thinks fit and may be
                  given retrospectively.

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

         (aa)     The Note Trustee shall not (unless required by law or ordered
                  to do so by a court of competent jurisdiction) be required to
                  disclose to any Noteholder or any other person any information
                  made available to the Note Trustee by the Current Issuer or
                  any other person in connection with the trusts of these
                  presents or any other Current Issuer Transaction Documents and
                  no Noteholder or any other person shall be entitled to take
                  any action to obtain from the Note Trustee any such
                  information. The Note Trustee shall not be responsible for
                  exercising the rights of any of the parties under the Current
                  Issuer Transaction Documents or considering the basis upon
                  which the approvals or consents are granted by any of the
                  parties under the Current Issuer Transaction Documents.

         (bb)     Notwithstanding anything else in these presents, the Current
                  Issuer Notes or any other Current Issuer Transaction Document,
                  the Note Trustee may refrain from doing anything which would
                  or might in its opinion be contrary to any law of any
                  jurisdiction or any directive or regulation of any
                  governmental

                                       26
<PAGE>

                  agency or which would or might otherwise render it liable to
                  any person and may do anything which is, in its opinion,
                  necessary to comply with any such law, directive or
                  regulation.

         (cc)     The Note Trustee shall not be liable to any person by reason
                  of having acted upon an Extraordinary Resolution in writing or
                  any Extraordinary Resolution or other resolution whether in
                  writing or purporting to have been passed at any Meeting of
                  all or any class or classes in respect whereof minutes have
                  been made and signed even though subsequent to its acting it
                  may be found that there was some defect in the constitution of
                  the Meeting or the passing of the resolution or (in the case
                  of an Extraordinary Resolution or other resolution in writing)
                  that not all Noteholders had signed the Extraordinary
                  Resolution or other resolution or that for any reason the
                  resolution was not valid or binding upon such Noteholders.

         (dd)     Without prejudice to the right of the Note Trustee to require
                  and/or accept any other evidence, the Note Trustee may accept
                  as conclusive evidence of any fact or matter in relation to
                  the Current Issuer or required to be certified by the Current
                  Issuer under the Current Issuer Conditions, a certificate
                  signed by two directors of the Current Issuer and the Note
                  Trustee shall not be bound in any such case to call for
                  further evidence or be responsible for any liability that may
                  be occasioned by it or any other person acting on such
                  certificate.

         (ee)     The Note Trustee shall not be liable to any person by reason
                  of having accepted as valid or not having rejected any Note
                  Certificate purporting to be such and subsequently found to be
                  forged or not authentic.

         (ff)     The Note Trustee shall not be liable to the Current Issuer or
                  any Noteholder by reason of having accepted as valid or not
                  having rejected any entry on the Register later found to be
                  forged or not authentic and can assume for all purposes in
                  relation hereto that any entry on the Register is correct.

         (gg)     The Note Trustee shall be entitled to assume, for the purposes
                  of exercising any power, right, trust, authority, duty or
                  discretion under or in relation to these presents or any of
                  the other Current Issuer Transaction Documents, that such
                  exercise will not be materially prejudicial to the interests
                  of any class of Senior Noteholders if each of the Rating
                  Agencies has confirmed that the then current rating by it of
                  the Senior Notes would not be adversely affected by such
                  exercise, that such exercise will not be materially
                  prejudicial to the interests of any class of Mezzanine
                  Noteholders if each of the Rating Agencies has confirmed that
                  the then current rating by it of the Mezzanine Notes would not
                  be adversely affected by such exercise and that such exercise
                  will not be materially prejudicial to the interests of any
                  class of Junior Noteholders if each of the Rating Agencies has
                  confirmed that the then current rating by it of the Junior
                  Notes will not be adversely affected by such exercise.

         (hh)     The Note Trustee may call for any certificate or other
                  document to be issued by DTC, Euroclear or Clearstream,
                  Luxembourg as to the Principal Amount Outstanding of the
                  Current Issuer Notes standing to the account of any person.
                  Any such certificate or other document shall be conclusive and
                  binding for all purposes. The Note Trustee shall not be liable
                  to any person by reason of

                                       27
<PAGE>

                  having accepted as valid or not having rejected any
                  certificate or other document to such effect purporting to be
                  issued by DTC, Euroclear or Clearstream, Luxembourg and
                  subsequently found to be forged or not authentic.

         (ii)     The Note Trustee shall have no responsibility for the
                  maintenance of any rating of any of the Current Issuer Notes
                  by the Rating Agencies or any other person.

         (jj)     If required by Section 313(a) of the Trust Indenture Act,
                  within 60 days after 31st December of any year and commencing
                  31st December 2002, the Note Trustee shall deliver to each
                  Noteholder a brief report dated as of such 31st December that
                  complies with Section 313(a) of the Trust Indenture Act. The
                  Note Trustee also shall comply with Sections 313(b), 313(c)
                  and 313(d) of the Trust Indenture Act. Reports delivered
                  pursuant to this paragraph (jj) shall be sent as provided in
                  Clause 19 (Notices).

         (kk)     The Note Trustee shall comply with Trust Indenture Act Section
                  311(a), excluding any creditor relationship listed in Trust
                  Indenture Act Section 311(b). A Note Trustee who has resigned
                  or been removed shall be subject to Trust Indenture Act
                  Section 311(a) to the extent indicated therein. The provisions
                  of Trust Indenture Act Section 311 shall apply to the Current
                  Issuer as the obligor of the Current Issuer Notes.

         (ll)     If a Note Event of Default occurs and is continuing and if it
                  is known to an Authorised Officer of the Note Trustee, the
                  Note Trustee shall mail to each Noteholder notice of such Note
                  Event of Default within 90 days after it occurs.

         (mm)     The Note Trustee has no responsibility to verify or monitor
                  the contents of, or (if applicable) to check any calculations
                  contained in, any reports, information, documents, Officers'
                  Certificates and Opinions of Counsel delivered to the Note
                  Trustee in accordance with paragraphs (u) (United States
                  Reporting Requirements), (ee) (Information Regarding
                  Noteholders) or (ff) (Officers' Certificates and Opinions of
                  Counsel; Statements to be Contained Therein) of Clause 5
                  (Covenants by Current Issuer) or Clause 16 (Certificates and
                  Opinions), and is under no obligation to inform Noteholders of
                  the contents of any such reports, information, documents,
                  Officers' Certificates and Opinions of Counsel, other than
                  allowing Noteholders upon reasonable notice, to inspect such
                  reports, information, documents, Officers' Certificates and
                  Opinions of Counsel.

         (nn)     The powers conferred by these presents upon the Note Trustee
                  or any Receiver shall be in addition to and not in
                  substitution for any powers which may from time to time be
                  conferred on the Note Trustee or any such Receiver by statute
                  or under common law.

         (oo)     The Note Trustee has no duties or responsibilities except
                  those expressly set out in this Deed or in the other Current
                  Issuer Transaction Documents.

         (pp)     In the absence of knowledge or express notice to the contrary,
                  the Note Trustee may assume without enquiry (other than
                  requesting a certificate of the

                                       28
<PAGE>

                  Current Issuer) that no Current Issuer Notes are for the time
                  being held by or for the benefit of the Current Issuer.

         (qq)     The Note Trustee may, without the consent of the Current
                  Issuer or the Noteholders prescribe such regulations regarding
                  the giving of directions by the Noteholders as provided in the
                  Current Issuer Conditions, as the Note Trustee may in its sole
                  discretion determine.

         (rr)     Without prejudice to the provisions of any Current Issuer
                  Transaction Documents relating to insurance, the Note Trustee
                  shall not be under any obligation to insure any of the Current
                  Issuer Charged Property or the Funding Charged Property or any
                  deeds or documents of title or other evidence in respect of
                  the Current Issuer Charged Property or the Funding Charged
                  Property or to require any other person to maintain any such
                  insurance or monitor the adequacy of any such insurance and
                  shall not be responsible for any liability which may be
                  suffered by any person as a result of the lack of or
                  inadequacy of any such insurance.

         (ss)     The Note Trustee shall have no liability whatsoever for any
                  loss, cost, damages or expenses directly or indirectly
                  suffered or incurred by a person as a result of the delivery
                  by the Note Trustee to the Current Issuer or to any other
                  party to the Current Issuer Transaction Documents of a
                  certificate as to material prejudice pursuant to the Current
                  Issuer Conditions or any Current Issuer Transaction Documents
                  on the basis of an opinion formed by it in good faith.

         (tt)     For the purpose of either Condition 5(D) (Optional Redemption
                  in Full) or Condition 5(E) (Optional Redemption for Tax and
                  other Reasons), the Note Trustee shall not be satisfied that
                  the Current Issuer will be in a position to fulfil its
                  obligations referred to therein unless, inter alia, either (i)
                  the Current Issuer has available to it sufficient cash in the
                  Current Issuer Transaction Account and/or in Authorised
                  Investments which will mature on or before the relevant
                  Payment Date or (ii) the Current Issuer has entered into a
                  legally binding contract with an entity (a) the long term
                  unsecured debt of which is rated at least as high as the then
                  current rating of the Current Issuer Notes by the Rating
                  Agencies or (b) any of whose short term unsecured debt is
                  rated A-1 by S&P and P-1 by Moody's to provide sufficient cash
                  on or before the relevant Payment Date, in each case to enable
                  the Current Issuer to fulfil its obligations as aforesaid.

10.4     NO FINANCIAL LIABILITY: Notwithstanding any other provision of these
         presents or of any other Current Issuer Transaction Document, nothing
         shall require the Note Trustee to risk its own funds or otherwise incur
         any financial liability in the performance of any of its duties or in
         the exercise of any of its rights or powers or otherwise in connection
         with these presents or any other Current Issuer Transaction Document
         (including, without limitation, forming any opinion or employing any
         legal, financial or other adviser), if it shall believe that repayment
         of such funds or adequate indemnity against such risk or liability is
         not assured to it. The Note Trustee shall not be responsible for
         exercising the rights of any of the parties under the Current Issuer
         Transaction Documents or considering the basis upon which the approvals
         or consents are granted by any of the parties under the Current Issuer

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         Transaction Documents.

10.5     ASCERTAINING DEFAULT: The Note Trustee shall not be responsible or
         liable for:

                  (i)      exercising any rights or powers which are assigned to
                           it by any party to the Current Issuer Transaction
                           Documents, including, without limitation, any
                           servicing, administration and management functions in
                           relation to the Mortgage Loans and shall not be
                           liable to any person for the exercise or non-exercise
                           of any such rights and powers;

                  (ii)     ascertaining whether a default has occurred under the
                           terms of any of the Current Issuer Transaction
                           Documents and nor is the Note Trustee responsible for
                           taking any action in connection with any such default
                           or alleged default;

10.6     RATING OF CURRENT ISSUER NOTES: The Note Trustee shall have no
         responsibility for the maintenance of any rating of the Current Issuer
         Notes by the Rating Agencies or any other credit-rating agency or any
         other person.

10.7     DELIVERY OF CERTIFICATES: The Note Trustee shall have no liability
         whatsoever for any loss, cost damages or expenses directly or
         indirectly suffered or incurred by the Current Issuer, any Noteholder
         or any other person as a result of the delivery by the Note Trustee of
         a certificate, or the omission by it to deliver a certificate, to the
         Current Issuer as to material prejudice, on the basis of an opinion
         formed by it in good faith.

10.8     ASSUMPTION OF NO DEFAULT: Except to the extent required pursuant to
         Section 315(b) of the Trust Indenture Act, the Note Trustee shall not
         be bound to ascertain whether any Current Issuer Note Event of Default
         or Potential Current Issuer Event of Default has happened and, until it
         shall have actual knowledge or express notice to the contrary, the Note
         Trustee shall be entitled to assume that no such Current Issuer Note
         Event of Default or Potential Current Issuer Event of Default has
         happened and that the Current Issuer is observing and performing all
         the obligations on its part under the Current Issuer Notes and these
         presents and no event has happened as a consequence of which any
         Current Issuer Notes may become repayable.

10.9     ASSUMPTION OF NO INTERCOMPANY LOAN DEFAULT: The Note Trustee shall not
         be bound to ascertain whether any Intercompany Loan Event of Default or
         Potential Intercompany Loan Event of Default has happened and, until it
         shall have actual knowledge or express notice to the contrary, the Note
         Trustee shall be entitled to assume that no such Intercompany Loan
         Event of Default or Potential Intercompany Loan Event of Default has
         happened and that Funding is observing and performing all the
         obligations on its part;

10.10    COMMERCIAL TRANSACTIONS: The Note Trustee shall not, and no director,
         officer or employee of any corporation being a Note Trustee hereof
         shall by reason of the fiduciary position of the Note Trustee be in any
         way precluded from making any commercial contracts or entering into any
         commercial transactions with any party to the Current Issuer
         Transaction Documents, whether directly or through any subsidiary or
         associated company, or from accepting the trusteeship of any other
         debenture stock, debentures or securities of any party to the Current
         Issuer Transaction

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<PAGE>

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

10.11    DISAPPLICATION: Section 1 of the Trustee Act 2000 shall not apply to
         the duties of the Note Trustee in relation to the trusts constituted by
         this Deed. Where there are any inconsistencies between the Trustee Acts
         and the provisions of this Deed, the provisions of this Deed shall, to
         the extent allowed by law, prevail and, in the case of any such
         inconsistency with the Trustee Act 2000, the provisions of this Deed
         shall constitute a restriction or exclusion for the purposes of that
         Act.

10.12    NOTE TRUSTEE LIABLE FOR NEGLIGENCE ETC.: Notwithstanding any other
         provision of these presents, in compliance with Section 315(d) of the
         Trust Indenture Act, none of the provisions of these presents shall, in
         any case in which the Note Trustee has failed to show the degree of
         care and diligence required of it as trustee under these presents
         (including any requirement under the Trust Indenture Act), having
         regard to the provisions of these presents conferring on the Note
         Trustee any powers, authorities or discretions, relieve the Note
         Trustee from or indemnify the Note Trustee against any liabilities
         which by virtue of any rule of law (including any provision of the
         Trust Indenture Act) would otherwise attach to it in respect of any
         negligence, default, breach of duty or breach of trust of which it may
         be guilty in relation to its duties under these presents.

11.      MODIFICATION AND WAIVER

11.1     MODIFICATION: The Note Trustee may without the consent or sanction of
         relevant class or classes of the Noteholders at any time and from time
         to time concur with the Current Issuer in making any modification
         (except a Basic Terms Modification (as defined in Schedule 4
         (Provisions for Meetings of Noteholders) hereto)) (i) to these
         presents, the Current Issuer Notes or any of the other Current Issuer
         Transaction Documents, provided that the Note Trustee is of the opinion
         that such modification will not be materially prejudicial to the
         interests of the relevant class or classes of Noteholders; or (ii) to
         these presents, the Current Issuer Notes or any of the other Current
         Issuer Transaction Documents, if in the opinion of the Note Trustee
         such modification is of a formal, minor or technical nature or to
         correct a manifest error; or (iii) to any of the Current Issuer
         Transaction Documents which it may be necessary to make or which are
         required by the Rating Agencies in respect of any New Issuer or any
         other person who has executed an Accession Undertaking pursuant to
         Clause 3.11 (New Intercompany Loans) of the Funding Deed of Charge or
         Clause 2.2 (New Intercompany Loan Agreement) of the Intercompany Loan
         Terms and Conditions. Any such modification may be made on such terms
         and subject to such conditions (if any) as the Note Trustee may
         determine, shall be binding upon the Noteholders and,

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<PAGE>

         unless the Note Trustee agrees otherwise, shall be notified by the
         Current Issuer to the Noteholders and the Rating Agencies in accordance
         with the Current Issuer Conditions as soon as practicable thereafter.
         So long as any of the Current Issuer Notes are rated by the Rating
         Agencies, the Current Issuer shall notify the Rating Agencies in
         writing as soon as reasonably practicable thereafter of any
         modification to the provisions of these presents, the Current Issuer
         Notes or any of the other Current Issuer Transaction Documents. The
         Note Trustee may also agree, without the consent of the Noteholders, to
         a change of the laws governing the Current Issuer Notes and/or the
         Current Issuer Transaction Documents provided that such change would
         not, in the opinion of the Note Trustee, be materially prejudicial to
         the interests of the Noteholders.

11.2     WAIVER: Subject as expressly provided otherwise in the Current Issuer
         Notes or in any other Current Issuer Transaction Document, the Note
         Trustee may from time to time and at any time without the consent or
         sanction of the relevant class or classes of Noteholders and without
         prejudice to its rights in respect of any subsequent breach, but only
         if and in so far as in its opinion the interests of the relevant class
         or classes of Noteholders shall not be materially prejudiced thereby,
         waive or authorise any breach or proposed breach by the Current Issuer
         or any other party thereto of any of the covenants or provisions
         contained in these presents or in any of the other Current Issuer
         Transaction Documents or determine that any Note Event of Default shall
         not be treated as such for the purposes of these presents and the
         Current Issuer Notes provided always that the Note Trustee shall not
         exercise any powers conferred on it by this Clause in contravention of
         any express direction given by an Extraordinary Resolution, or of a
         request in writing made by the holders of not less than 25 per cent. in
         aggregate principal amount of the relevant class of Current Issuer
         Notes then outstanding, in accordance with the Current Issuer
         Conditions (but so that no such direction or request shall affect any
         waiver, authorisation or determination previously given or made). Any
         such waiver, authorisation or determination may be given or made on
         such terms and subject to such conditions (if any) as the Note Trustee
         may determine, shall be binding on the Noteholders and, if, but only
         if, the Note Trustee shall so require, shall be notified by the Current
         Issuer to the Noteholders in accordance with the Current Issuer
         Conditions as soon as practicable thereafter. The provisions of this
         Clause 11.2 (Waivers) shall be in lieu of Section 316(a)(1)(B) of the
         Trust Indenture Act and Section 316(a)(1)(B) of the Trust Indenture Act
         is hereby expressly excluded from these presents and the Current Issuer
         Notes, as permitted by the Trust Indenture Act.

11.3     MATERIAL PREJUDICE: For the avoidance of doubt (in the context of
         deciding material prejudice in respect of Clauses 11.1 (Modifications)
         and 11.2 (Waiver)), if the Note Trustee considers in its sole opinion
         that the Noteholders of the same class of any or all series to which
         the modification or waiver relates are materially prejudiced by such
         waivers, the Note Trustee will not be able to sanction such
         modification or waiver itself, and will instead require an
         Extraordinary Resolution of the Noteholders of the Current Issuer Notes
         of such class outstanding to be passed by means of a Meeting. In
         accordance with the general provision contained herein, such
         Extraordinary Resolution must also be ratified by the Noteholders of
         the Current Issuer Notes of the higher class or classes in order for
         the Extraordinary Resolution which seeks approval of the modification
         or waiver to be valid and effective.

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<PAGE>

12.      ENTITLEMENT TO TREAT HOLDER AS OWNER

         The Current Issuer, the Note Trustee and any Paying Agent may (to the
         fullest extent permitted by applicable laws) deem and treat the holder
         of any Note Certificate as the absolute owner of such Note Certificate,
         for all purposes (whether or not such Current Issuer Note represented
         by such Note Certificate shall be overdue and notwithstanding any
         notation of ownership or other writing thereon or any notice of loss or
         theft of such Note Certificate), and, except as ordered by a court of
         competent jurisdiction or as required by applicable law, the Current
         Issuer, the Note Trustee and the Paying Agents shall not be affected by
         any notice to the contrary. All payments made to any such holder shall
         be valid and, to the extent of the sums so paid, effective to satisfy
         and discharge the liability for the monies payable in respect of such
         Current Issuer Note.

13.      CURRENCY INDEMNITY

13.1     CURRENCY AND INDEMNITY: The sole currency of account and payment (the
         "CONTRACTUAL CURRENCY") for all sums payable by the Current Issuer
         under or in connection with these presents, the Current Issuer Notes
         and the other Current Issuer Secured Obligations including damages is
         (a) in relation to any class of Current Issuer Notes, the currency in
         which such class of Current Issuer Notes is denominated and (b) in
         relation to Clauses 9.1 (Normal Remuneration), 9.2 (Extra
         Remuneration), 9.3 (Failure to Agree), 9.4 (Expenses), 9.5 (Indemnity),
         9.7 (VAT) and 9.8 (Interest), pounds sterling. An amount received or
         recovered in a currency other than the Contractual Currency (whether as
         a result of, or of the enforcement of, a judgment or order of a court
         of any jurisdiction, in the winding-up or dissolution of the Current
         Issuer or otherwise), by the Note Trustee or any Noteholder or other
         Current Issuer Secured Creditors in respect of any sum expressed to be
         due to it from the Current Issuer will only discharge the Current
         Issuer to the extent of the Contractual Currency amount which the
         recipient is able to purchase with the amount so received or recovered
         in that other currency on the date of that receipt or recovery (or, if
         it is not practicable to make that purchase on that date, on the first
         date on which it is practicable to do so). If the Contractual Currency
         amount is less than the Contractual Currency amount expressed to be due
         to the recipient under these presents or the Current Issuer Notes, or
         the other Current Issuer Transaction Documents the Current Issuer will
         indemnify the recipient against any loss sustained by it as a result.
         In any event, the Current Issuer will indemnify the recipient against
         the cost of making any such purchase.

13.2     INDEMNITIES SEPARATE: The indemnities in these presents constitute
         separate and independent obligations from the other obligations in
         these presents and the other Current Issuer Transaction Documents, will
         give rise to separate and independent causes of action, will apply
         irrespective of any indulgence granted by the Note Trustee and/or any
         Noteholder or other Current Issuer Secured Creditor and will continue
         in full force and effect despite any judgment, order, claim or proof
         for a liquidated amount in respect of any sum due under these presents,
         the Current Issuer Notes, any other Current Issuer Transaction
         Documents or any other judgment or order. Any such loss as referred to
         in Clause 13.1 (Currency and Indemnity) shall be deemed to constitute a
         loss suffered by the Note Trustee, the Noteholders or the relevant
         Current Issuer Secured Creditors and no proof or evidence of any actual
         loss shall be required by the Current Issuer or its liquidator or
         liquidators.

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14.      APPOINTMENT, REMOVAL AND RETIREMENT OF NOTE TRUSTEE

14.1     POWER OF CURRENT ISSUER: Subject to the provisions of this Clause 14
         (Appointment, Removal and Retirement of Note Trustee), the power of
         appointing a new Note Trustee in place of an existing Note Trustee
         shall be vested in the Current Issuer but such appointment or removal
         must be approved by (save to the extent otherwise provided in the
         Current Issuer Conditions) an Extraordinary Resolution of the Senior
         Noteholders, the Mezzanine Noteholders and the Junior Noteholders of
         the Notes then outstanding. A trust corporation may be appointed sole
         trustee hereof but subject thereto there shall be at least two trustees
         hereof, one at least of which shall be a trust corporation. Any
         appointment of a new Note Trustee and any retirement of an existing
         Note Trustee hereof shall as soon as practicable thereafter be notified
         by the Current Issuer to the Noteholders. Any new Note Trustee must
         meet the requirements set out in Clause 14.2 (Eligibility and
         Disqualification) and Clause 14.6 (Retirement or Removal Not
         Effective).

14.2     ELIGIBILITY AND DISQUALIFICATION: This Deed shall always have a Note
         Trustee which shall be eligible to act as Note Trustee under Trust
         Indenture Act Sections 310(a)(1) and 310(a)(2). The Note 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. If the
         Note Trustee has or shall acquire any "CONFLICTING INTEREST" within the
         meaning of Trust Indenture Act Section 310(b), the Note Trustee and the
         Current Issuer shall comply with the provisions of Trust Indenture Act
         Section 310(b); provided, however, that there shall be excluded from
         the operation of Trust Indenture Act Section 310(b)(1) any deed or
         deeds under which other securities or certificates of interest or
         participation in other securities of the Current Issuer are outstanding
         if the requirements for such exclusion set forth in Trust Indenture Act
         Section 310(b)(1) are met. If at any time the Note Trustee shall cease
         to be eligible in accordance with the provisions of this Clause 14.2
         (Eligibility and Disqualification), the Note Trustee shall resign
         promptly in the manner and with the effect specified in Clause 14.5
         (Retirement or Removal of Note Trustee).

14.3     POWERS OF NOTE TRUSTEE TO APPOINT: Notwithstanding the provisions of
         Clause 14.1 (Power of Current Issuer), the Note Trustee may (as
         attorney for the Current Issuer) upon giving prior notice to the
         Current Issuer but without the consent of the Current Issuer or the
         Noteholders appoint any person established or resident in any
         jurisdiction (whether a trust corporation or not) to act either as a
         separate trustee or as a co-trustee jointly with the Note Trustee:

         (a)      if the Note Trustee considers such appointment to be in the
                  interests of the Noteholders; or

         (b)      for the purposes of conforming to any legal requirements,
                  restrictions or Current Issuer Conditions in any jurisdiction
                  in which any particular act or acts is or are to be performed;
                  or

         (c)      for the purposes of obtaining a judgment in any jurisdiction
                  or the enforcement in any jurisdiction of either a judgment
                  already obtained or any of the provisions of these presents or
                  any of the other Current Issuer Transaction Documents against
                  the Current Issuer or any other party thereto.

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<PAGE>

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

14.4     MULTIPLE TRUSTEES: Whenever there shall be more than two trustees
         hereof, the majority of such trustees shall (provided such majority
         includes a trust corporation) be competent to execute and exercise all
         the trusts, powers, authorities and discretions vested by these
         presents and any of the other Current Issuer Transaction Documents in
         the Note Trustee generally.

14.5     RETIREMENT OR REMOVAL OF NOTE TRUSTEE: Subject as provided in Clause
         14.6 (Retirement or Removal not Effective), any Note Trustee for the
         time being of this Deed may retire at any time upon giving not less
         than three months' prior notice in writing to the Current Issuer
         without assigning any reason therefor and without being responsible for
         any costs resulting from such retirement. The Noteholders may by
         Extraordinary Resolution of each class of Noteholders remove any
         trustee or trustees for the time being of these presents

14.6     RETIREMENT OR REMOVAL NOT EFFECTIVE: The retirement or removal of any
         Note Trustee shall not become effective unless (i) there remains at
         least one trustee hereof being a trust corporation in office upon such
         retirement or removal and (ii) while the Bank of New York remains Note
         Trustee, the Bank of New York, in its capacity as Security Trustee
         shall also retire or be removed simultaneously. The Current Issuer
         covenants that, in the event of a trustee (being a sole trustee or the
         only trust corporation) giving notice or being removed under Clause
         14.5 (Retirement or Removal of Note Trustee) it shall use its best
         endeavours to procure a new Note Trustee of these presents (being a
         trust corporation) to be appointed as soon as reasonably practicable
         thereafter (for the avoidance of doubt, on the same terms as these
         presents). If within 30 days of having given notice of its intention to
         retire, the Current Issuer has failed to appoint a replacement Note
         Trustee, the outgoing Note Trustee will be entitled to appoint its
         successor provided that the Rating Agencies confirm that the then
         current ratings of the Current Issuer Notes shall not be either
         downgraded or reviewed as a result of such appointment.

15.      TRUST INDENTURE ACT PREVAILS

         If any provision of these presents limits, qualifies or conflicts with
         another provision which is required to be included in these presents
         by, and is not subject to a contractual waiver under, the Trust
         Indenture Act, the required provision of the Trust Indenture Act shall
         be deemed to be incorporated into these presents and shall prevail.

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16.      CERTIFICATES AND OPINIONS

16.1     EVIDENCE OF COMPLIANCE AS TO CONDITIONS PRECEDENT: Upon any request or
         application by the Current Issuer to the Note Trustee to take any
         action under this Trust Deed or these presents, the Current Issuer
         shall furnish to the Note Trustee in accordance with Section 314(c) of
         the Trust Indenture Act:

         (a)      an Officers' Certificate (which shall include the statements
                  set forth in Clause 16.2 (Statements Required in Certificates
                  and Opinions) below stating that, in the opinion of the
                  signers, all conditions precedent, if any, provided for in
                  these presents relating to the proposed action have been
                  complied with; and

         (b)      an Opinion of Counsel (which shall include the statements set
                  forth in Clause 16.2 (Statements Required in Certificates and
                  Opinions) below) stating that, in the opinion of such counsel,
                  all such conditions precedent, if any, provided for in these
                  presents relating to the proposed action have been complied
                  with.

16.2     STATEMENTS REQUIRED IN CERTIFICATES AND OPINIONS: Each certificate and
         opinion with respect to compliance with a condition or covenant
         provided for in these presents or these presents, in accordance with
         Section 314(e) of the Trust Indenture Act, shall include:

         (a)      a statement that the person making such certificate or opinion
                  has read such covenant or condition and the definitions
                  relating thereto;

         (b)      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;

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

         (d)      a statement as to whether or not, in the opinion of such
                  person, such covenant or condition has been complied with.

17.      RELEASE OF COLLATERAL

17.1     LIMITATION ON RELEASE: Except to the extent expressly provided in this
         Clause 17 (Release of Collateral), the Note Trustee shall release the
         property from the security constituted by the Current Issuer Deed of
         Charge only upon receipt of a request from the Current Issuer
         accompanied by an Officers' Certificate, an Opinion of Counsel and
         certificates of independent parties in accordance with Trust Indenture
         Act Sections 314(c) and 314(d)(1) ("INDEPENDENT CERTIFICATES") or an
         Opinion of Counsel in lieu of such Independent Certificates to the
         effect that the Trust Indenture Act does not require any such
         Independent Certificates.

17.2     FAIR VALUE: Prior to the release of any property or securities subject
         to the lien of the Current Issuer Deed of Charge, the Current Issuer
         shall, in addition to any obligation imposed in this Clause 17 (Release
         of Collateral) or elsewhere in these presents, furnish to the Note
         Trustee an Officers' Certificate certifying or stating the opinion of

                                       36
<PAGE>

         each person signing such certificate as to the fair value to the
         Current Issuer of the property or securities to be so released. The
         officers so certifying may consult with, and may conclusively rely upon
         a certificate as to the fair value of such property provided to such
         officers by an internationally recognised financial institution with
         expertise in such matters. Whenever the Current Issuer is required to
         furnish to the Note Trustee an Officers' Certificate certifying or
         stating the opinion of any signer thereof as to the matters described
         in this Clause 17.2 (Fair Value), the Current Issuer shall also deliver
         to the Note Trustee an Independent Certificate as to the same matters,
         if the fair value to the Current Issuer of the property to be so
         released and of all other such property made the basis of any such
         release since the commencement of the then current fiscal year of the
         Current Issuer, as set forth in the certificates delivered pursuant to
         this Clause 17 (Release of Collateral), is 10% or more of the Principal
         Amount Outstanding of the Current Issuer Notes, but such a certificate
         need not be furnished with respect to any property so released if the
         fair value thereof to the Current Issuer as set forth in the related
         Officers' Certificate is less than $25,000 (or its equivalent) or less
         than one per cent. of the Principal Amount Outstanding of the Current
         Issuer Notes.

17.3     NO IMPAIRMENT: Whenever any property is to be released from the
         security constituted by the Current Issuer Deed of Charge, the Current
         Issuer shall also furnish to the Note Trustee an Officer's Certificate
         certifying or stating the opinion of each person signing such
         certificate that in the opinion of such person the proposed release
         will not impair the security under the Current Issuer Deed of Charge in
         contravention of the provisions hereof.

17.4     PAYMENTS UNDER CURRENT ISSUER TRANSACTION DOCUMENTS: Notwithstanding
         anything to the contrary contained herein, the Current Issuer may (a)
         make cash payments out of the Current Issuer Bank Accounts relating to
         the Current Issuer Notes as and to the extent permitted or required by
         the Current Issuer Transaction Documents (b) act in relation to the
         Current Issuer Charged Property as permitted under the Current Issuer
         Deed of Charge and (c) take any other action not inconsistent with the
         Trust Indenture Act.

18.      RIGHTS CUMULATIVE

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

19.      NOTICES

19.1     Any notices or other communication or document to be given or delivered
         pursuant to these presents to any of the parties hereto shall be
         sufficiently served if sent by prepaid first class post, by hand or by
         facsimile transmission and shall be deemed to be given (in the case of
         facsimile transmission) when despatched or (where delivered by hand) on
         the day of delivery if delivered before 17.00 hours on a London
         Business

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<PAGE>

         Day or on the next London Business Day if delivered thereafter or (in
         the case of first class post) when it would be received in the ordinary
         course of the post and shall be sent:

         (a)      in the case of the Current Issuer, to Granite Mortgages 02-2
                  plc c/o Fifth Floor, 100 Wood Street, London EC2V 7EX
                  (facsimile number 020 7606 0643) for the attention of The
                  Company Secretary with a copy to Northern Rock plc, Northern
                  Rock House, Gosforth, Newcastle upon Tyne NE3 4PL (facsimile
                  number 0191 213 2203) for the attention of the Group
                  Secretary;

         (b)      in the case of the Note Trustee, to The Bank of New York, One
                  Canada Square, London E14 5AL (facsimile number 020 7964
                  6061/6399) for the attention of (Corporate Trust) Global
                  Structured Finance;

         or to such other address or facsimile number or for the attention of
         such other person or entity as may from time to time be notified by any
         party to the others by fifteen days prior written notice in accordance
         with the provisions of this Clause 19 (Notices).

19.2     COMMUNICATIONS BY NOTEHOLDERS WITH OTHER NOTEHOLDERS: Noteholders may
         communicate pursuant to Trust Indenture Act Section 312(b) with other
         Noteholders with respect to their rights under these presents or the
         Current Issuer Notes. The Current Issuer and the Note Trustee shall
         have the protection of Trust Indenture Act Section 312(c).

19.3     NOTICES TO NOTEHOLDERS: Any notice or communication mailed to
         Noteholders hereunder shall be transmitted by mail to (a) all
         Noteholders as the names and addresses of such Noteholders appear upon
         the Register and (b) such Noteholders to whom Trust Indenture Act
         Section 313(c) requires reports to be transmitted.

20.      THIRD PARTY RIGHTS

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

21.      EXECUTION IN COUNTERPARTS; SEVERABILITY

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

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

22.      GOVERNING LAW AND JURISDICTION; APPROPRIATE FORUM

22.1     GOVERNING LAW: These presents and the Current Issuer Notes are governed
         by, and

                                       38
<PAGE>

         shall be construed in accordance with, English law.

22.2     JURISDICTION: Each of the parties hereto agrees for the benefit of the
         Note Trustee and the Noteholders that the courts of England shall have
         jurisdiction to hear and determine any suit, action or proceeding, and
         to settle any disputes, which may arise out of or in connection with
         these presents and, for such purposes, irrevocably submits to the
         jurisdiction of such courts.

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

IN WITNESS of which these presents has been executed by the parties hereto as a
deed which has been delivered on the date first appearing on page one.

                                       39
<PAGE>

                                   SCHEDULE 1

                        FORMS OF GLOBAL NOTE CERTIFICATES

                           GRANITE MORTGAGES 02-2 PLC
         (INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH
                             REGISTERED NUMBER [O])

                   SERIES 1 CLASS [O] GLOBAL NOTE CERTIFICATE

                                  REPRESENTING
              US$[O] SERIES 1 CLASS [O] FLOATING RATE NOTES DUE [O]

1.       Introduction

         This Series 1 Class [o] Global Note Certificate is issued in respect of
         the US$[o] Series 1 Class [o] Floating Rate Notes due [o] (the "NOTES")
         of Granite Mortgages 02-2 plc (the "CURRENT ISSUER"), and is limited to
         the aggregate principal amount of

                                 [o] US Dollars
                                    (US$[o])

         The Notes are constituted by, are subject to, and have the benefit of,
         a trust deed dated [o] 2002 (as amended or supplemented from time to
         time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and
         The Bank of New York as trustee (the trustee for the time being thereof
         being herein called the "NOTE TRUSTEE") and are the subject of a paying
         agent and agent bank agreement dated [o] 2002 (as amended or
         supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
         AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
         Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
         which expression includes any successor registrar appointed from time
         to time in connection with the Notes), the Transfer Agent, the US
         Paying Agent and the Note Trustee.

2.       References to Conditions

         References herein to the Current Issuer Conditions (or to any
         particular numbered Condition) shall be to the Current Issuer
         Conditions (or that particular one of them) attached hereto.

3.       Registered Holder

         This is to certify that:

                                   CEDE & CO.

         is the person registered in the register maintained by the Registrar in
         relation to the Notes (the "REGISTER") as the duly registered holder
         (the "HOLDER") of

                                 [o] US Dollars

                                    (US$[o])

                                       40
<PAGE>

         in aggregate principal amount of the Notes.

4.       Promise to pay

         Subject only as provided in this Global Note Certificate and the
         Current Issuer Conditions, the Current Issuer, for value received,
         promises to pay to the Holder the principal amount of this Global Note
         Certificate (being at the date hereof [o] US Dollars (US$[o])) on the
         Payment Date falling in [o] (or on such earlier date as the said
         principal amount may become repayable in accordance with the Current
         Issuer Conditions or the Current Issuer Trust Deed) and to pay interest
         on the principal amount from time to time (as noted in the records of
         the custodian for DTC) of this Global Note Certificate quarterly in
         arrear on each Payment Date at the rates determined in accordance with
         the Current Issuer Conditions together with such premium and other
         amounts (if any) as may be payable, all subject to and in accordance
         with the Current Issuer Conditions and the provisions of the Current
         Issuer Trust Deed.

5.       Exchange for Individual Note Certificates

         This Global Note Certificate will be exchangeable (in whole but not in
         part and free of charge to the holder) for duly authenticated and
         completed individual note certificates ("INDIVIDUAL NOTE CERTIFICATES")
         in substantially the form (subject to completion) set out in Schedule 2
         to the Current Issuer Trust Deed only if (i) The Depository Trust
         Company ("DTC") has notified the Current Issuer that it is at any time
         unwilling or unable to continue as, or ceases to be, a clearing agency
         under the United States Securities Exchange Act of 1934, as amended
         (the "EXCHANGE ACT"), and a successor to DTC registered as a clearing
         agency under the Exchange Act is not appointed by the Current Issuer
         within 90 days of such notification, or (ii) as a result of any
         amendment to, or change in, the laws or regulations of the United
         Kingdom (or of any political subdivision thereof), or of any authority
         therein or thereof having power to tax, or in the interpretation or
         administration by a revenue authority or a court or administration of
         such laws or regulations which becomes effective on or after the
         Closing Date, the Current Issuer or any Paying Agent is or will be
         required to make any deduction or withholding from any payment in
         respect of the Notes which would not be required were the relevant
         Notes Individual Note Certificates. Such exchange shall be effected in
         accordance with paragraph 6 (Delivery of Individual Note Certificates)
         below.

6.       Delivery of Individual Note Certificates

         Whenever this Global Note Certificate is to be exchanged for Individual
         Note Certificates, such Individual Note Certificates shall be issued in
         an aggregate principal amount equal to the principal amount of this
         Global Note Certificate within five business days of the delivery, by
         or on behalf of the Holder and/or DTC, to the Registrar of such
         information as is required to complete and deliver such Individual Note
         Certificates (including, without limitation, the names and addresses of
         the persons in whose names the Individual Note Certificates are to be
         registered and the principal amount of each such person's holding)
         against the surrender of this Global Note Certificate at the Specified
         Office (as defined in the Current Issuer Conditions) of the Registrar.
         Such exchange shall be effected in accordance with the provisions of
         the Current Issuer Paying Agent and Agent Bank Agreement and the
         regulations

                                       41
<PAGE>

         concerning the transfer and registration of Notes scheduled thereto
         and, in particular, shall be effected without charge to any Holder or
         the Note Trustee, but against such indemnity as the Registrar may
         require in respect of any tax or other duty of whatsoever nature which
         may be levied or imposed in connection with such exchange. In this
         paragraph, "BUSINESS DAY" means a day on which commercial banks are
         open for business in the city in which the Registrar has its Specified
         Office.

7.       Payments

         Payments of principal, premium (if any) and interest in respect of
         Notes represented by this Global Note Certificate will be made in
         accordance with the Current Issuer Conditions. All payments of any
         amounts payable and paid to the Holder of this Global Note Certificate
         shall be valid and, to the extent of the sums so paid, effectual to
         satisfy and discharge the liability for the monies payable hereon.

8.       Conditions apply

         Save as otherwise provided herein, the Holder of this Global Note
         Certificate shall have the benefit of, and be subject to, the Current
         Issuer Conditions, and, for the purposes of this Global Note
         Certificate, any reference in the Current Issuer Conditions to "NOTE
         CERTIFICATE" or "NOTE CERTIFICATES" shall, except where the context
         otherwise requires, be construed so as to include this Global Note
         Certificate.

9.       Tax Treatment

         The Current Issuer will treat the Notes as indebtedness for U.S.
         federal income tax purposes. Each Holder of a Note, by the acceptance
         hereof, agrees to treat this Note for U.S. federal income tax purposes
         as indebtedness.

10.      Notices

         Notwithstanding Condition 14 (Notice to Noteholders), so long as this
         Global Note Certificate is held on behalf of DTC or any other clearing
         system (an "ALTERNATIVE CLEARING SYSTEM") notices to Holders of Notes
         represented by this Global Note Certificate may be given by delivery of
         the relevant notice to DTC or (as the case may be) such Alternative
         Clearing System.

11.      Determination of Entitlement

         This Global Note Certificate is evidence of entitlement only and is not
         a document of title. Entitlements are determined by the Registrar by
         reference to the Register and only the Holder is entitled to payment in
         respect of this Global Note Certificate.

12.      Authentication

         This Global Note Certificate shall not be or become valid for any
         purpose unless and until authenticated by or on behalf of Citibank,
         N.A. as Registrar.

13.      Definitions

         Terms not defined herein have the meaning ascribed to such terms in the
         Current Issuer Conditions.

                                       42
<PAGE>

14.      Rights of Third Parties

         No person shall have any right under the Contracts (Rights of Third
         Parties) Act 1999 to enforce any term or condition of this Global Note
         Certificate, but this shall not affect any right or remedy which exists
         or is available apart from that Act.

15.      Governing law

         This Global Note Certificate is governed by, and shall be construed in
         accordance with, the laws of England.

IN WITNESS whereof the Current Issuer has caused this Global Note Certificate to
be signed manually or in facsimile by a person duly authorised on its behalf.

                                       43
<PAGE>

GRANITE MORTGAGES 02-2 PLC

By:      ---------------------------------------------
         [manual or facsimile signature]
         (duly authorised)

ISSUED in London, England on [o] 2002.

AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability

------------------------------------------------------
[manual signature]
(duly authorised)

                                       44
<PAGE>

FORM OF TRANSFER

FOR VALUE RECEIVED ....................................., being the registered
holder of this Global Note Certificate, hereby transfers to.....................
of..............................................................................
.................................................................................
US$ ..................................... in principal amount of the US$[amount]
Series 1 Class [o] Floating Rate Notes due [maturity] (the "NOTES") of Granite
Mortgages 02-2 plc (the "CURRENT ISSUER") and irrevocably requests and
authorises Citibank, N.A., in its capacity as Registrar in relation to the Notes
(or any successor to Citibank, N.A., in its capacity as such) to effect the
relevant transfer by means of appropriate entries in the Register kept by it.

Dated: ......................

By:    ......................
       (duly authorised)

NOTES

The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the face
of this Global Note Certificate.

(a)      A representative of such registered holder should state the capacity in
         which he signs, e.g. executor.

(b)      The signature of the person effecting a transfer shall conform to any
         list of duly authorised specimen signatures supplied by the registered
         holder or be certified by a recognised bank, notary public or in such
         other manner as the Registrar may require.

(c)      Any transfer of Notes shall be in an amount equal to US$1,000 or an
         integral multiple of U.S.$1,000 in excess thereof.

                                       45
<PAGE>

[Attached to the Global Note Certificate:]

         [Terms and Conditions as set out in Schedule 3]

[At the foot of the Terms and Conditions:]

           PRINCIPAL PAYING AGENT                        REGISTRAR
                   [NAME]                                 [NAME]
                 [ADDRESS]                               [ADDRESS]

PAYING AGENTS AND TRANSFER AGENT

[NAME]                                      [NAME]
[ADDRESS]                                   [ADDRESS]

                                       46
<PAGE>

                         FORM OF GLOBAL NOTE CERTIFICATE

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE
DATE THAT IS 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF
THE OFFERING OF THE CURRENT ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN
REGULATION S UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

                                       47
<PAGE>

                           GRANITE MORTGAGES 02-2 PLC

         (INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH
                             REGISTERED NUMBER [O])

                   SERIES 2 CLASS [O] GLOBAL NOTE CERTIFICATE

                                  REPRESENTING
            (euro) [O] SERIES 2 CLASS [O] FLOATING RATE NOTES DUE [O]

1.       Introduction

         This Series 2 Class [o] Global Note Certificate is issued in respect of
         the (euro) [o] Series 2 Class [o] Floating Rate Notes due [o] (the
         "NOTES") of Granite Mortgages 02-2 plc (the "CURRENT ISSUER"), and is
         limited to the aggregate principal amount of

                                    [o] Euro
                                   ((euro)[o])

         The Notes are constituted by, are subject to, and have the benefit of,
         a trust deed dated [o] 2002 (as amended or supplemented from time to
         time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and
         The Bank of New York as trustee (the trustee for the time being thereof
         being herein called the "NOTE TRUSTEE") and are the subject of a paying
         agent and agent bank agreement dated [o] 2002 (as amended or
         supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
         AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
         Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
         which expression includes any successor registrar appointed from time
         to time in connection with the Notes), the Transfer Agent, the US
         Paying Agent and the Note Trustee.

2.       References to Conditions

         References herein to the Current Issuer Conditions (or to any
         particular numbered Condition) shall be to the Current Issuer
         Conditions (or that particular one of them) attached hereto.

3.       Registered Holder

         This is to certify that:

                              CITIVIC NOMINEES LTD.

         is the person registered in the register maintained by the Registrar in
         relation to the Notes (the "REGISTER") as the duly registered holder
         (the "HOLDER") of

                                    [o] Euro

                                   ((euro)[o])

         in aggregate principal amount of the Notes.

4.       Promise to pay

                                       48
<PAGE>

         Subject only as provided in this Global Note Certificate and the
         Current Issuer Conditions, the Current Issuer, for value received,
         promises to pay to the Holder the principal amount of this Global Note
         Certificate (being at the date hereof [o] Euro ((euro)[o])) on the
         Payment Date falling in [o] (or on such earlier date as the said
         principal amount may become repayable in accordance with the Current
         Issuer Conditions or the Current Issuer Trust Deed) and to pay interest
         on the principal amount from time to time (as noted in the records of
         the common depositary for Euroclear and Clearstream, Luxembourg of this
         Global Note Certificate) quarterly in arrear on each Payment Date at
         the rates determined in accordance with the Current Issuer Conditions
         together with such premium and other amounts (if any) as may be
         payable, all subject to and in accordance with the Current Issuer
         Conditions and the provisions of the Current Issuer Trust Deed.

5.       Exchange for Individual Note Certificates

         This Global Note Certificate will be exchangeable (in whole but not in
         part and free of charge to the holder) for duly authenticated and
         completed individual note certificates ("INDIVIDUAL NOTE CERTIFICATES")
         in substantially the form (subject to completion) set out in Schedule 2
         to the Current Issuer Trust Deed only if (i) both Euroclear and
         Clearstream, Luxembourg are closed for a continuous period of 14 days
         (other than by reason of a holiday, statutory or otherwise) or announce
         an intention to permanently cease business and do so cease to do
         business and no alternative clearing system satisfactory to the Note
         Trustee is available or (ii) as a result of any amendment to, or change
         in, the laws or regulations of the United Kingdom (or of any political
         subdivision thereof), or of any authority therein or thereof having
         power to tax, or in the interpretation or administration by a revenue
         authority or a court or administration of such laws or regulations
         which becomes effective on or after the Closing Date, the Current
         Issuer or any Paying Agent is or will be required to make any deduction
         or withholding from any payment in respect of the Notes which would not
         be required were the relevant Notes Individual Note Certificates. Such
         exchange shall be effected in accordance with paragraph 6 (Delivery of
         Individual Note Certificates) below.

6.       Delivery of Individual Note Certificates

         Whenever this Global Note Certificate is to be exchanged for Individual
         Note Certificates, such Individual Note Certificates shall be issued in
         an aggregate principal amount equal to the principal amount of this
         Global Note Certificate within five business days of the delivery, by
         or on behalf of the Holder, Euroclear and/or Clearstream, Luxembourg,
         to the Registrar of such information as is required to complete and
         deliver such Individual Note Certificates (including, without
         limitation, the names and addresses of the persons in whose names the
         Individual Note Certificates are to be registered and the principal
         amount of each such person's holding) against the surrender of this
         Global Note Certificate at the Specified Office (as defined in the
         Current Issuer Conditions) of the Registrar. Such exchange shall be
         effected in accordance with the provisions of the Current Issuer Paying
         Agent and Agent Bank Agreement and the regulations concerning the
         transfer and registration of Notes scheduled thereto and, in
         particular, shall be effected without charge to any Holder or the Note
         Trustee, but against such indemnity as the Registrar may require in
         respect of any tax or other duty of whatsoever nature which may be
         levied or imposed in connection with such exchange. In this paragraph,
         "BUSINESS DAY" means a day on

                                       49
<PAGE>

         which commercial banks are open for business in the city in which the
         Registrar has its Specified Office.

7.       Payments

         Payments of principal, premium (if any) and interest in respect of
         Notes represented by this Global Note Certificate will be made in
         accordance with the Current Issuer Conditions. All payments of any
         amounts payable and paid to the Holder of this Global Note Certificate
         shall be valid and, to the extent of the sums so paid, effectual to
         satisfy and discharge the liability for the monies payable hereon.

8.       Conditions apply

         Save as otherwise provided herein, the Holder of this Global Note
         Certificate shall have the benefit of, and be subject to, the Current
         Issuer Conditions, and, for the purposes of this Global Note
         Certificate, any reference in the Current Issuer Conditions to "NOTE
         CERTIFICATE" or "NOTE CERTIFICATES" shall, except where the context
         otherwise requires, be construed so as to include this Global Note
         Certificate.

9.       Notices

         Notwithstanding Condition 14 (Notice to Noteholders), so long as this
         Global Note Certificate is held on behalf of Euroclear and Clearstream,
         Luxembourg or any alternative clearing system (an "ALTERNATIVE CLEARING
         SYSTEM"), notices to Holders of Notes represented by this Global Note
         Certificate may be given by delivery of the relevant notice to
         Euroclear and Clearstream, Luxembourg or (as the case may be) such
         Alternative Clearing System.

10.      Determination of Entitlement

         This Global Note Certificate is evidence of entitlement only and is not
         a document of title. Entitlements are determined by the Registrar by
         reference to the Register and only the Holder is entitled to payment in
         respect of this Global Note Certificate.

11.      Authentication

         This Global Note Certificate shall not be or become valid for any
         purpose unless and until authenticated by or on behalf of Citibank,
         N.A. as Registrar.

12.      Definitions

         Terms not defined herein have the meaning ascribed to such terms in the
         Current Issuer Conditions.

13.      Rights of Third Parties

         No person shall have any right under the Contracts (Rights of Third
         Parties) Act 1999 to enforce any term or condition of this Global Note
         Certificate, but this shall not affect any right or remedy which exists
         or is available apart from that Act.

14.      Governing law

                                       50
<PAGE>

         This Global Note Certificate is governed by, and shall be construed in
         accordance with, the laws of England.

IN WITNESS whereof the Current Issuer has caused this Global Note Certificate to
be signed manually or in facsimile by a person duly authorised on its behalf.

                                       51
<PAGE>

GRANITE MORTGAGES 02-2 PLC

By:      ----------------------------------------------
         [manual or facsimile signature]
         (duly authorised)

ISSUED in London, England on [o] 2002.

AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability

------------------------------------------------------
[manual signature]
(duly authorised)

                                       52
<PAGE>

FORM OF TRANSFER

FOR VALUE RECEIVED .........................., being the registered holder of
this Global Note Certificate, hereby transfers to...............................
.................................................................................
of..............................................................................
.................................................................................
................................., (euro) .......................................
in principal amount of the(euro)[amount] Series 2 Class [o] Floating Rate Notes
due [maturity] (the "NOTES") of Granite Mortgages 02-2 plc (the "CURRENT
Issuer") and irrevocably requests and authorises Citibank, N.A., in its capacity
as Registrar in relation to the Notes (or any successor to Citibank, N.A., in
its capacity as such) to effect the relevant transfer by means of appropriate
entries in the Register kept by it.

Dated:
       ----------------------------------

By:
       ----------------------------------
                        (duly authorised)

NOTES

The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the face
of this Global Note Certificate.

(a)      A representative of such registered holder should state the capacity in
         which he signs, e.g. executor.

(b)      The signature of the person effecting a transfer shall conform to any
         list of duly authorised specimen signatures supplied by the registered
         holder or be certified by a recognised bank, notary public or in such
         other manner as the Registrar may require.

(c)      Any transfer of Notes shall be in an amount equal to (euro)1,000 or an
         integral multiple of (euro)1,000 in excess thereof.

                                       53
<PAGE>

[Attached to the Global Note Certificate:]

         [Terms and Conditions as set out in Schedule 3]

[At the foot of the Terms and Conditions:]

          PRINCIPAL PAYING AGENT                      REGISTRAR
                   [NAME]                              [NAME]
                 [ADDRESS]                            [ADDRESS]

PAYING AGENTS AND TRANSFER AGENT

[NAME]                                      [NAME]
[ADDRESS]                                   [ADDRESS]

                                       54
<PAGE>

                           FORM OF GLOBAL CERTIFICATE

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE
DATE THAT IS 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF
THIS OFFERING OF THE CURRENT ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN
REGULATION S UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

                                       55
<PAGE>

                           GRANITE MORTGAGES 02-2 PLC

         (INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH
                             REGISTERED NUMBER [O])

                   SERIES 3 CLASS [O] GLOBAL NOTE CERTIFICATE

                                  REPRESENTING
           (POUND) [O] SERIES 3 CLASS [O] FLOATING RATE NOTES DUE [O]

1.       Introduction

         This Series 3 Class [o] Global Note Certificate is issued in respect of
         the (pound) [o] Series 3 Class [o] Floating Rate Notes due [o] (the
         "NOTES") of Granite Mortgages 02-2 plc (the "CURRENT ISSUER"), and is
         limited to the aggregate principal amount of

                               [o] Pounds Sterling
                                  ((pound)[o])

         The Notes are constituted by, are subject to, and have the benefit of,
         a trust deed dated [o] 2002 (as amended or supplemented from time to
         time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and
         The Bank of New York as trustee (the trustee for the time being thereof
         being herein called the "NOTE TRUSTEE") and are the subject of a paying
         agent and agent bank agreement dated [o] 2002 (as amended or
         supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
         AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
         Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
         which expression includes any successor registrar appointed from time
         to time in connection with the Notes), the Transfer Agent, the US
         Paying Agent and the Note Trustee.

2.       References to Conditions

         References herein to the Current Issuer Conditions (or to any
         particular numbered Condition) shall be to the Current Issuer
         Conditions (or that particular one of them) attached hereto.

3.       Registered Holder

         This is to certify that:

                              CITIVIC NOMINEES LTD.

         is the person registered in the register maintained by the Registrar in
         relation to the Notes (the "REGISTER") as the duly registered holder
         (the "HOLDER") of

                               [o] Pounds Sterling

                                  ((pound)[o])

         in aggregate principal amount of the Notes.

4.       Promise to pay

                                       56
<PAGE>

         Subject only as provided in this Global Note Certificate and the
         Current Issuer Conditions, the Current Issuer, for value received,
         promises to pay to the Holder the principal amount of this Global Note
         Certificate (being at the date hereof [o] Pounds Sterling ((pound)[o]))
         on the Payment Date falling in [o] (or on such earlier date as the said
         principal amount may become repayable in accordance with the Current
         Issuer Conditions or the Current Issuer Trust Deed) and to pay interest
         on the principal amount from time to time (as noted in the records of
         the common depositary for Euroclear and Clearstream, Luxembourg of this
         Global Note Certificate) quarterly in arrear on each Payment Date at
         the rates determined in accordance with the Current Issuer Conditions
         together with such premium and other amounts (if any) as may be
         payable, all subject to and in accordance with the Current Issuer
         Conditions and the provisions of the Current Issuer Trust Deed.

5.       Exchange for Individual Note Certificates

         This Global Note Certificate will be exchangeable (in whole but not in
         part and free of charge to the holder) for duly authenticated and
         completed individual note certificates ("INDIVIDUAL NOTE CERTIFICATES")
         in substantially the form (subject to completion) set out in Schedule 2
         to the Current Issuer Trust Deed only if (i) both Euroclear and
         Clearstream, Luxembourg are closed for a continuous period of 14 days
         (other than by reason of a holiday, statutory or otherwise) or announce
         an intention to permanently cease business and do so cease to do
         business and no alternative clearing system satisfactory to the Note
         Trustee is available or (ii) as a result of any amendment to, or change
         in, the laws or regulations of the United Kingdom (or of any political
         subdivision thereof), or of any authority therein or thereof having
         power to tax, or in the interpretation or administration by a revenue
         authority or a court or administration of such laws or regulations
         which becomes effective on or after the Closing Date, the Current
         Issuer or any Paying Agent is or will be required to make any deduction
         or withholding from any payment in respect of the Notes which would not
         be required were the relevant Notes Individual Note Certificates. Such
         exchange shall be effected in accordance with paragraph 6 (Delivery of
         Individual Note Certificates) below.

6.       Delivery of Individual Note Certificates

         Whenever this Global Note Certificate is to be exchanged for Individual
         Note Certificates, such Individual Note Certificates shall be issued in
         an aggregate principal amount equal to the principal amount of this
         Global Note Certificate within five business days of the delivery, by
         or on behalf of the Holder, Euroclear and/or Clearstream, Luxembourg,
         to the Registrar of such information as is required to complete and
         deliver such Individual Note Certificates (including, without
         limitation, the names and addresses of the persons in whose names the
         Individual Note Certificates are to be registered and the principal
         amount of each such person's holding) against the surrender of this
         Global Note Certificate at the Specified Office (as defined in the
         Current Issuer Conditions) of the Registrar. Such exchange shall be
         effected in accordance with the provisions of the Current Issuer Paying
         Agent and Agent Bank Agreement and the regulations concerning the
         transfer and registration of Notes scheduled thereto and, in
         particular, shall be effected without charge to any Holder or the Note
         Trustee, but against such indemnity as the Registrar may require in
         respect of any tax or other duty of whatsoever nature which may be
         levied or imposed in connection with such exchange. In this paragraph,
         "BUSINESS DAY" means a day on

                                       57
<PAGE>

         which commercial banks are open for business in the city in which the
         Registrar has its Specified Office.

7.       Payments

         Payments of principal, premium (if any) and interest in respect of
         Notes represented by this Global Note Certificate will be made in
         accordance with the Current Issuer Conditions. All payments of any
         amounts payable and paid to the Holder of this Global Note Certificate
         shall be valid and, to the extent of the sums so paid, effectual to
         satisfy and discharge the liability for the monies payable hereon.

8.       Conditions apply

         Save as otherwise provided herein, the Holder of this Global Note
         Certificate shall have the benefit of, and be subject to, the Current
         Issuer Conditions, and, for the purposes of this Global Note
         Certificate, any reference in the Current Issuer Conditions to "NOTE
         CERTIFICATE" or "NOTE CERTIFICATES" shall, except where the context
         otherwise requires, be construed so as to include this Global Note
         Certificate.

9.       Notices

         Notwithstanding Condition 14 (Notice to Noteholders), so long as this
         Global Note Certificate is held on behalf of Euroclear and Clearstream,
         Luxembourg or any alternative clearing system (an "ALTERNATIVE CLEARING
         SYSTEM"), notices to Holders of Notes represented by this Global Note
         Certificate may be given by delivery of the relevant notice to
         Euroclear and Clearstream, Luxembourg or (as the case may be) such
         Alternative Clearing System.

10.      Determination of Entitlement

         This Global Note Certificate is evidence of entitlement only and is not
         a document of title. Entitlements are determined by the Registrar by
         reference to the Register and only the Holder is entitled to payment in
         respect of this Global Note Certificate.

11.      Authentication

         This Global Note Certificate shall not be or become valid for any
         purpose unless and until authenticated by or on behalf of Citibank,
         N.A. as Registrar.

12.      Definitions

         Terms not defined herein have the meaning ascribed to such terms in the
         Current Issuer Conditions.

13.      Rights of Third Parties

         No person shall have any right under the Contracts (Rights of Third
         Parties) Act 1999 to enforce any term or condition of this Global Note
         Certificate, but this shall not affect any right or remedy which exists
         or is available apart from that Act.

14.      Governing law

                                       58
<PAGE>

         This Global Note Certificate is governed by, and shall be construed in
         accordance with, the laws of England.

IN WITNESS whereof the Current Issuer has caused this Global Note Certificate to
be signed manually or in facsimile by a person duly authorised on its behalf.

                                       59
<PAGE>

GRANITE MORTGAGES 02-2 PLC

By:
    --------------------------------------------------
    [manual or facsimile signature]
    (duly authorised)

ISSUED in London, England on [o] 2002.

AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability

------------------------------------------------------
[manual signature]
(duly authorised)

                                       60
<PAGE>

FORM OF TRANSFER

FOR VALUE RECEIVED ................., being the registered holder of this Global
Note Certificate, hereby transfers to...........................................
.................................................................................
of..............................................................................
.................................................................................
.................................................................................
........................................,(pound).................... in principal
amount of the(pound)[amount] Series 3 Class [o] Floating Rate Notes due
[maturity] (the "NOTES") of Granite Mortgages 02-2 plc (the "CURRENT ISSUER")
and irrevocably requests and authorises Citibank, N.A., in its capacity as
Registrar in relation to the Notes (or any successor to Citibank, N.A., in its
capacity as such) to effect the relevant transfer by means of appropriate
entries in the Register kept by it.

Dated:
       -------------------------------------

By:
       -------------------------------------
                           (duly authorised)

NOTES

The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the face
of this Global Note Certificate.

(a)      A representative of such registered holder should state the capacity in
         which he signs, e.g. executor.

(b)      The signature of the person effecting a transfer shall conform to any
         list of duly authorised specimen signatures supplied by the registered
         holder or be certified by a recognised bank, notary public or in such
         other manner as the Registrar may require.

(c)      Any transfer of Notes shall be in an amount equal to (pound)1,000 or an
         integral multiple of (pound)1,000 in excess thereof.

                                       61
<PAGE>

[Attached to the Global Note Certificate:]

         [Terms and Conditions as set out in Schedule 3]

[At the foot of the Terms and Conditions:]

           PRINCIPAL PAYING AGENT                        REGISTRAR
                   [NAME]                                 [NAME]
                 [ADDRESS]                               [ADDRESS]

PAYING AGENTS AND TRANSFER AGENT

[NAME]                                      [NAME]
[ADDRESS]                                   [ADDRESS]

                                       62
<PAGE>

                                   SCHEDULE 2

                      FORMS OF INDIVIDUAL NOTE CERTIFICATES

--------------------------------------------------------------------------------
US$[1,000/10,000]   [ISIN]   [CUSIP]   [COMMON CODE]   [SERIES]   [SERIAL NO.]
--------------------------------------------------------------------------------

                           GRANITE MORTGAGES 02-2 PLC
         (INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH
                             REGISTERED NUMBER [O])

                 SERIES 1 CLASS [O] INDIVIDUAL NOTE CERTIFICATE

                                  REPRESENTING
              US$[O] SERIES 1 CLASS [O] FLOATING RATE NOTES DUE [O]

1.       Introduction

         This Series 1 Class [o] Individual Note Certificate is issued in
         respect of the US$[o] Series 1 Class [o] Floating Rate Notes due [o]
         (the "NOTES") of Granite Mortgages 02-2 plc (the "CURRENT ISSUER"),
         limited to the aggregate principal amount of

                                 [o] US Dollars
                                    (US$[o])

         The Notes are constituted by, are subject to, and have the benefit of,
         a trust deed dated [o] 2002 (as amended or supplemented from time to
         time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and
         The Bank of New York as trustee (the trustee for the time being thereof
         being herein called the "NOTE TRUSTEE") and are the subject of a paying
         agent and agent bank agreement dated [o] 2002 (as amended or
         supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
         AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
         Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
         which expression includes any successor registrar appointed from time
         to time in connection with the Notes), the Transfer Agent, the US
         Paying Agent and the Note Trustee.

2.       References to Conditions

         References herein to the Current Issuer Conditions (or to any
         particular numbered Condition) shall be to the Current Issuer
         Conditions (or that particular one of them) attached hereto.

3.       Registered Holder

         This is to certify that

                                  [NOTEHOLDER]

         is the person registered in the register maintained by the Registrar in
         relation to the Notes (the "REGISTER") as the duly registered holder
         (the "HOLDER") of Notes represented from time to time by this
         Individual Note Certificate in the aggregate principal amount of:

                                       63
<PAGE>

                                     US$[O]

                          US DOLLARS [AMOUNT IN WORDS]

         in aggregate principal amount of the Notes.

4.       Promise to pay

         Subject only as provided in this Individual Note Certificate and the
         Current Issuer Conditions, the Current Issuer, for value received,
         promises to pay to the Holder the principal amount of this Individual
         Note Certificate (being at the date hereof [o] US Dollars (US$[o])) on
         the Payment Date falling in [o] (or on such earlier date as the said
         principal amount may become repayable in accordance with the Current
         Issuer Conditions or the Current Issuer Trust Deed) and to pay interest
         on the principal amount from time to time of this Individual Note
         Certificate quarterly in arrear on each Payment Date at the rates
         determined in accordance with the Current Issuer Conditions together
         with such premium and other amounts (if any) as may be payable, all
         subject to and in accordance with the Current Issuer Conditions and the
         provisions of the Current Issuer Trust Deed.

5.       Payments

         Payments of principal, premium (if any) and interest in respect of
         Notes represented by this Individual Note Certificate will be made in
         accordance with the Current Issuer Conditions. All payments of any
         amounts payable and paid to the Holder of this Individual Note
         Certificate shall be valid and, to the extent of the sums so paid,
         effectual to satisfy and discharge the liability for the monies payable
         hereon.

6.       Conditions apply

         Save as otherwise provided herein, the Holder of this Individual Note
         Certificate shall have the benefit of, and be subject to, the Current
         Issuer Conditions, and, for the purposes of this Individual Note
         Certificate, any reference in the Current Issuer Conditions to "NOTE
         CERTIFICATE" or "NOTE CERTIFICATES" shall, except where the context
         otherwise requires, be construed so as to include this Individual Note
         Certificate.

7.       Determination of Entitlement

         This Individual Note Certificate is evidence of entitlement only and is
         not a document of title. Entitlements are determined by the Registrar
         by reference to the Register and only the Holder is entitled to payment
         in respect of this Individual Note Certificate.

8.       Authentication

         This Individual Note Certificate shall not be or become valid for any
         purpose unless and until authenticated by or on behalf of Citibank,
         N.A. as Registrar.

9.       Tax Treatment

                                       64
<PAGE>

         The Current Issuer will treat the Notes as indebtedness for U.S.
         federal income tax purposes. Each holder of a Note, by the acceptance
         hereof, agrees to treat this Note for U.S. federal income tax purposes
         as indebtedness.

10.      Definitions

         Terms not defined herein have the meaning ascribed to such terms in the
         Current Issuer Conditions.

11.      Rights of Third Parties

         No person shall have any right under the Contracts (Rights of Third
         Parties) Act 1999 to enforce any term or condition of this Individual
         Note Certificate, but this shall not affect any right or remedy which
         exists or is available apart from that Act.

12.      Governing law

         This Individual Note Certificate is governed by, and shall be construed
         in accordance with, the laws of England.

IN WITNESS whereof the Current Issuer has caused this Individual Note
Certificate to be signed manually or in facsimile by a person duly authorised on
its behalf.

GRANITE MORTGAGES 02-2 PLC

By:
    --------------------------------------------
    [manual or facsimile signature]
    (duly authorised)

ISSUED in London, England on [o].

AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability

------------------------------------------------
[manual signature]
(duly authorised)

                                       65
<PAGE>

FORM OF TRANSFER

FOR VALUE RECEIVED ............................., being the registered holder of
this Individual Note Certificate, hereby transfers to...........................
.................................................................................
of.............................................................................,
.................................................................................
..............US$ ..................................... in principal amount of
the US$[amount] Series 1 Class [o] Floating Rate Notes due [maturity] (the
"NOTES") of Granite Mortgages 02-2 plc (the "CURRENT ISSUER") and irrevocably
requests and authorises Citibank, N.A., in its capacity as Registrar in relation
to the Notes (or any successor to Citibank, N.A., in its capacity as such) to
effect the relevant transfer by means of appropriate entries in the Register
kept by it.

We as transferor of the Notes represented by this Individual Note Certificate
hereby certify that such Notes are being transferred in accordance with the
transfer restrictions set forth in Schedule 2 to the Current Issuer Paying
Agency and Agent Bank Agreement.

Dated:
        --------------------------------------------
By:
        --------------------------------------------
                                   (duly authorised)

NOTES

The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the face
of this Individual Note Certificate.

(a)      A representative of such registered holder should state the capacity in
         which he signs, e.g. executor.

(b)      The signature of the person effecting a transfer shall conform to any
         list of duly authorised specimen signatures supplied by the registered
         holder or be certified by a recognised bank, notary public or in such
         other manner as the Registrar may require.

(c)      Any transfer of Notes shall be in an amount equal to US$1,000 or an
         integral multiple of U.S.$1,000 in excess thereof.

                                       66
<PAGE>

[Attached to the Individual Note Certificate:]

         [Terms and Conditions as set out in Schedule 3]

[At the foot of the Terms and Conditions:]

           PRINCIPAL PAYING AGENT                         REGISTRAR

                   [NAME]                                  [NAME]
                 [ADDRESS]                                [ADDRESS]

PAYING AGENTS AND TRANSFER AGENT

[NAME]                                      [NAME]
[ADDRESS]                                   [ADDRESS]

                                       67
<PAGE>

                       FORM OF INDIVIDUAL NOTE CERTIFICATE

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE
DATE THAT IS 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF
THE OFFERING OF THE CURRENT ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN
REGULATION S UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

                                       68
<PAGE>

--------------------------------------------------------------------------------
(euro)[1,000/10,000]     [ISIN]     [COMMON CODE]     [SERIES]     [SERIAL NO.]
--------------------------------------------------------------------------------

                           GRANITE MORTGAGES 02-2 PLC
         (INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH
                             REGISTERED NUMBER [O])

                 SERIES 2 CLASS [O] INDIVIDUAL NOTE CERTIFICATE

                                  REPRESENTING
            (euro) [O] SERIES 2 [O] CLASS FLOATING RATE NOTES DUE [O]

1.       Introduction

         This Series 2 Class [o] Individual Note Certificate is issued in
         respect of the (euro) [o] Series 2 Class [o] Floating Rate Notes due
         [o] (the "NOTES") of Granite Mortgages 02-2 plc (the "CURRENT ISSUER"),
         limited to the aggregate principal amount of

                                    [o] Euro
                                   ((euro)[o])

         The Notes are constituted by, are subject to, and have the benefit of,
         a trust deed dated [o] 2002 (as amended or supplemented from time to
         time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and
         The Bank of New York as trustee (the trustee for the time being thereof
         being herein called the "NOTE TRUSTEE") and are the subject of a paying
         agent and agent bank agreement dated [o] 2002 (as amended or
         supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
         AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
         Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
         which expression includes any successor registrar appointed from time
         to time in connection with the Notes), the Transfer Agent, the US
         Paying Agent and the Note Trustee.

2.       References to Conditions

         References herein to the Current Issuer Conditions (or to any
         particular numbered Condition) shall be to the Current Issuer
         Conditions (or that particular one of them) attached hereto.

3.       Registered Holder

         This is to certify that

                                  [NOTEHOLDER]

         is the person registered in the register maintained by the Registrar in
         relation to the Notes (the "REGISTER") as the duly registered holder
         (the "HOLDER") of Notes represented from time to time by this
         Individual Note Certificate in the aggregate principal amount of:

                                   (euro) [O]

                              EURO[AMOUNT IN WORDS]

                                       69
<PAGE>

         in aggregate principal amount of the Notes.

4.       Promise to pay

         Subject only as provided in this Individual Note Certificate and the
         Current Issuer Conditions, the Current Issuer, for value received,
         promises to pay to the Holder the principal amount of this Individual
         Note Certificate (being at the date hereof [o] Euro ((euro)[o])) on the
         Payment Date falling in [o] (or on such earlier date as the said
         principal amount may become repayable in accordance with the Current
         Issuer Conditions or the Current Issuer Trust Deed) and to pay interest
         on the principal amount from time to time of this Individual Note
         Certificate quarterly in arrear on each Payment Date at the rates
         determined in accordance with the Current Issuer Conditions together
         with such premium and other amounts (if any) as may be payable, all
         subject to and in accordance with the Current Issuer Conditions and the
         provisions of the Current Issuer Trust Deed.

5.       Payments

         Payments of principal, premium (if any) and interest in respect of
         Notes represented by this Individual Note Certificate will be made in
         accordance with the Current Issuer Conditions. All payments of any
         amounts payable and paid to the Holder of this Individual Note
         Certificate shall be valid and, to the extent of the sums so paid,
         effectual to satisfy and discharge the liability for the monies payable
         hereon.

6.       Conditions apply

         Save as otherwise provided herein, the Holder of this Individual Note
         Certificate shall have the benefit of, and be subject to, the Current
         Issuer Conditions, and, for the purposes of this Individual Note
         Certificate, any reference in the Current Issuer Conditions to "NOTE
         CERTIFICATE" or "NOTE CERTIFICATES" shall, except where the context
         otherwise requires, be construed so as to include this Individual Note
         Certificate.

7.       Determination of Entitlement

         This Individual Note Certificate is evidence of entitlement only and is
         not a document of title. Entitlements are determined by the Registrar
         by reference to the Register and only the Holder is entitled to payment
         in respect of this Individual Note Certificate.

8.       Authentication

         This Individual Note Certificate shall not be or become valid for any
         purpose unless and until authenticated by or on behalf of Citibank,
         N.A. as Registrar.

9.       Definitions

         Terms not defined herein have the meaning ascribed to such terms in the
         Current Issuer Conditions.

10.      Rights of Third Parties

                                       70
<PAGE>

         No person shall have any right under the Contracts (Rights of Third
         Parties) Act 1999 to enforce any term or condition of this Individual
         Note Certificate, but this shall not affect any right or remedy which
         exists or is available apart from that Act.

11.      Governing law

         This Individual Note Certificate is governed by, and shall be construed
         in accordance with, the laws of England.

IN WITNESS whereof the Current Issuer has caused this Individual Note
Certificate to be signed manually or in facsimile by a person duly authorised on
its behalf.

GRANITE MORTGAGES 02-2 PLC

By:
    --------------------------------------------
    [manual or facsimile signature]
    (duly authorised)

ISSUED in London, England on [o].

AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability

------------------------------------------------
[manual signature]
(duly authorised)

                                       71
<PAGE>

FORM OF TRANSFER

FOR VALUE RECEIVED ............................., being the registered holder of
this Individual Note Certificate, hereby transfers to...........................
.................................................................................
of .............................................................................
.................................................................................
.................................................................................
.........................,(euro) ............................... in principal
amount of the (euro) [amount] Series 2 Class [o] Floating Rate Notes due
[maturity] (the "NOTES") of Granite Mortgages 02-2 plc (the "CURRENT ISSUER")
and irrevocably requests and authorises Citibank, N.A., in its capacity as
Registrar in relation to the Notes (or any successor to Citibank, N.A., in its
capacity as such) to effect the relevant transfer by means of appropriate
entries in the Register kept by it.

We as transferor of the Notes represented by this Individual Note Certificate
hereby certify that such Notes are being transferred in accordance with the
transfer restrictions set forth in Schedule 2 to the Current Issuer Paying Agent
and Agent Bank Agreement.

Dated:
       --------------------------------------------

By:
       --------------------------------------------
                                  (duly authorised)

NOTES

The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the face
of this Individual Note Certificate.

(a)      A representative of such registered holder should state the capacity in
         which he signs, e.g. executor.

(b)      The signature of the person effecting a transfer shall conform to any
         list of duly authorised specimen signatures supplied by the registered
         holder or be certified by a recognised bank, notary public or in such
         other manner as the Registrar may require.

(c)      Any transfer of Notes shall be in an amount equal to (euro)1,000 or an
         integral multiple of (euro)1,000 in excess thereof.

                                       72
<PAGE>

[Attached to the Individual Note Certificate:]

         [Terms and Conditions as set out in Schedule 3]

[At the foot of the Terms and Conditions:]

           PRINCIPAL PAYING AGENT                     REGISTRAR
                   [NAME]                              [NAME]
                 [ADDRESS]                            [ADDRESS]

PAYING AGENTS AND TRANSFER AGENT

[Name]                                      [Name]
[Address]                                   [Address]

                                       73
<PAGE>

                       FORM OF INDIVIDUAL NOTE CERTIFICATE

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES AND, AS A MATTER OF U.S. LAW, PRIOR TO THE
DATE THAT IS 40 DAYS AFTER THE LATER OF THE CLOSING DATE AND THE COMMENCEMENT OF
THE OFFERING OF THE CURRENT ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN
REGULATION S UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

                                       74
<PAGE>

--------------------------------------------------------------------------------
(pound)[1,000/10,000]     [ISIN]     [COMMON CODE]     [SERIES]     [SERIAL NO.]
--------------------------------------------------------------------------------

                           GRANITE MORTGAGES 02-2 PLC
         (INCORPORATED WITH LIMITED LIABILITY IN ENGLAND AND WALES WITH
                             REGISTERED NUMBER [O])

                 SERIES 3 CLASS [O] INDIVIDUAL NOTE CERTIFICATE

                                  REPRESENTING
           (POUND) [O] SERIES 3 CLASS [O] FLOATING RATE NOTES DUE [O]

1.       Introduction

         This Series 3 Class [o] Individual Note Certificate is issued in
         respect of the (pound) [o] Series 3 Class [o] Floating Rate Notes due
         [o] (the "NOTES") of Granite Mortgages 02-2 plc (the "CURRENT ISSUER"),
         limited to the aggregate principal amount of

                               [o] Pounds Sterling
                                  ((pound)[o])

         The Notes are constituted by, are subject to, and have the benefit of,
         a trust deed dated [o] 2002 (as amended or supplemented from time to
         time, the "CURRENT ISSUER TRUST DEED") between the Current Issuer and
         The Bank of New York as trustee (the trustee for the time being thereof
         being herein called the "NOTE TRUSTEE") and are the subject of a paying
         agent and agent bank agreement dated [o] 2002 (as amended or
         supplemented from time to time, the "CURRENT ISSUER PAYING AGENT AND
         AGENT BANK AGREEMENT") between the Current Issuer, the Principal Paying
         Agent, the Agent Bank, Citibank, N.A. as registrar (the "REGISTRAR",
         which expression includes any successor registrar appointed from time
         to time in connection with the Notes), the Transfer Agent, the US
         Paying Agent and the Note Trustee.

2.       References to Conditions

         References herein to the Current Issuer Conditions (or to any
         particular numbered Condition) shall be to the Current Issuer
         Conditions (or that particular one of them) attached hereto.

3.       Registered Holder

         This is to certify that

                                  [NOTEHOLDER]

         is the person registered in the register maintained by the Registrar in
         relation to the Notes (the "REGISTER") as the duly registered holder
         (the "HOLDER") of Notes represented from time to time by this
         Individual Note Certificate in the aggregate principal amount of:

                                   (POUND) [O]

                        POUNDS STERLING [AMOUNT IN WORDS]

                                       75
<PAGE>

         in aggregate principal amount of the Notes.

4.       Promise to pay

         Subject only as provided in this Individual Note Certificate and the
         Current Issuer Conditions, the Current Issuer, for value received,
         promises to pay to the Holder the principal amount of this Individual
         Note Certificate (being at the date hereof [o] Pounds Sterling
         ((pound)[o])) on the Payment Date falling in [o] (or on such earlier
         date as the said principal amount may become repayable in accordance
         with the Current Issuer Conditions or the Current Issuer Trust Deed)
         and to pay interest on the principal amount from time to time of this
         Individual Note Certificate quarterly in arrear on each Payment Date at
         the rates determined in accordance with the Current Issuer Conditions
         together with such premium and other amounts (if any) as may be
         payable, all subject to and in accordance with the Current Issuer
         Conditions and the provisions of the Current Issuer Trust Deed.

5.       Payments

         Payments of principal, premium (if any) and interest in respect of
         Notes represented by this Individual Note Certificate will be made in
         accordance with the Current Issuer Conditions. All payments of any
         amounts payable and paid to the Holder of this Individual Note
         Certificate shall be valid and, to the extent of the sums so paid,
         effectual to satisfy and discharge the liability for the monies payable
         hereon.

6.       Conditions apply

         Save as otherwise provided herein, the Holder of this Individual Note
         Certificate shall have the benefit of, and be subject to, the Current
         Issuer Conditions, and, for the purposes of this Individual Note
         Certificate, any reference in the Current Issuer Conditions to "NOTE
         CERTIFICATE" or "NOTE CERTIFICATES" shall, except where the context
         otherwise requires, be construed so as to include this Individual Note
         Certificate.

7.       Determination of Entitlement

         This Individual Note Certificate is evidence of entitlement only and is
         not a document of title. Entitlements are determined by the Registrar
         by reference to the Register and only the Holder is entitled to payment
         in respect of this Individual Note Certificate.

8.       Authentication

         This Individual Note Certificate shall not be or become valid for any
         purpose unless and until authenticated by or on behalf of Citibank,
         N.A. as Registrar.

9.       Definitions

         Terms not defined herein have the meaning ascribed to such terms in the
         Current Issuer Conditions.

10.      Rights of Third Parties

                                       76
<PAGE>

         No person shall have any right under the Contracts (Rights of Third
         Parties) Act 1999 to enforce any term or condition of this Individual
         Note Certificate, but this shall not affect any right or remedy which
         exists or is available apart from that Act.

11.      Governing law

         This Individual Note Certificate is governed by, and shall be construed
         in accordance with, the laws of England.

IN WITNESS whereof the Current Issuer has caused this Individual Note
Certificate to be signed manually or in facsimile by a person duly authorised on
its behalf.

GRANITE MORTGAGES 02-2 PLC

By:
    --------------------------------------------
    [manual or facsimile signature]
    (duly authorised)

ISSUED in London, England on [o].

AUTHENTICATED for and on behalf of
CITIBANK, N.A.
as Registrar without recourse, warranty, or liability

------------------------------------------------
[manual signature]
(duly authorised)

                                       77
<PAGE>

FORM OF TRANSFER

FOR VALUE RECEIVED ............................., being the registered holder of
this Individual Note Certificate, hereby transfers to...........................
of..............................................................................
.................................................................................
.................................................................................
....................,(pound).......................... in principal amount of the
(pound)[amount] Series 3 Class [o] Floating Rate Notes due [maturity] (the
"NOTES") of Granite Mortgages 02-2 plc (the "CURRENT ISSUER") and irrevocably
requests and authorises Citibank, N.A., in its capacity as Registrar in relation
to the Notes (or any successor to Citibank, N.A., in its capacity as such) to
effect the relevant transfer by means of appropriate entries in the Register
kept by it.

We as transferor of the Notes represented by this Individual Note Certificate
hereby certify that such Notes are being transferred in accordance with the
transfer restrictions set forth in Schedule 2 to the Current Issuer Paying Agent
and Agent Bank Agreement.

Dated:
       ----------------------------------------------
By:
       ----------------------------------------------
                                    (duly authorised)

NOTES

The name of the person by or on whose behalf this form of transfer is signed
must correspond with the name of the registered holder as it appears on the face
of this Individual Note Certificate.

(a)      A representative of such registered holder should state the capacity in
         which he signs, e.g. executor.

(b)      The signature of the person effecting a transfer shall conform to any
         list of duly authorised specimen signatures supplied by the registered
         holder or be certified by a recognised bank, notary public or in such
         other manner as the Registrar may require.

(c)      Any transfer of Notes shall be in an amount equal to (pound)1,000 or an
         integral multiple of(pound)1,000 in excess thereof.

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[Attached to the Individual Note Certificate:]

         [Terms and Conditions as set out in Schedule 3]

[At the foot of the Terms and Conditions:]

           PRINCIPAL PAYING AGENT                    REGISTRAR
                   [NAME]                             [NAME]
                 [ADDRESS]                           [ADDRESS]

PAYING AGENTS AND TRANSFER AGENT

[Name]                                      [Name]
[Address]                                   [Address]

                                       79
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                                   SCHEDULE 3

                     CURRENT ISSUER CONDITIONS OF THE NOTES

                                       80
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                                   SCHEDULE 4

                     PROVISIONS FOR MEETINGS OF NOTEHOLDERS

1  (A)   DEFINITIONS

         As used in this Schedule the following expressions shall have the
         following meanings unless the context otherwise requires:

         "BASIC TERMS MODIFICATION" means any of the following matters, namely:

         (i)      any reduction or cancellation of the amount payable or, where
                  applicable, any modification, except where such modification
                  is in the opinion of the Note Trustee bound to result in an
                  increase, of the method of calculating the amount payable or
                  any modification of the date of payment or, where applicable,
                  of the method of calculating the date of payment in respect of
                  any principal, premium or interest in respect of the Current
                  Issuer Notes;

         (ii)     any alteration in the priority in which payments are made to
                  Noteholders pursuant to any Current Issuer Priority of
                  Payments;

         (iii)    any alteration of the currency in which payments under the
                  Current Issuer Notes are to be made;

         (iv)     any alteration of the quorum or majority required to pass an
                  Extraordinary Resolution in respect of any such Basic Terms
                  Modification; and

         (v)      any alteration of this proviso or the proviso to paragraph 6
                  below;

         "BLOCK VOTING INSTRUCTION" shall mean, in relation to any Meeting, an
         English language document issued by the Registrar and dated in which:

         (a)      it is certified that:

                  (i)      certain specified Current Issuer Notes (each a
                           "BLOCKED NOTE") have been blocked in an account with
                           a clearing system and will not be released until the
                           conclusion of the Meeting and that the holder of each
                           Blocked Note or a duly authorised person on its
                           behalf has instructed the Registrar that the votes
                           attributable to such Blocked Note are to be cast in a
                           particular way on each resolution to be put to the
                           Meeting; or

                  (ii)     each registered holder of such Current Issuer Notes
                           or a duly authorised person on its behalf has
                           instructed the Registrar that the vote(s)
                           attributable to the Current Issuer Note or Current
                           Issuer Notes so held (each a "RELEVANT NOTE") should
                           be cast in a particular way in relation to the
                           resolution or resolutions to be put to such Meeting
                           or any adjourned such Meeting;

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<PAGE>

                  (iii)    and in each case that, all such instructions are,
                           during the period commencing 48 hours prior to the
                           time for which such Meeting or any such adjourned
                           Meeting is convened and ending at the conclusion or
                           adjournment thereof, neither revocable nor capable of
                           amendment;

         (b)      the aggregate principal amount of the Blocked Notes and
                  Relevant Notes so held are listed distinguishing with regard
                  to each such resolution between those in respect of which
                  instructions have been given as aforesaid that the votes
                  attributable thereto should be cast in favour of the
                  resolution and those in respect of which instructions have
                  been so given that the votes attributable thereto should be
                  cast against the resolution; and

         (c)      one or more persons named in such document is or are
                  authorised and instructed by such Registrar to cast the votes
                  attributable to such Blocked Note and Relevant Notes so listed
                  in accordance with the instructions referred to in (a) above
                  as set out in such document;

         "CHAIRMAN" means, in relation to any Meeting, the individual who takes
         the chair in accordance with paragraph 4 (Chairman);

         "EXTRAORDINARY RESOLUTION" means (a) a resolution passed at a Meeting
         duly convened and held in accordance with the provisions of this
         Schedule 4 by a majority consisting of not less than three-fourths of
         the persons voting thereat upon a show of hands or if a poll is duly
         demanded by a majority consisting of not less than three-fourths of the
         votes cast on such poll or (b) a resolution in writing signed by or on
         behalf of all the Noteholders of a particular class which resolution
         may be contained in one document or several documents in like form each
         signed by or on behalf of one or more of the Noteholders;

         "FORM OF PROXY" means, in relation to any Meeting, a document in the
         English language available from the Registrar signed by a Noteholder
         or, in the case of a corporation, executed under its seal or signed on
         its behalf by a duly authorised officer of the corporation and
         delivered to the Registrar not later than 48 hours before the time
         fixed for such Meeting, appointing one or more persons who is or are
         authorised and instructed to vote in respect of the Current Issuer
         Notes held by such Noteholder;

         "MEETING" shall mean a meeting of Noteholders (whether originally
         convened or reviewed following an adjournment);

         "PROXY" means, in relation to any Meeting, a person appointed to vote
         under a Block Voting Instruction or a Form of Proxy other than:

         (a)      any such person whose appointment has been revoked and in
                  relation to whom the Registrar has been notified in writing of
                  such revocation by the time which is 48 hours before the time
                  fixed for such Meeting; and

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<PAGE>

         (b)      any such person appointed to vote at a Meeting which has been
                  adjourned for want of a quorum and who has not been
                  re-appointed to vote at a Meeting when it is resumed;

         "CURRENT ISSUER NOTES" and "NOTEHOLDERS" shall mean:

         (a)      in connection with a Meeting of Senior Noteholders, Senior
                  Notes and Senior Noteholders, respectively;

         (b)      in connection with a Meeting of Mezzanine Noteholders,
                  Mezzanine Notes and Mezzanine Noteholders respectively; and

         (c)      in connection with a Meeting of Junior Noteholders, Junior
                  Notes and Junior Noteholders respectively;

         "WRITTEN RESOLUTION" means a resolution in writing signed by or on
         behalf of all holders of a class of Current Issuer Notes who for the
         time being are entitled to receive notice of a Meeting in accordance
         with the provisions of this Schedule, whether contained in one document
         or several documents in the same form, each signed by or on behalf of
         one or more such holders of the relevant class of Current Issuer Notes;

         "24 HOURS" means a period of 24 hours including all or part of a day
         upon which banks are open for business in both the place where the
         relevant Meeting is to be held and in each of the places where the
         Paying Agents have their Specified Offices (disregarding for this
         purpose the day upon which such Meeting is to be held) and such period
         shall be extended by one period or, to the extent necessary, more
         periods of 24 hours until there is included as aforesaid all or part of
         a day upon which banks are open for business in all of the places as
         aforesaid; and

         "48 HOURS" means 2 consecutive periods of 24 hours.

(B)      ISSUE OF BLOCK VOTING INSTRUCTIONS

         The holder of a Current Issuer Note may require the Registrar to issue
         a Block Voting Instruction by arranging (to the satisfaction of the
         Registrar) for such Current Issuer Note to be blocked in an account
         with a clearing system not later than 48 hours before the time fixed
         for the relevant Meeting. The holder of a Current Issuer Note may
         require the Registrar to issue a Block Voting Instruction by delivering
         to the Registrar written instructions not later than 48 hours before
         the time fixed for the relevant Meeting. Any holder of a Current Issuer
         Note may obtain an uncompleted and unexecuted Form of Proxy from the
         Registrar. A Block Voting Instruction and a Form of Proxy cannot be
         outstanding simultaneously in respect of the same Current Issuer Note.

(C)      REFERENCES TO BLOCKING/RELEASE OF CURRENT ISSUER NOTES

         Where Current Issuer Notes are represented by Global Note Certificates
         or are held in individual certificated form within a Clearing System)
         references to blocking or release, of Current Issuer Notes shall be
         construed in accordance with the usual practices (including blocking
         the relevant account) of the relevant Clearing System.

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<PAGE>

(D)      ISSUE OF FORMS OF PROXY

         (i)      A holder of Current Issuer Notes may obtain an uncompleted and
                  unexecuted Form of Proxy from the Registrar.

         (ii)     Any holder of Current Issuer Notes which is a corporation may
                  by resolution of its directors or other governing body
                  authorise any person to act as its representative (a
                  "REPRESENTATIVE") in connection with any Meeting.

         (iii)    Any Proxy or Representative shall, so long as such appointment
                  remains in force, be deemed for all purposes in connection
                  with the relevant Meeting, to be the holder of the Current
                  Issuer Notes to which such appointment relates and the holder
                  of the Current Issuer Notes shall be deemed for such purposes
                  not to be the holder.

2.       CONVENING OF MEETING

         The Current Issuer or the Note Trustee may convene a Meeting at any
         time, and the Note Trustee shall be obliged to do so subject to it
         being indemnified to its satisfaction upon a request in writing of
         Noteholders holding not less than one-tenth in principal amount of the
         outstanding Current Issuer Notes of any class or classes entitled to
         vote and, if the Current Issuer defaults for a period of seven days in
         convening such a Meeting, the same may be convened by the Note Trustee
         or the requisitionists. Every such Meeting shall be held on such date
         and at such time and place as the Note Trustee may appoint or approve.

3.       NOTICE

         At least 21 days' notice (exclusive of the day on which the notice is
         given and the day on which the Meeting is to be held) specifying the
         place, day and hour of Meeting shall be given to the Noteholders or, as
         the case may be the Noteholders of any class of Current Issuer Notes
         entitled to vote, the Paying Agents, the Agent Bank and the Registrar
         prior to any Meeting. Such notice, which shall be in the English
         language, shall state generally the nature of the business to be
         transacted at the Meeting thereby convened and shall specify the terms
         of any resolution to be proposed. Such notice shall include statements,
         if applicable, to the effect that (a) Current Issuer Notes may be
         blocked in clearing systems for the purposes of appointing Proxies
         under Block Voting Instructions until 48 hours before the time fixed
         for the Meeting and (b) a Noteholder may appoint a Proxy either (i)
         under a Block Voting Instruction by delivering written instructions to
         the Registrar or (ii) by executing and delivering a Form of Proxy to
         the Specified Office of the Registrar, in either case until 48 hours
         before the time fixed for the Meeting. A copy of the notice shall be
         sent by post to the Note Trustee (unless the Meeting is convened by the
         Note Trustee) and, to the Current Issuer (unless the Meeting is
         convened by the Current Issuer).

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4.       CHAIRMAN

         A person (who may, but need not be, a Noteholder) nominated in writing
         by the Note Trustee shall be entitled to take the chair at the relevant
         Meeting, but if no such nomination is made or if at any Meeting the
         person nominated shall not be present within 15 minutes after the time
         appointed for holding the Meeting the Noteholders present shall choose
         one of their number to be Chairman, failing which the Current Issuer
         may appoint a Chairman. The Chairman of an adjourned Meeting need not
         be the same person as was Chairman of the Meeting from which the
         adjournment took place.

5.       QUORUM

         Subject as provided in the Current Issuer Conditions:

         (a)      any such Meeting of two or more persons present holding
                  Current Issuer Notes or being Proxies or Representatives and
                  holding or representing in the aggregate not less than
                  one-twentieth of the principal amount of the Current Issuer
                  Notes of the relevant class or classes for the time being
                  outstanding (or, at any adjourned Meeting, two or more persons
                  being or representing Noteholders whatever the aggregate
                  Principal Amount Outstanding of the Current Issuer Notes of
                  the relevant class or classes) shall (except for the purpose
                  of passing an Extraordinary Resolution) form a quorum for the
                  transaction of business and no business (other than the
                  choosing of a Chairman) shall be transacted at any Meeting
                  unless the requisite quorum be present at the commencement of
                  the relevant business;

         (b)      the quorum at any such Meeting for passing an Extraordinary
                  Resolution other than an Extraordinary Resolution to sanction
                  a Basic Term Modification shall (subject as provided below) be
                  two or more persons present holding or representing Current
                  Issuer Notes or being Proxies or Representatives and holding
                  or representing in the aggregate more than half of the
                  aggregate principal amount of the Current Issuer Notes
                  outstanding (as defined in Clause 1.6 of the Current Issuer
                  Trust Deed) of the Current Issuer Notes of the relevant class
                  of classes (or, at any adjourned Meeting, two or more persons
                  being or representing Noteholders whatever the aggregate
                  principal amount of the Current Issuer Notes outstanding (as
                  defined in Clause 1.6 of the Current Issuer Trust Deed) of the
                  relevant class or classes so held or represented); or

         (c)      at any Meeting the business of which includes the passing of
                  an Extraordinary Resolution to sanction a Basic Terms
                  Modification,

         the quorum for passing the requisite Extraordinary Resolution shall be
         two or more persons present holding Current Issuer Notes or being
         Proxies or Representatives and holding or representing in the aggregate
         not less than three quarters in aggregate principal amount of the
         Current Issuer Notes outstanding (as defined in Clause 1.6 of the
         Current Issuer Trust Deed) of the relevant class or classes (or, at any
         adjourned Meeting, two or more persons present holding or representing
         in the aggregate not less than one quarter in aggregate principal
         amount of the Current Issuer Notes outstanding (as defined in Clause
         1.6 of the Current Issuer Trust Deed) of the relevant class or
         classes);

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<PAGE>

         Provided always that so long as at least the relevant fraction of the
         aggregate Principal Amount Outstanding of the relevant class of Current
         Issuer Notes referred to in sub-paragraph (a), (b) or (c) above, as the
         case may be, is represented by a Global Note Certificate or a single
         Individual Note Certificate, a single person being a Proxy or
         Representative of such class of Current Issuer Notes represented
         thereby shall be deemed to be two persons for the purpose of forming a
         quorum.

6.       ADJOURNMENT FOR WANT OF QUORUM

         If within 15 minutes (or such longer period not exceeding 30 minutes as
         the Chairman may decide) after the time appointed for any Meeting a
         quorum is not present for the transaction of any particular business,
         then, subject and without prejudice to the transaction of the business
         (if any) for which a quorum is present:

         (a)      if convened upon the requisition of Noteholders, the Meeting
                  shall be dissolved; and

         (b)      in any other case, the Meeting shall stand adjourned to the
                  same day in the next week (or if such day is a public holiday
                  the next succeeding Business Day) at the same time and place
                  (except in the case of a Meeting at which an Extraordinary
                  Resolution is to be proposed in which case it shall stand
                  adjourned for such period, being not less than 13 clear days
                  nor more than 42 clear days, and to such place as may be
                  appointed by the Chairman either at or subsequent to such
                  Meeting and approved by the Note Trustee).

         Provided, however, that, if within 15 minutes (or such longer period
         not exceeding 30 minutes as the Chairman may decide) after the time
         appointed for any adjourned Meeting a quorum is not present for the
         transaction of any particular business, then, subject and without
         prejudice to the transaction of the business (if any) for which a
         quorum is present, the Meeting shall be dissolved as no Meeting may be
         adjourned more than once for want of a quorum.

7.       NOTICE FOLLOWING ADJOURNMENT

         Notice of any adjourned Meeting at which an Extraordinary Resolution is
         to be submitted shall be given in the same manner as notice of an
         original Meeting as provided in paragraph 3 above, but as if 10 days
         notice (exclusive of the day on which the notice is given and the day
         on which the Meeting is to be resumed) were substituted for the 21 days
         notice as provided in paragraph 3 above, and such notice shall
         specifically state the relevant quorum requirements which will apply
         when the Meeting resumes. Subject as aforesaid it shall not be
         necessary to give any notice of an adjourned Meeting.

8.       SHOW OF HANDS

         Every question submitted to a Meeting shall be decided in the first
         instance by a show of hands and in case of equality of votes the
         Chairman shall both on a show of hands and on a poll have a casting
         vote in addition to the vote or votes (if any) to which he may be
         entitled as a Noteholder or as a Proxy or as a Representative.

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9.       CHAIRMAN'S DECLARATION

         At any Meeting, unless a poll is (before or on the declaration of the
         result of the show of hands) validly demanded by the Chairman, the
         Current Issuer, the Note Trustee or any person present holding a
         Individual Note Certificate or being a Proxy or Representative
         (whatever the principal amount of the Current Issuer Notes so held or
         represented by him) a declaration by the Chairman that a resolution has
         been carried or carried by a particular majority or lost or not carried
         by a particular majority shall be conclusive evidence of the fact
         without proof of the number or proportion of the votes recorded in
         favour of or against such resolution.

10.      POLL

         Subject to paragraph 12 (Limitation on Adjournments) below, if at such
         Meeting a poll is demanded it shall be taken in such manner and subject
         as hereinafter provided either at once or after an adjournment as the
         Chairman directs and the result of such poll shall be deemed to be the
         resolution of the Meeting at which the poll was demanded as at the date
         of the taking of the poll. The demand for a poll shall not prevent the
         continuance of the Meeting for the transaction of any business other
         than the motion on which the poll has been demanded.

11.      ADJOURNED MEETING

         The Chairman may with the consent of (and shall if directed by) any
         such Meeting adjourn the same from time to time and from place to
         place, but no business shall be transacted at any adjourned Meeting
         except business which might lawfully (but for lack of required quorum)
         have been transacted at the Meeting from which the adjournment took
         place.

12.      LIMITATION ON ADJOURNMENTS

         Any poll demanded at any adjourned Meeting on the election of a
         Chairman or on any question of adjournment shall be taken at the
         Meeting without adjournment.

13.      PARTICIPATION

         Any Proxy and/or Representative, the Note Trustee and its lawyers and
         financial advisers and any director, officer or employee of a
         corporation being a trustee of the Current Issuer Trust Deed and any
         director or officer of the Current Issuer and its lawyers and financial
         advisers, the Registrar, and any other person authorised so to do by
         the Meeting or the Note Trustee may attend and speak at any Meeting.
         Save as aforesaid, but without prejudice to the definition of
         "Principal Amount Outstanding", no person shall be entitled to attend
         and speak nor shall any person be entitled to vote at any Meeting or
         join with others in requesting the convening of such a Meeting or to
         exercise the rights conferred on the Noteholders by Clause 7
         (Proceedings, Actions and Indemnification) of the Current Issuer Trust
         Deed unless he either produces a Note Certificate or is a Proxy or a
         Representative or is the holder of an Individual Note Certificate or
         Individual Note Certificates. No person shall be entitled to vote at
         any Meeting in respect of Current Issuer Notes held by, for the benefit
         of, or on behalf of, the Current Issuer or the Borrowers. Nothing
         herein shall prevent any of the Proxies named in any Block Voting
         Instruction or Form of Proxy or any

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         Representative from being a director, officer or representative of or
         otherwise connected with the Current Issuer.

14.      VOTES

         Subject as provided in paragraph 13 (Participation) hereof at any
         Meeting:

         (a)      on a show of hands every person who is present in person and
                  is a holder of Current Issuer Notes or is a Proxy or
                  Representative shall have one vote; and

         (b)      on a poll every such person who is so present shall have one
                  vote in respect of each US$1,000 (in the case of the Dollar
                  Notes) or (pound)1,000 (in the case of the Sterling Notes) or
                  (euro)1,000 (in the case of the Euro Notes) in Principal
                  Amount Outstanding of the Current Issuer Notes in respect of
                  which he is a Proxy or Representative or in respect of which
                  he is the holder.

         Without prejudice to the obligations of the proxies named in any Block
         Voting Instruction or Form of Proxy any person entitled to more than
         one vote need not use all his votes or cast all the votes to which he
         is entitled in the same way.

15.      PROXIES NEED NOT BE NOTEHOLDERS

         The Proxies named in any Block Voting Instruction or Form of Proxy and
         representatives need not be Noteholders.

16.      DEPOSIT OF VOTES

         Each Block Voting Instruction together (if so requested by the Note
         Trustee) with proof satisfactory to the Note Trustee of its due
         execution on behalf of the Registrar and each Form of Proxy shall be
         deposited by the Registrar at such place as the Note Trustee shall
         approve not less than 24 hours before the time appointed for holding
         the Meeting or adjourned Meeting at which the Proxies named in the
         Block Voting Instruction or Form of Proxy propose to vote and in
         default the Block Voting Instruction or Form of Proxy shall not be
         treated as valid unless the Chairman decides otherwise before such
         Meeting or adjourned Meeting proceeds to business. A notarially
         certified copy of each Block Voting Instruction and Form of Proxy shall
         be deposited with the Note Trustee before the commencement of the
         Meeting or adjourned Meeting but the Note Trustee shall not thereby be
         obliged to investigate or be concerned with the validity of or the
         authority of the Proxies named in any such Block Voting Instruction or
         Form of Proxy.

17.      VALIDITY OF VOTES BY PROXIES

         Any vote by a Proxy given in accordance with the terms of a Block
         Voting Instruction or Form of Proxy shall be valid notwithstanding the
         previous revocation or amendment of the Block Voting Instruction or the
         Form of Proxy or of any of the Noteholders' instructions pursuant to
         which it was executed provided that no intimation in writing of such
         revocation or amendment shall have been received from the Noteholder by
         the Registrar by the time being 24 hours before the time appointed for
         holding the Meeting or adjourned Meeting at which the Block Voting
         Instruction or Form of Proxy is to be used. Unless revoked, any
         appointment of a Proxy under a

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         Block Voting Instruction or Form of Proxy in relation to a Meeting
         shall remain in force in relation to any resumption of such Meeting
         following an adjournment; provided, however, that no such appointment
         of a Proxy in relation to a Meeting originally convened which has been
         adjourned for want of a quorum shall remain in force in relation to
         such Meeting when it is resumed. Any person appointed to vote at such a
         Meeting must be re-appointed under a Block Voting Instruction or Form
         of Proxy to vote at the Meeting when it is resumed.

18.      RECORD DATE

         The Current Issuer may fix a record date for the purposes of any
         Meeting or any resumption thereof following its adjournment for want of
         a quorum provided that such record date is not more than 10 days prior
         to the time fixed for such Meeting or (as the case may be) its
         resumption. The person in whose name a Current Issuer Note is
         registered in the Register on the record date at close of business in
         the city in which the Registrar has its Specified Office shall be
         deemed to be the holder of such Current Issuer Note for the purposes of
         such Meeting and notwithstanding any subsequent transfer of such
         Current Issuer Note or entries in the Register; and provided that any
         Proxy appointed pursuant to a Form of Proxy shall so long as such
         appointment remains in force, be deemed for all purposes in connection
         with any Meeting or proposed Meeting specified in such appointment, to
         be the holder of the Current Issuer Note to which such appointment
         relates and the holder of the Current Issuer Note shall be deemed for
         the purposes not to be the holder.

19.      POWERS

         Subject always to the provisions of Clause 11 (Modification and Waiver)
         of the Current Issuer Trust Deed and the Current Issuer Conditions, a
         Meeting shall, in addition to the powers hereinbefore given, have the
         following powers exercisable only by Extraordinary Resolution (subject
         to the provisions relating to quorum contained in paragraphs 5 (Quorum)
         and 6 (Adjournment for want of Quorum) above) namely:

         (A)      power to sanction any compromise or arrangement proposed to be
                  made between the Current Issuer, the Note Trustee, any
                  appointee of the Note Trustee and the Noteholders or any of
                  them;

         (B)      power to sanction any abrogation, modification, compromise or
                  arrangement in respect of the rights of the Note Trustee, any
                  appointee of the Note Trustee, the Noteholders or the Current
                  Issuer against any other or others of them or against any
                  other party to any of the Current Issuer Transaction Documents
                  or against any of their property whether such rights shall
                  arise under the Current Issuer Trust Deed, any other Current
                  Issuer Transaction Document or otherwise;

         (C)      power to assent to any modification of the provisions of the
                  Current Issuer Conditions, the Current Issuer Trust Deed or
                  any other Current Issuer Transaction Document which shall be
                  proposed by the Current Issuer, the Note Trustee, or any
                  Noteholder or any other person;

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         (D)      power to give any authority or sanction which under the
                  provisions of the Current Issuer Conditions or the Current
                  Issuer Trust Deed is required to be given by Extraordinary
                  Resolution;

         (E)      power to appoint any persons (whether Noteholders or not) as a
                  committee or committees to represent the interests of the
                  Noteholders and to confer upon such committee or committees
                  any powers or discretions which the Noteholders could
                  themselves exercise by Extraordinary Resolution;

         (F)      power to approve of a person to be appointed a trustee and
                  power to remove any trustee or trustees for the time being of
                  the Current Issuer Trust Deed;

         (G)      power to discharge or exonerate the Note Trustee and/or any
                  appointee of the Note Trustee from all liability in respect of
                  any act or omission for which the Note Trustee and/or such
                  appointee may have become responsible under the Current Issuer
                  Trust Deed;

         (H)      power to remove any trustee;

         (I)      power to authorise the Note Trustee and/or any appointee of
                  the Note Trustee to concur in and execute and do all such
                  deeds, instruments, acts and things as may be necessary to
                  carry out and give effect to any Extraordinary Resolution;

         (J)      power to sanction any scheme or proposal for the exchange or
                  sale of the Current Issuer Notes for or the conversion of the
                  Current Issuer Notes into or the cancellation of the Current
                  Issuer Notes in consideration of shares, stock, notes, bonds,
                  debentures, debenture stock and/or other obligations and/or
                  notes of the Current Issuer or any other company formed or to
                  be formed, or for or into or in consideration of cash, or
                  partly for or into or in consideration of such shares, stock,
                  notes, bonds, debentures, debenture stock and/or other
                  obligations and/or notes as aforesaid and partly for or into
                  or in consideration of cash and for the appointment of some
                  person with power on behalf of the Noteholders to execute an
                  instrument of transfer of the Individual Note Certificates
                  held by them in favour of the persons with or to whom the
                  Current Issuer Notes are to be exchanged or sold respectively,

         provided, however, that:

         (i)      no Extraordinary Resolution of the Senior Noteholders or the
                  Mezzanine Noteholders or the Junior Noteholders to sanction a
                  Basic Terms Modification shall be effective for any purpose
                  unless it shall have been sanctioned by an Extraordinary
                  Resolution of (in the case of an Extraordinary Resolution of
                  the Senior Noteholders) the Mezzanine Noteholders and the
                  Junior Noteholders or (in the case of an Extraordinary
                  Resolution of the Mezzanine Noteholders) the Senior
                  Noteholders (to the extent that any Senior Notes are then
                  outstanding) and the Junior Noteholders, or (in the case of an
                  Extraordinary Resolution of the Junior Noteholders) the Senior
                  Noteholders and the Mezzanine Noteholders (to the extent that
                  any Senior Notes and/or Mezzanine Notes are then outstanding).

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         (ii)     subject as provided above in relation to an Extraordinary
                  Resolution concerning a Basic Terms Modification, no
                  Extraordinary Resolution of the Mezzanine Noteholders shall be
                  effective for any purpose while any Senior Notes remain
                  outstanding unless either (aa) the Note Trustee is of the
                  opinion that it will not be materially prejudicial to the
                  interests of any or all of the Senior Noteholders or (bb) it
                  is sanctioned by an Extraordinary Resolution of the Senior
                  Noteholders.

         (iii)    subject as provided above in relation to an Extraordinary
                  Resolution concerning a Basic Terms Modification, no
                  Extraordinary Resolution of the Junior Noteholders shall be
                  effective for any purpose while any Senior Notes or Mezzanine
                  Notes remain outstanding unless either (aa) the Note Trustee
                  is of the opinion that it will not be materially prejudicial
                  to the interests of any or all of the Senior Noteholders
                  and/or the Mezzanine Noteholders (as the case may be) or (bb)
                  it is sanctioned by an Extraordinary Resolution of the Senior
                  Noteholders and/or the Mezzanine Noteholders (as the case may
                  be).

         (iv)     for the avoidance of doubt (in the context of deciding
                  material prejudice in respect of sub-clauses (ii) and (iii)
                  above, if the Note Trustee considers in its sole opinion that
                  the Noteholders of the same class of Notes of any or all
                  series are materially prejudiced, the Note Trustee will not be
                  able to sanction the Meeting of the Noteholders of the lower
                  class itself, and will instead require an Extraordinary
                  Resolution of the Noteholders of the higher class or classes
                  to be passed by means of a Meeting in order for the
                  Extraordinary Resolution of the Noteholders of the lower class
                  to be valid and effective.

20.      EXTRAORDINARY RESOLUTION BINDS ALL NOTEHOLDERS

         Subject to the provisos to paragraph 19 (Powers), any Extraordinary
         Resolution passed at a Meeting duly convened and held in accordance
         with the Current Issuer Trust Deed shall be binding upon the
         Noteholders of all classes whether present or not present at such
         Meeting and whether or not voting and each of them shall be bound to
         give effect thereto accordingly and the passing of any such
         Extraordinary Resolution shall be conclusive evidence that the
         circumstances justify the passing thereof. Notice of the result of the
         voting on any Extraordinary Resolution duly considered by the
         Noteholders shall be given by the Current Issuer to the Noteholders in
         accordance with Condition 14 (Notice to Noteholders) within 14 days of
         such result being known provided that the non-publication of such
         notice shall not invalidate such result.

21.      SENIOR NOTES

         Notwithstanding the foregoing, the following additional provisions
         shall apply to Senior Notes:

         (i)      a single Meeting of the holders of all classes of Senior Notes
                  may be held whether or not there is a conflict of interest
                  between the holders of such series of the Senior Notes;

         (ii)     there shall be no provision for a Meeting of the holders of
                  one class only of the Senior Notes; and

                                       91
<PAGE>

         (iii)    as the Senior Notes are not all denominated in the same
                  currency, the Principal Amount Outstanding of any Senior Note
                  denominated in Dollars or Euro shall be converted into
                  Sterling at the relevant Dollar Currency Swap Rate or Euro
                  Currency Swap Rate, as the case may be.

22.      MEZZANINE NOTES

         Notwithstanding the foregoing, the following additional provisions
         shall apply to Mezzanine Notes:

         (i)      a single Meeting of the holders of all classes of Mezzanine
                  Notes may be held whether or not there is a conflict of
                  interest between the holders of such series of the Mezzanine
                  Notes;

         (ii)     there shall be no provision for a Meeting of the holders of
                  one class only of the Mezzanine Notes; and

         (iii)    as the Mezzanine Notes are not all denominated in the same
                  currency, the Principal Amount Outstanding of any Mezzanine
                  Note denominated in Dollars or Euro shall be converted into
                  Sterling at the relevant Dollar Currency Swap Rate or Euro
                  Currency Swap Rate, as the case may be.

23.      JUNIOR NOTES

         Notwithstanding the foregoing, the following additional provisions
         shall apply to Junior Notes

         (i)      a single Meeting of the holders of all classes of Junior Notes
                  may be held whether or not there is a conflict of interest
                  between the holders of such series of the Junior Notes;

         (ii)     there shall be no provision for a Meeting of the holders of
                  one class only of the Junior Notes; and

         (iii)    as the Junior Notes are not all denominated in the same
                  currency, the Principal Amount Outstanding of any Junior Note
                  denominated in Dollars or Euro shall be converted into
                  Sterling at the relevant Dollar Currency Swap Rate or Euro
                  Currency Swap Rate, as the case may be.

                                       92
<PAGE>

24.      MINUTES

         Minutes of all resolutions and proceedings at every Meeting shall be
         made and entered in books to be from time to time provided for that
         purpose by the Current Issuer and any such minutes as aforesaid if
         purporting to be signed by the Chairman of the Meeting at which such
         resolutions were passed or proceedings transacted shall be conclusive
         evidence of the matters therein contained and until the contrary is
         proved every such Meeting in respect of the proceedings of which
         minutes have been made shall be deemed to have been duly held and
         convened and all resolutions passed or proceedings transacted thereat
         to have been duly passed or transacted.

25.      FURTHER REGULATIONS

         Subject to all other provisions of the Current Issuer Trust Deed, the
         Note Trustee may without the consent of the Current Issuer or the
         Noteholders:-

         (i)      prescribe such further regulations regarding the
                  requisitioning and/or the holding of Meetings of Noteholders
                  and attendance and voting thereat as the Note Trustee may in
                  its sole discretion think fit; and

         (ii)     interpret the Current Issuer Conditions in the context of the
                  more detailed provisions set out herein.

                                       93
<PAGE>

                                 EXECUTION PAGE

THE CURRENT ISSUER                                            )
EXECUTED and DELIVERED as a DEED by                           )
GRANITE MORTGAGES 02-2 PLC                                    )
acting by                                                     )

Name:  CARL FLINN
Title: ALTERNATE DIRECTOR

Name:
Representing LDC SECURITISATION DIRECTOR NO. 1 LIMITED
Title: DIRECTOR

THE NOTE TRUSTEE                                              )
EXECUTED as a deed for and on behalf of                       )
THE BANK OF NEW YORK                                          )
                                                              )

Authorised Signatory

Name:   KATE RUSSELL
Title:  ASSISTANT VICE PRESIDENT

                                       94

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