Document:

AFC TRUST SERIES 2000-1

                                     Issuer

                                       and

                        LASALLE BANK NATIONAL ASSOCIATION

                                Indenture Trustee

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

                                    INDENTURE

                            Dated as of March 1, 2000

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

                      AFC MORTGAGE LOAN ASSET BACKED NOTES

                                  Series 2000-1

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                                TABLE OF CONTENTS

Section                                                                     Page
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ARTICLE I

    DEFINITIONS

    1.01.  Definitions........................................................3
    1.02.  Incorporation by Reference of Trust Indenture Act..................3
    1.03.  Rules of Construction..............................................3

ARTICLE II

    ORIGINAL ISSUANCE OF NOTES
    2.01.  Form...............................................................5
    2.02.  Execution, Authentication and Delivery.............................5
    2.03.  Acceptance of Mortgage Loans by Indenture Trustee..................5

ARTICLE III

    COVENANTS

    3.01.  Collection of Payments with respect to the Mortgage Loans..........6
    3.02.  Maintenance of Office or Agency....................................6
    3.03.  Money for Payments To Be Held in Trust; Paying Agent...............6
    3.04.  Existence..........................................................7
    3.05.  Payment of Principal and Interest..................................8
    3.06.  Protection of Trust Estate.........................................9
    3.07.  Opinions as to Trust Estate........................................9
    3.08.  Performance of Obligations........................................10
    3.09.  Negative Covenants................................................10
    3.10.  Annual Statement as to Compliance.................................11
    3.11.  [Reserved]........................................................11
    3.12.  Representations and Warranties Concerning the Mortgage Loans......11
    3.13.  [Reserved]........................................................12
    3.14.  Servicer as Agent and Bailee of the Indenture Trustee.............12
    3.15.  Investment Company Act............................................12
    3.16.  Issuer May Consolidate, etc.......................................12
    3.17.  Successor or Transferee...........................................14
    3.18.  No Other Business.................................................14
    3.19.  No Borrowing......................................................15
    3.20.  Guarantees, Loans, Advances and Other Liabilities.................15
    3.21.  Capital Expenditures..............................................15
    3.22.  [Reserved]........................................................15
    3.23.  Restricted Payments...............................................15

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    3.24. Notice of Events of Default.........................................15
    3.25. Further Instruments and Acts........................................15
    3.26. Grant of the Subsequent Mortgage Loans..............................15

ARTICLE IV

    THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

    4.01. The Notes...........................................................17
    4.02. Registration of and Limitations on Transfer and Exchange of
          Notes; Appointment of Note Registrar and Certificate Registrar......17
    4.03. Mutilated, Destroyed, Lost or Stolen Notes..........................18
    4.04. Persons Deemed Owners...............................................19
    4.05. Cancellation........................................................19
    4.06. Book-Entry Notes....................................................19
    4.07. Notices to Depository...............................................20
    4.08. Definitive Notes....................................................20
    4.09. Tax Treatment.......................................................21
    4.10. Satisfaction and Discharge of Indenture.............................21
    4.11. Application of Trust Money..........................................22
    4.12. Subrogation and Cooperation.........................................22
    4.13. Repayment of Monies Held by Paying Agent............................23
    4.14. Temporary Notes.....................................................23
    4.15. ERISA Deemed Representations........................................24

ARTICLE V

    DEFAULT AND REMEDIES

    5.01. Events of Default...................................................25
    5.02. Acceleration of Maturity; Rescission and Annulment..................26
    5.03. Collection of Indebtedness and Suits for Enforcement by
          Indenture Trustee...................................................26
    5.04. Remedies; Priorities................................................28
    5.05. Optional Preservation of the Trust Estate...........................30
    5.06. Limitation of Suits.................................................30
    5.07. Unconditional Rights of Noteholders To Receive Principal
          and Interest........................................................31
    5.08. Restoration of Rights and Remedies..................................31
    5.09. Rights and Remedies Cumulative......................................31
    5.10. Delay or Omission Not a Waiver......................................31
    5.11. Control by Note Insurer.............................................32
    5.12. Waiver of Past Defaults.............................................32
    5.13. Undertaking for Costs...............................................33
    5.14. Waiver of Stay or Extension Laws....................................33
    5.15. Sale of Trust Estate................................................33
    5.16. Action on Notes.....................................................35

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ARTICLE VI

                  THE INDENTURE TRUSTEE

    6.01. Duties of Indenture Trustee.........................................36
    6.02  Certain Matters Affecting the Indenture Trustee.....................38
    6.03  Indenture Trustee Not Liable for Notes or Mortgage Loans............39
    6.04  Indenture Trustee May Own Notes.....................................40
    6.05  [Reserved]..........................................................40
    6.06  Eligibility Requirements for Indenture Trustee......................40
    6.07  Resignation and Removal of the Indenture Trustee....................40
    6.08  Successor Indenture Trustee.........................................41
    6.09  Merger or Consolidation of Indenture Trustee........................42
    6.10  Appointment of Co-Indenture Trustee or Separate Indenture Trustee...42
    6.11  Tax Returns.........................................................43
    6.12  Appointment of Custodians...........................................43
    6.13  Indenture Trustee May Enforce Claims Without Possession of Notes....44
    6.14  Suits for Enforcement...............................................44
    6.15  Indenture Trustee's Fees and Expenses...............................44
    6.16  [Reserved]..........................................................44
    6.17  Representations and Warranties......................................45
    6.18  Directions to Indenture Trustee.....................................45
    6.19  The Agents..........................................................45

ARTICLE VII

    NOTEHOLDERS' LISTS AND REPORTS

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

ARTICLE VIII

    ACCOUNTS, DISTRIBUTIONS, DISBURSEMENTS AND RELEASES

    8.01. Collection of Money.................................................48
    8.02. [Reserved]..........................................................48
    8.03. Officer's Certificate...............................................48
    8.04. Termination Upon Distribution to Noteholders........................48
    8.05. Release of Trust Estate.............................................48

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    8.06.  Surrender of Notes Upon Final Payment..............................49
    8.07.  No Redemption of the Notes.........................................49

ARTICLE IX

    SUPPLEMENTAL INDENTURES

    9.01.  Supplemental Indentures Without Consent of Noteholders.............50
    9.02.  Supplemental Indentures With Consent of Noteholders................51
    9.03.  Execution of Supplemental Indentures...............................52
    9.04.  Effect of Supplemental Indenture...................................53
    9.05.  Conformity with Trust Indenture Act................................53
    9.06.  Reference in Notes to Supplemental Indentures......................53

ARTICLE X

    MISCELLANEOUS

    10.01. Compliance Certificates and Opinions, etc..........................54
    10.02. Form of Documents Delivered to Indenture Trustee...................55
    10.03. Acts of Noteholders................................................56
    10.04. Notices, etc., to Indenture Trustee, Note Insurer, Issuer
           and Rating Agencies................................................56
    10.05. Notices to Noteholders; Waiver.....................................57
    10.06. Conflict with Trust Indenture Act..................................58
    10.07. Effect of Headings.................................................58
    10.08. Successors and Assigns.............................................58
    10.09. Separability.......................................................58
    10.10. Benefits of Indenture..............................................58
    10.11. Legal Holidays.....................................................58
    10.12. GOVERNING LAW......................................................58
    10.13. Counterparts.......................................................59
    10.14. Recording of Indenture.............................................59
    10.15. Issuer Obligation..................................................59
    10.16. No Petition........................................................59
    10.17. Inspection.........................................................59
    10.18. Limitation of Liability............................................60

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EXHIBITS

Exhibit A-1 - Form of Class 1A Notes
Exhibit A-2 - Form of Class 2A Notes
Exhibit B - Custodial Agreement

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            This Indenture, dated as of March 1, 2000, between AFC Trust Series
2000-1, a Delaware business trust, as Issuer (the "Issuer") and LaSalle Bank
National Association, a national banking association, as Indenture Trustee (the
"Indenture Trustee"),

                                WITNESSETH THAT:

            Each party hereto agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Issuer's AFC
Mortgage Loan Asset Backed Notes, Series 2000-1 (the "Notes") and the Note
Insurer.

                                 GRANTING CLAUSE

            The Issuer hereby Grants to the Indenture Trustee on the Closing
Date, as trustee for the benefit of the Holders of the Notes and the Note
Insurer, all of the Issuer's right, title and interest in and to whether now
existing or hereafter created by (a) the Mortgage Loans and the proceeds thereof
and all rights under the Related Documents; (b) all funds on deposit from time
to time in the Principal and Interest Accounts allocable to the Mortgage Loans
excluding any investment income from such funds; (c) all funds on deposit from
time to time in the Note Distribution Account, the Trustee Expense Accounts, the
Pre-Funding Accounts, the Interest Coverage Accounts and the Reserve Account and
in all proceeds thereof excluding any investment income from such funds; (d) all
rights under the (i) Sale and Servicing Agreement and any Sub-Servicing
Agreements, (ii) any title, hazard and primary insurance policies with respect
to the Mortgaged Property, and (iii) all rights under the Cap Agreement, if any;
and (e) all present and future claims, demands, causes and choses in action in
respect of any or all of the foregoing and all payments on or under, and all
proceeds of every kind and nature whatsoever in respect of, any or all of the
foregoing and all payments on or under, and all proceeds of every kind and
nature whatsoever in the conversion thereof, voluntary or involuntary, into cash
or other liquid property, all cash proceeds, accounts, accounts receivable,
notes, drafts, acceptances, checks, deposit accounts, rights to payment of any
and every kind, and other forms of obligations and receivables, instruments and
other property which at any time constitute all or part of or are included in
the proceeds of any of the foregoing (collectively, the "Trust Estate" or the
"Collateral"). The Depositor's Yield and amounts received after the Cut-off Date
in the case of the Initial Mortgage Loans, or after the Subsequent Cut-off Date
in the case of the Subsequent Mortgage Loans, in respect of interest accrued on
the Mortgage Loans on or prior to the Cut-off Date or Subsequent Cut-off Date,
as the case may be, do not constitute a part of the Trust Estate or the
Collateral.

            The foregoing Grant is made in trust to secure the payment of
principal of and interest on, and any other amounts owing in respect of, the
Notes, equally and ratably without prejudice, priority or distinction, and to
secure compliance with the provisions of this Indenture, all as provided in this
Indenture.

            The Indenture Trustee, as trustee on behalf of the Holders of the
Notes, acknowledges such Grant, accepts the trust under this Indenture in
accordance with the provisions hereof and agrees to perform its duties as
Indenture Trustee as required herein. The Indenture Trustee agrees that it will
hold the Note Insurance Policy in trust and that it will hold any proceeds of
any

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claim upon the Note Insurance Policy, solely for the use and benefit of the
Noteholders in accordance with the terms hereof and of the Sale and Servicing
Agreement and the Note Insurance Policy.

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                                    ARTICLE I

                                   DEFINITIONS

      Section 1.01. Definitions. For all purposes of this Indenture, except as
otherwise expressly provided herein or unless the context otherwise requires,
capitalized terms not otherwise defined herein shall have the meanings assigned
to such terms in Article I, Definitions of the Sale and Servicing Agreement,
dated as of March 1, 2000 among the Issuer, the Indenture Trustee and Superior
Bank FSB, as seller and servicer (the "Sale and Servicing Agreement"). All other
capitalized terms used herein shall have the meanings specified herein.

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

                  "Commission" means the Securities and Exchange Commission.

                  "indenture securities" means the Notes.

                  "indenture security holder" means a Noteholder.

                  "indenture to be qualified" means this Indenture.

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

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

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

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

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

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

                  (iii) "or" is not exclusive;

                  (iv) "including" means including without limitation;

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

                  (vi) any agreement, instrument or statute defined or referred
      to herein or in any instrument or certificate delivered in connection
      herewith means such agreement, instrument or statute as from time to time
      amended, modified or supplemented and includes (in the case of agreements
      or instruments) references to all attachments thereto and instruments
      incorporated therein; references to a Person are also to its permitted
      successors and assigns.

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                                   ARTICLE II

                           ORIGINAL ISSUANCE OF NOTES

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

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

      The terms of the Notes are part of the terms of this Indenture.

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

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

      The Indenture Trustee shall upon Issuer Request authenticate and deliver
the Class 1A and Class 2A Notes for original issue in an aggregate initial
principal amount of $100,000,000 with respect to Class 1A and $139,000,000 with
respect to Class 2A.

      Each Class of Notes shall be dated the date of its authentication. The
Notes shall be issuable as registered Notes and the Notes shall be issuable in
the minimum initial Note Principal Balances of $100,000 and in integral
multiples of $1,000 in excess thereof.

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

      Section 2.03. Acceptance of Mortgage Loans by Indenture Trustee. (a) The
Indenture Trustee acknowledges receipt of, subject to the exceptions it notes
pursuant to the procedures described in the Sale and Servicing Agreement, the
documents (or certified copies thereof) referred to in Section 2.04 of the Sale
and Servicing Agreement and declares that it holds and will continue to hold
those documents and any amendments, replacements or supplements thereto and all
other assets of the Trust Estate as Indenture Trustee in trust for the use and
benefit of all present and future Holders of the Notes and the Note Insurer. The
Indenture Trustee agrees to review the Trustee's Mortgage File in accordance
with the terms of Section 2.04 of the Sale and Servicing Agreement.

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                                   ARTICLE III

                                    COVENANTS

      Section 3.01. Collection of Payments with respect to the Mortgage Loans.
Pursuant to the terms of the Sale and Servicing Agreement, the Indenture Trustee
shall establish and maintain the Note Distribution Accounts in which the
Indenture Trustee shall deposit, on the same day as it is received from the
Servicer, each remittance received by the Indenture Trustee with respect to the
Mortgage Loans. The Indenture Trustee shall make all payments of principal of
and interest on the Notes, subject to Section 3.03, as provided in Section 3.05
herein and in the Sale and Servicing Agreement from monies on deposit in the
Note Distribution Accounts.

      Section 3.02. Maintenance of Office or Agency. The Issuer will maintain an
office or agency where, subject to satisfaction of conditions set forth herein,
Notes may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent for the foregoing purposes. If at any time the
Issuer shall fail to maintain any such office or agency or shall fail to furnish
the Indenture Trustee with the address thereof, such surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Indenture
Trustee, and the Issuer hereby appoints the Indenture Trustee as its agent to
receive all such surrenders, notices and demands. The chief executive office and
principal place of business of the Issuer is located in the county of New Castle
in the state of Delaware;

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

      The Issuer will cause each Paying Agent other than the Indenture Trustee
to execute and deliver to the Indenture Trustee an instrument in which such
Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Paying Agent it hereby so agrees), subject to the provisions of
this Section 3.03, that such Paying Agent will:

                  (i) hold all sums held by it for the payment of amounts due
      with respect to the Notes in trust for the benefit of the Persons entitled
      thereto until such sums shall be paid to such Persons or otherwise
      disposed of as herein provided and pay such sums to such Persons as herein
      provided;

                  (ii) give the Indenture Trustee and the Note Insurer notice of
      any default by the Issuer of which it has actual knowledge in the making
      of any payment required to be made with respect to the Notes;

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

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

                  (v) comply with all requirements of the Code with respect to
      the withholding from any payments made by it on any Notes of any
      applicable withholding taxes imposed thereon and with respect to any
      applicable reporting requirements in connection therewith; and

                  (vi) not commence a case or proceeding under any applicable
      federal or state bankruptcy, insolvency, reorganization or other similar
      law against the Issuer in connection with this Indenture.

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

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

      Section 3.04. Existence. The Issuer will keep in full effect its
existence, rights and franchises as a business trust under the laws of its
jurisdiction of organization and will obtain and preserve its qualification to
do business in each jurisdiction in which such qualification is or shall

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be necessary to protect the validity and enforceability of this Indenture, the
Notes, the Mortgage Loans and each other instrument or agreement included in the
Trust Estate.

      Section 3.05. Payment of Principal and Interest. (a) The Issuer will duly
and punctually pay, but only to the extent of the Amount Available for each
Group on each Payment Date, the principal of and interest on the Notes in
accordance with the terms of such Notes, this Indenture and the Sale and
Servicing Agreement. Without limiting the foregoing, the Issuer will cause to be
distributed all amounts on deposit in the related Note Distribution Account on a
Payment Date deposited therein pursuant to the Sale and Servicing Agreement for
the benefit of the related Classes of Notes, to the applicable Noteholders.
Amounts properly withheld under the Code from a payment to any Noteholder of
interest and/or principal shall be considered as having been paid by the Issuer
to such Noteholder for all purposes of this Indenture.

      (b) Each distribution with respect to a Book-Entry Note shall be paid to
the Depository, as Holder thereof, and the Depository shall be responsible for
crediting the amount of such distribution to the accounts of its Depository
Participants in accordance with its normal procedures. Each Depository
Participant shall be responsible for disbursing such distribution to the Note
Owners that it represents and to each indirect participating brokerage firm (a
"brokerage firm" or "indirect participating firm") for which it acts as agent.
Each brokerage firm shall be responsible for disbursing funds to the Note Owners
that it represents. None of the Indenture Trustee, the Note Registrar, the
Seller or the Servicer shall have any responsibility therefor except as
otherwise provided by this Agreement or applicable law.

      (c) [Reserved].

      (d) Any installment of interest or principal, if any, payable on any Note
that is punctually paid or duly provided for by the Issuer on the applicable
Payment Date shall, if such Holder shall have so requested at least five
Business Days prior to the related Record Date and such Holder holds Notes of an
aggregate initial Note Principal Balance of at least $5,000,000, be paid to each
Holder of record on the preceding Record Date, by wire transfer to an account
specified in writing by such Holder reasonably satisfactory to the Indenture
Trustee as of the preceding Record Date or in all other cases or if no such
instructions have been delivered to the Indenture Trustee, by check to such
Noteholder mailed to such Holder's address as it appears in the Note Register in
the amount required to be distributed to such Holder on such Payment Date
pursuant to such Holder's Notes; provided, however, that the Indenture Trustee
shall not pay to such Holders any amount required to be withheld from a payment
to such Holder by the Code.

      (e) The principal of each Note shall be due and payable in full on the
Final Scheduled Payment Date for such Note as provided in the forms of Note set
forth in Exhibits A-1 and A-2. All principal payments on the Notes shall be made
to the Noteholders entitled thereto in accordance with the Percentage Interests
represented by such Notes. Upon notice to the Indenture Trustee by the Issuer,
the Indenture Trustee shall notify the Person in whose name a Note is registered
at the close of business on the Record Date preceding the Final Scheduled
Payment Date or other final Payment Date. Such notice shall to the extent
practicable be mailed no later than five Business Days prior to such Final
Scheduled Payment Date or other final Payment Date and shall specify that
payment of the principal amount and any interest due with respect to such Note
at the

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Final Scheduled Payment Date or other final Payment Date will be payable only
upon presentation and surrender of such Note and shall specify the place where
such Note may be presented and surrendered for such final payment. No interest
shall accrue on the Notes on or after the Final Scheduled Payment Date or any
such other final Payment Date.

      Section 3.06. Protection of Trust Estate. (a) The Issuer will from time to
time prepare, execute and deliver all such supplements and amendments hereto and
all such financing statements, continuation statements, instruments of further
assurance and other instruments, and will take such other action necessary or
advisable to:

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

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

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

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

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

      The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to sign any financing statement, continuation statement or
other instrument required to be signed pursuant to this Section 3.06 upon the
Issuer's preparation thereof and delivery to the Indenture Trustee.

      Section 3.07. Opinions as to Trust Estate. (a) On the Closing Date, the
Issuer shall furnish to the Indenture Trustee, the Note Insurer and the Owner
Trustee an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the recording and filing of
this Indenture, any indentures supplemental hereto, and any other requisite
documents, and with respect to the execution and filing of any financing
statements and continuation statements, as are necessary to perfect and make
effective the lien and first priority security interest in the Collateral and
reciting the details of such action, or stating that, in the opinion of such
counsel, no such action is necessary to make such lien and first priority
security interest effective.

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      (b) On or before April 30 in each calendar year, beginning in April 2000,
the Issuer shall furnish to the Indenture Trustee and the Note Insurer an
Opinion of Counsel at the expense of the Issuer either stating that, in the
opinion of such counsel, such action has been taken with respect to the
recording, filing, re-recording and refiling of this Indenture, any indentures
supplemental hereto and any other requisite documents and with respect to the
execution and filing of any financing statements and continuation statements as
is necessary to maintain the lien and first priority security interest in the
Collateral and reciting the details of such action or stating that in the
opinion of such counsel no such action is necessary to maintain such lien and
security interest. Such Opinion of Counsel shall also describe the recording,
filing, re-recording and refiling of this Indenture, any indentures supplemental
hereto and any other requisite documents and the execution and filing of any
financing statements and continuation statements that will, in the opinion of
such counsel, be required to maintain the lien and security interest in the
Collateral until April 30 in the following calendar year.

      Section 3.08. Performance of Obligations. (a) The Issuer will punctually
perform and observe all of its obligations and agreements contained in this
Indenture, the Basic Documents and in the instruments and agreements included in
the Trust Estate.

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

      (c) The Issuer will not take any action or permit any action to be taken
by others which would release any Person from any of such Person's covenants or
obligations under any of the documents relating to the Mortgage Loans or under
any instrument included in the Trust Estate, or which would result in the
amendment, hypothecation, subordination, termination or discharge of, or impair
the validity or effectiveness of, any of the documents relating to the Mortgage
Loans or any such instrument, except such actions as the Servicer is expressly
permitted to take in the Sale and Servicing Agreement. The Indenture Trustee, as
pledgee of the Mortgage Loans and an assignee of the Issuer's rights under the
Sale and Servicing Agreement, shall be entitled to exercise all of the rights of
the Issuer to direct the actions of the Servicer pursuant to the Sale and
Servicing Agreement. So long as any Event of Servicer Default shall be
continuing under the Sale and Servicing Agreement, the Indenture Trustee, with
the consent of the Note Insurer, may exercise the remedies set forth in Section
10.01 of the Sale and Servicing Agreement. Unless granted or permitted by the
Note Insurer or the Holders of the Notes to the extent provided above, the
Issuer may not waive any such Event of Servicer Default or terminate the rights
and powers of the Servicer under the Sale and Servicing Agreement.

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

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

                                       10
<PAGE>

                  (i) except as expressly permitted by this Indenture, sell,
      transfer, exchange or otherwise dispose of the Trust Estate, except as
      expressly permitted by the Indenture or the Sale and Servicing Agreement;

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

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

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

                  (v) dissolve or liquidate, in whole or in part, unless the
      Notes are paid in full.

      Section 3.10. Annual Statement as to Compliance. The Issuer will deliver
to the Indenture Trustee and the Note Insurer, by April 30 in each calendar year
(commencing with the year 2000), an Officer's Certificate stating, as to the
Authorized Officer signing such Officer's Certificate, that:

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

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

      Section 3.11. [Reserved].

      Section 3.12. Representations and Warranties Concerning the Mortgage
Loans. The Indenture Trustee, as pledgee of the Mortgage Loans, has the benefit
of the representations and

                                       11
<PAGE>

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

      Section 3.13. [Reserved].

      Section 3.14. Servicer as Agent and Bailee of the Indenture Trustee.
Solely for purposes of perfection under Section 9-305 of the Uniform Commercial
Code or other similar applicable law, rule or regulation of the state in which
such property is held by the Servicer, the Issuer and the Indenture Trustee
hereby acknowledge that the Servicer is acting as agent and bailee of the
Indenture Trustee in holding amounts on deposit in the Principal and Interest
Accounts, as well as its agent and bailee in holding any Related Documents
released to the Servicer, and any other items constituting a part of the Trust
Estate which from time to time come into the possession of the Servicer. It is
intended that, by the Servicer's execution of the Sale and Servicing Agreement,
the Indenture Trustee, as a secured party of the Mortgage Loans, will be deemed
to have possession of such Related Documents, such documents, monies and such
other items for purposes of Section 9-305 of the Uniform Commercial Code of the
state in which such property is held by the Servicer.

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

      Section 3.16. Issuer May Consolidate, etc. (a) The Issuer shall not
consolidate or merge with or into any other Person, unless:

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

                                       12
<PAGE>

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

                  (iii) the Rating Agencies shall have confirmed in writing that
      such transaction shall not cause the downgrade, withdrawal, suspension or
      qualification of the rating of the Notes or caused the Notes to be
      considered by either Rating Agency to be below investment grade without
      taking into consideration the Note Insurance Policy;

                  (iv) the Issuer and the Note Insurer shall have received an
      Opinion of Counsel (and shall have delivered a copy thereof to the
      Indenture Trustee) to the effect that such transaction will not (A) result
      in a "substantial modification" of the Notes under Treasury Regulation
      section 1.1001-3, or adversely affect the status of the Notes as
      indebtedness for federal income tax purposes, or (B) if 100% of the
      Certificates are not owned by Superior Bank FSB, cause the Trust to be
      subject to an entity level tax for federal income tax purposes;

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

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

                  (vii) the Note Insurer, so long as no default by the Note
      Insurer exists, shall have given its prior written consent.

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

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

                                       13
<PAGE>

      of Persons, then one specified Person) shall make all filings with the
      Commission (and any other appropriate Person) required by the Exchange Act
      in connection with the Notes;

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

                  (iii) the Rating Agencies shall have confirmed in writing that
      such transaction shall not cause the downgrade, withdrawal, suspension or
      qualification of the rating of the Notes without taking into account the
      Note Insurance Policy;

                  (iv) the Issuer and the Note Insurer shall have received an
      Opinion of Counsel (and shall have delivered a copy thereof to the
      Indenture Trustee) to the effect that such transaction will not (A) result
      in a "substantial modification" of the Notes under Treasury Regulation
      section 1.1001-3, or adversely affect the status of the Notes as
      indebtedness for federal income tax purposes, and (B) if 100% of the
      Certificates are not owned by Superior Bank FSB, cause the Trust to be
      subject to an entity level tax for federal income tax purposes;

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

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

                  (vii) the Note Insurer, so long as no default by the Note
      Insurer exists, shall have given its prior written consent.

      Section 3.17. Successor or Transferee. (a) Upon any consolidation or
merger of the Issuer in accordance with Section 3.16(a), the Person formed by or
surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, the
Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

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

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

                                       14
<PAGE>

      Section 3.19. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Notes and amounts due to the Note Insurer under this
Indenture and the Insurance Agreement.

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

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

      Section 3.22. [Reserved]

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

      Section 3.24. Notice of Events of Default. The Issuer, upon actual
knowledge thereof, shall give the Indenture Trustee, the Note Insurer and the
Rating Agencies prompt written notice of each Event of Default hereunder and
under the Trust Agreement.

      Section 3.25. Further Instruments and Acts. Upon written request of the
Indenture Trustee or the Note Insurer, the Issuer will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture.

      Section 3.26. Grant of the Subsequent Mortgage Loans. In consideration of
the delivery on each Subsequent Transfer Date to or upon the order of the Issuer
of all or a portion of the amount on deposit in the related Pre-Funding Account,
the Issuer shall, to the extent of the availability thereof, on such Subsequent
Transfer Date during the Pre-Funding Period Grant to the Indenture Trustee all
of its rights, title and interest in the Subsequent Mortgage Loans and

                                       15
<PAGE>

simultaneously with the Grant of the Subsequent Mortgage Loans the Issuer will
cause the related Trustee's Mortgage File to be delivered to the Indenture
Trustee.

                                       16
<PAGE>

                                   ARTICLE IV

               THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

      Section 4.01. The Notes. The Notes shall be registered in the name of a
nominee designated by the Depository. Beneficial Owners will hold interests in
the Notes through the book- entry facilities of the Depository in minimum
initial Note Principal Balances of $100,000 and integral multiples of $1,000 in
excess thereof.

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

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

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

      Each of the Notes is intended to be a "security" governed by Article 8 of
the Uniform Commercial Code as in effect in the State of New York and any other
applicable jurisdiction, to the extent that any of such laws may be applicable.

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

      Subject to the restrictions and limitations set forth below, upon
surrender for registration of transfer of any Note at the Corporate Trust
Office, the Issuer shall execute and the Note Registrar

                                       17
<PAGE>

shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Notes in authorized initial Note Principal Balances
evidencing the same aggregate Percentage Interests.

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

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

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

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

                                       18
<PAGE>

entitled to recover upon the security or indemnity provided therefor to the
extent of any loss, damage, cost or expense incurred by the Issuer or the
Indenture Trustee in connection therewith.

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

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

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

      Section 4.04. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Note Insurer, the
Indenture Trustee and any agent of the Issuer, the Note Insurer or the Indenture
Trustee may treat the Person in whose name any Note is registered (as of the day
of determination) as the owner of such Note for the purpose of receiving
payments of principal of and interest, if any, on such Note and for all other
purposes whatsoever, whether or not such Note be overdue, and neither the
Issuer, the Note Insurer, the Indenture Trustee nor any agent of the Issuer, the
Note Insurer or the Indenture Trustee shall be affected by notice to the
contrary.

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

      Section 4.06. Book-Entry Notes. The Notes, upon original issuance, will be
issued in the form of typewritten Notes representing the Book-Entry Notes, to be
delivered to The Depository Trust Company, the initial Depository, by, or on
behalf of, the Issuer. The Notes shall initially be registered on the Note
Register in the name of Cede & Co., the nominee of the initial Depository, and
no Beneficial Owner will receive a Definitive Note representing such Beneficial
Owner's interest in such Note, except as provided in Section 4.08. With respect
to such Notes,

                                       19
<PAGE>

unless and until definitive, fully registered Notes (the "Definitive Notes")
have been issued to Beneficial Owners pursuant to Section 4.08:

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

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

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

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

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

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

      Section 4.08. Definitive Notes. If (i) the Indenture Trustee determines
that the Depository is no longer willing or able to properly discharge its
responsibilities with respect to the Notes and the Indenture Trustee is unable
to locate a qualified successor, (ii) the Indenture Trustee elects to terminate
the book-entry system through the Depository or (iii) after the occurrence of an
Event of Default, Beneficial Owners of Notes representing beneficial interests
aggregating at least a majority of the Note Principal Balances of the Notes
advise the Depository in writing that the continuation of a book-entry system
through the Depository is no longer in the best interests of the Beneficial
Owners, then the Depository shall notify all Beneficial Owners and the Indenture
Trustee of the occurrence of any such event and of the availability of
Definitive Notes to Beneficial Owners requesting the same. Upon surrender to the
Indenture Trustee of the typewritten Notes representing the Book-Entry Notes by
the Depository, accompanied by registration instructions, the Issuer shall

                                       20
<PAGE>

execute and the Indenture Trustee shall authenticate the Definitive Notes in
accordance with the instructions of the Depository. None of the Issuer, the Note
Registrar or the Indenture Trustee shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Notes, the
Indenture Trustee shall recognize the Holders of the Definitive Notes as
Noteholders.

      Section 4.09. Tax Treatment. The Issuer has entered into this Indenture,
and the Notes will be issued, with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Notes will qualify
as indebtedness. The Issuer and the Indenture Trustee, by entering into this
Indenture, and each Noteholder, by its acceptance of its Note (and each
Beneficial Owner by its acceptance of an interest in the applicable Book-Entry
Note), agree to treat the Notes for federal, state and local income, single
business and franchise tax purposes as indebtedness.

      Section 4.10. Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders (and the Note
Insurer, as subrogee of the Noteholders) to receive payments of principal
thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09, 3.16, 3.18,
3.19 and 4.09, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the obligations of the Indenture Trustee under
Section 4.11) and (vi) the rights of Noteholders (and the Note Insurer, as
subrogee of the Noteholders) as beneficiaries hereof with respect to the
property so deposited with the Indenture Trustee payable to all or any of them,
and the Indenture Trustee, on demand of and at the expense of the Issuer, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to the Notes and shall release and deliver the Collateral
to or upon the order of the Issuer, when

            (A) either

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

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

                  a.    have become due and payable,

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

                  c.    have been called for early redemption pursuant to
                        Section 11.01 of the Sale and Servicing Agreement,

                                       21
<PAGE>

      and the Issuer, in the case of a. or b. above, has irrevocably deposited
      or caused to be irrevocably deposited with the Indenture Trustee cash or
      direct obligations of or obligations guaranteed by the United States of
      America (which will mature prior to the date such amounts are payable), in
      trust for such purpose, in an amount sufficient to pay and discharge the
      entire indebtedness on such Notes then outstanding not theretofore
      delivered to the Indenture Trustee for cancellation when due on the Final
      Scheduled Payment Date or other final Payment Date, and the Issuer has
      delivered to the Indenture Trustee and the Note Insurer a verification
      report (complying with the applicable requirements of Section 10.01) from
      a nationally recognized Independent accounting firm certifying that the
      amounts deposited with the Indenture Trustee are sufficient to pay and
      discharge the entire indebtedness of such Notes, or, in the case of c.
      above all provisions of Section 11.01 of the Sale and Servicing Agreement
      have been satisfied;

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

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

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

      Section 4.12. Subrogation and Cooperation. The Issuer and the Indenture
Trustee acknowledge that (i) to the extent the Note Insurer makes payments under
the Note Insurance Policy on account of principal of or interest on the Notes,
the Note Insurer will be fully subrogated to the rights of such Holders to
receive such principal and interest from the Issuer, and (ii) the Note Insurer
shall be paid such principal and interest but only from the sources and in the
manner provided herein and in the Sale and Servicing Agreement for the payment
of such principal and interest.

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

                                       22
<PAGE>

                  (i) institute any suit in equity, action at law or other
      judicial or administrative proceeding (each, a "Proceeding") for the
      collection of all amounts then payable on the Notes, or under this
      Indenture in respect to the Notes and all amounts payable under the
      Insurance Agreement, enforce any judgment obtained and collect from the
      Issuer monies adjudged due;

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

                  (iii) file or record all Assignments of Mortgage that have not
      previously been recorded;

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

                  (v) exercise any remedies of a secured party under the UCC and
      take any other appropriate action to protect and enforce the rights and
      remedies of the Note Insurer hereunder;

provided, however, action shall be taken pursuant to this Section 4.12 by the
Indenture Trustee to preserve the Note Insurer's rights or interest under this
Agreement or the Insurance Agreement only to the extent such action is available
to the Noteholders or the Note Insurer under other provisions of this Indenture.

      Notwithstanding any provision of this Indenture to the contrary, so long
as no default by the Note Insurer exists, the Note Insurer shall at all times be
treated as if it were the exclusive owner of all Notes Outstanding for the
purposes of all approvals, consents, waivers and the institution of any action
and the direction of all remedies, and the Indenture Trustee shall act in
accordance with the directions of the Note Insurer so long as it is indemnified
therefor to its reasonable satisfaction.

      Section 4.13. Repayment of Monies Held by Paying Agent. In connection with
the satisfaction and discharge of this Indenture with respect to the Notes, all
monies then held by any Person other than the Indenture Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according to
Section 3.05 and thereupon such Paying Agent shall be released from all further
liability with respect to such monies.

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

                                       23
<PAGE>

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

      Section 4.15. ERISA Deemed Representations. By acquiring a Note, each
purchaser will be deemed to represent that either (1) it is not acquiring the
Note with the assets of a Plan; or (2) the acquisition and holding of the Note
will not give rise to a nonexempt prohibited transaction under Section 406 of
ERISA or Section 4975 of the Code.

                                       24
<PAGE>

                                    ARTICLE V

                              DEFAULT AND REMEDIES

      Section 5.01. Events of Default. Any one of the following events (whatever
the reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body) shall be an "Event of Default":

                  (i) a default in the payment of the Class A Interest
Remittance Amount or the Class A Principal Remittance Amount with respect to a
Payment Date on such Payment Date and such default continues for a period of
five days (for purposes of this clause, a payment on the Notes funded by the
Note Insurer shall be deemed to be a payment made by the Issuer); or

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

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

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

                                       25
<PAGE>

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

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

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

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

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

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

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

      Section 5.03. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee. (a) The Issuer covenants that if (i) default is made in the
payment of the Class A Interest Remittance Amount on any Note when the same
becomes due and payable, and such default continues for a period of five days,
or (ii) default is made in the payment of the Class A Principal Remittance
Amount of or any installment of the Class A Principal Remittance Amount on any
Note when the same becomes due and payable, the Issuer shall, upon demand of the
Indenture Trustee, pay to the Indenture Trustee, for the benefit of the Holders
of Notes and the Note Insurer, the whole amount then due and payable on the
Notes in respect of principal and interest, with interest at the Note Interest
Rate upon the overdue principal, and in addition thereto such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel.

                                       26
<PAGE>

      (b) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee, in its own name and as trustee of an express
trust, subject to the provisions of Section 10.16 hereof may institute a
Proceeding for the collection of the sums so due and unpaid, and may prosecute
such Proceeding to judgment or final decree, and may enforce the same against
the Issuer or other obligor upon the Notes and collect in the manner provided by
law out of the property of the Issuer or other obligor the Notes, wherever
situated, the monies adjudged or decreed to be payable.

      (c) If an Event of Default occurs and is continuing, the Indenture
Trustee, subject to the provisions of Section 10.16 hereof may, as more
particularly provided in Section 5.04 hereof, in its discretion, proceed to
protect and enforce its rights and the rights of the Noteholders and the Note
Insurer, by such appropriate Proceedings as the Indenture Trustee shall deem
most effective to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy or
legal or equitable right vested in the Indenture Trustee by this Indenture or by
law.

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

                  (i) to file and prove a claim or claims for the whole amount
      of principal and interest owing and unpaid in respect of the Notes and to
      file such other papers or documents as may be necessary or advisable in
      order to have the claims of the Indenture Trustee (including any claim for
      reasonable compensation to the Indenture Trustee and each predecessor
      Indenture Trustee, and their respective agents, attorneys and counsel, and
      for reimbursement of all expenses and liabilities incurred, and all
      advances made, by the Indenture Trustee and each predecessor Indenture
      Trustee, except as a result of negligence or bad faith), the Note Insurer
      and of the Noteholders allowed in such Proceedings;

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

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

                                       27
<PAGE>

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

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

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

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

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

      Section 5.04. Remedies; Priorities. (a) If an Event of Default shall have
occurred and be continuing and if an acceleration has been declared and not
rescinded pursuant to Section 5.02 hereof, the Indenture Trustee subject to the
provisions of Section 10.16 hereof shall, do one or more of the following
(subject to Section 5.05 hereof):

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

                                       28
<PAGE>

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

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

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

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee obtains the consent of the Holders of 100% of the aggregate
Note Principal Balance and, unless a Note Insurer default exists, the Note
Insurer, (B) the proceeds of such sale or liquidation distributable to the
Holders of the Notes are sufficient to discharge in full all amounts then due
and unpaid upon the Notes for principal and interest and to reimburse the Note
Insurer for any amounts paid under the Note Insurance Policy and any other
amounts due to the Note Insurer under the Sale and Servicing Agreement or (C)
the Indenture Trustee determines that the Mortgage Loans will not continue to
provide sufficient funds for the payment of principal of and interest on the
Notes as they would have become due if the Notes had not been declared due and
payable, and the Indenture Trustee obtains the consent of the Note Insurer and
the Holders of a majority of the aggregate Note Principal Balance. In
determining such sufficiency or insufficiency with respect to clause (B) and
(C), the Indenture Trustee may, but need not, obtain and rely upon an opinion of
an Independent investment banking or accounting firm of national reputation as
to the feasibility of such proposed action and as to the sufficiency of the
Trust Estate for such purpose. Notwithstanding the foregoing, so long as an
Event of Servicer Default has not occurred, any Sale of the Trust Estate shall
be made subject to the continued servicing of the Mortgage Loans by the Servicer
as provided in the Sale and Servicing Agreement.

      (b) Notwithstanding the priorities of payment provisions of Section 6.06
of the Sale and Servicing Agreement, if the Indenture Trustee collects any money
or property pursuant to this Article V, it shall pay out the money or property
in the following order:

            FIRST: to the Indenture Trustee for amounts due under Section 6.03
            of the Sale and Servicing Agreement hereof;

            SECOND: to the Noteholders for amounts due and unpaid on the Notes
            with respect to interest, ratably, without preference or priority of
            any kind, according to the amounts due and payable on the Notes for
            interest (including Class A Interest Remittance Amount) from amounts
            available in the Trust Estate for the Noteholders;

            THIRD: to Noteholders for amounts due and unpaid on the Notes with
            respect to principal (including, but not limited to, any Class A
            Principal Remittance Amount), from amounts available in the Trust
            Estate for such Noteholders, and to each Noteholder ratably, without
            preference or priority of any kind, according

                                       29
<PAGE>

            to the amounts due and payable on the Notes for principal, until the
            Note Principal Balance is reduced to zero;

            FOURTH: to the payment of the remainder, if any to the Certificate
            Paying Agent on behalf of the Issuer or to any other person legally
            entitled thereto.

      The Indenture Trustee may fix a record date and payment date for any
payment to Noteholders pursuant to this Section 5.04. With respect to any
acceleration, the first payment date after the acceleration shall be the first
Payment Date after the acceleration. At least 15 days before such record date,
the Indenture Trustee shall mail to each Noteholder and the Note Insurer a
notice that states the record date, the payment date and the amount to be paid.

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

      Section 5.06. Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless and subject to the provisions of Section 10.16 hereof:

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

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

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

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

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

                                       30
<PAGE>

                  (vi) such Holder or Holders have obtained the written consent
      of the Note Insurer, unless a Note Insurer default exists.

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

      Subject to the last paragraph of Section 4.12 herein, in the event the
Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Notes, each representing less
than a majority of the Note Principal Balances of the Notes, the Indenture
Trustee in its sole discretion may determine what action, if any, shall be
taken, notwithstanding any other provisions of this Indenture.

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

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

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

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

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<PAGE>

      Section 5.11. Control by Note Insurer. So long as no default by the Note
Insurer exists, the Note Insurer shall have the right (subject to the provisions
of Section 5.06) to direct the time, method and place of conducting any
Proceeding for any remedy available to the Indenture Trustee with respect to the
Notes or exercising any trust or power conferred on the Indenture Trustee;
provided that:

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

                  (ii) any direction to the Indenture Trustee to sell or
      liquidate the Trust Estate shall be by Holders of Notes representing not
      less than 100% of the Note Principal Balances of Notes;

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

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

In the event that a default by the Note Insurer exists, the Majority Noteholders
of each Class shall have the foregoing rights. Notwithstanding the rights of
Noteholders set forth in this Section, subject to Section 6.01, the Indenture
Trustee need not take any action that it determines might involve it in
liability or might materially adversely affect the rights of any Noteholders not
consenting to such action.

      Section 5.12. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02 hereof,
the Note Insurer, or if a default by the Note Insurer exists, the Holders of
Notes of not less than a majority of the Note Principal Balances of the Notes
may waive any past Event of Default and its consequences except an Event of
Default (a) with respect to payment of principal of or interest on any of the
Notes or (b) in respect of a covenant or provision hereof which cannot be
modified or amended without the consent of the Holder of each Note or (c) the
waiver of which would materially and adversely affect the interests of the
Indenture Trustee or, the Note Insurer or modify the Note Insurer's obligations
under the Note Insurance Policy. In the case of any such waiver, the Issuer, the
Indenture Trustee and the Holders of the Notes shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend to
any subsequent or other Event of Default or impair any right consequent thereto.

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

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<PAGE>

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

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

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

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

            (1) the Note Insurer or if a Note Insurer default exists, the
Holders of all Notes, consent to or direct the Indenture Trustee to make, such
Sale, or

            (2) the proceeds of such Sale would not be less than the entire
amount which would be payable to the Noteholders under the Notes and the Note
Insurer under the Sale and Servicing Agreement on the Payment Date next
succeeding the date of such Sale; or

            (3) the Indenture Trustee determines, that the conditions for
retention of the Trust Estate set forth in Section 5.05 hereof cannot be
satisfied (in making any such determination, the Indenture Trustee may rely upon
an opinion of an Independent investment

                                       33
<PAGE>

banking firm obtained and delivered as provided in Section 5.05 hereof), and the
Note Insurer or if a Note Insurer default exists, the Holders of Notes
representing at least 66-2/3% of the Note Principal Balances of the Notes
consent to such Sale.

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

      (c) Unless the Note Insurer or if a Note Insurer default exists, the
Holders representing at least 66-2/3% of the Principal Balances of the Notes
have otherwise consented or directed the Indenture Trustee, at any public Sale
of all or any portion of the Trust Estate at which a minimum bid equal to or
greater than the amount described in paragraph (2) of subsection (b) of this
Section 5.15 has not been established by the Indenture Trustee and no Person
bids an amount equal to or greater than such amount, the Indenture Trustee, as
trustee for the benefit of the Holders of the Notes, shall bid an amount at
least $1.00 more than the highest other bid.

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

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

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

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

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

                                       34
<PAGE>

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

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

      Section 5.17. Performance and Enforcement of Certain Obligations. The
Indenture Trustee, as pledgee of the Mortgage Loans, may, and at the direction
(which direction shall be in writing or by telephone (confirmed in writing
promptly thereafter)) of the Note Insurer or, if a Note Insurer default exists,
the Holders of 66-2/3% of the Note Principal Balances of the Notes, shall
exercise all rights, remedies, powers, privileges and claims of the Issuer
against the Seller or the Servicer under or in connection with the Sale and
Servicing Agreement, including the right or power to take any action to compel
or secure performance or observance by the Seller or the Servicer, as the case
may be, of each of their obligations to the Issuer thereunder and to give any
consent, request, notice, direction, approval, extension or waiver under the
Sale and Servicing Agreement, and any right of the Issuer to take such action
shall not be suspended.

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<PAGE>

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

      Section 6.01. Duties of Indenture Trustee.

      The Indenture Trustee, prior to the occurrence of an Event of Default and
after the curing of all Events of Default which may have occurred, undertakes to
perform such duties and only such duties as are specifically set forth in this
Indenture and the Sale and Servicing Agreement. If an Event of Default of which
a Responsible Officer of the Indenture Trustee shall have actual knowledge has
occurred and has not been cured or waived, the Indenture Trustee shall, except
in those cases in which it is required by the terms of this Indenture or the
Sale and Servicing Agreement to follow the direction of the Note Insurer or the
Rating Agencies, exercise such of the rights and powers vested in it by this
Indenture and the Sale and Servicing Agreement, 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.

      The Indenture Trustee, upon receipt of all resolutions, notes, statements,
opinions, reports, documents, orders or other instruments furnished to the
Indenture Trustee which are specifically required to be furnished pursuant to
any provision of this Indenture and the Sale and Servicing Agreement, shall
examine them to determine whether they conform to the requirements of this
Indenture and the Sale and Servicing Agreement, provided, however that the
Indenture Trustee shall not be responsible for the accuracy or content of any
resolution, certificate, statement, opinion, report, document, order or other
instrument furnished by the Issuer, the Servicer or the Seller. If any such
instrument is found not to conform to the requirements of this Indenture or the
Sale and Servicing Agreement, the Indenture Trustee shall notify the Note
Insurer and request written instructions as to the action the Note Insurer deems
appropriate to have the instrument corrected, and if the instrument is not so
corrected, the Indenture Trustee will provide notice thereof to the Note Insurer
who shall then direct the Indenture Trustee as to the action, if any, to be
taken.

      No provision of this Agreement shall be construed to relieve the Indenture
Trustee from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct; provided, however, that:

                        (i) Prior to the occurrence of an Event of Default, and
                  after the curing of all such Events of Default which may have
                  occurred, the duties and obligations of the Indenture Trustee
                  shall be determined solely by the express provisions of this
                  Indenture and the Sale and Servicing Agreement, the Indenture
                  Trustee shall not be liable except for the performance of such
                  duties and obligations as are specifically set forth in this
                  Indenture and the Sale and Servicing Agreement, no implied
                  covenants or obligations shall be read into this Indenture and
                  the Sale and Servicing Agreement against the Indenture Trustee
                  and, in the absence of bad faith on the part of the Indenture
                  Trustee, the Indenture Trustee may conclusively rely, as to
                  the truth of the statements and the correctness of the
                  opinions expressed therein, upon any resolutions,
                  certificates,

                                       36
<PAGE>

                  statements or opinions, reports, documents, orders or
                  instruments furnished to the Indenture Trustee and conforming
                  to the requirements of this Agreement;

                        (ii) The Indenture Trustee shall not be personally
                  liable for an error of judgment made in good faith by a
                  Responsible Officer or other officers of the Indenture
                  Trustee, unless it shall be proved that the Indenture Trustee
                  was negligent in ascertaining the pertinent facts;

                        (iii) The Indenture Trustee shall not be personally
                  liable with respect to any action taken, suffered or omitted
                  to be taken by it in good faith in accordance with this
                  Indenture and the Sale and Servicing Agreement or at the
                  direction of the Note Insurer, the Class 1A Majority
                  Noteholders and the Class 2A Majority Noteholders or any of
                  them relating to the time, method and place of conducting any
                  proceeding for any remedy available to the Indenture Trustee,
                  or exercising or omitting to exercise any trust or power
                  conferred upon the Indenture Trustee, under this Indenture and
                  the Sale and Servicing Agreement;

                        (iv) The Indenture Trustee shall not be required to take
                  notice or be deemed to have notice or knowledge of any default
                  or Event of Default (except a default or Event of Default set
                  forth under Section 5.01(i) or (ii) of this Indenture) unless
                  a Responsible Officer of the Indenture Trustee shall have
                  actual knowledge thereof or have received written notice
                  thereof. In the absence of receipt of such notice, the
                  Indenture Trustee may conclusively assume that there is no
                  default or Event of Default;

                        (v) The Indenture Trustee shall not be required to
                  expend or risk its own funds or otherwise incur financial
                  liability for the performance of any of its duties hereunder
                  or the exercise of any of its rights or powers if there is
                  reasonable ground for believing that the repayment of such
                  funds or adequate indemnity against such risk or liability is
                  not reasonably assured to it and none of the provisions
                  contained in this Indenture and the Sale and Servicing
                  Agreement shall in any event require the Indenture Trustee to
                  perform, or be responsible for the manner of performance of,
                  any of the obligations of the Servicer under the Sale and
                  Servicing Agreement except during such time, if any, as the
                  Indenture Trustee shall be the successor to, and be vested
                  with the rights, duties, powers and privileges of, the
                  Servicer in accordance with the terms of this Agreement;

                        (vi) Subject to any express requirement of this
                  Indenture and the Sale and Servicing Agreement and until such
                  time as the Indenture Trustee shall be the successor to the
                  Servicer and without otherwise limiting the generality of this
                  Section, the Indenture Trustee shall have no duty (A) to see
                  to any recording, filing, or depositing of this Indenture or
                  the Sale and Servicing Agreement or any agreement referred to
                  herein or any financing statement or continuation statement
                  evidencing a security interest, or to see to the maintenance
                  of any such recording or filing or depositing or to any
                  rerecording, refiling or redepositing

                                       37
<PAGE>

                  of any thereof, (B) to see to any insurance, (C) to see to the
                  payment or discharge of any tax, assessment, or other
                  governmental charge or any lien or encumbrance of any kind
                  owing with respect to, assessed or levied against, any part of
                  the Trust Estate, (D) to confirm or verify the contents of any
                  reports or certificates of any Servicer delivered to the
                  Indenture Trustee pursuant to the Sale and Servicing Agreement
                  believed by the Indenture Trustee to be genuine and to have
                  been signed or presented by the proper party or parties; and

                        (vii) The Indenture Trustee shall not be deemed a
                  fiduciary for the Note Insurer in its capacity as such, except
                  to the extent the Note Insurer has made an Insured Payment and
                  is thereby subrogated to the rights of the Noteholders with
                  respect thereto.

      Section 6.02 Certain Matters Affecting the Indenture Trustee.

                        Except as otherwise provided in Section 6.01:

                        (i) The Indenture Trustee may rely and shall be
                  protected in acting or refraining from acting upon any
                  resolution, Officers' Certificate, Opinion of Counsel,
                  certificate of auditors or any other certificate, statement,
                  instrument, opinion, report, notice, request, consent, order,
                  appraisal, bond or other paper or document believed by it to
                  be genuine and to have been signed or presented by the proper
                  party or parties;

                        (ii) The Indenture Trustee may consult with counsel and
                  any advice or opinion of counsel shall be full and complete
                  authorization and protection in respect of any action taken or
                  suffered or omitted by it hereunder in good faith and in
                  accordance with such advice or opinion of counsel;

                        (iii) The Indenture Trustee shall be under no obligation
                  to exercise any of the trusts or powers vested in it by this
                  Indenture and the Sale and Servicing Agreement or to
                  institute, conduct or defend by litigation hereunder or in
                  relation hereto at the request, order or direction of the Note
                  Insurer or any of the Noteholders, pursuant to the provisions
                  of this Indenture and the Sale and Servicing Agreement, unless
                  such Noteholders or the Note Insurer, as applicable, shall
                  have offered to the Indenture Trustee reasonable security or
                  indemnity against the costs, expenses and liabilities which
                  may be incurred therein or thereby; except in those cases in
                  which the Indenture Trustee is required by the terms of this
                  Indenture and the Sale and Servicing Agreement to follow the
                  direction of the Note Insurer, the Class 1A Majority
                  Noteholders or the Class 2A Majority Noteholders nothing
                  contained herein shall, however, relieve the Indenture Trustee
                  of the obligation, upon the occurrence of an Event of Default
                  (which has not been cured), to exercise such of the rights and
                  powers vested in it by this Agreement, and to 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;

                                       38
<PAGE>

                        (iv) The Indenture Trustee shall not be personally
                  liable for any action taken, suffered or omitted by it in good
                  faith and believed by it to be authorized or within the
                  discretion or rights or powers conferred upon it by this
                  Agreement;

                        (v) Prior to the occurrence of an Event of Default under
                  this Indenture or the Sale and Servicing Agreement and after
                  the curing of all Events of Default which may have occurred,
                  the Indenture Trustee shall not be bound to make any
                  investigation into the facts or matters stated in any
                  resolution, certificate, statement, instrument, opinion,
                  report, notice, request, consent, order, approval, bond or
                  other paper or document, unless requested in writing to do so
                  by the Note Insurer, the Class 1A Majority Noteholders or the
                  Class 2A Majority Noteholders; provided, however, that if the
                  payment within a reasonable time to the Indenture Trustee of
                  the costs, expenses or liabilities likely to be incurred by it
                  in the making of such investigation is, in the opinion of the
                  Indenture Trustee, not reasonably assured to the Indenture
                  Trustee by the security afforded to it by the terms of this
                  Agreement, the Indenture Trustee may require reasonable
                  indemnity against such cost, expense or liability as a
                  condition to taking any such action. The reasonable expense of
                  every such examination shall be paid by the Servicer or, if
                  paid by the Indenture Trustee, shall be repaid by the Servicer
                  upon demand from such Servicer's own funds;

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

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

                        (viii) The Indenture Trustee may execute any of the
                  trusts or powers hereunder or perform any duties hereunder
                  either directly or by or through agents or attorneys.

            Section 6.03 Indenture Trustee Not Liable for Notes or Mortgage
Loans.

      The recitals contained herein, in the Sale and Servicing Agreement and in
the Notes (other than the certificate of authentication on the Notes) shall be
taken as the statements of the Seller, the Servicer or the Issuer as applicable,
and the Indenture Trustee assumes no responsibility for their correctness. The
Indenture Trustee makes no representations as to the validity or sufficiency of
this Indenture, the Sale and Servicing Agreement or of the Notes or of any
Mortgage Loan or related document (including any document comprising a part of
the Mortgage File). The Indenture Trustee shall not be accountable for the use
or application by the Issuer of any of the Notes or of the proceeds of such
Notes, or for the use or application of any funds paid to the Servicer in
respect of the Mortgage Loans or deposited in or withdrawn by any Servicer from
the Principal and Interest

                                       39
<PAGE>

Accounts. The Indenture Trustee shall not be responsible for the legality or
validity of the Indenture or the Sale and Servicing Agreement or the validity,
priority, perfection or sufficiency of the security for the Notes issued or
intended to be issued hereunder. The Indenture Trustee shall have no
responsibility for filing any financing or continuation statement in any public
office at any time or to otherwise perfect or maintain the perfection of any
security interest or lien granted to it hereunder (unless the Indenture Trustee
shall have become the successor to the Servicer) or to prepare or file any
Securities and Exchange Commission filing for the Issuer or to record this
Indenture or the Sale and Servicing Agreement.

      Section 6.04 Indenture Trustee May Own Notes.

      The Indenture Trustee in its individual or any other capacity may become
the owner or pledgee of Notes with the same rights it would have if it were not
Indenture Trustee, and may otherwise deal with the parties hereto.

      Section 6.05 [Reserved].

      Section 6.06 Eligibility Requirements for Indenture Trustee.

      The Indenture Trustee shall at all times satisfy the requirements of TIA
Section 310(a). The Indenture Trustee hereunder shall at all times be (i) a bank
organized and doing business under the laws of any state or the United States of
America, (ii) authorized under such laws to exercise corporate trust powers,
including taking title to the Trust Estate assets on behalf of the Noteholders,
(iii) having a combined capital and surplus of at least $50,000,000, (iv) whose
long-term deposits shall be rated at least "BBB" by S&P and Baa2 by Moody's
(except as provided herein) or such lower long-term deposit rating by S&P as may
be approved in writing by the Note Insurer and S&P or the Note Insurer and
Moody's, as the case may be (v) is subject to supervision or examination by
federal or state authority and (vi) is reasonably acceptable to the Note Insurer
as evidenced in writing. If such bank publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section 6.06, the combined
capital and surplus of such bank shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Indenture Trustee shall cease to be eligible in accordance
with the provisions of this Section 6.06, the Indenture Trustee shall resign
immediately in the manner and with the effect specified in Section 6.07 hereof.

      Section 6.07 Resignation and Removal of the Indenture Trustee.

      The Indenture Trustee may at any time resign and be discharged from the
trusts hereby and under the Sale and Servicing Agreement created by giving
written notice thereof to the Issuer, the Servicer, the Rating Agencies and the
Note Insurer, not less than 60 days before the date specified in such notice
when such resignation is to take effect. Upon receiving such notice of
resignation, the Servicer shall promptly appoint a successor indenture trustee
which satisfies the eligibility requirements of Section 6.06 and acceptable to
the Note Insurer by written instrument, in duplicate, which instrument shall be
delivered to the resigning Indenture Trustee and to the successor indenture
trustee. A copy of such instrument shall be delivered to the Noteholders and the
Note Insurer by the Servicer. Unless a successor indenture trustee shall have
been so appointed and have accepted

                                       40
<PAGE>

appointment within 60 days after the giving of such notice of resignation, the
resigning Indenture Trustee may petition any court of competent jurisdiction for
the appointment of a successor indenture trustee.

      If at any time the Indenture Trustee shall cease to be eligible in
accordance with the provisions of Section 6.06 and shall fail to resign after
written request therefor by any Servicer, or the Note Insurer, or if at any time
the Indenture Trustee shall become incapable of acting, or shall be adjudged
bankrupt or insolvent, or a receiver of the Indenture Trustee or of its property
shall be appointed, or any public officer shall take charge or control of the
Indenture Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, then the Servicer or the Note
Insurer may remove the Indenture Trustee and the Servicer shall, within 30 days
after such removal, appoint, subject to the approval of the Note Insurer, which
approval shall not be unreasonably withheld, a successor indenture trustee which
satisfies the eligibility requirements of Section 6.06 by written instrument, in
duplicate, which instrument shall be delivered to the Indenture Trustee so
removed and to the successor indenture trustee. A copy of such instrument shall
be delivered to the Noteholders, each Rating Agency and the Note Insurer by the
successor indenture trustee.

      If the Indenture Trustee fails to perform in accordance with the terms of
this Agreement, the Class 1A Majority Noteholders and the Class 2A Majority
Noteholders (with the consent of the Note Insurer) or the Note Insurer may
remove the Indenture Trustee and appoint a successor indenture trustee
acceptable to the Note Insurer by written instrument or instruments, in
triplicate, signed by such Holders or their attorneys-in-fact duly authorized,
one complete set of which instruments shall be delivered to the Servicer, one
complete set to the Indenture Trustee so removed and one complete set to the
successor Indenture Trustee so appointed. A copy of such instrument shall be
delivered to the Note Insurer by the Servicer.

      The Seller may, in its discretion, remove the Indenture Trustee with the
consent of the Note Insurer, which consent shall not be unreasonably withheld,
without cause. The Servicer shall, within 30 days after such removal, appoint,
subject to the approval of the Note Insurer, which approval shall not be
unreasonably withheld, a successor indenture trustee which satisfies the
eligibility requirements of Section 6.06 by written instrument, in duplicate,
which instrument shall be delivered to the Indenture Trustee so removed and to
the successor indenture trustee. A copy of such instrument shall be delivered to
the Noteholders, each Rating Agency and the Note Insurer by the successor
indenture trustee.

      Any resignation or removal of the Indenture Trustee and appointment of a
successor indenture trustee pursuant to any of the provisions of this Section
shall become effective upon acceptance of appointment by the successor indenture
trustee which satisfies the eligibility requirements of Section 6.06 as provided
in Section 6.08.

      Section 6.08 Successor Indenture Trustee.

      Any successor indenture trustee appointed as provided in Section 6.07
shall execute, acknowledge and deliver to the Servicer and to its predecessor
indenture trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor indenture trustee shall
become effective and such successor indenture trustee, without any further

                                       41
<PAGE>

act, deed or conveyance, shall become fully vested with all the rights, powers,
duties and obligations of its predecessor hereunder, with the like effect as if
originally named as indenture trustee herein. The predecessor indenture trustee
shall, to the extent necessary, deliver to the successor indenture trustee, or
Custodian, if any, all Mortgage Files and related documents and statements held
by it hereunder, and the Servicer and the predecessor indenture trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for more fully and certainly vesting and confirming in the successor
indenture trustee all such rights, powers, duties and obligations.

      No successor indenture trustee shall accept appointment as provided in
this Section 6.08 unless at the time of such acceptance such successor indenture
trustee shall be eligible under the provisions of Section 6.06 and its
appointment shall not adversely affect the then current rating of the Notes.

      Upon acceptance of appointment by a successor indenture trustee as
provided in this Section 6.08, the Servicer shall mail notice of the succession
of such indenture trustee hereunder to all Holders of Notes at their addresses
as shown in the Note Register. If the Servicer fails to mail such notice within
10 days after acceptance of appointment by the successor indenture trustee, the
successor indenture trustee shall cause such notice to be mailed at the expense
of the Servicer.

      Section 6.09 Merger or Consolidation of Indenture Trustee.

      Any Person into which the Indenture Trustee may be merged or converted or
with which it may be consolidated or any corporation or banking association
resulting from any merger, conversion or consolidation to which the Indenture
Trustee shall be a party, or any corporation or bank succeeding to all or
substantially all of the corporate trust business of the Indenture Trustee,
shall be the successor of the Indenture Trustee hereunder, provided such
corporation or bank shall be eligible under the provisions of Section 6.06,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.
Written notice of any such merger or consolidation shall be given to the Note
Insurer.

      Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

      Notwithstanding any other provisions hereof, at any time, for the purpose
of meeting any legal requirements of any jurisdiction in which any part of the
Trust Fund or property securing the same may at the time be located, the
Servicer and the Indenture Trustee acting jointly shall have the power and shall
execute and deliver all instruments to appoint one or more Persons approved by
the Indenture Trustee to act as co-indenture trustee or co-indenture trustees,
jointly with the Indenture Trustee, or separate indenture trustee or separate
indenture trustees, of all or any part of the Trust Fund, and to vest in such
Person or Persons, in such capacity, such title to the Trust Fund, or any part
thereof, and, subject to the other provisions of this Section 6.10, such powers,
duties, obligations, rights and trusts as the Servicer and the Indenture Trustee
may consider necessary or desirable. Any such co-indenture trustee or separate
indenture trustee shall be approved by the Note Insurer. If the Servicer shall
not have joined in such appointment within 15 days after the receipt by it of a
request so to do, or in case an Event of Default shall have occurred and be
continuing, the Indenture Trustee alone shall have the power to make such
appointment. No co-indenture trustee or separate indenture

                                       42
<PAGE>

trustee hereunder shall be required to meet the terms of eligibility as a
successor indenture trustee under Section 6.06 and no notice to Holders of Notes
of the appointment of co-indenture trustee(s) or separate indenture trustee(s)
shall be required under Section 6.08.

      In the case of any appointment of a co-indenture trustee or separate
indenture trustee pursuant to this Section 6.10, all rights, powers, duties and
obligations conferred or imposed upon the Indenture Trustee shall be conferred
or imposed upon and exercised or performed by the Indenture Trustee and such
separate indenture trustee or co-indenture trustee jointly, except to the extent
that under any law of any jurisdiction in which any particular act or acts are
to be performed (whether as Indenture Trustee hereunder or as successor to the
Servicer hereunder), the Indenture Trustee shall be incompetent or unqualified
to perform such act or acts, in which event such rights, powers, duties and
obligations (including the holding of title to the Trust Fund or any portion
thereof in any such jurisdiction) shall be exercised and performed by such
separate indenture trustee or co-indenture trustee at the direction of the
Indenture Trustee.

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

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

      Section 6.11 Tax Returns.

      The Indenture Trustee, upon request, will promptly furnish the Issuer with
all such information the Indenture Trustee possesses as may reasonably be
required in connection with the Issuer's preparation of all tax returns (in the
event the Issuer is not treated as a "disregarded entity" for federal income tax
purposes) or for the purpose of the Issuer's responding to reasonable requests
for information made by Noteholders.

      Section 6.12 Appointment of Custodians.

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<PAGE>

      The Indenture Trustee may, with the consent of the Servicer and the Note
Insurer, appoint one or more Custodians to hold all or a portion of the
Trustee's Mortgage Files as agent for the Indenture Trustee, by entering into a
Custodial Agreement substantially in the form attached as Exhibit B hereto.
Subject to this Article VI, the Indenture Trustee agrees to comply with the
terms of each Custodial Agreement and to enforce the terms and provisions
thereof against the Custodian for the benefit of the Noteholders and the Note
Insurer. Each Custodian shall be a depository institution subject to supervision
by federal or state authority and shall be qualified to do business in the
jurisdiction in which it holds any Indenture Trustee's Mortgage File. Each
Custodial Agreement may be amended only as provided in Section 14.02 of the Sale
and Servicing Agreement.

      Section 6.13 Indenture Trustee May Enforce Claims Without Possession of
Notes.

      All rights of action and claims under this Indenture, the Sale and
Servicing Agreement or the Notes may be prosecuted and enforced by the Indenture
Trustee without the possession of any of the Notes or the production thereof in
any proceeding relating thereto, any such proceeding instituted by the Indenture
Trustee shall be brought in its own name or in its capacity as Indenture
Trustee. Any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee, its agents and counsel, be for the ratable benefit of the Noteholders
in respect of which such judgment has been recovered.

      Section 6.14 Suits for Enforcement.

      In case an Event of Servicer Default under the Sale and Servicing
Agreement or other default by the Servicer thereunder shall occur and be
continuing, the Indenture Trustee, in its discretion, but subject to Section
10.01 of the Sale and Servicing Agreement, may proceed to protect and enforce
its rights and the rights of the Noteholders under this Indenture and the Sale
and Servicing Agreement by a suit, action or proceeding in equity or at law or
otherwise, whether for the specific performance of any covenant or agreement
contained in this Indenture and the Sale and Servicing Agreement or in aid of
the execution of any power granted in this Indenture and the Sale and Servicing
Agreement or for the enforcement of any other legal, equitable or other remedy,
as the Indenture Trustee, being advised by counsel, shall deem most effectual to
protect and enforce any of the rights of the Indenture Trustee or the
Noteholders.

      Section 6.15 Indenture Trustee's Fees and Expenses. The Indenture Trustee
shall be paid such fees and expenses as described in Section 12.01 of the Sale
and Servicing Agreement which shall be payable as described in Section 12.01 of
the Sale and Servicing Agreement. Except as set forth in Section 12.01 of the
Sale and Servicing Agreement, the Indenture Trustee shall have no claim against
the Issuer or the Trust Estate for any unpaid fees or expenses. In the event of
a default in the payment of such fees and expenses by the Seller or the
Servicer, the Indenture Trustee hereby agrees that it will continue to act as
Indenture Trustee hereunder and perform its duties hereunder and the duties of
the Indenture Trustee under the Basic Documents.

      Section 6.16 [Reserved].

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<PAGE>

      Section 6.17 Representations and Warranties. The Indenture Trustee hereby
represents that:

            (i)   The Indenture Trustee is duly organized and validly existing
                  as a national banking association in good standing under the
                  laws of the United States;

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

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

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

      Section 6.18 Directions to Indenture Trustee. The Indenture Trustee is
hereby directed by the Issuer:

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

            (b)   to authenticate and deliver the Notes substantially in the
                  form prescribed by Exhibits A-1 and A-2 in accordance with the
                  terms of this Indenture; and

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

      Section 6.19 The Agents. The provisions of this Indenture relating to the
limitations of the Indenture Trustee's liability and to its indemnity shall
inure also to the Paying Agent and Note Registrar.

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<PAGE>

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

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

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

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

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

      Section 7.03. Reports of Issuer. (a)(i) The Indenture Trustee shall file
with the Commission and the Note Insurer on behalf of the Issuer, with a copy to
the Issuer within 15 days before the Issuer is required to file the same with
the Commission, the annual reports and the information, documents and other
reports (or such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) that the Issuer may be required
to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act;

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

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

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<PAGE>

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

      Section 7.04. Reports by Indenture Trustee. If required by TIA ss. 313(a),
within 60 days after each January 29 beginning with January 29, 2001, the
Indenture Trustee shall mail to each Noteholder as required by TIA ss. 313(c) a
brief report dated as of such date that complies with TIA ss. 313(a). The
Indenture Trustee also shall comply with TIA ss. 313(b).

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

      Section 7.05. Statements to Noteholders. With respect to each Payment
Date, the Indenture Trustee shall deliver to each Noteholder, Certificateholder,
the Note Insurer, the Seller, the Owner Trustee, the Certificate Paying Agent
and each Rating Agency, copies of each Servicer's Certificate received pursuant
to Section 6.08 of the Sale and Servicing Agreement.

                                       47
<PAGE>

                                  ARTICLE VIII

               ACCOUNTS, DISTRIBUTIONS, DISBURSEMENTS AND RELEASES

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

      Section 8.02. [Reserved].

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

      Section 8.04. Termination Upon Distribution to Noteholders. This Indenture
and the respective obligations and responsibilities of the Issuer and the
Indenture Trustee created hereby shall terminate upon the distribution to
Noteholders, the Note Insurer, the Certificate Paying Agent on behalf of the
Certificateholders and the Indenture Trustee of all amounts required to be
distributed pursuant to Article III and the Sale and Servicing Agreement;
provided, however, that in no event shall the trust created hereby continue
beyond the expiration of 21 years from the death of the survivor of the
descendants of Joseph P. Kennedy, the late ambassador of the United States to
the Court of St. James, living on the date hereof.

      Section 8.05. Release of Trust Estate. (a) Subject to the payment of its
fees and expenses, the Indenture Trustee may, and when required by the
provisions of this Indenture or the Sale and Servicing Agreement shall, execute
instruments to release property from the lien of this Indenture, or convey the
Indenture Trustee's interest in the same, in a manner and under circumstances
that are not inconsistent with the provisions of this Indenture. No party
relying upon an instrument executed by the Indenture Trustee as provided in
Article VIII hereunder shall be bound to ascertain the Indenture Trustee's
authority, inquire into the satisfaction of any conditions precedent, or see to
the application of any monies.

      (b) The Indenture Trustee shall, at such time as (i) there are no Notes
Outstanding, (ii) all sums due to the Note Insurer have been paid and (iii) all
sums due to the Indenture Trustee

                                       48
<PAGE>

pursuant to this Indenture have been paid, release any remaining portion of the
Trust Estate that secured the Notes from the lien of this Indenture.

      (c) The Indenture Trustee shall release property from the lien of this
Indenture pursuant to Section 8.05(a) only upon receipt of a request from the
Issuer accompanied by an Officers' Certificate and an Opinion of Counsel stating
that all applicable requirements have been satisfied and, if required by the
TIA, Independent Certificates in accordance with TIA Section 314(c) and 314(d)
meeting the applicable requirements as described herein.

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

      Section 8.07. No Redemption of the Notes. The Issuer shall not have the
right to redeem the Notes. However, the Servicer or the Issuer, as
majorityholder of the Certificates, shall have the option to purchase the
Mortgage Loans and any properties acquired in respect thereof pursuant to the
terms of Section 11.01 of the Sale and Servicing Agreement, thereby effecting a
redemption in full of the Notes.

                                       49
<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

      Section 9.01. Supplemental Indentures Without Consent of Noteholders. (a)
Without the consent of the Holders of any Notes but with prior consent of the
Note Insurer and prior notice to the Rating Agencies, the Issuer and the
Indenture Trustee, when authorized by an Issuer Request, at any time and from
time to time, may enter into one or more indentures supplemental hereto (which
shall conform to the provisions of the TIA as in force at the date of the
execution thereof), in form satisfactory to the Indenture Trustee, for any of
the following purposes:

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

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

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

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

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

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

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

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

provided, however, that no such indenture supplements shall be entered into
unless the Indenture Trustee shall have received an Opinion of Counsel that
entering into such indenture supplement will

                                       50
<PAGE>

not result in a "substantial modification" of the Notes under Treasury
Regulation Section 1.1001.3 or adversely affect the status of the Notes as
indebtedness for federal income tax purposes.

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

      (b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Request, may, also without the consent of any of the Holders of the Notes but
with prior notice to the Note Insurer the Rating Agencies and the consent of the
Note Insurer, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, this Indenture or of modifying in any manner the
rights of the Holders of the Notes under this Indenture; provided, however, that
such action shall not, as evidenced by an Opinion of Counsel, (i) adversely
affect in any material respect the interests of any Noteholder or (ii) if 100%
of the Certificates are not owned by the Seller, cause the Issuer to be subject
to an entity level tax for federal income tax purposes.

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

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

                        (ii) reduce the percentage of the Note Principal
      Balances of the Notes, the consent of the Holders of which is required for
      any such supplemental indenture, or the consent of the Holders of which is
      required for any waiver of compliance with certain provisions of this
      Indenture or certain defaults hereunder and their consequences provided
      for in this Indenture;

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

                                       51
<PAGE>

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

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

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

                        (vii) permit the creation of any lien ranking prior to
      or on a parity with the lien of this Indenture with respect to any part of
      the Trust Estate or, except as otherwise permitted or contemplated herein,
      terminate the lien of this Indenture on any property at any time subject
      hereto or deprive the Holder of any Note of the security provided by the
      lien of this Indenture; and provided, further, that such action shall not,
      as evidenced by an Opinion of Counsel, cause the Issuer (if 100% of the
      Certificates are not owned by the Seller) to be subject to an entity level
      tax.

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

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

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

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

                                       52
<PAGE>

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

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

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

                                       53
<PAGE>

                                    ARTICLE X

                                  MISCELLANEOUS

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

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

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

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

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

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

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

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

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

                                       54
<PAGE>

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

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

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

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

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

                                       55
<PAGE>

of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

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

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

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

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

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

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

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

                                       56
<PAGE>

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

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

                  (ii) the Issuer by the Indenture Trustee or by any Noteholder
      shall be sufficient for every purpose hereunder if in writing and mailed
      first-class, postage prepaid to the Issuer addressed to: Corporate Trust
      Administration, AFC Trust Series 2000-1, in care of OWNER TRUSTEE,
      Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
      Wilmington, DE 19890, Attention: AFC Trust Series 2000-1, or at any other
      address previously furnished in writing to the Indenture Trustee by the
      Issuer. The Issuer shall promptly transmit any notice received by it from
      the Noteholders to the Indenture Trustee.

      Notices required to be given to the Rating Agencies or the Note Insurer by
the Issuer, the Indenture Trustee or the Owner Trustee shall be in writing,
personally delivered or mailed first-class postage pre-paid, to (i) in the case
of Standard & Poor's, at the following address: 55 Water Street, New York, N.Y.
10041, (ii) in the case of Moody's, at the following address: 99 Church Street,
New York, N.Y. 10007; or as to each of the foregoing, at such other address as
shall be designated by written notice to the other parties, (iii) in the case of
the Note Insurer, at the following address: Financial Guaranty Insurance
Company, 115 Broadway, New York, New York 10006, Attention: Research and Risk
Management - AFC Trust Series 2000-1 and (iv) in the case of Fitch, One State
Street Plaza, New York, New York 10004.

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

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

      In case, by reason of the suspension of regular mail service as a result
of a strike, work stoppage or similar activity, it shall be impractical to mail
notice of any event to Noteholders when

                                       57
<PAGE>

such notice is required to be given pursuant to any provision of this Indenture,
then any manner of giving such notice as shall be satisfactory to the Indenture
Trustee shall be deemed to be a sufficient giving of such notice.

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

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

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

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

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

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

      Section 10.10. Benefits of Indenture. The Note Insurer and its successors
and assigns shall be a third-party beneficiary to the provisions of this
Indenture. To the extent that this Indenture confers upon or gives or grants to
the Note Insurer any right, remedy or claim under or by reason of this
Indenture, the Note Insurer may enforce any such right, remedy or claim
conferred, given or granted hereunder. Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, and the Noteholders and the Note Insurer,
any benefit or any legal or equitable right, remedy or claim under this
Indenture.

      Section 10.11. Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

      Section 10.12. GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS

                                       58
<PAGE>

AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

      Section 10.13. Counterparts. This Indenture may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

      Section 10.14. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense, upon the written request of the
Indenture Trustee and accompanied by an Opinion of Counsel (which may be counsel
to the Indenture Trustee or any other counsel reasonably acceptable to the
Indenture Trustee) to the effect that such recording is necessary either for the
protection of the Noteholders or any other Person secured hereunder or for the
enforcement of any right or remedy granted to the Indenture Trustee under this
Indenture.

      Section 10.15. Issuer Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

      Section 10.16. No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree
that they will not at any time institute against the Depositor, the Seller or
the Issuer, or join in any institution against the Depositor, the Seller or the
Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal or
state bankruptcy or similar law in connection with any obligations relating to
the Notes, this Indenture or any of the Basic Documents. This Section 10.16 will
survive for one year following the termination of this Indenture.

      Section 10.17. Inspection. The Issuer agrees that, on reasonable prior
notice, it shall permit any representative of the Indenture Trustee and the Note
Insurer, during the Issuer's normal business hours, to examine all the books of
account, records, reports and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by Independent certified

                                       59
<PAGE>

public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees, and Independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Indenture Trustee and the Note Insurer shall cause its
representatives to hold in confidence all such information except to the extent
disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent
with its obligations hereunder.

      Section 10.18. Limitation of Liability. It is expressly understood and
agreed by the parties hereto that (a) this Agreement is executed and delivered
by Wilmington Trust Company, not individually or personally but solely as Owner
Trustee (in such capacity, the "Owner Trustee") under the Trust Agreement, in
the exercise of the powers and authority conferred and vested in it under the
Trust Agreement, (b) each of the representations, undertakings and agreements
herein made on the part of the Owner Trustee is made and intended not as
personal representations, undertakings and agreements by Wilmington Trust
Company but is made and intended for the purpose for binding only the Owner
Trustee and (c) under no circumstances shall Wilmington Trust Company be
personally liable for the payment of any indebtedness or expenses of the Owner
Trustee or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Owner Trustee
under this Agreement or the other related documents.

                                       60
<PAGE>

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

                                       AFC TRUST SERIES 2000-1,
                                       as Issuer

                                       By: Wilmington Trust Company,
                                           not in its individual capacity
                                           but solely as Owner Trustee

                                       By:    /s/ Kathleen A. Pedelini
                                          --------------------------------------
                                       Name:  Kathleen A. Pedelini
                                       Title: Administrative Account Manager

                                       LASALLE BANK NATIONAL ASSOCIATION,
                                       as Indenture Trustee, as Paying Agent and
                                       as Note Registrar

                                       By:    /s/ Cynthia Reis
                                          --------------------------------------
                                       Name:  Cynthia Reis
                                       Title: First Vice President

                                       61
<PAGE>

STATE OF DELAWARE      )
                       ) ss.:
COUNTY OF NEW CASTLE   )

      On this 22nd day of March, before me personally appeared Kathleen A.
Pedelini to me known, who being by me duly sworn, did depose and say, that she
is the Administrative Account Manager of the Owner Trustee, one of the
corporations described in and which executed the above instrument; that she
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by order of the Board of Directors
of said corporation; and that she signed her name thereto by like order.

                                         Notary Public

                                         /s/ Anita E. Dallago
                                         ---------------------------------------
                                         NOTARY PUBLIC
                                         My Commission expires August 3, 2001
                                                               -----------------

[NOTARIAL SEAL]

<PAGE>

STATE OF ILLINOIS    )
                     ) ss.:
COUNTY OF COOK       )

      On this 28th day of March, before me personally appeared Cynthia Reis to
me known, who being by me duly sworn, did depose and say, that she is the First
Vice President of LaSalle Bank National Association, as Indenture Trustee, one
of the corporations described in and which executed the above instrument; that
she knows the seal of said corporation; that the seal affixed to said instrument
is such corporate seal; that it was so affixed by order of the Board of
Directors of said corporation; and that she signed her name thereto by like
order.

                                      Notary Public

                                      /s/ Michael C. Dombai
                                      ------------------------------------------
                                      My Commission expires December 1, 2001
                                                            --------------------

[NOTARIAL SEAL]

<PAGE>

                                   EXHIBIT A-1

                             FORM OF CLASS 1A NOTES

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

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

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

BY ACQUIRING A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT THAT EITHER (1)
IT IS NOT ACQUIRING THE NOTE WITH THE ASSETS OF AN EMPLOYEE BENEFIT PLAN WITHIN
THE MEANING OF SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA") OR A PLAN WITHIN THE MEANING OF SECTION 4975(e)(1) OF
THE INTERNAL REVENUE CODE OF 1986 ("CODE"); OR (2) THE ACQUISITION AND HOLDING
OF THE NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE.

               AFC MORTGAGE LOAN ASSET BACKED NOTES, SERIES 2000-1

CLASS 1A

AGGREGATE NOTE PRINCIPAL
BALANCE:$

INITIAL NOTE PRINCIPAL
BALANCE OF THIS NOTE:                    NOTE NO.
$

PERCENTAGE INTEREST: ____%               CUSIP NO.

                                       64
<PAGE>

      AFC Trust Series 2000-1 (the "Issuer"), a Delaware business trust, for
value received, hereby promises to pay to CEDE & CO. or registered assigns, the
principal sum of __________________________________________________
($_________________) in monthly installments on the twenty-fifth day of each
month or, if such day is not a Business Day, the next succeeding Business Day
(each a "Payment Date"), commencing in April 2000 and ending on or before March
__, 2030 and to pay interest on the Note Principal Balance of this Class A Note
(this "Note") outstanding from time to time as provided below.

      This Note is one of a duly authorized issue of the Issuer's AFC Mortgage
Loan Asset Backed Notes, Series 2000-1 (the "Notes"), issued under an Indenture
dated as of March 1, 2000 (the "Indenture"), between the Issuer and LaSalle Bank
National Association, as indenture trustee (the "Indenture Trustee", which term
includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights thereunder of the Issuer, the Indenture
Trustee, and the Holders of the Notes and the terms upon which the Notes are to
be authenticated and delivered. All terms used in this Note which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

      Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. On each
Payment Date, Noteholders will be entitled to receive interest payments in an
aggregate amount equal to the Class 1A Interest Remittance Amount for such
Payment Date, together with principal payments in an aggregate amount equal to
the Class 1A Principal Remittance Amount, if any, for such Payment Date.

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

      Financial Guaranty Insurance Company (the "Note Insurer"), in
consideration of the payment of the premium and subject to the terms of the
financial guaranty insurance policy (the "Note Insurance Policy") issued
thereby, has unconditionally and irrevocably guaranteed the payment of the
Insured Payment with respect to each Payment Date. The Note Insurance Policy
will not cover any Available Funds Cap Carry-Forward Amount.

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

      The Notes are subject to redemption in whole, but not in part, by the
Servicer on any Payment Date on which the aggregate Principal Balance of the
Mortgage Loans is less than or equal to 5% of (i) the aggregate Principal
Balance of the Group 1 Mortgage Loans as of the Cut-off Date and (ii) the amount
on deposit in the Group 1 Pre-Funding Account on the Closing Date.

      The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Notes, and

                                       65
<PAGE>

each Holder hereof, by its acceptance of this Note, agrees that (i) such Note
will be limited in right of payment to amounts available from the Trust Estate
as provided in the Indenture and (ii) such Holder shall have no recourse to the
Issuer, the Seller, the Owner Trustee, the Indenture Trustee, the Servicer or
any of their respective affiliates, or to the assets of any of the foregoing
entities, except the assets of the Issuer pledged to secure the Notes pursuant
to the Indenture and the rights conveyed to the Issuer under the Indenture.

      Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note (holding an aggregate
initial Note Principal Balance of at least $5,000,000) delivered to the
Indenture Trustee at least five Business Days prior to the Record Date, any
payment of principal or interest, other than the final installment of principal
or interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note (or
one or more Predecessor Notes) effected by payments of principal made on any
Payment Date shall be binding upon all Holders of this Note and of any Note
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, whether or not such payment is noted on such Note. The final
payment of this Note shall be payable upon presentation and surrender thereof on
or after the Payment Date thereof at the Corporate Trust Office or the office or
agency of the Issuer maintained by it for such purpose pursuant to Section 3.02
of the Indenture.

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

      If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this Note,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

      By acquiring a Note, the purchaser will be deemed to represent that either
(1) it is not acquiring the Note with the assets of an employee benefit plan
within the meaning of section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA") or a plan within the meaning of section
4975(e)(1) of the Internal Revenue Code of 1986 ("Code"); or (2) the acquisition
and holding of the note will not give rise to a nonexempt prohibited transaction
under Section 406 of ERISA or Section 4975 of the Code.

                                       66
<PAGE>

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

      Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner
of such Note (i) on the applicable Record Date for the purpose of making
payments and interest of such Note, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Note be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Note Insurer or the Holders of a
majority of all Notes at the time outstanding. The Indenture also contains
provisions permitting the Note Insurer or the Holders of Notes representing
specified percentages of the aggregate Note Principal Balance of the Notes on
behalf of the Holders of all the Notes (with the consent of the Note Insurer),
to waive any past Default under the Indenture and its consequences. Any such
waiver by the Note Insurer or the Holder, at the time of the giving thereof, of
this Note (or any one or more Predecessor Notes) shall bind the Holder of every
Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not notation of such consent or waiver is made upon such
Note. The Indenture also permits the Issuer and the Indenture Trustee to amend
or waive certain terms and conditions set forth in the Indenture without the
consent of the Holders of the Notes issued thereunder but with the consent of
the Note Insurer.

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

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

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

                                       67
<PAGE>

      IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by OWNER TRUSTEE, not in its individual capacity but solely as Owner
Trustee.

Dated: March __, 2000

                                    AFC TRUST SERIES 2000-1

                                    BY:  Wilmington Trust Company, not in its
                                         individual capacity but solely in its
                                         capacity as Owner Trustee

                                    By:_________________________________________
                                         Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

LaSalle Bank National Association,
  as Indenture Trustee

By:______________________________________
   Authorized Signatory

                                       68
<PAGE>

                                  ABBREVIATIONS

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

      TEN COM        --   as tenants in common
      TEN ENT        --   as tenants by the entireties
      JT TEN         --   as joint tenants with right of survivorship and
                          not as tenants in common
UNIF GIFT MIN ACT    --   ________________ Custodian ___________________________
                              (Cust)                          (Minor)
                          under Uniform Gifts to Minor Act _____________________
                                                           (State)

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

                                       69
<PAGE>

                                   ASSIGNMENT

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

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

         ______________________________________________________________

         ______________________________________________________________

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

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

Dated: ________________________             ____________________________________

Signature Guaranteed by ________________________________________________________

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

                                       70
<PAGE>

                                   EXHIBIT A-2

                             FORM OF CLASS 2A NOTES

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

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

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

BY ACQUIRING A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT THAT EITHER (1)
IT IS NOT ACQUIRING THE NOTE WITH THE ASSETS OF AN EMPLOYEE BENEFIT PLAN WITHIN
THE MEANING OF SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED ("ERISA") OR A PLAN WITHIN THE MEANING OF SECTION 4975(e)(1) OF
THE INTERNAL REVENUE CODE OF 1986 ("CODE"); OR (2) THE ACQUISITION AND HOLDING
OF THE NOTE WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE.

               AFC MORTGAGE LOAN ASSET BACKED NOTES, SERIES 2000-1

CLASS 2A

AGGREGATE NOTE PRINCIPAL
BALANCE:$

INITIAL NOTE PRINCIPAL
BALANCE OF THIS NOTE:                 NOTE NO.
$

PERCENTAGE INTEREST: ____%                        CUSIP NO.

                                       71
<PAGE>

      AFC Trust Series 2000-1 (the "Issuer"), a Delaware business trust, for
value received, hereby promises to pay to CEDE & CO. or registered assigns, the
principal sum of __________________________________________________
($_________________) in monthly installments on the twenty-fifth day of each
month or, if such day is not a Business Day, the next succeeding Business Day
(each a "Payment Date"), commencing in April 2000 and ending on or before March
__, 2030 and to pay interest on the Note Principal Balance of this Class A Note
(this "Note") outstanding from time to time as provided below.

      This Note is one of a duly authorized issue of the Issuer's AFC Mortgage
Loan Asset Backed Notes, Series 2000-1 (the "Notes"), issued under an Indenture
dated as of March 1, 2000 (the "Indenture"), between the Issuer and LaSalle Bank
National Association, as indenture trustee (the "Indenture Trustee", which term
includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights thereunder of the Issuer, the Indenture
Trustee, and the Holders of the Notes and the terms upon which the Notes are to
be authenticated and delivered. All terms used in this Note which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

      Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. On each
Payment Date, Noteholders will be entitled to receive interest payments in an
aggregate amount equal to the Class 2A Interest Remittance Amount for such
Payment Date, together with principal payments in an aggregate amount equal to
the Class 2A Principal Remittance Amount, if any, for such Payment Date.

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

      Financial Guaranty Insurance Company (the "Note Insurer"), in
consideration of the payment of the premium and subject to the terms of the
financial guaranty insurance policy (the "Note Insurance Policy") issued
thereby, has unconditionally and irrevocably guaranteed the payment of the
Insured Payment with respect to each Payment Date. The Note Insurance Policy
will not cover any Available Funds Cap Carry-Forward Amount.

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

      The Notes are subject to redemption in whole, but not in part, by the
Servicer on any Payment Date on which the aggregate Principal Balance of the
Mortgage Loans is less than or equal to 5% of (i) the aggregate Principal
Balance of the Group 2 Mortgage Loans as of the Cut-off Date and (ii) the
aggregate amounts on deposit in the Group 2 Pre-Funding Account on the Closing
Date.

      The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Notes, and

                                       72
<PAGE>

each Holder hereof, by its acceptance of this Note, agrees that (i) such Note
will be limited in right of payment to amounts available from the Trust Estate
as provided in the Indenture and (ii) such Holder shall have no recourse to the
Issuer, the Seller, the Owner Trustee, the Indenture Trustee, the Servicer or
any of their respective affiliates, or to the assets of any of the foregoing
entities, except the assets of the Issuer pledged to secure the Notes pursuant
to the Indenture and the rights conveyed to the Issuer under the Indenture.

      Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note (holding an aggregate
initial Note Principal Balance of at least $5,000,000) delivered to the
Indenture Trustee at least five Business Days prior to the Record Date, any
payment of principal or interest, other than the final installment of principal
or interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note (or
one or more Predecessor Notes) effected by payments of principal made on any
Payment Date shall be binding upon all Holders of this Note and of any Note
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, whether or not such payment is noted on such Note. The final
payment of this Note shall be payable upon presentation and surrender thereof on
or after the Payment Date thereof at the Corporate Trust Office or the office or
agency of the Issuer maintained by it for such purpose pursuant to Section 3.02
of the Indenture.

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

      If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of the Notes,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

      By acquiring a Note, the purchaser will be deemed to represent that either
(1) it is not acquiring the Note with the assets of an employee benefit plan
within the meaning of section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA") or a plan within the meaning of section
4975(e)(1) of the Internal Revenue Code of 1986 ("Code"); or (2) the acquisition
and holding of the note will not give rise to a nonexempt prohibited transaction
under Section 406 of ERISA or Section 4975 of the Code.

                                       73
<PAGE>

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

      Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner
of such Note (i) on the applicable Record Date for the purpose of making
payments and interest of such Note, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Note be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Note Insurer or the Holders of a
majority of all Notes at the time outstanding. The Indenture also contains
provisions permitting the Note Insurer or the Holders of Notes representing
specified percentages of the aggregate Note Principal Balance of the Notes on
behalf of the Holders of all the Notes (with the consent of the Note Insurer),
to waive any past Default under the Indenture and its consequences. Any such
waiver by the Note Insurer or the Holder, at the time of the giving thereof, of
this Note (or any one or more Predecessor Notes) shall bind the Holder of every
Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not notation of such consent or waiver is made upon such
Note. The Indenture also permits the Issuer and the Indenture Trustee to amend
or waive certain terms and conditions set forth in the Indenture without the
consent of the Holders of the Notes issued thereunder but with the consent of
the Note Insurer.

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

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

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

                                       74
<PAGE>

      IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by OWNER TRUSTEE, not in its individual capacity but solely as Owner
Trustee.

Dated: March __, 2000

                                 AFC TRUST SERIES 2000-1

                                 BY:  Wilmington Trust Company, not in its
                                      individual capacity but solely in its
                                      capacity as Owner Trustee

                                 By:____________________________________________
                                      Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

LaSalle Bank National Association,
  as Indenture Trustee

By:______________________________________
   Authorized Signatory

                                       75
<PAGE>

                                  ABBREVIATIONS

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

      TEN COM       --  as tenants in common
      TEN ENT       --  as tenants by the entireties
      JT TEN        --  as joint tenants with right of survivorship and not
                        as tenants in common
UNIF GIFT MIN ACT   --  ______________ Custodian _______________________________
                            (Cust)                           (Minor)
                        under Uniform Gifts to Minor Act _______________________
                                                         (State)

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

                                       76
<PAGE>

                                   ASSIGNMENT

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

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

         ______________________________________________________________

         ______________________________________________________________

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

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

Dated: ________________________            _____________________________________

Signature Guaranteed by ___________________________________________________

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

                                       77
<PAGE>

                                    EXHIBIT B

                               CUSTODIAL AGREEMENT

                               Dated ______, 2000

            ______________________________, a ____________________, as Indenture
Trustee (the "Indenture Trustee") and ___________________, a _________________
("_________________"), agree as follows:

            WHEREAS, concurrently herewith, the Indenture Trustee, AFC Trust
Series 2000-1 (the "Issuer"), Superior Bank FSB (the "Seller") and Superior Bank
FSB (the "Servicer) are entering into a Sale and Servicing Agreement, dated as
of March 1, 2000, relating to AFC Mortgage Loan Asset Backed Notes, Series
2000-1 (the "Sale Agreement", the terms defined therein being used herein with
the same meaning) pursuant to which the Seller shall transfer, assign, set-over
and otherwise convey to the Issuer, without recourse, all of the Seller's right,
title and interest in and to the mortgage loans consisting of Group 1 and Group
2 identified in Exhibits H-1 and H-2 to the Sale Agreement (the "Mortgage
Loans"), other than as to the Depositor's Yield;

            WHEREAS, pursuant to the Indenture, dated as of March 1, 2000
between the Issuer and the Indenture Trustee, the Issuer shall pledge and assign
the Mortgage Loans for the benefit of the Noteholder; and

            WHEREAS, in connection with such transfer, pledge and assignment and
pursuant to the Indenture, the Indenture Trustee shall hold, directly or
pursuant to a custodial agreement, the Trustee's Mortgage Files;

            WITNESSETH THAT, in consideration of the premises and of the mutual
agreements herein contained, _________________ and the Indenture Trustee agree
as follows:

            1. Appointment as Custodian; Acknowledgment of Receipt; Fees.
Subject to the terms and conditions herein, the Indenture Trustee hereby
appoints ________________, and ______________ hereby accepts such appointment,
as its Custodian to maintain custody of the Trustee's Mortgage Files.
__________________ hereby acknowledges receipt of the Mortgage Notes, the
Mortgages, the assignments and other documents relating to the Mortgage Loans
referred to in Section 2.04, except for the items referred to in Section
2.04(f), of the Sale Agreement. The Servicer shall be liable for all of
_______________________ fees under this Agreement.

            2. Maintenance of Office. __________________ agrees to maintain each
Trustee's Mortgage File identified in Section 2.04 of the Sale Agreement, which
is incorporated herein by reference, at the office of __________________________
located at __________________________________________________________ or at such
other office of _________________ in ____________________ as ________________
shall designate from time to time after giving the Trustee 30 days' prior
written notice.

                                       78
<PAGE>

            3. Duties of Custodian. As Custodian, _____________ shall have and
perform the following powers and duties:

                  (a) Safekeeping. To segregate the Trustee's Mortgage Files
            from all other mortgages and mortgage notes and similar records in
            its possession, to identify the Trustee's Mortgage Files as being
            held and to hold the Trustee's Mortgage Files for and on behalf of
            the Indenture Trustee for the benefit of all present and future
            Noteholders, to maintain accurate records pertaining to each
            Trustee's Mortgage Files as will enable the Indenture Trustee to
            comply with the terms and conditions of the Sale Agreement, to
            maintain at all times a current inventory thereof and to conduct
            periodic physical inspections of the Trustee's Mortgage Files held
            by it under this Agreement in such a manner as shall enable the
            Indenture Trustee and _________________ to verify the accuracy of
            such record-keeping, inventory and physical possession.
            _________________ will promptly report to the Indenture Trustee any
            failure on its part to hold the Trustee's Mortgage Files as herein
            provided and promptly take appropriate action to remedy any such
            failure.

                        (b) Release of Documents. To release any Mortgage Note
                  and Mortgage in the Trustee's Mortgage Files as provided in
                  the Sale Agreement.

                        (c) Administration; Reports. In general, to attend to
                  all non-discretionary details in connection with maintaining
                  custody of the Trustee's Mortgage Files on behalf of the
                  Indenture Trustee. In addition, ________________ shall assist
                  the Indenture Trustee generally in the preparation of reports
                  to Securityholders or to regulatory bodies to the extent
                  necessitated by ________________ custody of the Trustee's
                  Mortgage Files.

            4. Access to Records. __________________ shall permit the Indenture
Trustee or its duly authorized depositors, attorneys or auditors and those
persons permitted access pursuant to Section 5.13 of the Sale Agreement to
inspect the Trustee's Mortgage Files and the books and records maintained by
__________________ pursuant hereto at such times as they may reasonably request,
subject only to compliance with the terms of the Sale Agreement.

            5. Instructions; Authority to Act. ______________ shall be deemed to
have received proper instructions with respect to the Trustee's Mortgage Files
upon its receipt of written instructions signed by a Responsible Officer of the
Indenture Trustee. A certified copy of a resolution of the Board of Directors of
the Indenture Trustee may be accepted by _______________ as conclusive evidence
of the authority of any such officer to act and may be considered as in full
force and effect until receipt of written notice to the contrary by
______________ from the Indenture Trustee. Such instructions may be general or
specific in terms.

            6. Indemnification by . _________________ agrees to indemnify the
Indenture Trustee for any and all liabilities, obligations, losses, damages,
payments, costs or expenses, including attorneys fees, of any kind whatsoever
which may be imposed on, incurred by or asserted against the Indenture Trustee
as the result of any act or omission in any way relating to the maintenance and
custody by ___________________ of the Trustee's Mortgage Files; provided,

                                       79
<PAGE>

however, that ___________________ shall not be liable for any portion of any
such amount resulting from the gross negligence or wilful misconduct of the
Indenture Trustee.

            7. Advice of Counsel. __________________ and the Indenture Trustee
further agree that ____________________ shall be entitled to rely and act upon
the advice of counsel with respect to its performance hereunder as Custodian and
shall be without liability for any action reasonably taken pursuant to such
advice, provided that such action is not in violation of applicable Federal or
State law. This paragraph shall not negate _______________ obligations under
paragraph 6 above.

            8. Effective Period, Termination and Amendment, and Interpretive and
Additional Provisions. This Agreement shall become effective as of the date
hereof and shall continue in full force and effect until terminated as
hereinafter provided, and may be amended at any time by mutual agreement of the
parties hereto. This Agreement may be terminated by either party in a writing
delivered or mailed, postage prepaid, to the other party, such termination to
take effect no sooner than sixty (60) days after the date of such delivery or
mailing. Concurrently with, or as soon as practicable after, the termination of
this Agreement, _________________ shall redeliver the Trustee's Mortgage Files
to the Indenture Trustee at such place as the Indenture Trustee may reasonably
designate. In connection with the administration of this Agreement,
________________ and the Indenture Trustee may agree from time to time upon the
interpretation of the provisions of this Agreement as may in their opinion by
consistent with the general tenor and purposes of this Agreement, any such
interpretation to be signed and annexed hereto.

            9. Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of New York.

            10. Notices. Notices and other writings shall be delivered or
mailed, postage prepaid, to the Indenture Trustee at, or to
___________________________________________ at, ______________________________,
Attention: ______________________; or to such other address as the Indenture
Trustee or ________________ may hereafter specify in writing. Notices or other
writings shall be effective only upon actual receipt by the parties.

            11. Binding Effect. This Agreement shall be binding upon and shall
inure to the benefit of the Indenture Trustee and ____________________ and their
respective successors and assigns. Concurrently with the appointment of a
successor trustee as provided in Section ___ of the Indenture, the Indenture
Trustee and ___________________ shall amend this Agreement to make said
successor trustee the successor to the Indenture Trustee hereunder.

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

            13. Fees and Expenses. All fees and expenses of the Custodian shall
be paid by the Indenture Trustee as have been separately agreed upon before the
date hereof pursuant to a

                                       80
<PAGE>

separate fee agreement between the Custodian and the Indenture Trustee. In no
event shall any fees and expenses of the Custodian become fees or expenses of
the Issuer, the Seller or Servicer.

                                       81
<PAGE>

            IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be executed in its name and on its behalf by a duly authorized
officer as of the day and year first above written.

                                          LASALLE BANK NATIONAL ASSOCIATION,
                                               as Indenture Trustee under the
                                               Indenture referred to above

                                          By: __________________________________

                                          _____________________________________,
                                          as Custodian

                                          By: __________________________________

                                       82================================================================================

                               SUPERIOR BANK FSB,

                                  as Depositor

                                       and

                            WILMINGTON TRUST COMPANY,

                                as Owner Trustee

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

                                 TRUST AGREEMENT

                            Dated as of March 1, 2000

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

                             AFC Trust Series 2000-1
                             AFC Trust Certificates,
                                  Series 2000-1

================================================================================
<PAGE>

                                Table of Contents

Section                                                                     Page

ARTICLE I

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

ARTICLE II

  Organization................................................................3
  2.01.   Name................................................................3
  2.02.   Office..............................................................3
  2.03.   Purposes and Powers.................................................3
  2.04.   Appointment of Owner Trustee........................................4
  2.05.   Initial Capital Contribution of Owner Trust Estate..................4
  2.06.   Declaration of Trust................................................4
  2.07.   Liability of the Holders of the Certificates........................4
  2.08.   Title to Trust Property.............................................5
  2.09.   Situs of Trust......................................................5
  2.10.   Representations and Warranties of the Depositor.....................5
  2.11.   Reserved............................................................6
  2.12.   Investment Company..................................................6

ARTICLE III

  Conveyance of the Mortgage Loans;
   Certificates...............................................................7
  3.01.   Reserved............................................................7
  3.02.   Initial Ownership...................................................7
  3.03.   The Certificates....................................................7
  3.04.   Authentication of Certificates......................................7
  3.05.   Registration of and Limitations on Transfer and Exchange
            of Certificates...................................................8
  3.06.   Mutilated, Destroyed, Lost or Stolen Certificates..................10
  3.07.   Persons Deemed Certificateholders..................................10
  3.08.   Access to List of Certificateholders' Names and Addresses..........10
  3.09.   Maintenance of Office or Agency....................................11
  3.10.   Certificate Paying Agent...........................................11

ARTICLE IV

  Authority and Duties of Owner Trustee......................................13
  4.01.   General Authority..................................................13
  4.02.   General Duties.....................................................13

<PAGE>

  4.03.   Action upon Instruction............................................13
  4.04.   No Duties Except as Specified under Specified Documents
           or in Instructions................................................14
  4.05.   Restrictions.......................................................14
  4.06.   Prior Notice to Certificateholders with Respect to Certain Matters.14
  4.07.   Action by Certificateholders with Respect to Certain Matters.......15
  4.08.   Action by Certificateholders with Respect to Bankruptcy............15
  4.09.   Restrictions on Certificateholders' Power..........................15
  4.10.   Majority Control...................................................16

ARTICLE V

  Application of Trust Funds.................................................17
  5.01.   Distributions......................................................17
  5.02.   Method of Payment..................................................17
  5.03.   Tax Returns........................................................18
  5.04.   Statements to Certificateholders...................................18

ARTICLE VI

  Concerning the Owner Trustee...............................................19
  6.01.   Acceptance of Trusts and Duties....................................19
  6.02.   Furnishing of Documents............................................20
  6.03.   Representations and Warranties.....................................20
  6.04.   Reliance; Advice of Counsel........................................21
  6.05.   Not Acting in Individual Capacity..................................21
  6.06.   Owner Trustee Not Liable for Certificates or Related Documents.....21
  6.07.   Owner Trustee May Own Certificates and Notes.......................22
  6.08.   Payments from Owner Trust Estate...................................22
  6.09.   Doing Business in Other Jurisdictions..............................22
  6.10.   Liability of Certificate Registrar and Certificate Paying Agent....22

ARTICLE VII

  Compensation of Owner Trustee..............................................23
  7.01.   Owner Trustee's Fees and Expenses..................................23
  7.02.   Indemnification....................................................23

ARTICLE VIII

  Termination of Trust Agreement.............................................25
  8.01.   Termination of Trust Agreement.....................................25

ARTICLE IX

  Successor Owner Trustees and Additional Owner Trustees.....................27

<PAGE>

  9.01.   Eligibility Requirements for Owner Trustee.........................27
  9.02.   Replacement of Owner Trustee.......................................27
  9.03.   Successor Owner Trustee............................................27
  9.04.   Merger or Consolidation of Owner Trustee...........................28
  9.05.   Appointment of Co-Trustee or Separate Trustee......................28

ARTICLE X

  Miscellaneous..............................................................30
  10.01.  Amendments.........................................................30
  10.02.  No Legal Title to Owner Trust Estate...............................31
  10.03.  Limitations on Rights of Others....................................31
  10.04.  Notices............................................................32
  10.05.  Severability.......................................................32
  10.06.  Separate Counterparts..............................................32
  10.07.  Successors and Assigns.............................................32
  10.08.  No Petition........................................................32
  10.09.  No Recourse........................................................33
  10.10.  Headings...........................................................33
  10.11.  GOVERNING LAW......................................................33
  10.12.  Integration........................................................33
  10.13.  Benefits of Trust Agreement........................................33

Signatures ..................................................................40

EXHIBIT

Exhibit A - Form of Certificate.............................................A-1
Exhibit B - Certificate of Trust of AFC Trust Series _____-__...............B-1
Exhibit C - Form of Rule 144A Investment Representation.....................C-1
Exhibit D - Form of Certificate of Non-Foreign Status.......................D-1
Exhibit E - Form of Investment Letter.......................................E-1
Exhibit F - Form of Transfer Certificate....................................F-1
Exhibit G - Form of Plan Certification......................................G-1

<PAGE>

      This Trust Agreement, dated as of March 1, 2000 (as amended from time to
time, this "Trust Agreement"), between SUPERIOR BANK FSB, as depositor (the
"Depositor") and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as
owner trustee (the "Owner Trustee"),

                                WITNESSETH THAT:

      In consideration of the mutual agreements herein contained, the Depositor
and the Owner Trustee agree as follows:

                                    ARTICLE I

                                   Definitions

      Section 1.01. Definitions. For all purposes of this Trust Agreement,
except as otherwise expressly provided herein or unless the context otherwise
requires, capitalized terms not otherwise defined herein shall have the meanings
assigned to such terms in the Sale and Servicing Agreement, dated as of March 1,
2000, among AFC Trust Series 2000-1, as Issuer, and Superior Bank FSB, as Seller
and Servicer, and LaSalle Bank National Association, as Indenture Trustee, which
is incorporated by referenced herein. All other capitalized terms used herein
shall have the meanings specified herein.

      Section 1.02. Other Definitional Provisions.

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

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

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

<PAGE>
                                       2

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

      (e) Any agreement, instrument or statute defined or referred to herein or
in any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein; references to a
Person are also to its permitted successors and assigns.

<PAGE>
                                       3

                                   ARTICLE II

                                  Organization

      Section 2.01. Name. The trust created hereby (the "Trust") shall be known
as "AFC Trust Series 2000-1", in which name the Owner Trustee may conduct the
business of the Trust, make and execute contracts and other instruments on
behalf of the Trust and sue and be sued.

      Section 2.02. Office. The office of the Trust shall be in care of the
Owner Trustee at the Corporate Trust Office or at such other address in Delaware
as the Owner Trustee may designate by written notice to the Certificateholders
and the Depositor.

      Section 2.03. Purposes and Powers. The purpose of the Trust is and the
Trust shall have the power and authority to engage in the following activities:

            (i) to issue the Notes pursuant to the Indenture and the
      Certificates pursuant to this Trust Agreement and to sell the Notes and
      the Certificates;

            (ii) to pay the organizational, start-up and transactional expenses
      of the Trust;

            (iii) to assign, grant, transfer, pledge and convey the Mortgage
      Loans pursuant to the Indenture and to hold, manage and distribute to the
      Certificateholder pursuant to Section 5.01 any portion of the Mortgage
      Loans released from the Lien of, and remitted to the Trust pursuant to the
      Indenture;

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

            (v) if directed by holders of Certificates representing more than
      50% of the beneficial interests in the Trust, sell the Trust Estate
      subsequent to the discharge of the Indenture, all for the benefit of the
      holders of the Certificates;

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

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

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

<PAGE>
                                       4

      Section 2.04. Appointment of Owner Trustee. The Depositor hereby appoints
the Owner Trustee as trustee of the Trust effective as of the date hereof, to
have all the rights, powers and duties set forth herein. The Owner Trustee is
hereby authorized to execute and file the Certificate of Trust with the
Secretary of State of Delaware.

      Section 2.05. Initial Capital Contribution of Owner Trust Estate. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Trust,
as of the date hereof, the sum of $1. The Owner Trustee hereby acknowledges
receipt in trust from the Depositor, as of the date hereof, of the foregoing
contribution, which shall constitute the initial corpus of the Trust and shall
be deposited in the Certificate Distribution Account. The Owner Trustee also
acknowledges on behalf of the Trust the receipt in trust of the Mortgage Loans
and the rights with respect to the representations and warranties made by the
Seller under the Sale and Servicing Agreement which shall constitute the Owner
Trust Estate.

      Section 2.06. Declaration of Trust. The Owner Trustee hereby declares that
it shall hold the Owner Trust Estate in trust upon and subject to the conditions
set forth herein for the use and benefit of the Certificateholders, subject to
the obligations of the Trust under the Basic Documents. It is the intention of
the parties hereto that the Trust constitute a "business trust" under the
Business Trust Statute and that this Trust Agreement constitute the governing
instrument of such business trust. It is the intention of the parties hereto
that, for federal and state income and state and local franchise tax purposes,
the Trust shall not be treated as (i) an association subject separately to
taxation as a corporation, (ii) a "publicly traded partnership" as defined in
Treasury Regulation Section 1.7704-1 or (iii) a "taxable mortgage pool" as
defined in Section 7701(i) of the Code, and that the Notes shall be debt, and
the provisions of this Agreement shall be interpreted to further this intention.
Except as otherwise provided in this Trust Agreement, the rights of the
Certificateholders will be those of equity owners of the Trust. Effective as of
the date hereof, the Owner Trustee shall have all rights, powers and duties set
forth herein and in the Business Trust Statute with respect to accomplishing the
purposes of the Trust. It is the intention of the parties, that, as of the
closing date, the Trust shall be disregarded for federal income tax purposes. In
the event that the Trust Certificates are owned by more than one person, for
federal income tax purposes, then the Trust shall be treated as a partnership.

      Section 2.07. Liability of the Holders of the Certificates. (a) The
Holders of the Certificates shall be jointly and severally liable directly to
and shall indemnify any injured party for all losses, claims, damages,
liabilities and expenses of the Trust and the Owner Trustee (including expenses,
to the extent not paid out of the Owner Trust Estate) to the extent that Holders
of the Certificates would be liable if the Trust were a corporation under
Delaware corporate law; provided, however, that the Holders of the Certificates
shall not be liable for payments required to be made on the Notes or the
Certificates, or for any losses incurred by a Certificateholder in the capacity
of an investor in the Certificates or a Noteholder in the capacity of an
investor in the Notes. The Holders of the Certificates shall be liable for and
shall promptly pay any entity level taxes imposed on the Trust. In addition, any
third party creditors of the Trust, including the Note Insurer (other than in
connection with the obligation described in the preceding sentence for which the
Holders of the Certificates shall not be liable) shall be deemed third party
beneficiaries of this paragraph. The

<PAGE>
                                       5

obligations of the Holders of the Certificates under this paragraph shall be
evidenced by the Certificates.

            (b) Subject to subsection (a) above, the Certificateholder shall be
entitled to the same limitation of personal liability extended to stockholders
of private corporations for profit organized under the General Corporation Law
of the State of Delaware.

      Section 2.08. Title to Trust Property. Except with respect to the Mortgage
Loans, which will be assigned of record to the Indenture Trustee pursuant to the
Indenture, legal title to the Owner Trust Estate shall be vested at all times in
the Trust as a separate legal entity except where applicable law in any
jurisdiction requires title to any part of the Owner Trust Estate to be vested
in a trustee or trustees, in which case title shall be deemed to be vested in
the Owner Trustee, a co-trustee and/or a separate trustee, as the case may be.

      Section 2.09. Situs of Trust. The Trust will be located and administered
in the State of Delaware. All bank accounts maintained by the Owner Trustee on
behalf of the Trust shall be located in the State of Delaware or the State of
Illinois. The Trust shall not have any employees in any state other than
Delaware; provided, however, that nothing herein shall restrict or prohibit the
Owner Trustee from having employees within or without the State of Delaware or
taking actions outside the State of Delaware in order to comply with Section
2.03. Payments will be received by the Trust only in Delaware, New York or
Illinois, and payments will be made by the Trust only from Delaware, New York or
Illinois. The only office of the Trust will be at the Corporate Trust Office in
Delaware.

      Section 2.10. Representations and Warranties of the Depositor. The
Depositor hereby represents and warrants to the Owner Trustee that:

                  (i) The Depositor is a federally chartered stock savings bank
      duly organized, validly existing and in good standing under the laws of
      the United States, with power and authority to own its properties and to
      conduct its business as such properties are currently owned and such
      business is presently conducted.

                  (ii) The Depositor is duly qualified to do business and is in
      good standing and has obtained all necessary licenses and approvals in all
      jurisdictions in which the ownership or lease of its property or the
      conduct of its business shall require such qualifications and in which the
      failure to so qualify would have a material adverse effect on the
      business, properties, assets or condition (financial or other) of the
      Depositor.

                  (iii) The Depositor has the power and authority to execute and
      deliver this Trust Agreement and to carry out its terms; the Depositor has
      full power and authority to convey and assign the property to be conveyed
      and assigned to and deposited with the Trust as part of the Owner Trust
      Estate and the Depositor has duly authorized such conveyance and
      assignment and deposit to the Trust by all necessary corporate action; and
      the execution, delivery and performance of this Trust Agreement have been
      duly authorized by the Depositor by all necessary corporate action.

<PAGE>
                                       6

                  (iv) The consummation of the transactions contemplated by this
      Trust Agreement and the fulfillment of the terms hereof do not conflict
      with, result in any breach of any of the terms and provisions of, or
      constitute (with or without notice or lapse of time) a default under, the
      articles of incorporation or bylaws of the Depositor, or any indenture,
      agreement or other instrument to which the Depositor is a party or by
      which it is bound; nor result in the creation or imposition of any Lien
      upon any of its properties pursuant to the terms of any such indenture,
      agreement or other instrument (other than pursuant to the Basic
      Documents); nor violate any law or, to the best of the Depositor's
      knowledge, any order, rule or regulation applicable to the Depositor of
      any court or of any federal or state regulatory body, administrative
      agency or other governmental instrumentality having jurisdiction over the
      Depositor or its properties.

      Section 2.11. Reserved.

      Section 2.12. Investment Company. Neither the Depositor nor any Holder of
a Certificate shall take any action which would cause the Trust to become an
"investment company" which would be required to register under the Investment
Company Act.

<PAGE>
                                       7

                                   ARTICLE III

                        Conveyance of the Mortgage Loans;
                                  Certificates

      Section 3.01. Reserved.

      Section 3.02. Initial Ownership. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.05, the Depositor shall
direct the Owner Trustee to execute and deliver the Trust Certificates.

      Section 3.03. The Certificates. The Certificates shall be issued in the
form of one or more Certificates each representing not less than a 10%
Certificate Percentage Interest. The Certificates shall initially be registered
in the name of Superior Bank FSB. Each Class of Certificates shall be executed
on behalf of the Trust by manual or facsimile signature of an authorized officer
or authorized signatory of the Owner Trustee and authenticated in the manner
provided in Section 3.04. Certificates bearing the manual or facsimile
signatures of individuals who were, at the time when such signatures shall have
been affixed, authorized to sign on behalf of the Trust, shall be validly issued
and entitled to the benefit of this Trust Agreement, notwithstanding that such
individuals or any of them shall have ceased to be so authorized prior to the
authentication and delivery of such Certificates or did not hold such offices at
the date of authentication and delivery of such Certificates. A Person shall
become a Certificateholder and shall be entitled to the rights and subject to
the obligations of a Certificateholder hereunder upon such Person's acceptance
of a Certificate duly registered in such Person's name, pursuant to Section
3.05.

      A transferee of a Certificate shall become a Certificateholder and shall
be entitled to the rights and subject to the obligations of a Certificateholder
hereunder upon such transferee's acceptance of a Certificate duly registered in
such transferee's name pursuant to and upon satisfaction of the conditions set
forth in Section 3.05.

      Each of the Certificates is intended to be a "security" governed by
Article 8 of the Uniform Commercial Code as in effect in the State of New York
and any other applicable jurisdiction, to the extent that any of such laws may
be applicable.

      Section 3.04. Authentication of Certificates. The Owner Trustee shall
cause all Certificates issued hereunder to be executed and authenticated on
behalf of the Trust, delivered to or upon the written order of the Depositor,
signed by its chairman of the board, its president or any vice president,
without further corporate action by the Depositor, in authorized denominations.
No Certificate shall entitle its holder to any benefit under this Trust
Agreement or be valid for any purpose unless there shall appear on such
Certificate a certificate of authentication substantially in the form set forth
in Exhibit A, executed by the Owner Trustee or the Certificate Registrar by
manual signature; such authentication shall constitute conclusive evidence that
such Certificate shall have been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication.

<PAGE>
                                       8

      Section 3.05. Registration of and Limitations on Transfer and Exchange of
Certificates. The Certificate Registrar shall keep or cause to be kept, a
Certificate Register in which, subject to such reasonable regulations as it may
prescribe, the Certificate Registrar shall provide for the registration of
Certificates and of transfers and exchanges of Certificates as herein provided.
LaSalle Bank National Association shall be the initial Certificate Registrar. If
the Certificate Registrar resigns or is removed, the Trust shall appoint a
successor Certificate Registrar.

      Subject to satisfaction of the conditions set forth below with respect to
the Certificates, upon surrender for registration of transfer of any Certificate
at the office or agency maintained pursuant to Section 3.09, the Owner Trustee
or the Certificate Registrar shall execute, authenticate and deliver (or shall
cause LaSalle Bank National Association as its authenticating agent to
authenticate and deliver) in the name of the designated transferee or
transferees, one or more new Certificates in authorized denominations of a like
aggregate amount dated the date of authentication by the Owner Trustee or the
Certificate Registrar. At the option of a Holder, Certificates may be exchanged
for other Certificates of authorized denominations of a like aggregate amount
upon surrender of the Certificates to be exchanged at the office or agency
maintained pursuant to Section 3.09.

      Every Certificate presented or surrendered for registration of transfer or
exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Certificate Registrar duly executed by the Holder or such
Holder's attorney duly authorized in writing. Each Certificate surrendered for
registration of transfer or exchange shall be cancelled and subsequently
disposed of by the Certificate Registrar in accordance with its customary
practice.

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

      No Person shall become a Certificateholder until it shall establish its
non-foreign status by submitting to the Certificate Paying Agent an IRS form W-9
and the Certificate of Non-Foreign Status set forth in Exhibit D hereto.

      No transfer, sale, pledge or other disposition of a Certificate shall be
made unless such transfer, sale, pledge or other disposition is exempt from the
registration requirements of the Securities Act and any applicable state
securities laws or is made in accordance with said Act and laws. In the event of
any such transfer, the Certificate Registrar or the Depositor shall prior to
such transfer require the transferee to execute (A) either (i) (a) an investment
letter in substantially the form attached hereto as Exhibit C (or in such form
and substance reasonably satisfactory to the Certificate Registrar and the
Depositor) which investment letters shall not be an expense of the Trust, the
Owner Trustee, the Certificate Registrar, the Servicer or the Depositor and
which investment letter states that, among other things, such transferee (a) is
a "qualified institutional buyer" as defined under Rule 144A, acting for its own
account or the accounts of other "qualified institutional buyers" as defined
under Rule 144A, and (b) is aware that the proposed transferor intends to rely
on the exemption from registration requirements under the Securities Act of
1933, as amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel
acceptable to and in form and substance

<PAGE>
                                       9

satisfactory to the Certificate Registrar and the Depositor that such transfer
may be made pursuant to an exemption, describing the applicable exemption and
the basis therefor, from said Act and laws or is being made pursuant to said Act
and laws, which Opinion of Counsel shall not be an expense of the Trust, the
Owner Trustee, the Certificate Registrar, the Servicer or the Depositor and (b)
the transferee executes a representation letter, substantially in the form of
Exhibit D hereto, and the transferor executes a representation letter,
substantially in the form of Exhibit E hereto, each acceptable to and in form
and substance satisfactory to the Certificate Registrar and the Depositor
certifying the facts surrounding such transfer, which representation letters
shall not be an expense of the Trust, the Owner Trustee, the Certificate
Registrar, the Servicer or the Depositor and (B) the Certificate of Non-Foreign
Status (in substantially the form attached hereto as Exhibit D) acceptable to
and in form and substance reasonably satisfactory to the Certificate Registrar
and the Depositor, which certificate shall not be an expense of the Trust, the
Owner Trustee, the Certificate Registrar, the Servicer or the Depositor. The
Holder of a Certificate desiring to effect such transfer shall, and does hereby
agree to, indemnify the Trust, the Owner Trustee, the Certificate Registrar, the
Servicer and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.

      No transfer of Certificates or any interest therein shall be made to any
employee benefit plan or certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and bank
collective investment funds and insurance company general or separate accounts
in which such plans, accounts or arrangements are invested, that are subject to
ERISA, or Section 4975 of the Code (collectively, "Plan"), any Person acting,
directly or indirectly, on behalf of any such Plan or any Person acquiring such
Certificates with "plan assets" of a Plan within the meaning of the Department
of Labor regulation promulgated at 29 C.F.R. ss.2510.3-101 ("Plan Assets")
unless the Depositor, the Owner Trustee, the Certificate Registrar and the
Servicer are provided with an Opinion of Counsel which establishes to the
satisfaction of the Depositor, the Owner Trustee, the Certificate Registrar and
the Servicer that the purchase of such Certificates is permissible under
applicable law, will not constitute or result in any non-exempt prohibited
transaction under ERISA or Section 4975 of the Code and will not subject the
Depositor, the Owner Trustee, the Certificate Registrar or the Servicer to any
obligation or liability (including obligations or liabilities under ERISA or
Section 4975 of the Code) in addition to those undertaken in this Agreement,
which Opinion of Counsel shall not be an expense of the Depositor, the Owner
Trustee, the Certificate Registrar or the Servicer. In lieu of such Opinion of
Counsel, a Plan, any Person acting, directly or indirectly, on behalf of any
such Plan or any Person acquiring such Certificates with Plan Assets of a Plan
may provide a certification in the form of Exhibit G to this Agreement, which
the Depositor, the Owner Trustee, the Certificate Registrar and the Servicer may
conclusively rely upon without further inquiry or investigation. Neither an
Opinion of Counsel nor a certification will be required in connection with the
initial transfer of any such Certificate by the Depositor to an affiliate of the
Depositor (in which case, the Depositor or any affiliate thereof shall have
deemed to have represented that such affiliate is not a Plan or a Person
investing Plan Assets of any Plan) and the Certificate Registrar and the Owner
Trustee shall be entitled to conclusively rely upon a representation (which,
upon the request of the Owner Trustee or the Certificate Registrar, shall be a
written representation) from the Depositor of the status of such transferee as
an affiliate of the Depositor.

<PAGE>
                                       10

      No offer, sale, transfer, pledge, hypothecation or other disposition
(including any pledge, sale or transfer under a repurchase transaction or
securities loan) of any Certificate shall be made to any transferee unless,
prior to such disposition, the proposed transferor delivers to the Owner Trustee
an Opinion of Counsel, rendered by a law firm generally recognized to be
qualified to opine concerning the tax aspects of asset securitization, to the
effect that such transfer (including any disposition permitted following any
default under any pledge or repurchase transaction) will not cause the Trust to
be (i) treated as an association taxable as a corporation for federal income tax
purposes, (ii) taxable as a taxable mortgage pool as defined in Section 7701(i)
of the Code or (iii) taxable as a "publicly traded partnership" as defined in
Treasury Regulation section 1.7704-1. Notwithstanding the foregoing, the
provisions of this paragraph shall not apply to the initial transfer of the
Certificates to the Depositor.

      Prior to the effectiveness of any transfer of a Trust Certificate by the
Depositor to an affiliate of the Depositor, an opinion from a nationally
recognized law firm shall be delivered to the Indenture Trustee, to the effect
that the assets and liabilities of the proposed transferee should not, upon the
bankruptcy of such proposed transferee, be consolidated with those of the Trust
(a "Non- Consolidation Opinion").

      Section 3.06. Mutilated, Destroyed, Lost or Stolen Certificates. If (a)
any mutilated Certificate shall be surrendered to the Certificate Registrar, or
if the Certificate Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Certificate and (b) there shall be delivered
to the Certificate Registrar and the Owner Trustee such security or indemnity as
may be reasonably required by them to save each of them harmless, then in the
absence of notice to the Certificate Registrar or the Owner Trustee that such
Certificate has been acquired by a bona fide purchaser, the Owner Trustee or the
Certificate Registrar shall execute on behalf of the Trust and the Owner Trustee
or the Certificate Registrar (or shall cause LaSalle Bank National Association
as its authenticating agent to authenticate and deliver), shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like tenor and denomination. In
connection with the issuance of any new Certificate under this Section 3.06, the
Owner Trustee or the Certificate Registrar may require the payment of a sum
sufficient to cover any expenses of the Owner Trustee or the Certificate
Registrar (including fees and expenses of counsel) and any tax or other
governmental charge that may be imposed in connection therewith. Any duplicate
Certificate issued pursuant to this Section 3.06 shall constitute conclusive
evidence of ownership in the Trust, as if originally issued, whether or not the
lost, stolen or destroyed Certificate shall be found at any time.

      Section 3.07. Persons Deemed Certificateholders. Prior to due presentation
of a Certificate for registration of transfer, the Owner Trustee, the
Certificate Registrar or any Certificate Paying Agent may treat the Person in
whose name any Certificate is registered in the Certificate Register as the
owner of such Certificate for the purpose of receiving distributions pursuant to
Section 5.02 and for all other purposes whatsoever, and none of the Trust, the
Owner Trustee, the Certificate Registrar or any Paying Agent shall be bound by
any notice to the contrary.

      Section 3.08. Access to List of Certificateholders' Names and Addresses.
The Certificate Registrar shall furnish or cause to be furnished to the
Depositor or the Owner Trustee, within 15 days

<PAGE>
                                       11

after receipt by the Certificate Registrar of a written request therefor from
the Depositor or the Owner Trustee, a list, in such form as the Depositor or the
Owner Trustee, as the case may be, may reasonably require, of the names and
addresses of the Certificateholders as of the most recent Record Date. Each
Holder, by receiving and holding a Certificate, shall be deemed to have agreed
not to hold any of the Trust, the Depositor, the Certificate Registrar or the
Owner Trustee accountable by reason of the disclosure of its name and address,
regardless of the source from which such information was derived.

      Section 3.09. Maintenance of Office or Agency. The Certificate Registrar
on behalf of the Trust, shall maintain an office or offices or agency or
agencies where Certificates may be surrendered for registration of transfer or
exchange. The Owner Trustee on behalf of the Trust shall maintain in Wilmington,
Delaware, an office where notices and demands to or upon the Owner Trustee in
respect of the Certificates and the Basic Documents may be served. The Owner
Trustee initially designates its Corporate Trust Office as its office for such
purposes. The Certificate Registrar initially designates its Corporate Trust
Office as its office for such purposes and shall give prompt written notice to
the Depositor and the Certificateholders of any change in the location of the
Certificate Register or any such office or agency.

      Section 3.10. Certificate Paying Agent. (a) The Certificate Paying Agent
shall make distributions to Certificateholders from the Certificate Distribution
Account on behalf of the Trust in accordance with the provisions of the
Certificates and Section 5.01 hereof from payments remitted to the Certificate
Paying Agent by the Indenture Trustee pursuant to Section 3.05 of the Indenture.
The Trust hereby appoints LaSalle Bank National Association as Certificate
Paying Agent and LaSalle Bank National Association hereby accepts such
appointment and further agrees that it will be bound by the provisions of this
Trust Agreement relating to the Certificate Paying Agent and shall:

                  (i) hold all sums held by it for the payment of amounts due
      with respect to the Certificates in trust for the benefit of the Persons
      entitled thereto until such sums shall be paid to such Persons or
      otherwise disposed of as herein provided;

                  (ii) give the Owner Trustee notice of any default by the Trust
      of which it has actual knowledge in the making of any payment required to
      be made with respect to the Certificates;

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

                  (iv) not resign from its position as Certificate Paying Agent
      except that it shall immediately resign as Certificate Paying Agent and
      forthwith pay to the Owner Trustee on behalf of the Trust all sums held by
      it in trust for the payment of Certificates if at any time it ceases to
      meet the standards under this Section 3.10 required to be met by the
      Certificate Paying Agent at the time of its appointment;

<PAGE>
                                       12

                  (v) comply with all requirements of the Code with respect to
      the withholding from any payments made by it on any Certificates of any
      applicable withholding taxes imposed thereon and with respect to any
      applicable reporting requirements in connection therewith; and

                  (vi) not institute bankruptcy proceedings against the Issuer
      in connection with this Trust Agreement.

      (b) The Trust may revoke such power and remove the Certificate Paying
Agent if it determines in its sole discretion that the Certificate Paying Agent
shall have failed to perform its obligations under this Trust Agreement in any
material respect. In the event that LaSalle Bank National Association shall no
longer be the Certificate Paying Agent under this Trust Agreement and Paying
Agent under the Indenture, the Trust shall appoint a successor to act as
Certificate Paying Agent (which shall be a bank or trust company) and which
shall also be the successor Paying Agent under the Indenture. The Owner Trustee
shall cause such successor Certificate Paying Agent or any additional
Certificate Paying Agent appointed by the Trust to execute and deliver to the
Owner Trustee an instrument accepting appointment and agreeing to be bound by
the terms of this Trust Agreement as it relates to the Certificate Paying Agent.
The Certificate Paying Agent shall return all unclaimed funds to the Trust and
upon removal of a Certificate Paying Agent such Certificate Paying Agent shall
also return all funds in its possession to the Trust. The provisions of Sections
6.01, 6.03, 6.04 and 7.01 shall apply to the Certificate Paying Agent to the
extent applicable. Any reference in this Agreement to the Certificate Paying
Agent shall include any co-paying agent unless the context requires otherwise.

      (c) The Certificate Paying Agent, for the benefit of the
Certificateholders, shall establish and maintain with itself a trust account
(the "Certificate Distribution Account") in which the Indenture Trustee,
pursuant to the terms of the Indenture, shall deposit payments, if any, made
pursuant to the Indenture on each Payment Date. The establishment of the
Certificate Distribution Account shall be evidenced by a letter agreement. The
Certificate Paying Agent shall make all distributions to Certificateholders,
from moneys on deposit in the Certificate Distribution Account, in accordance
with Section 5.01 hereof.

<PAGE>
                                       13

                                   ARTICLE IV

                      Authority and Duties of Owner Trustee

      Section 4.01. General Authority. The Owner Trustee is authorized and
directed to execute and deliver the Basic Documents to which the Trust is to be
a party and each certificate or other document attached as an exhibit to or
contemplated by the Basic Documents to which the Trust is to be a party and any
amendment or other agreement or instrument described herein, as evidenced
conclusively by the Owner Trustee's execution thereof. In addition to the
foregoing, the Owner Trustee is authorized, but shall not be obligated, except
as otherwise provided in this Trust Agreement, to take all actions required of
the Trust pursuant to the Basic Documents.

      Section 4.02. General Duties. It shall be the duty of the Owner Trustee to
discharge (or cause to be discharged) all of its responsibilities pursuant to
the terms of this Trust Agreement and the Basic Documents to which the Trust is
a party and to administer the Trust in the interest of the Certificateholders,
subject to the Basic Documents and in accordance with the provisions of this
Trust Agreement. Notwithstanding the foregoing, the Owner Trustee shall be
deemed to have discharged its duties and responsibilities hereunder and under
the Basic Documents to the extent that the Administrator has agreed in the
Administration Agreement to perform any act or to discharge any duty of the
Trust or the Owner Trustee hereunder or under any Basic Document, and the Owner
Trustee shall not be liable for the default or failure of such person to carry
out such obligations.

      Section 4.03. Action upon Instruction. (a) Subject to Article IV and in
accordance with the terms of the Basic Documents, the Certificateholders
evidencing not less than a majority of the Percentage Interests in the
Certificates may by written instruction direct the Owner Trustee in the
management of the Trust. Such direction may be exercised at any time by written
instruction of the Certificateholders pursuant to Article IV.

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

      (c) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Trust Agreement or
under any Basic Document, or in the event that the Owner Trustee is unsure as to
the application of any provision of this Trust Agreement or any Basic Document
or any such provision is ambiguous as to its application, or is, or appears to
be, in conflict with any other applicable provision, or in the event that this
Trust Agreement permits any determination by the Owner Trustee or is silent or
is incomplete as to the course of action that the Owner Trustee is required to
take with respect to a particular set of facts, the Owner Trustee shall promptly
give notice (in such form as shall be appropriate under the circumstances) to
the Certificateholders (with a copy to the Note Insurer) requesting instruction
as to the course of action to be adopted, and to the extent the Owner Trustee
acts in good faith in accordance with any written instruction of the
Certificateholders evidencing not less than a majority of the Percentage
Interests

<PAGE>
                                       14

in the Certificates, the Owner Trustee shall not be liable on account of such
action to any Person. If the Owner Trustee shall not have received appropriate
instruction within 10 days of such notice (or within such shorter period of time
as reasonably may be specified in such notice or may be necessary under the
circumstances) it may, but shall be under no duty to, take or refrain from
taking such action not inconsistent with this Trust Agreement or the Basic
Documents, as it shall deem to be in the best interests of the
Certificateholders and the Owner Trustee shall have no liability to any Person
for such action or inaction.

      Section 4.04. No Duties Except as Specified under Specified Documents or
in Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee is a party, except as expressly provided (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee pursuant to this Trust Agreement, (ii) in accordance with the Basic
Documents and (iii) in accordance with any document or instruction delivered to
the Owner Trustee pursuant to Section 4.03; and no implied duties or obligations
shall be read into this Trust Agreement or any Basic Document against the Owner
Trustee. The Owner Trustee shall have no responsibility for filing any financing
or continuation statement in any public office at any time or to otherwise
perfect or maintain the perfection of any security interest or lien granted to
it hereunder or to prepare or file any Securities and Exchange Commission filing
for the Trust or to record this Trust Agreement or any Basic Document. The Owner
Trustee nevertheless agrees that it will, at its own cost and expense, promptly
take all action as may be necessary to discharge any liens on any part of the
Owner Trust Estate that result from actions by, or claims against, the Owner
Trustee that are not related to the ownership or the administration of the Owner
Trust Estate.

      Section 4.05. Restrictions. (a) The Owner Trustee or the Depositor (or an
Affiliate thereof) shall not take any action (x) that is inconsistent with the
purposes of the Trust set forth in Section 2.03 or (y) that, to the actual
knowledge of the Owner Trustee based on an Opinion of Counsel rendered by a law
firm generally recognized to be qualified to opine concerning the tax aspects of
asset securitization, would result in the Trust becoming taxable as a
corporation for federal income tax purposes or (z) would result in the amendment
or modification of the Basic Documents or this Trust Agreement without the prior
written consent of the Note Insurer, if required. The Certificateholders shall
not direct the Owner Trustee to take action that would violate the provisions of
this Section 4.05.

      (b) The Owner Trustee shall not convey or transfer any of the Trust's
properties or assets, including those included in the Trust Estate, to any
person unless it shall have received an Opinion of Counsel to the effect that
(a) such transaction will not have any material adverse tax consequence to the
Trust or any Certificateholder and (b) such conveyance or transfer shall not
violate the provisions of Section 3.16(b) of the Indenture.

      Section 4.06. Prior Notice to Certificateholders with Respect to Certain
Matters. With respect to the following matters, the Owner Trustee shall not take
action unless at least 30 days before the taking of such action, the Owner
Trustee shall have notified the Certificateholders in

<PAGE>
                                       15

writing of the proposed action and the Certificateholders shall not have
notified the Owner Trustee in writing prior to the 30th day after such notice is
given that such Certificateholders have withheld consent or provided alternative
direction:

      (a) the initiation of any claim or lawsuit by the Trust (except claims or
lawsuits brought in connection with the collection of cash distributions due and
owing under the Mortgage Loans) and the compromise of any action, claim or
lawsuit brought by or against the Trust (except with respect to the
aforementioned claims or lawsuits for collection of cash distributions due and
owing under the Mortgage Loans);

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

      (c) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is required;

      (d) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and such
amendment materially adversely affects the interest of the Certificateholders;
and

      (e) the appointment pursuant to the Indenture of a successor Note
Registrar, Paying Agent or Indenture Trustee or pursuant to this Trust Agreement
of a successor Certificate Registrar or Certificate Paying Agent or the consent
to the assignment by the Note Registrar, Paying Agent, Indenture Trustee,
Certificate Registrar or Certificate Paying Agent of its obligations under the
Indenture or this Trust Agreement, as applicable.

      Section 4.07. Action by Certificateholders with Respect to Certain
Matters. The Owner Trustee shall not have the power, except upon the direction
of the Certificateholders, to remove the Servicer under the Servicing Agreement
in accordance with Section 10.01 thereof. The Owner Trustee shall take the
actions referred to in the preceding sentence only upon written instructions
signed by the Certificateholders.

      Section 4.08. Action by Certificateholders with Respect to Bankruptcy. The
Owner Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy relating to the Trust without the unanimous prior approval of all
Certificateholders and the consent of the Note Insurer, the Noteholders and the
delivery to the Owner Trustee by each such Certificateholder of a certificate
certifying that such Certificateholder reasonably believes that the Trust is
insolvent. This paragraph shall survive for one year following termination of
this Trust Agreement.

      Section 4.09. Restrictions on Certificateholders' Power. The
Certificateholders shall not direct the Owner Trustee to take or to refrain from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Trust Agreement or any of the Basic
Documents or would be contrary to Section 2.03, nor shall the Owner Trustee be
obligated to follow any such direction, if given.

<PAGE>
                                       16

      Section 4.10. Majority Control. Except as expressly provided herein, any
action that may be taken by the Certificateholders under this Trust Agreement
may be taken by the Holders of Certificates evidencing not less than a majority
of the Percentage Interests in the Certificates. Except as expressly provided
herein, any written notice of the Certificateholders delivered pursuant to this
Trust Agreement shall be effective if signed by Holders of Certificates
evidencing not less than a majority of the Percentage Interests in the
Certificates at the time of the delivery of such notice.

<PAGE>
                                       17

                                    ARTICLE V

                           Application of Trust Funds

      Section 5.01. Distributions. (a)(i) On each Payment Date, the Certificate
Paying Agent shall distribute to the Certificateholders all funds on deposit in
the Certificate Distribution Account and available for distribution on such
Payment Date in the following order of priority, in each case to the extent of
amounts available in the Certificate Distribution Account:

            (A) first, to the Owner Trustee, in respect of any amount owing to
      the Owner Trustee hereunder and in respect of any expenses of the Trust
      remaining unpaid pursuant to Section 7.01 of this Agreement; and

            (B) second, to the Certificateholders, on a pro rata basis based on
      each Certificateholder's Percentage Interest, the remainder of amounts
      available.

      (ii) In the event that the Certificate Paying Agent receives amounts in
connection with Section 5.04 of the Indenture, such amounts shall be distributed
in the order of priority set forth in (a)(i) above.

      (b) In the event that any withholding tax is imposed on the distributions
(or allocations of income) to a Certificateholder, such tax shall reduce the
amount otherwise distributable to the Certificateholder in accordance with this
Section 5.01. The Certificate Paying Agent is hereby authorized and directed to
retain or cause to be retained from amounts otherwise distributable to the
Certificateholders sufficient funds for the payment of any tax that is legally
owed by the Trust (but such authorization shall not prevent the Owner Trustee
from contesting any such tax in appropriate proceedings, and withholding payment
of such tax, if permitted by law, pending the outcome of such proceedings). The
amount of any withholding tax imposed with respect to a Certificateholder shall
be treated as cash distributed to such Certificateholder at the time it is
withheld by the Certificate Paying Agent and remitted to the appropriate taxing
authority. If there is a possibility that withholding tax is payable with
respect to a distribution (such as a distribution to a non-U.S.
Certificateholder), the Certificate Paying Agent may in its sole discretion
withhold such amounts in accordance with this paragraph (b).

      (c) Distributions to Certificateholders shall be subordinated to the
creditors of the Trust, including the Noteholders and the Note Insurer.

      Section 5.02. Method of Payment. Subject to Section 8.01(c), distributions
required to be made to Certificateholders on any Payment Date as provided in
Section 5.01 shall be made to each Certificateholder of record on the preceding
Record Date either by, in the case of any Certificateholder owning 100% of the
Certificates, wire transfer in immediately available funds to the account of
such Holder at a bank or other entity having appropriate facilities therefor, if
such Certificateholder shall have provided to the Certificate Registrar
appropriate written instructions at least five Business Days prior to such
Payment Date or, if not, by check mailed to such Certificateholder at the
address of such Holder appearing in the Certificate Register.

<PAGE>
                                       18

      Section 5.03. Tax Returns. The Owner Trustee shall cooperate with the
Servicer in the Servicer's obligation to (a) maintain (or cause to be
maintained) the books of the Trust on the fiscal year basis of the person that
is the Holder of 100% of the Certificates or, if the Certificates are owned by
more than one person, then in accordance with the rules governing partnerships,
(b) deliver (or cause to be delivered) to each Certificateholder as may be
required by the Code and applicable Treasury Regulations, such information as
may be required to enable each Certificateholder to prepare its federal and
state income tax returns, (c) prepare and file or cause to be prepared and filed
such tax returns relating to the Trust as may be required by the Code and
applicable Treasury Regulations (making such elections as may from time to time
be required or appropriate under any applicable state or federal statutes, rules
or regulations) and (d) collect or cause to be collected any withholding tax as
described in and in accordance with Section 5.01 of this Trust Agreement with
respect to income or distributions to Certificateholders and prepare or cause to
be prepared the appropriate forms relating thereto. The Owner Trustee shall sign
all tax and information returns prepared or caused to be prepared by the
Servicer and delivered to the Owner Trustee in final execution form pursuant to
this Section 5.03 at the request of the Servicer, and in doing so shall rely
entirely upon, and shall have no liability for information or calculations
provided by, the Servicer.

      Notwithstanding the foregoing, it is the intention of the parties that the
Issuer, as of the Closing Date and for so long as the equity is held by one
person for federal income tax purposes, be treated for federal income tax
purposes as a disregarded entity, which such entity need not apply for a
taxpayer identification number or file an entity-level tax return. In the event
the equity of the Issuer is held by more than one person for federal income tax
purposes, the Servicer shall file an application with the IRS for a taxpayer
identification number with respect to the Issuer and prepare or cause to be
prepared and/or file partnership tax returns including the partnership
information return on Form 1065 in connection with the transactions contemplated
hereby.

      Section 5.04. Statements to Certificateholders. On each Payment Date, the
Certificate Paying Agent shall send to each Certificateholder the statement or
statements provided to the Owner Trustee and the Certificate Paying Agent by the
Indenture Trustee pursuant to Section 7.05 of the Indenture with respect to such
Payment Date.

<PAGE>
                                       19

                                   ARTICLE VI

                          Concerning the Owner Trustee

      Section 6.01. Acceptance of Trusts and Duties. The Owner Trustee accepts
the trusts hereby created and agrees to perform its duties hereunder with
respect to such trusts but only upon the terms of this Trust Agreement. The
Owner Trustee and the Certificate Paying Agent also agree to disburse all moneys
actually received by it constituting part of the Owner Trust Estate upon the
terms of the Basic Documents and this Trust Agreement. The Owner Trustee shall
not be liable hereunder or under any Basic Document under any circumstances,
except (i) for its own willful misconduct, gross negligence or bad faith (ii) in
the case of the inaccuracy of any representation or warranty contained in
Section 6.03 expressly made by the Owner Trustee. In particular, but not by way
of limitation (and subject to the exceptions set forth in the preceding
sentence):

      (a) The Owner Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in accordance with the instructions of the
Certificateholders permitted under this Trust Agreement;

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

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

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

      (e) The execution, delivery, authentication and performance by it of this
Trust Agreement will not require the authorization, consent or approval of, the
giving of notice to, the filing or registration with, or the taking of any other
action with respect to, any governmental authority or agency;

      (f) The Owner Trustee shall not be liable for the default or misconduct of
the Depositor, Indenture Trustee, Certificate Registrar or the Servicer under
any of the Basic Documents or otherwise and the Owner Trustee shall have no
obligation or liability to perform the obligations of

<PAGE>
                                       20

the Trust under this Trust Agreement or the Basic Documents that are required to
be performed by the Indenture Trustee under the Indenture or the Seller under
the Sale and Servicing Agreement; and

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

      (h) The Owner Trustee shall not be liable for any errors in judgment made
in good faith by a Responsible Officer of the Owner Trustee.

      Section 6.02. Furnishing of Documents. The Owner Trustee shall furnish to
the Securityholders promptly upon receipt of a written reasonable request
therefor, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Trust under the Basic Documents.

      Section 6.03. Representations and Warranties. The Owner Trustee hereby
represents and warrants to the Depositor, for the benefit of the
Certificateholders, that:

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

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

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

      (d) This Trust Agreement, assuming due authorization, execution and
delivery by the Owner Trustee and the Depositor, constitutes a valid, legal and
binding obligation of the Owner Trustee, enforceable against it in accordance
with the terms hereof subject to applicable bankruptcy, insolvency,
reorganization, moratorium and other laws affecting the enforcement of
creditors' rights

<PAGE>
                                       21

generally and to general principles of equity, regardless of whether such
enforcement is considered in a proceeding in equity or at law;

      (e) The Owner Trustee is not in default with respect to any order or
decree of any court or any order, regulation or demand of any Federal, state,
municipal or governmental agency, which default might have consequences that
would materially and adversely affect the condition (financial or other) or
operations of the Owner Trustee or its properties or might have consequences
that would materially adversely affect its performance hereunder; and

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

      Section 6.04. Reliance; Advice of Counsel. (a) The Owner Trustee shall
incur no liability to anyone in acting upon any signature, instrument, notice,
resolution, request, consent, order, certificate, report, opinion, note, or
other document or paper believed by it to be genuine and believed by it to be
signed by the proper party or parties. The Owner Trustee may accept a certified
copy of a resolution of the board of directors or other governing body of any
corporate party as conclusive evidence that such resolution has been duly
adopted by such body and that the same is in full force and effect. As to any
fact or matter the method of determination of which is not specifically
prescribed herein, the Owner Trustee may for all purposes hereof rely on a
certificate, signed by the president or any vice president or by the treasurer
or other authorized officers of the relevant party, as to such fact or matter
and such certificate shall constitute full protection to the Owner Trustee for
any action taken or omitted to be taken by it in good faith in reliance thereon.

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

      Section 6.05. Not Acting in Individual Capacity. Except as provided in
this Article VI, in accepting the trusts hereby created Wilmington Trust Company
acts solely as Owner Trustee hereunder and not in its individual capacity, and
all Persons having any claim against the Owner Trustee by reason of the
transactions contemplated by this Trust Agreement or any Basic Document shall
look only to the Owner Trust Estate for payment or satisfaction thereof.

      Section 6.06. Owner Trustee Not Liable for Certificates or Related
Documents. The recitals contained herein and in the Certificates (other than the
signatures of the Owner Trustee on the

<PAGE>
                                       22

Certificates) shall be taken as the statements of the Depositor, and the Owner
Trustee assumes no responsibility for the correctness thereof. The Owner Trustee
makes no representations as to the validity or sufficiency of this Trust
Agreement, of any Basic Document or of the Certificates (other than the
signatures of the Owner Trustee on the Certificates) or the Notes, or of any
Related Documents. The Owner Trustee shall at no time have any responsibility or
liability with respect to the sufficiency of the Owner Trust Estate or its
ability to generate the payments to be distributed to Certificateholders under
this Trust Agreement or the Noteholders under the Indenture, including
compliance by the Depositor or the Seller with any warranty or representation
made under any Basic Document or in any related document or the accuracy of any
such warranty or representation, or any action of the Certificate Paying Agent,
the Certificate Registrar or the Indenture Trustee taken in the name of the
Owner Trustee.

      Section 6.07. Owner Trustee May Own Certificates and Notes. The Owner
Trustee in its individual or any other capacity may, subject to Section 3.05,
become the owner or pledgee of Certificates or Notes and may deal with the
Depositor, the Seller, the Certificate Paying Agent, the Certificate Registrar
and the Indenture Trustee in transactions with the same rights as it would have
if it were not Owner Trustee.

      Section 6.08. Payments from Owner Trust Estate. All payments to be made by
the Owner Trustee or Paying Agent under this Trust Agreement or any of the Basic
Documents to which the Owner Trustee is a party shall be made only from the
income and proceeds of the Owner Trust Estate or from other amounts required to
be provided by the Certificateholders and only to the extent that the Owner
Trust shall have received income or proceeds from the Owner Trust Estate or the
Certificateholders to make such payments in accordance with the terms hereof.
Wilmington Trust Company, in its individual capacity, shall not be liable for
any amounts payable under this Trust Agreement or any of the Basic Documents to
which the Owner Trustee is a party.

      Section 6.09. Doing Business in Other Jurisdictions. Notwithstanding
anything contained herein to the contrary, neither Wilmington Trust Company nor
the Owner Trustee shall be required to take any action in any jurisdiction other
than in the State of Delaware if the taking of such action will, even after the
appointment of a co-trustee or separate trustee in accordance with Section 9.05
hereof, (i) require the consent or approval or authorization or order of or the
giving of notice to, or the registration with or the taking of any other action
in respect of, any state or other governmental authority or agency of any
jurisdiction other than the State of Delaware; (ii) result in any fee, tax or
other governmental charge under the laws of the State of Delaware becoming
payable by Wilmington Trust Company; or (iii) subject Wilmington Trust Company
to personal jurisdiction in any jurisdiction other than the State of Delaware
for causes of action arising from acts unrelated to the consummation of the
transactions by Wilmington Trust Company or the Owner Trustee, as the case may
be, contemplated hereby.

      Section 6.10. Liability of Certificate Registrar and Certificate Paying
Agent. All provisions affording protection to or limiting the liability of the
Owner Trustee shall inure as well to the Certificate Registrar and Certificate
Paying Agent.

<PAGE>
                                       23

                                   ARTICLE VII

                          Compensation of Owner Trustee

      Section 7.01. Owner Trustee's Fees and Expenses. Wilmington Trust Company
shall receive as compensation for its services hereunder such fees as have been
separately agreed upon before the date hereof, and the Owner Trustee shall be
reimbursed by the Depositor or the Servicer for its reasonable expenses
hereunder and under the Basic Documents, including the reasonable compensation,
expenses and disbursements of such agents, representatives, experts and counsel
as Wilmington Trust Company may reasonably employ in connection with the
exercise and performance of its rights and its duties hereunder and the duties
of the Issuer under the Basic Documents pursuant to a separate fee agreement
between Wilmington Trust Company and Superior Bank FSB. In the event of a
default in any payment of such fees and expenses by the Depositor or Servicer,
the Owner Trustee hereby agrees that it will continue to act as Owner Trustee
hereunder and perform its duties hereunder and the duties of the Issuer under
the Basic Documents. This Section 7.01 shall survive termination of this Trust
Agreement.

      Section 7.02. Indemnification. The Depositor shall indemnify, defend and
hold harmless the Owner Trustee and the Certificate Paying Agent, solely in its
capacity as Certificate Paying Agent, and their respective successors, assigns,
agents and servants (collectively, the "Indemnified Parties") from and against,
any and all liabilities, obligations, losses, damages, taxes, claims, actions
and suits, and any and all reasonable costs, expenses and disbursements
(including reasonable legal fees and expenses) of any kind and nature whatsoever
(collectively, "Expenses") which may at any time be imposed on, incurred by, or
asserted against any Indemnified Party in any way relating to or arising out of
this Trust Agreement, the Basic Documents, the Owner Trust Estate, the
administration of the Owner Trust Estate or the action or inaction of the Owner
Trustee and the Certificate Paying Agent, solely in its capacity as Certificate
Paying Agent, hereunder, provided, that:

            (i) the Depositor shall not be liable for or required to indemnify
      an Indemnified Party from and against Expenses arising or resulting from
      the Owner Trustee's or the Certificate Paying Agent's willful misconduct,
      gross negligence or bad faith or as a result of any inaccuracy of a
      representation or warranty of the Owner Trustee contained in Section 6.03
      expressly made by the Owner Trustee;

            (ii) with respect to any such claim, the Indemnified Party shall
      have given the Depositor written notice thereof promptly after the
      Indemnified Party shall have actual knowledge thereof;

            (iii) while maintaining control over its own defense, the Depositor
      shall consult with the Indemnified Party in preparing such defense; and

            (iv) notwithstanding anything in this Agreement to the contrary, the
      Depositor shall not be liable for settlement of any claim by an
      Indemnified Party entered into without the prior consent of the Depositor
      which consent shall not be unreasonably withheld.

<PAGE>
                                       24

      The indemnities contained in this Section shall survive the resignation or
termination of the Owner Trustee or the Certificate Paying Agent or the
termination of this Trust Agreement. In the event of any claim, action or
proceeding for which indemnity will be sought pursuant to this Section 7.02, the
Owner Trustee's or the Certificate Paying Agent's choice of legal counsel, if
other than the legal counsel retained by the Owner Trustee or the Certificate
Paying Agent in connection with the execution and delivery of this Trust
Agreement, shall be subject to the approval of the Depositor, which approval
shall not be unreasonably withheld. In addition, upon written notice to the
Owner Trustee or the Certificate Paying Agent and with the consent of the Owner
Trustee or the Certificate Paying Agent which consent shall not be unreasonably
withheld, the Depositor has the right to assume the defense of any claim, action
or proceeding against the Owner Trustee or the Certificate Paying Agent.

<PAGE>
                                       25

                                  ARTICLE VIII

                         Termination of Trust Agreement

      Section 8.01. Termination of Trust Agreement. (a) This Trust Agreement
(other than Article VII) and the Trust shall dissolve wind up and terminate in
accordance with Section 3808 of the Delaware Business Statute and be of no
further force or effect upon the earliest of (i) the final distribution of all
moneys or other property or proceeds of the Owner Trust Estate in accordance
with the terms of the Indenture and this Trust Agreement or (ii) purchase by the
Servicer or the Majority Certificateholder of all Mortgage Loans pursuant to
Section 11.01 of the Sale and Servicing Agreement; provided in each case that
all amounts owing to the Noteholders and the Note Insurer to the extent payable
from the Owner Trust Estate or proceeds thereof have been paid in full and that
all obligations under the Indenture have been discharged. The bankruptcy,
liquidation, dissolution, death or incapacity of any Certificateholder shall not
(x) operate to terminate this Trust Agreement or the Trust or (y) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of all
or any part of the Trust or the Owner Trust Estate or (z) otherwise affect the
rights, obligations and liabilities of the parties hereto.

      (b) Except as provided in Section 8.01(a), neither the Depositor nor any
Certificateholder shall be entitled to revoke or terminate the Trust.

      (c) Notice of any termination of the Trust, specifying the Payment Date
upon which Certificateholders shall surrender their Certificates to the
Certificate Paying Agent for payment of the final distribution and cancellation,
shall be given by the Certificate Paying Agent by letter to Certificateholders
and the Note Insurer mailed within five Business Days of receipt of notice of
the final payment on the Notes from the Indenture Trustee, stating (i) the
Payment Date upon or with respect to which final payment of the Certificates
shall be made upon presentation and surrender of the Certificates at the office
of the Certificate Paying Agent therein designated, (ii) the amount of any such
final payment and (iii) that the Record Date otherwise applicable to such
Payment Date is not applicable, payments being made only upon presentation and
surrender of the Certificates at the office of the Certificate Paying Agent
therein specified. The Certificate Paying Agent shall give such notice to the
Owner Trustee and the Certificate Registrar at the time such notice is given to
Certificateholders. Upon presentation and surrender of the Certificates, the
Certificate Paying Agent shall cause to be distributed to Certificateholders
amounts distributable on such Payment Date pursuant to Section 5.01.

      In the event that all of the Certificateholders shall not surrender their
Certificates for cancellation within six months after the date specified in the
above mentioned written notice, the Certificate Paying Agent shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. Subject to applicable laws with respect to escheat of funds, if within
one year following the Payment Date on which final payment of the Certificates
was to have been made pursuant to Section 3.03 of the Indenture, all the
Certificates shall not have been surrendered for cancellation, the Certificate
Paying Agent may take appropriate steps, or may appoint an agent to take
appropriate steps, to

<PAGE>
                                       26

contact the remaining Certificateholders concerning surrender of their
Certificates, and the cost thereof shall be paid out of the funds and other
assets that shall remain subject to this Trust Agreement. Any funds remaining in
the Certificate Distribution Account after exhaustion of such remedies shall be
distributed by the Certificate Paying Agent to the Certificateholders.

      (d) Upon the winding up of the Trust and its termination, the Owner
Trustee shall cause the Certificate of Trust to be cancelled by filing a
certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3810(c) of the Business Trust Statute.

<PAGE>
                                       27

                                   ARTICLE IX

             Successor Owner Trustees and Additional Owner Trustees

      Section 9.01. Eligibility Requirements for Owner Trustee. The Owner
Trustee shall at all times be a corporation satisfying the provisions of Section
3807(a) of the Business Trust Statute; authorized to exercise corporate trust
powers; having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by federal or state authorities; or is
otherwise acceptable to the Rating Agencies and the Note Insurer. If such
corporation shall publish reports of condition at least annually pursuant to law
or to the requirements of the aforesaid supervising or examining authority, then
for the purpose of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Owner Trustee shall cease to be eligible in accordance with the provisions of
this Section 9.01, the Owner Trustee shall resign immediately in the manner and
with the effect specified in Section 9.02.

      Section 9.02. Replacement of Owner Trustee. The Owner Trustee may at any
time resign and be discharged from the trusts hereby created by giving 30 days
prior written notice thereof to the Indenture Trustee, the Note Insurer and the
Depositor. Upon receiving such notice of resignation, the Depositor shall
promptly appoint a successor Owner Trustee with the consent of the Note Insurer,
by written instrument, in duplicate, one copy of which instrument shall be
delivered to the resigning Owner Trustee and to the successor Owner Trustee. If
no successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Owner Trustee may petition any court of competent jurisdiction for the
appointment of a successor Owner Trustee.

      If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of Section 9.01 and shall fail to resign after written
request therefor by the Depositor or the Note Insurer, or if at any time the
Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Depositor may remove the Owner Trustee
with the consent of the Note Insurer.

      Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 9.03 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Servicer shall provide notice of such
resignation or removal of the Owner Trustee to each of the Rating Agencies.

      Section 9.03. Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the
Indenture Trustee and to its predecessor Owner Trustee an instrument accepting
such appointment under this Trust Agreement, and thereupon the resignation or
removal of the predecessor Owner Trustee shall become effective, and such
successor Owner Trustee, without any further act, deed or conveyance, shall
become fully

<PAGE>
                                       28

vested with all the rights, powers, duties and obligations of its predecessor
under this Trust Agreement, with like effect as if originally named as Owner
Trustee. The predecessor Owner Trustee shall upon payment of its fees and
expenses deliver to the successor Owner Trustee all documents and statements and
monies held by it under this Trust Agreement; and the predecessor Owner Trustee
shall execute and deliver such instruments and do such other things as may
reasonably be required for fully and certainly vesting and confirming in the
successor Owner Trustee all such rights, powers, duties and obligations.

      No successor Owner Trustee shall accept appointment as provided in this
Section 9.03 unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 9.01.

      Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section 9.03, such successor Owner Trustee shall mail notice thereof to all
Certificateholders, the Indenture Trustee, the Note Insurer and the Rating
Agencies and shall file a certificate of amendment to the Certificate of Trust
reflecting the successor Owner Trustee's name and address.

      Section 9.04. Merger or Consolidation of Owner Trustee. Any Person into
which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any Person
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee hereunder, without
the execution or filing of any instrument or any further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding;
provided, that such Person shall be eligible pursuant to Section 9.01 and,
provided, further, that the Owner Trustee shall mail notice of such merger or
consolidation to the Rating Agencies.

      Section 9.05. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Trust Agreement, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of the Owner Trust Estate may at the time be located, the Owner Trustee
shall have the power and shall execute and deliver all instruments to appoint
one or more Persons to act as co-trustee, jointly with the Owner Trustee, or as
separate trustee or trustees, of all or any part of the Owner Trust Estate, and
to vest in such Person, in such capacity, such title to the Trust or any part
thereof and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Owner Trustee may consider
necessary or desirable. No co-trustee or separate trustee under this Trust
Agreement shall be required to meet the terms of eligibility as a successor
Owner Trustee pursuant to Section 9.01 and no notice of the appointment of any
co-trustee or separate trustee shall be required pursuant to Section 9.03.

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

      (a) All rights, powers, duties and obligations conferred or imposed upon
the Owner Trustee shall be conferred upon and exercised or performed by the
Owner Trustee and such separate trustee or co-trustee jointly (it being
understood that such separate trustee or co-trustee is not

<PAGE>
                                       29

authorized to act separately without the Owner Trustee joining in such act),
except to the extent that under any law of any jurisdiction in which any
particular act or acts are to be performed, the Owner Trustee shall be
incompetent or unqualified to perform such act or acts, in which event such
rights, powers, duties and obligations (including the holding of title to the
Owner Trust Estate or any portion thereof in any such jurisdiction) shall be
exercised and performed singly by such separate trustee or co-trustee, but
solely at the direction of the Owner Trustee;

      (b) No trustee under this Trust Agreement shall be personally liable by
reason of any act or omission of any other trustee under this Trust Agreement;
and

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

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

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

<PAGE>
                                       30

                                    ARTICLE X

                                  Miscellaneous

      Section 10.01. Amendments. (a) This Trust Agreement may be amended from
time to time by the parties hereto, with the prior consent of LaSalle Bank
National Association (which consent shall not be unreasonably withheld), as
specified in this Section, provided that any amendment, except as provided in
subparagraph (e) below, be accompanied by an Opinion of Counsel addressed to the
Owner Trustee and obtained by the Servicer to the effect that such amendment (i)
complies with the provisions of this Section and (ii) would not cause the Trust
(if Superior Bank FSB were not the Holder of 100% of the Certificates) to be
subject to an entity level tax for federal income tax purposes.

      (b) If the purpose of the amendment (as detailed therein) is to correct
any mistake, eliminate any inconsistency, cure any ambiguity or deal with any
matter not covered (i.e. to give effect to the intent of the parties and, if
applicable, to the expectations of the Holders), it shall not be necessary to
obtain the consent of any Holders, but the Owner Trustee and the Indenture
Trustee shall be furnished with (A) confirmation in writing from each of the
Rating Agencies that the amendment will not result in the qualification,
downgrading or withdrawal of the rating then assigned to any Note or (B) an
Opinion of Counsel obtained by the Servicer to the effect that such action will
not adversely affect in any material respect the interests of any Holders.

      (c) If the purpose of the amendment is to prevent the imposition of any
federal or state taxes at any time that any Security is outstanding, it shall
not be necessary to obtain the consent of any Holder, but the Owner Trustee
shall be furnished with an Opinion of Counsel obtained by the Servicer that such
amendment is necessary or helpful to prevent the imposition of such taxes and is
not materially adverse to any Holder.

      (d) If the purpose of the amendment is to add or eliminate or change any
provision of this Trust Agreement other than as contemplated in (b) and (c)
above, the amendment shall require (A) an Opinion of Counsel obtained by the
Servicer to the effect that such action will not adversely affect in any
material respect the interests of any Holders, (B) the consent of the Note
Insurer and (C) either (a) confirmation in writing from each of the Rating
Agencies that the amendment will not result in the qualification, downgrading or
withdrawal of the rating then assigned to any Note or (b) the consent of Holders
of Certificates evidencing a majority of the Percentage Interests in the
Certificates and the Indenture Trustee; provided, however, that no such
amendment shall (i) reduce in any manner the amount of, or delay the timing of,
payments received that are required to be distributed on any Certificate without
the consent of the related Certificateholder, or (ii) reduce the aforesaid
percentage of Certificates the Holders of which are required to consent to any
such amendment, without the consent of the Holders of all such Certificates then
outstanding.

      (e) If the purpose of the amendment is to provide for the holding of any
of the Certificates in book-entry form, it shall require the consent of Holders
of all such Certificates then outstanding; provided, that the Opinion of Counsel
specified in subparagraph (a) above shall not be required.

<PAGE>
                                       31

      (f) If the purpose of the amendment is to provide for the issuance of
additional certificates representing an interest in the Trust, it shall not be
necessary to obtain the consent of any Holder, but the Owner Trustee shall be
furnished with (A) an Opinion of Counsel obtained by the Servicer to the effect
that such action will not adversely affect in any material respect the interests
of any Holders and (B) confirmation in writing from each of the Rating Agencies
that the amendment will not result in the qualification, downgrading or
withdrawal of the rating then assigned to any Note.

      (g) Promptly after the execution of any such amendment or consent, the
Servicer shall furnish written notification of the substance of such amendment
or consent to each Certificateholder, the Indenture Trustee, the Note Insurer
and each of the Rating Agencies. It shall not be necessary for the consents
required pursuant to this Section 10.01 to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents (and any
other consents provided for in this Trust Agreement or in any other Basic
Document) and of evidencing the authorization of the execution thereof shall be
subject to such reasonable requirements as the Owner Trustee may prescribe.

      (h) In connection with the execution of any amendment to any agreement to
which the Trust is a party, other than this Trust Agreement, the Owner Trustee
shall be entitled to receive and conclusively rely upon an Opinion of Counsel to
the effect that such amendment is authorized or permitted by the documents
subject to such amendment and that all conditions precedent in the Basic
Documents for the execution and delivery thereof by the Trust or the Owner
Trustee, as the case may be, have been satisfied.

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

      Section 10.02. No Legal Title to Owner Trust Estate. The
Certificateholders shall not have legal title to any part of the Owner Trust
Estate solely by virtue of their status as a Certificateholder. The
Certificateholders shall be entitled to receive distributions with respect to
their undivided beneficial interest therein only in accordance with Articles V
and VIII. No transfer, by operation of law or otherwise, of any right, title or
interest of the Certificateholders to and in their ownership interest in the
Owner Trust Estate shall operate to terminate this Trust Agreement or the trusts
hereunder or entitle any transferee to an accounting or to the transfer to it of
legal title to any part of the Owner Trust Estate

      Section 10.03. Limitations on Rights of Others. Except for Section 2.07,
the provisions of this Trust Agreement are solely for the benefit of the Owner
Trustee, the Depositor, the Certificateholders, the Note Insurer, and, to the
extent expressly provided herein, the Indenture Trustee and the Noteholders, and
nothing in this Trust Agreement (other than Section 2.07), whether express or
implied, shall be construed to give to any other Person any legal or equitable
right, remedy or claim in the Owner Trust Estate or under or in respect of this
Trust Agreement or any covenants, conditions or provisions contained herein.

<PAGE>
                                       32

      Section 10.04. Notices. (a) Unless otherwise expressly specified or
permitted by the terms hereof, all notices shall be in writing and shall be
deemed given upon receipt, to the Owner Trustee at: Wilmington Trust Company,
1100 North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate
Trust Adminstration, AFC Trust Series 2000-1; to the Depositor at: Superior Bank
FSB, One Lincoln Centre, Oakbrook Terrace, Illinois 60181; Attention: President;
to the Indenture Trustee and the Certificate Paying Agent at: LaSalle Bank
National Association, 135 LaSalle Street, Chicago, Illinois 60674-4107;
Attention: Asset-Backed Securities Trust Service Department - AFC Trust Series
2000-1; to the Note Insurer, Financial Guaranty Insurance Company, 115 Broadway,
New York, New York 10006, Attention: Research and Risk Management-AFC Trust
Series 2000-1 or, as to each party, at such other address as shall be designated
by such party in a written notice to each other party.

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

      (c) A copy of any notice delivered to the Owner Trustee or the Trust shall
also be delivered to the Depositor.

      Section 10.05. Severability. Any provision of this Trust Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

      Section 10.06. Separate Counterparts. This Trust Agreement may be executed
by the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

      Section 10.07. Successors and Assigns. All representations, warranties,
covenants and agreements contained herein shall be binding upon, and inure to
the benefit of, each of the Depositor, the Owner Trustee and its successors and
each Certificateholder and its successors and permitted assigns, all as herein
provided and the Note Insurer. Any request, notice, direction, consent, waiver
or other instrument or action by a Certificateholder shall bind the successors
and assigns of such Certificateholder.

      Section 10.08. No Petition. The Owner Trustee, by entering into this Trust
Agreement and each Certificateholder, by accepting a Certificate, hereby
covenant and agree that they will not at any time institute against the
Depositor or the Trust, or join in any institution against the Depositor or the
Trust of, any bankruptcy proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations to the
Certificates, the Notes, this Trust Agreement or any of the Basic Documents.
This Section shall survive for one year following the termination of this Trust
Agreement.

<PAGE>
                                       33

      Section 10.09. No Recourse. Each Certificateholder by accepting a
Certificate acknowledges that such Certificateholder's Certificates represent
beneficial interests in the Trust only and do not represent interests in or
obligations of the Depositor, the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or any Affiliate thereof and no recourse may be had against
such parties or their assets, except as may be expressly set forth or
contemplated in this Trust Agreement, the Certificates or the Basic Documents.

      Section 10.10. Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

      Section 10.11. GOVERNING LAW. THIS TRUST AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

      Section 10.12. Integration. This Trust Agreement constitutes the entire
agreement among the parties hereto pertaining to the subject matter hereof and
supersedes all prior agreements and understanding pertaining thereto.

      Section 10.13. Benefits of Trust Agreement. The Note Insurer and its
successors and assigns shall be a third-party beneficiary to the provisions of
this Trust Agreement. To the extent that this Trust Agreement confers upon or
gives or grants to the Note Insurer any right, remedy or claim under or by
reason of this Trust Agreement, the Note Insurer may enforce any such right,
remedy or claim conferred, given or granted hereunder. Nothing in this Trust
Agreement shall give to any Person other than the parties hereto and their
successors hereunder, and the Note Insurer, any benefit or any legal or
equitable right, remedy or claim under this Trust Agreement, provided, however,
that the Owner Trustee shall not be deemed as a fiduciary to the Note Insurer.

<PAGE>

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

                                   SUPERIOR BANK FSB

                                   By: /s/ John A. Soricelli
                                       -----------------------------------------
                                       Name:  John A. Soricelli
                                       Title: Vice President

                                   WILMINGTON TRUST COMPANY, as Owner Trustee,

                                   By: /s/ Kathleen A. Pedelini
                                       -----------------------------------------
                                       Name:  Kathleen A. Pedelini
                                       Title: Administrative Account Manager

Acknowledged and Agreed:

LASALLE BANK NATIONAL
  ASSOCIATION, as Certificate Registrar
  and Certificate Paying Agent

By: /s/ Cynthia Reis
    -------------------------------------
    Name:  Cynthia Reis
    Title: First Vice President

<PAGE>

                                    EXHIBIT A
                               Form of Certificate

                                     [Face]

      THIS CERTIFICATE IS SUBORDINATE TO THE NOTES AS DESCRIBED IN THE
INDENTURE.

      NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE
REGISTRAR SHALL HAVE RECEIVED AN OPINION OF COUNSEL AS DESCRIBED IN THE TRUST
AGREEMENT.

      NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE
REGISTRAR SHALL HAVE RECEIVED A CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS
TO THE TRANSFEREE'S STATUS AS A U.S. PERSON OR CORPORATION UNDER U.S. LAW.

      THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND
LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 3.05 OF THE TRUST AGREEMENT REFERRED
TO HEREIN.

      NO TRANSFER OF CERTIFICATES OR ANY INTEREST THEREIN SHALL BE MADE TO ANY
EMPLOYEE BENEFIT PLAN OR CERTAIN OTHER RETIREMENT PLANS AND ARRANGEMENTS,
INCLUDING INDIVIDUAL RETIREMENT ACCOUNTS AND ANNUITIES, KEOGH PLANS AND BANK
COLLECTIVE INVESTMENT FUNDS AND INSURANCE COMPANY GENERAL OR SEPARATE ACCOUNTS
IN WHICH SUCH PLANS, ACCOUNTS OR ARRANGEMENTS ARE INVESTED, THAT ARE SUBJECT TO
ERISA, OR SECTION 4975 OF THE CODE (COLLECTIVELY, "PLAN"), ANY PERSON ACTING,
DIRECTLY OR INDIRECTLY, ON BEHALF OF ANY SUCH PLAN OR ANY PERSON ACQUIRING SUCH
CERTIFICATES WITH "PLAN ASSETS" OF A PLAN WITHIN THE MEANING OF THE DEPARTMENT
OF LABOR REGULATION PROMULGATED AT 29 C.F.R. SS.2510.3-101 ("PLAN ASSETS")
UNLESS THE DEPOSITOR, THE OWNER TRUSTEE, THE CERTIFICATE REGISTRAR AND THE
SERVICER ARE PROVIDED WITH AN OPINION OF COUNSEL WHICH ESTABLISHES TO THE
SATISFACTION OF THE DEPOSITOR, THE OWNER TRUSTEE, THE CERTIFICATE REGISTRAR AND
THE SERVICER THAT THE PURCHASE OF CERTIFICATES IS PERMISSIBLE UNDER APPLICABLE
LAW, WILL NOT CONSTITUTE OR RESULT IN ANY PROHIBITED TRANSACTION UNDER ERISA OR
SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE DEPOSITOR, THE OWNER TRUSTEE,
THE CERTIFICATE REGISTRAR OR THE SERVICER TO ANY

<PAGE>
                                      A-2

OBLIGATION OR LIABILITY (INCLUDING OBLIGATIONS OR LIABILITIES UNDER ERISA OR
SECTION 4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE TRUST
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE DEPOSITOR,
THE OWNER TRUSTEE, THE CERTIFICATE REGISTRAR OR THE SERVICER. IN LIEU OF SUCH
OPINION OF COUNSEL, A PLAN, ANY PERSON ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF ANY SUCH PLAN OR ANY PERSON ACQUIRING SUCH CERTIFICATES WITH PLAN ASSETS OF A
PLAN MAY PROVIDE A CERTIFICATION IN THE FORM OF EXHIBIT G TO THE TRUST
AGREEMENT, WHICH THE DEPOSITOR, THE OWNER TRUSTEE, THE CERTIFICATE REGISTRAR AND
THE SERVICER MAY RELY UPON WITHOUT FURTHER INQUIRY OR INVESTIGATION. NEITHER AN
OPINION OF COUNSEL NOR A CERTIFICATION WILL BE REQUIRED IN CONNECTION WITH THE
INITIAL TRANSFER OF ANY SUCH CERTIFICATE BY THE DEPOSITOR TO AN AFFILIATE OF THE
DEPOSITOR (IN WHICH CASE, THE DEPOSITOR OR ANY AFFILIATE THEREOF SHALL HAVE
DEEMED TO HAVE REPRESENTED THAT SUCH AFFILIATE IS NOT A PLAN OR A PERSON
INVESTING PLAN ASSETS OF ANY PLAN) AND THE OWNER TRUSTEE AND THE CERTIFICATE
REGISTRAR SHALL BE ENTITLED TO CONCLUSIVELY RELY UPON A REPRESENTATION (WHICH,
UPON THE REQUEST OF THE OWNER TRUSTEE OR THE CERTIFICATE REGISTRAR, SHALL BE A
WRITTEN REPRESENTATION) FROM THE DEPOSITOR OF THE STATUS OF SUCH TRANSFEREE AS
AN AFFILIATE OF THE DEPOSITOR.

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

<PAGE>
                                      A-3

Certificate No. ___                      Certificate Percentage Interest of this
                                         Certificate: _________%

Cut-off Date: March 1, 2000

Date of
Trust Agreement:
March 1, 2000

Servicer:  Superior Bank FSB

                             AFC TRUST SERIES 2000-1

      Evidencing a fractional undivided equity interest in the Owner Trust
Estate, the property of which consists primarily of the Mortgage Loans held by
AFC Trust Series 2000-1 (the "Trust"), a Delaware business trust formed by
SUPERIOR BANK FSB, AS DEPOSITOR, pursuant to the Trust Agreement referred to
below.

      This certifies that ________________________ is the registered owner of
the Percentage Interest represented hereby.

      The Trust was created pursuant to a Trust Agreement, dated as of March 1,
2000 (as amended and supplemented from time to time, the "Trust Agreement")
between the Depositor and Wilmington Trust Company, as owner trustee (the "Owner
Trustee", which term includes any successor entity under the Trust Agreement), a
summary of certain of the pertinent provisions of which is set forth
hereinafter. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Trust Agreement, to which Trust Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

      This Certificate is one of a duly authorized issue of AFC Trust
Certificates, Series 2000-1 (herein called the "Certificates") issued under the
Trust Agreement to which reference is hereby made for a statement of the
respective rights thereunder of the Depositor, the Owner Trustee and the Holders
of the Certificates and the terms upon which the Certificates are executed and
delivered. All terms used in this Certificate which are defined in the Trust
Agreement shall have the meanings assigned to them in the Trust Agreement. The
Owner Trust Estate consists of the Mortgage Loans held by the Trust. The rights
of the Holders of the Certificates are subordinated to the rights of the Holders
of the Notes, as set forth in the Indenture, dated as of March 1, 2000 , between
the Trust and LaSalle Bank National Association, as Indenture Trustee (the
"Indenture").

      There will be distributed on the 25th day of each month or, if such 25th
day is not a Business Day, the next Business Day (each, a "Payment Date"),
commencing on April 25, 2000, to the Person

<PAGE>
                                      A-4

in whose name this Certificate is registered at the close of business on the
last Business Day of the month preceding the month of such Payment Date (the
"Record Date"), such Certificateholder's Percentage Interest in the amount to be
distributed to Certificateholders on such Payment Date.

      The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the funds on deposit in the Payment Account that have
been released from the Lien of the Indenture for payment hereunder and that
neither the Owner Trustee in its individual capacity nor the Depositor is
personally liable to the Certificateholders for any amount payable under this
Certificate or the Trust Agreement or, except as expressly provided in the Trust
Agreement, subject to any liability under the Trust Agreement.

      The Holder of this Certificate acknowledges and agrees that its rights to
receive distributions in respect of this Certificate are subordinated to the
rights of the Noteholders as described in the Indenture.

      The Depositor and each Certificateholder, by acceptance of a Certificate,
agree to treat, and to take no action inconsistent with the treatment of, the
Certificates for federal, state and local income tax purposes as an equity
interest in the Trust.

      Each Certificateholder, by its acceptance of a Certificate, covenants and
agrees that such Certificateholder will not at any time institute against the
Depositor, or join in any institution against the Depositor or the Trust of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Certificates, the
Notes, the Trust Agreement or any of the Basic Documents.

      Distributions on this Certificate will be made as provided in the Trust
Agreement by the Certificate Paying Agent by wire transfer or check mailed to
the Certificateholder of record in the Certificate Register without the
presentation or surrender of this Certificate or the making of any notation
hereon. Except as otherwise provided in the Trust Agreement and notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Certificate Paying Agent of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
maintained by the Certificate Registrar for that purpose by the Trust in the
Borough of Manhattan, The City of New York.

      No transfer, sale, pledge or other disposition of a Certificate shall be
made unless such transfer, sale, pledge or other disposition is exempt from the
registration requirements of the Securities Act and any applicable state
securities laws or is made in accordance with said Act and laws. In the event of
any such transfer, the Certificate Registrar or the Depositor shall prior to
such transfer require the transferee to execute (A) either (i) (a) an investment
letter in substantially the form attached to the Agreement as Exhibit C (or in
such form and substance reasonably satisfactory to the Certificate Registrar and
the Depositor) which investment letters shall not be an expense of

<PAGE>
                                      A-5

the Trust, the Owner Trustee, the Certificate Registrar, the Servicer or the
Depositor and which investment letter states that, among other things, such
transferee (a) is a "qualified institutional buyer" as defined under Rule 144A,
acting for its own account or the accounts of other "qualified institutional
buyers" as defined under Rule 144A, and (b) is aware that the proposed
transferor intends to rely on the exemption from registration requirements under
the Securities Act of 1933, as amended, provided by Rule 144A or (ii) (a) a
written Opinion of Counsel acceptable to and in form and substance satisfactory
to the Certificate Registrar and the Depositor that such transfer may be made
pursuant to an exemption, describing the applicable exemption and the basis
therefor, from said Act and laws or is being made pursuant to said Act and laws,
which Opinion of Counsel shall not be an expense of the Trust, the Owner
Trustee, the Certificate Registrar, the Servicer or the Depositor and (b) the
transferee executes a representation letter, substantially in the form of
Exhibit D to the Agreement, and the transferor executes a representation letter,
substantially in the form of Exhibit E to the Agreement, each acceptable to and
in form and substance satisfactory to the Certificate Registrar, the Servicer
and the Depositor certifying the facts surrounding such transfer, which
representation letters shall not be an expense of the Trust, the Owner Trustee,
the Certificate Registrar, the Servicer or the Depositor and (B) the Certificate
of Non-Foreign Status (in substantially the form attached to the Agreement as
Exhibit D) acceptable to and in form and substance reasonably satisfactory to
the Certificate Registrar and the Depositor, which certificate shall not be an
expense of the Trust, the Owner Trustee, the Certificate Registrar or the
Depositor. The Holder of a Certificate desiring to effect such transfer shall,
and does hereby agree to, indemnify the Trust, the Owner Trustee, the
Certificate Registrar, the Servicer and the Depositor against any liability that
may result if the transfer is not so exempt or is not made in accordance with
such federal and state laws.

      No transfer of Certificates or any interest therein shall be made to any
employee benefit plan or certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and bank
collective investment funds and insurance company general or separate accounts
in which such plans, accounts or arrangements are invested, that are subject to
ERISA, or Section 4975 of the Code (collectively, "Plan"), any person acting,
directly or indirectly, on behalf of any such Plan or any Person acquiring such
certificates with "plan assets" of a Plan within the meaning of the Department
of Labor Regulation promulgated at 29 C.F.R. ss.2510.3-101 ("Plan Assets")
unless the Depositor, the Owner Trustee, the Certificate Registrar and the
Servicer are provided with an Opinion of Counsel which establishes to the
satisfaction of the Depositor, the Owner Trustee, the Certificate Registrar and
the Servicer that the purchase of Certificates is permissible under applicable
law, will not constitute or result in any prohibited transaction under ERISA or
Section 4975 of the Code and will not subject the Depositor, the Owner Trustee,
the Certificate Registrar or the Servicer to any obligation or liability
(including obligations or liabilities under ERISA or Section 4975 of the Code)
in addition to those undertaken in the Trust Agreement, which Opinion of Counsel
shall not be an expense of the Depositor, the Owner Trustee, the Certificate
Registrar or the Servicer. In lieu of such Opinion of Counsel, a Plan, any
Person acting, directly or indirectly, on behalf of any such Plan or any person
acquiring such Certificates with Plan Assets of a Plan may provide a
certification in the form of Exhibit G to the Agreement, which the

<PAGE>
                                      A-6

Depositor, the Owner Trustee, the Certificate Registrar and the Servicer may
rely upon without further inquiry or investigation. Neither an Opinion of
Counsel nor a certification will be required in connection with the initial
transfer of any such Certificate by the Depositor to an affiliate of the
Depositor (in which case, the Depositor or any affiliate thereof shall have
deemed to have represented that such affiliate is not a Plan or a Person
investing Plan Assets of any Plan) and the Owner Trustee and the Certificate
Registrar shall be entitled to conclusively rely upon a representation (which,
upon the request of the Owner Trustee or the Certificate Registrar, shall be a
written representation) from the Depositor of the status of such transferee as
an affiliate of the Depositor.

      No offer, sale, transfer, pledge, hypothecation or other disposition
(including any pledge, sale or transfer under a repurchase transaction or
securities loan) of any Certificate shall be made to any transferee unless,
prior to such disposition, the proposed transferor delivers to the Owner Trustee
an Opinion of Counsel, rendered by a law firm generally recognized to be
qualified to opine concerning the tax aspects of asset securitization, to the
effect that such transfer (including any disposition permitted following any
default under any pledge or repurchase transaction) will not cause the Trust to
be (i) treated as an association taxable as a corporation for federal income tax
purposes, (ii) taxable as a taxable mortgage pool as defined in Section 7701(i)
of the Code or (iii) taxable as a "publicly traded partnership" as defined in
Treasury Regulation section 1.7704-1.

      Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

      Unless the certificate of authentication hereon shall have been executed
by an authorized officer of the Owner Trustee, or an authenticating agent by
manual signature, this Certificate shall not entitle the Holder hereof to any
benefit under the Trust Agreement or be valid for any purpose.

      THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

<PAGE>
                                      A-7

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

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

Dated: ____________, 20___              By:_____________________________________
                                                 Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within mentioned Agreement.

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

By: ______________________________________
    Authorized Signatory

or  _____________________________________
    as Authenticating Agent of the Trust

By: ______________________________________
    Authorized Signatory

<PAGE>
                                      A-8

                            [REVERSE OF CERTIFICATE]

      The Certificates do not represent an obligation of, or an interest in, the
Depositor, the Seller, the Servicer, the Indenture Trustee, the Owner Trustee or
any Affiliates of any of them and no recourse may be had against such parties or
their assets, except as expressly set forth or contemplated herein or in the
Trust Agreement or the Basic Documents. In addition, this Certificate is not
guaranteed by any governmental agency or instrumentality and is limited in right
of payment to certain collections and recoveries with respect to the Mortgage
Loans, all as more specifically set forth herein and in the Trust Agreement. A
copy of the Trust Agreement may be examined by any Certificateholder upon
written request during normal business hours at the principal office of the
Depositor and at such other places, if any, designated by the Depositor.

      The Trust Agreement permits the amendment thereof as specified below,
provided that any amendment be accompanied by an Opinion of Counsel to the Owner
Trustee to the effect that such amendment complies with the provisions of the
Trust Agreement and, if Superior Bank FSB was not the Holder of 100% of the
Certificates, would not cause the Trust to be subject to an entity level tax. If
the purpose of the amendment is to prevent the imposition of any federal or
state taxes at any time that any Security is outstanding, it shall not be
necessary to obtain the consent of the any Holder, but the Owner Trustee shall
be furnished with an Opinion of Counsel that such amendment is necessary or
helpful to prevent the imposition of such taxes and is not materially adverse to
any Holder. If the purpose of the amendment is to add or eliminate or change any
provision of the Trust Agreement, other than as specified in the preceding two
sentences, the amendment shall require the consent of Holders of the
Certificates evidencing a majority of the Percentage Interests of the
Certificates and the Indenture Trustee; provided, however, that no such
amendment shall (i) reduce in any manner the amount of, or delay the time of,
payments received that are required to be distributed on any Certificate without
the consent of the related Certificateholder, or (ii) reduce the aforesaid
percentage of Certificates the Holders of which are required to consent to any
such amendment without the consent of the Holders of all such Certificates then
outstanding.

      As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registerable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies of the Certificate Registrar maintained by
the Trust in the Borough of Manhattan, The City of New York, accompanied by a
written instrument of transfer in form satisfactory to the Certificate Registrar
duly executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of authorized denominations
evidencing the same aggregate interest in the Trust will be issued to the
designated transferee. The initial Certificate Registrar appointed under the
Trust Agreement is LaSalle Bank National Association.

      Except as provided in the Trust Agreement, the Certificates are issuable
only in a minimum Certificate Percentage Interest of 10%. As provided in the
Trust Agreement and subject to certain

<PAGE>
                                      A-9

limitations therein set forth, Certificates are exchangeable for new
Certificates of authorized denominations evidencing the same aggregate
denomination, as requested by the Holder surrendering the same. No service
charge will be made for any such registration of transfer or exchange, but the
Owner Trustee or the Certificate Registrar may require payment of a sum
sufficient to cover any tax or governmental charge payable in connection
therewith.

      The Owner Trustee, the Certificate Paying Agent, the Certificate Registrar
and any agent of the Owner Trustee, the Certificate Paying Agent, or the
Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Owner Trustee,
the Certificate Paying Agent, the Certificate Registrar or any such agent shall
be affected by any notice to the contrary.

      The obligations and responsibilities created by the Trust Agreement and
the Trust created thereby shall terminate as and when provided in accordance
with the terms of the Trust Agreement.

      The holder of this Certificate acknowledges and agrees that Wilmington
Trust Company is executing this Certificate solely in its capacity as Owner
Trustee under the Trust Agreement and that Wilmington Trust Company shall incur
no personal liability in connection herewith except by reason of its own gross
negligence or willful misconduct.

<PAGE>
                                      A-10

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

________________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

to transfer said Certificate on the books of the Certificate Registrar, with
full power of substitution in the premises.

Dated:

                                   _________________________________________*/
                                                 Signature Guaranteed:

                                          __________________________________*/

*/ NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Certificate in every particular, without
alteration, enlargement or any change whatever. Such signature must be
guaranteed by a member firm of the New York Stock Exchange or a commercial bank
or trust company.

<PAGE>
                                      A-11

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for the information of the
Certificate Paying Agent:

      Distribution shall be made by wire transfer in immediately available funds
to ___________________________________________________________________ for the
account of ________________________________________, account number
______________, or, if mailed by check, to ______________.

      Applicable statements should be mailed to__________________.

                                     ___________________________________________
                                     Signature of assignee or agent
                                     (for authorization of wire
                                     transfer only)

<PAGE>

                                                                       EXHIBIT B
                                                          TO THE TRUST AGREEMENT

                            CERTIFICATE OF TRUST OF
                             AFC Trust Series 2000-1

      THIS Certificate of Trust of AFC Trust Series 2000-1 (the "Trust"), dated
March ___, 2000, is being duly executed and filed by ______________________, a
Delaware banking corporation, as trustee, to form a business trust under the
Delaware Business Trust Act (12 Del. Code, ss. 3801 et seq.).

      1. Name. The name of the business trust formed hereby is AFC Trust Series
2000-1.

      2. Delaware Trustee. The name and business address of the trustee of the
Trust in the State of Delaware is ______________________, __________________,
__________, ______________, Attention: ______________________________.

      3. Effective Date. This Certificate shall be effective on March __, 2000.

      IN WITNESS WHEREOF, the undersigned, being the sole trustee of the Trust,
has executed this Certificate of Trust as of the date first above written.

                                   WILMINGTON TRUST COMPANY,
                                   not in its individual capacity but solely as
                                   owner trustee under a Trust Agreement
                                   dated as of ____________, 20___

                                   By: _________________________________________
                                       Name:
                                       Title:

<PAGE>

                                                                       EXHIBIT C

                 [FORM OF RULE 144A INVESTMENT REPRESENTATION]

            Description of Rule 144A Securities, including numbers:

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

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

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

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

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

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

            2. The Buyer warrants and represents to, and covenants with, the
Owner Trustee and the Depositor (as defined in the Trust Agreement (the
"Agreement"), dated as of March 1, 2000, between Superior Bank FSB, as Depositor
and Wilmington Trust Company, as Owner Trustee pursuant to [Section 3.05] of the
Agreement and to LaSalle Bank National Association as indenture trustee, as
follows:

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

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

<PAGE>
                                      C-2

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

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

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

            3. The Buyer warrants and represents to, and covenants with, the
Seller, the Indenture Trustee, Owner Trustee, Servicer and the Depositor that
either (1) the Buyer is (A) not an employee benefit plan (within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")), or a plan (within the meaning of Section 4975(e)(1) of the Internal
Revenue Code of 1986 ("Code")), which (in either case) is subject to ERISA or
Section 4975 of the Code (both a "Plan"), and (B) is not directly or indirectly
purchasing the Rule 144A Securities on behalf of, as investment manager of, as
named fiduciary of, as trustee of, or with "plan assets" of a Plan, or (2) the
Buyer has delivered, and attached hereto, an opinion of its counsel, addressed
and satisfactory to the Depositor, the Owner Trustee, the Certificate Registrar
and the Servicer which establishes to the satisfaction of the Depositor, the
Owner Trustee, the Certificate Registrar and the Servicer that the purchase of
Certificates is permissible under applicable law, will not constitute or result
in any non-exempt prohibited transaction under ERISA or Section 4975 of the Code
and will not subject the Depositor, the Owner Trustee, the Certificate Registrar
or the Servicer to any obligation or liability (including obligations or
liabilities under ERISA or Section 4975 of the Code)

<PAGE>
                                      C-3

in addition to those undertaken in the Trust Agreement between Superior Bank FSB
and Wilmington Trust Company dated as of March 1, 2000, which Opinion of Counsel
shall not be an expense of the Depositor, the Owner Trustee, the Certificate
Registrar or the Servicer, or (3) the Buyer has provided, and attached hereto, a
certification in the form of Exhibit G to this Agreement, which the Depositor,
the Owner Trustee, the Certificate Registrar and the Servicer may conclusively
rely upon without further inquiry or investigation.

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

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

________________________________          ______________________________________
Print Name of Seller                      Print Name of Buyer

By: ____________________________          By:___________________________________
    Name:                                    Name:
    Title:                                   Title:

Taxpayer Identification:                  Taxpayer Identification:

No. ____________________________          No.___________________________________

Date:___________________________          Date: ________________________________

<PAGE>
                                      C-4

                                                            ANNEX 1 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

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

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

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

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

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

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

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

<PAGE>
                                      C-5

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

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

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

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

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

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

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

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

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

            4. For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the Buyer used the
cost of such securities to the Buyer

<PAGE>
                                      C-6

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

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

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

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

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

                                       _____________________________________
                                       Print Name of Buyer

                                       By: _________________________________
                                          Name:
                                          Title:

                                       Date:________________________________

<PAGE>
                                      C-7

                                                            ANNEX 2 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

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

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

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

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

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

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

            4. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit Notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)

<PAGE>
                                      C-8

securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

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

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

                                       _____________________________________
                                       Print Name of Buyer

                                       By: _________________________________
                                          Name:
                                          Title:

                                       Date:________________________________

                                       IF AN ADVISER:

                                       _____________________________________
                                       Print Name of Buyer

                                       Date:________________________________

<PAGE>

                                                                       EXHIBIT D

                       CERTIFICATE OF NON-FOREIGN STATUS

      This Certificate of Non-Foreign Status ("certificate") is delivered
pursuant to Section 3.05 of the Trust Agreement, dated as of March 1, 2000 (the
"Trust Agreement"), between Superior Bank FSB, as depositor and Wilmington Trust
Company, as Owner Trustee, in connection with the acquisition of, transfer to or
possession by the undersigned, whether as beneficial owner for U.S. federal
income tax purposes (the "Beneficial Owner"), or nominee on behalf of the
Beneficial Owner of the AFC Trust Certificates, Series 2000-1 (the
"Certificate"). Capitalized terms used but not defined in this certificate have
the respective meanings given them in the Trust Agreement.

Each holder must complete Part I, Part II (if the holder is a nominee), and in
all cases sign and otherwise complete Part III. In addition, each holder shall
submit with the Certificate an IRS Form W-9 relating to such holder.

To confirm to the Trust that the provisions of Sections 871, 881 or 1446 of the
Internal Revenue Code (relating to withholding tax on foreign partners) do not
apply in respect of the Certificate held by the undersigned, the undersigned
hereby certifies:

Part I -    Complete Either A or B

      A.    Individual as Beneficial Owner

            1.    I am (The Beneficial Owner is ) not a non-resident alien for
                  purposes of U.S. income taxation;

            2.    My (The Beneficial Owner's) name and home address are:
                  _____________________________
                  _____________________________
                  _____________________________; and

            3.    My (The Beneficial Owner's) U.S. taxpayer identification
                  number (Social Security Number) is___________________________.

B.  Corporate, Partnership or Other Entity as Beneficial Owner

            1.    __________________ (Name of the Beneficial Owner) is not a
                  foreign corporation, foreign partnership, foreign trust or
                  foreign estate (as those terms are defined in the Code and
                  Treasury Regulations;

            2.    The Beneficial Owner's office address and place of
                  incorporation (if applicable) is
                  _____________________________; and

<PAGE>
                                      D-2

            3.    The Beneficial Owner's U.S. employer identification number is
                  ___________ .

Part II - Nominees

      If the undersigned is the nominee for the Beneficial Owner, the
undersigned certifies that this certificate has been made in reliance upon
information contained in:

                  ____ an IRS Form W-9

                  ____ a form such as this or substantially similar

provided to the undersigned by an appropriate person and (i) the undersigned
agrees to notify the Trust at least thirty (30) days prior to the date that the
form relied upon becomes obsolete, and (ii) in connection with change in
Beneficial Owners, the undersigned agrees to submit a new Certificate of
Non-Foreign Status to the Trust promptly after such change.

Part III - Declaration

      The undersigned, as the Beneficial Owner or a nominee thereof, agrees to
notify the Trust within sixty (60) days of the date that the Beneficial Owner
becomes a foreign person. The undersigned understands that this certificate may
be disclosed to the Internal Revenue Service by the Trust and any false
statement contained therein could be punishable by fines, imprisonment or both.

<PAGE>
                                      D-3

      Under penalties of perjury, I declare that I have examined this
certificate and to the best of my knowledge and belief it is true, correct and
complete and will further declare that I will inform the Trust of any change in
the information provided above, and, if applicable, I further declare that I
have the authority* to sign this document.

_____________________________
      Name

_____________________________
      Title (if applicable)

_____________________________
      Signature and Date

*Note: If signed pursuant to a power of attorney, the power of attorney must
accompany this certificate.

<PAGE>

                                                                       EXHIBIT E

                   FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                     [DATE]

                             [Certificate Registrar]

      Re:   AFC Trust Series 2000-1
            AFC Trust Certificates,
            Series 2000-1, (the "Certificates")

Ladies and Gentlemen:

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

<PAGE>
                                      E-2

transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate, and (3) the purchaser or
transferee has otherwise complied with any conditions for transfer set forth in
the Trust Agreement.

                                    Very truly yours,

                                    [TRANSFEREE]

                                    By: __________________________________
                                        Authorized Officer

<PAGE>

                                                                       EXHIBIT F

                              TRANSFER CERTIFICATE

[OWNER TRUSTEE], as Owner Trustee

_____________________________
_____________________________
_____________________________

[INDENTURE TRUSTEE]
_____________________________
_____________________________
_____________________________

      Re:   Proposed Transfer of Trust Certificates

Gentlemen:

This certification is being made by ______________ (the "Proposed Transferee")
in connection with the proposed Transfer to the Proposed Transferee of a trust
certificate (the "Trust Certificate") representing ___% fractional undivided
interest in AFC Trust Series 2000-1 (the "Trust") created pursuant to a Trust
Agreement, dated as of March 1, 2000, (the "Deposit Trust Agreement") between
Superior Bank FSB and Wilmington Trust Company, as Owner Trustee. Initially
capitalized terms used but not defined herein have the meanings assigned to them
in the Trust Agreement. The Proposed Transferee hereby certifies as follows:

      1. The undersigned is a Person involved in the organization or operation
of the Trust or an affiliate of such a Person within the meaning of Rule 3a-7 of
the Investment Company Act.

      2. The Proposed Transferee understands that (a) the Trust Certificates
have not been and will not be registered or qualified under the Securities Act,
or the securities laws of any state, (b) neither the Trust nor the Owner Trustee
is required, and neither intends, to so register or qualify the Trust
Certificates, and (c) the Trust Certificates cannot be resold unless (i) they
are registered and qualified under the Securities Act and the applicable state
securities laws or (ii) an exemption from registration and qualification is
available.

      3. The Proposed Transferee is acquiring the Trust Certificate for its own
account for investment only and not with a view to or for sale or other transfer
in connection with any distribution of the Trust Certificate in any manner that
would violate the Securities Act or any applicable state securities laws.

<PAGE>
                                      F-2

      4. The Proposed Transferee (a) is an accredited investor having such
knowledge and experience in financial and business matters, and in particular in
such matters related to securities similar to the Trust Certificate, such that
it is capable of evaluating the merits and risks of investment in the Trust
Certificate and (b) is able to bear the economic risks of such an investment.

      5. The Proposed Transferee will not authorize nor has it authorized any
person (a) to offer, pledge, sell, dispose of or otherwise transfer any Trust
Certificate, any interest in any Trust Certificate or any other similar security
to any person in any manner, (b) to solicit any offer to buy or to accept a
pledge, disposition or other transfer of any Trust Certificate, any interest in
any Trust Certificate or any other similar security from any person in any
manner, (c) otherwise to approach or negotiate with respect to any Trust
Certificate, any interest in any Trust Certificate or any other similar security
with any person in any manner, (d) to make any general solicitation by means of
general advertising or in any other manner, or (e) to take any other action that
would constitute a distribution of any Trust Certificate under the Securities
Act, that would render the disposition of any Trust Certificate a violation of
Section 5 of the Securities Act or any state securities law, or that could
require registration or qualification pursuant thereto. Neither the Proposed
Transferee nor anyone acting on its behalf has offered any Trust Certificate for
sale or made any general solicitation by means of general advertising or in any
other manner with respect to the Trust Certificate. The Proposed Transferee will
not sell or otherwise transfer any Trust Certificates, except in compliance with
the provisions of the Deposit Trust Agreement.

Date: __________________________        ________________________________________
                                             Name of Proposed Transferee

                                        ________________________________________
                                             Signature

                                        ________________________________________
                                             Name

                                        ________________________________________
                                             Titled
<PAGE>

                                                                       EXHIBIT G

                           FORM OF PLAN CERTIFICATION

      The purchase of Certificates by or on behalf of the purchaser is
permissible under applicable law, will not subject the Depositor, the Trustee or
the Servicer to any obligation in addition to those undertaken in the Trust
Agreement between Superior Bank FSB and Wilmington Trust Company dated as of
March 1, 2000, and the following statements are correct: (i) the transferee is
an insurance company and the source of funds used to purchase such Certificates
is an "insurance company general account" (as such term is defined in Prohibited
Transaction Class Exemption ("PTCE") 95-60), (ii) the conditions set forth in
Sections I and III of PTCE 95-60 have been satisfied and (iii) there is no
employee benefit plan within the meaning of section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended or plan within the meaning of
section 4975 of the Internal Revenue Code of 1986 ("Plan") with respect to which
the amount of such general accounts reserves and liabilities for contracts held
by or on behalf of such Plan and all other Plans maintained by the same employer
(or any "affiliate" thereof, as defined in PTCE 95-60) or by the same employee
organization exceed 10% of the total of all reserves and liabilities of such
general account (as determined under PTCE 95-60) as of the date of the
acquisition of such Certificates.

                                       _____________________________________
                                       Print Name of Buyer

                                       By: _________________________________
                                          Name:
                                          Title:

                                       Date:________________________________

                                       IF AN ADVISER:

                                       _____________________________________
                                       Print Name of Buyer

                                       Date:________________________________

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