Document:

EXHIBIT 4.2

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                              OWNER TRUST AGREEMENT

                                      among

                      HSI ASSET SECURITIZATION CORPORATION,
                                  as Depositor,

                   -----------------------------------------,
                                 as the Company,

                   -----------------------------------------,
                                as Owner Trustee

                   -----------------------------------------,
                                 as Paying Agent

                        Dated as of __________ 1, 200___

                 _______________ HOME LOAN OWNER TRUST 200__-__

                  Home Loan Asset Backed Notes, Series 200__-__

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                                TABLE OF CONTENTS

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                                                                               Page
                                                                               ----

                                    ARTICLE I

                                   DEFINITIONS
<S>                                                                             <C>
Section 1.1 Capitalized Terms ...............................................    1
Section 1.2 Other Definitional Provisions ...................................    4

                                   ARTICLE II

                                  ORGANIZATION

Section 2.1 Name ............................................................    5
Section 2.2 Office ..........................................................    5
Section 2.3 Purposes and Powers .............................................    5
Section 2.4 Appointment of Owner Trustee ....................................    6
Section 2.5 Initial Capital Contribution of Trust Estate ....................    6
Section 2.6 Declaration of Trust ............................................    6
Section 2.7 Title To Trust Property .........................................    6
Section 2.8 Situs of Trust ..................................................    7
Section 2.9 Representations and Warranties of The Depositor and The Company;
            Covenants of The Company ........................................    7

                                   ARTICLE III

            RESIDUAL INTEREST CERTIFICATES AND TRANSFER OF INTERESTS

Section 3.1 Initial Ownership ...............................................    9
Section 3.2 The Residual Interest Certificates ..............................    9
Section 3.3 Execution, Authentication and Delivery of Residual Interest
            Certificates ....................................................    9
Section 3.4 Registration of Transfer and Exchange of Residual Interest
            Certificates ....................................................   10
Section 3.5 Mutilated, Destroyed, Lost or Stolen Residual Interest
            Certificates ....................................................   11
Section 3.6 Persons Deemed Owners ...........................................   11
Section 3.7 Access To List of Owners' Names and Addresses ...................   11
Section 3.8 Maintenance of Office or Agency .................................   11
Section 3.9 Appointment of Paying Agent .....................................   12
Section 3.10 Restrictions on Transfer of Residual Interest Certificates .....   12
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                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

<S>                                                                             <C>
Section 4.1 Prior Notice To Owners With Respect To Certain Matters; Covenants   15
Section 4.3 Action By Owners With Respect To Certain Matters ................   18
Section 4.4 Action By Owners With Respect To Bankruptcy .....................   18
Section 4.5 Restrictions On Owners' Power ...................................   18
Section 4.6 Majority Control ................................................   19

                                    ARTICLE V

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

Section 5.1 Establishment of Trust Account ..................................   19
Section 5.2 Application of Trust Funds ......................................   19
Section 5.3 Method of Payment ...............................................   20
Section 5.4 Segregation of Moneys; No Interest ..............................   20
Section 5.5 Accounting And Reports To The Certificateholder, Owners, The
            Internal Revenue Service And Others .............................   21

                                   ARTICLE VI

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

Section 6.1 General Authority ...............................................   21
Section 6.2 General Duties ..................................................   22
Section 6.3 Action Upon Instruction .........................................   22
Section 6.4 No Duties Except As Specified In This Agreement, The Basic
            Documents Or In Instructions ....................................   23
Section 6.5 No Action Except Under Specified Documents Or Instructions ......   24
Section 6.6 Restrictions ....................................................   24

                                   ARTICLE VII

                          CONCERNING THE OWNER TRUSTEE

Section 7.1 Acceptance of Trusts And Duties .................................   24
Section 7.2 Furnishing of Documents .........................................   25
Section 7.3 Representations And Warranties ..................................   25
Section 7.4 Reliance; Advice of Counsel .....................................   26
Section 7.5 Not Acting In Individual Capacity ...............................   27
Section 7.6 Owner Trustee Not Liable For Residual Interest Certificates Or
            Home Loans ......................................................   27
Section 7.7 Owner Trustee May Own Residual Interest Certificates And Notes ..   27
Section 7.8 Licenses ........................................................   27
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                                  ARTICLE VIII

                 COMPENSATION OF OWNER TRUSTEE AND PAYING AGENT
<S>                                                                             <C>
Section 8.1 Fees And Expenses ...............................................   28
Section 8.2 Indemnification .................................................   28
Section 8.3 Payments To The Owner Trustee And Paying Agent ..................   28

                                   ARTICLE IX

                      TERMINATION OF OWNER TRUST AGREEMENT

Section 9.1 Termination of Owner Trust Agreement ............................   28

                                    ARTICLE X

                            SUCCESSOR OWNER TRUSTEES
                          AND ADDITIONAL OWNER TRUSTEES

Section 10.1 Eligibility Requirements For Owner Trustee .....................   30
Section 10.2 Resignation Or Removal Of Owner Trustee ........................   30
Section 10.3 Successor Owner Trustee ........................................   31
Section 10.4 Merger Or Consolidation Of Owner Trustee .......................   31
Section 10.5 Appointment Of Co-Owner Trustee Or Separate Owner Trustee ......   31

                                   ARTICLE XI

                                  MISCELLANEOUS

Section 11.1  Supplements And Amendments ....................................   33
Section 11.2  No Legal Title To Trust Estate In Owners ......................   34
Section 11.3  Limitations On Rights Of Others ...............................   34
Section 11.4  Notices .......................................................   34
Section 11.5  Severability ..................................................   35
Section 11.6  Separate Counterparts .........................................   35
Section 11.7  Successors And Assigns ........................................   35
Section 11.8  No Petition ...................................................   35
Section 11.9  No Recourse ...................................................   35
Section 11.10 Headings ......................................................   35
Section 11.11 GOVERNING LAW .................................................   35
Section 11.12 Residual Interest Transfer Restrictions .......................   36
Section 11.13 [Third-Party Beneficiary ......................................   36

EXHIBIT A Form of Residual Interest Certificate
EXHIBIT B Form of Certificate of Trust
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            THIS OWNER TRUST AGREEMENT, dated as of _________, 200__
("Agreement"), among HSI ASSET SECURITIZATION CORPORATION, a Delaware
corporation, as Depositor (the "Depositor"), _________________________, a
____________________ (the "Company"), _________________________, a
____________________, as Owner Trustee (the "Owner Trustee") and
_________________________, a ____________________ (the "Paying Agent").

                              W I T N E S S E T H:

            In consideration of the mutual agreements and covenants herein
contained, the Depositor, the Company, the Paying Agent and the Owner Trustee
hereby agree for the benefit of each of them and the holders of the Residual
Interest Certificates as follows:

                                    ARTICLE I

                                   DEFINITIONS

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

            "Administration Agreement" shall mean the Administration Agreement,
dated as of ____________, 200__, among the Issuer, the Company, as the Company
and the Master Servicer, and _____________________________, as Administrator, as
the same may be amended from time to time.

            "Administrator" shall mean ______________________, or any successor
in interest thereto, in its capacity as Administrator under the Administration
Agreement.

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

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

            "Benefit Plan Investor" shall have the meaning assigned to such term
in Section 3.10(B).

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

            "Certificate Distribution Account" shall have the meaning assigned
to such term in Section 5.1.

<PAGE>

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

            "Certificate Register" and "Certificate Registrar" shall mean the
register mentioned and the registrar appointed pursuant to Section 3.4.

            "Certificateholder" or "Holder" shall mean a Person in whose name a
Residual Interest Certificate is registered.

            "Corporate Trust Office" shall mean, with respect to the Trust, the
principal corporate trust office of the Trust located at ___________ Home Loan
Owner Trust 200__-__ c/o ______________________________________________________,
Attention: Corporate Trust Administration; or at such other address in the State
of Delaware as the Owner Trustee may designate by notice to the Owners, the
[Securities Insurer] and the Company, or the principal corporate trust office of
any successor Owner Trustee (the address (which shall be in the State of
Delaware) of which the successor owner trustee will notify the Owners, the
[Securities Insurer] and the Company).

            "Definitive Certificate" means a certificated form of security that
represents a Residual Interest Certificate.

            "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended.

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

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

            "Indemnification Agreement" shall mean the Indemnification
Agreement, dated as of ___________, 200__, among the [Securities Insurer], the
Company, the Issuer, the Depositor, HSBC Securities (USA) Inc.,
_________________________ and _________________________.

            "Indenture" shall mean the Indenture, dated as of __________, 200__,
by and between the Issuer and the Indenture Trustee, as the same may be amended
or supplemented from time to time.

            "Indenture  Trustee" means  _______________,  as Indenture Trustee
under the Indenture.

            "Issuer" shall mean ____________ Home Loan Owner Trust 200__-__, the
Delaware business trust created pursuant to this Agreement.

            "Majority Residual Interestholders" shall mean the Holders of more
than an aggregate 50% Percentage Interest of the Residual Interest.

            "Owner" shall mean each holder of a Residual Interest Certificate.

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            "Owner Trustee" shall mean _________________________, a
________________, not in its individual capacity but solely as owner trustee
under this Agreement, and any successor owner trustee hereunder.

            "Paying Agent" shall mean the Indenture Trustee or any successor in
interest thereto or any other paying agent or co-paying agent appointed pursuant
to Section 3.9 hereunder and authorized by the Issuer to make payments to and
distributions from the Certificate Distribution Account.

            "Percentage Interest" shall mean with respect to each Residual
Interest Certificate, the percentage portion of all of the Residual Interest
evidenced thereby as stated on the face of such Residual Interest Certificate.

            "Prospective Owner" shall have the meaning set forth in Section
3.10(A).

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

            "Record Date" shall mean as to each Payment Date the last Business
Day of the month immediately preceding the month in which such Payment Date
occurs.

            "Residual Interest" shall mean the right to receive distributions of
Excess Spread, if any, and certain other funds, if any, on each Payment Date,
pursuant to Section 5.2 of this Agreement, Sections 5.01(e) and 5.02(b) of the
Sale and Servicing Agreement and Section 5.04(b) of the Indenture.

            "Residual Interest Certificate" shall mean a certificate
substantially in the form attached as Exhibit A hereto and evidencing the
Residual Interest.

            "Residual Interestholder" shall mean any Holder of a Percentage
Interest of the Residual Interest.

            "Sale and Servicing Agreement" shall mean the Sale and Master
Servicing Agreement dated as of the date hereof, among the Owner Trust as
Issuer, HSI Asset Securitization Corporation, as Depositor, _________________,
as Indenture Trustee and the Company, as Transferor and Master Servicer, as the
same may be amended or supplemented from time to time.

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

            ["Securities Insurer" shall mean _________________________]

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            "Servicer" shall mean _______________________, a ____________
corporation, or any successor in interest thereto.

            "Servicing Agreement" shall mean the Servicing Agreement
incorporating by reference the Agreement Regarding Standard Servicing Terms,
each dated as of the date hereof, between the Company and the Servicer, as the
same may be amended or supplemented from time to time.

            "Trust" shall mean the trust established by this Agreement.

            "U.S. Person" shall mean a citizen or resident of the United States,
a corporation or partnership (except as provided in applicable Treasury
regulations) created or organized in or under the laws of the United States, any
state or the District of Columbia, including any entity treated as a corporation
or partnership for federal income tax purposes an estate that is subject to U.S.
federal income tax regardless of the source of its income, or a trust if a court
within the United States is able to exercise primary supervision over the
administration of the trust and one or more such U.S. Persons have authority to
control all substantial decisions of the trust (or, to the extent provided in
Treasury regulations, certain trusts in existence on August 20, 1996 which are
eligible to be treated as U.S. Persons).

            Section 1.2 Other Definitional Provisions.

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

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

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

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

                                      -4-
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            (e) The definitions contained in this Agreement are applicable to
the singular as well as the plural forms of such terms and to the masculine as
well as to the feminine and neuter genders of such terms.

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

                                   ARTICLE II

                                  ORGANIZATION

            Section 2.1 Name. The Trust created hereby shall be known as
"____________ Home Loan Owner Trust 200__-__", 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 2.2 Office. The office of the Trust shall be in care of the
Owner Trustee at the Corporate Trust Office or at such other address in Delaware
as the Owner Trustee may designate by written notice to the Owners, [the
Securities Insurer] and the Company.

            Section 2.3 Purposes and Powers. The purpose of the Trust is to
engage in the following activities:

            (i) to issue the Notes pursuant to the Indenture and to sell such
      Notes;

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

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

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

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

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

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            (vii) to issue the Residual Interest Certificates pursuant to this
      Agreement.

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

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

            Section 2.5 Initial Capital Contribution of Trust Estate. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, 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 Trust Estate and
shall be deposited in the Certificate Distribution Account. The Depositor or the
Company shall pay reasonable organizational expenses of the Trust as they may
arise or shall, upon the request of the Owner Trustee, promptly reimburse the
Owner Trustee for any such expenses paid by the Owner Trustee.

            Section 2.6 Declaration of Trust. The Owner Trustee hereby declares
that it will hold the Trust Estate in trust upon and subject to the conditions
set forth herein for the use and benefit of the Owners, 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 Agreement constitute the governing instrument of
such business trust. It is the intention of the parties hereto that, solely for
federal, state and local income and franchise tax purposes (i) so long as there
is a sole Owner, the Trust shall be treated as a security arrangement, with the
assets of the Trust being the Home Loans and the other assets held by the Trust,
the owner of the Home Loans being the sole Owner and the Notes being
non-recourse debt of the sole Owner, and (ii) if there is more than one Owner,
the Trust shall be treated as a partnership, with the assets of the partnership
being the Home Loans and other assets held by the Trust, the partners of the
partnership being the holders of the Home Loans and the Notes being non-recourse
debt of the partnership. The Trust shall not elect to be treated as an
association under Treasury Regulations Section 301.7701-3(a) for federal income
tax purposes. The parties agree that, unless otherwise required by appropriate
tax authorities, the sole Owner or the Trust will file or cause to be filed
annual or other necessary returns, reports and other forms consistent with the
characterization of the Trust as provided in the second preceding sentence for
such tax purposes. Effective as of the date hereof, the Owner Trustee shall have
all rights, powers and duties set forth herein and in the Business Trust Statute
with respect to accomplishing the purposes of the Trust.

            Section 2.7 Title To Trust Property.

            (a) Subject to the Indenture, legal title to all the 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 Trust
Estate to be vested in a trustee or trustees, in which case title shall be
deemed to be vested in the Owner Trustee and/or a separate trustee, as the case
may be.

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<PAGE>

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

            Section 2.8 Situs of Trust. The Trust will be located and
administered in the State of Delaware. All bank accounts maintained by the Owner
Trustee on behalf of the Trust shall be located in the State of Delaware [or the
State of New York,] except with respect to accounts maintained by the Indenture
Trustee on behalf of the Owner Trustee. The Trust shall not have any employees;
provided, however, that nothing herein shall restrict or prohibit the Owner
Trustee from having employees within or without the State of Delaware. Payments
will be received by the Trust only in Delaware [or New York,] and payments will
be made by the Trust only from Delaware [or New York,] except with respect to
payments made by the Indenture Trustee on behalf of the Owner Trustee. The only
offices of the Trust will be at the Corporate Trust Office in Delaware.

            Section 2.9 Representations and Warranties of The Depositor and The
Company; Covenants of The Company.

            (a) The Depositor hereby represents and warrants to the Owner
Trustee [and the Securities Insurer] that:

            (i) The Depositor is a corporation duly organized, validly existing,
      and in good standing under the laws of the State of Delaware and has all
      licenses necessary to carry on its business as now being conducted. The
      Depositor has the power and authority to execute and deliver this
      Agreement and to perform in accordance herewith; the execution, delivery
      and performance of this Agreement (including all instruments of transfer
      to be delivered pursuant to this Agreement) by the Depositor and the
      consummation of the transactions contemplated hereby have been duly and
      validly authorized by all necessary action of the Depositor; this
      Agreement evidences the valid, binding and enforceable obligation of the
      Depositor; and all requisite action has been taken by the Depositor to
      make this Agreement valid, binding and enforceable upon the Depositor in
      accordance with its terms, subject to the effect of bankruptcy,
      insolvency, reorganization, moratorium and other, similar laws relating to
      or affecting creditors' rights generally or the application of equitable
      principles in any proceeding, whether at law or in equity;

            (ii) The consummation of the transactions contemplated by this
      Agreement will not result in (i) the breach of any terms or provisions of
      the certificate of formation or the limited liability company agreement of
      the Depositor, (ii) the breach of any term or provision of, or conflict
      with or constitute a default under or result in the acceleration of any
      obligation under, any material agreement, indenture or loan or credit
      agreement or other material instrument to which the Depositor, or its
      property is subject, or (iii) the violation of any law, rule, regulation,
      order, judgment or decree to which the Depositor or its property is
      subject;

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<PAGE>

            (iii) The Depositor 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 other governmental agency, which default might have
      consequences that would materially and adversely affect the condition
      (financial or otherwise) or operations of the Depositor or its properties
      or might have consequences that would materially and adversely affect its
      performance hereunder.

            (b) The Company hereby represents and warrants to the Owner Trustee
[and the Securities Insurer] that:

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

            (ii) The Company is duly qualified to do business as a foreign
      corporation in good standing, and has obtained all necessary licenses and
      approvals, in all jurisdictions in which the ownership or lease of
      property or the conduct of its business shall require such qualifications.

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

            (iv) The consummation of the transactions contemplated by this
      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 certificate
      of incorporation or by-laws of the Company, or any indenture, agreement or
      other instrument to which the Company 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 Company's knowledge, any order, rule or
      regulation applicable to the Company of any court or of any Federal or
      state regulatory body, administrative agency or other governmental
      instrumentality having jurisdiction over the Company or its properties.

            (v) There are no proceedings or investigations pending or, to the
      Company's best knowledge, threatened, before any court, regulatory body,
      administrative agency or other governmental instrumentality having
      jurisdiction over the Company or its properties: (i) asserting the
      invalidity of this Agreement, (ii) seeking to prevent the consummation of
      any of the transactions contemplated by this Agreement or (iii) seeking
      any determination or ruling that might materially and adversely affect the
      performance by the Company of its obligations under, or the validity or
      enforceability of, this Agreement.

            (vi) The Company is not (A) an "employee benefit plan" within the
      meaning of Section 3(3) of ERISA, or (B) a "plan" within the meaning of
      Section 4975(e)(1) of the Code or (C) an entity, including an insurance
      company separate account or general

                                      -8-
<PAGE>

      account, whose underlying assets include plan assets by reason of a plan's
      investment in the entity (each, a "Benefit Plan Investor") and is not
      directly or indirectly purchasing such Residual Interest Certificate on
      behalf of, as investment manager of, as named fiduciary of, as trustee of,
      or with the assets of a Benefit Plan Investor.

            (vii) The Company is a U.S. Person.

            (c) The Company covenants with the Owner Trustee that during the
continuance of this Agreement it will comply in all respects with the provisions
of its Certificate of Incorporation in effect from time to time.

                                   ARTICLE III

            RESIDUAL INTEREST CERTIFICATES AND TRANSFER OF INTERESTS

            Section 3.1 Initial Ownership. Upon the formation of the Trust by
the contribution by the Depositor pursuant to Section 2.5 and until the issuance
of the Residual Interest Certificates, the Depositor shall be the sole Owner of
the Trust.

            Section 3.2 The Residual Interest Certificates. The Residual
Interest Certificates shall not be issued with a principal amount. The Residual
Interest Certificates shall be executed on behalf of the Trust by manual or
facsimile signature of a Trust Officer of the Owner Trustee. Residual Interest
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 valid and binding obligations of the Trust,
notwithstanding that such individuals or any of them shall have ceased to be so
authorized prior to the authentication and delivery of such Residual Interest
Certificates or did not hold such offices at the date of authentication and
delivery of such Residual Interest Certificates.

            A transferee of a Residual Interest Certificate shall become an
Owner, and shall be entitled to the rights and subject to the obligations of an
Owner hereunder and under the Sale and Servicing Agreement, upon such
transferee's acceptance of a Residual Interest Certificate duly registered in
such transferee's name pursuant to Section 3.4.

            Section 3.3 Execution, Authentication and Delivery of Residual
Interest Certificates. Concurrently with the initial sale of the Home Loans to
the Trust pursuant to the Sale and Servicing Agreement, the Owner Trustee on
behalf of the Trust shall cause the Residual Interest Certificates representing
100% of the Percentage Interests of the Residual Interest to be executed,
authenticated and 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 Residual Interest Certificate shall entitle its holder to any benefit under
this Agreement, or shall be valid for any purpose, unless there shall appear on
such Residual Interest Certificate a certificate of authentication substantially
in the form set forth in Exhibit A, executed by the Owner Trustee or the
Administrator, as the Owner Trustee's authenticating agent, by manual or
facsimile signature; such authentication shall constitute conclusive evidence
that such Residual Interest Certificate shall have been duly authenticated

                                      -9-
<PAGE>

and delivered hereunder. All Residual Interest Certificates shall be dated the
date of their authentication. [No Certificates, except the Residual Interest
Certificates, shall be issued by the Trust without the prior written consent of
the Securities Insurer.]

            Section 3.4 Registration of Transfer and Exchange of Residual
Interest Certificates. The Certificate Registrar shall keep or cause to be kept,
at the office or agency maintained pursuant to Section 3.8 a Certificate
Register in which, subject to such reasonable regulations as it may prescribe,
the Owner Trustee shall provide for the registration of Residual Interest
Certificates and of transfers and exchanges of Residual Interest Certificates as
herein provided. The Administrator shall be the initial Certificate Registrar.

            Upon surrender for registration of transfer of any Residual Interest
Certificate at the office or agency maintained pursuant to Section 3.8, the
Owner Trustee shall execute, authenticate and deliver (or shall cause the
Administrator as its authenticating agent to authenticate and deliver), in the
name of the designated transferee or transferees, one or more new Residual
Interest Certificates in authorized denominations of a like aggregate amount
dated the date of authentication by the Owner Trustee or any authenticating
agent, provided that prior to such execution, authentication and delivery, the
Owner Trustee, the Administrator[, the Securities Insurer] and the Certificate
Registrar shall have received an Opinion of Counsel to the effect that the
proposed transfer will not cause the Trust to be characterized as an association
(or a publicly traded partnership) taxable as a corporation or alter the tax
characterization of the Notes for federal income tax or ________ state law
purposes. At the option of an Owner, Residual Interest Certificates may be
exchanged for other Residual Interest Certificates of authorized denominations
of a like aggregate amount upon surrender of the Residual Interest Certificates
to be exchanged at the office or agency maintained pursuant to Section 3.8.

            Every Residual Interest Certificate presented or surrendered for
registration of transfer or exchange shall be accompanied by a written
instrument of transfer in form satisfactory to the Owner Trustee and the
Certificate Registrar duly executed by the Owner or his attorney duly authorized
in writing. In addition, each Residual Interest Certificate presented or
surrendered for registration of transfer and exchange must be accompanied by a
letter from the Prospective Owner certifying as to the representations set forth
in Sections 3.10(a) and (b). Each Residual Interest Certificate surrendered for
registration of transfer or exchange shall be in substantially the form attached
hereto as Exhibit A and shall be canceled and disposed of by the Owner Trustee
or the Certificate Registrar in accordance with its customary practice.

            No service charge shall be made for any registration of transfer or
exchange of Residual Interest 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 Residual Interest Certificates.

            The preceding provisions of this Section notwithstanding, the Owner
Trustee shall not make and the Certificate Registrar shall not register
transfers or exchanges of Residual Interest Certificates for a period of 15 days
preceding the due date for any payment with respect to the Residual Interest
Certificates.

                                      -10-
<PAGE>

            Section 3.5 Mutilated, Destroyed, Lost or Stolen Residual Interest
Certificates. If (a) any mutilated Residual Interest 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
Residual Interest Certificate and (b) there shall be delivered to the
Certificate Registrar and the Owner Trustee such security or indemnity as may be
required by them to save each of them harmless, then in the absence of notice
that such Residual Interest Certificate shall have been acquired by a bona fide
purchaser, the Owner Trustee on behalf of the Trust shall execute and the Owner
Trustee, or the Administrator as the Owner Trustee's authenticating agent, shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Residual Interest Certificate, a new Residual Interest
Certificate of like tenor and denomination. In connection with the issuance of
any new Residual Interest Certificate under this Section, the Owner Trustee or
the Certificate Registrar may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection
therewith. Any duplicate Residual Interest Certificate issued pursuant to this
Section shall constitute conclusive evidence of ownership in the Trust, as if
originally issued, whether or not the lost, stolen or destroyed Residual
Interest Certificate shall be found at any time.

            Section 3.6 Persons Deemed Owners. Prior to due presentation of a
Residual Interest Certificate for registration of transfer, the Owner Trustee or
the Certificate Registrar may treat the Person in whose name any Residual
Interest Certificate shall be registered in the Certificate Register as the
owner of such Residual Interest Certificate for the purpose of receiving
distributions pursuant to Section 5.2 and for all other purposes whatsoever, and
neither the Owner Trustee nor the Certificate Registrar shall be bound by any
notice to the contrary.

            Section 3.7 Access To List of Owners' Names and Addresses. The Owner
Trustee shall furnish or cause to be furnished to the Master Servicer, the
Servicer, the Depositor, [the Securities Insurer] and the Indenture Trustee,
within ___ days after receipt by the Owner Trustee of a request therefor from
the Master Servicer, the Servicer, the Depositor, [the Securities Insurer] or
the Indenture Trustee in writing, a list, in such form as the Master Servicer,
the Servicer, the Depositor, [the Securities Insurer] or the Indenture Trustee
may reasonably require, of the names and addresses of the Owners as of the most
recent Record Date. If a Certificateholder applies in writing to the Owner
Trustee, and such application states that the applicant desire to communicate
with other Certificateholders with respect to their rights under this Agreement
or under the Residual Interest Certificates and such application is accompanied
by a copy of the communication that such applicants propose to transmit, then
the Owner Trustee shall, within __________ Business Days after the receipt of
such application, afford such applicants access during normal business hours to
the current list of Certificateholders. Each Owner, by receiving and holding a
Residual Interest Certificate, shall be deemed to have agreed not to hold any of
the Depositor, the Company, the Certificate Registrar, [the Securities Insurer]
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 3.8 Maintenance of Office or Agency. The Owner Trustee shall
maintain an office or offices or agency or agencies where Residual Interest
Certificates may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Owner Trustee in respect of the
Residual Interest Certificates and the Basic Documents may be served. The Owner
Trustee initially designates the Administrator's office in the city of

                                      -11-
<PAGE>

_____________________ as its principal corporate trust office for such purposes.
The Owner Trustee shall give prompt written notice to the Company, [the
Securities Insurer] and to the Certificateholders of any change in the location
of the Certificate Register or any such office or agency.

            Section 3.9 Appointment of Paying Agent. The Owner Trustee hereby
appoints the Indenture Trustee as Paying Agent under this Agreement. The Owner
Trustee hereby appoints the Paying Agent to establish and maintain the
Certificate Distribution Account. The Paying Agent shall make distributions to
Residual Interestholders from the Certificate Distribution Account pursuant to
Section 5.2 hereof and Section 5.02 of the Sale and Servicing Agreement and
shall report the amounts of such distributions to the Owner Trustee. The Paying
Agent shall have the revocable power to withdraw funds from the Certificate
Distribution Account for the purpose of making the distributions referred to
above. In the event that the Indenture Trustee shall no longer be the Paying
Agent hereunder, the Owner Trustee shall appoint a successor to act as Paying
Agent (which shall be a bank or trust company) [acceptable to the Securities
Insurer]. The Owner Trustee shall cause such successor Paying Agent or any
additional Paying Agent appointed by the Owner Trustee to execute and deliver to
the Owner Trustee an instrument in which such successor Paying Agent or
additional Paying Agent shall agree with the Owner Trustee that as Paying Agent,
such successor Paying Agent or additional Paying Agent will hold all sums, if
any, held by it for payment to the Owners in trust for the benefit of the
Residual Interestholders entitled thereto until such sums shall be paid to such
Owners. The Paying Agent shall return all unclaimed funds to the Owner Trustee,
and upon removal of a Paying Agent, such Paying Agent shall also return all
funds in its possession to the Owner Trustee. The provisions of Sections 7.1,
7.3, 7.4 and 8.1 shall apply to the Indenture Trustee also in its role as Paying
Agent, for so long as the Indenture Trustee shall act as Paying Agent and, to
the extent applicable, to any other paying agent appointed hereunder. Any
reference in this Agreement to the Paying Agent shall include any co-paying
agent unless the context requires otherwise. Notwithstanding anything herein to
the contrary, the Paying Agent shall be the same entity as the Indenture Trustee
under the Indenture and the Sale and Servicing Agreement, [unless the Securities
Insurer consents to a different Paying Agent or a Securities Insurer Default has
occurred and is continuing.] [Notwithstanding any other provision, if a
Securities Insurer Default occurs, then the Securities Insurer's consent or
direction is not required.] If the Paying Agent ceases to be the same entity as
the Indenture Trustee under the Indenture and the Sale and Servicing Agreement,
then[, unless the Securities Insurer otherwise consents,] the Paying Agent shall
resign and the Owner Trustee shall assume the duties and obligations of the
Paying Agent hereunder and under the Sale and Servicing Agreement.

            Section 3.10 Restrictions on Transfer of Residual Interest
Certificates.

            (a) Each prospective purchaser and any subsequent transferee of a
Residual Interest Certificate (each, a "Prospective Owner"), other than the
Company, shall represent and warrant, in writing, to the Owner Trustee, [the
Securities Insurer] and the Certificate Registrar and any of their respective
successors that:

            (i) Such Person is (A) a "qualified institutional buyer" as defined
      in Rule 144A under the Securities Act of 1933, as amended (the "Securities
      Act"), and is aware that the seller of the Residual Interest Certificate
      may be relying on the exemption from

                                      -12-
<PAGE>

      the registration requirements of the Securities Act provided by Rule 144A
      and is acquiring such Residual Interest Certificate for its own account or
      for the account of one or more qualified institutional buyers for whom it
      is authorized to act, or (B) an institutional "accredited investor" within
      the meaning of subparagraph (a)(1), (2), (3) or (7) of Rule 501 under the
      Securities Act (an "Institutional Accredited Investor") that is acquiring
      the Residual Interest Certificate for its own account, or for the account
      of such an Institutional Accredited Investor, for investment purposes and
      not with a view to, or for offer or sale in connection with any
      distribution in violation of the Securities Act.

            (ii) Such Person understands that the Residual Interest Certificate
      have not been and will not be registered under the Securities Act and may
      be offered, sold or otherwise transferred only to a person whom the seller
      reasonably believes is (A) a qualified institutional buyer or (B) an
      Institutional Accredited Investor, and in accordance with the terms hereof
      and any applicable securities laws of any state of the United States.

            (iii) Such Person understands that the Residual Interest
      Certificates bear a legend to the following effect:

            "THE RESIDUAL INTEREST IN THE TRUST REPRESENTED BY THIS RESIDUAL
            INTEREST CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
            THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE
            SECURITIES LAWS. THIS RESIDUAL INTEREST CERTIFICATE MAY BE DIRECTLY
            OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER
            HEREOF ONLY TO (I) A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN
            RULE 144A UNDER THE ACT, IN A TRANSACTION THAT IS REGISTERED UNDER
            THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM
            THE REGISTRATION REQUIREMENTS OF THE ACT PURSUANT TO RULE 144A OR
            (II) AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF
            SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE ACT IN A
            TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE
            SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS
            OF THE ACT AND SUCH LAWS. NO PERSON IS OBLIGATED TO REGISTER THIS
            RESIDUAL INTEREST CERTIFICATE UNDER THE ACT OR ANY STATE SECURITIES
            LAWS."

            (iv) Such Person shall comply with the provisions of Section
      3.10(B), as applicable, relating to the ERISA restrictions with respect to
      the acceptance or acquisition of such Residual Interest Certificate.

                                      -13-
<PAGE>

            (b) Each Prospective Owner shall either:

            (i) represent and warrant, in writing, to the Owner Trustee, [the
      Securities Insurer] and the Certificate Registrar and any of their
      respective successors that the Prospective Owner is not (A) an "employee
      benefit plan" within the meaning of Section 3(3) of ERISA, or (B) a "plan"
      within the meaning of Section 4975(e)(1) of the Code or (C) an entity,
      including an insurance company separate account or general account, whose
      underlying assets include plan assets by reason of a plan's investment in
      the entity (each, a "Benefit Plan Investor") and is not directly or
      indirectly purchasing such Residual Interest Certificate on behalf of, as
      investment manager of, as named fiduciary of, as trustee of, or with the
      assets of a Benefit Plan Investor; or

            (ii) furnish to the Owner Trustee, [the Securities Insurer] and the
      Certificate Registrar and any of their respective successors an opinion of
      counsel acceptable to such persons that (A) the proposed transfer of the
      Residual Interest Certificate to such Prospective Owner will not cause any
      assets of the Trust to be deemed "plan assets" within the meaning of
      United States Department of Labor Regulation Section 2510.3-101, or (B)
      the proposed transfer of the Residual Interest Certificate will not give
      rise to a transaction described in Section 406 of ERISA or Section
      4975(c)(1) of the Code for which a statutory or administrative exemption
      is unavailable.

            (c) The Residual Interest Certificates shall bear an additional
legend referring to the foregoing restrictions contained in paragraph (b) above.

            (d) Each Prospective Owner, other than the Company, shall represent
and warrant, in writing, to the Owner Trustee, [the Securities Insurer] and the
Certificate Registrar and any of their respective successors that it is a person
who is either (A)(i) a citizen or resident of the United States, (ii) a
corporation or partnership organized in or under the laws of the United States,
any state or the District of Columbia, including any entity treated as a
corporation or partnership for federal income tax purposes or (iii) a person not
described in (A)(i) or (ii) whose ownership of the Residual Interest Certificate
is effectively connected with such person's conduct of a trade or business
within the United States (within the meaning of the Code) and its ownership of
any interest in a Residual Interest Certificate will not result in any
withholding obligation with respect to any payments with respect to the Residual
Interest Certificates by any person (other than withholding, if any, under
Section 1446 of the Code) or (B) an estate the income of which is subject to
United States federal income tax, regardless of source, or a trust if a court
within the United States is able to exercise primary supervision over the
administration of such trust and one or more persons described in this paragraph
have the authority to control all substantial decisions of such trust (a person
described in (A)(i), (A)(ii), or B, a "U.S. Person" for purposes of this Section
3.10). It agrees that it will provide a certification of non-foreign status
signed under penalties of perjury and, alternatively, that if it is a person
described in clause (A)(iii) above, it will furnish to the Administrator a
properly executed IRS Form 4224 (or successor form thereto) and a new IRS Form
4224 (or successor form thereto) upon the expiration or obsolescence of any
previously delivered form (and such other certifications, representations or
opinions of counsel as may be requested by the Company).

                                      -14-
<PAGE>

            (e) Each Certificateholder that is not a U.S. Person agrees that,
subsequent to delivery to the Owner Trustee, [the Securities Insurer] and the
Certificate Registrar of IRS Form 4224 or appropriate successor forms required
to evidence that the Certificateholder holds its Residual Interest
Certificate(s) in connection with a U.S. trade or business (within the meaning
of the Code), it will deliver to the Company and the Owner Trustee further
copies of the said IRS Form 4224 or such appropriate successor forms or other
manner of certification, as the case may be, on or before the date that any such
form expires or becomes obsolete or after the occurrence of any event requiring
a change in the most recent form previously delivered by it to the Company and
the Owner Trustee, and such extensions or renewals thereof as may reasonably be
requested by the Company and the Owner Trustee. Further, each Certificateholder
that is not a U.S. Person covenants as a condition to acquiring its Residual
Interest Certificate that for so long as it shall hold such Residual Interest
Certificate it shall be held in such manner that the income therefrom shall be
effectively connected with the conduct of a U.S. trade or business. In the event
that any Certificateholder shall breach the certifications, representations,
warranties or covenants set forth in this Article III, such Certificateholder
shall indemnify the Company, the Owner Trustee and the Trust for any amounts
(including interest and penalties thereon) payable by the Company, the Owner
Trustee or the Trust as a result of such breach.

                                   ARTICLE IV

                            ACTIONS BY OWNER TRUSTEE

            Section 4.1 Prior Notice To Owners With Respect To Certain Matters;
Covenants. Section 4.2 With respect to the following matters, the Owner Trustee
shall not take action, and the Owners shall not direct the Owner Trustee to take
any action, unless at least 30 days before the taking of such action, the Owner
Trustee shall have notified the Owners [and the Securities Insurer] in writing
of the proposed action and [(i) the Securities Insurer shall have consented
thereto and] (ii) the Owners shall not have notified the Owner Trustee in
writing prior to the 30th day after such notice is given that such Owners have
withheld consent or the Owners have provided alternative direction [(any
direction by the Owners shall require the prior consent of the Securities
Insurer)]:

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

            (ii) 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);

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

            (iv) the appointment pursuant to the Indenture of a successor Note
      Registrar, Paying Agent or Indenture Trustee or pursuant to this Agreement
      of a successor Certificate Registrar, or the consent to the assignment by
      the Note Registrar, Paying

                                      -15-
<PAGE>

      Agent or Indenture Trustee or Certificate Registrar of its obligations
      under the Indenture or this Agreement, as applicable;

            (v) the consent to the calling or waiver of any default of any Basic
      Document;

            (vi) the consent to the assignment by the Indenture Trustee, the
      Master Servicer or Servicer of their respective obligations under any
      Basic Document;

            (vii) except as provided in Article IX hereof, dissolve, terminate
      or liquidate the Trust in whole or in part; (viii) merge or consolidate
      the Trust with or into any other entity, or convey or transfer all or
      substantially all of the Trust's assets to any other entity;

            (viii) cause the Trust to incur, assume or guaranty any indebtedness
      other than as set forth in this Agreement;

            (ix) do any act that conflicts with any other Basic Document;

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

            (xi) confess a judgment against the Trust;

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

            (xiii) cause the Trust to lend any funds to any entity; or

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

            (b) Notwithstanding any provision of Section 4.1(a), the Owner
Trustee on behalf of the Trust agrees to abide by the following restrictions:

            (i) Other than as contemplated by the Basic Documents and related
      documentation, the Trust shall not incur any indebtedness.

            (ii) Other than as contemplated by the Basic Documents and related
      documentation, the Trust shall not engage in any dissolution, liquidation,
      consolidation, merger or sale of assets.

            (iii) The Trust shall not engage in any business activity in which
      it is not currently engaged other as contemplated by the Basic Documents
      and related documentation.

            (iv) The Trust shall not form, or cause to be formed, any
      subsidiaries and shall not own or acquire any asset other than as
      contemplated by the Basic Documents and related documentation.

                                      -16-
<PAGE>

            (v) Other than as contemplated by the Basic Documents and related
      documentation, the Trust shall not follow the directions or instructions
      of the Company.

            (c) The Owner Trustee on behalf of the Trust shall:

            (i) Maintain the Trust's books and records separate from any other
      person or entity.

            (ii) Maintain the Trust's bank accounts separate from any other
      person or entity.

            (iii) Not commingle the Trust's assets with those of any other
      person or entity.

            (iv) Conduct the Trust's own business in its own name.

            (v) Other than as contemplated by the Basic Documents and related
      documentation, pay the Trust's own liabilities and expenses only out of
      its own funds.

            (vi) Observe all formalities required under the Business Trust
      Statute.

            (vii) Enter into transactions with Affiliates or the Company only if
      each such transaction is intrinsically fair, commercially reasonable, and
      on the same terms as would be available in an arm's length transaction
      with a person or entity that is not an Affiliate.

            (viii) Not guarantee or become obligated for the debts of any other
      entity or person.

            (ix) Not hold out the Trust's credit as being available to satisfy
      the obligation of any other person or entity.

            (x) Not acquire the obligations or securities of the Trust's
      Affiliates or the Company.

            (xi) Other than as contemplated by the Basic Documents and related
      documentation, not make loans to any other person or entity or buy or hold
      evidence of indebtedness issued by any other person or entity.

            (xii) Other than as contemplated by the Basic Documents and related
      documentation, not pledge the Trust's assets for the benefit of any other
      person or entity.

            (xiii) Hold the Trust out as a separate entity and conduct any
      business only in its own name.

            (xiv) Correct any known misunderstanding regarding the Trust's
      separate identity.

            (xv) Not identify the Trust as a division of any other person or
      entity.

                                      -17-
<PAGE>

            (xvi) Maintain appropriate minutes or other records of appropriate
      actions and shall maintain its office separate from the office of the
      Company, the Depositor and the Master Servicer.

            So long as the Notes or any other amounts owed under the Indenture
remain outstanding, the Trust shall not amend this Section 4.1 without the prior
written consent of 100% of the Voting Interests of the Notes and the consent of
each Rating Agency, in addition to the requirements under Section 11.1.

            (d) The Owner Trustee shall not have the power, except upon the
direction of the Owners [with the consent of the Securities Insurer or upon the
direction of the Securities Insurer,] and, subject to Section 11.18 of the
Indenture, 100% of the Noteholders, and to the extent otherwise consistent with
the Basic Documents, to (i) remove or replace the Servicer, the Master Servicer
or the Indenture Trustee, (ii) institute proceedings to have the Trust declared
or adjudicated a bankrupt or insolvent, (iii) consent to the institution of
bankruptcy or insolvency proceedings against the Trust, (iv) file a petition or
consent to a petition seeking reorganization or relief on behalf of the Trust
under any applicable federal or state law relating to bankruptcy, (v) consent to
the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or
any similar official) of the Trust or a substantial portion of the property of
the Trust, (vi) make any assignment for the benefit of the Trust's creditors,
(vii) cause the Trust to admit in writing its inability to pay its debts
generally as they become due or (viii) take any action, or cause the Trust to
take any action, in furtherance of any of the foregoing (any of the above, a
"Bankruptcy Action"). So long as the Indenture and the Insurance Agreement
remain in effect [and no Securities Insurer Default exists,] no
Certificateholder shall have the power to take, and shall not take, any
Bankruptcy Action with respect to the Trust or direct the Owner Trustee to take
any Bankruptcy Action with respect to the Trust.

            Section 4.3 Action By Owners With Respect To Certain Matters. The
Owner Trustee shall not have the power, except upon the direction of the Owners
[and with the consent of the Securities Insurer or upon the direction of the
Securities Insurer,] to (a) remove the Administrator under the Administration
Agreement pursuant to Section 9 thereof, (b) appoint a successor Administrator
pursuant to Section 9 of the Administration Agreement, (c) remove the Master
Servicer under the Sale and Servicing Agreement pursuant to Section 10.01
thereof or (d) sell the Home Loans after the termination of the Indenture. The
Owner Trustee shall take the actions referred to in the preceding sentence only
upon written instructions signed by the Owners [and, so long as no Securities
Insurer Default exists, only after obtaining the consent of the Securities
Insurer.]

            Section 4.4 Action By Owners With Respect To Bankruptcy. The Owner
Trustee shall not have the power to commence a voluntary Bankruptcy Action
relating to the Trust unless the conditions specified in Section 4.1(d) are
satisfied and the Trust is insolvent.

            Section 4.5 Restrictions On Owners' Power. The Owners shall not
direct the Owner Trustee to take or refrain from taking any action if such
action or inaction would be contrary to any obligation of the Trust or the Owner
Trustee under this Agreement or any of the Basic Documents or would be contrary
to Section 2.3 nor shall the Owner Trustee be obligated to follow any such
direction, if given.

                                      -18-
<PAGE>

            Section 4.6 Majority Control. Except as expressly provided herein,
any action that may be taken by the Owners under this Agreement may be taken by
the Majority Residual Interestholders. Except as expressly provided herein, any
written notice of the Owners delivered pursuant to this Agreement shall be
effective if signed by the Majority Residual Interestholders at the time of the
delivery of such notice.

                                    ARTICLE V

                   APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

            Section 5.1 Establishment of Trust Account. The Owner Trustee shall
cause the Master Servicer, for the benefit of the Owners, the Noteholders [and
the Securities Insurer,] to establish and maintain with the Indenture Trustee
for the benefit of the Owner Trustee one or more Eligible Accounts which, so
long as the Indenture Trustee holds such Trust Account on behalf of the Owner
Trustee, shall be entitled "Certificate Distribution Account,
_________________________, as Indenture Trustee on behalf of the Owner Trustee,
the Owners, the Noteholders [and the Securities Insurer,] in trust for the
____________ Home Loan Owner Trust 200__-__". Funds shall be deposited in the
Certificate Distribution Account as required by the Sale and Servicing
Agreement.

            All of the right, title and interest of the Owner Trustee and the
Paying Agent in all funds on deposit from time to time in the Certificate
Distribution Account and in all proceeds thereof shall be held for the benefit
of the Owners and such other persons entitled to distributions therefrom. Except
as otherwise expressly provided herein or in the Sale and Servicing Agreement,
the Certificate Distribution Account shall be under the sole dominion and
control of the Owner Trustee or Paying Agent for the benefit of the Owners[, the
Securities Insurer] and the Noteholders.

            In addition to the foregoing, the Certificate Distribution Account
is a Trust Account under the Sale and Servicing Agreement and constitutes part
of the Trust Estate pledged by the Trust to the Indenture Trustee under the
Indenture. The Certificate Distribution Account shall be subject to and
established and maintained in accordance with the applicable provisions of the
Sale and Servicing Agreement and the Indenture, including, without limitation,
the provisions of Section 5.02(b) of the Sale and Servicing Agreement regarding
distributions from the Certificate Distribution Account.

            The Company agrees to direct and shall have the sole authority to
direct the Owner Trustee or Indenture Trustee or their successor in interest, as
to the Permitted Investments in which the funds on deposit in the Trust Accounts
(as such term is defined in the Sale and Servicing Agreement) may be invested.

            Section 5.2 Application of Trust Funds.

            (a) On each Payment Date, the Owner Trustee or Indenture Trustee, on
behalf of the Owner Trustee, shall direct the Paying Agent to distribute to the
Master Servicer and the Residual Interestholders from amounts on deposit in the
Certificate Distribution Account the

                                      -19-
<PAGE>

distributions as provided in Section 5.02(b) of the Sale and Servicing Agreement
with respect to such Payment Date.

            (b) On each Payment Date, the Owner Trustee shall cause the Paying
Agent to send to each Residual Interestholder the statement provided to the
Owner Trustee by the Master Servicer pursuant to Section 6.01 of the Sale and
Servicing Agreement with respect to such Payment Date.

            (c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to an Owner, such tax shall reduce the amount
otherwise distributable to the Owner in accordance with this Section. The Owner
Trustee is hereby authorized and directed to retain from amounts otherwise
distributable to the Owners 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 an Owner
shall be treated as cash distributed to such Owner at the time it is withheld by
the Trust and remitted to the appropriate taxing authority. In the event of any
claimed overwithholding, Owners shall have no claim for recovery against the
Trust or other Owners. If the amount withheld was not withheld from actual
distributions, the Trust may, at its option, (i) require the Owner to reimburse
the Trust for such withholding (and each Owner agrees to reimburse the Trust
promptly following such request) or (ii) reduce any subsequent distributions by
the amount of such withholding. If the Owner Trustee determines that a
withholding tax is payable with respect to a distribution (such as a
distribution to an Owner (or any other beneficial owner of the Owner Trust) that
is not a U.S. Person and that has not established an applicable exemption from
withholding (such as an effective Form W-8, Form 1001 or Form 4224), the Owner
Trustee shall in its sole discretion withhold such amounts as it determines are
required to be withheld in accordance with this paragraph (c). In the event that
an Owner wishes to apply for a refund of any such withholding tax, the Owner
Trustee shall reasonably cooperate with such owner in making such claim so long
as such Owner agrees to reimburse the Owner Trustee for any out-of-pocket
expenses incurred.

            Section 5.3 Method of Payment. Subject to Section 3.10,
distributions required to be made to Owners on any Payment Date shall be made to
each Owner of record on the preceding Record Date either by wire transfer, in
immediately available funds, to the account of such Holder at a bank or other
entity having appropriate facilities therefor, if such Owner 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
Owner at the address of such holder appearing in the Certificate Register.

            Section 5.4 Segregation of Moneys; No Interest. Subject to Sections
4.1, 5.1 and 5.2, moneys received by the Owner Trustee hereunder and deposited
into the Certificate Distribution Account will be segregated except to the
extent required otherwise by law or the Sale and Servicing Agreement and shall
be invested in Permitted Investments at the direction of the Company. The Owner
Trustee shall not be liable for payment of any interest in respect of such
moneys.

                                      -20-
<PAGE>

            Section 5.5 Accounting And Reports To The Certificateholder, Owners,
The Internal Revenue Service And Others. The Owner Trustee shall deliver to each
Owner [and the Securities Insurer,] as may be required by the Code and
applicable Treasury Regulations, or as may be requested by such Owner [and the
Securities Insurer,] such information, reports or statements as may be necessary
to enable each Owner to prepare its federal and state income tax returns.
Consistent with the Trust's characterization for tax purposes as a security
arrangement for the issuance of non-recourse debt so long as the Company or any
other Person is the sole Owner, no federal income tax return shall be filed on
behalf of the Trust unless either (i) the Owner Trustee [and the Securities
Insurer] shall receive an Opinion of Counsel that, based on a change in
applicable law occurring after the date hereof, or as a result of a transfer by
the Company permitted by Section 3.4, the Code requires such a filing or (ii)
the Internal Revenue Service shall determine that the Trust is required to file
such a return. In the event that there shall be two or more beneficial owners of
the Trust, the Owner Trustee shall inform the Indenture Trustee [and the
Securities Insurer] in writing of such event, (x) the Owner Trustee shall
prepare or shall cause to be prepared federal and, if applicable, state or local
partnership tax returns required to be filed by the Trust and shall remit such
returns to the Company (or if the Company no longer owns any Residual Interest
Certificates, the Owner designated for such purpose by the Company to the Owner
Trustee in writing) at least (5) days before such returns are due to be filed,
and (y) capital accounts shall be maintained for each Owner (or beneficial
owner) in accordance with the Treasury Regulations under Section 704(b) of the
Code reflecting each such Owner's (or beneficial owner's) share of the income,
gains, deductions, and losses of the Trust and/or guaranteed payments made by
the Trust and contributions to, and distributions from, the Trust. The Company
(or such designee Owner, as applicable) shall promptly sign such returns and
deliver such returns after signature to the Owner Trustee and such returns shall
be filed by the Owner Trustee with the appropriate tax authorities. In the event
that a "tax matters partner" (within the meaning of Code Section 6231(a)(7)) is
required to be appointed with respect to the Trust, the Company is hereby
designated as tax matters partner or, if the Company is not an Owner, the Owner
selected by a majority of the Owners (by Percentage Interest) shall be
designated as tax matters partner. In no event shall the Owner Trustee or the
Company (or such designee Owner, as applicable) be liable for any liabilities,
costs or expenses of the Trust or the Noteholders arising out of the application
of any tax law, including federal, state, foreign or local income or excise
taxes or any other tax imposed on or measured by income (or any interest,
penalty or addition with respect thereto or arising from a failure to comply
therewith) except for any such liability, cost or expense attributable to any
act or omission by the Owner Trustee or the Company (or such designee Owner, as
applicable), as the case may be, in breach of its obligations under this
Agreement.

                                   ARTICLE VI

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

            Section 6.1 General Authority. The Owner Trustee is authorized and
directed to execute and deliver or cause to be executed and delivered the Notes,
the Residual Interest Certificates and 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

                                      -21-
<PAGE>

Trust is to be a party and any amendment or other agreement or instrument
described in Article III, in each case, in such form as the Company shall
approve, as evidenced conclusively by the Owner Trustee's execution thereof,
and, on behalf of the Trust, to direct the Indenture Trustee to authenticate and
deliver the Notes in the aggregate principal amount of $_____________. In
addition to the foregoing, the Owner Trustee is authorized, but shall not be
obligated, to take all actions required of the Trust, pursuant to the Basic
Documents.

            Section 6.2 General Duties. It shall be the duty of the Owner
Trustee:

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

            (b) to obtain and preserve the Issuer's qualification to do business
in each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of the Indenture, the Notes, the
Collateral and each other instrument and agreement included in the Trust Estate.

            Section 6.3 Action Upon Instruction.

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

            (b) 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
Agreement or under any Basic Document, the Owner Trustee shall promptly give
notice (in such form as shall be appropriate under the circumstances) to the
Owners [and the Securities Insurer requesting instruction from the Owners] [and
the Securities Insurer] 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 Securities Insurer, or with the prior consent of the
Securities Insurer,] the Owners received, the

                                      -22-
<PAGE>

Owner Trustee shall not be liable on account of such action to any Person. [Upon
the occurrence of a Securities Insurer Default no consent, approval or direction
of the Securities Insurer shall be required.] If the Owner Trustee shall not
have received appropriate instruction within 10 days of such notice (or within
such shorter period of time as reasonably may be specified in such notice or may
be necessary under the circumstances) it may, but shall be under no duty to,
take or refrain from taking such action, not inconsistent with this Agreement or
the Basic Documents, as it shall deem to be in the best interests of the Owners,
and shall have no liability to any Person for such action or inaction.

            (d) In the event that the Owner Trustee is unsure as to the
application of any provision of this Agreement or any 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
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 may give notice (in
such form as shall be appropriate under the circumstances) to [the Securities
Insurer and] the Owners requesting instruction and, to the extent that the Owner
Trustee acts or refrains from acting in good faith [in accordance with any such
instruction received from the Securities Insurer,] [or with the prior consent of
the Securities Insurer,] from the Owners, the Owner Trustee shall not be liable,
on account of such action or inaction, to any Person. If the Owner Trustee shall
not have received appropriate instruction within 10 days of such notice (or
within such shorter period of time as reasonably may be specified in such notice
or may be necessary under the circumstances) it may, but shall be under no duty
to, take or refrain from taking such action, not inconsistent with this
Agreement or the Basic Documents, as it shall deem to be in the best interests
of the Owners, and shall have no liability to any Person for such action or
inaction.

            (e) [Notwithstanding anything in this Agreement to the contrary,
upon the occurrence of a Securities Insurer Default no consent, approval or
direction of the Securities Insurer shall be required for any action otherwise
permitted hereunder.]

            Section 6.4 No Duties Except As Specified In This Agreement, The
Basic 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 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 by the terms of this Agreement, any Basic Document or in any document
or written instruction received by the Owner Trustee pursuant to Section 6.3;
and no implied duties or obligations shall be read into this Agreement or any
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
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 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 Trust Estate.

                                      -23-
<PAGE>

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

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

                                  ARTICLE VII

                          CONCERNING THE OWNER TRUSTEE

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

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

            (b) 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
Administrator or the Owners;

            (c) no provision of this 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 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;

            (d) 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;

            (e) the Owner Trustee shall not be responsible for or in respect of
the validity or sufficiency of this Agreement or for the due execution hereof by
the Depositor or the Company or for the form, character, genuineness,
sufficiency, value or validity of any of the

                                      -24-
<PAGE>

Trust Estate or for or in respect of the validity or sufficiency of the Basic
Documents, other than the certificate of authentication on the Residual Interest
Certificates, and the Owner Trustee shall in no event assume or incur any
liability, duty, or obligation to any Noteholder or to any Owner, other than as
expressly provided for herein and in the Basic Documents;

            (f) the Owner Trustee shall not be liable for the default or
misconduct of the Administrator, the Depositor, the Company, the Indenture
Trustee, the Master Servicer 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 the Trust under this Agreement or the Basic Documents that
are required to be performed by the Administrator under the Administration
Agreement, the Indenture Trustee under the Indenture or the Master Servicer or
Servicer 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 by this Agreement, or to institute, conduct
or defend any litigation under this Agreement or otherwise or in relation to
this Agreement or any Basic Document, at the request, order or direction of any
of the Owners, unless such Owners 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 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 provided, that the Owner Trustee shall be liable for
its negligence or willful misconduct in the event that it assumes the duties and
obligations of the Indenture Trustee under the Sale and Servicing Agreement
pursuant to Section 10.5.

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

            Section 7.3 Representations And Warranties.

            (a) The Owner Trustee hereby represents and warrants to the
Depositor, [the Securities Insurer] and the Company, for the benefit of the
Owners, that:

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

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

                                      -25-
<PAGE>

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

            (b) The Paying Agent hereby represents and warrants to the
Depositor, [the Securities Insurer] and the Company that:

            (i) It is a ________________________ duly organized and validly
      existing in good standing under the laws of the United States. It has all
      requisite power and authority to execute, deliver and perform its
      obligations under this Agreement.

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

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

            Section 7.4 Reliance; Advice of Counsel.

            (a) The Owner Trustee shall incur no liability to anyone in acting
upon any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond, or other document or paper believed by it to
be genuine and believed by it to be signed by the proper party or parties. The
Owner Trustee may accept a certified copy of a resolution of the board of
directors or other governing body of any corporate party as conclusive evidence
that such resolution has been duly adopted by such body and that the same is in
full force and effect. As to any fact or matter the method of the determination
of which is not specifically prescribed herein, the Owner Trustee may for all
purposes hereof rely on a certificate, signed by the president or any vice
president or by the treasurer or other authorized 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 trusts hereunder and in
the performance of its duties and obligations under this Agreement or the Basic
Documents, the Owner Trustee (i) may act directly or through its agents or
attorneys pursuant to agreements entered into with any of them, and the Owner
Trustee shall not be liable for the conduct or misconduct of such agents or
attorneys if such agents or attorneys shall have been selected by the Owner
Trustee with reasonable care, and (ii) may consult with counsel, accountants and
other

                                      -26-
<PAGE>

skilled persons to be selected with reasonable care and employed by it. The
Owner Trustee shall not be liable for anything done, suffered or omitted in good
faith by it in accordance with the opinion or advice of any such counsel,
accountants or other such persons and not contrary to this Agreement or any
Basic Document.

            Section 7.5 Not Acting In Individual Capacity. Except as provided in
this Agreement, in accepting the trusts hereby created
___________________________ 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 Agreement or any
Basic Document shall look only to the Trust Estate for payment or satisfaction
thereof.

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

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

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

                                      -27-
<PAGE>

                                  ARTICLE VIII

                 COMPENSATION OF OWNER TRUSTEE AND PAYING AGENT

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

            Section 8.2 Indemnification. The Company shall be liable as primary
obligor, and the Master Servicer as secondary obligor pursuant to the
Administration Agreement, for, and shall indemnify the Owner Trustee, the Paying
Agent and their successors, assigns, agents and servants (collectively, the
"Indemnified Parties") from and against, any and all liabilities, obligations,
losses, damages, taxes, claims, actions and suits, and any and all reasonable
costs, expenses and disbursements (including reasonable legal fees and expenses)
of any kind and nature whatsoever (collectively, "Expenses") which may at any
time be imposed on, incurred by, or asserted against the Owner Trustee or any
Indemnified Party in any way relating to or arising out of this Agreement, the
Basic Documents, the Trust Estate, the administration of the Trust Estate or the
action or inaction of the Owner Trustee or the Paying Agent hereunder. The
indemnities contained in this Section shall survive the resignation or
termination of the Owner Trustee or the termination of this Agreement. In the
event of any claim, action or proceeding for which indemnity will be sought
pursuant to this Section, the Owner Trustee's or Paying Agent's choice of legal
counsel shall be subject to the approval of the Company, which approval shall
not be unreasonably withheld.

            Section 8.3 Payments To The Owner Trustee And Paying Agent. Any
amounts paid to the Owner Trustee and/or Paying Agent pursuant to this Article
VIII shall be deemed not to be a part of the Trust Estate immediately after such
payment.

                                   ARTICLE IX

                      TERMINATION OF OWNER TRUST AGREEMENT

            Section 9.1 Termination of Owner Trust Agreement.

            (a) This Agreement (other than Article VIII) and the Trust shall
terminate and be of no further force or effect on the earlier of: (i) the
satisfaction and discharge of the Indenture pursuant to Section 4.01 of the
Indenture and the termination of the Sale and Servicing Agreement and the
Insurance Agreement; and (ii) the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy (the late ambassador of
the United States to the Court of St. James's) alive on the date hereof. The
bankruptcy, liquidation, dissolution, death or incapacity of any Owner shall not
(x) operate to terminate this Agreement or the Trust,

                                      -28-
<PAGE>

nor (y) entitle such Owner'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 Trust Estate nor (z) otherwise
affect the rights, obligations and liabilities of the parties hereto.

            (b) The Residual Interest Certificates shall be subject to an early
redemption or termination at the option of the Majority Residual
Interestholders, [the Securities Insurer] or the Master Servicer in the manner
and subject to the provisions of Section 11.02 of the Sale and Servicing
Agreement.

            (c) Except as provided in Sections 9.1(a) and (b) above, none of the
Depositor, the Company[, the Securities Insurer] nor any Owner shall be entitled
to revoke or terminate the Trust.

            (d) Notice of any termination of the Trust, specifying the Payment
Date upon which the Certificateholders shall surrender their Residual Interest
Certificates to the Paying Agent for payment of the final distributions and
cancellation, shall be given by the Owner Trustee to the Certificateholders,
[the Securities Insurer] and the Rating Agencies mailed within _________
Business Days of receipt by the Owner Trustee of notice of such termination
pursuant to Section 9.1(a) or (b) above, which notice given by the Owner Trustee
shall state (i) the Payment Date upon or with respect to which final payment of
the Residual Interest Certificates shall be made upon presentation and surrender
of the Residual Interest Certificates at the office of the Paying Agent therein
designated, (ii) the amount of any such final payment and (iii) that the Record
Date otherwise applicable to such Payment Date is not applicable, payments being
made only upon presentation and surrender of the Residual Interest Certificates
at the office of the Paying Agent therein specified. The Owner Trustee shall
give such notice to the Certificate Registrar (if other than the Owner Trustee)
and the Paying Agent at the time such notice is given to Certificateholders.
Upon presentation and surrender of the Residual Interest Certificates, the
Paying Agent shall cause to be distributed to Certificateholders amounts
distributable on such Payment Date pursuant to Section 5.02 of the Sale and
Servicing Agreement.

            In the event that all of the Certificateholders shall not surrender
their Residual Interest Certificates for cancellation within six months after
the date specified in the above mentioned written notice, the Owner Trustee
shall give a second written notice to the remaining Certificateholders to
surrender their Residual Interest Certificates for cancellation and receive the
final distribution with respect thereto. If within one year after the second
notice all the Residual Interest Certificates shall not have been surrendered
for cancellation, the Owner Trustee may take appropriate steps, or may appoint
an agent to take appropriate steps, to contact the remaining Certificateholders
concerning surrender of their Residual Interest Certificates, and the cost
thereof shall be paid out of the funds and other assets that shall remain
subject to this Agreement. Any funds remaining in the Trust after exhaustion of
such remedies shall be distributed by the Paying Agent to the Residual
Interestholders on a pro rata basis.

            (e) Upon the winding up of the Trust and its termination, the Owner
Trustee shall cause the Certificate of Trust to be canceled by filing a
certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3820 of the Business Trust Statute.

                                      -29-
<PAGE>

                                    ARTICLE X

                            SUCCESSOR OWNER TRUSTEES
                          AND ADDITIONAL OWNER TRUSTEES

            Section 10.1 Eligibility Requirements For Owner Trustee. The Owner
Trustee shall at all times be a corporation satisfying the provisions of Section
3807(a) of the Business Trust Statute; authorized to exercise corporate powers
having a combined capital and surplus of at least $50,000,000 and subject to
supervision or examination by Federal or state authorities; having (or having a
parent which has) a long-term rating of at least "___" by _____________ and
______________ [and being acceptable to the Securities 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, the Owner Trustee shall resign immediately in the manner and with
the effect specified in Section 10.2.

            Section 10.2 Resignation Or Removal Of Owner Trustee. The Owner
Trustee may at any time resign and be discharged from the trusts hereby created
by giving written notice thereof to the Administrator, [the Securities Insurer]
and the Indenture Trustee. Upon receiving such notice of resignation, the
Administrator shall promptly appoint a successor Owner Trustee [(acceptable to
the Securities Insurer)] by written instrument, in duplicate, one copy of which
instrument shall be delivered to the resigning Owner Trustee and one copy to the
successor Owner Trustee. If no successor Owner Trustee shall have been so
appointed and have accepted appointment within 30 days after the giving of such
notice of resignation, the resigning Owner Trustee [or the Securities Insurer]
may petition any court of competent jurisdiction for the appointment of a
successor Owner Trustee.

            If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 10.1 and shall fail to resign after
written request therefor by the Administrator [or the Securities 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 Securities Insurer, or]
the Administrator [with the consent of the Securities Insurer,] may remove the
Owner Trustee. If the [Securities Insurer or] the Administrator shall remove the
Owner Trustee under the authority of the immediately preceding sentence, [the
Securities Insurer, or] the Administrator [with the prior consent of the
Securities Insurer,] shall promptly appoint a successor Owner Trustee by written
instrument in duplicate, one copy of which instrument shall be delivered to the
outgoing Owner Trustee so removed and one copy to the successor Owner Trustee
and payment of all fees owed to the outgoing Owner Trustee.

            Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 10.3, [Securities Insurer provides written approval
and payment of all fees and expenses owed to the outgoing

                                      -30-
<PAGE>

Owner Trustee.] The Administrator shall provide notice of such resignation or
removal of the Owner Trustee to each of the Rating Agencies [and the Securities
Insurer.]

            Section 10.3 Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 10.2 shall execute, acknowledge and deliver to the
Administrator, [the Securities Insurer] and to its predecessor Owner Trustee an
instrument accepting such appointment under this Agreement, and thereupon the
resignation or removal of the predecessor Owner Trustee shall become effective
and such successor Owner Trustee [(if acceptable to the Securities Insurer)],
without any further act, deed or conveyance, shall become fully vested with all
the rights, powers, duties, and obligations of its predecessor under this
Agreement, with like effect as if originally named as Owner Trustee. The
predecessor Owner Trustee shall upon payment of its fees and expenses deliver to
the successor Owner Trustee all documents and statements and monies held by it
under this Agreement; and the Administrator 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 unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 10.1.

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

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

            Section 10.5 Appointment Of Co-Owner Trustee Or Separate Owner
Trustee. Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Estate or any Mortgaged Property may at the time be
located, and for the purpose of performing certain duties and obligations of the
Owner Trustee with respect to the Trust and the Residual Interest Certificates
under the Sale and Servicing Agreement, the Administrator and the Owner Trustee
acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Owner Trustee [and
acceptable to the Securities Insurer] to act as co-owner trustee, jointly with
the Owner Trustee, or separate trustee or separate trustees, of all or any part

                                      -31-
<PAGE>

of the 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
Administrator[, the Securities Insurer] and the Owner Trustee may consider
necessary or desirable. If the Administrator shall not have joined in such
appointment within 25 days after the receipt by it of a request so to do, the
Owner Trustee [(with the consent of the Securities Insurer)] shall have the
power to make such appointment. No co-owner trustee or separate owner trustee
under this Agreement shall be required to meet the terms of eligibility as a
successor trustee pursuant to Section 10.1 and no notice of the appointment of
any co-trustee or separate owner trustee shall be required pursuant to Section
10.3 [except that notice to, and the written consent of, the Securities Insurer
shall be required for the appointment of a co-trustee].

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

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

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

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

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

                                      -32-
<PAGE>

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

            The Indenture Trustee, in its capacity as Paying Agent, shall not
      have any rights, duties or obligations except as expressly provided in
      this Agreement and the Sale and Servicing Agreement.

                                   ARTICLE XI

                                  MISCELLANEOUS

            Section 11.1 Supplements And Amendments. This Agreement may be
amended by the Depositor, the Company and the Owner Trustee, [with the prior
consent of the Securities Insurer and] with prior written notice to the Rating
Agencies, but without the consent of any of the Noteholders or the Owners or the
Indenture Trustee, to cure any ambiguity, to correct or supplement any
provisions in this Agreement or for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions in this Agreement or
of modifying in any manner the rights of the Noteholders or the Owners PROVIDED,
HOWEVER, that such action shall not adversely affect in any material respect the
interests of any Noteholder or Owner, or, without its consent, the Paying Agent.
An amendment described above shall be deemed not to adversely affect in any
material respect the interests of any Noteholder or Owner if (i) an opinion of
counsel is obtained to such effect, and (ii) the party requesting the amendment
satisfies the Rating Agency Condition with respect to such amendment.

            This Agreement may also be amended from time to time by the
Depositor, the Company and the Owner Trustee, with the prior written consent of
the Rating Agencies[, the Securities Insurer] and with the prior written consent
of the Indenture Trustee, the Holders (as defined in the Indenture) of Notes
evidencing more than 50% of the Outstanding Amount of the Notes and the Majority
Residual Interestholders, and if affected thereby, the Paying Agent, for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement or of modifying in any manner the rights of
the Noteholders or the Owners; provided, however, that no such amendment shall
(a) increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on the Home Loans or distributions that shall
be required to be made for the benefit of the Noteholders or the
Certificateholders or (b) reduce the aforesaid percentage of the Outstanding
Amount of the Notes or the Percentage Interests required to consent to any such
amendment, in either case of clause (a) or (b) without the consent of the
holders of all the outstanding Notes, and in the case of clause (b) without the
consent of the holders of all the outstanding Residual Interest Certificates.

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

                                      -33-
<PAGE>

            It shall not be necessary for the consent of Owners, the Noteholders
or the Indenture Trustee pursuant to this Section 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 of Owners provided for in this Agreement or in any other
Basic Document) and of evidencing the authorization of the execution thereof by
Certificateholders shall be subject to such reasonable requirements as the Owner
Trustee may prescribe.

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

            Prior to the execution of any amendment to this Agreement or the
Certificate of Trust, the Owner Trustee shall be entitled to receive and rely
upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement. The Owner Trustee may, but shall not
be obligated to, enter into any such amendment which affects the Owner Trustee's
own rights, duties or immunities under this Agreement or otherwise.

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

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

            Section 11.4 Notices. Unless otherwise expressly specified or
permitted by the terms hereof, all notices shall be in writing, mailed by
certified mail, postage prepaid, return receipt requested, and shall be deemed
given upon actual receipt by the intended recipient, at the following addresses:
(i) if to the Owner Trustee, its Corporate Trust Office; (ii) if to the
Depositor, HSI Asset Securitization Corporation, 452 Fifth Avenue, New York, New
York 10018, Attention: _______; (iii) if to the Company,
_______________________________________ (iv)
________________________________________________ [(v) if to the Securities
Insurer, ______________________________________________] or, as to each such
party, at such other address as shall be designated by such party in a written
notice to each other party.

            Any notice required or permitted to be given to an Owner shall be
given by first-class mail, postage prepaid, at the address of such Owner as
shown in the Certificate Register.

                                      -34-
<PAGE>

Any notice so mailed within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given, whether or not the Owner receives
such notice.

            Section 11.5 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

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

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

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

            Section 11.9 No Recourse. Each Owner by accepting a Residual
Interest Certificate acknowledges that such Residual Interest Certificate
represents a beneficial interest in the Trust only and does not represent an
interest in or an obligation of the Company, the Master Servicer, the Depositor,
the Administrator, the Owner Trustee, the Indenture Trustee, [the Securities
Insurer] or any Affiliate thereof and no recourse may be had against such
parties or their assets, except as may be expressly set forth or contemplated in
this Agreement, the Residual Interest Certificates or the Basic Documents.

            Section 11.10 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 11.11 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

                                      -35-
<PAGE>

            Section 11.12 Residual Interest Transfer Restrictions. The Residual
Interest may not be acquired by or for the account of a Benefit Plan Investor.
By accepting and holding a Residual Interest Certificate, the Owner thereof
shall be deemed to have represented and warranted that it is not a Benefit Plan
Investor.

            Section 11.13 [Third-Party Beneficiary. The parties hereto
acknowledge that the Securities Insurer is an express third party beneficiary
hereof entitled to enforce any rights reserved to it hereunder as if it were
actually a party hereto.]

                            [SIGNATURE PAGE FOLLOWS]

                                      -36-
<PAGE>

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

                                       HSI ASSET SECURITIZATION
                                       CORPORATION,
                                       Depositor

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

                                       ----------------------------------------,
                                                     Transferor

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

                                       ----------------------------------------,
                                         not in its individual capacity but
                                               solely as Owner Trustee

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

                                       ---------------------------------, not in
                                        its individual capacity but solely as
                                                    Paying Agent

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

                                      -37-
<PAGE>

                                    EXHIBIT A

                          TO THE OWNER TRUST AGREEMENT

                      FORM OF RESIDUAL INTEREST CERTIFICATE

THE RESIDUAL INTEREST IN THE TRUST REPRESENTED BY THIS RESIDUAL INTEREST
CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS. THIS RESIDUAL
INTEREST CERTIFICATE MAY BE DIRECTLY OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE
DISPOSED OF BY THE HOLDER HEREOF ONLY TO (I) A "QUALIFIED INSTITUTIONAL BUYER"
AS DEFINED IN RULE 144A UNDER THE ACT, IN A TRANSACTION THAT IS REGISTERED UNDER
THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE ACT PURSUANT TO RULE 144A OR (II) AN
INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1),
(2), (3) OR (7) OF RULE 501 UNDER THE ACT IN A TRANSACTION THAT IS REGISTERED
UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE ACT AND SUCH LAWS. NO PERSON IS OBLIGATED TO
REGISTER THIS RESIDUAL INTEREST UNDER THE ACT OR ANY STATE SECURITIES LAWS.

EXCEPT AS PROVIDED IN Section 3.10(B) OF THE OWNER TRUST AGREEMENT, NO TRANSFER
OF THIS RESIDUAL INTEREST CERTIFICATE OR ANY BENEFICIAL INTEREST HEREIN SHALL BE
MADE UNLESS THE OWNER TRUSTEE HAS RECEIVED A CERTIFICATE FROM THE TRANSFEREE TO
THE EFFECT THAT SUCH TRANSFEREE (I) IS NOT (A) AN "EMPLOYEE BENEFIT PLAN" WITHIN
THE MEANING OF Section 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED, (B) A "PLAN" WITHIN THE MEANING OF Section 4975(E)(1) OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (C) AN ENTITY WHOSE UNDERLYING
ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN'S INVESTMENT IN THE ENTITY (EACH,
A "BENEFIT PLAN INVESTOR"), AND (II) IS NOT DIRECTLY OR INDIRECTLY PURCHASING
SUCH RESIDUAL INTEREST CERTIFICATE ON BEHALF OF, AS INVESTMENT MANAGER OF, AS
NAMED FIDUCIARY OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A BENEFIT PLAN
INVESTOR.

                                      A-1
<PAGE>

                 ________________ HOME LOAN OWNER TRUST 200__-__

                          RESIDUAL INTEREST CERTIFICATE

No.  ____

THIS CERTIFIES THAT _______________________________ (the "Owner") is the
registered owner of a ____% residual interest in ___________ Home Loan Owner
Trust 200__-__ (the "Trust") existing under the laws of the State of Delaware
and created pursuant to the Owner Trust Agreement dated as of __________, 200__
(the "Owner Trust Agreement") between HSI Asset Securitization Corporation, as
Depositor, ____________________________, as the Company, ___________________,
not in its individual capacity but solely in its fiduciary capacity as owner
trustee under the Owner Trust Agreement (the "Owner Trustee") and
______________________________, as Paying Agent (the "Paying Agent"). Initially
capitalized terms used but not defined herein have the meanings assigned to them
in the Owner Trust Agreement. The Owner Trustee, on behalf of the Issuer and not
in its individual capacity, has executed this Residual Interest Certificate by
one of its duly authorized signatories as set forth below. This Residual
Interest Certificate is one of the Residual Interest Certificates referred to in
the Owner Trust Agreement and is issued under and is subject to the terms,
provisions and conditions of the Owner Trust Agreement to which the holder of
this Residual Interest Certificate by virtue of the acceptance hereof agrees and
by which the holder hereof is bound. Reference is hereby made to the Owner Trust
Agreement and the Sale and Master Servicing Agreement for the rights of the
holder of this Residual Interest Certificate, as well as for the terms and
conditions of the Trust created by the Owner Trust Agreement.

The holder, by its acceptance hereof, agrees not to transfer this Residual
Interest Certificate except in accordance with terms and provisions of the Owner
Trust Agreement.

THIS RESIDUAL INTEREST 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.

                            [SIGNATURE PAGE FOLLOWS]

                                      A-2
<PAGE>

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

                                    ______ HOME LOAN OWNER TRUST 200__-__

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

                                    By:
                                        ----------------------------------------
                                        Authorized Signatory

DATED:  ____________, 200__

                          CERTIFICATE OF AUTHENTICATION

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

                                    By:                           , not in its
                                       ---------------------------
                                        individual capacity but solely as
                                        Owner Trustee under the Owner Trust
                                        Agreement, as Authenticating Agent

                                    By:
                                        ----------------------------------------
                                        Authorized Signatory

                                      A-3
<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 type name and address, including postal zip code, of assignee)

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

_______________________________________________________________________ Attorney
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>

                                    EXHIBIT B
                          TO THE OWNER TRUST AGREEMENT

                             CERTIFICATE OF TRUST OF
                  ______________ HOME LOAN OWNER TRUST 200__-__

            THIS Certificate of Trust of ___________ Home Loan Owner Trust
200__-__ (the "Trust"), dated ________, 200__, is being duly executed and filed
by ____________________________________ , a ________________________, as
trustee, and __________________________, as paying agent, to form a business
trust under the Delaware Business Trust Act (12 DEL. CODE, ss.ss.. 3801 et
seq.).

            1. NAME. The name of the business trust formed hereby is
__________________ Home Loan Owner Trust 200__-__.

            2. TRUSTEE. The name and business address of the trustee of the
Trust, in the State of ____________________ is ____________________
_________________________________________ _____________________________________
___________________________________.

                                      * * *

                                       B-1
<PAGE>

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

                                       _________________________________________
                                       not in its individual capacity but
                                       solely as owner trustee under an Owner
                                       Trust Agreement dated as of
                                       ______________, 200__

                                       By: _____________________________________
                                           Name:
                                           Title:

                                      B-2EXHIBIT 4.3

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

                            LOAN OWNER TRUST 200_-_,
                                    as Issuer

                                       and

                                        ,
                              as Indenture Trustee

                          Dated as of __________, 200_

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

                              Dated __________ __,

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

                                TABLE OF CONTENTS

                                                                            Page

                                    ARTICLE I

                                   DEFINITIONS

Section 1.01  Definitions....................................................2
Section 1.02  Incorporation by Reference of Trust Indenture Act..............8
Section 1.03  Rules of Construction..........................................9

                                   ARTICLE II

                                    THE NOTES

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

                                   ARTICLE III

                                    COVENANTS

Section 3.01  Payment of Principal and/or Interest..........................18
Section 3.02  Maintenance of Office or Agency...............................19
Section 3.03  Money for Payments to Be Held in Trust........................19
Section 3.04  Existence.....................................................21
Section 3.05  Protection of Collateral......................................21
Section 3.06  Annual Opinions as to Collateral..............................22
Section 3.07  Performance of Obligations....................................22
Section 3.08  Negative Covenants............................................23
Section 3.09  Annual Statement as to Compliance.............................24
Section 3.10  Covenants of the Issuer.......................................25
Section 3.11  Restricted Payments...........................................25

                                      -i-
<PAGE>

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

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

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

                                    ARTICLE V

                                    REMEDIES

Section 5.01  Events of Default.............................................27
Section 5.02  Acceleration of Maturity; Rescission and Annulment............29
Section 5.03  Collection of Indebtedness and Suits for Enforcement by
               Indenture Trustee............................................30
Section 5.04  Remedies; Priorities..........................................32
Section 5.05  Optional Preservation of the Collateral.......................34
Section 5.06  Limitation of Suits...........................................34
Section 5.07  Unconditional Rights of Noteholders to Receive Principal
               and/or Interest..............................................35
Section 5.08  Restoration of Rights and Remedies............................35
Section 5.09  Rights and Remedies Cumulative................................36
Section 5.10  Delay or Omission Not a Waiver................................36
Section 5.11  Control by Noteholders........................................36
Section 5.12  Waiver of Past Defaults.......................................37
Section 5.13  Undertaking For Costs.........................................37
Section 5.14  Waiver of Stay or Extension Laws..............................37
Section 5.15  Action on Notes...............................................37
Section 5.16  Performance and Enforcement of Certain Obligations............38
Section 5.17  Rights In Respect Of Insolvency Proceedings...................38
Section 5.18  [Effect of Payments by the Securities Insurer; Subrogation....39

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

Section 6.01  Duties of Indenture Trustee...................................40
Section 6.02  Rights of Indenture Trustee...................................41
Section 6.03  Individual Rights of Indenture Trustee........................42
Section 6.04  Indenture Trustee's Disclaimer................................42
Section 6.05  Notices of Default............................................42
Section 6.06  Reports by Indenture Trustee to Holders.......................42
Section 6.07  Compensation and Indemnity....................................42

                                      -ii
<PAGE>

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

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

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

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

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

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

Section 9.01  Supplemental Indentures Without Consent of Noteholders........51
Section 9.02  Supplemental Indentures with Consent of Noteholders...........52
Section 9.03  Execution of Supplemental Indentures..........................53
Section 9.04  Effect of Supplemental Indentures.............................54
Section 9.05  Conformity with Trust Indenture Act...........................54
Section 9.06  Reference in Notes to Supplemental Indentures.................54
Section 9.07  Amendments to Owner Trust Agreement...........................54

                                    ARTICLE X

                               REDEMPTION OF NOTES

Section 10.01 Redemption....................................................54
Section 10.02 Form of Redemption Notice.....................................55

                                     -iii-
<PAGE>

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

                                   ARTICLE XI

                                  MISCELLANEOUS

Section 11.01 Compliance Certificates and Opinions, Etc.....................56
Section 11.02 Form of Documents Delivered to Indenture Trustee..............57
Section 11.03 Acts of Noteholders...........................................58
Section 11.04 Notices, Etc., to Indenture Trustee, Issuer, Rating
               Agencies [and Securities Insurer]............................58
Section 11.05 Notices to Noteholders; Waiver................................60
Section 11.06 Conflict With Trust Indenture Act.............................61
Section 11.07 Effect of Headings and Table of Contents......................61
Section 11.08 Successors and Assigns........................................61
Section 11.09 Separability..................................................61
Section 11.10 Benefits of Indenture.........................................61
Section 11.11 Legal Holidays................................................61
Section 11.12 Governing Law.................................................62
Section 11.13 Counterparts..................................................62
Section 11.14 Recording Of Indenture........................................62
Section 11.15 Owner Trust Obligation........................................62
Section 11.16 No Petition...................................................62
Section 11.17 Inspection....................................................62
Section 11.18 [Grant Of Noteholder Rights To Securities Insurer.............63
Section 11.19 Third Party Beneficiary.......................................63
Section 11.20 Suspension And Termination Of Securities Insurer's Rights.....63

                                    EXHIBITS

EXHIBIT A - Forms of Notes

                                      -iv-
<PAGE>

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

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

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

                                 GRANTING CLAUSE

            Subject to the terms of this Indenture, the Issuer hereby Grants on
the Closing Date, to the Indenture Trustee, as Indenture Trustee for the benefit
of the Holders of the Notes [and the Securities Insurer,] all of the Issuer's
right, title and interest in and to: (i) the Trust Estate (as defined in the
Sale and Servicing Agreement); (ii) the Sale and Servicing Agreement (including
the Issuer's right to cause the Transferor to repurchase the Home Loans from the
Issuer under certain circumstances described therein); (iii) all present and
future claims, demands, causes of action and choses in action in respect of any
or all of the foregoing and all payments on or under and all proceeds of every
kind and nature whatsoever in respect of any or all of the foregoing, including
all proceeds of the conversion thereof, voluntary or involuntary, into cash or
other liquid property, all cash proceeds, accounts, accounts receivable, notes,
drafts, acceptances, chattel paper, checks, deposit accounts, property insurance
proceeds, condemnation awards, rights to payment of any and every kind and other
forms of obligations and receivables, instruments and other property which at
any time constitute all or part of or are included in the proceeds of any of the
foregoing; (iv) all funds on deposit from time to time in the Trust Accounts
(including the Certificate Distribution Account); and (v) all other property of
the Owner Trust from time to time (collectively, the "Collateral").

            The foregoing Grant is made in trust to secure the payment of
principal of and interest on, and any other amounts owing in respect of, the
Notes, and to secure compliance with the provisions of this Indenture, all as
provided in this Indenture.

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

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

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

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

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

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

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

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

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

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

                                      -2-
<PAGE>

            "Business Day" means any day other than (a) a Saturday or Sunday, or
(b) a day on which banking institutions are authorized or obligated by law or
executive order to be closed in a city at any of the following locations: (i)
The City of New York, (ii) where the corporate trust office of the Indenture
Trustee is located, (iii) where the servicing operations of the Servicer are
primarily located or (iv) where the master servicing operations of the Master
Servicer are primarily located.

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

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

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

            "Closing Date" means ____________, 200_.

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

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

            "Commission" means the Securities and Exchange Commission.

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

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

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

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

            "Depositor" shall mean HSI Asset Securitization Corporation, a
Delaware corporation, in its capacity as depositor under the Sale and Servicing
Agreement, or any successor in interest thereto.

            "Depository Institution" means any depository institution or trust
company, including the Indenture Trustee, that (a) is incorporated under the
laws of the United States of

                                      -3-
<PAGE>

America or any State thereof, (b) is subject to supervision and examination by
federal or state banking authorities and (c) has outstanding unsecured
commercial paper or other short-term unsecured debt obligations that are rated
A-1 by ___ (or comparable ratings if ___ is not the Rating Agency).

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

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

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

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

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

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

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

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

            "Independent" means, when used with respect to any specified Person,
that the Person (a) is in fact independent of the Issuer, any other obligor on
the Notes, the Transferor[, the Securities Insurer] and any Affiliate of any of
the foregoing Persons, (b) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the
Transferor[, the Securities Insurer] or any Affiliate of any of the foregoing
Persons and (c) is not connected with the Issuer, any such other obligor, the
Transferor[, the Securities Insurer] or any Affiliate of any of the foregoing
Persons as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

                                      -4-
<PAGE>

            "Independent Certificate" means a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.01 hereof,
made by an Independent appraiser or other expert appointed by an Issuer Order
and approved by the Indenture Trustee in the exercise of reasonable care, and
such opinion or certificate shall state that the signer has read the definition
of "Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

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

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

            "Issuer Order" and "Issuer Request" mean a written order or request
signed in the name of the Issuer by any one of its Authorized Officers and
delivered to the Indenture Trustee.

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

            "Master Servicer" means _____________________, a ________________.

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

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

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

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

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

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

                                      -5-
<PAGE>

an Officer's Certificate of any Authorized Officer of the Issuer or, if
authorized under the Administration Agreement, the Administrator.

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

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

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

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

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

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

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

                                      -6-
<PAGE>

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

            "Owner Trust Agreement" means the Owner Trust Agreement, dated as of
___________, 200_, among HSI Asset Securitization Corporation, as Depositor, the
Company, ______________, as Owner Trustee, and _____________________, as Paying
Agent.

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

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

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

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

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

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

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

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

                                      -7-
<PAGE>

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

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

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

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

            "Responsible Officer" means, with respect to the Indenture Trustee,
any officer within the Corporate Trust Office of the Indenture Trustee,
including any Vice President, Assistant Vice President, Assistant Treasurer,
Assistant Secretary or any other officer of the Indenture Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.

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

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

            "Securities Insurer" means _________________, a ________________
__________________.

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

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

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

            "Transferor" means ____________________, a ____________________.

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

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

            Section 1.02 Incorporation by Reference of Trust Indenture Act.

                                      -8-
<PAGE>

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

            "Indenture Securities" means the Notes.

            "Indenture Security Holder" means a Noteholder.

            "Indenture To Be Qualified" means this Indenture.

            "Indenture Trustee" or "Institutional Trustee" means the Indenture
Trustee.

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

            (b) All other TIA terms used in this Indenture that are defined in
the TIA, defined by TIA reference to another statute or defined by rule of the
Securities and Exchange Commission have the respective meanings assigned to them
by such definitions.

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

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

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

            (iii) "or" is not exclusive;

            (iv) "including" means including without limitation;

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

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

                                      -9-
<PAGE>

                                   ARTICLE II

                                    THE NOTES

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

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

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

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

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

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

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

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

                                      -10-
<PAGE>

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

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

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

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

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

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

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

                                      -11-
<PAGE>

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

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

            Section 2.04 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee [and the Securities
Insurer] such security or indemnity as may reasonably be required by them to
hold the Issuer[, the Securities Insurer] and the Indenture Trustee harmless,
then, in the absence of notice to the Issuer, the Note Registrar or the
Indenture Trustee that such Note has been acquired by a bona fide purchaser, an
Authorized Officer of the Owner Trustee or the Administrator on behalf of the
Issuer shall execute, and upon its request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note; provided, however, that if
any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
become or within seven days shall be due and payable, or shall have been called
for redemption, instead of issuing a replacement Note, the Issuer may pay such
destroyed, lost or stolen Note when so due or payable or upon the Redemption
Date without surrender thereof. If, after the delivery of such replacement Note
or payment of a destroyed, lost or stolen Note pursuant to the proviso to the
preceding sentence, a bona fide purchaser of the original Note in lieu of which
such replacement Note was issued presents for payment such original Note, the
Issuer[, the Securities Insurer] and the Indenture Trustee shall be entitled to
recover such replacement Note (or such payment) from the Person to which it was
delivered or any Person taking such replacement Note from such Person to which
such replacement Note was delivered or any assignee of such Person, except a
bona fide purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer[, the Securities Insurer] or the Indenture Trustee in
connection therewith.

            Upon the issuance of any replacement Note under this Section 2.04,
the Issuer may require the payment by the Holder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee) connected therewith.

            Every replacement Note issued pursuant to this Section 2.04 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

                                      -12-
<PAGE>

            The provisions of this Section 2.04 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

            Section 2.05 Persons Deemed Note Owners. Prior to due presentment
for registration of transfer of any Note, the Issuer[, the Securities Insurer],
the Indenture Trustee and any agent of the Issuer[, the Securities Insurer] or
the Indenture Trustee may treat the Person in the name of which any Note is
registered (as of the day of determination) as the Note Owner for the purpose of
receiving payments of principal of and interest, if any, on such Note and for
all other purposes whatsoever, whether or not such Note be overdue, and none of
the Issuer[, the Securities Insurer], the Indenture Trustee or any agent of the
Issuer[, the Securities Insurer] or the Indenture Trustee shall be affected by
notice to the contrary.

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

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

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

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

                                      -13-
<PAGE>

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

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

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

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

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

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

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

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

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

                                      -14-
<PAGE>

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

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

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

            (vi) on the Closing Date, the Issuer shall cause to be furnished to
      the Indenture Trustee [and the Securities Insurer] an Opinion of Counsel
      either stating that, in the opinion of such counsel, this Indenture has
      been properly recorded and filed so as to make effective the lien intended
      to be created thereby, and reciting the details of such action, or stating
      that, in the opinion of such counsel, no such action is necessary to make
      such lien effective; and

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

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

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

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

                                      -15-
<PAGE>

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

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

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

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

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

            Section 2.09 Release of Collateral.

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

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

                                      -16-
<PAGE>

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

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

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

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

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

            (iv) the rights of Note Owners shall be exercised only through the
      Clearing Agency and shall be limited to those established by law and
      agreements between such Note Owners and the Clearing Agency and/or the
      Clearing Agency Participants pursuant to the Note Depository Agreement.
      Unless and until Definitive Notes are issued pursuant to Section 2.12
      hereof, the initial Clearing Agency will make book-entry transfers among
      the Clearing Agency Participants and receive and transmit payments of
      principal of and interest on the Notes to such Clearing Agency
      Participants; and

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

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

                                      -17-
<PAGE>

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

            Section 2.12 Definitive Notes.

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

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

                                   ARTICLE III

                                    COVENANTS

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

                                      -18-
<PAGE>

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

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

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

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

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

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

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

                                      -19-
<PAGE>

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

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

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

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

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

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

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

                                      -20-
<PAGE>

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

            Section 3.04 Existence.

            (a) Subject to subparagraph (b) of this Section 3.04, the Issuer
will keep in full effect its existence, rights and franchises as a business
trust under the laws of the State of Delaware [(unless, subject to the prior
written consent of the Securities Insurer, it becomes, or any successor Issuer
hereunder is or becomes, organized under the laws of any other State or of the
United States of America, in which case the Issuer will keep in full effect its
existence, rights and franchises under the laws of such other jurisdiction)] and
will obtain and preserve its qualification to do business in each jurisdiction
in which such qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes and the Collateral.

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

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

            Section 3.05 Protection of Collateral. The Issuer will from time to
time [and upon the direction of the Securities Insurer] execute and deliver all
such reasonable supplements and amendments hereto and all such financing
statements, continuation statements, instruments of further assurance and other
instruments, and will take such other action necessary or advisable to:

            (i) provide further assurance with respect to the Grant of all or
      any portion of the Collateral;

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

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

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

                                      -21-
<PAGE>

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

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

            Section 3.06 Annual Opinions as to Collateral. On or before July
15th in each calendar year, beginning in 200_, the Issuer shall furnish to the
Indenture Trustee [and the Securities Insurer] an Opinion of Counsel either
stating that, in the opinion of such counsel, such action has been taken with
respect to the recording, filing, re-recording and refiling of this Indenture,
any indentures supplemental hereto and any other requisite documents and with
respect to the execution and filing of any financing statements and continuation
statements as is necessary to maintain the lien and security interest created by
this Indenture and reciting the details of such action or stating that in the
opinion of such counsel no such action is necessary to maintain such lien and
security interest. Such Opinion of Counsel shall also describe the recording,
filing, re-recording and refiling of this Indenture, any indentures supplemental
hereto and any other requisite documents and the execution and filing of any
financing statements and continuation statements that will, in the opinion of
such counsel, be required to maintain the lien and security interest of this
Indenture until July 15th of the following calendar year.

            Section 3.07 Performance of Obligations.

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

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

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

                                      -22-
<PAGE>

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

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

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

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

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

            (ii) claim any credit on, or make any deduction from the principal
      or interest payable in respect of, the Notes (other than amounts properly
      withheld from such

                                      -23-
<PAGE>

      payments under the Code) or assert any claim against any present or former
      Noteholder by reason of the payment of the taxes levied or assessed upon
      any part of the Collateral;

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

            (iv) issue debt obligations under any other indenture;

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

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

            (vii) (A) permit the validity or effectiveness of this Indenture to
      be impaired, or permit the lien of this Indenture to be amended,
      hypothecated, subordinated, terminated or discharged, or permit any Person
      to be released from any covenants or obligations with respect to the Notes
      under this Indenture except as may expressly be permitted hereby, (B)
      permit any lien, charge, excise, claim, security interest, mortgage or
      other encumbrance (other than the lien of this Indenture) to be created on
      or extend to or otherwise arise upon or burden the Collateral or any part
      thereof or any interest therein or the proceeds thereof (other than tax
      liens, mechanics' liens and other liens that arise by operation of law, in
      each case on any of the Mortgaged Properties and arising solely as a
      result of an action or omission of the related Obligors or (C) permit the
      lien of this Indenture not to constitute a valid first priority (other
      than with respect to such tax, mechanics' or other lien) security interest
      in the Collateral;

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

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

            Section 3.09 Annual Statement as to Compliance. The Issuer will
deliver to the Indenture Trustee [and the Securities Insurer], within 120 days
after the end of each fiscal year of the Issuer (commencing in the fiscal year
200_), an Officer's Certificate stating, as to the Authorized Officer signing
such Officer's Certificate, that:

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

                                      -24-
<PAGE>

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

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

            Section 3.11 Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any payment (by reduction of capital or
otherwise), whether in cash, property, securities or a combination thereof, to
the Owner Trustee or any owner of a beneficial interest in the Issuer or
otherwise with respect to any ownership or equity interest or security in or of
the Issuer or to the Servicer or Master Servicer, (ii) redeem, purchase, retire
or otherwise acquire for value any such ownership or equity interest or security
or (iii) set aside or otherwise segregate any amounts for any such purpose;
provided, however, that the Issuer may make, or cause to be made, payments to
the Servicer, the Master Servicer, the Indenture Trustee, the Owner Trustee,
[the Securities Insurer,] the Noteholders and the holders of the Residual
Interest Certificate as contemplated by Section 8.02(C) hereof, and to the
extent funds are available for such purpose under, the Sale and Servicing
Agreement or the Owner Trust Agreement. The Issuer will not, directly or
indirectly, make or cause to be made payments to or distributions from the
Collection Account except in accordance with this Indenture and the Basic
Documents.

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

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

            Section 3.14 Further Instruments and Acts. Upon request of the
Indenture Trustee [or the Securities Insurer], the Issuer will execute and
deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purpose of this Indenture.

                                      -25-
<PAGE>

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

            Section 4.01 Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes (except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon [including any such right of the
Securities Insurer pursuant to Section 2.06(B)] or the proviso to the definition
of "Outstanding", (iv) Sections 3.03, 3.04, 3.05, 3.08 and 3.10 hereof, (v) the
rights, obligations and immunities of the Indenture Trustee hereunder (including
the rights of the Indenture Trustee under Section 6.07 hereof and the
obligations of the Indenture Trustee under Section 4.02 hereof) and (vi) the
rights of Noteholders as beneficiaries hereof with respect to the property so
deposited with the Indenture Trustee payable to all or any of them), and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes, when all of the following have occurred:

                  (A) either (1) all Notes theretofore authenticated and
            delivered (other than (i) Notes that have been destroyed, lost or
            stolen and that have been replaced or paid as provided in Section
            2.04 hereof and (ii) Notes for the payment of which money has
            theretofore been deposited in trust or segregated and held in trust
            by the Issuer and thereafter repaid to the Issuer or discharged from
            such trust, as provided in Section 3.03 hereof) shall have been
            delivered to the Indenture Trustee for cancellation; or (2) all
            Notes not theretofore delivered to the Indenture Trustee for
            cancellation

                              a. shall have become due and payable, or

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

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

                              d. and the Issuer, in the case of clause a., b. or
                        c. above, has irrevocably deposited or caused
                        irrevocably to be deposited with the Indenture Trustee
                        cash or direct obligations of or obligations guaranteed
                        by the United States of America (which will mature prior
                        to the date such amounts are payable), in trust for such
                        purpose, in an amount sufficient to pay and discharge
                        the entire indebtedness on such Notes not theretofore
                        delivered to the Indenture Trustee for cancellation when
                        due to the Maturity Date or the Redemption Date (if
                        Notes shall have been called for

                                      -26-
<PAGE>

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

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

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

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

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

                                   ARTICLE V

                                    REMEDIES

            Section 5.01. Events of Default.

            (a) "Event Of Default," wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):

                                      -27-
<PAGE>

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

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

            (iii) default in the observance or performance of any covenant or
      agreement of the Issuer made in this Indenture (other than a covenant or
      agreement, a default in the observance or performance of which is
      elsewhere in this Section specifically dealt with), or any representation
      or warranty of the Issuer made in this Indenture[, the Insurance
      Agreement], the Sale and Servicing Agreement or in any certificate or
      other writing delivered pursuant hereto or in connection herewith proving
      to have been incorrect in any material respect as of the time when the
      same shall have been made, and such default shall continue or not be
      cured, or the circumstance or condition in respect of which such
      misrepresentation or warranty was incorrect shall not have been eliminated
      or otherwise cured, for a period of 30 days after there shall have been
      given, by registered or certified mail, to the Issuer by the Indenture
      Trustee [at the direction of the Securities Insurer], or to the Issuer and
      the Indenture Trustee by the Holders of at least [25]% of the Outstanding
      Notes [and with the prior written consent of the Securities Insurer (so
      long as no Securities Insurer Default has occurred and is continuing)], a
      written notice specifying such default or incorrect representation or
      warranty and requiring it to be remedied and stating that such notice is a
      notice of Default hereunder; or

            (iv) [an Event of Default under Section 5.01 of the Insurance
      Agreement or in any certificate or other writing delivered pursuant to the
      Insurance Agreement or in connection therewith proving to have been
      incorrect in any material respect as of the time when the same shall have
      been made, and such default shall continue or not be cured, or the
      circumstance or condition in respect of which such misrepresentation or
      warranty was incorrect shall not have been eliminated or otherwise cured,
      for a period of 30 days after there shall have been given, by registered
      or certified mail, to the Issuer by the Indenture Trustee at the direction
      of the Securities Insurer, or to the Issuer and the Indenture Trustee by
      the Holders of at least 25% of the Outstanding Notes and with the prior
      written consent of the Securities Insurer (so long as no Securities
      Insurer Default has occurred and is continuing), a written notice
      specifying such default or incorrect representation or warranty and
      requiring it to be remedied and stating that such notice is a notice of
      Default hereunder; or]

            (v) the filing of a decree or order for relief by a court having
      jurisdiction in the premises in respect of the Issuer or any substantial
      part of the Collateral in an involuntary case under any applicable federal
      or state bankruptcy, insolvency or other similar law now or hereafter in
      effect, or appointing a receiver, liquidator, assignee, custodian,
      trustee, sequestrator or similar official of the Issuer or for any
      substantial part of the Collateral, or ordering the winding-up or
      liquidation of the Issuer's affairs, and

                                      -28-
<PAGE>

      such decree or order shall remain unstayed and in effect for a period of
      60 consecutive days; or

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

The Issuer shall promptly deliver to the Indenture Trustee [and the Securities
Insurer] written notice in the form of an Officer's Certificate of any event
which with the giving of notice and the lapse of time would become an Event of
Default under clauses (iii) and (iv) above, the status of such event and what
action the Issuer is taking or proposes to take with respect thereto.

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

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

            and

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

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

                                      -29-
<PAGE>

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

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

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

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

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

            (a) The Issuer covenants that if (i) default is made in the payment
of any interest on any Note when the same becomes due and payable, and such
default continues for a period of five days, or (ii) default is made in the
payment of the principal of or any installment of the principal of any Note when
the same becomes due and payable, the Issuer will, upon demand of the Indenture
Trustee [made at the direction of the Securities Insurer,] pay to the Indenture
Trustee, for the benefit of the Holders of the Notes [and the Securities
Insurer], the whole amount then due and payable on such Notes for principal
and/or interest, with interest upon the overdue principal and, to the extent
payment at such rate of interest shall be legally enforceable, upon overdue
installments of interest at the rate borne by the Notes and in addition thereto
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Indenture Trustee [and the Securities Insurer] and their
respective agents and counsel.

            (b) In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee may[, with the prior written consent of the
Securities Insurer (so long as no Securities Insurer Default has occurred and is
continuing)] and shall at the direction of [the Securities Insurer (so long as
no Securities Insurer Default has occurred and is continuing) or] the Majority
Noteholders [(if a Securities Insurer Default has occurred and is continuing)]
institute a Proceeding for the collection of the sums so due and unpaid, and may
prosecute such Proceeding to judgment or final decree, and may enforce the same
against the Issuer or other obligor upon such Notes and collect in the manner
provided by law out of the property of the Issuer or other obligor upon such
Notes, wherever situated, the moneys adjudged or decreed to be payable. [At any
time, so long as no Securities Insurer Default has occurred and is continuing,
if the Securities Insurer is the holder of any Note pursuant to Section 2.06(B)
hereof or all amounts due to all other Holders of the Notes pursuant to the
Notes and this Indenture have been paid in full, then the Securities Insurer
may, in its own name, institute any Proceedings or take any action permitted
under this Section 5.03 to collect amounts due hereunder from the Issuer or any
other obligor of the Notes.]

                                      -30-
<PAGE>

            (c) If an Event of Default occurs and is continuing, the Indenture
Trustee [shall, at the direction of the Securities Insurer, and if a Securities
Insurer Default has occurred and is continuing, the Indenture Trustee] may, in
its discretion, and shall at the direction of the majority of the Holders of the
Outstanding Notes, as more particularly provided in Section 5.04 hereof, proceed
to protect and enforce its rights and the rights of [the Securities Insurer and]
the Noteholders by such appropriate Proceedings as the Indenture Trustee shall
deem most effective to protect and enforce any such rights, whether for the
specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy
or legal or equitable right vested in the Indenture Trustee by this Indenture or
by law.

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

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

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

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

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

                                      -31-
<PAGE>

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

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

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

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

            Section 5.04 Remedies; Priorities.

            (a) If an Event of Default shall have occurred and be continuing,
the Indenture Trustee [shall, at the direction of the Securities Insurer, and if
a Securities Insurer Default has occurred and is continuing, the Indenture
Trustee] may, and at the direction of a majority of the Holders of the
Outstanding Notes shall, do one or more of the following (subject to Section
5.05 hereof):

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

                                      -32-
<PAGE>

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

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

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

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

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

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

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

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

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

                                      -33-
<PAGE>

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

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

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

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

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

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

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

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

            Section 5.06 Limitation of Suits. [No Holder of any Note shall have
any right to institute any Proceeding, judicial or otherwise, with respect to
this Indenture or for the

                                      -34-
<PAGE>

appointment of a receiver or trustee, or for any other remedy hereunder for as
long as a Securities Insurer Default has not occurred or is not continuing and,
if a Securities Insurer Default has occurred and is continuing, unless:

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

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

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

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

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

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

            In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each group representing less than a Majority Noteholders, the Indenture Trustee
in its sole discretion may determine what action, if any, shall be taken,
notwithstanding any other provisions of this Indenture.

            Section 5.07 Unconditional Rights of Noteholders to Receive
Principal and/or Interest. Notwithstanding any other provisions in this
Indenture, the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest, if any, on
such Note on or after the applicable Maturity Date thereof expressed in such
Note or in this Indenture (or, in the case of redemption, on or after the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such right shall not be impaired without the consent of such Holder.

            Section 5.08 Restoration of Rights and Remedies. If the Indenture
Trustee[, the Securities Insurer] or any Noteholder has instituted any
Proceeding to enforce any right or remedy under this Indenture and such
Proceeding has been discontinued or abandoned for any reason or has been
determined adversely to the Indenture Trustee[, the Securities Insurer] or to
such Noteholder, then and in every such case the Issuer, the Indenture Trustee[,
the Securities Insurer] and the Noteholders shall, subject to any determination
in such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and

                                      -35-
<PAGE>

remedies of the Indenture Trustee[, the Securities Insurer] and the Noteholders
shall continue as though no such Proceeding had been instituted.

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

            Section 5.10 Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee[, the Securities Insurer] or any Holder of any Note to
exercise any right or remedy accruing upon any Default or Event of Default shall
impair any such right or remedy or constitute a waiver of any such Default or
Event of Default or an acquiescence therein. Every right and remedy given by
this Article V or by law to the Indenture Trustee[, the Securities Insurer] or
to the Noteholders may be exercised from time to time, and as often as may be
deemed expedient, by the Indenture Trustee[, the Securities Insurer] or by the
Noteholders, as the case may be[, subject, in each case, however, to the right
of the Securities Insurer to control any such right and remedy, except as
provided in Section 11.20].

            Section 5.11 Control by Noteholders. [Subject to the rights of the
Securities Insurer under Section 11.18 hereof,] the Majority Noteholders shall
have the right to direct the time, method and place of conducting any Proceeding
for any remedy available to the Indenture Trustee with respect to the Notes or
exercising any trust or power conferred on the Indenture Trustee; provided,
however, that:

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

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

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

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

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

                                      -36-
<PAGE>

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

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

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

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

            Section 5.15 Action on Notes. The Indenture Trustee's right to seek
and recover judgment on the Notes or under this Indenture shall not be affected
by the seeking, obtaining or application of any other relief under or with
respect to this Indenture. Neither the lien of this Indenture nor any rights or
remedies of the Indenture Trustee[, the Securities Insurer] or the Noteholders
shall be impaired by the recovery of any judgment by the Indenture Trustee

                                      -37-
<PAGE>

against the Issuer or by the levy of any execution under such judgment upon any
portion of the Collateral or upon any of the assets of the Issuer. Any money or
property collected by the Indenture Trustee shall be applied in accordance with
Section 5.04(B) hereof.

            Section 5.16 Performance and Enforcement of Certain Obligations.

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

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

            Section 5.17 Rights In Respect Of Insolvency Proceedings.

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

                                      -38-
<PAGE>

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

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

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

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

                                      -39-
<PAGE>

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

            Section 6.01 Duties of Indenture Trustee.

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

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

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

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

            (c) The Indenture Trustee may not be relieved from liability for its
      own negligent action, its own negligent failure to act or its own willful
      misconduct, except that:

            (i) this paragraph does not limit the effect of paragraph (b) of
      this Section 6.01;

            (ii) the Indenture Trustee shall not be liable for any error of
      judgment made in good faith by a Responsible Officer unless it is proved
      that the Indenture Trustee was negligent in ascertaining the pertinent
      facts; and

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

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

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

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

                                      -40-
<PAGE>

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

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

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

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

            Section 6.02 Rights of Indenture Trustee.

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

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

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

            (d) The Indenture Trustee shall not be liable for any action it
takes or omits to take in good faith which it believes to be authorized or
within its rights or powers; provided,

                                      -41-
<PAGE>

however, that such action or omission by the Indenture Trustee does not
constitute willful misconduct, negligence or bad faith.

            (e) The Indenture Trustee may, at the expense of the Transferor as
provided under Section 6.07, consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes
shall be full and complete authorization and protection from liability in
respect to any action taken, omitted or suffered by it hereunder in good faith
and in accordance with the advice or opinion of such counsel.

            Section 6.03 Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee. Any Paying Agent, Note
Registrar, co-registrar or co-paying agent may do the same with like rights.
However, the Indenture Trustee must comply with Sections 6.11 and 6.12 hereof.

            Section 6.04 Indenture Trustee's Disclaimer. The Indenture Trustee
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, shall not be accountable for the
Issuer's use of the proceeds from the Notes, or responsible for any statement of
the Issuer in the Indenture or in any document issued in connection with the
sale of the Notes or in the Notes other than the Indenture Trustee's certificate
of authentication.

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

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

            Section 6.07 Compensation and Indemnity. As compensation for its
services hereunder, the Indenture Trustee shall be entitled to receive, on each
Payment Date, the Indenture Trustee's Fee pursuant to Section 8.02(c) hereof
(which compensation shall not be limited by any law on compensation of a trustee
of an express trust) and shall be entitled to reimbursement by the Master
Servicer for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, in addition to the compensation for its services.
Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Indenture Trustee's agents, counsel,
accountants and experts and Opinions of Counsel hereunder. The Issuer agrees to
cause the Master Servicer, at its expense, to indemnify the Indenture Trustee
against any and all loss, liability or expense (including attorneys' fees)
incurred by it in connection with the administration of this trust and the
performance of its duties

                                      -42-
<PAGE>

hereunder. The Indenture Trustee shall notify the Issuer, the Servicer and the
Master Servicer promptly of any claim for which it may seek indemnity. Failure
by the Indenture Trustee so to notify the Issuer, the Servicer and the Master
Servicer shall not relieve the Issuer of its obligations hereunder. The Issuer
shall or shall cause the Master Servicer to defend any such claim, and the
Indenture Trustee may have separate counsel reasonably acceptable to the Master
Servicer and the Issuer shall or shall cause the Master Servicer to pay the
reasonable fees and expenses of such counsel. Neither the Issuer, the Servicer
nor the Master Servicer need reimburse any expense or indemnify against any
loss, liability or expense incurred by the Indenture Trustee through the
Indenture Trustee's own willful misconduct, negligence or bad faith.

            The Issuer's payment obligations to the Indenture Trustee pursuant
to this Section 6.07 shall survive the discharge of this Indenture. When the
Indenture Trustee incurs expenses after the occurrence of a Default specified in
Section 5.01(a)(v) hereof with respect to the Issuer, the expenses are intended
to constitute expenses of administration under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or similar
law.

            Section 6.08 Replacement of Indenture Trustee. No resignation or
removal of the Indenture Trustee and no appointment of a successor Indenture
Trustee shall become effective until the acceptance of appointment by the
successor Indenture Trustee pursuant to this Section 6.08. The Indenture Trustee
may resign at any time by so notifying the Issuer [and the Securities Insurer].
[The Securities Insurer or the Holders of a majority of the Outstanding Notes
with the consent of the Securities Insurer (so long as no Securities Insurer
Default has occurred and is continuing) may remove the Indenture Trustee by so
notifying the Indenture Trustee and may appoint a successor Indenture Trustee
subject to Section 6.11.] The Issuer shall remove the Indenture Trustee [upon
the prior written consent of the Securities Insurer] if:

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

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

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

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

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

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

                                      -43-
<PAGE>

succession to Noteholders. The retiring Indenture Trustee shall promptly
transfer all property held by it as Indenture Trustee to the successor Indenture
Trustee.

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

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

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

            Section 6.09 Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation
or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Indenture Trustee; provided,
however, that such corporation or banking association shall otherwise be
qualified and eligible under Section 6.11 hereof. The Indenture Trustee shall
provide [the Securities Insurer and] the Rating Agencies prior written notice of
any such transaction.

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

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

            (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Collateral may at the time be located, the Indenture
Trustee shall have the power, [with the prior written consent of the Securities
Insurer (so long as no Securities Insurer Default has occurred and is
continuing),] and may execute and deliver all instruments to appoint one or more
Persons to act as a co-trustee or co-trustees, or separate trustee or separate
trustees, of all or any part of the Trust, and to vest in such Person or
Persons, in such capacity and for the benefit of the Noteholders, such title to
the Collateral, or any part hereof, and, subject to the other provisions of this
Section, such powers, duties, obligations, rights and trusts as the Indenture
Trustee [or the Securities Insurer] may consider necessary or desirable. No
co-trustee or separate trustee

                                      -44-
<PAGE>

hereunder shall be required to meet the terms of eligibility as a successor
trustee under Section 6.11 hereof and no notice to Noteholders of the
appointment of any co-trustee or separate trustee shall be required under
Section 6.08 hereof[; provided that the Indenture Trustee shall deliver notice
of any such co-trustee or separate trustee to the Securities Insurer].

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

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

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

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

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

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

            Section 6.11 Eligibility; Disqualification. The Indenture Trustee
shall at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee shall [be acceptable to the Securities Insurer and shall] have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition. The Indenture Trustee shall

                                      -45-
<PAGE>

comply with TIA Section 310(b), including the optional provision permitted by
the second sentence of TIA Section 310(b)(9); provided, however, that there
shall be excluded from the operation of TIA Section 310(b)(1) any indenture or
indentures under which other securities of the Issuer are outstanding if the
requirements for such exclusion set forth in TIA Section 310(b)(1) are met.

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

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

                                  ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

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

            Section 7.02 Preservation of Information; Communications to
Noteholders.

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

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

                                      -46-
<PAGE>

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

            Section 7.03 Reports by Issuer.

            (a) The Issuer shall:

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

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

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

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

            Section 7.04 Reports by Indenture Trustee. If required by TIA
Section 313(a), within 60 days after each __________, beginning with ________,
200_, the Indenture Trustee shall mail [to the Securities Insurer and] to each
Noteholder as required by TIA Section 313(c) a brief report dated as of such
date that complies with TIA Section 313(a). The Indenture Trustee also shall
comply with TIA Section 313(b).

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

                                      -47-
<PAGE>

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

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

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

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

            Section 8.02 Trust Accounts; Payments.

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

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

                                      -48-
<PAGE>

Payment Account and deposits into the Certificate Distribution Account for
distribution on such Payment Date as required pursuant to Section 5.01(c) of the
Sale and Servicing Agreement.

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

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

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

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

            Section 8.03 General Provisions Regarding Accounts.

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

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

            (c) If (i) the Issuer shall have failed to give investment
directions for any funds on deposit in the Trust Accounts to the Indenture
Trustee by 11:00 a.m. Eastern Time (or

                                      -49-
<PAGE>

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

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

            Section 8.05 Release of Collateral.

            (a) Subject to Section 11.01 and the terms of the Basic Documents,
the Indenture Trustee may, and when required by the provisions of this Indenture
shall, execute instruments to release property from the lien of this Indenture,
or convey the Indenture Trustee's interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture.
No party relying upon an instrument executed by the Indenture Trustee as
provided in this Article VIII shall be bound to ascertain the Indenture
Trustee's authority, inquire into the satisfaction of any conditions precedent
or see to the application of any moneys. [The Indenture Trustee shall surrender
the Guaranty Policy to the Securities Insurer upon the conditions in Section
4.01 hereof.]

            (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due to the Certificateholders pursuant to Section
5.02(b) of the Sale and Servicing Agreement, to the Servicer pursuant to Section
8.02(c)(i)(A) hereof, to the Master Servicer pursuant to Section 8.02(c)(i)(B)
hereof, [to the Securities Insurer pursuant to Section 8.02(c)(i)(C) hereof,] to
the Indenture Trustee pursuant to Section 8.02(c)(i)(D) hereof, to the Owner
Trustee pursuant to Section 8.02(c)(i)(E) hereof and to the Custodian pursuant
to Section 8.02(c)(i)(F) hereof have been paid, release any remaining portion of
the Collateral that secured the Notes from the lien of this Indenture and
release to the Issuer or any other Person entitled thereto any funds then on
deposit in the Trust Accounts. The Indenture Trustee shall release property from
the lien of this Indenture pursuant to this Subsection (B) only upon receipt by
it [and the Securities Insurer] of an Issuer Request accompanied by an Officer's
Certificate, an Opinion of Counsel and (if required by the TIA) Independent
Certificates in accordance with TIA Sections 314(c) and 314(d)(1) meeting the
applicable requirements of Section 11.01 hereof.

            Section 8.06 Opinion of Counsel. The Indenture Trustee [and the
Securities Insurer] shall receive at least seven days' prior notice when
requested by the Issuer to take any action pursuant to Section 8.05(a) hereof,
accompanied by copies of any instruments involved, and the Indenture Trustee
[and the Securities Insurer] may also require, as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee
[and the Securities Insurer], stating the legal effect of any such action,
outlining the steps required to complete the same, and concluding that all
conditions precedent to the taking of such action have

                                      -50-
<PAGE>

been complied with and such action will not materially and adversely impair the
security for the Notes or the rights of the Noteholders in contravention of the
provisions of this Indenture; provided, however, that such Opinion of Counsel
shall not be required to express an opinion as to the fair value of the
Collateral. Counsel rendering any such opinion may rely, without independent
investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such
action.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

            Section 9.01 Supplemental Indentures Without Consent of Noteholders.

            (a) Without the consent of the Holders of any Notes but with prior
notice to the Rating Agencies [and with the prior written consent of the
Securities Insurer (so long as no Securities Insurer Default has occurred and is
continuing),] the Issuer and the Indenture Trustee, when authorized by an Issuer
Order, at any time and from time to time, may enter into one or more indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

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

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

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

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

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

            (vi) to evidence and provide for the acceptance of the appointment
      hereunder by a successor trustee with respect to the Notes and to add to
      or change any of the provisions of this Indenture as shall be necessary to
      facilitate the administration of the

                                      -51-
<PAGE>

      trusts hereunder by more than one trustee, pursuant to the requirements of
      Article VI hereof; or

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

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

            (b) The Issuer and the Indenture Trustee, [with the prior written
consent of the Securities Insurer (so long as no Securities Insurer Default has
occurred and is continuing)], when authorized by an Issuer Order, may, also
without the consent of any of the Holders of the Notes but with prior consent of
the Rating Agencies, enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Holders of the Notes under this Indenture; provided,
however, that such action shall not, as evidenced by (i) an Opinion of Counsel
or (ii) satisfaction of the Rating Agency Condition, adversely affect in any
material respect the interests of any Noteholder [including the interests of the
Securities Insurer] to the extent it is, or will become, upon payment in full of
all amounts due to any Noteholder hereunder or pursuant to a Note, a Noteholder
pursuant to Section 2.06(b) hereof.

            Section 9.02 Supplemental Indentures with Consent of Noteholders.
The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also
may, with prior consent of the Rating Agencies,[ the Securities Insurer (so long
as no Securities Insurer Default has occurred and is continuing)] and with the
consent of the Holders of not less than a majority of the Outstanding Notes, by
Act of such Holders delivered to the Issuer and the Indenture Trustee, enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Note affected thereby[ and the Securities Insurer]:

            (a) change the date of payment of any installment of principal of or
interest on any Note, or reduce the Note Principal Balance thereof, the interest
rate thereon or the Termination Price with respect thereto, change the
provisions of this Indenture relating to the application of collections on, or
the proceeds of the sale of, the Collateral to payment of principal of or
interest on the Notes, or change any place of payment where, or the coin or
currency in which, any Note or the interest thereon is payable, or impair the
right to institute suit for the enforcement of the provisions of this Indenture
requiring the application of funds available therefor, as provided in Article V
hereof, to the payment of any such amount due on the Notes on or after the
respective due dates thereof (or, in the case of redemption, on or after the
Redemption Date);

                                      -52-
<PAGE>

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

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

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

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

            (f) modify any of the provisions of this Indenture in such manner as
to affect the calculation of the amount of any payment of interest or principal
due on any Note on any Payment Date (including the calculation of any of the
individual components of such calculation) or to affect the rights of the
Holders of Notes to the benefit of any provisions for the mandatory redemption
of the Notes contained herein; or

            (g) permit the creation of any lien ranking prior to or on a parity
with the lien of this Indenture with respect to any part of the Collateral or,
except as otherwise permitted or contemplated herein, terminate the lien of this
Indenture on any property at any time subject hereto or deprive the Holder of
any Note of the security provided by the lien of this Indenture.

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

            In connection with requesting the consent of the Noteholders
pursuant to this Section 9.02, the Indenture Trustee shall mail to the Holders
of the Notes to which such amendment or supplemental indenture relates a notice
setting forth in general terms the substance of such supplemental indenture. It
shall not be necessary for any Act of Noteholders under this Section 9.02 to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.

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

                                      -53-
<PAGE>

to, enter into any such supplemental indenture that affects the Indenture
Trustee's own rights, duties, liabilities or immunities under this Indenture or
otherwise.

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

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

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

            Section 9.07 Amendments to Owner Trust Agreement. Subject to Section
11.1 of the Owner Trust Agreement, the Indenture Trustee shall, upon Issuer
Order, consent to any proposed amendment to the Owner Trust Agreement or an
amendment to or waiver of any provision of any other document relating to the
Owner Trust Agreement, such consent to be given without the necessity of
obtaining the consent of the Holders of any Notes upon satisfaction of the
requirements under Section 11.1 of the Owner Trust Agreement. Nothing in this
Section shall be construed to require that any Person obtain the consent of the
Indenture Trustee to any amendment or waiver or any provision of any document
where the making of such amendment or the giving of such waiver without
obtaining the consent of the Indenture Trustee is not prohibited by this
Indenture or by the terms of the document that is the subject of the proposed
amendment or waiver.

                                    ARTICLE X

                               REDEMPTION OF NOTES

            Section 10.01 Redemption. The Majority Residual Interestholders (as
defined in the Owner Trust Agreement) may, at its option, effect an early
redemption of the Notes on any Payment Date on or after the Payment Date on
which the Pool Principal Balance declines to ___% or less of the Original Pool
Principal Balance. The [Securities Insurer or the] Master

                                      -54-
<PAGE>

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

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

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

            All notices of redemption shall state:

            (i) the Redemption Date;

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

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

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

            Section 10.03 Notes Payable on Redemption Date; Provision for
Payment of Indenture Trustee [and Securities Insurer]. The Notes to be redeemed
shall, following notice of redemption as required by Section 10.02 hereof (in
the case of redemption pursuant to Section 10.01) hereof, on the Redemption Date
become due and payable at the Note Redemption Amount and (unless the Issuer
shall default in the payment of the Note Redemption Amount) no interest shall
accrue thereon for any period after the date to which accrued interest is
calculated for purposes of calculating the Note Redemption Amount. The Issuer
may not redeem the Notes unless (i) all outstanding obligations under the Notes
have been paid in full and (ii) the Indenture Trustee has been paid all amounts
to which it is entitled hereunder [and the Securities Insurer has been paid all
Securities Insurer Reimbursement Amounts to which it is entitled as of the
applicable Redemption Date].

                                      -55-
<PAGE>

                                   ARTICLE XI

                                  MISCELLANEOUS

            Section 11.01 Compliance Certificates and Opinions, Etc.

            (a) Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture (except with
respect to the Master Servicer's servicing activity in the ordinary course of
its business), the Issuer shall furnish to the Indenture Trustee [and the
Securities Insurer] (i) an Officer's Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, (ii) an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been
complied with and (iii) (if required by the TIA) an Independent Certificate from
a firm of certified public accountants meeting the applicable requirements of
this Section, except that, in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this Indenture, no additional certificate or opinion need be furnished.

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

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

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

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

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

            (b) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 11.01(a) hereof
or elsewhere in this Indenture, furnish to the Indenture Trustee [and the
Securities Insurer] an Officer's Certificate certifying or stating the opinion
of each person signing such certificate as to the fair value (within 90 days of
such deposit) to the Issuer of the Collateral or other property or securities to
be so deposited.

            (c) Whenever the Issuer is required to furnish to the Indenture
Trustee [and the Securities Insurer] an Officer's Certificate certifying or
stating the opinion of any signer thereof as to the matters described in
Subsection (b) above, the Issuer shall also deliver to the

                                      -56-
<PAGE>

Indenture Trustee an Independent Certificate as to the same matters, if the fair
value to the Issuer of the securities to be so deposited and of all other such
securities made the basis of any such withdrawal or release since the
commencement of the then-current fiscal year of the Issuer, as set forth in the
certificates delivered pursuant to Subsection (b) above and this Subsection (c),
is __% or more of the Outstanding Amount of the Notes, but such a certificate
need not be furnished with respect to any securities so deposited, if the fair
value thereof to the Issuer as set forth in the related Officer's Certificate is
less than $25,000 or less than one percent of the Outstanding Amount of the
Notes.

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

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

            Section 11.02 Form of Documents Delivered to Indenture Trustee. In
any case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

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

                                      -57-
<PAGE>

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

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

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

            Section 11.03 Acts of Noteholders.

            (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Act" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.01 hereof)
conclusive in favor of the Indenture Trustee and the Issuer, if made in the
manner provided in this Section 11.03.

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

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

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

            Section 11.04 Notices, Etc., to Indenture Trustee, Issuer, Rating
Agencies [and Securities Insurer]. Any request, demand, authorization,
direction, notice, consent, waiver or Act of Noteholders or other documents
provided or permitted by this Indenture shall be in writing

                                      -58-
<PAGE>

and if such request, demand, authorization, direction, notice, consent, waiver
or act of Noteholders is to be made upon, given or furnished to or filed with:

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

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

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

                  ______________________
                  ______________________
                  ______________________

      or at any other address previously furnished in writing to the Indenture
      Trustee by the Issuer or the Administrator. The Issuer shall promptly
      transmit any notice received by it from the Noteholders to the Indenture
      Trustee.

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

            in the case of _________, at the following address:

                  ______________________
                  ______________________
                  ______________________

                  and

            in the case of _________:

                  ______________________
                  ______________________
                  ______________________

                                      -59-
<PAGE>

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

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

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

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

                  ______________________
                  ______________________
                  ______________________

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

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

                  HSI Asset Securitization Corporation
                  452 Fifth Avenue
                  New York, New York 10018
                  Attention:  ________________

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

            Section 11.05 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have duly been given.

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

                                      -60-
<PAGE>

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

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

            Section 11.06 Conflict With Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

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

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

            Section 11.08 Successors and Assigns. All covenants and agreements
in this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

            Section 11.09 Separability. In case any provision in this Indenture
or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

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

            Section 11.11 Legal Holidays. In any case where the date on which
any payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

                                      -61-
<PAGE>

            Section 11.12 Governing Law. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

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

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

            Section 11.15 Owner Trust Obligation. No recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer, the Owner
Trustee or the Indenture Trustee on the Notes or, except as expressly provided
for in Article VI hereof, under this Indenture or any certificate or other
writing delivered in connection herewith or therewith, against (i) the Indenture
Trustee or the Owner Trustee in its individual capacity, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director, employee or agent of the Indenture Trustee or the
Owner Trustee in its individual capacity, any holder of a beneficial interest in
the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or
assign of the Indenture Trustee or the Owner Trustee in its individual capacity,
except as any such Person may expressly have agreed (it being understood that
the Indenture Trustee and the Owner Trustee have no such obligations in their
individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. For all purposes of this Indenture, in
the performance of any duties or obligations of the Issuer hereunder, the Owner
Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Articles VI, VII and VIII of the Owner Trust Agreement.

            Section 11.16 No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by accepting a Note, hereby covenant and
agree that they will not at any time institute against the Transferor, the
Servicer, the Master Servicer or the Issuer, or join in any institution against
the Transferor, the Servicer, the Master Servicer or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law, in connection with any obligations relating to the Notes, this
Indenture or any of the Basic Documents.

            Section 11.17 Inspection. The Issuer agrees that, on reasonable
prior notice, it will permit any representative of the Indenture Trustee [or the
Securities Insurer], during the Issuer's normal business hours, to examine all
the books of account, records, reports and other

                                      -62-
<PAGE>

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

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

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

            Section 11.20 Suspension And Termination Of Securities Insurer's
Rights.

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

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

                            [SIGNATURE PAGE FOLLOWS]

                                      -63-
<PAGE>

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

                                       ______________ HOME LOAN
                                          OWNER TRUST 200_-_

                                       By:____________________________________

                                          not in its individual capacity but
                                          solely as Owner Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

                                          not in its individual capacity, but
                                          solely as Indenture Trustee

                                       By:____________________________________
                                          Name:
                                          Title:

                                      -64-
<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

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

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

                                        ----------------------------------------
                                                    Notary Public

                [SEAL]

My commission expires:

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

                                      -65-
<PAGE>

STATE OF                )
                        )  ss.:
COUNTY OF               )

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

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

                                        ----------------------------------------
                                                    Notary Public

                [SEAL]

My commission expires:

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

                                      -66-
<PAGE>

                                    EXHIBIT A

                                  FORM OF NOTE

                                      NOTE

            Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer or its
agent for registration of transfer, exchange or payment, and any Note issued is
registered in the name of Cede & Co. or in such other name as is requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

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

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

                                      A-1
<PAGE>

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

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

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

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

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

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

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

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

                                      A-2
<PAGE>

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

                            [Signature Page Follows]

                                      A-3
<PAGE>

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

Date: __________, 200_

                                       _______________ HOME LOAN OWNER TRUST
                                          200_-_

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

                                       By:____________________________________
                                          Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date: _______________, 200_

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

                                       By:____________________________________
                                          Authorized Signatory

                                      A-4
<PAGE>

                                [REVERSE OF NOTE]

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

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

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

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

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

                                      A-5
<PAGE>

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

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

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

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

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

                                      A-6
<PAGE>

its individual capacity, except as any such Person may have expressly agreed and
except that any such partner, owner or beneficiary shall be fully liable, to the
extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity.

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

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

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

            The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Rating Agencies[, the Securities
Insurer (provided that no Securities Insurer Default has occurred and is
continuing)] and the Holders of Notes representing not less than a majority of
the Outstanding Notes. The Indenture also contains provisions permitting the
[Securities Insurer, or if a Securities Insurer Default has occurred and is
continuing,] the Holders of Notes representing not less than a majority of the
Outstanding Amount of the Notes, on behalf of the Holders of all the Notes, to
waive compliance by the Issuer with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note (or any one or more Predecessor
Notes) shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such
consent or waiver is made upon this Note. The Indenture also permits the
Indenture Trustee [or the Securities Insurer] to amend or waive certain terms
and conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder.

                                      A-7
<PAGE>

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

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

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

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

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

                                      A-8
<PAGE>

                                   ASSIGNMENT

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

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

                         (name and address of assignee)

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

            Dated:

____________________________________________________________________________*/

                                       Signature Guaranteed:

____________________________________________________________________________*/

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

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

                                      A-9

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