Document:

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Exhibit Number      Description
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10.01               1997 Employee Stock Option Plan, as amended

                                 TERADYNE, INC.
                         1997 EMPLOYEE STOCK OPTION PLAN

                         (AS AMENDED AS OF MAY 24, 2001)

     1.   PURPOSE. The purpose of the Teradyne, Inc. 1997 Employee Stock Option
Plan (the "Plan") is to encourage key employees of Teradyne, Inc. (the
"Company") and of any present or future parent or subsidiary of the Company
(collectively, "Related Corporations") and other individuals who render services
to the Company or a Related Corporation, by providing opportunities to
participate in the ownership of the Company and its future growth through (a)
the grant of options which qualify as "incentive stock options" ("ISOs") under
Section 422(b) of the Internal Revenue Code of 1986, as amended (the "Code");
(b) the grant of options which do not qualify as ISOs ("Non-Qualified Options");
(c) awards of stock in the Company ("Awards"); and (d) opportunities to make
direct purchases of stock in the Company ("Purchases"). Both ISOs and
Non-Qualified Options are referred to hereafter individually as an "Option" and
collectively as "Options." Options, Awards and authorizations to make Purchases
are referred to hereafter collectively as "Stock Rights." As used herein, the
terms "parent" and "subsidiary" mean "parent corporation" and "subsidiary
corporation," respectively, as those terms are defined in Section 424 of the
Code.

     2.   ADMINISTRATION OF THE PLAN.

               A.   BOARD OR COMMITTEE ADMINISTRATION. The Plan shall be
          administered by the Board of Directors of the Company (the "Board")
          or, subject to paragraph 2(D) (relating to compliance with Section
          162(m) of the Code), by a committee appointed by the Board (the
          "Committee"). Hereinafter, all references in this Plan to the
          "Committee" shall mean the Board if no Committee has been appointed.
          Subject to ratification of the grant or authorization of each Stock
          Right by the Board (if so required by applicable state law), and
          subject to the terms of the Plan, the Committee shall have the
          authority to (i) determine to whom (from among the class of employees
          eligible under paragraph 3 to receive ISOs) ISOs shall be granted, and
          to whom (from among the class of individuals and entities eligible
          under paragraph 3 to receive Non-Qualified Options and Awards and to
          make Purchases) Non-Qualified Options, Awards and authorizations to
          make Purchases may be granted; (ii) determine the time or times at
          which Options or Awards shall be granted or Purchases made; (iii)
          determine the purchase price of shares subject to each Option or
          Purchase, which prices shall not be less than the minimum price
          specified in paragraph 6; (iv) determine whether each Option granted
          shall be an ISO or a Non-Qualified Option; (v) determine (subject to
          paragraph 7) the time or times when each Option shall become
          exercisable and the duration of the exercise period; (vi) extend the
          period during which outstanding Options may be exercised; (vii)
          determine whether restrictions such as repurchase options are to be
          imposed on shares subject to Options, Awards and Purchases and the
          nature of such restrictions, if any, and (viii) interpret the Plan and
          prescribe and rescind rules and regulations relating to it. If the
          Committee determines to issue a Non-Qualified Option, it shall take
          whatever actions it deems necessary, under Section 422 of the Code and
          the regulations promulgated thereunder, to ensure that such Option is
          not treated as an ISO. The interpretation and construction by the
          Committee of any provisions of the Plan or of any Stock Right granted
          under it shall be final unless otherwise determined by the Board. The
          Committee may from time to time adopt such rules and regulations for
          carrying out the Plan as it may deem advisable. No member of the Board
          or the Committee shall be liable for any action or determination made
          in good faith with respect to the Plan or any Stock Right granted
          under it.

               B.   COMMITTEE ACTIONS. The Committee may select one of its
          members as its chairman, and shall hold meetings at such time and
          place as it may determine. A majority of the Committee shall
          constitute a quorum and acts of a majority of the members of the
          Committee at a meeting at which a quorum is present, or acts reduced
          to or approved in writing by all the members of the Committee (if
          consistent with applicable state law), shall be the valid acts of the
          Committee. From time to time the Board may increase the size of the
          Committee and appoint additional members thereof, remove members (with
          or without cause) and appoint new members in substitution therefor,
          fill vacancies however caused, or remove all members of the Committee
          and thereafter directly administer the Plan.

               C.   GRANT OF STOCK RIGHTS TO BOARD MEMBERS. Stock Rights may be
          granted to members of the Board. All grants of Stock Rights to members
          of the Board shall in all respects be made in accordance with the
          provisions of this Plan applicable to other eligible persons. Members
          of the Board who either (i) are eligible to receive grants of Stock
          Rights pursuant to the Plan or (ii) have been granted Stock Rights may
          vote on any matters affecting the administration of the Plan or the
          grant of any Stock Rights pursuant to the Plan, except that no such
          member shall act upon the granting to himself or herself of Stock

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          Rights, but any such member may be counted in determining the
          existence of a quorum at any meeting of the Board during which action
          is taken with respect to the granting to such member of Stock Rights.

               D.   PERFORMANCE-BASED COMPENSATION. The Board, in its
          discretion, may take such action as may be necessary to ensure that
          Stock Rights granted under the Plan qualify as "qualified
          performance-based compensation" within the meaning of Section 162(m)
          of the Code and applicable regulations promulgated thereunder
          ("Performance-Based Compensation"). Such action may include, in the
          Board's discretion, some or all of the following (i) if the Board
          determines that Stock Rights granted under the Plan generally shall
          constitute Performance-Based Compensation, the Plan shall be
          administered, to the extent required for such Stock Rights to
          constitute Performance-Based Compensation, by a Committee consisting
          solely of two or more "outside directors" (as defined in applicable
          regulations promulgated under Section 162(m) of the Code), (ii) if any
          Non-Qualified Options with an exercise price less than the fair market
          value per share of Common Stock are granted under the Plan and the
          Board determines that such Options should constitute Performance-Based
          Compensation, such options shall be made exercisable only upon the
          attainment of a pre-established, objective performance goal
          established by the Committee, and such grant shall be submitted for,
          and shall be contingent upon shareholder approval and (iii) Stock
          Rights granted under the Plan may be subject to such other terms and
          conditions as are necessary for compensation recognized in connection
          with the exercise or disposition of such Stock Right or the
          disposition of Common Stock acquired pursuant to such Stock Right, to
          constitute Performance-Based Compensation.

     3.   ELIGIBLE EMPLOYEES AND OTHERS. ISOs may be granted only to employees
of the Company or any Related Corporation. Non-Qualified Options, Awards and
authorizations to make Purchases may be granted to any employee, consultant or
director of the Company or any Related Corporation; PROVIDED, HOWEVER, that no
Option may be granted hereunder to any non-employee director. The Committee may
take into consideration a recipient's individual circumstances in determining
whether to grant a Stock Right. The granting of any Stock Right to any
individual or entity shall neither entitle that individual or entity to, nor
disqualify such individual or entity from, participation in any other grant of
Stock Rights.

     4.   STOCK. The stock subject to Stock Rights shall be authorized but
unissued shares of Common Stock of the Company, par value $.125 per share (the
"Common Stock"), or shares of Common Stock reacquired by the Company in any
manner. The aggregate number of shares which may be issued pursuant to the Plan
is 53,000,000, subject to adjustment as provided in paragraph 13. If any Option
granted under the Plan shall expire or terminate for any reason without having
been exercised in full or shall cease for any reason to be exercisable in whole
or in part or shall be repurchased by the Company, the unpurchased shares of
Common Stock subject to such Option shall again be available for grants of Stock
Rights under the Plan.

     No employee of the Company or any Related Corporation may be granted
Options to acquire, in the aggregate, more than 2,000,000 shares of Common Stock
under the Plan during any fiscal year of the Company. If any Option granted
under the Plan shall expire or terminate for any reason without having been
exercised in full or shall cease for any reason to be exercisable in whole or in
part or shall be repurchased by the Company, the shares subject to such Option
shall be included in the determination of the aggregate number of shares of
Common Stock deemed to have been granted to such employee under the Plan.

     5.   GRANTING OF STOCK RIGHTS. Stock Rights may be granted under the Plan
at any time on or after January 28, 1997 and prior to January 25, 2007. The date
of grant of a Stock Right under the Plan will be the date specified by the
Committee at the time it grants the Stock Right; PROVIDED, HOWEVER, that such
date shall not be prior to the date on which the Committee acts to approve the
grant. The Committee shall have the right, with the consent of the optionee, to
convert an ISO granted under the Plan to a Non-Qualified Option pursuant to
paragraph 16.

     6.   MINIMUM OPTION PRICE; ISO LIMITATIONS.

               A.   PRICE FOR NON-QUALIFIED OPTIONS, AWARDS AND PURCHASES.
          Subject to paragraph 2(D) (relating to compliance with Section 162(m)
          of the Code), the exercise price per share specified in the agreement
          relating to each Non-Qualified Option granted, and the purchase price
          per share of stock granted in any Award or authorized as a Purchase,
          under the Plan may be less than the fair market value of the Common
          Stock of the Company on the date of grant; PROVIDED that, in no event
          shall such exercise price or such purchase price be less than the
          minimum legal consideration required therefor under the laws of any
          jurisdiction in which the Company or its successors in interest may be
          organized. No more than 400,000 Non-Qualified Options may be granted
          under the Plan for less than "fair market value" (as hereinafter
          defined).

               B.   PRICE FOR ISOs. The exercise price per share specified in
          the agreement relating to each ISO granted under the Plan shall not be
          less than the fair market value per share of Common Stock on the date
          of such grant. In the case of an ISO to be granted to an employee
          owning stock possessing more than ten percent (10%) of the total
          combined voting power of all classes of stock of the Company or any
          Related Corporation, the price per share specified in the agreement
          relating to such ISO shall not be less than one hundred ten percent
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          (110%) of the fair market value per share of Common Stock on the date
          of grant. For purposes of determining stock ownership under this
          paragraph, the rules of Section 424(d) of the Code shall apply.

               C.   $100,000 ANNUAL LIMITATION ON ISO VESTING. Each eligible
          employee may be granted Options treated as ISOs only to the extent
          that, in the aggregate under this Plan and all incentive stock option
          plans of the Company and any Related Corporation, ISOs do not become
          exercisable for the first time by such employee during any calendar
          year with respect to stock having a fair market value (determined at
          the time the ISOs were granted) in excess of $100,000. Any Options
          granted to an employee in excess of such limitation will be granted as
          Non-Qualified Options, and the Company shall issue separate
          certificates to the optionee with respect to Options that are
          Non-Qualified Options and Options that are ISOs.

               D.   DETERMINATION OF FAIR MARKET VALUE. If, at the time an
          Option is granted under the Plan, the Company's Common Stock is
          publicly traded, "fair market value" shall be determined as of the
          date of grant or, if the prices or quotes discussed in this sentence
          are unavailable for such date, the last business day for which such
          prices or quotes are available prior to the date of grant and shall
          mean (i) the average (on that date) of the high, low and closing
          prices of the Common Stock on the principal national securities
          exchange on which the Common Stock is traded, if the Common Stock is
          then traded on a national securities exchange; or (ii) the last
          reported sale price (on that date) of the Common Stock on the Nasdaq
          National Market, if the Common Stock is not then traded on a national
          securities exchange; or (iii) the closing bid price (or average of bid
          prices) last quoted (on that date) by an established quotation service
          for over-the-counter securities, if the Common Stock is not reported
          on the Nasdaq National Market. If the Common Stock is not publicly
          traded at the time an Option is granted under the Plan, "fair market
          value" shall mean the fair value of the Common Stock as determined by
          the Committee after taking into consideration all factors which it
          deems appropriate, including, without limitation, recent sale and
          offer prices of the Common Stock in private transactions negotiated at
          arm's length.

     7.   OPTION DURATION. Subject to earlier termination as provided in
paragraphs 9 and 10 or in the agreement relating to such Option, each Option
shall expire on the date specified by the Committee, but not more than (i) ten
years and one day from the date of grant in the case of Non-Qualified Options,
(ii) ten years from the date of grant in the case of ISOs and (iii) five years
from the date of grant in the case of ISOs granted to an employee owning stock
possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company or any Related Corporation, as determined under
paragraph 6(B). Subject to earlier termination as provided in paragraphs 9 and
10, the term of each ISO shall be the term set forth in the original instrument
granting such ISO, except with respect to any part of such ISO that is converted
into a Non-Qualified Option pursuant to paragraph 16.

     8.   EXERCISE OF OPTION. Subject to the provisions of paragraphs 9 through
12, each Option granted under the Plan shall be exercisable as follows:

               A.   VESTING. The Option shall either be fully exercisable on the
          date of grant or shall become exercisable thereafter in such
          installments as the Committee may specify.

               B.   FULL VESTING OF INSTALLMENTS. Once an installment becomes
          exercisable, it shall remain exercisable until expiration or
          termination of the Option, unless otherwise specified by the
          Committee.

               C.   PARTIAL EXERCISE. Each Option or installment may be
          exercised at any time or from time to time, in whole or in part, for
          up to the total number of shares with respect to which it is then
          exercisable.

               D.   ACCELERATION OF VESTING. The Committee shall have the right
          to accelerate the date that any installment of any Option becomes
          exercisable; PROVIDED, that the Committee shall not, without the
          consent of an optionee, accelerate the permitted exercise date of any
          installment of any Option granted to any employee as an ISO (and not
          previously converted into a Non-Qualified Option pursuant to paragraph
          16) if such acceleration would violate the annual vesting limitation
          contained in Section 422(d) of the Code, as described in paragraph
          6(C).

     9.   TERMINATION OF EMPLOYMENT. Unless otherwise specified in the agreement
relating to such ISO, if an optionee ceases to be employed by the Company and
all Related Corporations other than by reason of death or disability as defined
in paragraph 10, no further installments of his or her Options shall become
exercisable, and his or her Options shall terminate after the passage of 90 days
from the date of termination of his or her employment; PROVIDED, that the
Committee may specify that Non-Qualified Options may remain exercisable for more
than 90 days from the date of termination of employment; PROVIDED, FURTHER, that
in no event shall any Option or part or installment thereof become or remain
exercisable after its specified expiration date. Employment shall be considered
as continuing uninterrupted during any bona fide leave of absence (such as those
attributable to illness, military obligations or governmental service) provided
that the period of such leave does not exceed 90 days or, if longer, any period
during which such optionee's right to reemployment is guaranteed by statute. A
bona fide leave of absence with the written approval of the Committee shall not
be considered an interruption of employment under the Plan, provided that such

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written approval contractually obligates the Company or any Related Corporation
to continue the employment of the optionee after the approved period of absence.
Options granted under the Plan shall not be affected by any change of employment
within or among the Company and Related Corporations, so long as the optionee
continues to be an employee of the Company or any Related Corporation. Nothing
in the Plan shall be deemed to give any grantee of any Stock Right the right to
be retained in employment or other service by the Company or any Related
Corporation for any period of time.

     Notwithstanding anything to the contrary contained above, in the case of
normal retirement, Non-Qualified Options granted to an optionee shall remain
exercisable until the date which is the earlier of (i) the Non-Qualified Options
specified expiration date or (ii) 90 days from the date upon which such optionee
becomes employed by a competitor of the Company, to the extent of the number of
shares which have vested prior to and during such period. The Committee shall
have the absolute discretion to determine whether and as of what date any
optionee is employed by a competitor of the Company.

     10.  DEATH; DISABILITY.

               A.   DEATH. If an optionee ceases to be employed by the Company
          and all Related Corporations by reason of his or her death, any Option
          owned by such optionee may be exercised, to the extent of the number
          of shares with respect to which such optionee has theretofore been
          granted Options (whether or not such Options have vested in accordance
          with their terms), by the estate, personal representative or
          beneficiary who has acquired the Option by will or by the laws of
          descent and distribution, (i) in the case of ISOs, at any time prior
          to the earlier of the ISOs' specified expiration date or 180 days from
          the date of such optionee's death or (ii) in the case of Non-Qualified
          Options, at any time prior to the earlier of the Non-Qualified Options
          specified expiration date or one year from the date of such optionee's
          death.

               B.   DISABILITY. If an optionee ceases to be employed by the
          Company and all Related Corporations by reason of his or her
          disability, any Option theretofore granted to such optionee shall
          remain exercisable until the date which is (i) in the case of ISOs,
          the earlier of such ISOs' specified expiration date or 180 days from
          the date of the termination of such optionee's employment or (ii) in
          the case of Non-Qualified Options, the earlier of the Non-Qualified
          Options specified expiration date or 33 months from the date of the
          termination of the optionee's employment, to the extent of the number
          of shares (a) which, in the case of ISOs, have vested prior to and
          during the period specified in clause (i) and (b) which, in the case
          of Non-Qualified Options, have vested prior to and during the period
          which is 30 months from the date the optionee ceases to be employed by
          the Company. For the purposes of the Plan, the term "disability" shall
          mean "permanent and total disability" as defined in Section 22(e)(3)
          of the Code or any successor statute.

     11.  ASSIGNABILITY. No Option shall be assignable or transferable by the
optionee except by will or by the laws of descent and distribution, and during
the lifetime of the optionee shall be exercisable only by such optionee.

     12.  TERMS AND CONDITIONS OF OPTIONS. Options shall be evidenced by
instruments (which need not be identical) in such forms as the Committee may
from time to time approve. Such instruments shall conform to the terms and
conditions set forth in paragraphs 6 through 11 hereof and may contain such
other provisions as the Committee deems advisable which are not inconsistent
with the Plan, including restrictions applicable to shares of Common Stock
issuable upon exercise of Options. The Committee may specify that any
Non-Qualified Option shall be subject to the restrictions set forth herein with
respect to ISOs, or to such other termination and cancellation provisions as the
Committee may determine. The Committee may from time to time confer authority
and responsibility on one or more of its own members and/or one or more officers
of the Company to execute and deliver such instruments. The proper officers of
the Company are authorized and directed to take any and all action necessary or
advisable from time to time to carry out the terms of such instruments.

     13.  ADJUSTMENTS. Upon the occurrence of any of the following events, an
optionee's rights with respect to Options granted to such optionee hereunder
shall be adjusted as hereinafter provided, unless otherwise specifically
provided in the written agreement between the optionee and the Company relating
to such Option:

               A.   STOCK DIVIDENDS AND STOCK SPLITS. If the shares of Common
          Stock shall be subdivided into a greater or smaller number of shares
          or if the Company shall issue any shares of Common Stock as a stock
          dividend on its outstanding Common Stock, the number of shares of
          Common Stock deliverable upon the exercise of Options shall be
          appropriately increased or decreased proportionately, and appropriate
          adjustments shall be made in the purchase price per share to reflect
          such subdivision, combination or stock dividend.

               B.   CONSOLIDATIONS OR MERGERS. If the Company is to be
          consolidated with or acquired by another entity in a merger, sale of
          all or substantially all of the Company's assets or otherwise (each,
          an "Acquisition"), the Committee or the board of directors of any
          entity assuming the obligations of the Company hereunder (the
          "Successor Board"), shall, as to outstanding Options, make appropriate
          provision for the continuation of such Options by substituting on an
          equitable basis for the shares then subject to such Options the
          consideration payable with respect to the outstanding shares of Common
          Stock in connection with the Acquisition.

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               C.   RECAPITALIZATION OR REORGANIZATION. In the event of a
          recapitalization or reorganization of the Company pursuant to which
          securities of the Company or of another corporation are issued with
          respect to the outstanding shares of Common Stock, an optionee upon
          exercising an Option shall be entitled to receive for the purchase
          price paid upon such exercise the securities he or she would have
          received if he or she had exercised such Option prior to such
          recapitalization or reorganization.

               D.   MODIFICATION OF ISOs. Notwithstanding the foregoing, any
          adjustments made pursuant to subparagraphs A, B or C with respect to
          ISOs shall be made only after the Committee, after consulting with
          counsel for the Company, determines whether such adjustments would
          constitute a "modification" of such ISOs (as that term is defined in
          Section 424 of the Code) or would cause any adverse tax consequences
          for the holders of such ISOs. If the Committee determines that such
          adjustments made with respect to ISOs would constitute a modification
          of such ISOs or would cause adverse tax consequences to the holders,
          it may refrain from making such adjustments.

               E.   DISSOLUTION OR LIQUIDATION. In the event of the proposed
          dissolution or liquidation of the Company, each Option will terminate
          immediately prior to the consummation of such proposed action or at
          such other time and subject to such other conditions as shall be
          determined by the Committee.

               F.   ISSUANCES OF SECURITIES. Except as expressly provided
          herein, no issuance by the Company of shares of stock of any class, or
          securities convertible into shares of stock of any class, shall
          affect, and no adjustment by reason thereof shall be made with respect
          to, the number or price of shares subject to Options. No adjustments
          shall be made for dividends paid in cash or in property other than
          securities of the Company.

               G.   FRACTIONAL SHARES. No fractional shares shall be issued
          under the Plan and the optionee shall receive from the Company cash in
          lieu of such fractional shares.

               H.   ADJUSTMENTS. Upon the happening of any of the events
          described in subparagraphs A, B or C above, the class and aggregate
          number of shares set forth in paragraph 4 hereof that are subject to
          Stock Rights which previously have been or subsequently may be granted
          under the Plan shall also be appropriately adjusted to reflect the
          events described in such subparagraphs. The Committee or the Successor
          Board shall determine the specific adjustments to be made under this
          paragraph 13 and, subject to paragraph 2, its determination shall be
          conclusive.

     If any person or entity owning restricted Common Stock obtained by exercise
of an Option receives shares or securities or cash in connection with a
corporate transaction described in subparagraphs A, B or C above as a result of
owning such restricted Common Stock, such shares or securities or cash shall be
subject to all of the conditions and restrictions applicable to the restricted
Common Stock with respect to which such shares or securities or cash were
issued, unless otherwise determined by the Committee or the Successor Board.

     14.  MEANS OF EXERCISING OPTIONS. An Option (or any part or installment
thereof) shall be exercised by giving written notice to the Company at its
principal office address. Such notice shall identify the Option being exercised
and specify the number of shares as to which such Option is being exercised,
accompanied by full payment of the purchase price therefor either (a) in United
States dollars in cash or by check, (b) at the discretion of the Committee,
through delivery of shares of Common Stock having a fair market value equal as
of the date of the exercise to the cash exercise price of the Option, (c) at the
discretion of the Committee in exceptional cases, by delivery of the grantee's
personal recourse note bearing interest payable not less than annually at no
less than 100% of the lowest applicable Federal rate, as defined in Section
1274(d) of the Code, or (d) at the discretion of the Committee, by any
combination of (a), (b) and (c) above. If the Committee exercises its discretion
to permit payment of the exercise price of an ISO by means of the methods set
forth in clauses (b), (c) or (d) of the preceding sentence, such discretion
shall be exercised in writing at the time of the grant of the ISO in question.
Alternatively, payment may be made in whole or in part in shares of the Common
Stock of the Company already owned by the person or persons exercising the
Option or shares subject to the Option being exercised (subject to such
restrictions and guidelines as the Board may adopt from time to time), or
consistent with applicable law, through the delivery of an assignment to the
Company of a sufficient amount of the proceeds from the sale of the Common Stock
acquired upon exercise of the Option and an authorization to the broker or
selling agent to pay that amount to the Company, which sale shall be at the
participant's direction at the time of exercise, provided that the Committee
shall allow for such payment at the time of grant of the ISO. The holder of an
Option shall not have the rights of a shareholder with respect to the shares
covered by such Option until the date of issuance of a stock certificate to such
holder for such shares. Except as expressly provided above in paragraph 13 with
respect to changes in capitalization and stock dividends, no adjustment shall be
made for dividends or similar rights for which the record date is before the
date such stock certificate is issued.

     15.  TERM AND AMENDMENT OF PLAN. This Plan was adopted by the Board on
January 28, 1997, and shall expire at the end of the day on January 25, 2007
(except as to Options outstanding on that date). The Board may at any time
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terminate this Plan or make such modification or amendment thereof as it deems
advisable; PROVIDED, HOWEVER, that the Board may not modify or amend this Plan,
without approval by the affirmative vote of the holders of a majority of the
securities of the Company present, or represented, and entitled to vote at a
meeting duly held in accordance with the applicable laws of the state in which
the Company is incorporated, if (i) such approval would be necessary for Option
grants under the Plan to qualify for favorable treatment under Sections 162(m)
or 422 of the Code, or any successor provisions; or (ii) such approval is
otherwise required by law or the rules of any national securities exchange or
inter-dealer quotation system on which the Common Stock is then listed (in each
case, at the time of any such modification or amendment). Termination or any
modification or amendment of this Plan shall not, without consent of a
participant, affect his or her rights under an option previously granted to him
or her.

     16.  CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS. The Committee, at the
written request or with the written consent of any optionee, may in its
discretion take such actions as may be necessary to convert such optionee's ISOs
(or any installments or portions of installments thereof) that have not been
exercised on the date of conversion into Non-Qualified Options at any time prior
to the expiration of such ISOs, regardless of whether the optionee is an
employee of the Company or a Related Corporation at the time of such conversion.
Such actions may include, but shall not be limited to, extending the exercise
period or reducing the exercise price of the appropriate installments of such
ISOs. At the time of such conversion, the Committee (with the consent of the
optionee) may impose such conditions on the exercise of the resulting
Non-Qualified Options as the Committee in its discretion may determine, provided
that such conditions shall not be inconsistent with this Plan. Nothing in the
Plan shall be deemed to give any optionee the right to have such optionee's ISOs
converted into Non-Qualified Options, and no such conversion shall occur until
and unless the Committee takes appropriate action. Upon the taking of such
action, the Company shall issue separate certificates to the optionee with
respect to Options that are Non-Qualified Options and Options that are ISOs. The
Committee, with the consent of the optionee, may also terminate any portion of
any ISO that has not been exercised at the time of such termination.

     17.  APPLICATION OF FUNDS. The proceeds received by the Company from the
sale of shares pursuant to Options granted and Purchases authorized under the
Plan shall be used for general corporate purposes.

     18.  NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION. Each employee who
receives an ISO shall agree to notify the Company in writing immediately after
such optionee makes a Disqualifying Disposition (as described in Sections 421,
422 and 424 of the Code and regulations thereunder) of any stock acquired
pursuant to the exercise of ISOs granted under the Plan. A Disqualifying
Disposition is generally any disposition occurring on or before the later of (a)
the date two years following the date the ISO was granted or (b) the date one
year following the date the ISO was exercised.

     19.  WITHHOLDING OF ADDITIONAL INCOME TAXES. Upon the exercise of a
Non-Qualified Option, the transfer of a Non-Qualified Stock Option pursuant to
an arm's-length transaction, the grant of an Award, the making of a Purchase of
Common Stock for less than its fair market value, the making of a Disqualifying
Disposition (as defined in paragraph 18), the vesting or transfer of restricted
stock or securities acquired on the exercise of an Option hereunder, or the
making of a distribution or other payment with respect to such stock or
securities, the Company may withhold taxes in respect of amounts that constitute
compensation includible in such Optionee's gross income. The Committee in its
discretion may condition (i) the exercise of an Option, (ii) the transfer of a
Non-Qualified Stock Option, (iii) the grant of an Award, (iv) the making of a
Purchase of Common Stock for less than its fair market value, or (v) the vesting
or transferability of restricted stock or securities acquired by exercising an
Option, on the grantee's making satisfactory arrangement for such withholding.
Such arrangement may include payment by the grantee in cash or by check of the
amount of the withholding taxes or, at the discretion of the Committee, by the
grantee's delivery of previously held shares of Common Stock or the withholding
from the shares of Common Stock otherwise deliverable upon exercise of a Option
shares having an aggregate fair market value equal to the amount of such
withholding taxes.

     20.  GOVERNMENTAL REGULATION. The Company's obligation to sell and deliver
shares of Common Stock under this Plan is subject to the approval of any
governmental authority required in connection with the authorization, issuance
or sale of such shares.

     Government regulations may impose reporting or other obligations on the
Company with respect to the Plan. For example, the Company may be required to
send tax information statements to employees and former employees that exercise
ISOs under the Plan, and the Company may be required to file tax information
returns reporting the income received by grantees of Options in connection with
the Plan.

     21.  GOVERNING LAW. The validity and construction of the Plan and the
instruments evidencing Stock Rights shall be governed by the laws of The
Commonwealth of Massachusetts, or the laws of any jurisdiction in which the
Company or its successors in interest may be organized.<PAGE>

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

                          ABN AMRO MORTGAGE CORPORATION

                                    Depositor

                                       and

                   WASHINGTON MUTUAL MORTGAGE SECURITIES CORP.

                                    Servicer

                                       and

                       STATE STREET BANK AND TRUST COMPANY

                                     Trustee

                         POOLING AND SERVICING AGREEMENT

                            Dated as of July 1, 2001

                                 $343,394,509.04

                       Mortgage Pass-Through Certificates

                                  SERIES 2001-4

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                           <C>
ARTICLE I             DEFINITIONS................................................................................4

ARTICLE II            CONVEYANCE OF TRUST FUND; ORIGINAL ISSUANCE OF CERTIFICATES...............................34

         Section 2.1           Conveyance of Trust Fund.........................................................34

         Section 2.2           Acceptance by Trustee............................................................38

         Section 2.3           Representations and Warranties of the Depositor..................................39

         Section 2.4           Authentication and Delivery of Certificates; Designation of Certificates
                               as REMIC Regular and Residual Interests..........................................43

         Section 2.5           Designation of Startup Day.......................................................44

         Section 2.6           No Contributions.................................................................44

         Section 2.7           Representations and Warranties of the Servicer...................................44

ARTICLE III           ADMINISTRATION AND SERVICING OF LOANS.....................................................45

         Section 3.1           Servicer to Act as Servicer; Administration of the Loans.........................45

         Section 3.2           Collection of Certain Loan Payments; Custodial Account for P&I...................48

         Section 3.3           Permitted Withdrawals from the Custodial Account for P&I.........................50

         Section 3.4           Taxes, Assessments and Similar Items; Escrow Accounts............................51

         Section 3.5           Maintenance of Insurance.........................................................52

         Section 3.6           Enforcement of Due-on-Sale Clauses; Assumption and Substitution Agreements.......54

         Section 3.7           Realization upon Defaulted Loans.................................................54

         Section 3.8           Trustee to Cooperate; Release of Mortgage Files..................................56

         Section 3.9           Servicing Compensation...........................................................57

         Section 3.10          Reports to the Trustee; Custodial Account for P&I Statements.....................57

         Section 3.11          Annual Statement as to Compliance................................................57

         Section 3.12          Annual Independent Public Accountants' Servicing Report..........................58

         Section 3.13          Access to Certain Documentation and Information Regarding the Loans..............58

         Section 3.14          [Reserved].......................................................................58

         Section 3.15          Sale of Defaulted Loans and REO Properties.......................................58

         Section 3.16          Delegation of Duties.............................................................59

         Section 3.17          [Reserved].......................................................................60

         Section 3.18          [Reserved].......................................................................60

                                        i
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

         Section 3.19          Appointment of a Special Servicer................................................60

         Section 3.20          Allocation of Realized Losses....................................................60

ARTICLE IV            PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES; STATEMENTS AND REPORTS..........................61

         Section 4.1           Distributions to Certificateholders..............................................61

         Section 4.2           Statements to Certificateholders.................................................62

         Section 4.3           Advances by the Servicer; Distribution Reports to the Trustee....................64

         Section 4.4           Nonrecoverable Advances..........................................................65

         Section 4.5           Foreclosure Reports..............................................................65

         Section 4.6           Adjustment of Servicing Fees with Respect to Payoffs.............................65

         Section 4.7           Prohibited Transactions Taxes and Other Taxes....................................65

         Section 4.8           Tax Administration...............................................................66

         Section 4.9           Equal Status of Servicing Fee....................................................66

         Section 4.10          Appointment of Paying Agent......................................................66

ARTICLE V             THE CERTIFICATES..........................................................................66

         Section 5.1           The Certificates.................................................................66

         Section 5.2           Certificates Issuable in Classes; Distributions of Principal and
                               Interest; Authorized Denominations...............................................72

         Section 5.3           Registration of Transfer and Exchange of Certificates............................73

         Section 5.4           Mutilated, Destroyed, Lost or Stolen Certificates................................73

         Section 5.5           Persons Deemed Owners............................................................74

         Section 5.6           Temporary Certificates...........................................................74

         Section 5.7           Book-Entry for Book-Entry Certificates...........................................74

         Section 5.8           Notices to Clearing Agency.......................................................75

         Section 5.9           Definitive Certificates..........................................................76

         Section 5.10          Office for Transfer of Certificates..............................................76

ARTICLE VI            THE DEPOSITOR AND THE SERVICER............................................................76

         Section 6.1           Liability of the Depositor and the Servicer......................................76

         Section 6.2           Merger or Consolidation of the Depositor or the Servicer.........................76

         Section 6.3           Limitation on Liability of the Servicer and Others...............................77

         Section 6.4           Servicer Not to Resign...........................................................77

         Section 6.5           Trustee Access...................................................................77

                                       ii
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

ARTICLE VII           DEFAULT...................................................................................78

         Section 7.1           Events of Default................................................................78

         Section 7.2           Other Remedies of Trustee........................................................80

         Section 7.3           Directions by Certificateholders and Duties of Trustee During Event of
                               Default..........................................................................80

         Section 7.4           Action upon Certain Failures of Servicer and upon Event of Default...............80

         Section 7.5           Appointment of Successor Servicer................................................80

         Section 7.6           Notification to Certificateholders...............................................82

ARTICLE VIII          CONCERNING THE TRUSTEE....................................................................82

         Section 8.1           Duties of Trustee................................................................82

         Section 8.2           Certain Matters Affecting Trustee................................................84

         Section 8.3           Trustee Not Required to Make Investigation.......................................85

         Section 8.4           Trustee Not Liable for Certificates or Loans.....................................85

         Section 8.5           Trustee May Own Certificates.....................................................86

         Section 8.6           Servicer to Pay Trustee's Fees and Expenses......................................86

         Section 8.7           Eligibility Requirements for Trustee.............................................86

         Section 8.8           Resignation and Removal of Trustee...............................................87

         Section 8.9           Successor Trustee................................................................87

         Section 8.10          Merger or Consolidation of Trustee...............................................88

         Section 8.11          Appointment of Co-Trustee or Separate Trustee....................................88

         Section 8.12          Appointment of Custodians........................................................89

         Section 8.13          Authenticating Agent.............................................................89

         Section 8.14          Bloomberg........................................................................90

         Section 8.15          Reports to Securities and Exchange Commission....................................90

         Section 8.16          [Reserved].......................................................................90

ARTICLE IX            TERMINATION...............................................................................91

         Section 9.1           Termination upon Purchase by the Depositor or Liquidation of All Loans...........91

         Section 9.2           Trusts Irrevocable...............................................................92

         Section 9.3           Additional Termination Requirements..............................................92

ARTICLE X             MISCELLANEOUS PROVISIONS..................................................................93

                                       iii
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

         Section 10.1          Amendment........................................................................93

         Section 10.2          Recordation of Agreement.........................................................94

         Section 10.3          Limitation on Rights of Certificateholders.......................................94

         Section 10.4          Governing Law; Jurisdiction......................................................95

         Section 10.5          Notices..........................................................................95

         Section 10.6          Severability of Provisions.......................................................96
</TABLE>

                                       iv
<PAGE>

                                    EXHIBITS

Exhibit A     -   Forms of Certificates
Exhibit B     -   Form of Residual Certificate
Exhibit C     -   [Reserved]
Exhibit D     -   Schedule of Loans
Exhibit E     -   Fields of Loan Information
Exhibit F     -   Form of Transferor Certificate for Privately Offered
                    Certificates
Exhibit G     -   Form of Transferee's Certificate for Privately Offered
                    Certificates
Exhibit H     -   [Reserved]
Exhibit I     -   Form of Transferor Certificate
Exhibit J     -   Form of Transferee Affidavit and Agreement
Exhibit K     -   Form of Additional Matter Incorporated into the Form of the
                    Certificates
Exhibit L     -   Form of Rule 144A Investment Representation
Exhibit M     -   [Reserved]
Exhibit N     -   [Reserved]
Exhibit O     -   Planned Principal Balances
Exhibit P     -   [Reserved]
Exhibit Q     -   Bloomberg Data
Exhibit R     -   Form of Special Servicing Agreement

                                        v
<PAGE>

         This Pooling and Servicing Agreement, dated and effective as of July 1,
2001 (this "Agreement"), is executed by and among ABN AMRO Mortgage Corporation,
as depositor (the "Depositor"), Washington Mutual Mortgage Securities Corp., as
servicer (the "Servicer"), and State Street Bank and Trust Company, as trustee
(the "Trustee"). Capitalized terms used in this Agreement and not otherwise
defined have the meanings ascribed to such terms in Article I hereof.

                              PRELIMINARY STATEMENT

         The Depositor at the Closing Date is the owner of the Loans and the
other property being conveyed by it to the Trustee for inclusion in the Trust
Fund. On the Closing Date, the Depositor will acquire the Certificates from the
Trust Fund as consideration for its transfer to the Trust Fund of the Loans and
certain other assets and will be the owner of the Certificates. The Depositor
has duly authorized the execution and delivery of this Agreement to provide for
the conveyance to the Trustee of the Loans and the issuance to the Depositor of
the Certificates representing in the aggregate the entire beneficial ownership
of the Trust Fund. All covenants and agreements made by the Depositor, the
Servicer and the Trustee herein with respect to the Loans and the other property
constituting the Trust Fund are for the benefit of the Holders from time to time
of the Certificates. The Depositor and the Servicer are entering into this
Agreement, and the Trustee is accepting the trust created hereby, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged.

         The Certificates issued hereunder, other than the Class B-3, Class B-4
and Class B-5 Certificates have been offered for sale pursuant to a Prospectus,
dated October 12, 1999, and a Prospectus Supplement, dated July 26, 2001 of the
Depositor (together, the "Prospectus"). The Class B-3, Class B-4 and Class B-5
Certificates have been offered for sale pursuant to a Private Placement
Memorandum dated July 27, 2001. The Trust Fund created hereunder is intended to
be the "Trust" as described in the Prospectus and the Private Placement
Memorandum and the Certificates are intended to be the "Certificates" described
therein.

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the Loans and other related assets in the Trust Fund
subject to this Agreement as a REMIC for federal income tax purposes, and such
segregated pool of assets will be designated as "REMIC I." Component R-1 of the
Class R Certificates will represent the sole class of "residual interests" in
REMIC I for purposes of the REMIC Provisions under federal income tax law.

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the REMIC I Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
"REMIC II." Component R-2 of the Class R Certificates will represent the sole
class of "residual interests" in REMIC II for purposes of the REMIC Provisions
under federal income tax law. The following table irrevocably sets forth the
designations, the Remittance Rate and initial Class Principal Balance for each
Class of Certificates which, together with the Class R-2 Component, constitute
the entire beneficial interests in REMIC II. Determined solely for purposes of
satisfying Treasury regulation section 1.860G-1(a)(4)(iii), the "latest possible
maturity date" for each of the REMIC I Regular Interests and for each Class of
Certificates shall be the first Distribution Date that is at least two years
after the end of the remaining amortization schedule of the Loan in the Mortgage
Pool that has,

                                       1
<PAGE>

as of the Closing Date, the longest remaining amortization schedule,
irrespective of its scheduled maturity. The following table sets forth the
designation, Remittance Rate, initial Class Principal Balance, and Last
Scheduled Distribution Date for each Class of Certificates comprising the
beneficial interests in REMIC II and the Class R Certificates:

                                          Initial Class
                                            Principal
                     Remittance            or Notional       Last Scheduled
 Designation          Rate (1)               Balance       Distribution Date*
 -----------        ------------           -----------     -----------------
 Class A-1             6.50%              $41,621,000.00     August 25, 2031
 Class A-2             6.75%(2)             1,541,519.00     August 25, 2031
 Class A-3             6.75%(3)             2,430,000.00     August 25, 2031
 Class A-4             6.75%               32,784,900.00     August 25, 2031
 Class A-5             6.75%               10,672,000.00     August 25, 2031
 Class A-6             6.75%               14,800,000.00     August 25, 2031
 Class A-7             6.50%                4,125,000.00     August 25, 2031
 Class A-8             7.00%                4,125,000.00     August 25, 2031
 Class A-9             6.75%              170,175,000.00     August 25, 2031
 Class A-10            6.75%                6,245,000.00     August 25, 2031
 Class A-11            6.75%               27,017,000.00     August 25, 2031
 Class A-12            6.75%               15,900,000.00     August 25, 2031
 Class A-13            6.75%                  228,000.00     August 25, 2031
 Class A-X             6.75%(4)               422,311.00     August 25, 2031
 Class A-P             (5)                  1,596,125.00     August 25, 2031
 Class M               6.75%                5,838,000.00     August 25, 2031
 Class B-1             6.75%                2,232,000.00     August 25, 2031
 Class B-2             6.75%                1,374,000.00     August 25, 2031
 Class B-3             6.75%                1,030,000.00     August 25, 2031
 Class B-4             6.75%                  515,000.00     August 25, 2031
 Class B-5             6.75%                  686,384.04     August 25, 2031
 Class R+              6.75%                     100 (6)     August 25, 2031

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

*        The Distribution Date in the month after the maturity date for the
         latest maturing Loan.
+        The Class R Certificates are entitled to receive the Residual
         Distribution Amount and Excess Liquidation Proceeds.
(1)      Interest distributed to the Certificates (other than the Principal Only
         Certificates) on each Distribution Date will have accrued during the
         preceding calendar month at the applicable per annum Remittance Rate.
(2)      The Class A-2 Certificates will accrue interest on the Class A-2
         Notional Amount (as defined herein).
(3)      On each Distribution Date prior to the Credit Support Depletion Date
         (as defined herein), an amount equal to the Class A-3 Accrual Amount
         will be added to the Class A-3 Class Principal Balance, and such amount
         will be distributed as principal to the Class A-3 Certificates and to
         other Classes of the Class A Certificates as described herein and will
         not be distributed as interest to the Class A-3 Certificates.

                                       2
<PAGE>

(4)      The Class A-X Certificates will accrue interest on the Class A-X
         Notional Amount (as defined herein).
(5)      The Class A-P Certificates will not be entitled to distributions of
         interest and will receive principal only in respect of the Loans with
         Pass-Through Rates that are less than 6.75% per annum.
(6)      The Class R Certificates will be comprised of two components, component
         R-1, which represents the sole residual interest in REMIC I (as defined
         herein), and component R-2, which represents the sole residual interest
         in REMIC II (as defined herein).

                                       3
<PAGE>

                               W I T N E S S E T H

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

ARTICLE I

                                   DEFINITIONS

         Whenever used herein, the following words and phrases, unless the
context otherwise requires, shall have the meanings specified in this Article:

         Accretion Directed Certificates: The Class A-1, Class A-3, Class A-5,
Class A-6, Class A-7, Class A-8 and Class A-10 Certificates.

         Accrual Certificates: The Class A-3 Certificates.

         Adjusted Lockout Percentage: For any Distribution Date prior to the
Distribution Date in August 2006 will equal 0%, and for any Distribution Date
thereafter will equal the Lockout Percentage.

         Advance: An Advance made by the Servicer pursuant to Section 4.3.

         Affiliate: 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
specified 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. The Trustee may obtain
and rely on an Officer's Certificate of the Servicer or the Depositor to
determine whether any Person is an Affiliate of such party.

         Aggregate Certificate Principal Balance: At any given time, the sum of
the then current Class Principal Balances of all Classes of Certificates.

         Agreement: This Pooling and Servicing Agreement and all amendments and
supplements hereto.

         ALTA: The American Land Title Association, or any successor.

         Anniversary: Each anniversary of the Cut-off Date.

         Appraised Value: The amount set forth in an appraisal made by or for
the mortgage originator in connection with its origination of each Loan.

         Assignment: An assignment of the Mortgage, notice of transfer or
equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction where the related Mortgaged

                                       4
<PAGE>

Property is located to reflect of record the sale and assignment of the Loan to
the Trustee, which assignment, notice of transfer or equivalent instrument may,
if permitted by law, be in the form of one or more blanket assignments covering
Mortgages secured by Mortgaged Properties located in the same county.

         Authenticating Agent: Any authenticating agent appointed by the Trustee
pursuant to Section 8.13.

         Authorized Denomination: With respect to the Certificates (other than
the Class A-6, Class A-7, Class A-8, Class A-10, Class A-11, Class A-12 and
Class R Certificates), an initial Certificate Principal Balance equal to $25,000
each and integral multiples of $1 in excess thereof, except with respect to the
Class B-5 Certificates, which may be issued in a different amount that is not a
multiple of $1. With respect to the Class A-6, Class A-7, Class A-8, Class A-10,
Class A-11 and Class A-12 Certificates, an initial Certificate Principal Balance
equal to $1,000 each and integral multiples of $1 in excess thereof. With
respect to the Class R Certificates, one or more Certificates with a total
Percentage Interest equal to 100%.

         Available Distribution Amount: With respect to the Loans, the sum of
the following amounts:

                  (1) the total amount of all cash received by or on behalf of
         the Servicer with respect to such Loans by the Determination Date for
         such Distribution Date and not previously distributed (including
         Liquidation Proceeds and Insurance Proceeds), except:

                           (a) all Prepaid Monthly Payments;

                           (b) all Curtailments received after the applicable
                  Prepayment Period (together with any interest payment received
                  with such prepayments to the extent that it represents the
                  payment of interest accrued on a related Loan subsequent to
                  the applicable Prepayment Period);

                           (c) all Payoffs received after the Payoff Period
                  immediately preceding such Distribution Date (together with
                  any interest payment received with such Payoffs to the extent
                  that it represents the payment of interest accrued on such
                  Loan for the period subsequent to the calendar month preceding
                  such Distribution Date and interest that was accrued and
                  received on Payoffs received during the period from the 1st to
                  the 14th calendar day of the month of such Distribution Date
                  which interest will not be included in the calculation of
                  Available Distribution Amount for any Distribution Date);

                           (d) Insurance Proceeds and Liquidation Proceeds on
                  such Loans received after the applicable Prepayment Period;

                           (e) all amounts in the Custodial Account for P & I
                  which are due and reimbursable to the Servicer pursuant to the
                  terms of this Agreement;

                           (f) the Servicing Fee for each such Loan; and

                                       5
<PAGE>

                           (g) Excess Liquidation Proceeds;

                  (2) to the extent advanced by the Servicer and not previously
         distributed, the amount of any Advance made by the Servicer to the
         Trustee with respect to such Distribution Date relating to such Loans;

                  (3) to the extent advanced by the Servicer and not previously
         distributed, any amount payable as Compensating Interest by the
         Servicer on such Distribution Date relating to such Loans; and

                  (4) the total amount, to the extent not previously
         distributed, of all cash received by the Distribution Date by the
         Trustee or the Servicer, in respect of a Purchase Obligation under
         Section 2.2 and Section 2.3 or any permitted repurchase of a Loan.

         Bankruptcy Coverage: As of the Cut-Off Date, $106,296, and thereafter,
the initial Bankruptcy Coverage amount of $106,296, less (a) any scheduled or
permissible reduction in the amount of Bankruptcy Coverage pursuant to this
definition and (b) Bankruptcy Losses allocated to the Certificates. The
Bankruptcy Coverage may be reduced upon written confirmation from each Rating
Agency that such reduction will not adversely affect the then current ratings
assigned to the Certificates by each Rating Agency.

         Bankruptcy Loss: A loss on a Loan arising out of (i) a reduction in the
scheduled Monthly Payment for such Loan by a court of competent jurisdiction in
a case under the United States Bankruptcy Code, other than any such reduction
that arises out of clause (ii) of this definition of "Bankruptcy Loss,"
including, without limitation, any such reduction that results in a permanent
forgiveness of principal, or (ii) with respect to any Loan, a valuation, by a
court of competent jurisdiction in a case under such Bankruptcy Code, of the
related Mortgaged Property in an amount less than the then outstanding Principal
Balance of such Loan.

         Beneficial Holder: A Person holding a beneficial interest in any
Book-Entry Certificate as or through a DTC Participant or an Indirect DTC
Participant or a Person holding a beneficial interest in any Definitive
Certificate.

         Book-Entry Certificates: The Class A Certificates, the Class M
Certificates, the Class B-1 Certificates and the Class B-2 Certificates
beneficial ownership and transfers of which shall be made through book entries
as described in Section 5.7.

         Business Day: Any day other than a Saturday, a Sunday, or a day on
which banking institutions in Chicago, Illinois, Boston, Massachusetts or New
York, New York, are authorized or obligated by law or executive order to be
closed.

         Certificate: Any one of the Certificates issued pursuant to this
Agreement, executed by the Trustee and authenticated by or on behalf of the
Trustee hereunder in substantially one of the forms set forth in Exhibits A and
B hereto. The additional matter appearing in Exhibit K shall be deemed
incorporated into Exhibits A and B as though set forth at the end of Exhibit A
and at the end of Exhibit B, as applicable.

                                       6
<PAGE>

         Certificate Account: The separate trust account created and maintained
with the Trustee or any other bank or trust company acceptable to each Rating
Agency which is incorporated or organized under the laws of the United States or
any state thereof, which account shall bear a designation clearly indicating
that the funds deposited therein are held in trust for the benefit of the
Trustee on behalf of the Certificateholders or any other account serving a
similar function acceptable to each Rating Agency. Funds in the Certificate
Account in respect of the Loans and amounts withdrawn from the Certificate
Account attributable to the Loans shall be accounted for separately. Funds on
deposit in the Certificate Account may be invested in Eligible Investments and
reinvestment earnings thereon shall be paid to the Servicer as additional
compensation. Funds deposited in the Certificate Account (exclusive of the
Servicing Fee) shall be held in trust for the Certificateholders and for the
uses and purposes set forth in Section 3.2, Section 3.3 and Section 4.1.

         Certificate Account Statement: With respect to the Certificate Account,
a statement delivered by the Servicer to the Trustee pursuant to Section 3.10.

         Certificate Distribution Amount: (I) For any Distribution Date prior to
the Credit Support Depletion Date, the Available Distribution Amount shall be
distributed to the Certificates in the following amounts and priority:

            (a) with respect to the Senior Certificates:

                (i)    first, to the Class A-P Certificates, the sum of the
                       Discount Fractional Principal Amounts for such
                       Distribution Date;

                (ii)   second, to the Senior Certificates (other than the
                       Principal Only Certificates), concurrently, the sum of
                       the Interest Distribution Amounts for such Classes of
                       Certificates remaining unpaid from previous Distribution
                       Dates, pro rata according to their respective shares of
                       such unpaid amounts; provided, however, that the
                       aggregate amount that would otherwise be payable to the
                       Accrual Certificates pursuant to this clause (I)(a)(ii)
                       will be paid instead as principal as described in clause
                       (I)(a)(iii)(b) of this definition of Certificate
                       Distribution Amount;

                (iii)  third, (a) to the Senior Certificates, concurrently, the
                       sum of the Interest Distribution Amounts for such Classes
                       (other than the Principal Only Certificates) of
                       Certificates for the current Distribution Date, pro rata
                       according to their respective Interest Distribution
                       Amounts;

                       (b)  the Class A-3 Accrual Amount as principal to the
                            Accretion Directed Certificates in the order of
                            priority set forth in clauses (I)(a)(iv)(b)i.a.
                            through (I)(a)(iv)(b)i.h. below;

                (iv)   fourth, to the Senior Certificates (other than the Class
                       A-P Certificates and the Interest Only Certificates), the
                       Senior Principal Amount as follows:

                                       7
<PAGE>

                       (a)  first, to the Class A-4 and Class A-13 Certificates,
                            pro rata, according to their outstanding Certificate
                            Principal Balances, up to the Lockout Priority
                            Amount, until their Class Principal Balances have
                            been reduced to zero;

                       (b)  second, concurrently as follows:

                              i.  28.2784058839% sequentially as follows:

                                    a.  first, to the Class A-1 Certificates, to
                                        the extent necessary to reduce their
                                        Class Principal Balance to their Planned
                                        Principal Balance set forth in Exhibit O
                                        attached hereto;

                                    b.  second, to the Class A-5 Certificates,
                                        to the extent necessary to reduce their
                                        Class Principal Balance to their Planned
                                        Principal Balance set forth in Exhibit O
                                        attached hereto;

                                    c.  third, to the Class A-6 Certificates,
                                        until their Class Principal Balance has
                                        been reduced to zero;

                                    d.  fourth, to the Class A-7 and Class A-8
                                        Certificates, pro rata, according to
                                        their outstanding Certificate Principal
                                        Balances, until their Class Principal
                                        Balances have been reduced to zero;

                                    e.  fifth, to the Class A-10 Certificates,
                                        until their Class Principal Balance has
                                        been reduced to zero;

                                    f.  sixth, to the Class A-5 Certificates,
                                        without regard to their Planned
                                        Principal Balances set forth in Exhibit
                                        O attached hereto, until their Class
                                        Principal Balance has been reduced to
                                        zero;

                                    g.  seventh, to the Class A-1 Certificates,
                                        without regard to their Planned
                                        Principal Balances set forth in
                                        Exhibit O attached hereto, until

                                       8
<PAGE>

                                        their Class Principal Balance has been
                                        reduced to zero;

                                    h.  eighth, to the Class A-3 Certificates,
                                        until their Class Principal Balance has
                                        been reduced to zero;

                              ii.  71.7215941161% sequentially as follows:

                                    a.  first, to the Class R Certificates,
                                        until their Class Principal Balance has
                                        been reduced to zero;

                                    b.  second, to the Class A-9 Certificates,
                                        until their Class Principal Balance has
                                        been reduced to zero;

                                    c.  third, to the Class A-11 Certificates,
                                        until their Class Principal Balance has
                                        been reduced to zero;

                                    d.  fourth, to the Class A-12 Certificates,
                                        until their Class Principal Balance has
                                        been reduced to zero;

                       (c)  third, to the Class A-4 and Class A-13 Certificates,
                            pro rata, according to their outstanding Certificate
                            Principal Balances, until their Class Principal
                            Balances have been reduced to zero;

                (v)    fifth, to the Class A-P Certificates, up to the
                       Subordinate Principal Amount (determined without regard
                       to the proviso of such definition) for such Distribution
                       Date, the sum of the Discount Fractional Principal
                       Shortfalls payable to the Class A-P Certificates on
                       previous Distribution Dates pursuant to clause (I)(a)(vi)
                       of this definition of "Certificate Distribution Amount"
                       and remaining unpaid from such previous Distribution
                       Dates; and

                (vi)   sixth, to the Class A-P Certificates, up to the
                       Subordinate Principal Amount (determined without regard
                       to the proviso of such definition) for such Distribution
                       Date (less any amounts distributed to the Class A-P
                       Certificates pursuant to paragraph (I)(a)(v)), the sum of
                       the Discount Fractional Principal Shortfalls for such
                       Distribution Date; provided that any amounts distributed
                       in respect of the Discount Fractional Principal Shortfall
                       pursuant to paragraph (I)(a)(v) or this paragraph
                       (I)(a)(vi) of this definition of

                                       9
<PAGE>

                       "Certificate Distribution Amount" shall not cause a
                       further reduction of the Class A-P Class Principal
                       Balance.

         (b) with respect to the Senior Certificates and Subordinate
     Certificates, on any Distribution Date prior to the Credit Support
     Depletion Date, to the extent of the Available Distribution Amount
     remaining:

             (i) first, to the Class M Certificates, the Interest Distribution
         Amount for such Class of Certificates remaining unpaid from previous
         Distribution Dates;

             (ii) second, to the Class M Certificates, the Interest Distribution
         Amount for such Class of Certificates for the current Distribution
         Date;

             (iii) third, to the Class M Certificates, the portion of the
         Subordinate Principal Amount allocable to such Class of Certificates
         pursuant to the definition of "Subordinate Principal Amount" herein,
         until the Class M Class Principal Balance has been reduced to zero;

             (iv) fourth, to the Class B-1 Certificates, the Interest
         Distribution Amount for such Class of Certificates remaining unpaid
         from previous Distribution Dates;

             (v) fifth, to the Class B-1 Certificates, the Interest Distribution
         Amount for such Class of Certificates for the current Distribution
         Date;

             (vi) sixth, to the Class B-1 Certificates, the portion of the
         Subordinate Principal Amount allocable to such Class of Certificates
         pursuant to the definition of "Subordinate Principal Amount" herein,
         until the Class B-1 Class Principal Balance has been reduced to zero;

             (vii) seventh, to the Class B-2 Certificates, the Interest
         Distribution Amount for such Class of Certificates remaining unpaid
         from previous Distribution Dates;

             (viii) eighth, to the Class B-2 Certificates, the Interest
         Distribution Amount for such Class of Certificates for the current
         Distribution Date;

             (ix) ninth, to the Class B-2 Certificates, the portion of the
         Subordinate Principal Amount allocable to such Class of Certificates
         pursuant to the definition of "Subordinate Principal Amount" herein,
         until the Class B-2 Class Principal Balance has been reduced to zero;

             (x) tenth, to the Class B-3 Certificates, the Interest Distribution
         Amount for such Class of Certificates remaining unpaid from previous
         Distribution Dates;

             (xi) eleventh, to the Class B-3 Certificates, the Interest
         Distribution Amount for such Class of Certificates for the current
         Distribution Date;

                                       10
<PAGE>

             (xii) twelfth, to the Class B-3 Certificates, the portion of the
         Subordinate Principal Amount allocable to such Class of Certificates
         pursuant to the definition of "Subordinate Principal Amount" herein,
         until the Class B-3 Class Principal Balance has been reduced to zero;

             (xiii) thirteenth, to the Class B-4 Certificates, the Interest
         Distribution Amount for such Class of Certificates remaining unpaid
         from previous Distribution Dates;

             (xiv) fourteenth, to the Class B-4 Certificates, the Interest
         Distribution Amount for such Class of Certificates for the current
         Distribution Date;

             (xv) fifteenth, to the Class B-4 Certificates, the portion of the
         Subordinate Principal Amount allocable to such Class of Certificates
         pursuant to the definition of "Subordinate Principal Amount" herein,
         until the Class B-4 Class Principal Balance has been reduced to zero;

             (xvi) sixteenth, to the Class B-5 Certificates, the Interest
         Distribution Amount for such Class of Certificates remaining unpaid
         from previous Distribution Dates;

             (xvii) seventeenth, to the Class B-5 Certificates, the Interest
         Distribution Amount for such Class of Certificates for the current
         Distribution Date;

             (xviii) eighteenth, to the Class B-5 Certificates, the portion of
         the Subordinate Principal Amount allocable to such Class of
         Certificates pursuant to the definition of "Subordinate Principal
         Amount" herein, until the Class B-5 Class Principal Balance has been
         reduced to zero;

             (xix) nineteenth, to the Senior Certificates and Subordinate
         Certificates in their order of seniority, the amount of unreimbursed
         Realized Losses previously allocated to such Class, if any, provided,
         that any amounts distributed in respect of losses pursuant to this
         paragraph (I)(b)(xix) of this definition of "Certificate Distribution
         Amount" shall not cause a further reduction in the Class Principal
         Balances of the Senior Certificates or Subordinate Certificates; and

             (xx) twentieth, to the Class R Certificates, the Residual
         Distribution Amount;

     (II) for any Distribution Date on or after the Credit Support Depletion
Date, the Available Distribution Amount remaining, shall be distributed to the
outstanding Senior Certificates in the following amounts and priority:

         (a) first, to the Class A-P Certificates, the sum of the Discount
     Fractional Principal Amounts for such Distribution Date;

         (b) second, to the Senior Certificates (including the Accrual
     Certificates, but excluding the Principal Only Certificates), previously
     unpaid and then current Interest

                                       11
<PAGE>

     Distribution Amounts, pro rata, according to such amount payable to the
     extent of amounts available;

         (c) third, to the Senior Certificates (other than the Interest Only
     Certificates and Class A-P Certificates), the Senior Principal Amount, pro
     rata, according to their respective Class Principal Balances (other than
     the Interest Only Certificates and Class A-P Certificates);

         (d) fourth, to the Senior Certificates, pro rata, according to their
     respective Class Principal Balances, the amount of unreimbursed Realized
     Losses previously allocated to such Class; and

         (e) fifth, to the Class R Certificates, the Residual Distribution
     Amount for such Distribution Date.

     Certificate Principal Balance: For each Certificate of any Class, the
portion of the related Class Principal Balance, if any, represented by such
Certificate.

     Certificate Register and Certificate Registrar: The register maintained and
the registrar appointed, respectively, pursuant to Section 5.3. Initially, the
Certificate Registrar shall be the Trustee.

     Certificateholder or Holder: The person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purposes of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor, the Servicer or any Affiliate thereof shall be deemed not
to be outstanding and the Percentage Interest evidenced thereby shall not be
taken into account in determining whether the requisite percentage of Percentage
Interests necessary to effect any such consent has been obtained; provided, that
the Trustee, the Certificate Registrar and the Paying Agent may conclusively
rely upon an Officer's Certificate to determine whether any Person is an
Affiliate of the Depositor or the Servicer.

     Certificateholders' Report: As defined in Section 4.2(a).

     Class: All Certificates having the same priority and rights to payments
from the Available Distribution Amount, designated as a separate Class, as set
forth in the forms of Certificates attached hereto as Exhibits A and B.

     Class A Certificates: The Class A-1, A-2, A-3, A-4, A-5, A-6, A-7, A-8,
A-9, A-10, A-11, A-12, A-13, A-X and A-P Certificates, collectively, and
designated as such on the face thereof in substantially the forms attached
hereto as Exhibits A-1 through A-15, respectively.

     Class A-2 Notional Amount: As of the Closing Date approximately $1,541,519,
and thereafter, an amount equal to 1/27th of the Class Principal Balance of the
Class A-1 Certificates.

     Class A-3 Accrual Amount: For any Distribution Date prior to the Credit
Support Depletion Date, an amount equal to the accrued interest that would
otherwise be distributable in respect of the Class A-3 Certificates on such
Distribution Date and which will be added to the Class A-3 Principal Balance.

                                       12
<PAGE>

     Class A-X Notional Amount: As of the Closing Date approximately $422,311,
and thereafter, with respect to any Distribution Date will equal the total
Principal Balance, as of the first day of the month preceding such Distribution
Date (after giving effect to all payments scheduled to be made on such
Distribution Date whether or not received), of the Premium Loans multiplied by
the following fraction:

              the weighted average of the Pass-Through Rates of the
           Premium Loans as of the first day of such month minus 6.75%
           -----------------------------------------------------------
                                      6.75%

     Class Notional Amount: With respect to the Class A-2 and Class A-X
Certificates, the Class A-2 Notional Amount and Class A-X Notional Amount,
respectively.

     Class Principal Balance: For any Class of Certificates (other than the
Interest Only Certificates), the applicable initial Class Principal Balance set
forth in the Preliminary Statement hereto, corresponding to the rights of such
Class in payments of principal due to be passed through to Certificateholders
from principal payments on the Loans, as reduced from time to time by (x)
distributions of principal to Certificateholders of such Class and (y) the
portion of Realized Losses allocated to the Class Principal Balance of such
Class pursuant to Section 3.20 with respect to a given Distribution Date. For
any Distribution Date, the reduction of the Class Principal Balance of any Class
of Certificates pursuant to Section 3.20 shall be deemed effective prior to the
determination and distribution of principal on such Class pursuant to the
definition of "Certificate Distribution Amount". Notwithstanding the foregoing,
the Class Principal Balance of the most subordinate Class of Certificates
outstanding at any time shall be equal to the aggregate Scheduled Principal
Balance of all of the Loans less the Class Principal Balance of all other
Classes of Certificates. The Class Principal Balance for the Class A-1
Certificates shall be referred to as the "Class A-1 Principal Balance", the
Class Principal Balance for the Class A-3 Certificates shall be referred to as
the "Class A-3 Principal Balance" and so on. The Class Principal Balances of the
Interest Only Certificates shall be zero.

     Class R Certificates: The Certificates designated as "Class R" on the face
thereof in substantially the form attached hereto as Exhibit B, that is composed
of Components R-1 and R-2 each of which has been designated as the sole class of
"residual interests" in REMIC I and REMIC II, respectively, pursuant to Section
2.1.

     Class R Certificateholders: The registered Holders of the Class R
Certificates.

     Clearing Agency: An organization registered as a "clearing agency" pursuant
to Section 17A of the Securities and Exchange Act of 1934, as amended, which
initially shall be DTC.

     Closing Date: July 27, 2001.

     Code: The Internal Revenue Code of 1986, as amended.

     Compensating Interest: For any Distribution Date, the lesser of (i) the sum
of (a) one-twelfth of 0.04% of the aggregate outstanding Principal Balance of
each Loan on the second Due

                                       13
<PAGE>

Date preceding such Distribution Date, (b) the aggregate Payoff Earnings and (c)
the aggregate Payoff Interest and (ii) the aggregate Uncollected Interest.

     Corporate Trust Office: The corporate trust office of the Trustee in the
Commonwealth of Massachusetts, at which at any particular time its corporate
trust business with respect to this Agreement shall be administered, which
office at the date of the execution of this Agreement has a principal address of
225 Franklin Street, Boston, MA 02110 Attention: Corporate Trust, ABN AMRO
2001-4.

     Credit Support Depletion Date: The first Distribution Date on which the
aggregate of the Class Principal Balances of the Subordinate Certificates has
been or will be reduced to zero as a result of principal distributions thereon
and the allocation of Realized Losses on such Distribution Date.

     Curtailment: Any payment of principal on a Loan, made by or on behalf of
the related Mortgagor, other than a Monthly Payment, a Prepaid Monthly Payment
or a Payoff, which is applied to reduce the outstanding Principal Balance of the
Loan.

     Curtailment Shortfall: With respect to any Curtailment applied with a
Monthly Payment, an amount equal to one month's interest on such Curtailment at
the applicable Pass-Through Rate on such Loan.

     Custodial Account for P&I: The custodial account for principal and interest
established and maintained by, or at the direction of, the Servicer and caused
by the Servicer to be established and maintained pursuant to Section 3.2(b) (i)
with the corporate trust department of the Trustee or another financial
institution approved by the Servicer such that the rights of such Servicer, the
Trustee and the Certificateholders thereto shall be fully protected against the
claims of any creditors of the Servicer and of any creditors or depositors of
the institution in which such account is maintained, (ii) within FDIC insured
accounts (or other accounts with comparable insurance coverage acceptable to
each Rating Agency) created and maintained, by or at the direction of the
Servicer, and monitored by the Servicer or (iii) in a separate non-trust account
without FDIC or other insurance in an Eligible Institution. In the event that a
Custodial Account for P&I is established pursuant to clause (ii) of the
preceding sentence, amounts held in such Custodial Account for P&I shall not
exceed the level of deposit insurance coverage on such account; accordingly,
more than one Custodial Account for P&I may be established.

     Custodial Agreement: The agreement, if any, between the Trustee and a
Custodian providing for the safekeeping of the Mortgage Files on behalf of the
Certificateholders.

     Custodian: A custodian which is appointed pursuant to a Custodial
Agreement. Any Custodian so appointed shall act as agent on behalf of the
Trustee, and shall be compensated by the Trustee.

     Cut-Off Date: July 1, 2001.

     Data: As defined in Section 8.14.

                                       14
<PAGE>

     Defaulted Loan: As of any Determination Date, any Loan for which any
payment of principal of or interest on such Loan is more than 89 days past due,
determined without giving effect to any grace period permitted by the related
Mortgage or Mortgage Note or any other document in the Mortgage File.

     Definitive Certificates: As defined in Section 5.7.

     Denomination: The amount specified on a Certificate as representing the
aggregate Principal Balance of the Loans as of the Cut-Off Date evidenced by
such Certificate.

     Depositor: ABN AMRO Mortgage Corporation, a Delaware corporation, or its
successor-in-interest.

     Depository: DTC or any successor thereto.

     Depository Agreement: The Letter of Representations, dated July 27, 2001 by
and among DTC, the Depositor and the Trustee.

     Determination Date: A day not later than the 10th day (or, if such 10th day
is not a Business Day, the Business Day immediately succeeding such 10th day)
preceding a related Distribution Date in the month in which such Distribution
Date occurs, as determined by the Servicer.

     Discount Fraction: For any Discount Loan, the following fraction:

               6.75% - the Pass-Through Rate on such Discount Loan
               ---------------------------------------------------
                                      6.75%

     Discount Fractional Principal Amount: On each Distribution Date, an amount
equal to the product of the Discount Fraction multiplied by the sum of (i)
scheduled payments of principal on each Discount Loan due on or before the
related Due Date in respect of which no distribution has been made on any
previous Distribution Date and which were received by the Determination Date, or
which have been advanced as part of an Advance with respect to such Distribution
Date, (ii) the principal portion received in respect of each Discount Loan
during the Prepayment Period of (a) Curtailments, (b) Insurance Proceeds, (c)
the amount, if any, of the principal portion of the Purchase Price pursuant to a
Purchase Obligation or any repurchase of a Discount Loan permitted hereunder and
(d) Liquidation Proceeds and (iii) the principal portion of Payoffs received in
respect of each Discount Loan during the applicable Payoff Period.

     Discount Fractional Principal Shortfall: For any Distribution Date, an
amount equal to the Discount Fraction of any Realized Loss on a Discount Loan,
other than a Special Hazard Loss, Fraud Loss or Bankruptcy Loss in excess of the
Special Hazard Coverage, Fraud Coverage or Bankruptcy Coverage, as applicable.

     Discount Loan: The Loans having Pass-Through Rates of less than 6.75%.

                                       15
<PAGE>

     Disqualified Organization: A "disqualified organization" as defined in
Section 860E(e)(5) of the Code, and, for purposes of Section 5.1 herein, as
defined in Section 5.1(b).

     Distribution Date: With respect to distributions on the Certificates, the
25th day (or, if such 25th day is not a Business Day, the Business Day
immediately succeeding such 25th day) of each month, with the first such date
being August 27, 2001. The "related Due Date" for any Distribution Date is the
Due Date immediately preceding such Distribution Date.

     DTC: The Depository Trust Company.

     DTC Participant: A broker, dealer, bank, other financial institution or
other Person for whom DTC effects book-entry transfers and pledges of securities
deposited with DTC.

     Due Date: The first day of each calendar month, which is the day on which
the Monthly Payment for each Loan is due.

     Eligible Account: Any account or accounts held and established by the
Servicer or the Trustee in trust for the Certificateholders at any Eligible
Institution.

     Eligible Institution: An institution having (i) the highest short-term debt
rating, and one of the two highest long-term debt ratings of each Rating Agency,
(ii) with respect to any Custodial Account for P&I, an unsecured long-term debt
rating of at least one of the two highest unsecured long-term debt ratings of
each Rating Agency, or (iii) the approval of each Rating Agency.

     Eligible Investments: Any one or more of the following obligations or
securities payable on demand or having a scheduled maturity on or before the
Business Day preceding the following Distribution Date, regardless of whether
issued by the Depositor, the Servicer, the Trustee or any of their respective
Affiliates and having at the time of purchase, or at such other time as may be
specified, the required ratings, if any, provided for in this definition:

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

         (b) Repurchase agreements on obligations described in clause (i) of
     this definition of "Eligible Investments", provided that the unsecured
     obligations of the party (including the Trustee in its commercial capacity)
     agreeing to repurchase such obligations have at the time one of the two
     highest short term debt ratings of each Rating Agency and provided that
     such repurchaser's unsecured long term debt has one of the two highest
     unsecured long term debt ratings of each Rating Agency;

         (c) Federal funds, certificates of deposit, time deposits and bankers'
     acceptances of any U.S. bank or trust company incorporated under the laws
     of the United States or any state (including the Trustee in its commercial
     capacity), provided that the debt obligations of such bank or trust company
     (or, in the case of the principal bank in a bank holding company system,
     debt obligations of the bank holding company) at the date

                                       16
<PAGE>

     of acquisition thereof have one of the two highest short term debt ratings
     of each Rating Agency and unsecured long term debt has one of the two
     highest unsecured long term debt ratings of each Rating Agency;

         (d) Obligations of, or obligations guaranteed by, any state of the
     United States or the District of Columbia, provided that such obligations
     at the date of acquisition thereof shall have the highest long-term debt
     rating available for such securities from each Rating Agency;

         (e) Commercial paper of any corporation incorporated under the laws of
     the United States or any state thereof, which on the date of acquisition
     has the highest commercial paper rating of each Rating Agency, provided
     that the corporation has unsecured long term debt that has one of the two
     highest unsecured long term debt ratings of each Rating Agency;

         (f) Securities (other than stripped bonds or stripped coupons) bearing
     interest or sold at a discount that are issued by any corporation
     incorporated under the laws of the United States or any state thereof and
     have the highest long-term unsecured rating available for such securities
     from each Rating Agency; provided, however, that securities issued by any
     such corporation will not be investments to the extent that investment
     therein would cause the outstanding principal amount of securities issued
     by such corporation that are then held as part of the Certificate Account
     to exceed 20% of the aggregate principal amount of all Eligible Investments
     then held in the Certificate Account;

         (g) Units of taxable money market funds (which may be 12b-1 funds, as
     contemplated under the rules promulgated by the Securities and Exchange
     Commission under the Investment Company Act of 1940), which funds have the
     highest rating available for such securities from each Rating Agency or
     which have been designated in writing by each Rating Agency as Eligible
     Investments; and;

         (h) Such other investments the investment in which will not, as
     evidenced by a letter from each Rating Agency, result in the downgrading or
     withdrawal of the Ratings;

provided, however, that such instrument continues to qualify as a "cash flow
investment" pursuant to Code Section 860G(a)(6) and that no instrument or
security shall be an Eligible Investment if (i) such instrument or security
evidences a right to receive only interest payments or (ii) the right to receive
principal and interest payments derived from the underlying investment provides
a yield to maturity in excess of 120% of the yield to maturity at par of such
underlying investment.

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

     Escrow Account: As defined in Section 3.4.

                                       17
<PAGE>

     Escrow Payment: Any payment received by the Servicer for the account of any
Mortgagor for application toward the payment of taxes, insurance premiums,
assessments and similar items in respect of the related Mortgaged Property.

     Event of Default: Any event of default as specified in Section 7.1.

     Excess Liquidation Proceeds: With respect to any Distribution Date, the
excess, if any, of aggregate Liquidation Proceeds in the applicable Prepayment
Period over the amount that would have been received if Payoffs had been made
with respect to such Loans on the dates such Liquidation Proceeds were received.

     Excess Loss: A Special Hazard Loss incurred on a Loan in excess of the
Special Hazard Coverage, a Fraud Loss incurred on a Loan in excess of the Fraud
Coverage and a Bankruptcy Loss incurred on a Loan in excess of the Bankruptcy
Coverage.

     Exchange Act: The Securities Exchange Act of 1934, as amended.

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

     Federal Funds Rate: means, for any day, the rate set forth in the weekly
statistical release designated as H.15(519), or any successor publication,
published by the Federal Reserve Bank of New York on the preceding Business Day
opposite the caption "Federal Funds (Effective)"; or, if for any relevant day
such rate is not so published on any such preceding Business Day, the rate for
such day will be the arithmetic mean as determined by the Trustee of the rates
for the last transaction in overnight Federal funds arranged before 9:00 a.m.
(New York City time) on that day by each of three leading brokers of Federal
funds transactions in New York City selected by the Trustee.

     FHA: Federal Housing Administration, or any successor thereto.

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

     Fitch: Fitch, Inc., provided, that at anytime it be a Rating Agency.

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

     Fraud Coverage: As of the Cut-Off Date approximately $3,433,945, and
thereafter, the Fraud Coverage will generally be equal to (1) prior to the third
Anniversary, an amount equal to 1.00% of the aggregate Principal Balance of all
Loans as of the Cut-Off Date minus the aggregate amounts allocated to the
Certificates with respect to Fraud Losses on the Loans up to such date of
determination and (2) from the third to the fifth Anniversary, an amount equal
to (a) 0.50% of the aggregate Principal Balance of all of the Loans as of the
Due Date of the calendar month preceding the most recent Anniversary minus (b)
the aggregate amounts allocated to the Certificates with respect to Fraud Losses
on the Loans since the most recent Anniversary up to such date of determination.
On and after the fifth Anniversary, the Fraud Coverage will be zero. Fraud
Coverage may be reduced upon written confirmation from each Rating Agency that
such reduction will not adversely affect the then current ratings assigned to
the Certificates by each Rating Agency.

                                       18
<PAGE>

     Fraud Loss: The occurrence of a loss on a Loan arising from any action,
event or state of facts with respect to such Loan which, because it involved or
arose out of any dishonest, fraudulent, criminal, negligent or knowingly
wrongful act, error or omission by the Mortgagor, originator (or assignee
thereof) of such Loan, Lender, or the Servicer, would result in an exclusion
from, denial of, or defense to coverage which otherwise would be provided by an
insurance policy previously issued with respect to such Loan.

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

     Indirect DTC Participants: Entities such as banks, brokers, dealers or
trust companies that clear through or maintain a custodial relationship with a
DTC Participant, either directly or indirectly.

     Installment Due Date: The first day of the month in which the related
Distribution Date occurs.

     Insurance Proceeds: Amounts paid or payable by the insurer under any
insurance policy (including any replacement policy permitted under this
Agreement), covering any Loan or Mortgaged Property, including, without
limitation, any flood insurance policy, primary mortgage insurance policy or
hazard insurance policy required pursuant to Section 3.5, any title insurance
policy required pursuant to Section 2.3, and any FHA insurance policy or VA
guaranty.

     Interest Accrual Period: For all Classes of Certificates, the calendar
month preceding the month in which the Distribution Date occurs.

     Interest Distribution Amount: On any Distribution Date, for any Class of
Certificates (other than the Principal Only Certificates), the amount of
interest accrued on the respective Class Principal Balance or Class Notional
Amount, as applicable, at 1/12th of the related Remittance Rate for such Class
during the applicable Interest Accrual Period, before giving effect to
allocations of Realized Losses in connection with such Distribution Date or
distributions to be made on such Distribution Date, reduced by Uncompensated
Interest Shortfall and the interest portion of Realized Losses allocated to such
Class pursuant to the definition of "Uncompensated Interest Shortfall" and
Section 3.20; provided, however, that in the case of the Class A-3 Certificates,
such amount shall be reduced by the Class A-3 Accrual Amount. The Interest
Distribution Amount for the Principal Only Certificates on any Distribution Date
shall equal zero.

     Interest Only Certificates: The Class A-2 and Class A-X Certificates.

     Interested Person: The Depositor, the Servicer, any Holder of a
Certificate, or any Affiliate of any such Person.

     Junior Subordinate Certificates: The Class B-3, B-4 and B-5 Certificates,
collectively.

                                       19
<PAGE>

     Liquidated Loan: A Loan as to which the Servicer has determined in
accordance with its customary servicing practices that all amounts which it
expects to recover from or on account of such Loan, whether from Insurance
Proceeds, Liquidation Proceeds or otherwise, have been recovered. For purposes
of this definition, acquisition of a Mortgaged Property by the Trust Fund shall
not constitute final liquidation of the related Loan.

     Liquidation Expenses: Reasonable out of pocket expenses incurred by the
Servicer in connection with the liquidation of any Defaulted Loan or property
acquired in respect thereof, including, without limitation, legal fees and
expenses, any unreimbursed amount expended by the Servicer pursuant to Section
3.7 respecting the related Loan and any unreimbursed expenditures for real
property taxes or for property restoration or preservation relating to the
Mortgaged Property that secured such Loan.

     Liquidation Principal: The principal portion of Liquidation Proceeds
received with respect to each Loan which became a Liquidated Loan (but not in
excess of the Principal Balance thereof) during the applicable Prepayment
Period, exclusive of the Discount Fraction of Liquidation Proceeds received with
respect to each Discount Loan, if any.

     Liquidation Proceeds: Amounts after deduction of amounts reimbursable under
Section 3.7 received and retained in connection with the liquidation of
Defaulted Loans (including the disposition of REO Property), whether through
foreclosure or otherwise, other than Insurance Proceeds.

     Loans: The Mortgages and the related Mortgage Notes, each transferred and
assigned to the Trustee pursuant to the provisions hereof as from time to time
are held as part of the Trust Fund, as so identified in the Loan Schedule.

     Each of the Loans is referred to individually in this Agreement as a
"Loan."

     Loan Schedule: The schedule, as amended from time to time, of Loans
attached hereto as Exhibit D, which shall set forth as to each Loan the
following, among other things:

         (i)      the loan number of the Loan and name of the related Mortgagor;

         (ii)     the street address of the Mortgaged Property including city,
                  state and zip code;

         (iii)    the Mortgage Interest Rate as of the Cut-Off Date;

         (iv)     the original term and maturity date of the related Mortgage
                  Note;

         (v)      the original Principal Balance;

         (vi)     the first payment date;

         (vii)    the Monthly Payment in effect as of the Cut-Off Date;

         (viii)   the date of the last paid installment of interest;

                                       20
<PAGE>

         (ix)     the unpaid Principal Balance as of the close of business on
                  the Cut-Off Date;

         (x)      the Loan-to-Value ratio at origination;

         (xi)     the type of property and the Original Value of the Mortgaged
                  Property;

         (xii)    whether a primary mortgage insurance policy is in effect as of
                  the Cut-Off Date;

         (xiii)   the nature of occupancy at origination;

         (xiv)    the servicing fee;

         (xv)     the county in which Mortgaged Property is located, if
                  available; and

         (xvi)    the closing date.

     Loan-to-Value Ratio: The original principal amount of a Loan divided by the
Original Value; however, references to "current Loan-to-Value Ratio" shall mean
the then current Principal Balance of a Loan divided by the Original Value.

     Lockout Liquidation Amount: The aggregate, for each Loan which became a
Liquidated Loan during the calendar month preceding the month of the
Distribution Date, of the lesser of (i) the Adjusted Lockout Percentage of the
Principal Balance of such Loan (exclusive of the Discount Fraction thereof, if
applicable) and (ii) the Lockout Prepayment Percentage of the Liquidation
Principal with respect to such Loan.

     Lockout Percentage: For any Distribution Date, an amount (which cannot
exceed 100%) equal to the sum of the Class Principal Balances of the Class A-4
and Class A-13 Certificates divided by the sum of the Class Principal Balances
of the Senior Certificates (other than the Principal Only Certificates)
immediately preceding the Distribution Date.

     Lockout Prepayment Percentage: For any Distribution Date will equal the
product of (i) the Lockout Percentage and (ii) the Step Down Percentage.

     Lockout Priority Amount: For any Distribution Date will equal the sum of
(i) the Adjusted Lockout Percentage of the Senior Percentage of the Principal
Payment Amount (exclusive of the portion attributable to the sum of the Discount
Fractional Principal Amounts for such Distribution Date); (ii) the Lockout
Prepayment Percentage of the Senior Prepayment Percentage of the Principal
Prepayment Amount (exclusive of the portion attributable to the sum of the
Discount Fractional Principal Amounts for such Distribution Date); and (iii) the
Lockout Liquidation Amount.

     Monthly Payment: The scheduled payment of principal and interest on a Loan
which is due on the related Due Date for such Loan after giving effect to any
reduction in the amount of interest collectible from any Mortgagor pursuant to
the Relief Act.

                                       21
<PAGE>

     Moody's: Moody's Investors Service, Inc. provided, that at any time it be a
Rating Agency.

     Mortgage: The mortgage, deed of trust or other instrument securing a
Mortgage Note.

     Mortgage File: As defined in Section 2.1.

     Mortgage Interest Rate: For any Loan, the per annum rate at which interest
accrues on such Loan pursuant to the terms of the related Mortgage Note without
regard to any reduction thereof as a result of the Relief Act.

     Mortgage Note: The note or other evidence of indebtedness evidencing the
indebtedness of a Mortgagor under a Loan.

     Mortgage Pool: All of the Loans.

     Mortgaged Property: With respect to any Loan, the real property, together
with improvements thereto, securing the indebtedness of the Mortgagor under the
related Loan.

     Mortgagor: The obligor on a Mortgage Note.

     Nonrecoverable Advance: With respect to any Loan, any Advance which the
Servicer shall have determined to be a Nonrecoverable Advance pursuant to
Section 4.4 and which was, or is proposed to be, made by such Servicer.

     Non-U.S. Person: A Person that is not a U.S. Person.

     Officer's Certificate: With respect to any Person, a certificate signed by
the Chairman of the Board, the President or a Vice-President of such Person (or,
in the case of a Person which is not a corporation, signed by the person or
persons having like responsibilities), and delivered to the Trustee.

     Opinion of Counsel: A written opinion of counsel, who may be outside or
salaried counsel for the Depositor or the Servicer, or any Affiliate of the
Depositor or the Servicer, acceptable to the Trustee; provided, that with
respect to REMIC matters, matters relating to the determination of Eligible
Accounts or matters relating to transfers of Certificates, such counsel shall be
Independent.

     Original Value: With respect to any Loan other than a Loan originated for
the purpose of refinancing an existing mortgage debt, the lesser of (a) the
Appraised Value (if any) of the Mortgaged Property at the time the Loan was
originated or (b) the purchase price paid for the Mortgaged Property by the
Mortgagor. With respect to a Loan originated for the purpose of refinancing
existing mortgage debt, the Original Value shall be equal to the Appraised Value
of the Mortgaged Property at the time the Loan was originated or the appraised
value at the time the refinanced mortgage debt was incurred.

     OTS: The Office of Thrift Supervision, or any successor thereto.

                                       22
<PAGE>

     Ownership Interest: As defined in Section 5.1(b).

     Pass-Through Entity: As defined in Section 5.1(b).

     Pass-Through Rate: For each Loan and for any date of determination, a per
annum rate equal to the Mortgage Interest Rate for such Loan less the applicable
per annum percentage rate of the Servicing Fee. For each Loan, any calculation
of monthly interest at such rate shall be based upon annual interest at such
rate (computed on the basis of a 360-day year of twelve 30-day months) on the
unpaid Principal Balance of the related Loan divided by twelve, and any
calculation of interest at such rate by reason of a Payoff shall be based upon
annual interest at such rate on the outstanding Principal Balance of the related
Loan multiplied by a fraction, the numerator of which is the number of days
elapsed from the Due Date of the last scheduled payment of principal and
interest to, but not including, the date of such Payoff, and the denominator of
which is (a) for Payoffs received on a Due Date, 360, and (b) for all other
Payoffs, 365.

     Paying Agent: As defined in Section 4.10.

     Payoff: Any Mortgagor payment of principal on a Loan equal to the entire
outstanding Principal Balance of such Loan, if received in advance of the last
scheduled Due Date for such Loan and accompanied by an amount of interest equal
to accrued unpaid interest on the Loan to the date of such payment-in-full.

     Payoff Earnings: For any Distribution Date with respect to each Loan on
which a Payoff was received by the Servicer during the Payoff Period, the
aggregate of the interest earned by Servicer from investment of each such Payoff
from the date of receipt of such Payoff until the Business Day immediately
preceding the Distribution Date (net of investment losses).

     Payoff Interest: For any Distribution Date with respect to a Loan for which
a Payoff was received on or after the first calendar day of the month of such
Distribution Date and before the 15th calendar day of such month, an amount of
interest thereon at the applicable Pass-Through Rate from the first day of the
month of distribution through the day of receipt thereof; to the extent
(together with Payoff Earnings and the Servicing Fee) not required to be
distributed as Compensating Interest on such Distribution Date, Payoff Interest
shall be payable to the Servicer as additional servicing compensation.

     Payoff Period: For the first Distribution Date, the period from the Cut-Off
Date through August 14, 2001, inclusive; and for any Distribution Date
thereafter, the period from the 15th day of the applicable calendar month
preceding such Distribution Date through the 14th day of the month of such
Distribution Date, inclusive.

     Percentage Interest: (a) With respect to the right of each Certificate of a
particular Class in the distributions allocated to such Class, "Percentage
Interest" shall mean the percentage undivided beneficial ownership interest
evidenced by such Certificate of such Class, which percentage shall equal:

                                       23
<PAGE>

         (i) with respect to any Regular Interest Certificate (other than the
     Interest Only Certificates), its Certificate Principal Balance divided by
     the applicable Class Principal Balance;

         (ii) with respect to the Interest Only Certificates, the portion of the
     respective Class Notional Amount evidenced by such Certificate divided by
     the respective Class Notional Balance; and

         (iii) with respect to the Class R Certificates, the percentage set
     forth on the face of each such Certificate.

     (b) With respect to the rights of each Certificate in connection with
Sections 5.9, 7.1, 7.3, 8.3 and 10.1, "Percentage Interest" shall mean the
percentage undivided beneficial interest evidenced by such Certificate in the
Trust Fund, which for purposes of such rights only shall equal:

         (i) with respect to any Certificate (other than the Interest Only
     Certificates), the product of (x) 98.00% and (y) the percentage calculated
     by dividing its Certificate Principal Balance by the Aggregate Certificate
     Principal Balance; provided, however, that the product in (x) above shall
     be increased by one percent (1%) upon each retirement of an Interest Only
     Certificate;

         (ii) with respect to each Interest Only Certificate, one percent (1%)
     of such Certificate Percentage Interest as calculated by paragraph (a)(ii)
     of this definition; and

         (iii) with respect to the Class R Certificates, zero.

     Permitted Transferee: With respect to the holding or ownership of any
Residual Certificate, any Person other than (i) the United States, a State or
any political subdivision thereof, or any agency or instrumentality of any of
the foregoing, (ii) a foreign government or International Organization, or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Code Section 521) which is
exempt from the taxes imposed by Chapter 1 of the Code (unless such organization
is subject to the tax imposed by Section 511 of the Code on unrelated business
taxable income), (iv) rural electric and telephone cooperatives described in
Code Section 1381(a)(2)(C), (v) any electing large partnership under Section 775
of the Code, (vi) any Person from whom the Trustee or the Certificate Registrar
has not received an affidavit to the effect that it is not a "disqualified
organization" within the meaning of Section 860E(e)(5) of the Code, and (vii)
any other Person so designated by the Depositor based upon an Opinion of Counsel
that the transfer of an Ownership Interest in a Residual Certificate to such
Person may cause the Trust Fund to fail to qualify as a REMIC at any time that
the Certificates are outstanding. The terms "United States," "State" and
"International Organization" shall have the meanings set forth in Code Section
7701 or successor provisions. A corporation shall not be treated as an
instrumentality of the United States or of any State or political subdivision
thereof if all of its activities are subject to tax, and, with the exception of
the FHLMC, a majority of its board of directors is not selected by such
governmental unit.

                                       24
<PAGE>

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

     Plan: As defined in Section 5.1(d).

     Planned Principal Balance: For any Distribution Date, the amount set forth
in the table attached hereto as Exhibit O for such Distribution Date, for the
Class Principal Balance of the Class A-1 Certificates and the Class Principal
Balance of the Class A-5 Certificates.

     Premium Loans: The Loans having Pass-Through Rates in excess of 6.75% per
annum.

     Prepaid Monthly Payment: Any Monthly Payment received prior to its
scheduled Due Date, which is intended to be applied to a Loan on its scheduled
Due Date and held in the related Custodial Account for P&I until the Withdrawal
Date following its scheduled Due Date.

     Prepayment Period: The calendar month immediately preceding any
Distribution Date.

     Principal Balance: At the time of any determination, the principal balance
of a Loan remaining to be paid at the close of business on the Cut-Off Date,
after deduction of all principal payments due on or before the Cut-Off Date
whether or not paid, reduced by all amounts distributed or to be distributed to
Certificateholders through the Distribution Date in the month of determination
that are reported as allocable to principal of such Loan.

     In the case of a Substitute Loan, "Principal Balance" shall mean, at the
time of any determination, the principal balance of such Substitute Loan
transferred to the Trust Fund on the date of substitution, reduced by all
amounts distributed or to be distributed to Certificateholders through the
Distribution Date in the month of determination that are reported as allocable
to principal of such Substitute Loan.

     The Principal Balance of a Loan (including a Substitute Loan) shall not be
adjusted solely by reason of any bankruptcy or similar proceeding or any
moratorium or similar waiver or grace period. Whenever a Realized Loss has been
incurred with respect to a Loan during a calendar month, the Principal Balance
of such Loan shall be reduced by the amount of such Realized Loss as of the
Distribution Date next following the end of such calendar month after giving
effect to the allocation of Realized Losses and distributions of principal to
the Certificates.

     Principal Only Certificates: The Class A-P Certificates.

     Principal Payment: Any payment of principal on a Loan other than a
Principal Prepayment.

     Principal Payment Amount: On any Distribution Date, the sum of (i) the
scheduled principal payments on the Loans due on the related Due Date, (ii) the
principal portion of repurchase proceeds received with respect to any Loan which
was repurchased by the Depositor pursuant to a Purchase Obligation or as
permitted by this Agreement prior to such Distribution Date, and (iii) any other
unscheduled payments of principal which were received with respect to

                                       25
<PAGE>

any Loan during the applicable Prepayment Period, other than Payoffs,
Curtailments and Liquidation Principal.

     Principal Prepayment: Any payment of principal on a Loan which constitutes
a Payoff or a Curtailment.

     Principal Prepayment Amount: On any Distribution Date, the sum of (i)
Curtailments received during the applicable Prepayment Period and (ii) Payoffs
received during the applicable Payoff Period.

     Pro Rata Allocation: The allocation of the principal portion of certain
losses relating to a Loan to the Senior Certificates (other than the Class A-P
Certificates and the Interest Only Certificates) and/or to the Subordinate
Certificates, as applicable, pro rata according to their respective Certificate
Principal Balances or, in the case of any Accrual Certificates, the Certificate
Principal Balance of that Accrual Certificate on the Closing Date, if lower
(except (1) if the loss is recognized with respect to a Discount Loan, in which
event the Discount Fraction of such loss will be allocated to the Class A-P
Certificates, and the remainder of such loss will be allocated as described
above in this definition without regard to this parenthetical and (2) all losses
allocable to the Class A-12 Certificates will be allocated to the Class A-13
Certificates until the Class A-13 Class Principal Balance has been reduced to
zero) in reduction thereof, and the allocation of the interest portion of such
losses to the Certificates (other than the Class A-P Certificates), pro rata
according to the amount of interest accrued but unpaid on each such Class in
reduction thereof and then pro rata according to their outstanding Certificate
Principal Balances or, in the case of the Accrual Certificates, the Certificate
Principal Balance of that Accrual Certificate on the Closing Date, if lower
(except all losses attributable to interest allocable to the Class A-12
Certificates will be allocated to the Class A-13 Certificates until the Class
A-13 Class Principal Balance has been reduced to zero), in reduction thereof.

     Purchase Obligation: An obligation of the Depositor to repurchase Loans
under the circumstances and in the manner provided in Section 2.2 or Section
2.3.

     Purchase Price: With respect to any Loan to be purchased pursuant to a
Purchase Obligation, or any Loan to be purchased or repurchased relating to an
REO Property, an amount equal to the sum of the Principal Balance thereof, plus
accrued and unpaid interest thereon, if any, to the last day of the calendar
month in which the date of repurchase occurs at a rate equal to the applicable
Pass-Through Rate; provided, however, that no Loan shall be purchased or
required to be purchased pursuant to Section 2.3, or more than two years after
the Closing Date under Section 2.2, unless (a) the Loan to be purchased is in
default, or default is in the judgment of the Depositor reasonably imminent, or
(b) the Depositor, at its expense, delivers to the Trustee an Opinion of Counsel
to the effect that the purchase of such Loan will not give rise to a tax on a
prohibited transaction, as defined in Section 860F(a) of the Code; provided,
further, that in the case of clause (b) above, the Depositor will use its
reasonable efforts to obtain such Opinion of Counsel if such opinion is
obtainable.

     Rating Agency: Initially, each of Moody's and Fitch; thereafter, each
nationally recognized statistical rating organization that has rated the
Certificates at the request of the Depositor, or their respective successors in
interest.

                                       26
<PAGE>

     Ratings: As of any date of determination, the ratings, if any, of the
Certificates as assigned by each Rating Agency.

     Realized Loss: For any Distribution Date, with respect to any Loan which
became a Liquidated Loan during the related applicable Prepayment Period, the
sum of (i) the principal balance of such Loan remaining outstanding and the
principal portion of Nonrecoverable Advances actually reimbursed with respect to
such Loan (the principal portion of such Realized Loss), and (ii) the accrued
interest on such Loan remaining unpaid and the interest portion of
Nonrecoverable Advances actually reimbursed with respect to such Loan (the
interest portion of such Realized Loss). For any Distribution Date, with respect
to any Loan which is not a Liquidated Loan, the amount of the Bankruptcy Loss
incurred with respect to such Loan as of the related Due Date will be treated as
a Realized Loss.

     Record Date: The last Business Day of the month immediately preceding the
month of the related Distribution Date.

     Regular Interest Certificates: The Certificates, other than the Class R
Certificates.

     Relief Act: The Soldiers' and Sailors' Civil Relief Act of 1940, as
amended.

     Relief Act Interest Shortfall: With respect to any Distribution Date and
Loan, any reduction in the amount of interest collectible on such Loan for the
most recently ended calendar month immediately preceding such Distribution Date
as a result of the application of the Relief Act.

     REMIC: A real estate mortgage investment conduit, as such term is defined
in the Code.

     REMIC I: The pool of assets (other than any Escrow Account or Accounts)
consisting of the Trust Fund.

     REMIC I Regular Interests: The regular interests in REMIC I as described in
Section 2.4 of this Agreement.

     REMIC II: The pool of assets consisting of the REMIC I Regular Interests
and all payments of principal or interest on or with respect to the REMIC I
Regular Interests after the Cut-Off Date.

     REMIC Provisions: Sections 860A through 860G of the Code, related Code
provisions and regulations promulgated thereunder, as the foregoing may be in
effect from time to time.

     Remittance Rate: For each Class of interest bearing Certificates, the per
annum rate set forth as the Remittance Rate for such Class in the Preliminary
Statement hereto.

     REO Property: A Mortgaged Property, title to which has been acquired by the
Servicer on behalf of the Trust Fund through foreclosure, deed in lieu of
foreclosure or otherwise.

     Residual Certificates: The Class R Certificates, which are being issued in
a single class. Components R-1 and R-2 of the Class R Certificates are hereby
each designated the sole Class of

                                       27
<PAGE>

"residual interests" in REMIC I and REMIC II, respectively, for purposes of
Section 860G(a)(2) of the Code.

     Residual Distribution Amount: On any Distribution Date, any portion of the
Available Distribution Amount remaining after all distributions to the
Certificates pursuant to the definition of Certificate Distribution Amount
(including the Class R Certificates only to the extent of any distributions to
the Class R Certificates pursuant to clause (I)(a)(iv)(b)ii.a. of such
definition). Upon termination of the obligations created by this Agreement and
the Trust Fund created hereby, the amounts which remain on deposit in the
Certificate Account after payment to the Certificateholders of the amounts set
forth in Section 9.1 of this Agreement, and subject to the conditions set forth
therein.

     Responsible Officer: When used with respect to the Trustee, any officer
assigned to and working in its Corporate Trust Department or similar group, 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. When used with respect to the Servicer or the Seller, the
Chairman or Vice-Chairman of the Board of Directors, the Chairman or
Vice-Chairman of the Executive or Standing Committee of the Board of Directors,
the President, any Vice-President, the Secretary, any Assistant Secretary, the
Treasurer, any Assistant Treasurer, the Controller and any Assistant Controller
or any other officer of the Servicer 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. When used with respect to the Depositor or any other Person, the
Chairman or Vice-Chairman of the Board of Directors, the Chairman or
Vice-Chairman of any executive committee of the Board of Directors, the
President, any Vice-President, the Secretary, any Assistant Secretary, the
Treasurer, any Assistant Treasurer, or any other officer of the Depositor
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.

     Scheduled Principal Balance: With respect to any Loan as of any
Distribution Date, the unpaid principal balance of such Loan as specified in the
amortization schedule at the time relating thereto (before any adjustment to
such schedule by reason of bankruptcy or similar proceeding or any moratorium or
similar waiver or grace period) as of the first day of the month preceding the
month of such Distribution Date, after giving effect to any previously applied
Curtailments, the payment of principal due on such first day of the month and
any reduction of the principal balance of such Loan by a bankruptcy court,
irrespective of any delinquency in payment by the related Mortgagor.

     Securities Act: The Securities Act of 1933, as amended.

     Seller: Washington Mutual Mortgage Securities Corp.

     Senior Certificates: The Class A and Class R Certificates, collectively.

                                       28
<PAGE>

     Senior Liquidation Amount: The aggregate, for each Loan which became a
Liquidated Loan during the applicable Prepayment Period, of the lesser of: (i)
the Senior Percentage of the Principal Balance of such Loan (exclusive of the
Discount Fraction thereof, if applicable), and (ii) the Senior Prepayment
Percentage of the Liquidation Principal with respect to such Loan.

     Senior Percentage: As of the Closing Date, approximately 96.58%, and
thereafter, with respect to any Distribution Date, the sum of the Class
Principal Balances of the Senior Certificates (other than the Class A-P
Certificates) divided by aggregate Scheduled Principal Balance of all Loans
(reduced by the Discount Fraction of the Discount Loans), in each case
immediately prior to such Distribution Date.

     Senior Prepayment Percentage: (i) On any Distribution Date occurring before
the Distribution Date in the month of August 2006, 100%; (ii) on any other
Distribution Date on which the Senior Percentage for such Distribution Date
exceeds the initial Senior Percentage as of the Cut-Off Date, 100%; and (iii) on
any other Distribution Date in each of the months of August 2006 and thereafter,
100%, unless:

         (a) the mean aggregate Principal Balance of the Loans which are 60 or
     more days delinquent (including loans in foreclosure and property held by
     the Trust Fund) for each of the immediately preceding six calendar months
     is less than or equal to 50% of the Subordinate Amount as of such
     Distribution Date, and

         (b) cumulative Realized Losses on the Loans allocated to the
     Subordinate Certificates are less than or equal to the following amounts:

<TABLE>
<CAPTION>
                                                                          PERCENTAGE OF THE SUBORDINATE
         DISTRIBUTION DATE OCCURRING IN                                   AMOUNT AS OF THE CUT-OFF DATE
         ------------------------------                                   -----------------------------
        <S>                                                                          <C>
         August 2006 through July 2007...............................                  30%
         August 2007 through July 2008...............................                  35%
         August 2008 through July 2009...............................                  40%
         August 2009 through July 2010...............................                  45%
         August 2010 and thereafter..................................                  50%
</TABLE>

     in which case, the Senior Prepayment Percentage shall be as follows:

<TABLE>
<CAPTION>

         DISTRIBUTION DATE OCCURRING IN                        SENIOR PREPAYMENT PERCENTAGE
         ------------------------------                       ----------------------------
        <S>                                         <C>
         August 2001 through July 2006.............  100%
         August 2006 through July 2007.............  SENIOR PERCENTAGE + 70% of SUBORDINATE PERCENTAGE
         August 2007 through July 2008.............  SENIOR PERCENTAGE + 60% of SUBORDINATE PERCENTAGE
         August 2008 through July 2009.............  SENIOR PERCENTAGE + 40% of SUBORDINATE PERCENTAGE
         August 2009 through July 2010.............  SENIOR PERCENTAGE + 20% of SUBORDINATE PERCENTAGE
         August 2010 and thereafter................  SENIOR PERCENTAGE
</TABLE>

     If on any Distribution Date the allocation to the Senior Certificates
(other than the Class A-P Certificates) of Principal Prepayments in the
percentage required would reduce the sum of the Class Principal Balances of the
Senior Certificates (other than the Class A-P Certificates) below zero, the
Senior Prepayment Percentage for such Distribution Date shall be limited to the
percentage necessary to reduce such sum to zero. Notwithstanding the foregoing,
however, on

                                       29
<PAGE>

each Distribution Date, the Class A-P Certificates will receive the Discount
Fraction of all principal payments, including, without limitation, Principal
Prepayments, received in respect of each Discount Loan.

     Senior Principal Amount: For any Distribution Date, an amount equal to the
sum of (a) the Senior Percentage of the Principal Payment Amount for the Loans
(exclusive of the portion thereof included in the sum of the Discount Fractional
Principal Amounts for such Distribution Date), (b) the Senior Prepayment
Percentage of the Principal Prepayment Amount for the Loans (exclusive of the
portion thereof included in the sum of the Discount Fractional Principal Amounts
for such Distribution Date) and (c) the Senior Liquidation Amount.

     Senior Subordinate Certificates: The Class M, B-1 and B-2 Certificates,
collectively.

     Servicer: Washington Mutual Mortgage Securities Corp., a Delaware
corporation, or any successor thereto appointed as provided pursuant to Section
7.5, acting to service and administer such Loans pursuant to Section 3.1.

     Servicer's Section 3.10 Report: A report delivered by the Servicer to the
Trustee pursuant to Section 3.10.

     Servicing Fee: For each Loan in the Loan Schedule, the fee paid to the
Servicer to perform primary servicing functions with respect to such Loan as
specified on the Loan Schedule, which will range from 0.29% to 0.99% per annum,
with an initial weighted average of approximately 0.561% per annum, on the
outstanding Principal Balance of such Loan.

     Servicing Officer: Any individual involved in, or responsible for, the
administration and servicing of the Loans whose name and specimen signature
appear on a list of servicing officers furnished to the Trustee on the Closing
Date by the Servicer in the form of an Officer's Certificate, as such list may
from time to time be amended.

     Special Hazard Coverage: As of the Cut-Off Date approximately $3,903,312,
and thereafter on each anniversary of the Cut-Off Date, the Special Hazard
Coverage shall be reduced, but not increased, to an amount equal to the lesser
of (1) the greatest of (a) the aggregate Principal Balance of the Loans located
in the single California zip code area containing the largest aggregate
Principal Balance of the Loans, (b) 1% of the aggregate unpaid Principal Balance
of the Loans and (c) twice the unpaid Principal Balance of the largest single
Loan, in each case calculated as of the Due Date in the immediately preceding
month, and (2) the initial Special Hazard Coverage amount of $3,903,312 as
reduced by the Special Hazard Losses allocated to the Certificates since the
Cut-Off Date. Special Hazard Coverage may be reduced upon written confirmation
from each Rating Agency that such reduction will not adversely affect the then
current ratings assigned to the Certificates by each Rating Agency.

     Special Hazard Loss: The occurrence of any direct physical loss or damage
to a Mortgaged Property not covered by a standard hazard maintenance policy with
extended coverage which is caused by or results from any cause except: (i) fire,
lightning, windstorm, hail, explosion, riot, riot attending a strike, civil
commotion, vandalism, aircraft, vehicles, smoke, sprinkler leakage, except to
the extent of that portion of the loss which was uninsured because of the
application of a co-insurance clause of any insurance policy covering these
perils;

                                       30
<PAGE>

(ii) normal wear and tear, gradual deterioration, inherent vice or inadequate
maintenance of all or part thereof; (iii) errors in design, faulty workmanship
or materials, unless the collapse of the property or a part thereof ensues and
then only for the ensuing loss; (iv) nuclear reaction or nuclear radiation or
radioactive contamination, all whether controlled or uncontrolled and whether
such loss be direct or indirect, proximate or remote or be in whole or in part
caused by, contributed to or aggravated by a peril covered by this definition of
Special Hazard Loss; (v) hostile or warlike action in time of peace or war,
including action in hindering, combating or defending against an actual,
impending or expected attack (a) by any government or sovereign power (dejure or
defacto), or by an authority maintaining or using military, naval or air forces,
(b) by military, naval or air forces, or (c) by an agent of any such government,
power, authority or forces; (vi) any weapon of war employing atomic fission or
radioactive force whether in time of peace or war; (vii) insurrection,
rebellion, revolution, civil war, usurped power or action taken by governmental
authority in hindering, combating or defending against such occurrence; or
(viii) seizure or destruction under quarantine or customs regulations, or
confiscation by order of any government or public authority.

     Step Down Percentage: For any Distribution Date will be the percentage
indicated below:

          DISTRIBUTION DATE OCCURRING IN                   STEP DOWN PERCENTAGE
          ------------------------------                   --------------------
          August 2001 through July 2006..................           0%
          August 2006 through July 2007..................          30%
          August 2007 through July 2008..................          40%
          August 2008 through July 2009..................          60%
          August 2009 through July 2010..................          80%
          August 2010 and thereafter.....................         100%

     Subordinate Amount: The excess of the aggregate Scheduled Principal Balance
of the Loans over the Certificate Principal Balances of the Senior Certificates.

     Subordinate Certificates: The Class M, Class B-1, Class B-2, Class B-3,
Class B-4 and Class B-5 Certificates, collectively, and designated as such on
the face thereof in substantially the form attached hereto as Exhibits A-16
through A-21, respectively and for purposes of this Agreement, the "order of
seniority" from highest to lowest of such certificates shall be the order
designated in the beginning of this definition.

     Subordinate Liquidation Amount: The excess, if any, of the aggregate of
Liquidation Principal for all the Loans which became Liquidated Loans during the
applicable Prepayment Period, over the related Senior Liquidation Amount for
such Distribution Date.

     Subordinate Percentage: As of the Closing Date approximately 3.42%, and
thereafter, with respect to any Distribution Date, the excess of 100% over the
Senior Percentage for such date.

     Subordinate Prepayment Percentage: As of the Closing Date, approximately
0%, and thereafter, with respect to any Distribution Date, the excess of 100%
over the Senior Prepayment Percentage.

                                       31
<PAGE>

     Subordinate Principal Amount: On any Distribution Date, will be equal to
the sum of:

     (1) the Subordinate Percentage of the Principal Payment Amount (exclusive
         of the portion thereof attributable to the sum of the Discount
         Fractional Principal Amounts for such Distribution Date);
     (2) the Subordinate Principal Prepayment Amount; and
     (3) the Subordinate Liquidation Amount;

         provided, however, that the Subordinate Principal Amount shall be
     reduced by the amounts required to be distributed to the Principal Only
     Certificates with respect to the Discount Fractional Principal Shortfall on
     such Distribution Date.

Any reduction in the Subordinate Principal Amount pursuant to the proviso above
shall offset the amount calculated pursuant to clause (1), clause (3) and clause
(2), in such order of priority. On any Distribution Date, the Subordinate
Principal Amount shall be allocated pro rata, by Class Principal Balance, among
the Classes of Subordinate Certificates and paid in the order of distribution to
such Classes pursuant to clause (I)(b) of the definition of "Certificate
Distribution Amount" herein, except as otherwise stated in such definition.
Notwithstanding the foregoing, on any Distribution Date prior to distributions
on such date, if the Subordination Level for any Class of Subordinate
Certificates is less than such percentage as of the Closing Date, the pro rata
portion of the Subordinate Principal Prepayment Amount otherwise allocable to
the Class or Classes junior to such Class will be distributed to the most senior
Class of the Subordinate Certificates for which the Subordination Level is less
than such percentage as of the Closing Date, and to the Classes of Subordinate
Certificates senior thereto, pro rata according to the Class Principal Balances
of such Classes.

     Subordinate Principal Prepayment Amount: On any Distribution Date, the
Subordinate Prepayment Percentage of the Principal Prepayment Amount for the
Loans (exclusive of the portion thereof attributable to the sum of the Discount
Fractional Principal Amounts for such Distribution Date).

     Subordination Level: On any specified date, with respect to any Class of
Subordinate Certificates, the percentage obtained by dividing: (1) the sum of
the Class Principal Balances of all Classes of Certificates which are
subordinate in right of payment to such Class as of such date before giving
effect to distributions or allocations of Realized Losses on the Loans on such
date; by (2) the sum of the Class Principal Balances of all Classes of
Certificates as of such date before giving effect to distributions or
allocations of Realized Losses on the Loans on such date.

     Substitute Loan: As defined in Section 2.2.

     Tax Matters Person: Initially, Washington Mutual Mortgage Securities Corp.,
as a Holder of a Class R Certificate issued hereunder or any Permitted
Transferee of Washington Mutual Mortgage Securities Corp. shall be the initial
"tax matters person" for REMIC I and REMIC II within the meaning of Section
6231(a)(7) of the Code. For tax years commencing after any transfer of such
Class R Certificate by Washington Mutual Mortgage Securities Corp., the holder
of the greatest Percentage Interest in the Class R Certificates at year end
shall be designated as the Tax Matters Person with respect to that year. If the
Tax Matters Person

                                       32
<PAGE>

becomes a Disqualified Organization, the last preceding Holder of such
Authorized Denomination of the Class R Certificates that is not a Disqualified
Organization shall be Tax Matters Person pursuant to Section 5.1(c). If any
Person is appointed as tax matters person by the Internal Revenue Service
pursuant to the Code, such Person shall be Tax Matters Person.

     Transfer: As defined in Section 5.1(b).

     Transferee: As defined in Section 5.1(b).

     Transferee Affidavit and Agreement: As defined in Section 5.1(c)(i)(B).

     Trust Fund: The corpus of the trust created pursuant to Section 2.1 of this
Agreement. The Trust Fund consists of (i) the Loans and all rights pertaining
thereto; (ii) such assets as from time to time may be held by the Trustee
(except amounts representing the Servicing Fee and amounts on deposit in Escrow
Accounts); (iii) such assets as from time to time may be held by the Servicer in
a Custodial Account for P&I related to the Loans (except amounts representing
the Servicing Fee); (iv) property which secured a Loan and which has been
acquired by foreclosure or deed in lieu of foreclosure after the Cut-Off Date;
(v) amounts paid or payable by the insurer under any FHA insurance policy and
proceeds of any VA guaranty and any other insurance policy related to any Loan
or the Mortgage Pool; and (vi) the rights and remedies of the Depositor under
the Mortgage Loan Purchase Agreement dated as of the Closing Date, between the
Seller and the Depositor.

     Trustee: State Street Bank and Trust Company, a Massachusetts Trust
Company, or its successor-in-interest as provided in Section 8.9, or any
successor trustee appointed as herein provided.

     Uncollected Interest: With respect to any Distribution Date for any Loan on
which a Payoff was made by a Mortgagor during the related Payoff Period, except
for Payoffs received during the period from the first through the 14th day of
the month of such Distribution Date, an amount equal to one month's interest at
the applicable Pass-Through Rate on such Loan less the amount of interest
actually paid by the Mortgagor with respect to such Payoff.

     Uncompensated Interest Shortfall: For any Distribution Date, the excess, if
any, of (i) the sum of (a) aggregate Uncollected Interest, (b) aggregate
Curtailment Shortfall and (c) any shortfall in interest collections in the
calendar month immediately preceding such Distribution Date resulting from a
Relief Act Interest Shortfall over (ii) Compensating Interest, which excess
shall be allocated to each Class of Certificates pro rata according to the
amount of interest accrued thereon in reduction thereof.

     Underwriters: Credit Suisse First Boston Corporation and ABN AMRO
Incorporated.

     U.S. Person: A citizen or resident of the United States, a corporation or
partnership (including an entity treated as a corporation or partnership for
federal income tax purposes) created or organized in, or under the laws of, the
United States or any state thereof or the District of Columbia (except, in the
case of a partnership, to the extent provided in regulations) or an estate whose
income is subject to United States federal income tax regardless of its source,
or a trust if a court within the United States is able to exercise primary
supervision over the

                                       33
<PAGE>

administration of the trust and one or more such U.S. Persons have the authority
to control all substantial decisions of the trust. To the extent prescribed in
regulations by the Secretary of the Treasury, which have not yet been issued, a
trust which was in existence on August 20, 1996 (other than a trust treated as
owned by the grantor under subpart E of part 1 of subchapter J of chapter 1 of
the Code), and which was treated as a U.S. Person on August 20, 1996 may elect
to continue to be treated as a U.S. Person notwithstanding the previous
sentence.

     VA: The Department of Veterans Affairs, formerly known as the Veterans
Administration, or any successor thereto.

     Withdrawal Date: The Business Day immediately preceding the related
Distribution Date.

     All references to the origination date or original date in the Loan
Schedule with respect to a Loan shall refer to the date upon which the related
Mortgage Note was originated or modified, whichever is later.

                                   ARTICLE II

                            CONVEYANCE OF TRUST FUND;
                        ORIGINAL ISSUANCE OF CERTIFICATES

     Section 2.1 Conveyance of Trust Fund. The Depositor, concurrently with the
execution and delivery hereof, does hereby irrevocably sell, convey and assign
to the Trustee and REMIC I without recourse all the right, title and interest of
the Depositor in and to the Trust Fund and to REMIC II without recourse all the
right, title and interest of the Depositor in and to the REMIC I Regular
Interests, for the benefit respectively of REMIC II and the Certificateholders,
including all interest and principal received by the Depositor with respect to
the Loans after the Cut-Off Date (and including without limitation scheduled
payments of principal and interest due after the Cut-Off Date but received by
the Depositor on or before the Cut-Off Date, but not including payments of
principal and interest due on the Loans on or before the Cut-Off Date). The
Depositor, at its own expense, shall file or cause to be filed protective Form
UCC-1 financing statements with respect to the Loans in the State of Delaware or
other applicable jurisdiction, listing itself as "Debtor" under such financing
statement and listing the Trustee, for the benefit of the Certificateholders, as
"Secured Party" under such financing statement.

     In connection with such assignment, the Depositor does hereby deliver to,
and deposit with, the Trustee for the benefit of the Certificateholders the
following documents or instruments with respect to each Loan so assigned:

         (i) The original Mortgage Note (or, if the original Mortgage Note has
     been lost or destroyed, a lost note affidavit and indemnity) bearing all
     intervening endorsements endorsed, "Pay to the order of State Street Bank
     and Trust Company, as Trustee, for the benefit of the Certificateholders of
     ABN AMRO Mortgage Corporation Series 2001-4, without recourse" and signed
     in the name of the last endorsee thereof showing an unbroken chain of title
     from the originator thereof to the person endorsing;

                                       34
<PAGE>

         (ii) (a) The original Mortgage with evidence of recording thereon, and
     if the Mortgage was executed pursuant to a power of attorney, a certified
     true copy of the power of attorney certified by the recorder's office, with
     evidence of recording thereon, or certified by a title insurance company or
     escrow company to be a true copy thereof; provided, that if such original
     Mortgage or power of attorney cannot be delivered with evidence of
     recording thereon on or prior to the Closing Date because of a delay caused
     by the public recording office where such original Mortgage has been
     delivered for recordation or because such original Mortgage has been lost,
     the Depositor shall deliver or cause to be delivered to the Trustee a true
     and correct copy of such Mortgage, together with (1) in the case of a delay
     caused by the public recording office, an Officer's Certificate signed by a
     Responsible Officer of the Seller or the originator of the related Loan
     stating that such original Mortgage has been dispatched to the appropriate
     public recording official for recordation or (2) in the case of an original
     Mortgage that has been lost, a certificate by the appropriate county
     recording office where such Mortgage is recorded or from a title insurance
     company or escrow company indicating that such original was lost and the
     copy of the original mortgage is a true and correct copy;

         (b) The original Assignment to "State Street Bank and Trust Company, as
     custodian/trustee," which assignment shall be in form and substance
     acceptable for recording, or a copy certified by the Seller or the
     originator of the related Loan as a true and correct copy of the original
     Assignment which has been sent for recordation. Subject to the foregoing,
     such assignments may, if permitted by law, be by blanket assignments for
     Loans covering Mortgaged Properties situated within the same county. If the
     Assignment is in blanket form, a copy of the Assignment shall be included
     in the related individual Mortgage File.

         (iii) The originals of any and all instruments that modify the terms
     and conditions of the Mortgage Note, including but not limited to
     modification, consolidation, extension and assumption agreements including
     any adjustable rate mortgage (ARM) rider, if any,

         (iv) The originals of all required intervening assignments, if any,
     with evidence of recording thereon, and if such assignment was executed
     pursuant to a power of attorney, a certified true copy of the power of
     attorney certified by the recorder's office, with evidence of recording
     thereon, or certified by a title insurance company or escrow company to be
     a true copy thereof; provided, that if such original assignment or power of
     attorney cannot be delivered with evidence of recording thereon on or prior
     to the Closing Date because of a delay caused by the public recording
     office where such original assignment has been delivered for recordation or
     because such original Assignment has been lost, the Depositor shall deliver
     or cause to be delivered to the Trustee a true and correct copy of such
     Assignment, together with (a) in the case of a delay caused by the public
     recording office, an Officer's Certificate signed by a Responsible Officer
     of the Seller or by the originator of the related Loan stating that such
     original assignment has been dispatched to the appropriate public recording
     official for recordation or (b) in the case of an original assignment that
     has been lost, a certificate by the appropriate county recording office
     where such assignment is recorded or from a title

                                       35
<PAGE>

     insurance company or escrow company indicating that such original was lost
     and the copy of the original assignment is a true and correct copy;

         (v) The original mortgagee policy of title insurance (including, if
     applicable, the endorsement relating to the negative amortization of the
     Loans) or in the event such original title policy is unavailable, any one
     of an original title binder, an original preliminary title report or an
     original title commitment or a copy thereof certified by the title company
     with the original policy of title insurance to follow within 180 days of
     the Closing Date;

         (vi) The mortgage insurance certificate;

         (vii) Hazard insurance certificates and copies of the hazard insurance
     policy and, if applicable, flood insurance policy; and

         (viii) Any and all other documents, opinions and certificates executed
     and/or delivered by the related Mortgagor and/or its counsel in connection
     with the origination of such Mortgage Loan, which may include
     truth-in-lending statements and other legal statements, an appraisal and a
     survey.

The documents and instruments set forth in clauses (i) - (viii) above shall be
called, collectively, the "Mortgage File".

     If the Depositor cannot deliver the original Mortgage with evidence of
recording thereon concurrently with the execution and delivery of this Agreement
because of a delay caused by the public recording office where such original
Mortgage has been delivered for recordation, the Depositor shall deliver to the
Trustee an Officer's Certificate, with a photocopy of such Mortgage attached
thereto, stating that such original Mortgage has been delivered to the
appropriate public recording official for recordation. The Depositor shall
promptly deliver to the Trustee such original Mortgage with evidence of
recording indicated thereon upon receipt thereof from the public recording
official.

     The Depositor shall, at its own expense, promptly record or cause to be
recorded in the appropriate public real property or other records each
Assignment referred to in Section 2.1(ii), unless the Depositor delivers to the
Trustee an Independent opinion of counsel admitted to practice law in the state
in which such Mortgaged Property is located to the effect that such recordation
is not necessary to secure the interest in the related Mortgaged Properties
against any other transferee or creditor of the Depositor, in which case such
Assignments shall be delivered to the Trustee for the benefit of the
Certificateholders in recordable form. If the Depositor cannot deliver the
original Assignment concurrently with the execution and delivery of this
Agreement solely because it is in the process of being prepared and recorded or
because of a delay caused by the public recording office where such original
Assignment has been delivered for recordation, the Depositor shall deliver a
blanket Officer's Certificate covering all such Assignments stating that such
original Assignment is in the process of being prepared and recorded or it has
been delivered to the appropriate public recording official for recordation. Any
such original recorded Assignment shall be delivered to the Trustee within 180
days following the execution of this Agreement.

                                       36
<PAGE>

     If the Depositor cannot deliver the original title insurance policy
concurrently with the execution and delivery of this Agreement, the Depositor
shall promptly deliver each such original title insurance policy as soon as such
policy becomes available but in no event later than 120 days following the
execution of this Agreement.

     All rights arising out of Loans including, without limitation, all funds
received on or in connection with a Loan shall be held by the Depositor in trust
for the benefit of the Certificateholders. The Depositor shall maintain a
complete set of books and records for each Loan which shall be clearly marked to
reflect the ownership of each Loan by the Certificateholders.

     It is the express intent of this Agreement that the conveyance of the Loans
by the Depositor to the Trustee as provided in this Section 2.1 be, and be
construed as, a sale of the Loans by the Depositor to the Trustee and that the
sale of the Certificates to the Certificateholders, if they are sold, be, and be
construed as, a sale of a 100% interest in the Loans and the Trust Fund to such
Certificateholders. It is, further, not the intention of this Agreement that
such conveyance be deemed a pledge of the Loans by the Depositor to the Trustee
to secure a debt or other obligation of the Depositor. However, in the event
that, notwithstanding the intent of this Agreement, the Loans are held to be
property of the Depositor, or if for any other reason this Agreement is held or
deemed to create a security interest in the Loans, then (a) this Agreement shall
also be deemed to be a security agreement within the meaning of Articles 8 and 9
of the New York Uniform Commercial Code; (b) the conveyance provided for in this
Section 2.1 shall be deemed to be a grant by the Depositor to the Trustee for
the benefit of the Certificateholders of a security interest in all of the
Depositor's right, title and interest in and to the Loans and all amounts
payable to the holders of the Loans in accordance with the terms thereof and all
proceeds of the conversion, voluntary or involuntary, of the foregoing into
cash, instruments, securities or other property, including without limitation
all amounts, other than investment earnings, from time to time held or invested
in the Certificate Account, whether in the form of cash, instruments, securities
or other property; (c) the possession by the Trustee or any Custodian of
Mortgage Notes and such other items of property as constitute instruments,
money, negotiable documents or chattel paper shall be deemed to be "in
possession by the secured party" for purposes of perfecting the security
interest pursuant to Section 9-305 of the New York Uniform Commercial Code; and
(d) notifications to persons holding such property, and acknowledgments,
receipts or confirmations from persons holding such property, shall be deemed
notifications to, or acknowledgments, receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the Trustee for the benefit
of the Certificateholders for the purpose of perfecting such security interest
under applicable law (except that nothing in this clause (d) shall cause any
person to be deemed to be an agent of the Trustee for any purpose other than for
perfection of such security interest unless, and then only to the extent,
expressly appointed and authorized by the Trustee in writing). The Depositor and
the Trustee, upon directions from the Depositor, shall, to the extent consistent
with this Agreement, take such actions as may be necessary to ensure that, if
this Agreement were deemed to create a perfected security interest in Loans,
such security interest would be deemed to be a perfected security interest of
first priority under applicable law and will be maintained as such throughout
the term of this Agreement.

                                       37
<PAGE>

     The Trustee is authorized to appoint any bank or trust company approved by
the Depositor as Custodian of the documents or instruments referred to under (i)
through (viii) above, and to enter into a Custodial Agreement for such purpose
and any documents delivered thereunder shall be delivered to the Custodian and
any Officer's Certificates delivered with respect thereto shall be delivered to
the Trustee and the Custodian.

     Section 2.2 Acceptance by Trustee. The Trustee acknowledges, subject to the
provisions of Section 2.1 and to any document exceptions reported pursuant to
the Trustee's reviews as described below, receipt of the Mortgage Notes (or lost
note affidavits and indemnities), the Mortgages, the assignments of the
Mortgages and the Officer's Certificates referred to in Section 2.1 above, and
declares that it holds and will hold such documents and the other documents
constituting a part of the Mortgage Files delivered to it as Trustee in trust,
upon the trusts herein set forth, for the use and benefit of all present and
future Certificateholders. The Trustee acknowledges that, as of the date of the
execution of this Agreement, the Mortgage Files have been delivered to the
Trustee and the Trustee has conducted a preliminary review of the Mortgage
Files. The Trustee further acknowledges that such review included a review of
the Mortgage Notes (or lost note affidavits and indemnities) to determine that
the appropriate Mortgage Notes (or lost note affidavits and indemnities) have
been delivered and endorsed in the manner set forth in Section 2.1(i). In
connection with such review, the Trustee shall have delivered an exceptions
report indicating any discrepancies relating to such review. In addition, the
Trustee agrees, for the benefit of Certificateholders, to review each Mortgage
File within 45 days, or with respect to assignments which must be recorded,
within 180 days, after execution of this Agreement to ascertain that all
required documents set forth in items (i), (ii), (v), (vi) and, to the extent
delivered to the Trustee, items (iii), (iv), (vii) and (viii) of Section 2.1
have been executed and received, and that such documents relate to the Loans
identified in Exhibit D annexed hereto, and in so doing the Trustee may rely on
the purported due execution and genuineness of any such document and on the
purported genuineness of any signature thereon. The Trustee shall have no duty
to verify or determine whether any Mortgage File should contain documents
described in Sections 2.1(iii), (iv), (vii) and (viii). The Trustee shall be
under no duty or obligation to inspect, review or make any independent
examination of any documents contained in each Mortgage File beyond the review
specifically required herein. The Trustee makes no representations as to (i) the
validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File or any of the Loans identified on the
Loan Schedule, or (ii) the collectability, insurability, effectiveness or
suitability of any such Loan. If at the conclusion of such 45-day period or
180-day period the Trustee finds any document constituting a part of a Mortgage
File not to have been executed or received or to be unrelated to the Loans
identified in said Exhibit D (each such finding, a "material defect"), the
Trustee shall promptly notify the Depositor, which shall have a period of 90
days after the REMIC has received notice to correct or cure any such material
defect; provided, however, that if the Trustee shall not have received a
document by reason of the fact that such document shall not have been returned
by the appropriate recording office then the Depositor shall have until a date
one year later from the Cut-Off Date to correct or cure such defect. The
Depositor hereby covenants and agrees that, if any such material defect as
defined above is not corrected or cured, the Depositor will, within 90 days of
the REMIC having received notice, either (i) repurchase the related Loan at a
price equal to 100% of the Principal Balance of such Loan (or any property
acquired in respect thereof) plus accrued interest on such Principal Balance at
the applicable Pass-Through Rate to the next scheduled Due Date of such Loan or
(ii) substitute for any Loan to

                                       38
<PAGE>

which such material defect relates a different mortgage loan (a "Substitute
Loan") maturing no later than and not more than two years earlier than the Loan
being substituted for and having a principal balance equal to or less than and a
Mortgage Interest Rate equal to or greater than the Mortgage Interest Rate of
the Loan being substituted for, a Loan-to-Value Ratio equal to or less than the
Loan-to-Value Ratio of the Loan being substituted for and otherwise having such
characteristics so that the representations and warranties of the Depositor set
forth in Section 2.3 hereof would not have been incorrect had such Substitute
Loan originally been a Loan; provided, however, that if the Principal Balance of
the original Loan exceeds the principal balance of the Substitute Loan, an
amount equal to that difference shall be deposited by the Depositor in the
Certificate Account; provided, further, however, that no such substitution may
occur after 90 days of the Closing Date unless the Trustee shall have received
from the Depositor an Opinion of Counsel to the effect that such substitution
will not adversely affect the REMIC status of REMIC I or REMIC II or constitute
a prohibited transaction or substitution under the REMIC provisions of the Code,
and, if applicable, within the meaning of the REMIC Provisions of the particular
State, if any, which would impose a tax on the Trust Fund. Monthly Payments due
with respect to Substitute Loans in the month of substitution are not a part of
the Trust Fund and will be retained by the Servicer. The Depositor shall notify
each Rating Agency of any such substitution. For the month of substitution,
distributions to Certificateholders will include the Monthly Payment due on the
Loan being substituted for in such month. The purchase price for the repurchased
Loan or property shall be deposited by the Depositor in the Certificate Account
and in the case of a Substitute Loan, the Mortgage File relating thereto shall
be delivered to the Trustee or the Custodian. Upon receipt by the Trustee of
written notification of such deposit signed by a Servicing Officer or the new
Mortgage File, as the case may be, and an Officer's Certificate that such
repurchase or substitution is in accordance with this Agreement, the Trustee
shall release or cause to be released to the Depositor the related Mortgage File
for the Loan being repurchased or substituted for, as the case may be, and shall
execute and deliver or cause to be executed and delivered such instrument of
transfer or assignment presented to it by the Depositor, in each case without
recourse, as shall be necessary to transfer to the Depositor the Trustee's
interest in such original or repurchased Loan or property and the Trustee shall
have no further responsibility with regard to such Loan. It is understood and
agreed that the obligation of the Depositor to substitute a new Loan for or
repurchase any Loan or property as to which such a material defect in a
constituent document exists shall constitute the sole remedy respecting such
defect available to Certificateholders or the Trustee on behalf of
Certificateholders, but such obligation shall survive termination of this
Agreement. Neither the Trustee nor the Custodian shall be responsible for
determining whether any assignment or mortgage delivered pursuant to Section
2.1(ii) is in recordable form or, if recorded, has been properly recorded.

     Section 2.3 Representations and Warranties of the Depositor. The Depositor
hereby represents and warrants to the Trustee as of the Closing Date:

         (i) that the information set forth in the Loan Schedule appearing as an
     exhibit to this Agreement is true and correct in all material respects at
     the date or dates respecting which such information is furnished as
     specified therein;

         (ii) that as of the date of the transfer of the Loans to the Trustee,
     the Depositor is the sole owner and holder of each Loan free and clear of
     all liens, pledges, charges or

                                       39
<PAGE>

     security interests of any nature and has full right and authority, subject
     to no interest or participation of, or agreement with, any other party, to
     sell and assign the same;

         (iii) that as of the date of initial issuance of the Certificates, no
     payment of principal of or interest on or in respect of any Loan is 30 days
     or more past due from the Due Date of such Loan;

         (iv) that to the best of the Depositor's knowledge, as of the date of
     the transfer of the Loans to the Trustee, there is no valid offset, defense
     or counterclaim to any Mortgage Note or Mortgage;

         (v) that as of the date of the initial issuance of the Certificates,
     there is no proceeding pending, or to the best of the Depositor's
     knowledge, threatened for the total or partial condemnation of any of the
     Mortgaged Property and the Mortgaged Property is free of material damage
     and is in good repair and neither the Mortgaged Property nor any
     improvement located on or being part of the Mortgaged Property is in
     violation of any applicable zoning law or regulation;

         (vi) that each Loan complies in all material respects with applicable
     state or federal laws, regulations and other requirements, pertaining to
     usury, equal credit opportunity and disclosure laws, and each Loan was not
     usurious at the time of origination;

         (vii) that to the best of the Depositor's knowledge, as of the date of
     the initial issuance of the Certificates, all insurance premiums previously
     due and owing with respect to the Mortgaged Property have been paid and all
     taxes and governmental assessments previously due and owing, and which may
     become a lien against the Mortgaged Property, with respect to the Mortgaged
     Property have been paid;

         (viii) that each Mortgage Note and the related Mortgage are genuine and
     each is the legal, valid and binding obligation of the maker thereof,
     enforceable in accordance with its terms except as such enforcement may be
     limited by bankruptcy, insolvency, reorganization or other similar laws
     affecting the enforcement of creditors' rights generally and by general
     equity principles (regardless of whether such enforcement is considered in
     a proceeding in equity or at law); all parties to the Mortgage Note and the
     Mortgage had legal capacity to execute the Mortgage Note and the Mortgage;
     and each Mortgage Note and Mortgage have been duly and properly executed by
     the Mortgagor;

         (ix) that each Mortgage is a valid and enforceable first lien on the
     property securing the related Mortgage Note, and that each Loan is covered
     by an ALTA mortgagee title insurance policy or other form of policy or
     insurance generally acceptable to FNMA or FHLMC, issued by, and is a valid
     and binding obligation of, a title insurer acceptable to FNMA or FHLMC
     insuring the originator, its successor and assigns, as to the lien of the
     Mortgage in the original principal amount of the Loan subject only to (a)
     the lien of current real property taxes and assessments not yet due and
     payable, (b) covenants, conditions and restrictions, rights of way,
     easements and other matters of public record as of the date of recording of
     such Mortgage acceptable to mortgage

                                       40
<PAGE>

     lending institutions in the area in which the Mortgaged Property is located
     or specifically referred to in the appraisal performed in connection with
     the origination of the related Loan and (c) such other matters to which
     like properties are commonly subject which do not individually, or in the
     aggregate, materially interfere with the benefits of the security intended
     to be provided by the Mortgage;

         (x) that as of the initial issuance of the Certificates, neither the
     Depositor nor any prior holder of any Mortgage has, except as the Mortgage
     File may reflect, modified the Mortgage in any material respect; satisfied,
     canceled or subordinated such Mortgage in whole or part; released such
     Mortgaged Property in whole or in part from the lien of the Mortgage; or
     executed any instrument of release, cancellation, modification or
     satisfaction;

         (xi) that each Mortgaged Property consists of a fee simple estate or a
     condominium form of ownership in real property;

         (xii) no foreclosure action is threatened or has been commenced (except
     for the filing of any notice of default) with respect to the Loan; and
     except for payment delinquencies not in excess of 30 days, to the best of
     the Depositor's knowledge, there is no default, breach, violation or event
     of acceleration existing under the Mortgage or the related Mortgage Note
     and no event which, with the passage of time or with notice and the
     expiration of any grace or cure period, would constitute a default, breach,
     violation or event of acceleration; and the Depositor has not waived any
     default, breach, violation or event of acceleration;

         (xiii) that each Loan was originated on FNMA or FHLMC uniform
     instruments for the state in which the Mortgaged Property is located;

         (xiv) that based upon a representation by each Mortgagor at the time of
     origination or assumption of the applicable Loan, all of the Loans measured
     by Principal Balance were to be secured by owner-occupied residences;

         (xv) that an appraisal of each Mortgaged Property was conducted at the
     time of origination of the related Loan, and that each such appraisal was
     conducted in accordance with FNMA or FHLMC criteria, on FNMA or FHLMC forms
     and comparables on at least three properties were obtained;

         (xvi) that no Loan had a Loan-to-Value Ratio at origination in excess
     of 95%;

         (xvii) the Loans were not selected in manner to adversely affect the
     interests of the Certificateholders and the Depositor knows of no
     conditions which reasonably would cause it to expect any Loan to become
     delinquent or otherwise lose value;

         (xviii) each Loan was either (A) originated directly by or closed in
     the name of either: (i) a savings and loan association, savings bank,
     commercial bank, credit union, insurance company, or similar institution
     which is supervised and examined by a federal or state authority or (ii) a
     mortgagee approved by the Secretary of Housing and Urban Development
     pursuant to Sections 203 and 211 of the National Housing Act or

                                       41
<PAGE>

     (B) originated or underwritten by an entity employing underwriting
     standards consistent with the underwriting standards of an institution as
     described in subclause (A)(i) or (A)(ii) above;

         (xix) each Loan is a "qualified mortgage" within the meaning of Section
     860G of the Code without regard to ss. 1.860G-2(f) of the REMIC Provisions
     or any similar rule;

         (xx) each Loan that has a Loan-to-Value Ratio in excess of 80% is
     covered by a primary mortgage insurance policy; and

         (xxi) that no Loan permits negative amortization or the deferral of
     accrued interest.

     It is understood and agreed that the representations and warranties set
forth in this Section 2.3 shall survive delivery of the respective Mortgage
Files to the Trustee, or to a Custodian, as the case may be. Upon discovery by
the Depositor, Servicer, the Trustee or any Custodian of a breach of any of the
foregoing representations and warranties (referred to herein as a "breach"),
without regard to any limitation set forth in such representation or warranty
concerning the knowledge of the Depositor as to the facts stated therein, which
breach materially and adversely affects the interests of the Certificateholders
in the related Loan, the party discovering such breach shall give prompt written
notice to the others and to each Rating Agency.

     Within 90 days of its discovery or its receipt of notice of breach, the
Depositor shall cure or shall cause such breach to be cured in all material
respects or shall repurchase the Loan or any property acquired in respect
thereof from the Trustee at a repurchase price equal to 100% of the Principal
Balance of such Loan plus accrued interest on such Principal Balance at the
Mortgage Interest Rate to the next scheduled Installment Due Date of such Loan
or remove such Loan from the Trust Fund and substitute in its place a Substitute
Loan or Loans with the characteristics set forth in Section 2.2 above for
Substitute Loans; provided, however, that if such breach would cause the Loan to
be other than a "qualified mortgage" as defined in Section 860G(a)(3) of the
Code, any such cure, repurchase or substitution must occur within 90 days from
the date such breach was discovered; provided, further, that no substitution (or
cure which would constitute a loan modification for federal income tax purposes)
may be effected any later than two years after the Closing Date; provided,
further, that as a pre-condition to any substitution (or cure which would
constitute a loan modification for federal income tax purposes) to be effected
later than 90 days after the Closing Date (and within two years of the Closing
Date), the Trustee shall receive from the Depositor an Opinion of Counsel to the
effect that such substitution (or cure which would constitute a loan
modification for federal income tax purposes) will not adversely affect the
REMIC status of REMIC I or REMIC II or constitute a prohibited transaction under
the REMIC Provisions of the Code and, if applicable, the REMIC provisions of the
relevant State. Except as expressly set forth herein, neither the Trustee nor
the Servicer is under any obligation to discover any breach of the above
mentioned representations and warranties. It is understood and agreed that the
obligation of the Depositor to repurchase or substitute any Loan or property as
to which a breach has occurred and is continuing shall constitute the sole
remedy respecting such breach available to Certificateholders or the Trustee on
behalf of Certificateholders, and such obligation shall survive as the
obligation of the Depositor or its respective successors.

                                       42
<PAGE>

     Section 2.4 Authentication and Delivery of Certificates; Designation of
Certificates as REMIC Regular and Residual Interests.

     (a) The Trustee acknowledges the transfer to the extent provided herein and
assignment to it of the Trust Fund and, concurrently with such transfer and
assignment, has caused to be authenticated and delivered to or upon the order of
the Depositor, in exchange for the Trust Fund, Certificates evidencing the
entire ownership of the Trust Fund.

     (b) This Agreement shall be construed so as to carry out the intention of
the parties that each of REMIC I and REMIC II be treated as a REMIC at all times
prior to the date on which the Trust Fund is terminated. The "regular interests"
(within the meaning of Section 860G(a)(1) of the Code) in REMIC II shall consist
of the Class A Certificates and the Subordinate Certificates. The "residual
interest" (within the meaning of Section 860G(a)(2) of the Code) in REMIC II
shall consist of Component R-2 of the Class R Certificates. The "regular
interests" (within the meaning of Section 860G(a)(1) of the Code) of REMIC I
shall consist of Class A-1 Regular Interest, the Class A-3 Regular Interest, the
Class A-4 Regular Interest, the Class A-5 Regular Interest, the Class A-6
Regular Interest, the Class A-7 Regular Interest, the Class A-8 Regular
Interest, the Class A-9 Regular Interest, the Class A-10 Regular Interest, the
Class A-11 Regular Interest, the Class A-12 Regular Interest, the Class A-13
Regular Interest, the Class A-X Regular Interest, the Class A-P Regular
Interest, the Class M Regular Interest, the Class B-1 Regular Interest, the
Class B-2 Regular Interest, the Class B-3 Regular Interest, the Class B-4
Regular Interest and the Class B-5 Regular Interest. The "residual interest"
(within the meaning of Section 860(G)(a)(2) of the Code) of REMIC I shall
consist of Component R-1 of the Class R Certificates.

     (c) All payments with respect to each of the A-1, A-3, A-4, A-5, A-6, A-7,
A-8, A-9, A-10, A-11, A-12, A-13, A-X, A-P, M, B-1, B-2, B-3, B-4 and B-5
Certificates shall each be considered to have been made solely from the Regular
Interest of REMIC I having the same designation. All principal payments with
respect to each such Class of Certificates (other than the Class A-X
Certificates) shall be considered to have been made solely from the principal
payments of the corresponding Regular Interests of REMIC I, and the Class
Principal Balance of each such Class of Certificate (other than the Class A-X
Certificates) shall be equal at all times to the principal balance of each such
corresponding Regular Interest of REMIC I. All interest payments with respect to
the Class A-X Certificates shall be considered to have been made solely from the
interest payments of the Class A-X Regular Interest of REMIC I, and the notional
principal amount of the Class A-X Regular Interest shall be equal at all times
to the Class A-X Notional Amount. The interest rate of each REMIC I Regular
Interest Class A-1, A-3, A-4, A-5, A-6, A-9, A-10, A-11, A-12, A-13, A-X, M,
B-1, B-2, B-3, B-4 and B-5 shall be 6.75%. The interest rate of each REMIC I
Regular Interest Class A-7 shall be 6.50%. The interest rate of each REMIC I
Regular Interest Class A-8 shall be 7.00%. The Class A-P Regular Interest Class
shall not bear interest, but will receive principal only in respect of the
Loans.

     (d) The Class A-2 Certificates shall be considered for federal income tax
purposes to have one component notional principal amount which is equal to the
principal balance of the Class A-1 Regular Interest, bearing interest at 0.25%.

                                       43
<PAGE>

     Section 2.5 Designation of Startup Day. The Closing Date is hereby
designated as the "startup day" of each of REMIC I and REMIC II within the
meaning of Section 860G(a)(9) of the Code.

     Section 2.6 No Contributions. The Trustee shall not accept or make any
contribution of cash to the Trust Fund after 90 days of the Closing Date, and
shall not accept or make any contribution of other assets to the Trust Fund
unless, in either case, it shall have received an Opinion of Counsel to the
effect that the inclusion of such assets in the Trust Fund will not cause either
REMIC I or REMIC II to fail to qualify as a REMIC at any time that any Class A
or Subordinate Certificates are outstanding or subject the Trust Fund to any tax
on contributions to the REMIC under Section 860G(d) of the Code.

     Section 2.7 Representations and Warranties of the Servicer. The Servicer
hereby represents, warrants and covenants to the Trustee for the benefit of
Certificateholders that, as of the date of execution of this Agreement:

         (a) the Servicer is a corporation duly formed and validly existing
     under the laws of the State of Delaware;

         (b) the execution and delivery of this Agreement by the Servicer and
     its performance of and compliance with the terms of this Agreement will not
     violate the Servicer's corporate charter or by-laws or constitute a default
     (or an event which, with notice or lapse of time, or both, would constitute
     a default) under, or result in the breach of, any material contract,
     agreement or other instrument to which the Servicer is a party or which may
     be applicable to the Servicer or any of its assets;

         (c) this Agreement, assuming due authorization, execution and delivery
     by the Trustee and the Depositor, constitutes a valid, legal and binding
     obligation of the Servicer, enforceable against it in accordance with the
     terms hereof subject to applicable bankruptcy, insolvency, reorganization,
     moratorium and other laws affecting the enforcement of creditors' rights
     generally and to general principles of equity, regardless of whether such
     enforcement is considered in a proceeding in equity or at law;

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

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

     It is understood and agreed that the representations and warranties set
forth in this Section 2.7 shall survive delivery of the respective Mortgage
Files to the Trustee, or to a Custodian, as the case may be.

                                       44
<PAGE>
                                   ARTICLE III

                      ADMINISTRATION AND SERVICING OF LOANS

     Section 3.1 Servicer to Act as Servicer; Administration of the Loans.

     (a) The Servicer shall service and administer the Loans on behalf of the
Trust Fund solely in the best interests of and for the benefit of the
Certificateholders (as determined by the Servicer in its reasonable judgment)
and the Trustee (as trustee for Certificateholders) in accordance with the terms
of this Agreement and the respective Loans and, to the extent consistent with
such terms, in the same manner in which, and with the same care, skill, prudence
and diligence with which, it services and administers similar mortgage loans for
other portfolios, giving due consideration to customary and usual standards of
practice of prudent institutional residential mortgage lenders and loan
servicers, and taking into account its other obligations hereunder, but without
regard to:

         (i) any relationship that the Servicer, any sub-servicer, any special
     servicer or any Affiliate of the Servicer, any sub-servicer or any special
     servicer may have with the related Mortgagor;

         (ii) the ownership of any Certificate by the Servicer, any special
     servicer or any Affiliate of the Servicer, any sub-servicer or any special
     servicer;

         (iii) the Servicer's, any sub-servicer's or any special servicer's
     right to receive compensation for its services hereunder or with respect to
     any particular transaction; or

         (iv) the ownership, or servicing or management for others, by the
     Servicer, any sub-servicer or any special servicer, of any other mortgage
     loans or property.

In addition, the Servicer shall have full power and authority to do or cause to
be done any and all things in connection with such servicing and administration
which it may deem necessary or desirable, including, without limitation, the
power and authority to bring actions and defend the Trust Fund on behalf of the
Trustee in order to enforce the terms of the Mortgage Notes. The Servicer may
perform its servicing responsibilities through agents or independent
contractors, but shall not thereby be released from any of its responsibilities
hereunder and the Servicer shall diligently pursue all of its rights against
such agents or independent contractors.

     To the extent consistent with the foregoing and subject to any express
limitations set forth in this Agreement, the Servicer shall seek to maximize the
timely and complete recovery of principal and interest on the Mortgage Notes;
provided, however, that nothing herein contained shall be construed as an
express or implied guarantee by the Servicer of the collectability of the Loans.
Subject only to the above-described servicing standards and the terms of this
Agreement and of the respective Loans, the Servicer, as an independent
contractor, shall service and administer the Loans and shall have full power and
authority, acting alone or through one or more subservicers, special servicers
or agents (subject to paragraph (c) of this Section 3.1), to do any and all
things in connection with such servicing and administration which it may deem
necessary or desirable for the purpose of conserving the assets of the Trust
Fund. Without limiting the generality of the foregoing, the Servicer shall and
is hereby authorized and

                                       45
<PAGE>

empowered by the Trustee to continue to execute and deliver, on behalf of
itself, the Certificateholders and the Trustee or any of them, any and all
financing statements, continuation statements and other documents or instruments
necessary to maintain the lien on each Mortgaged Property and related
collateral; and modifications, waivers, consents or amendments to or with
respect to any documents contained in the related Mortgage File; and any and all
instruments of satisfaction or cancellation, or of partial or full release or
discharge, assignments of Mortgages and endorsements of Notes in connection with
refinancings (in jurisdictions where such assignments are the customary and
usual standard of practice of mortgage lenders) and all other comparable
instruments, with respect to the Loans and with respect to the related Mortgaged
Properties. Notwithstanding the foregoing, the Servicer (whether acting alone or
through one or more subservicers, special servicers or agents) shall not modify,
amend, waive or otherwise consent to the change of the terms of any of the Loans
(including without limitation extending the stated maturity date of any Loan or
forgiving principal of or interest on any Loan), except as permitted by Section
3.2 hereof. The Servicer shall service and administer the Loans in accordance
with applicable law and shall provide to the Mortgagors any reports required to
be provided to them thereby. To enable the Servicer to carry out its servicing
and administrative duties hereunder, upon the Servicer's written request
accompanied by the forms of any documents requested, the Trustee shall execute
and deliver to the Servicer any powers of attorney and other documents necessary
or appropriate and the Trustee shall not be responsible for releasing such
powers of attorney. The Trustee shall not be responsible for, and the Servicer
shall indemnify the Trustee for, any action taken by the Servicer pursuant to
the application of any such power of attorney. The relationship of the Servicer
(and of any successor thereto) to the Trustee under this Agreement is intended
by the parties to be that of an independent contractor and not that of a joint
venturer, partner or agent.

     In connection with the servicing and administration of each Loan, the
Servicer and any affiliate of the Servicer (i) may perform services such as
appraisals, default management and brokerage services that are not customarily
provided by servicers of mortgage loans, and shall be entitled to reasonable
compensation therefore not in excess of market rates for such services and (ii)
may, at its own discretion and on behalf of the Trustee, obtain credit
information in the form of a "credit score" from a credit repository.

     (b) The Servicer, Trustee and Depositor intend that REMIC I and REMIC II
formed hereunder shall constitute, and that the Servicer shall perform its
duties and obligation hereunder so as to qualify each of them as, a "real estate
mortgage investment conduit" as defined in and in accordance with the REMIC
Provisions. The Tax Matters Person, or the Person acting as attorney-in-fact and
agent therefor, shall: (a) prepare and file, or cause to be prepared and filed,
federal tax returns (as well as any other federal and state information and
other returns) using a calendar year as the taxable year when and as required by
the REMIC Provisions; (b) make (or cause to be made) an election, on behalf of
each of REMIC I and REMIC II, to be treated as a REMIC on the Federal tax return
and any applicable state or local returns for the first taxable year, in
accordance with the REMIC Provisions; (c) prepare and forward, or cause to be
prepared and forwarded, to the Certificateholders all information reports
(including, without limitation, the information required in connection with the
computation of the present value of anticipated excess inclusions as required by
ss. 1.860E-2(a)(5) of the REMIC Provisions) as and when required to be provided
to them in accordance with the REMIC Provisions; (d) conduct the affairs of the
Trust Fund at all times that REMIC I Regular Interests or REMIC II Certificates
are

                                       46
<PAGE>

outstanding so as to maintain the status of each of REMIC I and REMIC II as a
REMIC under the REMIC Provisions; and (e) not knowingly or intentionally take
any action or omit to take any action that would cause the termination of the
REMIC status of either REMIC I or REMIC II.

     The Servicer may enter into sub-servicing agreements with third parties
with respect to any of its respective obligations hereunder, provided, that any
such agreement shall be consistent with the provisions of this Agreement. Any
such sub-servicing agreement may permit the sub-servicer to delegate its duties
to agents or subcontractors so long as the related agreements or arrangements
with such agents or subcontractors are consistent with the provisions of this
Section 3.1(c).

     Any sub-servicing agreement, and any other transactions or services
relating to the Loans involving a sub-servicer, including (if applicable) the
Depositor in its capacity as sub-servicer under a sub-servicing agreement and
not in its capacity as a party to this Agreement, shall be deemed to be between
the Servicer and such sub-servicer (including the Depositor) alone, and the
Trustee and the Certificateholders shall not be deemed parties thereto and shall
have no claims, rights, obligations, duties or liabilities with respect to the
sub-servicer, except as set forth in Section 3.1(d).

     In the event that the Trustee assumes the servicing obligations of the
Servicer (including by reason of an Event of Default which is not cured by the
Servicer within the time permitted hereunder), upon request of the Trustee, the
Servicer shall at its own expense deliver to the Trustee all documents and
records relating to any sub-servicing agreement and the Loans then being
serviced thereunder and an accounting of amounts collected and held by it, if
any, and will otherwise use its best efforts to effect the orderly and efficient
transfer of any sub-servicing agreement to the Trustee.

     (c) Costs incurred by the Servicer in effectuating the timely payment of
taxes and assessments on the Mortgaged Property securing a Mortgage Note shall
be recoverable by the Servicer pursuant to Section 3.3. The Servicer shall
ensure all such taxes and assessments are timely paid.

     The Servicer, as initial servicer, shall pay all of its costs and proven
damages incurred with respect to or arising out of any allegation of impropriety
in its servicing of the Loans. Further, the Servicer shall not be entitled to
reimbursement or indemnification from either the Trust Fund or the
Certificateholders with respect to any such costs, claims and damages.

     (d) Notwithstanding any sub-servicing agreement, any of the provisions of
this Agreement relating to agreements or arrangements between the Servicer and
any Person (including the Depositor) acting as sub-servicer (or its agents or
subcontractors) or any reference to actions taken through any Person (including
the Depositor) acting as sub-servicer or otherwise, the Servicer shall remain
obligated and primarily liable to the Trustee and Certificateholders for the
servicing and administering of the Loans in accordance with the provisions of
this Agreement without diminution of such obligation or liability by virtue of
such sub-servicing agreements or arrangements or by virtue of indemnification
from the Depositor or any other Person acting as sub-servicer (or its agents or
subcontractors) to the same extent and under the same terms and conditions as if
the Servicer alone were servicing and administering

                                       47
<PAGE>

the Loans. The Servicer shall be entitled to enter into an agreement with any
sub-servicer providing for indemnification of the Servicer by such sub-servicer
(including the Depositor and the Trustee), and nothing contained in this
Agreement shall be deemed to limit or modify such indemnification, but no such
agreement for indemnification shall be deemed to limit or modify this Agreement.

     Section 3.2 Collection of Certain Loan Payments; Custodial Account for P&I.

     (a) The Servicer shall make reasonable efforts to collect all payments
called for under the terms and provisions of the Loans, and shall, to the extent
such procedures shall be consistent with this Agreement, follow such collection
procedures as it follows with respect to conventional mortgage loans it services
for itself and any of its Affiliates; provided, however, that the Servicer
agrees not to permit any modification with respect to any Loan that would change
the manner in which the Mortgage Interest Rate is computed, forgive any
principal or interest or change the term of such Loan. Consistent with the
foregoing, the Servicer may in its discretion (i) waive any assumption fee, late
payment charge or other charge in connection with a Loan, and (ii) arrange a
schedule, running for no more than 180 days after the scheduled Due Date, for
payment of any installment on any Mortgage Note or after the due date of any
other payment due under the related Mortgage Note for the liquidation of
delinquent items, provided, that the Servicer shall continue to be obligated to
make Advances in accordance with Section 4.3 during the continuance of such
period. With respect to any Loans which provide for the right of the holder
thereof to call for early repayment thereof at times specified therein, neither
the Trustee nor the Servicer shall exercise any such right, except that the
Trustee shall exercise such right at the written direction of the Servicer set
forth in an Officer's Certificate in connection with a default under the related
Note. Notwithstanding anything herein to the contrary, neither the Servicer nor
any other party may take any action that would cause a "significant
modification" of any Loan within the meaning of the REMIC Provisions that would
cause REMIC I or REMIC II to fail to qualify as a REMIC at any time or cause a
tax to be imposed on the Trust Fund under the REMIC Provisions.

     (b) The Servicer shall establish and maintain a separate account as set
forth in Article I (the "Custodial Account for P&I"), and shall on the Closing
Date credit any amounts representing scheduled payments of principal and
interest due after the Cut-off Date but received by the Servicer on or before
the Closing Date, and thereafter on a daily basis the following payments and
collections received or made by it (other than in respect of principal of and
interest on the Loans due on or before the Cut-off Date):

         (i) All Mortgagor payments on account of principal, including Principal
     Prepayments on the Loans;

         (ii) All Mortgagor payments on account of interest on the Loans, which
     may be net of that portion thereof which the Servicer is entitled to retain
     as Servicing Fees (adjusted for any amounts related to Compensating
     Interest) pursuant to Section 3.9, as adjusted pursuant to Section 4.6;

         (iii) All net Liquidation Proceeds;

                                       48
<PAGE>

         (iv) All Insurance Proceeds received by the Servicer, other than
     proceeds to be applied to the restoration or repair of the property subject
     to the related Mortgage or released to the Mortgagor in accordance with the
     Servicer's normal servicing procedures, and all amounts deposited by the
     Servicer with respect to the failure to maintain flood or fire and hazard
     insurance policies, pursuant to Section 3.5;

         (v) All repurchase proceeds from the repurchase of a Loan pursuant to a
     Purchase Obligation;

         (vi) any amounts required to be deposited pursuant to Section 3.2(c) in
     connection with net losses realized on Eligible Investments with respect to
     funds held in the Custodial Account for P&I;

         (vii) all income and gain realized from any investment of the funds in
     the Custodial Account for P&I in Eligible Investments;

         (viii) all net income from the renting of REO Property pursuant to
     Section 3.7(c); and

         (ix) All other amounts required to be deposited in the Custodial
     Account for P&I pursuant to this Agreement.

     (c) The Servicer may invest the funds in the Custodial Account for P&I in
Eligible Investments which shall mature not later than the Business Day
preceding the next Distribution Date unless the Custodial Account for P&I is
maintained with the Trustee in which case they may mature on the Distribution
Date. The Eligible Investments may not be sold or disposed of prior to their
maturity. All such Eligible Investments shall be made in the name of the
Servicer (in its capacity as such) or its nominee. All income and gain realized
from any such investment shall be for the benefit of the Servicer, and shall be
payable to the Servicer. The amount of any losses incurred in respect of any
such investments shall be deposited in the Custodial Account for P&I by the
Servicer, out of its own funds immediately as realized without right to
reimbursement therefor.

     (d) The foregoing requirements for deposit in the Custodial Account for P&I
shall be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of those described in the
last paragraph of this Section 3.2 and payments in the nature of late payment
charges or assumption fees need not be deposited by the Servicer in the
Custodial Account for P&I. All funds deposited by the Servicer in the Custodial
Account for P&I shall be held by it in trust in the Custodial Account for P&I
until disbursed in accordance with Section 4.1 or withdrawn in accordance with
Section 3.3; provided, however, that the Servicer shall withdraw such funds and
deposit them in such manner as to not result in a downgrading or withdrawal of
the rating then assigned to the Certificates by each Rating Agency. If the
Servicer deposits in the Custodial Account for P&I any amount not required to be
deposited therein, it may at any time withdraw such amount from the Custodial
Account for P&I pursuant to Section 3.3(i) of this Agreement.

     Certain of the Loans may provide for payment by the Mortgagor of amounts to
be used for payment of taxes, assessments, hazard or other insurance premiums or
comparable items for

                                       49
<PAGE>

the account of the Mortgagor. The Servicer may deal with these amounts in
accordance with its normal servicing procedures.

     Section 3.3 Permitted Withdrawals from the Custodial Account for P&I. The
Servicer may, from time to time, make withdrawals from the Custodial Account for
P&I and the Certificate Account for the following purposes:

         (a) to reimburse itself for Advances made by or on behalf of it
     pursuant to Section 3.4 or 4.3, the Servicer's right to reimburse itself
     pursuant to this subclause (a) being limited to (i) amounts received on or
     in respect of particular Loans (including, for this purpose, Liquidation
     Proceeds and Insurance Proceeds which represent late recoveries of payments
     of principal and/or interest respecting which any such Advance was made and
     any net income received from the renting of REO Property pursuant to
     Section 3.7(c)) and (ii) amounts in the Custodial Account for P&I held for
     future distribution or withdrawal, such amounts referred to in clause (ii)
     of this subclause (a) to be replaced by the Servicer to the extent that
     funds in the Custodial Account for P&I on a future Withdrawal Date are less
     than the payment required to be made to the Certificate Account therefrom
     as of such future Distribution Date;

         (b) (i) to reimburse itself from Liquidation Proceeds for Liquidation
     Expenses, (ii) for amounts expended by it pursuant to Section 3.7 in good
     faith in connection with the restoration of damaged property and (iii) to
     the extent that Liquidation Proceeds after such reimbursement are in excess
     of the Principal Balance of the related Loan together with accrued and
     unpaid interest thereon at the applicable Pass-Through Rate to the date of
     such liquidation, net of any related Advances which were unreimbursed prior
     to the receipt of such Liquidation Proceeds, to pay to itself any unpaid
     Servicing Fees, and any assumption fees, late payment charges or other
     Mortgage charges on the related Loan;

         (c) to pay to itself from any Mortgagor payment as to interest or other
     recovery with respect to a particular Loan, to the extent permitted by this
     Agreement, that portion of any payment as to interest in excess of interest
     at the applicable Pass-Through Rate which the Servicer is entitled to
     retain as Servicing Fees pursuant to Section 3.9 or otherwise;

         (d) to reimburse itself for expenses incurred by and recoverable by or
     reimbursable to it pursuant to Section 3.1 or 3.5 after the related
     Mortgagor has reimbursed the Trust Fund for such expenses or following
     liquidation of the related Loan, or pursuant to Section 6.3;

         (e) to pay to itself with respect to each Loan or property acquired in
     respect thereof that has been repurchased pursuant to Section 2.2 or 2.3 or
     purchased by the Class R Certificateholders pursuant to Section 9.1 all
     amounts received thereon and not distributed as of the date on which the
     related Principal Balance is determined;

         (f) to reimburse itself for any Nonrecoverable Advances;

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<PAGE>

         (g) to disburse to the Trustee in order that the Trustee may make
     payments to Certificateholders in the amounts and in the manner provided
     for in Section 4.1;

         (h) to pay itself any net interest or other income earned and received
     on or investment income received with respect to funds in the Custodial
     Account for P&I; and

         (i) to make payments to itself or others pursuant to any provision of
     this Agreement and to remove any amounts not required to be deposited
     therein and to clear and terminate the Custodial Account for P&I pursuant
     to Section 9.1.

     Since in connection with withdrawals pursuant to subclauses (a), (b), (c)
and (e) the Servicer's entitlement thereto is limited to collections or other
recoveries on the related Loan, the Servicer shall keep and maintain a separate
accounting for each Loan for the purpose of justifying any withdrawal from the
Custodial Account for P&I pursuant to such subclauses.

     The Servicer shall make the withdrawal referred to in subclause (g) above
and shall deposit the amount so withdrawn into the Certificate Account prior to
4:00 P.M. New York City time on each related Withdrawal Date.

     The Servicer may establish, or cause to be established, two or more
Custodial Accounts for P&I into which funds collected by the Servicer or its
subservicers in connection with the Loans may be deposited. Funds collected in
connection with mortgage loans other than the Loans may also be deposited in the
Custodial Accounts for P&I and co-mingled with collections on the Loans. The
Servicer may, in its discretion, withdraw funds from one Custodial Account for
P&I and deposit such funds into another Custodial Account for P&I prior to the
date such funds must be deposited in the Certificate Account.

     Section 3.4 Taxes, Assessments and Similar Items; Escrow Accounts.

     (a) The Servicer shall establish and maintain one or more accounts (each,
an "Escrow Account") into which all Escrow Payments shall be deposited and in
which all Escrow Payments shall be retained. Escrow Accounts shall be Eligible
Accounts, and funds in the Escrow Account may be invested in Eligible
Investments. Withdrawals of amounts from an Escrow Account may be made only to:
(i) effect payment of taxes, assessments, insurance premiums and comparable
items; (ii) refund to Mortgagors any sums that are determined to be overages;
(iii) reimbursement to the Servicer for any cost incurred in paying taxes,
insurance premiums and assessments or comparable items; (iv) pay interest, if
required and as described below, to Mortgagors on balances in the Escrow
Account; (v) withdraw interest or other income which may lawfully be retained by
the Trust Fund, for deposit into the Certificate Account; or (vi) clear and
terminate the Escrow Account at the termination of this Agreement in accordance
with Section 9.1. Unless otherwise required by applicable law, any interest
earned on funds in Escrow Accounts shall be remitted to the related Mortgagors
if required by the related Mortgage Note or otherwise to the Servicer as
additional servicing compensation.

     (b) With respect to each Loan, the Servicer shall maintain, or cause to be
maintained, accurate records with respect to each related Mortgaged Property
reflecting the status of taxes, assessments and other similar items that are or
may become a lien on the related Mortgaged Property and the status of insurance
premiums payable with respect thereto. The Servicer shall

                                       51
<PAGE>

require that payments for taxes, assessments, insurance premiums and other
similar items be made by the Mortgagor at the time they first become due. If a
Mortgagor fails to make any such payment on a timely basis, the Servicer shall
advance, or cause to be advanced, the amount of any shortfall unless the
Servicer determines in its good faith judgment that such advance would not be
ultimately recoverable from future payments and collections on the related Loan
(including without limitation Insurance Proceeds and Liquidation Proceeds), or
otherwise. The Servicer shall be entitled to reimbursement of advances made
pursuant to the preceding sentence, together with interest thereon at the
Federal Funds Rate, from amounts received on or in respect of the related Loan
respecting which such advance was made or if such advance has become
nonrecoverable, in either case to the extent permitted by Section 3.3 of this
Agreement. No costs incurred by the Servicer in effecting the payment of taxes
and assessments on the Mortgaged Properties shall, for the purpose of
calculating distributions to Certificateholders, be added to the amount owing
under the related Loans, notwithstanding that the terms of such Loans so permit.

     The Servicer may establish, or cause to be established, two or more Escrow
Accounts into which funds collected by the Servicer or its subservicers in
connection with the Loans may be deposited. Funds collected in connection with
mortgage loans other than the Loans may also be deposited in the Escrow Accounts
and co-mingled with collections on the Loans. The Servicer may, in its
discretion, withdraw funds from one Escrow Account and deposit such funds into
another Escrow Account prior to the date such funds must be used to make Escrow
Payments.

     Section 3.5 Maintenance of Insurance. The Servicer shall also cause to be
maintained for each Loan fire and hazard insurance with extended coverage as is
customary in the area where the Mortgaged Property is located in an amount which
is at least equal to the lesser of (i) the Principal Balance of such Loan or
(ii) the replacement value costs of improvements securing such Loan. The
Servicer shall cause to be maintained fire and hazard insurance with extended
coverage on each REO Property in an amount which is at least equal to the
greater of (i) an amount not less than is necessary to avoid the application of
any co-insurance clause contained in the related fire and hazard insurance
policy or (ii) the replacement cost of the improvements which are a part of such
property. The Servicer shall also cause to be maintained for each Loan with a
Loan-to-Value Ratio greater than 80% a primary mortgage insurance policy which
will cover at least 75% of the original fair market value of the related
Mortgaged Property until such time as the principal balance of such Loan is
reduced to 80% of the current fair market value or otherwise in accordance with
applicable law. The Servicer on behalf of the Trustee as Mortgagee shall
maintain or cause the related Mortgagor to maintain for each Loan such other
insurance on the related Mortgaged Property as may be required by the terms of
the related Mortgage Note. If the Mortgaged Property is in an area identified in
the Federal Register by the Flood Emergency Management Agency as having special
flood hazards the Servicer will cause to be maintained a flood insurance policy
meeting the requirements of the current guidelines of the Federal Insurance
Administration with a generally acceptable insurance carrier, in an amount
representing coverage not less than the least of (i) the full insurable value,
(ii) the maximum amount of insurance which is available under the Flood Disaster
Protection Act of 1973, and (iii) the Principal Balance of the related Loan. The
Servicer shall also maintain fire and hazard insurance with extended coverage
and, if applicable, flood insurance on property acquired upon foreclosure, or by
deed in lieu of foreclosure, of any Loan in an amount that is at least equal to
the lesser of (i) the maximum insurable value of the improvements which are a
part of such

                                       52
<PAGE>

property and (ii) the principal balance owing on such Loan at the time of such
foreclosure or grant of deed in lieu of foreclosure plus accrued interest and
related Liquidation Expenses. If an REO Property was located at the time of
origination of the related Loan in a federally designated special flood hazard
area, the Servicer will obtain flood insurance in respect thereof providing
substantially the same coverage as described in the preceding sentence. If at
any time during the term of this Agreement a recovery under a flood or fire and
hazard insurance policy in respect of an REO Property is not available but would
have been available if such insurance were maintained thereon in accordance with
the standards applied to Mortgaged Properties described herein, the Servicer
shall either (i) immediately deposit into the Custodial Account for P&I from its
own funds the amount that would have been recovered or (ii) apply to the
restoration and repair of the property from its own funds the amount that would
have been recovered, if such application would be consistent with the servicing
standard set forth in Section 3.1. It is understood and agreed that such
insurance shall be with insurers approved by the Servicer and that no earthquake
or other additional insurance is to be required of any Mortgagor, other than
pursuant to such applicable laws and regulations or policies of the Servicer as
shall at any time be in force and as shall require such additional insurance.
Pursuant to Section 3.2, any amounts collected by the Servicer under any
insurance policies maintained pursuant to this Section 3.5 (other than amounts
to be applied to the restoration or repair of the property subject to the
related Mortgage or released to the Mortgagor in accordance with the Servicer's
normal servicing procedures) shall be deposited into the Custodial Account for
P&I, subject to withdrawal pursuant to Section 3.3. Any cost incurred by the
Servicer in maintaining any such insurance shall be recoverable by the Servicer
pursuant to Section 3.3. In the event that the Servicer shall obtain and
maintain a blanket policy issued by an insurer that qualifies under the
guidelines set forth for the Servicer by FNMA or FHLMC, insuring against hazard
losses on all of the Loans, then, to the extent such policy provides coverage in
an amount equal to the unpaid principal balance on the Loans without
co-insurance and otherwise complies with all other requirements set forth in the
first paragraph of this Section 3.5, it shall conclusively be deemed to have
satisfied its obligation as set forth in such first paragraph, it being
understood and agreed that such policy may contain a deductible clause, in which
case the Servicer shall, in the event that there shall not have been maintained
on the related mortgaged or acquired property an insurance policy complying with
the first paragraph of this Section 3.5 and there shall have been a loss which
would have been covered by such a policy had it been maintained, be required to
deposit from its own funds into the Custodial Account for P&I or apply to the
restoration of the property the amount not otherwise payable under the blanket
policy because of such deductible clause.

     The Servicer shall obtain and maintain at its own expense throughout the
term of this Agreement a blanket fidelity bond and an errors and omissions
insurance policy with broad coverage with responsible companies covering the
Servicer's officers and employees and other persons acting on behalf of the
Servicer in connection with its activities under this Agreement. Any such
fidelity bond and errors and omissions insurance shall provide an amount of
coverage and will maintain such coverage at a level which will permit the
Servicer to continue to be a FNMA or a FHLMC-qualified Servicer and shall
protect and insure the Servicer against losses, including forgery, theft,
embezzlement, fraud, errors and omissions and negligent acts of such persons. No
provision of this Section 3.5 requiring such fidelity bond and errors and
omissions insurance shall diminish or relieve the Servicer from its duties and
obligations as set forth in this Agreement.

                                       53
<PAGE>

     Section 3.6 Enforcement of Due-on-Sale Clauses; Assumption and Substitution
Agreements. In any case in which property subject to a Mortgage is conveyed by
the Mortgagor, the Servicer will enforce any due-on-sale clause contained in the
related Mortgage Note or Mortgage, to the extent permitted under applicable law
and governmental regulations, but only to the extent that such enforcement will
not adversely affect or jeopardize coverage under any related insurance policy
or result in legal action by the Mortgagor. Subject to the foregoing, the
Servicer is authorized to take or enter into an assumption or substitution
agreement from or with the Person to whom such property has been or is about to
be conveyed. The Servicer is also authorized to release the original Mortgagor
from liability upon the Loan and substitute the new Mortgagor as obligor
thereon. In connection with such assumption or substitution, the Servicer shall
apply such underwriting standards and follow such practices and procedures as
shall be normal and usual and as it applies to mortgage loans owned solely by it
or any of its Affiliates. The Servicer shall notify the Trustee that any such
assumption or substitution agreement has been completed by forwarding to the
Trustee the original copy of such assumption or substitution agreement, which
copy shall be added by the Trustee to the related Mortgage File and shall, for
all purposes, be considered a part of such Mortgage File to the same extent as
all other documents and instruments constituting a part thereof. In connection
with any such assumption or substitution agreement, the interest rate of the
related Mortgage Note shall not be changed. Any fee collected by the Servicer
for entering into an assumption or substitution of liability agreement will be
retained by the Servicer as servicing compensation.

     Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any conveyance by the
Mortgagor of the Mortgaged Property or any assumption of a Loan by operation of
law which the Servicer in good faith determines it may be restricted by law from
preventing, for any reason whatsoever.

     Section 3.7 Realization upon Defaulted Loans.

     (a) Consistent with the servicing standard set forth in Section 3.1 and
with a view to the best economic interest of the Trust Fund, the Servicer shall
foreclose upon or otherwise comparably convert (which may include acquisition of
an REO Property) the Mortgaged Properties securing such of the Loans as come
into and continue in default and as to which no satisfactory arrangements can be
made for collection of delinquent payments pursuant to Section 3.2. In
connection with such foreclosure or other conversion, the Servicer shall follow
such practices and procedures as it shall deem necessary or advisable and as
shall be normal and usual in its general mortgage servicing activities. The
foregoing is subject to the proviso that the Servicer shall not be required to
expend its own funds in connection with any foreclosure or to restore any
damaged property unless it shall determine (i) that such foreclosure and/or
restoration expenses will increase the Liquidation Proceeds to
Certificateholders after reimbursement to itself for such expenses and (ii) that
such expenses will be recoverable to it through Liquidation Proceeds (respecting
which it shall have priority for purposes of withdrawal from the Custodial
Account for P&I pursuant to Section 3.3). Any gain on foreclosure or other
conversion of a Liquidated Loan shall be distributed to the Class R
Certificateholders, but only to the extent that such gain is not necessary to
make distributions to the Certificateholders of the other Classes of
Certificates. The Servicer shall be responsible for all other costs and expenses
incurred by it in any such proceedings; provided, however, that it shall be
entitled to reimbursement thereof (as

                                       54
<PAGE>

well as any Servicing Fees and other amounts due it, if any), to the extent, but
only to the extent, that withdrawals from the Custodial Account for P&I with
respect thereto are permitted under Section 3.3.

     (b) Prior to any such foreclosure, the Servicer may, at its option,
repurchase any Loan which is 90 days or more delinquent and which the Servicer
determines in good faith would otherwise become subject to foreclosure
proceedings or any Loan as to which the Mortgagor tenders a deed in lieu of
foreclosure at a price equal to the outstanding Principal Balance of the Loan
plus accrued interest at the applicable Pass-Through Rate to the next Due Date.
Any such repurchase shall be deemed a Principal Prepayment for purposes of this
Agreement and all amounts in respect thereof shall be deposited into the
Custodial Account for P&I pursuant to Section 3.2(b).

     (c) The Trust Fund shall not acquire any real property (or personal
property incident to such real property) except in connection with a default or
imminent default of a Loan. Based on a report prepared by an Independent Person
who regularly conducts environmental audits that the Mortgaged Property for
which foreclosure proceedings are contemplated is not in compliance with
applicable environmental laws, or there are circumstances present at such
Mortgaged Property relating to the use, management or disposal of any hazardous
materials, wastes, or petroleum based materials for which investigation,
testing, monitoring, containment, clean-up or remediation could be required
under any federal, state or local law or that it would not be in the best
economic interest of the Trust Fund to acquire title to such Mortgaged Property
and further to take such actions as would be necessary and appropriate to effect
such compliance and/or respond to such circumstances, the Servicer will not
conduct such foreclosure proceedings. If the Servicer otherwise becomes aware,
under its customary servicing procedures, of an environmental hazard with
respect to a Loan for which foreclosure proceedings are contemplated, the
Servicer will not conduct such foreclosure proceedings unless it determines in
good faith that the liability associated with the environmental hazard will be
less than the Liquidation Proceeds to be realized from the sale of the related
Mortgaged Property. In the event that the Trust Fund acquires any real property
(or personal property incident to such real property) in connection with a
default or imminent default of a Loan, such REO Property shall be disposed of by
the Trust Fund within three years after its acquisition by the Trust Fund unless
the Trustee shall have received from the Servicer an Opinion of Counsel to the
effect that the holding by the Trust Fund of such REO Property subsequent to
three years after its acquisition will not cause either REMIC I or REMIC II to
fail to qualify as a REMIC under the REMIC Provisions at any time that any REMIC
I Regular Interests or Certificates are outstanding, in which case such REO
Property shall be disposed of as soon as possible by the Trust Fund but in no
event shall be held longer than the maximum period of time during which the
Trust Fund is then permitted to hold such REO Property and allow REMIC I and
REMIC II to remain qualified as REMICs under the REMIC Provisions. The Servicer
shall manage, conserve, protect and operate each such REO Property for the
Certificateholders solely for the purpose of its prompt disposition and sale in
a manner which does not cause such REO Property to fail to qualify as
"foreclosure property" within the meaning of Section 860G(a)(8) of the Code.
Pursuant to its efforts to sell such REO Property, the Servicer shall either
itself or through an agent selected by the Servicer protect and conserve such
REO Property in the same manner and to such extent as is customary in the
locality where such property is located and may, incident to its conservation
and protection of the interests of the Certificateholders, rent the same, or any
part thereof, as the

                                       55
<PAGE>

Servicer deems to be in the best interest of the Servicer and the
Certificateholders for the period prior to the sale of such REO Property. All
proceeds from the renting of such REO Property shall, net of any costs or
expenses of the Servicer in connection therewith, be deposited into the
Custodial Account for P&I pursuant to Section 3.3(b)(ix).

     (d) In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be issued to the Trustee, or to its nominee on behalf of
Certificateholders. Notwithstanding any such acquisition of title and
cancellation of the related Loan, such Loan shall (except for purposes of
Section 9.1) be considered to be a Loan held in the Trust Fund until such time
as the related REO Property shall be sold by the Trust Fund and shall be reduced
only by collections net of expenses. Consistent with the foregoing, for purposes
of all calculations hereunder, so long as such Loan shall be considered to be an
outstanding Loan, it shall be assumed that, notwithstanding that the
indebtedness evidenced by the related Mortgage Note shall have been discharged,
such Mortgage Note and, for purposes of determining the Scheduled Principal
Balance thereof, the related amortization schedule in effect at the time of any
such acquisition of title remain in effect.

     (e) The Servicer shall not acquire for the benefit of the Trust Fund any
personal property pursuant to this Section 3.7 unless either:

         (i) such personal property is incident to real property (within the
     meaning of Section 856(e)(1) of the Code) so acquired by the Servicer for
     the benefit of the Trust Fund; or

         (ii) the Servicer shall have requested and received an Opinion of
     Counsel (which opinion shall be an expense of the Trust Fund) to the effect
     that the holding of such personal property by the Trust Fund will not cause
     the imposition of a tax on the Trust Fund under the REMIC Provisions or
     cause either REMIC I or REMIC II of the Trust Fund to fail to qualify as a
     REMIC at any time that any Certificate is outstanding.

     Section 3.8 Trustee to Cooperate; Release of Mortgage Files. Upon the
payment in full of any Loan, or the receipt by the Servicer of a notification
that the payment in full will be escrowed in a manner customary for such
purposes, the Servicer will immediately notify the Trustee by an Officer's
Certificate (which Officer's Certificate shall include a statement to the effect
that all amounts received in connection with such payment which are required to
be deposited in the Custodial Account for P&I pursuant to Section 3.2 have been
or will be so deposited) and shall by such Officer's Certificate request
delivery to it of the Mortgage File. Upon receipt of such Officer's Certificate
and request, the Trustee shall, not later than the 5th succeeding Business Day,
release or cause to be released the related Mortgage File to the Servicer. Upon
the Trustee's receipt of any release or reconveyance documents or instruments
relating to a Loan paid in full, the Trustee shall, not later than the 5th
succeeding Business Day, execute and return such documents and instruments to
the Servicer. From time to time and as appropriate for the servicing or
foreclosure of any Loan, the Trustee shall, upon written request of the Servicer
and delivery to the Trustee of a trust receipt signed by a Servicing Officer,
release or cause to be released, not later than the 5th succeeding Business Day,
the related Mortgage File to the Servicer and shall execute such documents
furnished to it as shall be necessary to the prosecution of any such
proceedings. Such trust receipt shall obligate the Servicer to return each

                                       56
<PAGE>

and every document previously requested from the Mortgage File to the Trustee
when the need therefor by the Servicer no longer exists unless the Loan shall be
liquidated, in which case, upon receipt of a certificate of a Servicing Officer
similar to that hereinabove specified, the trust receipt shall be released by
the Trustee to the Servicer by delivery to a Servicing Officer and the Trustee
shall have no further responsibility with respect to such Mortgage Files.

     Section 3.9 Servicing Compensation. The Servicer shall be entitled to
retain or, if not retained, to withdraw from the Certificate Account or the
Custodial Account for P&I as servicing compensation its Servicing Fee out of
each payment on account of interest on each Loan, subject to adjustment as
provided in Section 4.6. The Servicer shall also be entitled to payment of
unpaid Servicing Fees with respect to a delinquent Loan out of Liquidation
Proceeds with respect to such Loan, to the extent permitted by Section 3.3(b).
Servicing compensation in the form of assumption fees, late payment charges or
otherwise shall be retained by the Servicer and need not be deposited in the
Custodial Account for P&I. The Servicer shall also be entitled to additional
servicing compensation out of Liquidation Proceeds to the extent provided in
Section 3.3(b). The Servicer shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder (including maintenance
of the blanket fidelity bond and errors and omissions policy required by Section
3.5) and shall not be entitled to reimbursement therefor except as specifically
provided in Sections 3.1, 3.3, 3.5 and 3.7.

     Section 3.10 Reports to the Trustee; Custodial Account for P&I Statements.
On or before 12:00 noon (New York City time) on the second Business Day prior to
each Distribution Date, the Servicer shall deliver or cause to be delivered to
the Trustee or its designee a statement in electronic or written form as may be
agreed upon by the Servicer and the Trustee containing the information described
in Section 4.2 and such other information as may be necessary for the Trustee to
distribute the amounts to be distributed to the Certificateholders by the
Trustee (the "Servicer's Section 3.10 Report"). Not later than 25 days after
each Distribution Date, the Servicer shall forward or cause to be forwarded to
the Trustee a statement, certified by a Servicing Officer, setting forth the
status of the Custodial Account for P&I as of the close of business on the
related Distribution Date, stating that all distributions from the Custodial
Account for P&I required to be made by this Agreement have been made for the
period covered by such statement (or if any required distribution has not been
made, specifying the nature and status thereof) and showing, for the period
covered by such statement, the aggregate of deposits into and withdrawals from
the Custodial Account for P&I for each category of deposit specified in Section
3.2 and each category of withdrawal specified in Section 3.3. Such statement
shall also include information as to the aggregate Principal Balance of all of
the Loans as of the last day of the calendar month immediately preceding such
Distribution Date. Copies of such statement shall be provided to any
Certificateholder upon request by the Servicer, or by the Trustee so long as the
Trustee has received the report as stipulated above at the Servicer's expense if
the Servicer shall fail to provide such copies.

     Section 3.11 Annual Statement as to Compliance. The Servicer will deliver
to the Trustee, on or before April 30 of each year, beginning April 30, 2002, an
Officer's Certificate stating as to each signer thereof, that (i) a review of
the activities of the Servicer during the preceding calendar year and of
performance under this Agreement has been made under such officer's supervision,
and (ii) to the best of such officer's knowledge, based on such review, the
Servicer has fulfilled all of its obligations under this Agreement throughout
such year, or if there

                                       57
<PAGE>

has been a default in the fulfillment of any such obligation, specifying each
such default known to such officer and the nature and status thereof. Copies of
such statement shall be provided to each Rating Agency and to any
Certificateholder upon request by the Servicer, or by the Trustee at the
Servicer's expense.

     Section 3.12 Annual Independent Public Accountants' Servicing Report. On or
before April 30 of each year, beginning April 30, 2002, the Servicer, at its
expense, shall cause a firm of independent public accountants who are members of
the American Institute of Certified Public Accountants to furnish a statement to
the Trustee to the effect that, in connection with the firm's examination of the
financial statements as of the previous December 31 of the Servicer's parent
corporation (which shall include a limited examination of the Servicer's
financial statements), nothing came to their attention that indicated that the
Servicer was not in compliance with Section 3.02, Section 3.03, Section 3.04,
Section 3.05, Section 3.11, Section 3.12 and Section 3.13 of this Agreement,
except for (i) such exceptions as such firm believes to be immaterial, and (ii)
such other exceptions as are set forth in such statement. Copies of such
statement shall be provided to Certificateholders upon request by the Servicer,
or by the Trustee at the Servicer's expense.

     Section 3.13 Access to Certain Documentation and Information Regarding the
Loans. The Servicer shall provide access to the Trustee or to its designees at
its request, and to Certificateholders which are savings and loan associations,
banks or insurance companies, the OTS, the FDIC and the supervisory agents and
examiners of the OTS and the FDIC or examiners of any other federal or state
banking or insurance regulatory authority to the documentation regarding the
Loans if so required by applicable regulations of the OTS or other regulatory
authority, such access to be afforded without charge but only upon reasonable
request and during normal business hours at the offices of the Servicer
designated by it. The Trustee or its designee may without charge copy any
document or electronic record maintained by the Servicer hereunder.

     Section 3.14 [Reserved].

     Section 3.15 Sale of Defaulted Loans and REO Properties.

     (a) The Servicer may then offer to sell to any Person any Defaulted Loan or
any REO Property or, subject to the following sentence, purchase any such
Defaulted Loan or REO Property (in each case at the Repurchase Price therefor),
but shall in any event, so offer to sell any REO Property no later than the time
determined by the Servicer to be sufficient to result in the sale of such REO
Property within the period specified in Section 3.7(c). The Servicer shall
accept the highest bid received from any Person for any Defaulted Loan or any
REO Property in an amount at least equal to the Purchase Price therefor or, at
its option, if it has received no bid at least equal to the Purchase Price
therefor, purchase the Defaulted Loan or REO Property at the Purchase Price.

     In the absence of any such bid or purchase by the Servicer, the Servicer
shall accept the highest bid received from any Person that is determined by the
Servicer to be a fair price for such Defaulted Loan or REO Property, if the
highest bidder is a Person other than an Interested Person, or is determined to
be such a price by the Trustee, if the highest bidder is an Interested

                                       58
<PAGE>

Person. Notwithstanding anything to the contrary herein, neither the Trustee, in
its individual capacity, nor any of its Affiliates may bid for or purchase any
Defaulted Loan or any REO Property pursuant hereto.

     The Servicer shall not be obligated by either of the foregoing paragraphs
or otherwise to accept the highest bid if the Servicer determines, in accordance
with the servicing standard stated in Section 3.1, that rejection of such bid
would be in the best interests of the Certificateholders. In addition, the
Servicer may accept a lower bid if it determines, in accordance with the
servicing standard stated in Section 3.1, that acceptance of such bid would be
in the best interests of the Certificateholders (for example, if the prospective
buyer making the lower bid is more likely to perform its obligations, or the
terms offered by the prospective buyer making the lower bid are more favorable).
In the event that the Servicer determines with respect to any REO Property that
the bids being made with respect thereto are not in the best interests of the
Certificateholders and that the end of the period referred to in Section 3.7(c)
with respect to such REO Property is approaching, the Servicer shall seek an
extension of such period in the manner described in Section 3.7(c).

     (b) In determining whether any bid received from an Interested Person
represents a fair price for any Defaulted Loan or any REO Property, the Trustee
may conclusively rely on the opinion of an Independent appraiser or other expert
in real estate matters retained by the Trustee the expense of which shall be an
expense of the Trust Fund. In determining whether any bid constitutes a fair
price for any Defaulted Loan or any REO Property, the Servicer or the Trustee
(or, if applicable, such appraiser) shall take into account, and any appraiser
or other expert in real estate matters shall be instructed to take into account,
as applicable, among other factors, the period and amount of any delinquency on
the affected Defaulted Loan, the physical condition of the related Mortgaged
Property or such REO Property, the state of the local economy and the Trust
Fund's obligation to dispose of any REO Property within the time period
specified in Section 3.7(c).

     (c) The Servicer shall act on behalf of the Trust Fund in negotiating and
taking any other action reasonably necessary or appropriate in connection with
the sale of any Defaulted Loan or REO Property, including the collection of all
amounts payable in connection therewith. Any sale of a Defaulted Loan or any REO
Property shall be without recourse to, or representation or warranty by, the
Trustee, the Depositor, the Servicer or the Trust Fund (except that any contract
of sale and assignment and conveyance documents may contain customary warranties
of title, so long as the only recourse for breach thereof is to the Trust Fund),
and, if consummated in accordance with the terms of this Agreement, neither the
Servicer, the Depositor nor the Trustee shall have any liability to the Trust
Fund or any Certificateholder with respect to the purchase price therefor
accepted by the Servicer or the Trustee.

     (d) The proceeds of any sale after deduction of the expenses of such sale
incurred in connection therewith shall be promptly deposited in the Custodial
Account for P&I in accordance with Section 3.2(b).

     Section 3.16 Delegation of Duties. In the ordinary course of business, the
Servicer or the Trustee may at any time delegate any duties hereunder to any
Person who agrees to conduct such duties in accordance with the applicable terms
of this Agreement. In case of such

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delegation, the Servicer or the Trustee shall supervise, administer, monitor and
oversee the activities of such Person hereunder to insure that such Person
performs such duties in accordance herewith and shall be responsible for the
acts and omissions of such Person to the same extent as it is responsible for
its own actions or omissions hereunder. Any such delegations shall not relieve
the Servicer or the Trustee of its liability and responsibility with respect to
such duties, and shall not constitute a resignation within the meaning of
Section 6.4 hereof and shall be revocable by any successor Servicer or the
Trustee.

     Section 3.17 [Reserved].

     Section 3.18 [Reserved].

     Section 3.19 Appointment of a Special Servicer. The Servicer may enter into
a special servicing agreement with an unaffiliated holder of Subordinate
Certificates or a holder of a class of securities representing interests in such
Class of Subordinate Certificates, such agreement to be (i) substantially in the
form of Exhibit R hereto or (ii) subject to each Rating Agency's acknowledgment
that the ratings of the Certificates in effect immediately prior to the entering
into of such agreement would not be qualified, downgraded or withdrawn and the
Certificates would not be placed on credit review status (except for possible
upgrading) as a result of such agreement. Any such agreement may contain
provisions whereby such holder may instruct the Servicer to commence or delay
foreclosure proceedings with respect to delinquent Loans and may contain
provisions for the deposit of cash by the holder that would be available for
distribution to Certificateholders if Liquidation Proceeds are less than they
otherwise may have been had the Servicer acted in accordance with its normal
procedures.

     Section 3.20 Allocation of Realized Losses. Prior to each Distribution
Date, the Servicer shall determine the amount of Realized Losses, if any, with
respect to each Loan. All Realized Losses, except for Excess Losses, will be
allocated as follows: (i) for losses allocable to principal (a) first, to the
Subordinate Certificates in reverse order of seniority until each of their Class
Principal Balances have been reduced to zero and (b) second, to the Senior
Certificates, by Pro Rata Allocation, until the Certificate Principal Balances
thereof have been reduced to zero; provided, however, that prior to the Credit
Support Depletion Date if the loss is recognized with respect to a Discount
Loan, the Discount Fraction of such loss will first be allocated to the Class
A-P Certificates and the remainder of such loss will be allocated as described
above in this clause (i); and (ii) for losses allocable to interest (a) first,
to the Subordinate Certificates in reverse order of seniority, in reduction of
accrued but unpaid interest thereon and then in reduction of the Class Principal
Balance of such Certificates and (b) second, to the Senior Certificates, by Pro
Rata Allocation, until the Certificate Principal Balances thereof have been
reduced to zero.

     Excess Losses shall be allocated among the Senior Certificates and the
Subordinate Certificates by Pro Rata Allocation.

     On each Distribution Date, after giving effect to the principal
distributions and allocations and reimbursement of losses as provided in this
Agreement (without regard to this paragraph), if the Aggregate Certificate
Principal Balance of all outstanding Classes of Certificates exceeds the
aggregate principal balance of the Loans, after deduction of (i) all

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principal payments due on or before the Cut-Off Date in respect of each such
Loan whether or not paid and (ii) all amounts of principal in respect of each
such Loan that have been received or advanced and included in the Available
Distribution Amount, and all losses in respect of such Loans that have been
allocated to the Certificates, on such Distribution Date or prior Distribution
Dates, then such excess will be deemed a principal loss and will be allocated
(i) first, to the Subordinate Certificates in reverse order of seniority until
each of their Class Principal Balances has been reduced to zero, and (ii)
second, to the Senior Certificates, other than the Interest Only Certificates,
pro rata according to their Certificate Principal Balances or, in the case of
the Accrual Certificates, the Certificate Principal Balance of that Accrual
Certificate on the Closing Date, if lower in reduction thereof (except that all
losses allocable to the Class A-12 Certificates will be allocated to the Class
A-13 Certificates until the Class A-13 Class Principal Balance has been reduced
to zero).

                                   ARTICLE IV

                    PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES;
                             STATEMENTS AND REPORTS

     Section 4.1 Distributions to Certificateholders. (a) The Trustee shall
establish and maintain a separate account as set forth in Article I (the
"Certificate Account"), the purpose of which is to accept deposits from the
Servicer and to make distributions to the Certificateholders of the amounts set
forth in this Section 4.1.

     (b) On each Distribution Date, the Trustee or the Paying Agent, if any,
shall (i) withdraw from the Certificate Account the Available Distribution
Amount for such Distribution Date and shall distribute to each
Certificateholder, from the amount so withdrawn and to the extent of the
Available Distribution Amount, such Certificateholder's share (based on the
aggregate Percentage Interests represented by the Certificates of the applicable
Class held by such Certificateholder) of the amounts and in the order of
priority as set forth in the definition of "Certificate Distribution Amount",
and (ii) distribute Excess Liquidation Proceeds to the Class R
Certificateholders by wire transfer in immediately available funds for the
account of the Certificateholder, or by any other means of payment acceptable to
each Certificateholder of record on the immediately preceding Record Date (other
than as provided in Section 9.1 respecting the final distribution), as specified
by each such Certificateholder and at the address of such Holder appearing in
the Certificate Register; provided, that such distributions in (i) and (ii)
above shall be made in accordance with written statements received from the
Servicer pursuant to Section 4.2.

     (c) All reductions in the Certificate Principal Balance of a Certificate
effected by distributions of principal or allocations of Realized Losses with
respect to Loans made on any Distribution Date shall be binding upon all Holders
of such Certificate and of any Certificate issued upon the registration of
transfer or exchange therefor or in lieu thereof, whether or not such
distribution is noted on such Certificate. The final distribution of principal
of each Certificate (and the final distribution with respect to the Class R
Certificates upon termination of the Trust Fund) shall be payable in the manner
provided above only upon presentation and surrender thereof on or after the
Distribution Date therefor at the office or agency of the Trustee specified in
the notice delivered pursuant to Section 4.1(d) or Section 9.1.

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     (d) Whenever, on the basis of Curtailments, Payoffs and Monthly Payments on
the Loans and Insurance Proceeds and Liquidation Proceeds received and expected
to be received during the applicable Prepayment Period, the Trustee believes, or
the Servicer has notified the Trustee that it believes, that the entire
remaining unpaid Class Principal Balance of any Class of Certificates will
become distributable on the next Distribution Date, the Trustee shall, no later
than the Determination Date of the month of such Distribution Date, mail or
cause to be mailed to each Person in whose name a Certificate to be so retired
is registered at the close of business on the Record Date, to the Underwriters
and to each Rating Agency a notice to the effect that:

         (i) it is expected that funds sufficient to make such final
     distribution will be available in the Certificate Account on such
     Distribution Date, and

         (ii) if such funds are available, (A) such final distribution will be
     payable on such Distribution Date, but only upon presentation and surrender
     of such Certificate at the office or agency of the Certificate Registrar
     maintained for such purpose (the address of which shall be set forth in
     such notice), and (B) no interest shall accrue on such Certificate after
     such Distribution Date.

     Section 4.2 Statements to Certificateholders. (a) Not later than 12:00 noon
(New York City time) on the second Business Day prior to each Distribution Date,
the Servicer shall forward to the Trustee the Servicer's Section 3.10 Report
setting forth certain information with respect to the Loans. With each
distribution from the Certificate Account on a Distribution Date, the Trustee
shall make available to each Certificateholder, through the Trustee's Corporate
Trust home page on the world wide web which is currently located at
"corporatetrust.statestreet.com", a statement (each a "Certificateholders'
Report") prepared by the Servicer based on the information set forth in the
Servicer's Section 3.10 Report, setting forth, to the extent applicable, the
amount of the distribution payable to the applicable Class that represents
principal, separately identifying the aggregate amount of any Principal
prepayments included in such distribution, and the amount that represents
interest, and the applicable Class Principal Balance after giving effect to such
distribution.

     In addition, not later than each Distribution Date, the Trustee shall
forward to such Certificateholder and the Depositor an additional report which
sets forth with respect to the Loans:

         (i) The number and aggregate Principal Balance of the Loans delinquent
     one, two and three months or more;

         (ii) The (A) number and aggregate Principal Balance of Loans with
     respect to which foreclosure proceedings have been initiated, and (B) the
     number and aggregate book value of Mortgaged Properties acquired through
     foreclosure, deed in lieu of foreclosure or other exercise of rights
     respecting the Trustee's security interest in the Loans;

         (iii) The aggregate Principal Balance of the Loans as of the close of
     business on the last day of the related Prepayment Period;

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         (iv) The amount of the Servicing Fee retained or withdrawn by the
     Servicer from the Certificate Account and the amount of any Excess
     Liquidation Proceeds received by the Servicer during the related Prepayment
     Period;

         (v) The amount of Special Hazard Coverage available to the Senior
     Certificates remaining as of the close of business on the applicable
     Determination Date;

         (vi) The amount of Bankruptcy Coverage available to the Senior
     Certificates remaining as of the close of business on the applicable
     Determination Date;

         (vii) The amount of Fraud Coverage available to the Senior Certificates
     remaining as of the close of business on the applicable Determination Date;

         (viii) The amount of Realized Losses allocable to the related
     Certificates on the related Distribution Date and the cumulative amount of
     Realized Losses incurred allocated to such Certificates since the Cut-Off
     Date;

         (ix) The amount of funds advanced by the Servicer on the related
     Withdrawal Date;

         (x) The total amount of Payoffs and Curtailments received during the
     related Prepayment Period; and

         (xi) The weighted average Pass-Through Rates as of the first day of the
     month immediately preceding the month of the Distribution Date.

     Upon request by any Certificateholder, the Servicer, as soon as reasonably
practicable, shall provide the requesting Certificateholder with such
information as is necessary and appropriate, in Servicer's sole discretion, for
purposes of satisfying applicable reporting requirements under Rule 144A of the
Securities Act.

     The Servicer may make available any reports, statements or other
information to Certificateholders through the Servicer's home page on the world
wide web. Such web page is located at "www.wamumsc.com" and information is
available by clicking on "Investor Information."

     The Trustee may make available any reports, statements or other information
to Certificateholders through the Trustee's home page on the world wide web.
Such web page is currently located at "corporatetrust.statestreet.com".

     (b) Upon request to the Trustee by any Certificateholder who is a Holder
thereof at the time of making such request (an "Eligible Certificateholder"),
the Servicer shall provide in electronic format loan by loan data with respect
to the payment experience of the Loans containing at least the fields of
information listed on Exhibit E hereto (based on information provided by the
Servicer). In addition, upon the written request of any Eligible
Certificateholder, the Trustee shall provide similar loan by loan data with
respect to any prior monthly remittance report to the Certificateholders
pursuant to this Agreement (as and when such information

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becomes available). The expense of providing any tape or disk pursuant to this
subsection shall be an expense of the Eligible Certificateholder.

     Section 4.3 Advances by the Servicer; Distribution Reports to the Trustee.
To the extent described below, the Servicer is obligated to advance its own
funds to the Certificate Account to cover any shortfall between (i) payments
scheduled to be received in respect of Loans serviced by such Servicer, and (ii)
the amounts actually deposited in the Certificate Account on account of such
payments. The Servicer's obligation to make any Advance or Advances described in
this Section 4.3 is effective only to the extent that such Advance is, in the
good faith judgment of the Servicer, reimbursable from Insurance Proceeds or
Liquidation Proceeds of the related Loans or recoverable as late Monthly
Payments with respect to the related Loans or otherwise.

     Prior to the close of business on the second Business Day prior to each
Distribution Date, the Servicer shall determine whether or not it will make an
Advance on the next Withdrawal Date and shall furnish a statement to the
Trustee, the Paying Agent, if any, and to any Certificateholder requesting the
same, setting forth the aggregate amount to be distributed on the next
succeeding Distribution Date on account of principal and interest in respect of
the Loans, stated separately. In the event that full scheduled amounts of
principal and interest in respect of the related Loans shall not have been
received by or on behalf of the Servicer prior to the Determination Date
preceding such Distribution Date and the Servicer shall have determined that an
Advance shall be made in accordance with this Section 4.3, the Servicer shall so
specify and shall specify the aggregate amount of such Advance.

     In the event that the Servicer shall be required to make an Advance, it
shall on the Business Day prior to the Distribution Date either (i) deposit in
the Certificate Account an amount equal to such Advance, (ii) direct the Trustee
to make an appropriate entry in the records of the Certificate Account, or the
Servicer shall make an appropriate entry in the records for the Custodial
Account for P&I, that funds in such account being held for future distribution
or withdrawal have been, as permitted by this Section 4.3, used by such Servicer
to make such Advance, or (iii) make advances in the form of any combination of
(i) and (ii) aggregating the amount of such Advance. Any funds being held for
future distribution to Certificateholders and so used shall be replaced by the
Servicer by deposit in the Certificate Account on any future Distribution Date
to the extent that funds in the Certificate Account on such Distribution Date
with respect to the related Loans shall be less than payments to
Certificateholders required to be made on such date with respect to such Loans.

     The Servicer shall be entitled to reimbursement for any Advance as provided
in Section 3.3 of this Agreement.

     Prior to 5:00 P.M. New York City time on the second Business Day prior to
each Distribution Date, the Servicer shall provide the Trustee with a statement
regarding the amount of principal and interest, the Residual Distribution Amount
and the Excess Liquidation Proceeds to be distributed to each Class of
Certificates on such Distribution Date (such amounts to be determined in
accordance with the definition of "Certificate Distribution Amount", Section 4.1
hereof and other related definitions set forth in Article I hereof).

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     Section 4.4 Nonrecoverable Advances. Any Advance previously made by or on
behalf of the Servicer with respect to a Loan that the Servicer shall determine
in its good faith judgment not to be ultimately recoverable from Insurance
Proceeds or Liquidation Proceeds or otherwise with respect to such Loan or
recoverable as late Monthly Payments with respect to such Loan shall be a
Nonrecoverable Advance. The determination by the Servicer that it has made a
Nonrecoverable Advance or that any advance would constitute a Nonrecoverable
Advance, shall be evidenced by an Officer's Certificate of the Servicer
delivered to the Trustee on the Withdrawal Date and detailing the reasons for
such determination. Notwithstanding any other provision of this Agreement, any
insurance policy relating to the Loans, or any other agreement relating to the
Loans to which the Depositor or the Servicer is a party, (a) the Servicer shall
not be obligated to, and shall not, make any advance that, after reasonable
inquiry and in its sole discretion, it determines would be a Nonrecoverable
Advance, and (b) the Servicer shall be entitled to reimbursement for any
Nonrecoverable Advance as provided in Section 3.3 of this Agreement.

     Section 4.5 Foreclosure Reports. Each year beginning in 2002 the Servicer
shall make any reports of foreclosures and abandonments of any Mortgaged
Property required by Section 6050J of the Code. In order to facilitate this
reporting process, the Servicer, on or before February 28th of each year,
commencing with 2002, shall provide to the Internal Revenue Service and the
Trustee reports relating to each instance occurring during the previous calendar
year in which the Servicer (i) on behalf of the Trustee acquires an interest in
a Mortgaged Property through foreclosure or other comparable conversion in full
or partial satisfaction of a Loan, or (ii) knows or has reason to know that a
Mortgaged Property has been abandoned. The reports from the Servicer shall be in
form and substance sufficient to meet the reporting requirements imposed by such
Section 6050J.

     Section 4.6 Adjustment of Servicing Fees with Respect to Payoffs. The
aggregate amount of the Servicing Fee subject to retention from deposit into or
withdrawal from the Certificate Account by the Servicer, in any month of
distribution shall be decreased by any Compensating Interest due and owing with
respect to any Loan with respect to which a Payoff has occurred in the related
Prepayment Period. The Servicer shall include the amount of any such
Compensating Interest with the deposits into the Certificate Account on the
related Withdrawal Date. Notwithstanding the foregoing, the amount by which the
Servicing Fee may be reduced with respect to the related Prepayment Period
pursuant to this Section 4.6 shall not exceed an amount greater than the amount
described in clause (i) of the definition of Compensating Interest for all Loans
as to which Payoffs have occurred and the rights of the Certificateholders to
such portion of the Servicing Fee shall not be cumulative.

     Section 4.7 Prohibited Transactions Taxes and Other Taxes. In the event
that any tax (including a tax on "prohibited transactions" as defined in Section
860F(a)(2) of the Code and including any and all interest, penalties, fines and
additions to tax, as well as any and all reasonable counsel fees and
out-of-pocket expenses incurred in contesting the imposition of such tax) is
imposed on the Trust Fund and is not otherwise paid pursuant to Section 4.7(b)
hereof, the Servicer shall pay such taxes when and as the same shall be due and
payable (but such obligation shall not prevent the Servicer, the Trustee or any
other appropriate Person from contesting any such tax in appropriate proceedings
and shall not prevent the Servicer from withholding payment of such tax, if
permitted by law, pending the outcome of such proceedings); provided, that the

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Servicer shall be entitled to be indemnified for any such taxes (excluding taxes
referred to in Section 4.7(b)) to the extent set forth in Section 6.3 hereof so
long as the Servicer's failure to exercise reasonable care with respect to the
performance of its duties hereunder was not the primary cause of the imposition
of such taxes. If the Servicer is indemnified for such taxes pursuant to this
Section 4.7(a), such amount shall be first charged against amounts otherwise
distributable to the Holders of Component R-1 of the Class R Certificates (or,
if the tax relates to REMIC II, Component R-2 of the Class R Certificates) on a
pro rata basis, then against amounts otherwise distributable with respect to the
REMIC I Regular Interests (or, if the tax relates to REMIC II, to the Holders of
the REMIC II Certificates) on a pro rata basis. The Trustee is hereby authorized
to retain from amounts otherwise distributable to the Certificateholders
sufficient funds to reimburse the Servicer for the payment of such tax for which
the Servicer is entitled to indemnification..

     Section 4.8 Tax Administration. The Servicer is hereby appointed as
attorney-in-fact and agent for the initial Tax Matters Person.

     Section 4.9 Equal Status of Servicing Fee. The right of the Servicer to
receive its Servicing Fee will be equal and not subordinate to the right of the
Certificateholders to receive principal and interest payments based on their
interests as provided herein. The Servicer's Servicing Fee may be collected from
Monthly Payments as received pursuant to Section 3.2 without deposit into the
Certificate Account, whereas the Certificateholders' distributions shall be made
on a delayed basis as set forth in the terms of the Certificates.

     Section 4.10 Appointment of Paying Agent. The Trustee may appoint an
Eligible Institution to act as a paying agent (the "Paying Agent") in order to
delegate to such Eligible Institution any of its duties under this Agreement to
administer the issuance, transfer and exchange of the Certificates, administer
payments to Certificateholders or prepare information related to the
Certificates; provided, that the Trustee shall remain primarily responsible for
any duties so delegated; provided, further, that the Trustee shall receive no
additional compensation in connection with such appointment and delegation.

     Initially, the Trustee will be the Paying Agent. If the Trustee ceases to
serve as Paying Agent, the Trustee shall send written notice to all
Certificateholders (i) indicating that it is no longer serving in such capacity
and (ii) setting forth its replacement, if any, appointed pursuant to this
Section 4.10.

                                    ARTICLE V

                                THE CERTIFICATES

     Section 5.1 The Certificates.

     (a) The Certificates shall be substantially in the forms set forth in
Exhibits A and B attached hereto, and shall be executed by the Trustee,
authenticated by the Trustee (or any duly appointed Authenticating Agent) and
delivered to or upon the order of the Depositor upon receipt by the Trustee of
the documents specified in Section 2.1. The Certificates shall be issuable in
Authorized Denominations evidencing Percentage Interests. Certificates shall be
executed by

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manual or facsimile signature on behalf of the Trust Fund by authorized officers
of the Trustee. Certificates bearing the manual or facsimile signatures of
individuals who were at the time of execution the proper officers of the Trustee
shall bind the Trust Fund, notwithstanding that such individuals or any of them
have ceased to hold such offices prior to the authentication and delivery of
such Certificates or did not hold such offices at the date of such Certificates.
No Certificate shall be entitled to any benefit under this Agreement, or be
valid for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form provided for herein executed by the
Trustee or any Authenticating Agent by manual signature, and such certificate
upon any Certificate shall be conclusive evidence, and the only evidence, that
such Certificate has been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication.

     (b) The following definitions apply for purposes of this Section 5.1:
"Disqualified Organization" means any Person which is not a Permitted
Transferee, but does not include any "Pass-Through Entity" which owns or holds a
Residual Certificate and of which a Disqualified Organization, directly or
indirectly, may be a stockholder, partner or beneficiary; "Pass-Through Entity"
means any regulated investment company, real estate investment trust, common
trust fund, partnership, trust or estate, and any organization to which Section
1381 of the Code applies; "Ownership Interest" means, with respect to any
Residual Certificate, any ownership or security interest in such Residual
Certificate, including any interest in a Residual Certificate as the Holder
thereof and any other interest therein whether direct or indirect, legal or
beneficial, as owner or as pledgee; "Transfer" means any direct or indirect
transfer or sale of, or directly or indirectly transferring or selling, any
Ownership Interest in a Residual Certificate; and "Transferee" means any Person
who is acquiring by Transfer any Ownership Interest in a Residual Certificate.

     (c) Restrictions on Transfers of a Residual Certificate to Disqualified
Organizations are set forth in this Section 5.1(c).

         (i) Each Person who has or who acquires any Ownership Interest in a
     Residual Certificate shall be deemed by the acceptance or acquisition of
     such Ownership Interest to have agreed to be bound by the following
     provisions and to have irrevocably authorized the Trustee, the Servicer or
     the Paying Agent under clause (iii)(A) below to deliver payments to a
     Person other than such Person and to negotiate the terms of any mandatory
     sale under clause (iii)(B) below and to execute all instruments of transfer
     and to do all other things necessary in connection with any such sale. The
     rights of each Person acquiring any Ownership Interest in a Residual
     Certificate are expressly subject to the following provisions:

             (A) Each Person holding or acquiring any Ownership Interest in a
         Residual Certificate shall be a Permitted Transferee and shall promptly
         notify the Trustee or the Certificate Registrar if not the same Person
         as the Trustee of any change or impending change in its status as a
         Permitted Transferee.

             (B) In connection with any proposed Transfer of any Ownership
         Interest in a Residual Certificate to a U.S. Person, the Trustee or the
         Certificate Registrar if not the same Person as the Trustee shall
         require delivery to it, and

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         shall not register the Transfer of any Residual Certificate until its
         receipt of (1) an affidavit and agreement (a "Transferee Affidavit and
         Agreement") attached hereto as Exhibit J from the proposed Transferee,
         in form and substance satisfactory to the Depositor, representing and
         warranting, among other things, that it is not a Non-U.S. Person, that
         such transferee is a Permitted Transferee, that it not acquiring its
         Ownership Interest in such Residual Certificate that is the subject of
         the proposed Transfer as a nominee, trustee or agent for any Person who
         is not a Permitted Transferee, that for so long as it retains its
         Ownership Interest in a Residual Certificate, it will endeavor to
         remain a Permitted Transferee, and that it has reviewed the provisions
         of this Section 5.1(c) and agrees to be bound by them, and (2) a
         certificate, attached hereto as Exhibit I, from the Holder wishing to
         transfer a Residual Certificate, in form and substance satisfactory to
         the Depositor, representing and warranting, among other things, that no
         purpose of the proposed Transfer is to allow such Holder to impede the
         assessment or collection of tax.

             (C) Notwithstanding the delivery of a Transferee Affidavit and
         Agreement by a proposed Transferee under clause (B) above, if the
         Trustee or the Certificate Registrar if not the same Person as the
         Trustee has actual knowledge that the proposed Transferee is not a
         Permitted Transferee, no Transfer of an Ownership Interest in a
         Residual Certificate to such proposed Transferee shall be effected.

             (D) Each Person holding or acquiring any Ownership Interest in a
         Residual Certificate agrees by holding or acquiring such Ownership
         Interest (i) to require a Transferee Affidavit and Agreement from any
         other Person to whom such Person attempts to transfer its Ownership
         Interest and to provide a certificate to the Trustee or the Certificate
         Registrar if not the same Person as the Trustee in the form attached
         hereto as Exhibit J; (ii) to obtain the express written consent of the
         Depositor prior to any transfer of such Ownership Interest, which
         consent may be withheld in the Depositor's sole discretion; and (iii)
         to provide a certificate to the Trustee or the Certificate Registrar if
         not the same Person as the Trustee in the form attached hereto as
         Exhibit I.

         (ii) The Trustee or the Certificate Registrar if not the same Person as
     the Trustee shall register the Transfer of any Residual Certificate only if
     it shall have received the Transferee Affidavit and Agreement, a
     certificate of the Holder requesting such transfer in the form attached
     hereto as Exhibit J and all of such other documents as shall have been
     reasonably required by the Trustee or the Certificate Registrar if not the
     same Person as the Trustee as a condition to such registration.

         (iii) (A) If any Disqualified Organization shall become a Holder of a
     Residual Certificate, then the last preceding Permitted Transferee shall be
     restored, to the extent permitted by law, to all rights and obligations as

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     Holder thereof retroactive to the date of registration of such Transfer of
     such Residual Certificate. If any Non-U.S. Person shall become a Holder of
     a Residual Certificate, then the last preceding Holder which is a U.S.
     Person shall be restored, to the extent permitted by law, to all rights and
     obligations as Holder thereof retroactive to the date of registration of
     the Transfer to such Non-U.S. Person of such Residual Certificate. If a
     transfer of a Residual Certificate is disregarded pursuant to the
     provisions of Treasury Regulations Section 1.860E-1 or Section 1.860G-3,
     then the last preceding Permitted Transferee shall be restored, to the
     extent permitted by law, to all rights and obligations as Holder thereof
     retroactive to the date of registration of such Transfer of such Residual
     Certificate. The Trustee, the Servicer, the Certificate Registrar and the
     Paying Agent shall be under no liability to any Person for any registration
     of Transfer of a Residual Certificate that is in fact not permitted by this
     Section 5.1(c) or for making any payments due on such Certificate to the
     Holder thereof or for taking any other action with respect to such Holder
     under the provisions of this Agreement.

             (B) If any purported Transferee shall become a Holder of a Residual
         Certificate in violation of the restrictions in this Section 5.1(c) and
         to the extent that the retroactive restoration of the rights of the
         Holder of such Residual Certificate as described in clause (iii)(A)
         above shall be invalid, illegal or unenforceable, then the Depositor
         shall have the right, without notice to the Holder or any prior Holder
         of such Residual Certificate, to sell such Residual Certificate to a
         purchaser selected by the Depositor on such terms as the Depositor may
         choose. Such purported Transferee shall promptly endorse and deliver
         such Residual Certificate in accordance with the instructions of the
         Depositor. Such purchaser may be the Depositor itself or any affiliate
         of the Depositor. The proceeds of such sale, net of the commissions
         (which may include commissions payable to the Depositor or its
         affiliates), expenses and taxes due, if any, shall be remitted by the
         Depositor to such purported Transferee. The terms and conditions of any
         sale under this clause (iii)(B) shall be determined in the sole
         discretion of the Depositor, and the Depositor shall not be liable to
         any Person having an Ownership Interest in a Residual Certificate as a
         result of its exercise of such discretion.

         (iv) The Depositor, on behalf of the Trustee, shall make available,
     upon written request from the Trustee, or the Servicer all information
     necessary to compute any tax imposed (A) as a result of the Transfer of an
     Ownership Interest in a Residual Certificate to any Person who is not a
     Permitted Transferee, including the information regarding "excess
     inclusions" of such Residual Certificate required to be provided to the
     Internal Revenue Service and certain Persons as described in Treasury
     Regulation Section 1.860D-1(b)(5), and (B) as a result of any regulated
     investment company, real estate investment trust, common trust fund,
     partnership, trust, estate or organizations described in Section 1381 of
     the Code having as among its record holders at any time any Person who is
     not a Permitted Transferee. Reasonable compensation for providing such
     information may be required by the Depositor from such Person.

         (v) The provisions of this Section 5.1 set forth prior to this Section
     5.1(c)(v) may be modified, added to or eliminated, provided, that there
     shall have been delivered to the Trustee and the Servicer the following:

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             (A) written notification from each Rating Agency to the effect that
         the modification, addition to or elimination of such provisions will
         not cause such Rating Agency to downgrade its then-current Ratings of
         the Certificates; and

             (B) an Opinion of Counsel, in form and substance satisfactory to
         the Depositor (as evidenced by a certificate of the Depositor), to the
         effect that such modification, addition to or absence of such
         provisions will not cause the Trust Fund to cease to qualify as a REMIC
         and will not create a risk that (1) the Trust Fund may be subject to an
         entity-level tax caused by the Transfer of any Residual Certificate to
         a Person which is not a Permitted Transferee or (2) a Certificateholder
         or another Person will be subject to a REMIC-related tax caused by the
         Transfer of a Residual Certificate to a Person which is not a Permitted
         Transferee.

         (vi) The following legend shall appear on all Residual Certificates:

                    ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
              CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A
              TRANSFEREE AFFIDAVIT AND AGREEMENT TO THE DEPOSITOR, THE TRUSTEE
              AND THE CERTIFICATE REGISTRAR THAT (1) SUCH TRANSFEREE IS NOT
              EITHER (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION
              THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION,
              OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY
              ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF
              THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE
              CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY
              SECTION 511 OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION
              1381(a)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE
              FOREGOING CLAUSES (A), (B), OR (C) BEING HEREINAFTER REFERRED TO
              AS A "DISQUALIFIED ORGANIZATION"), OR (D) AN AGENT OF A
              DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS
              TO ENABLE THE TRANSFEROR TO IMPEDE THE ASSESSMENT OR COLLECTION OF
              TAX. SUCH AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO
              THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.
              NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF
              ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CLASS R
              CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A
              DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE
              OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT
              BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER

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<PAGE>

              INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON
              THIS CERTIFICATE. EACH HOLDER OF THIS CLASS R CERTIFICATE BY
              ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED
              TO THE PROVISIONS OF THIS PARAGRAPH.

         (vii) In the tax year following Washington Mutual Mortgage Securites
     Corp.'s transfer of its Class R Certificate, the Class R Certificateholder
     with the largest Percentage Interest, while not a Disqualified
     Organization, is the Tax Matters Person.

     (d) (viii) No purchase or transfer of a Senior Certificate (other than a
Class R Certificate) or a Senior Subordinate Certificate or any interest therein
shall be made by or to any "employee benefit plan" subject to ERISA or any
"plan" described by Section 4975(e)(1) of the Code, or any entity deemed to hold
plan assets of any of the foregoing by reason of a plan's investment in such
entity (each, a "Plan") unless such Plan qualifies as an accredited investor as
defined in Rule 501(a)(1) of Regulation D under the Securities Act and either
(1) at the time of such transfer, such Certificates are rated in one of the top
four rating categories by at least one Rating Agency, or (2) the purchaser is an
insurance company general account that is eligible for, and satisfies all of the
requirements of, Sections I and III of Prohibited Transaction Class Exemption
95-60 ("PTCE 95-60"). Each Person who acquires a Senior Certificate (other than
a Class R Certificate) or a Senior Subordinate Certificate shall be deemed to
certify that it meets the foregoing conditions, and that it will not transfer
such Certificate in violation of the foregoing.

         (ix) No purchase or transfer of a Junior Subordinate Certificate or a
     Class R Certificate shall be made by or to a Plan unless such purchaser or
     transferee is an "insurance company general account" (within the meaning of
     PTCE 95-60) and is eligible for, and satisfies all of the requirements for
     exemptive relief under Sections I and III of PTCE 95-60. Each Person who
     acquires a Junior Subordinate Certificate or a Class R Certificate or any
     interest therein shall be deemed to certify and shall be required by the
     Certificate Registrar to provide an Officer's Certificate signed by a
     Responsible Officer of such Person, which Officer's Certificate shall not
     be an expense of the Trustee, the Servicer, the Certificate Registrar or
     the Depositor) that it meets the foregoing conditions, and that it will not
     transfer such Certificate in violation of the foregoing.

     (e) No transfer, sale, pledge or other disposition of a Junior Subordinate
Certificate shall be made unless such transfer, sale, pledge or other
disposition is made in accordance with this Section 5.1(e) or Section 5.1(f).
Each Person who, at any time, acquires any ownership interest in any Junior
Subordinate Certificate shall be deemed by the acceptance or acquisition of such
ownership interest to have agreed to be bound by the following provisions of
this Section 5.1(e) and Section 5.1(f), as applicable. No transfer of a Junior
Subordinate Certificate shall be deemed to be made in accordance with this
Section 5.1(e) unless such transfer is made pursuant to an effective
registration statement under the Securities Act or unless the Trustee or the
Certificate Registrar, if not the same Person as the Trustee, is provided with
the certificates and an Opinion of Counsel, if required, on which the Trustee
and the Certificate Registrar may conclusively rely, which establishes or
establish to the Trustee's or the Certificate Registrar's, as applicable,
satisfaction that such transfer is exempt from the registration requirements
under the

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<PAGE>

Securities Act, as follows: In the event that a transfer is to be made in
reliance upon an exemption from the Securities Act, the Trustee or the
Certificate Registrar, if not the same Person as the Trustee, shall require, in
order to assure compliance with the Securities Act, that the Certificateholder
desiring to effect such transfer certify to the Trustee and the Certificate
Registrar in writing, in substantially the form attached hereto as Exhibit F,
the facts surrounding the transfer, with such modifications to such Exhibit F as
may be appropriate to reflect the actual facts of the proposed transfer, and
that the Certificateholder's proposed transferee certify to the Trustee and the
Certificate Registrar in writing, in substantially the form attached hereto as
Exhibit G, the facts surrounding the transfer, with such modifications to such
Exhibit G as may be appropriate to reflect the actual facts of the proposed
transfer. If such certificate of the proposed transferee does not contain
substantially the substance of Exhibit G, the Trustee or the Certificate
Registrar, if not the same Person as the Trustee, shall require an Opinion of
Counsel satisfactory to it that such transfer may be made without registration,
which Opinion of Counsel shall not be obtained at the expense of the Trustee,
the Servicer, the Certificate Registrar, the Trust Fund or the Depositor. Such
Opinion of Counsel shall allow for the forwarding, and the Trustee shall
forward, a copy thereof to each Rating Agency. Notwithstanding the foregoing,
any Class of Junior Subordinate Certificates may be transferred, sold, pledged
or otherwise disposed of in accordance with the requirements set forth in
Section 5.1(f).

     (f) Transfers of the Junior Subordinate Certificates may be made in
accordance with this Section 5.1(f). To effectuate a Certificate transfer in
accordance with this Section 5.1(f), the proposed transferee of such Certificate
must provide the Trustee, the Certificate Registrar and the Depositor with an
investment letter substantially in the form of Exhibit L attached hereto, which
investment letter shall not be an expense of the Trustee, the Servicer, the
Certificate Registrar or the Depositor, and which investment letter states that,
among other things, such transferee (i) is a "qualified institutional buyer" as
defined under Rule 144A, acting for its own account or the accounts of other
"qualified institutional buyers" as defined under Rule 144A, and (ii) is aware
that the proposed transferor intends to rely on the exemption from registration
requirements under the Securities Act provided by Rule 144A. Notwithstanding the
foregoing, the proposed transferee of such Certificate shall not be required to
provide the Trustee, the Certificate Registrar or the Depositor with Annex 1 or
Annex 2 to the form of Exhibit L attached hereto if the Depositor so consents
prior to each such transfer. Such transfers shall be deemed to have complied
with the requirements of this Section 5.1(f). The Holder of a Certificate
desiring to effect such transfer does hereby agree to indemnify the Trustee, the
Servicer, the Depositor, and the Certificate Registrar against any liability
that may result if transfer is not made in accordance with this Agreement.

     (g) None of the Trustee, the Servicer, the Certificate Registrar or the
Paying Agent shall have any liability to the Trust Fund arising from a
registration or transfer of a Certificate in reliance upon a certification,
Officer's Certificate, affidavit, ruling or Opinion of Counsel described in this
Section 5.1.

     Section 5.2 Certificates Issuable in Classes; Distributions of Principal
and Interest; Authorized Denominations. The aggregate principal amount of
Certificates that may be authenticated and delivered under this Agreement is
limited to the aggregate Principal Balance of the Loans as of the Cut-Off Date,
as specified in the Preliminary Statement to this Agreement, except for
Certificates authenticated and delivered upon registration of transfer of, or in

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exchange for, or in lieu of, other Certificates pursuant to Section 5.3. Such
aggregate principal amount shall be allocated among one or more Classes having
designations, types of interests, initial per annum Remittance Rates, initial
Class Principal Balances and last scheduled Distribution Dates as specified in
the Preliminary Statement to this Agreement. The aggregate Percentage Interest
of each Class of Certificates of which the Class Principal Balance equals zero
as of the Cut-Off Date that may be authenticated and delivered under this
Agreement is limited to 100%. Certificates shall be issued in Authorized
Denominations.

     Section 5.3 Registration of Transfer and Exchange of Certificates. The
Trustee shall cause to be maintained at one of its offices or at its designated
Certificate Registrar, a Certificate Register in which there shall be recorded
the name and address of each Certificateholder. Subject to such reasonable rules
and regulations as the Trustee may prescribe, the Certificate Register shall be
amended from time to time by the Trustee or its agent to reflect notice of any
changes received by the Trustee or its agent pursuant to Section 10.5. The
Trustee hereby appoints itself as the initial Certificate Registrar. The Trustee
may appoint an Eligible Institution to act as its agent in order to delegate to
such Eligible Institution its duties as Certificate Registrar under this
Agreement.

     Upon surrender for registration of transfer of any Certificate to the
Trustee at its Corporate Trust Office or at the office of State Street Bank and
Trust Company, N.A., 61 Broadway, New York, New York 10006, or such other
address or agency as may hereafter be provided to the Servicer in writing by the
Trustee, the Trustee shall execute, and the Trustee or any Authenticating Agent
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Certificates of Authorized Denominations of like
Percentage Interest. At the option of the Certificateholders, Certificates may
be exchanged for other Certificates in Authorized Denominations of like
Percentage Interest, upon surrender of the Certificates to be exchanged at any
such office or agency. Whenever any Certificates are so surrendered for
exchange, the Trustee shall execute, and the Trustee, or any Authenticating
Agent, shall authenticate and deliver, the Certificates which the
Certificateholder making the exchange is entitled to receive. Every Certificate
presented or surrendered for transfer shall (if so required by the Trustee or
any Authenticating Agent) be duly endorsed by, or be accompanied by a written
instrument of transfer in form satisfactory to the Trustee or any Authenticating
Agent and duly executed by, the Holder thereof or such Holder's attorney duly
authorized in writing.

     A reasonable service charge may be made for any such exchange or transfer
of Certificates, and the Trustee or an Authenticating Agent may require payment
of a sum sufficient to cover any tax or governmental charge that may be imposed
in connection with any exchange or transfer of Certificates.

     All Certificates surrendered for exchange or transfer shall be canceled by
the Trustee or any Authenticating Agent.

     Section 5.4 Mutilated, Destroyed, Lost or Stolen Certificates. If (i) any
mutilated Certificate is surrendered to the Trustee or any Authenticating Agent,
or (ii) the Trustee or any Authenticating Agent receives evidence to their
satisfaction of the destruction, loss or theft of any Certificate, and there is
delivered to the Trustee or any Authenticating Agent such security or

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<PAGE>

indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Trustee or any Authenticating Agent that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute and the Trustee or any Authenticating Agent shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like Percentage Interest. Upon the
issuance of any new Certificate under this Section 5.4, the Trustee or any
Authenticating Agent may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and any
other expenses (including the fees and expenses of the Trustee or any
Authenticating Agent) connected therewith. Any replacement Certificate issued
pursuant to this Section 5.4 shall constitute complete and indefeasible evidence
of ownership in the Trust Fund, as if originally issued, whether or not the lost
or stolen Certificate shall be found at any time.

     Section 5.5 Persons Deemed Owners. The Depositor, the Servicer, the Trustee
and any agent of any of them may treat the Person in whose name any Certificate
is registered as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 4.1 and for all other purposes whatsoever, and
neither the Depositor, the Servicer, the Trustee, the Certificate Registrar nor
any agent of the Depositor, the Servicer or the Trustee shall be affected by
notice to the contrary.

     Section 5.6 Temporary Certificates. Upon the initial issuance of the
Certificates, the Trustee may execute, and the Trustee or any Authenticating
Agent shall authenticate and deliver, temporary Certificates which are printed,
lithographed, typewritten or otherwise produced, in any Authorized Denomination,
of the tenor of the definitive Certificates in lieu of which they are issued and
with such variations in form from the forms of the Certificates set forth as
Exhibits A and B hereto as the Trustee's officers executing such Certificates
may determine, as evidenced by their execution of the Certificates.
Notwithstanding the foregoing, the Certificates may remain in the form set forth
in this Section.

     If temporary Certificates are issued, the Trustee shall cause definitive
Certificates to be prepared within ten Business Days of the Closing Date or as
soon as practicable thereafter. After preparation of definitive Certificates,
the temporary Certificates shall be exchangeable for definitive Certificates
upon surrender of the temporary Certificates at the office or agency of the
Trustee to be maintained as provided in Section 5.10 hereof, without charge to
the Holder. Any tax or governmental charge that may be imposed in connection
with any such exchange shall be borne by the Depositor. Upon surrender for
cancellation of any one or more temporary Certificates, the Trustee shall
execute and the Trustee or any Authenticating Agent shall authenticate and
deliver in exchange therefor a like principal amount of definitive Certificates
of Authorized Denominations. Until so exchanged, the temporary Certificates
shall in all respects be entitled to the same benefits under this Agreement as
definitive Certificates.

     Section 5.7 Book-Entry for Book-Entry Certificates. Notwithstanding the
foregoing, the Book-Entry Certificates, upon original issuance, shall be issued
in the form of one or more typewritten Certificates of Authorized Denomination
representing the Book-Entry Certificates, to be delivered to DTC, the initial
Clearing Agency, by, or on behalf of, the Depositor. The Book-Entry Certificates
shall initially be registered on the Certificate Register in the name of Cede &
Co., the nominee of DTC, as the initial Clearing Agency, and no Beneficial
Holder shall receive a definitive certificate representing such Beneficial
Holder's interest in any Class of Book-Entry

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<PAGE>

Certificate, except as provided above and in Section 5.9. Each Book-Entry
Certificate shall bear the following legend:

         Unless this Certificate is presented by an authorized representative of
     The Depository Trust Company, a New York corporation ("DTC"), to the
     Trustee or its agent for registration of transfer, exchange, or payment,
     and any Certificate issued is registered in the name of Cede & Co. or 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.

Unless and until definitive, fully registered Book-Entry Certificates (the
"Definitive Certificates") have been issued to the Beneficial Holders pursuant
to Section 5.9:

         (a) the provisions of this Section 5.7 shall be in full force and
     effect with respect to the Book-Entry Certificates;

         (b) the Trustee may deal with the Clearing Agency for all purposes with
     respect to the Book-Entry Certificates (including the making of
     distributions on the Book-Entry Certificates) as the sole
     Certificateholder;

         (c) to the extent that the provisions of this Section 5.7 conflict with
     any other provisions of this Agreement, the provisions of this Section 5.7
     shall control; and

         (d) the rights of the Beneficial Holders shall be exercised only
     through the Clearing Agency and the DTC Participants and shall be limited
     to those established by law and agreements between such Beneficial Holders
     and the Clearing Agency and/or the DTC Participants. Pursuant to the
     Depositary Agreement, unless and until Definitive Certificates are issued
     pursuant to Section 5.9, the initial Clearing Agency will make book-entry
     transfers among the DTC Participants and receive and transmit distributions
     of principal and interest on the related Class of Book-Entry Certificates
     to such DTC Participants.

     For purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Holders of Book-Entry
Certificates evidencing a specified Percentage Interest, such direction or
consent may be given by the Clearing Agency at the direction of Beneficial
Holders owning Book-Entry Certificates evidencing the requisite Percentage
Interest represented by the Book-Entry Certificates. The Clearing Agency may
take conflicting actions with respect to the Book-Entry Certificates to the
extent that such actions are taken on behalf of the Beneficial Holders.

     Section 5.8 Notices to Clearing Agency. Whenever notice or other
communication to the Certificateholders is required under this Agreement, unless
and until Definitive Certificates shall have been issued to the related
Certificateholders pursuant to Section 5.9, the Trustee shall give all such
notices and communications specified herein to be given to Holders of the
Book-

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Entry Certificates to the Clearing Agency which shall give such notices and
communications to the related DTC Participants in accordance with its applicable
rules, regulations and procedures.

     Section 5.9 Definitive Certificates. If (a) the Clearing Agency notifies
the Trustee that it is no longer willing or able to discharge properly its
responsibilities under the Depositary Agreement with respect to the Book-Entry
Certificates and the Trustee is unable to locate a qualified successor, (b) the
Depositor, at its option, advises the Trustee in writing that it elects to
terminate the book-entry system with respect to the Book-Entry Certificates
through the Clearing Agency or (c) after the occurrence of an Event of Default,
Certificateholders holding Book-Entry Certificates evidencing Percentage
Interests aggregating not less than 66% of the aggregate Class Principal Balance
of such Certificates advise the Trustee and the Clearing Agency through DTC
Participants in writing that the continuation of a book-entry system with
respect to the Book-Entry Certificates through the Clearing Agency is no longer
in the best interests of the Certificateholders with respect to such
Certificates, the Trustee shall notify or cause to be notified all
Certificateholders of Book-Entry Certificates of the occurrence of any such
event and of the availability of Definitive Certificates. Upon surrender to the
Trustee of the Book-Entry Certificates by the Clearing Agency, accompanied by
registration instructions from the Clearing Agency for registration, the Trustee
shall execute and the Trustee or any Authenticating Agent shall authenticate and
deliver the Definitive Certificates. Neither the Depositor, the Authenticating
Agent nor the Trustee shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of Definitive Certificates for all of the
Certificates all references herein to obligations imposed upon or to be
performed by the Clearing Agency shall be deemed to be imposed upon and
performed by the Trustee, and the Trustee, the Certificate Registrar and the
Paying Agent shall recognize the Holders of Definitive Certificates as
Certificateholders hereunder.

     Section 5.10 Office for Transfer of Certificates. The Trustee shall
maintain in New York, New York, an office or agency where Certificates may be
surrendered for registration of transfer or exchange. State Street Bank and
Trust Company, N.A., 61 Broadway, New York, New York 10006, Attn: Corporate
Trust Window, is initially designated for said purposes. The Trustee will give
prompt written notice to the Certificateholders of any change in such location
of any such office or agency.

                                   ARTICLE VI

                         THE DEPOSITOR AND THE SERVICER

     Section 6.1 Liability of the Depositor and the Servicer. The Depositor and
the Servicer shall each be liable in accordance herewith only to the extent of
the obligations specifically imposed by this Agreement and undertaken hereunder
by the Depositor and the Servicer herein.

     Section 6.2 Merger or Consolidation of the Depositor or the Servicer.
Subject to the following paragraph, the Depositor and the Servicer each will
keep in full effect its existence, rights and franchises as corporations, each
under the laws of the jurisdiction of its incorporation, and will obtain and
preserve its qualification to do business as a foreign corporation in each
jurisdiction in which such qualification is or shall be necessary to protect the
validity and

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<PAGE>

enforceability of this Agreement, the Certificates or any of the Loans and to
perform its respective duties under this Agreement.

     The Depositor or the Servicer may be merged or consolidated with or into
any Person, or transfer all or substantially all of its assets to any Person, in
which case any Person resulting from any merger or consolidation to which the
Depositor or Servicer shall be a party, or any Person succeeding to the business
of the Depositor or Servicer, shall be the successor of the Depositor or
Servicer hereunder, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

     Section 6.3 Limitation on Liability of the Servicer and Others. Neither the
Servicer nor any of the directors, officers, employees or agents of the Servicer
shall be under any liability to the Trust Fund or the Certificateholders for any
action taken or for refraining from the taking of any action in good faith
pursuant to this Agreement, or for errors in judgment; provided, however, that
this provision shall not protect any director, officer, employee or agent of the
Servicer against any liability which would otherwise be imposed by reason of
willful misfeasance, bad faith or gross negligence in the performance of duties
or by reason of reckless disregard of obligations and duties hereunder. The
Servicer and any director, officer, employee or agent of the Servicer may rely
in good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising hereunder. The Servicer
and any director, officer, employee or agent of the Servicer shall be
indemnified by the Trust Fund and held harmless against any loss, liability or
expense incurred in connection with any legal action relating to this Agreement
or the Certificates, other than any loss, liability or expense, in the case of
the Servicer and any director, officer, employee or agent of the Servicer,
incurred by reason of willful misfeasance, bad faith or gross negligence in the
performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder. The Servicer shall not be under any obligation
to appear in, prosecute or defend any legal action which is not incidental to
its duties to service the Loans in accordance with this Agreement and which in
its opinion may involve it in any expense or liability; provided, however, that
the Servicer may in its discretion undertake any such action which it may deem
necessary or desirable in respect of this Agreement and the rights and duties of
the parties hereto and the interests of the Certificateholders hereunder. In
such event, the legal expenses and costs of such action and any liability
resulting therefrom shall be expenses, costs and liabilities of the Trust Fund,
and the Servicer shall be entitled to be reimbursed therefor out of the
Custodial Account for P&I as provided by Section 3.3.

     Section 6.4 Servicer Not to Resign. The Servicer shall not resign from the
obligations and duties hereby imposed on it, except upon determination that its
duties hereunder are no longer permissible under applicable law. Any such
determination permitting the resignation of the Servicer shall be evidenced by
an Opinion of Counsel to such effect delivered to the Trustee. The Servicer
shall notify each Rating Agency of any such resignation. No such resignation
shall become effective until a successor servicer shall have assumed the
Servicer's responsibilities and obligations in accordance with Section 7.5
hereof.

     Section 6.5 Trustee Access. The Servicer shall afford the Depositor and the
Trustee, upon reasonable notice, during normal business hours access to all
records maintained by the Servicer, in respect of its rights and obligations
hereunder and access to such of its officers as are

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<PAGE>

responsible for such obligations. Upon reasonable request, the Servicer, shall
furnish the Depositor and the Trustee with its most recent financial statements
(or, for so long as Washington Mutual Mortgage Securities Corp. is Servicer
hereunder, the most recent consolidated financial statements of Washington
Mutual, Inc., or the entity with whose financial statements the financial
statements of the Servicer are consolidated) and such other information as it
possesses, and which it is not prohibited by law or, to the extent applicable,
binding obligations to third parties with respect to confidentiality from
disclosing, regarding its business, affairs, property and condition, financial
or otherwise.

                                   ARTICLE VII

                                     DEFAULT

     Section 7.1 Events of Default. In case one or more of the following Events
of Default by the Servicer shall occur and be continuing, that is to say:

         (i) any failure by the Servicer to distribute or cause to be
     distributed to the Trustee or its delegate on the Withdrawal Date any
     payment required to be made to the Trustee under the terms of this
     Agreement which continues unremedied for a period of five days after the
     date upon which written notice of such failure, requiring the same to be
     remedied, shall have been given to the Servicer by the Trustee or to the
     Servicer and the Trustee by the Holders of Certificates evidencing
     Percentage Interests aggregating not less than 25% of the Trust Fund or 51%
     of the aggregate Percentage Interests of any Class of Certificates;

         (ii) any failure on the part of the Servicer duly to observe or perform
     in any material respect any other of the covenants or agreements on the
     part of the Servicer in the Certificates or in this Agreement which
     continues unremedied for a period of 60 days after the date on which
     written notice of such failure, requiring the same to be remedied, shall
     have been given to the Servicer by the Trustee, or to the Servicer and the
     Trustee by the Holders of Certificates evidencing, in aggregate, not less
     than 25% of the Trust Fund or 51% of the aggregate Percentage Interests of
     any Class of Certificates;

         (iii) a decree or order of a court or agency or supervisory authority
     having jurisdiction in the premises for the appointment of a conservator or
     receiver or liquidator in any insolvency, readjustment of debt, marshaling
     of assets and liabilities or similar proceedings, or for the winding-up or
     liquidation of its affairs, shall have been entered against the Servicer
     and such decree or order shall have remained in force undischarged or
     unstayed for a period of 60 days;

         (iv) the Servicer shall consent to the appointment of a conservator or
     receiver or liquidator or liquidating committee in any insolvency,
     readjustment of debt marshaling of assets and liabilities, voluntary
     liquidation or similar proceedings of or relating to the Servicer or of or
     relating to all or substantially all of its property;

         (v) the Servicer shall admit in writing its inability to pay its debts
     generally as they become due, file a petition to take advantage of any
     applicable insolvency or

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     reorganization statute, make an assignment for the benefit of its creditors
     or voluntarily suspend payment of its obligations; or

         (vi) any failure of the Servicer to make any Advance required to be
     made from its own funds pursuant to Section 4.3 which continues unremedied
     for a period of one Business Day after the date upon which such Advance was
     to have been made;

then, if an Event of Default described in clauses (i)-(v) of this Section 7.1
shall occur, and in each and every such case, subject to applicable law, so long
as an Event of Default shall not have been remedied, either the Trustee or the
Holders of Certificates evidencing, in aggregate, not less than 25% of the Trust
Fund or 51% of the aggregate Percentage Interests of any Class of Certificates
by notice in writing to the Servicer (and to the Trustee if given by the
Certificateholders) may terminate all of the rights and obligations of the
Servicer under this Agreement, but without prejudice to any rights it may have
to reimbursement of expenses, Advances and other advances of its own funds as
Servicer to the extent permitted by this Agreement, other than the Depositor's
(or its successors') obligation to repurchase any Loans pursuant to Section 2.2
or 2.3 shall survive any such termination. If an Event of Default described in
clause (vi) hereof shall occur, the Trustee shall, by notice in writing to the
Servicer, which shall be telecopied to the Servicer, immediately terminate all
of the rights and obligations of the Servicer, under this Agreement and in and
to the Loans and the proceeds thereof. On or after the receipt by the Servicer
of such written notice, all authority and power of the Servicer under this
Agreement, whether with respect to the Certificates or the Loans or otherwise,
shall pass to and be vested in the Trustee pursuant to and under this Section
7.1 (subject to the provisions of Section 7.5); and, without limitation, the
Trustee is hereby authorized and empowered to execute and deliver, on behalf of
the Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the Loans and related
documents or otherwise at the expense of the Servicer. The Servicer agrees to
cooperate with the Trustee in effecting the termination of the Servicer's
responsibilities and rights hereunder and shall promptly provide the Trustee all
documents and records whether in written or electronic form reasonably requested
by it to enable it to assume the Servicer's functions hereunder and shall
promptly also transfer to the Trustee of this Agreement all amounts which then
have been or should have been deposited in the Custodial Account for P&I by the
Servicer or which are thereafter received with respect to the Loans as well as
any escrowed funds held by it or in connection with its servicing activities
hereunder. The Servicer and the Trustee shall give each Rating Agency notice of
any Event of Default. If the Servicer shall within two Business Days following
such suspension remit to the Trustee the amount of any Advance the nonpayment of
which by the Servicer was an Event of Default described in clause (vi) of this
Section 7.1, the Trustee, subject to the last sentence of this paragraph, shall
permit the Servicer to resume its rights and obligations as Servicer hereunder.
The Servicer agrees that it will reimburse the Trustee for actual, necessary and
reasonable costs incurred by the Trustee because of action taken pursuant to
clause (vi) of this Section 7.1. The Servicer agrees that if an Event of Default
as described in clause (vi) of this Section 7.1 shall occur more than two times
in any twelve month period, the Trustee shall be under no obligation to permit
the Servicer to resume its rights and obligations as Servicer hereunder.

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     Section 7.2 Other Remedies of Trustee. During the continuance of any Event
of Default, so long as such Event of Default shall not have been remedied, the
Trustee, in addition to the rights specified in Section 7.1, shall have the
right, in its own name as trustee of an express trust, to take all actions now
or hereafter existing at law, in equity or by statute to enforce its rights and
remedies, and to protect the interests, and enforce the rights and remedies, of
the Certificateholders (including the institution and prosecution of all
judicial, administrative and other proceedings and the filing of proofs of claim
and debt in connection therewith). Except as otherwise expressly provided in
this Agreement, no remedy provided for by this Agreement shall be exclusive of
any other remedy, and each and every remedy shall be cumulative and in addition
to any other remedy and no delay or omission to exercise any right or remedy
shall impair any such right or remedy or shall be deemed to be a waiver of any
Event of Default.

     Section 7.3 Directions by Certificateholders and Duties of Trustee During
Event of Default. During the continuance of any Event of Default, Holders of
Certificates evidencing, in aggregate, not less than 25% of the Trust Fund or
51% of the aggregate Percentage Interests of any Class of Certificates may
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the
Trustee under this Agreement; provided, however, that the Trustee shall be under
no obligation to pursue any such remedy, or to exercise any of the trusts or
powers vested in it by this Agreement (including, without limitation, (i) the
conducting or defending of any administrative action or litigation hereunder or
in relation hereto and (ii) the terminating of the Servicer or any successor
servicer from its rights and duties as servicer hereunder) at the request, order
or direction of any of the Certificateholders, unless such Certificateholders
shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which may be incurred therein or thereby; and,
provided, further, that, subject to the provisions of Section 8.1, the Trustee
shall have the right to decline to follow any such direction if the Trustee, in
accordance with an Opinion of Counsel, determines that the action or proceeding
so directed may not lawfully be taken or if the Trustee in good faith determines
that the action or proceeding so directed would involve it in personal liability
or be unjustly prejudicial to the non-assenting Certificateholders or if the
Trustee has received contrary directions pursuant to this Section 7.3.

     Section 7.4 Action upon Certain Failures of Servicer and upon Event of
Default. In the event that the Trustee shall have knowledge of any failure of
the Servicer specified in Section 7.1(i) or (ii) which would become an Event of
Default upon the Servicer's failure to remedy the same after notice, the Trustee
shall give notice thereof to the Servicer. In the event that the Trustee shall
have knowledge of an Event of Default, the Trustee shall give prompt written
notice thereof to the Certificateholders and to each Rating Agency. For all
purposes of this Agreement, in the absence of actual knowledge by a Responsible
Officer of the Trustee, the Trustee shall not be deemed to have knowledge of any
failure of the Servicer as specified in Section 7.1 or any Event of Default
unless notified thereof in writing by the Servicer or by a Certificateholder.

     Section 7.5 Appointment of Successor Servicer.

     (a) When the Servicer receives a notice of termination pursuant to Section
7.1 or the Trustee receives the resignation of the Servicer evidenced by an
Opinion of Counsel pursuant to Section 6.4, the Trustee shall become the
successor in all respects to the Servicer in its capacity

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as Servicer under this Agreement and the transactions set forth or provided for
herein, provided, however, that the Trustee's obligation to make any Advances
shall be no greater than set forth in Section 4.3 of this Agreement, and the
Trustee shall have all the rights and powers and be subject to all the
responsibilities, duties and liabilities relating thereto placed on the Servicer
by the terms and provisions hereof and in its capacity as such successor shall
have the same limitation of liability herein granted to the Servicer and
provided, further, that the Trustee shall not be required to make an Advance
from its own funds if such Advance would be prohibited by law. As compensation
therefor, the Trustee shall be entitled to receive monthly an amount not to
exceed the Servicing Fee as agreed by the Trustee and the Depositor, together
with such other servicing compensation in the form of assumption fees, late
charges, prepayment fees or otherwise provided in Section 3.9. If the agreed
amount is less than the Servicing Fee, the excess shall be paid to the Class R
Certificateholders. If the Trustee and the Depositor shall not agree on the
amount of such compensation, the Trustee shall solicit bids for a successor
servicer as described in Section 7.5(b), provided, however, if no successor
servicer is obtained through the bidding process, the Trustee may act as such,
or may pursuant to Section 7.5(b) appoint a successor servicer to act as such,
for the Servicing Fee together with such other servicing compensation as
provided in Section 3.9. In no event shall the Trustee's assumption of or
succession to the obligations of the Servicer make the Trustee liable for any
actions or omissions of the Servicer in its capacity as Servicer.

     (b) Notwithstanding the above, the Trustee may and shall, if it is unable
(or unwilling due to disagreement on compensation as provided in Section 7.5
(a)) to act as Servicer, appoint, or petition a court of competent jurisdiction
to appoint, any established housing and home finance institution, bank or
mortgage servicing institution which is an approved FNMA or FHLMC servicer
having a net worth of not less than $15,000,000 and meeting such other standards
as are set forth in Section 6.4 hereof for a successor to the Servicer hereunder
in the assumption of all or any part of the responsibilities, duties or
liabilities of the Servicer hereunder (except the repurchase obligations set
forth in Sections 2.2 and 2.3 hereof, which shall remain obligations of the
Depositor); provided, however, that until such appointment and assumption, the
Trustee will continue to perform the servicing obligations pursuant to this
Agreement (and until such time shall be entitled to receive the Servicing Fees
pursuant to Section 3.9); provided, further, that prior to the appointment of
any successor servicer, the Rating Agencies confirm that the appointment of such
successor servicer would not result in the downgrade of the Rating assigned to
any Class of Certificates. The compensation of any successor servicer so
appointed shall be equal to the Servicing Fees specified in Section 3.9 together
with such other compensation as is provided in said Section 3.9. In the event
the Trustee is required to solicit bids as provided above, the Trustee shall
solicit, by public announcement, bids from housing and home finance
institutions, banks and mortgage servicing institutions acceptable to the
Trustee and meeting the qualifications set forth above in this Section 7.5(b)
for the purchase of the servicing functions. Such public announcement shall
specify that the successor servicer shall be entitled to the full amount of the
Servicing Fee on the aggregate unpaid principal balance of the Loans as
servicing compensation for servicing the Loans, together with the other
servicing compensation in the form of assumption fees, late payment charges,
prepayment fees or otherwise as provided in Section 3.9. Within 45 days after
any such public announcement, the Trustee shall negotiate and effect the sale,
transfer and assignment of the servicing rights and responsibilities hereunder
(except the repurchase obligations set forth in Sections 2.2 and 2.3 hereof,
which shall remain obligations of the Depositor) to the qualified party
submitting the

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highest qualifying bid. The Trustee shall deduct all costs and expenses of any
public announcement and of any sale, transfer and assignment of the servicing
rights and responsibilities hereunder from any sum received by the Trustee from
the successor to the Servicer in respect of such sale, transfer and assignment.
After such deductions, the remainder of such sum shall be paid by the Trustee to
the Class R Certificateholders at the time of such sale, transfer and assignment
to the Servicer's successor.

     (c) In the event that the Servicer resigns or is terminated in accordance
with the terms of this Agreement, the Servicer agrees to cooperate with the
Trustee and any successor servicer in effecting the termination of the
Servicer's servicing responsibilities and rights hereunder and shall promptly
provide the Trustee or such successor servicer, as applicable, all documents and
records reasonably requested by it to enable it to assume the Servicer's
functions hereunder and shall promptly also transfer to the Trustee or such
successor servicer, as applicable, all amounts which then have been or should
have been deposited in the Custodial Account for P&I by the Servicer or which
are thereafter received with respect to the Loans. Neither the Trustee nor any
other successor servicer shall be deemed to be in default hereunder by reason of
any failure to make, or any delay in making, any distribution hereunder or any
portion thereof caused by the failure of the Servicer to deliver, or any delay
in delivering, cash, documents or records to it.

     Section 7.6 Notification to Certificateholders. Upon any termination of the
Servicer or appointment of a successor to the Servicer, in each case as provided
herein, the Trustee shall as soon as practicable give written notice thereof to
Certificateholders at their respective addresses appearing in the Certificate
Register and each Rating Agency.

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

     Section 8.1 Duties of Trustee. The Trustee, prior to the occurrence of an
Event of Default and after the curing of all Events of Default which may have
occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement. In case an Event of Default has
occurred (which has not been cured), the Trustee, subject to the provisions of
Sections 7.1, 7.3, 7.4 and 7.5, shall exercise such of the rights and powers
vested in it by this Agreement, 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. Any permissive right of the Trustee
enumerated in this Agreement shall not be construed as a duty.

     Subject to Sections 8.2(i), 8.3 and 8.4, the Trustee, upon receipt of all
resolutions, certificates, statements, opinions, reports, documents, orders or
other instruments furnished to the Trustee which are specifically required to be
furnished pursuant to any provision of this Agreement, shall examine them to
determine whether they are in the form required by this Agreement; provided,
however, that the Trustee shall not be responsible for the accuracy or content
of any resolution, certificate, statement, opinion, report, document, order or
other instrument furnished by any party hereunder. If any such instrument is
found not to conform to the requirements of this Agreement in a material manner,
the Trustee shall take action as it deems appropriate to have the instrument
corrected, and if the instrument is not corrected to the

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Trustee's reasonable satisfaction, the Trustee will provide notice thereof to
the Certificateholders and each Rating Agency.

     No provision of this Agreement shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own willful misconduct or in the event the Trustee is acting as successor
servicer pursuant to Section 7.5, to the standard imposed on the Servicer
pursuant to Section 6.3 of this Agreement; provided, however, that:

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

         (ii) The Trustee shall not be personally liable with respect to any
     action taken, suffered or omitted to be taken by it in good faith in
     accordance with this Agreement or at the direction of Certificateholders
     holding Certificates which have an aggregate Certificate Principal Balance
     aggregating not less than 25% of the aggregate Certificate Principal
     Balance of all Certificates relating to the time, method and place of
     conducting any proceeding for any remedy available to the Trustee, or
     exercising or omitting to exercise any trust or power conferred upon the
     Trustee, under this Agreement;

         (iii) The Trustee shall not be liable in its individual capacity for
     any error of judgment made in good faith by any Responsible Officer, unless
     it shall be proved that the Trustee or such Responsible Officer was
     negligent in ascertaining the pertinent facts;

         (iv) The Trustee shall not be liable for any act or omission of the
     Depositor or the Servicer (except for its own acts or omissions as Servicer
     hereunder) or for any but its own acts or omissions;

         (v) The Trustee shall not be deemed to take notice or be deemed to have
     knowledge of any matter, including without limitation any default or Event
     of Default, unless written notice thereof, referring to the Certificates,
     the Depositor, the Trust Fund or this Agreement is received by a
     Responsible Officer of the Trustee at its Corporate Trust Office;

         (vi) Subject to the other provisions of this Agreement and without
     limiting the generality of this Section 8.1, the Trustee shall have no duty
     (A) to see to any recording, filing, or depositing of this Agreement or any
     agreement referred to herein or any financing statement or continuation
     statement evidencing a security interest, or to see to the maintenance of
     any such recording or filing or depositing or to any rerecording, refiling
     or redepositing of any thereof, (B) to see any insurance, (C) to see to the
     payment or discharge of any tax, assessment, or other governmental charge
     or any lien or

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     encumbrance of any kind owing with respect to, assessed or levied against,
     any part of the Trust Fund other than from funds available in the
     Certificate Account, and (D) to confirm or verify the contents of any
     reports or certificates of the Servicer delivered to the Trustee pursuant
     to this Agreement believed by the Trustee to be genuine and to have been
     signed or presented by the proper party or parties;

         (vii) No provision of this Agreement shall require the Trustee to
     expend or risk its own funds or otherwise incur any financial liability in
     the performance of its duties hereunder (except for the giving of required
     notices), or in the exercise of any of its rights and powers, if it shall
     have reasonable grounds for believing the repayment of such funds or
     adequate indemnity against such risk or liability is not reasonably assured
     to it; and

         (viii) When the Trustee is acting as the Servicer pursuant to Section
     7.5, and to the extent permitted under applicable law, the Trustee is
     hereby authorized, in making or disposing of any investment permitted
     hereunder, to deal with itself (in its individual capacity) or with any one
     or more of its Affiliates, whether its Affiliate is acting as an agent of
     the Trustee or of any third person or dealing as principal for its own
     account.

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

     Section 8.2 Certain Matters Affecting Trustee. Except as otherwise provided
in Section 8.1:

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

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

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

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

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

         (vi) The Trustee may execute any of the trusts or powers hereunder or
     perform any duties hereunder either directly or by or through agents,
     attorneys or custodians, and the Trustee shall not be responsible for any
     misconduct or negligence on the part of any such agent, attorney or
     custodian appointed by the Trustee with care. Any such agents, attorneys or
     custodians shall be entitled to all indemnities and protection afforded to
     the Trustee. Any designee of the Trustee shall be considered its "agent"
     hereunder whether performing it as an independent contractor or otherwise.

     Section 8.3 Trustee Not Required to Make Investigation. Prior to the
occurrence of an Event of Default hereunder and after the curing of all Events
of Default which may have occurred, the Trustee shall not be bound to ascertain
or inquire as to the performance or observance of any of the terms, conditions,
covenants or agreements herein or to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond, Mortgage, Mortgage Note
or other paper or document, unless requested in writing so to do by Holders of
Certificates having a Percentage Interest not less than 51% of the Trust Fund;
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Agreement,
the Trustee may require reasonable indemnity against such expense or liability
as a condition to such proceeding. The reasonable expense of every such
examination shall be paid by the Depositor or, if paid by the Trustee, shall be
repaid by the Depositor upon demand.

     Section 8.4 Trustee Not Liable for Certificates or Loans. The recitals
contained herein and in the Certificates (other than the certificate of
authentication on the Certificates) shall be taken as the statements of the
Depositor, and the Trustee assumes no responsibility for the correctness of the
same. The Trustee makes no representations or warranties as to the validity or
sufficiency of this Agreement or of the Certificates or of any Loan or related
document. The Trustee shall not be accountable for the use or application by the
Depositor of any of the Certificates or of the proceeds of such Certificates or
for the use or application of any funds paid to the Servicer in respect of the
Loans or deposited in or withdrawn from the Custodial Account for P&I by the
Servicer or for investment of any such amounts. The Trustee shall not be
responsible for the legality or validity of this Agreement or the validity,
priority, perfection or sufficiency of the security for the Certificates issued
or intended to be issued hereunder. The 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 record this Agreement.

     Neither the Trustee nor any of the directors, officers, employees or agents
of the Trustee shall be under any liability to the Trust Fund or the
Certificateholders for any action taken or for

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refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment while an Event of Default exists; provided,
however, that this provision shall not protect the Trustee or any such person
against any liability which would otherwise be imposed by reason of willful
misfeasance, bad faith or negligence in the performance of duties. The Depositor
hereby agrees to indemnify and hold harmless the Trustee and any director,
officer, employee or agent of the Trustee against any loss, liability or
expense, including reasonable attorneys' fees, incurred in connection with or
related to the Trustee's performance of its powers and duties under this
Agreement (including, without limitation, performance under Section 8.1 hereof),
or any action relating to this Agreement or the Certificates, or the performance
of the Trustee's duties hereunder, other than any loss, liability or expense
incurred by any such Person by reason of willful misfeasance, bad faith or
negligence in the performance of duties. Any such losses, liabilities and
expenses resulting therefrom shall be losses, liabilities and expenses of the
Depositor. The indemnification provided hereunder shall survive termination of
this Agreement.

     Section 8.5 Trustee May Own Certificates. The Trustee and any agent of the
Trustee in its individual or any other capacity may become the owner of or a
pledgee of the Certificates with the same rights it would have if it were not
Trustee or such agent, and may otherwise deal with the parties hereto.

     Section 8.6 Servicer to Pay Trustee's Fees and Expenses. The Servicer
covenants and agrees to pay to the Trustee monthly (or as otherwise agreed), and
the Trustee shall be entitled to receive, reasonable compensation (which shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust) for all services rendered by it in the execution of
the trusts hereby created and in the exercise and performance of any of the
powers and duties hereunder of the Trustee (including any custodial services),
and the Servicer shall pay or reimburse the Trustee upon its request for all
reasonable and usual expenses, disbursements and advances, including reasonable
attorneys' fees, incurred or made by the Trustee in accordance with any of the
provisions of this Agreement (including the reasonable compensation and the
expenses and disbursements of its counsel and of all persons not regularly in
its employ) except any such expense, disbursement or advance as may arise from
its negligence or bad faith. The Tax Matters Person (or Person acting as its
attorney-in-fact or agent) shall indemnify the Trustee for any liability of or
assessment against the Trustee resulting from any error in any tax or tax
information returns prepared or caused to be prepared by such Person. In the
event that (i) the Servicer does not pay to the Trustee any compensation owed to
the Trustee pursuant to this Agreement or (ii) the Trustee is not reimbursed for
any expense, disbursement or advance incurred or made by the Trustee pursuant to
this Agreement, the Trustee shall be entitled to withdraw and retain such amount
from the Certificate Account. In the event the Trustee incurs expenses or
renders services in any proceedings which result from an Event of Default under
Section 7.1, subsections (iii), (iv) or (v) of this Agreement, or from any
default which, with the passage of time, would become an Event of Default, the
expenses so incurred and compensation for services so rendered are intended to
constitute expenses of administration under the United States Bankruptcy Code or
equivalent law.

     Section 8.7 Eligibility Requirements for Trustee. The Trustee hereunder
shall at all times be a corporation or association organized and doing business
under the laws of any state of the United States of America, authorized under
such laws to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000 and subject to supervision or

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examination by federal or state authority. The Trustee shall not control the
Servicer nor be a parent of or a subsidiary of the Servicer. If such corporation
or association publishes reports of condition at least annually, pursuant to law
or to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section 8.7 the combined capital and surplus of such
corporation or association 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 Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.7, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.8.

     Section 8.8 Resignation and Removal of Trustee. The Trustee may at any time
resign and be discharged from the trusts hereby created by giving written notice
of resignation to the Servicer. Such notice shall also be furnished to each
Rating Agency. Upon receiving such notice of resignation, the Servicer shall
promptly appoint a successor trustee by written instrument, in duplicate, one
copy of which instrument shall be delivered to the resigning Trustee and one
copy to the successor trustee. If no successor trustee shall have been so
appointed and have accepted appointment within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee at the expense of the
Depositor.

     If at any time the Trustee shall cease to be eligible in accordance with
the provisions of Section 8.7 and shall fail to resign after written request for
the Trustee's resignation by the Servicer, or if at any time the Trustee shall
become incapable of acting, or shall be adjudged bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then,
with or without cause, the Servicer may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee.

     The Holders of Certificates having a Percentage Interest aggregating not
less than 51% of the aggregate Denomination of all Certificates may at any time
remove the Trustee and appoint a successor trustee by written instrument or
instruments, in triplicate, signed by such holders or their attorneys-in-fact
duly authorized, one complete set of which instrument or instruments shall be
delivered to the Servicer, one complete set to the Trustee so removed and one
complete set to the successor trustee so appointed.

     Any resignation or removal of the Trustee and appointment of successor
trustee pursuant to any of the provisions of this Section 8.8 shall become
effective only upon acceptance of appointment by the successor trustee as
provided in Section 8.9.

     Section 8.9 Successor Trustee. Any successor trustee appointed as provided
in Section 8.8 shall execute, acknowledge and deliver to the Servicer and to its
predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee shall become
effective, and such successor trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as trustee herein. The predecessor trustee shall deliver or cause to be
delivered to the successor trustee all

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Mortgage Files and related documents and statements held by it hereunder (other
than any Mortgage Files at the time held by the Custodian, if it shall agree to
become the agent of any successor trustee hereunder), and the Servicer and the
predecessor trustee shall execute and deliver such instruments and do such other
things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee all such rights, powers, duties and
obligations.

     No successor trustee shall accept appointment as provided in this Section
8.9 unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 8.7.

     Upon acceptance of appointment by a successor trustee as provided in this
Section 8.9, the Servicer shall mail notice of the succession of such trustee
hereunder to all holders of Certificates at their addresses as shown in the
Certificate Register and to each Rating Agency. If the Servicer fails to mail
such notice within ten days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be mailed at the
expense of the Servicer.

     Section 8.10 Merger or Consolidation of Trustee. Any Person into which the
Trustee may be merged or converted or with which it may be consolidated, or any
Person resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any Person succeeding to all or substantially all
of the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder, provided, that such Person shall be eligible under the
provisions of Section 8.7, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

     Section 8.11 Appointment of Co-Trustee or Separate Trustee. Notwithstanding
any other provisions hereof, at any time, for the purpose of meeting any legal
requirements of any jurisdiction in which any part of the Trust Fund or property
securing the same may at the time be located, the Servicer and the Trustee
acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Trustee to act as
co-trustee or co-trustees, jointly with the Trustee, or separate trustee or
separate trustees, of all or any part of the Trust Fund, and to vest in such
Person or Persons, in such capacity, such title to the Trust Fund, or any part
thereof, and, subject to the other provisions of this Section 8.11, such powers,
duties, obligations, rights and trusts as the Servicer and the Trustee may
consider necessary or desirable. If the Servicer shall not have joined in such
appointment within 15 days after the receipt by it of a request so to do, or in
case an Event of Default shall have occurred and be continuing, the Trustee
alone shall have the power to make such appointment. Each co-trustee separate
trustee hereunder shall not be required to meet the terms of eligibility as a
successor trustee under Section 8.7 hereunder and no notice to holders of
Certificates of the appointment of co-trustee(s) or separate trustee(s) shall be
required under Section 8.9 hereof.

     In the case of any appointment of a co-trustee or separate trustee pursuant
to this Section 8.11, all rights, powers, duties and obligations conferred or
imposed upon the Trustee shall be conferred or imposed upon and exercised or
performed by the Trustee and such separate trustee or co-trustee jointly, except
to the extent that under any law of any jurisdiction in which any particular act
or acts are to be performed (whether as Trustee hereunder or as successor to

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<PAGE>

the Servicer hereunder), the Trustee shall be incompetent or unqualified to
perform such act or acts, in which event such rights, powers, duties and
obligations (including the holding of title to the Trust Fund or a portion
thereof in any such jurisdiction) shall be exercised and performed by such
separate trustee or co-trustee at the direction of the Trustee.

     Any notice, request or other writing given to the 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 VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the 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 Trustee. Every
such instrument shall be filed with the Trustee.

     Any separate trustee or co-trustee may, at any time, constitute the
Trustee, its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. The Trustee shall not be responsible
for any action or inaction of any such separate trustee or co-trustee. 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 Trustee, to the extent permitted by law, without
the appointment of a new or successor trustee.

     The Trustee may appoint one or more Eligible Institutions to act as its
agent or agents to perform any or all of its duties and obligations under this
Agreement. Each such agent shall be subject to all of 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
Trustee.

     Section 8.12 Appointment of Custodians. The Trustee may, with the consent
of the Servicer, appoint one or more Custodians, not affiliated with the
Depositor, to review, pursuant to Section 2.2 hereof, and hold all or a portion
of the Mortgage Files as agent for the Trustee. Any Custodian appointed shall be
an institution subject to supervision by federal or state authority, shall have
combined capital and surplus of at least $50,000,000 and shall be qualified to
do business in the jurisdiction in which it holds any Mortgage File.

     Section 8.13 Authenticating Agent.

     (a) The Trustee may appoint from time to time an authenticating agent (the
"Authenticating Agent") which shall be authorized to act on behalf of the
Trustee in authenticating Certificates. Wherever reference is made in this
Agreement to the authentication of Certificates by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication on behalf of the Trustee by the Authenticating Agent and a
certificate of authentication executed on behalf of the Trustee by the
Authenticating Agent. Any successor Authenticating Agent must be acceptable to
the Servicer and have a principal office and place of business in Boston,
Massachusetts, New York, New York or Chicago, Illinois, have

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<PAGE>

a combined capital and surplus of at least $50,000,000, and be authorized to do
a trust business and subject to supervision or examination by federal or state
authorities.

     (b) Any corporation into which the Authenticating Agent 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 Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate agency business of the Authenticating Agent, shall continue to be
the Authenticating Agent without the execution or filing of any paper or any
further act on the part of the Trustee or the Authenticating Agent.

     (c) The Authenticating Agent may at any time resign by giving at least 30
days' advance written notice of resignation to the Trustee and to the Servicer.
The Trustee may at any time terminate the agency of the Authenticating Agent by
giving written notice of termination to the Authenticating Agent and to the
Servicer. Upon receiving a notice of resignation or upon such a termination, or
in case at any time the Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 8.13, the Trustee promptly shall
appoint a successor Authenticating Agent, shall give written notice of such
appointment to the Servicer and shall mail notice of such appointment to all
Certificateholders. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent herein. No successor Authenticating
Agent shall be appointed unless eligible under the provisions of this Section
8.13.

     (d) The Authenticating Agent shall have no responsibility or liability for
any action taken by it as such at the direction of the Trustee. Any reasonable
compensation paid to the Authenticating Agent shall be a reimbursable expense
under Section 8.6.

     Section 8.14 Bloomberg. As soon as practicable after the Closing Date, the
Servicer will arrange with Bloomberg to have the Depositor set up on Bloomberg
to provide the information set forth on Exhibit Q (the "Data") with respect to
the Loans on a monthly basis in a format acceptable to Bloomberg and acceptable
to the Underwriters. During the term of this Agreement, the Servicer will
provide updated Data to Bloomberg on or before each Distribution Date.

     Section 8.15 Reports to Securities and Exchange Commission. Unless
otherwise directed by the Depositor in writing, the Servicer shall prepare, sign
and file with the Securities and Exchange Commission, on behalf of the
Depositor, (i) no later than ten days after each Distribution Date, the
Certificateholders' Report on the appropriate form and in the appropriate medium
authorized or prescribed therefor under the Exchange Act, (ii) no later than
March 25 of each calendar year, an annual report meeting the requirements of the
Exchange Act on the appropriate form and in the appropriate medium authorized or
prescribed therefor under the Exchange Act. The Servicer shall promptly forward
copies of all filings made pursuant to this Section 8.15 to the Depositor.

     Section 8.16 [Reserved].

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<PAGE>

                                   ARTICLE IX

                                   TERMINATION

     Section 9.1 Termination upon Purchase by the Depositor or Liquidation of
All Loans. The respective obligations and responsibilities of the Servicer and
the Trustee created hereby (other than the obligation to make payments to
Certificateholders as hereafter set forth in this Section 9.1 and obligations to
the Trustee in Sections 8.4 and 8.6) shall terminate upon the earlier of (i) the
later of the final payment or other liquidation (or any Advance with respect
thereto) of the last Loan remaining in the Trust Fund and the disposition of all
property acquired in respect of any Loan or (ii) the purchase by the Servicer of
all Loans at a price equal to the sum of (a) the principal balance of each Loan
plus accrued interest thereon at the applicable Mortgage Interest Rate to the
next scheduled Installment Due Date and (b) the fair market value of all
acquired property in respect of Loans such fair market value to be determined by
an appraiser selected by the Trustee; provided, however, that in no event shall
the trust created hereby continue beyond 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, living on the date
hereof; and provided, further, that a "plan of liquidation" of each of REMIC I
and II in accordance with Section 860F of the Code must be adopted in
conjunction with any termination effected pursuant to subclauses (i) or (ii) of
this Section 9.1.

     The Depositor is hereby granted the right to purchase the Loans pursuant to
clause (ii) above, provided, however, that such right shall be conditioned upon
the Principal Balances of such Loans, at the time of any such purchase,
aggregating an amount less than 10% of the aggregate Principal Balance of the
Loans on the Cut-off Date, after deduction of payments due on or before such
date.

     Notice of any termination pursuant to clause (i) or (ii) above, specifying
the Distribution Date upon which all Certificateholders may surrender their
Certificates to the Trustee or its agent for payment and cancellation, shall be
given promptly by the Trustee or its agent (upon direction by the Servicer no
less than 10 days prior to the date such notice is to be mailed) by letter to
Certificateholders and each Rating Agency mailed by first class mail no later
than the 25th day of the month preceding the month of such final distribution
specifying (i) the Distribution Date upon which final payment on the
Certificates will be made upon presentation and surrender of Certificates at the
office or agency of the Trustee or the Certificate Registrar therein designated,
(ii) the amount of any such final payment and (iii) that the Record Date
otherwise applicable to such Distribution Date is not applicable, payments being
made only upon presentation and surrender of the Certificates at the office or
agency of the Trustee or the Certificate Registrar therein specified. The
Trustee or its agent shall give such notice to the Certificate Registrar and
each Rating Agency at the time such notice is given to the Certificateholders.
Upon any such termination, the duties of the Certificate Registrar shall also
terminate. In the event such notice is given in connection with Servicer's
election to purchase, the Servicer shall deposit in the Certificate Account on
the related Withdrawal Date an amount equal to the above-described purchase
price and upon such deposit Certificateholders will be entitled to the amount of
such purchase price but not amounts in excess thereof, all as provided herein.
With respect to the Certificates, upon presentation and surrender of the
Certificates pursuant to any termination under this Section 9.1, the Trustee or
Paying Agent shall cause to be distributed to

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<PAGE>

Certificateholders an amount equal to (a) the amount otherwise distributable on
such Distribution Date, if not in connection with a purchase; or (b) if the
Servicer elected to so purchase, the purchase price calculated as above
provided. Upon any termination pursuant to clause (ii) above, or upon
certification to the Trustee by a Servicing Officer following such final
deposit, the Trustee and any Custodian shall promptly release to the Servicer
the Mortgage Files for the remaining Loans, and the Trustee shall execute all
assignments, endorsements and other instruments necessary to effectuate such
transfer.

     In the event that all of the Certificateholders shall not surrender their
Certificates for cancellation within three months after the time specified in
the above-mentioned written notice, the Trustee or its agent shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within three months after the second notice all the Certificates
shall not have been surrendered for cancellation, the Trustee or its agent shall
take appropriate and reasonable steps as directed by the Servicer, to contact
the remaining Certificateholders concerning surrender of their Certificates, and
the cost thereof shall be paid out of the funds and other assets which remain in
trust hereunder.

     Section 9.2 Trusts Irrevocable. Except as expressly provided herein, all
trusts created hereby are irrevocable.

     Section 9.3 Additional Termination Requirements.

     (a) In the event the Servicer exercises its purchase option as provided in
Section 9.1, the Trust Fund shall be terminated in accordance with the following
additional requirements, unless the Trustee has received an Opinion of Counsel
to the effect that the failure of the Trust Fund to comply with the requirements
of this Section 9.3 will not (i) result in the imposition of taxes on
"prohibited transactions" of REMIC I or REMIC II of the Trust Fund as described
in Section 860F(a)(2) of the Code, or (ii) cause either REMIC I or REMIC II of
the Trust Fund to fail to qualify as a REMIC at any time that any Certificates
are outstanding:

             (A) Within 90 days prior to the final Distribution Date set forth
         in the notice given by the Depositor under Section 9.1, the Tax Matters
         Person shall prepare the documents associated with and shall adopt a
         plan of complete liquidation of each of REMIC I and REMIC II of the
         Trust Fund; and

             (B) At or after the time of adoption of such a plan of complete
         liquidation and at or prior to the final Distribution Date, the
         Servicer as agent of the Trustee shall sell all of the assets of the
         Trust Fund to the Depositor for cash in accordance with such plan of
         liquidation; provided, however, that in the event that a calendar
         quarter ends after the time of adoption of such a plan of complete
         liquidation but prior to the final Distribution Date, the Servicer
         shall not sell any of the assets of the Trust Fund prior to the close
         of that calendar quarter.

     (b) The Tax Matters Person hereby agrees to adopt such a plan of complete
liquidation and to take such other action in connection therewith as may be
reasonably requested by the Servicer.

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<PAGE>

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

     Section 10.1 Amendment. This Agreement may be amended from time to time by
the Depositor, Servicer and the Trustee, without the consent of any of the
Certificateholders, (a) to cure any ambiguity, to correct or supplement any
provision herein which may be inconsistent with any other provision herein, or
to make any other provisions with respect to matters or questions arising under
this Agreement, (b) to modify, eliminate or add to any provisions to such extent
as shall be necessary to maintain the qualification of the Trust Fund as a REMIC
at all times that any Class A or Subordinate Certificates are outstanding,
provided, that the Trustee has received an Opinion of Counsel to the effect that
such action is necessary or desirable to maintain such qualification, provided,
that such action under clauses (a) and (b) above shall not adversely affect in
any material respect the interests of any Certificateholder or (c) such
amendment is made to conform the terms of this Agreement to the terms described
in the Prospectus dated October 12, 1999, together with the Prospectus
Supplement dated July 26, 2001.

     This Agreement may also be amended from time to time by the Depositor,
Servicer and the Trustee with the consent of the Holders of Certificates
evidencing, in aggregate, not less than 50% of the Trust Fund for the purpose of
adding any provisions or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Holders of Certificates; provided, however, that no such amendment shall (a)
reduce in any manner the amount of, or delay the timing of, payments received on
Loans which are required to be distributed in respect of any Certificate without
the consent of the Holder of such Certificate; (b) adversely affect in any
material respect the interest of the Holders of the Class A Certificates in a
manner other than as described in (a) above without the consent of the Holders
of Class A Certificates aggregating not less than 66-2/3% of the aggregate
Percentage Interest evidenced by all Class A Certificates; (c) adversely affect
in any material respect the interest of the Holders of the Subordinate
Certificates in a manner other than as described in clause (a) above without the
consent of the Holders of Subordinate Certificates aggregating not less than
66-2/3% of the aggregate Percentage Interest evidenced by all Subordinate
Certificates; (d) adversely affect in any material respect the interest of the
Class R Certificateholders without the consent of the Holder of the Class R
Certificate; (e) change in any material respect the rights and obligations of
the Servicer or successor Servicer under this Agreement without the prior
written consent of such party; or (f) reduce the aforesaid percentage of the
Certificates the Holders of which are required to consent to any such amendments
without the consent of the Holders of all Certificates then outstanding;
provided, that for the purposes of this Agreement, the Holders of the Class R
Certificates shall have no right to vote at all times that any Class A
Certificates or Subordinate Certificates are outstanding if such amendment
relates to the modification, elimination or addition of any provision necessary
to maintain the qualification of the Trust Fund as a REMIC.

     Notwithstanding any contrary provision of this Agreement, the Trustee shall
not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel to the effect that such amendment will not cause
either REMIC I or REMIC II of the Trust Fund to fail to qualify as a REMIC at
any time that any REMIC I Regular Interests or REMIC II Certificates are
outstanding.

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<PAGE>

     As soon as practicable after the execution of any such amendment, the
Trustee shall furnish written notification of the substance of such amendment to
each Certificateholder and each Rating Agency.

     It shall not be necessary for the consent of the Certificateholders under
this Section 10.1 to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

     Prior to the execution of any amendment to this Agreement, the 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 Trustee may, but shall not be obligated to, enter into any such amendment
which affects the Trustee's own rights, duties or immunities under this
Agreement.

     Section 10.2 Recordation of Agreement. This Agreement (or an abstract
hereof, if acceptable by the applicable recording office) is subject to
recordation in all appropriate public offices for real property records in all
the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Servicer at its expense, but only after the Depositor has delivered to the
Trustee an Opinion of Counsel to the effect that such recordation materially and
beneficially affects the interests of the Certificateholders. Without limiting
the foregoing, the Trustee shall make the filings required by Chapter 182 of the
Massachusetts General Laws.

     For the purpose of facilitating the recordation of this Agreement as herein
provided and for other purposes, this Agreement may be executed simultaneously
in any number of counterparts, each of which counterparts shall be deemed to be
an original, and such counterparts shall constitute but one and the same
instrument.

     Section 10.3 Limitation on Rights of Certificateholders. The death or
incapacity of any Certificateholder shall not operate to terminate this
Agreement or the Trust Fund, nor entitle such Certificateholder's legal
representatives or heirs to claim an accounting or take any action or proceeding
in any court for a partition or winding up of the Trust Fund, nor otherwise
affect the rights, obligations and liabilities of the parties hereto or any of
them.

     Except as otherwise expressly provided herein no Certificateholder, solely
by virtue of its status as Certificateholder, shall have any right to vote or in
any manner otherwise control the operation and management of the Trust Fund, or
the obligations of the parties hereto, nor shall anything herein set forth, or
contained in the terms of the Certificates, be construed so as to constitute the
Certificateholders from time to time as partners or members of an association,
nor shall any Certificateholder be under any liability to any third person by
reason of any action taken by the parties to this Agreement pursuant to any
provision hereof.

     No Certificateholder, solely by virtue of its status as Certificateholder,
shall have any right by virtue or by availing of any provision of this Agreement
to institute any suit, action or

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<PAGE>

proceeding in equity or at law upon or under or with respect to this Agreement,
unless such holder previously shall have given to the Trustee a written notice
of default and of the continuance thereof, as hereinbefore provided, and unless
all of the Holders of Certificates evidencing, in aggregate, not less than 25%
of the Trust Fund shall have made written request upon the Trustee to institute
such action, suit or proceeding in its own name as Trustee hereunder and shall
have offered to the Trustee such reasonable indemnity as it may require against
the costs, expenses and liabilities to be incurred therein or thereby, and the
Trustee, for 60 days after its receipt of such notice, request and offer of
indemnity, shall have neglected or refused to institute any such action, suit or
proceeding; it being understood and intended, and being expressly covenanted by
each Certificateholder with every other Certificateholder and the Trustee, that
no one or more holders of Certificates shall have any right in any manner
whatever by virtue or by availing of any provision of this Agreement to affect,
disturb or prejudice the rights of the Holders of any other of such
Certificates, or to obtain or seek to obtain priority over or preference to any
other such Holder, or to enforce any right under this Agreement, except in the
manner herein provided and for the benefit of all Certificateholders. For the
protection and enforcement of the provisions of this Section 10.3, each and
every Certificateholder and the Trustee shall be entitled to such relief as can
be given either at law or in equity.

     Section 10.4 Governing Law; Jurisdiction. THIS AGREEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 10.5 Notices. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered at or mailed by certified or registered mail, return receipt requested
(a) in the case of the Depositor, to ABN AMRO Mortgage Corporation, 135 South
LaSalle Street, Suite 925, Chicago, Illinois 60603, Attention: Maria Fregosi -
Director - ABN AMRO Mortgage Operations, with a copy to ABN AMRO North America,
Inc., 135 South LaSalle Street, Chicago, Illinois 60603, Attention: Kirk Flores
- Associate General Counsel, or such other address as may hereafter be furnished
to the Servicer and the Trustee in writing by the Depositor, (b) in the case of
the Servicer, to Washington Mutual Mortgage Securities Corp., 1201 Third Avenue,
WMT17, Seattle, Washington 98101, Attention: Legal Department, or such other
address as may hereafter be furnished to the Depositor and the Trustee in
writing by the Servicer, (c) in the case of the Trustee, to the Corporate Trust
Office, or such other address as may hereafter be furnished to the Depositor and
the Servicer in writing by the Trustee, in each case Attention: Corporate Trust
Department, (d) in the case of Moody's, to Moody's Investors Service, Inc., 99
Church Street, New York, New York 10007, Attention: Asset Backed Monitoring, or
such other address as may hereinafter be furnished to the Depositor in writing
by Moody's and (e) in the case of Fitch, to Fitch, Inc., One State Street Plaza,
32nd Floor, New York, New York 10004, Attention: Alla Sirotic, Residential
Mortgage, or such other address as may hereinafter be furnished to the Depositor
in writing by Fitch. Any notice required or permitted to be mailed to a
Certificateholder shall be given by first class mail, postage prepaid, at the
address of such Holder as shown in the Certificate Register. Any notice mailed
or transmitted within the time prescribed in this Agreement shall be
conclusively presumed to have been duly given, whether or not the

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<PAGE>

addressee receives such notice; provided, that any demand, notice or
communication to or upon the Depositor, the Servicer or the Trustee shall not be
effective until received.

     Section 10.6 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the holders thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       96
<PAGE>

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

                                             ABN AMRO MORTGAGE CORPORATION,
                                             as Depositor

                                             By: /s/ Daniel J. Fischer
                                             Name: Daniel J. Fischer
                                             Its:  Vice President

                                      S-1
<PAGE>

                                               State Street Bank AND TRUST
                                               COMPANY,
                                               as Trustee

                                               By: /s/ Clare M. O'Brien
                                               Name: Clare M. O'Brien
                                               Its:  Vice President

                                      S-2
<PAGE>

                                            WASHINGTON MUTUAL MORTGAGE
                                            SECURITIES CORP.
                                            as Servicer

                                            By: /s/ Michael Parker
                                            Name: Michael Parker
                                            Its:  President

                                      S-3
<PAGE>

STATE OF FLORIDA                    )
                                    )   ss.
COUNTY OF ____________              )

     On the ____ day of July, 2001, before me, _________________________,
personally appeared Daniel J. Fischer, a Vice President of ABN AMRO Mortgage
Corporation, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument, and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument the person, or the entity
upon behalf of which the person acted, executed the instrument.

     WITNESS my hand and official seal:

                                       Signature
                                                --------------------------------
                                                   (SEAL)

                                      S-4
<PAGE>

STATE OF _____________        )
                              )   ss.
COUNTY OF ____________        )

     On the _____ day of July, 2001, before me, __________________________,
personally appeared ___________________, known to me to be a __________________
of State Street Bank and Trust Company, one of the institutions that executed
the within instrument and also known to me to be the person who executed it on
behalf of said institution, and acknowledged to me that such institution
executed the within instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

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

[NOTARIAL SEAL]

                                      S-5
<PAGE>

STATE OF ________________           )
                                    )   ss.
COUNTY OF _______________           )

     On the ____ day of July, 2001, before me, _________________, personally
appeared _________________, known to me to be a _________________ of Washington
Mutual Mortgage Securities Corp., one of the corporations that executed the
within instrument and also known to me to be the person who executed it on
behalf of said corporation, and acknowledged to me that such corporation
executed the within instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

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

[NOTARIAL SEAL]

                                      S-6
<PAGE>

                                    EXHIBIT A
                                    ---------

                              FORMS OF CERTIFICATES

<PAGE>

                                                                     Exhibit A-1
                                                                  CUSIP ________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-1

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.50% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                         Portion of the Class A-1 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $________________

Class A-1 Remittance Rate:             6.50%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-1 Principal Balance as of the Cut-Off Date:  $______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-1-1
<PAGE>

                                                                     Exhibit A-2
                                                               CUSIP ___________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-2

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                         Portion of the Class A-2 Notional Amount
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $_____________

Class A-2 Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-2 Notional Amount as of the Cut-Off Date:    $______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-2-1
<PAGE>

                                                                     Exhibit A-3
                                                                 CUSIP _________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-3

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                        Portion of the Class A-3 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $______________

Class A-3 Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-3 Principal Balance as of the Cut-Off Date:  $______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-3-1
<PAGE>

                                                                     Exhibit A-4
                                                                 CUSIP__________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-4

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                        Portion of the Class A-4 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $______________

Class A-4 Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-4 Principal Balance as of the Cut-Off Date:  $________________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-4-1
<PAGE>

                                                                     Exhibit A-5
                                                                   CUSIP________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-5

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                         Portion of the Class A-5 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $________________

Class A-5 Remittance Rate:              6.75%
Cut-Off Date:                           July 1, 2001
First Distribution Date:                August 25, 2001
Last Scheduled Distribution Date:       August 25, 2031

Class A-5 Principal Balance as of the Cut-Off Date:  $__________________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-5-1
<PAGE>

                                                                     Exhibit A-6
                                                                     CUSIP______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-6

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                         Portion of the Class A-6 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $_________________

Class A-6 Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-6 Principal Balance as of the Cut-Off Date:  $______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-6-1

<PAGE>

                                                                     Exhibit A-7
                                                                           CUSIP

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-7

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.50% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                        Portion of the Class A-7 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $________________

Class A-7 Remittance Rate:             6.50%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-7 Principal Balance as of the Cut-Off Date:  $_______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-7-1

<PAGE>

                                                                     Exhibit A-8
                                                                     CUSIP______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-8

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
7.00% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                       Portion of the Class A-8 Principal Balance
                                    as of the Cut-Off Date evidenced by this
                                    Certificate:  $__________________

Class A-8 Remittance Rate:             7.00%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-8 Principal Balance as of the Cut-Off Date:  $_______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-8-1
<PAGE>

                                                                     Exhibit A-9
                                                                     CUSIP______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-9

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                         Portion of the Class A-9 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $_____________

Class A-9 Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-9 Principal Balance as of the Cut-Off Date:  $________________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-9-1
<PAGE>

                                                                    Exhibit A-10
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-10

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                        Portion of the Class A-10 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $________________

Class A-10 Remittance Rate:            6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-10 Principal Balance as of the Cut-Off Date: $______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-10-1
<PAGE>

                                                                    Exhibit A-11
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-11

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                       Portion of the Class A-11 Principal Balance
                                    as of the Cut-Off Date evidenced by this
                                    Certificate:  $________________

Class A-11 Remittance Rate:            6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-11 Principal Balance as of the Cut-Off Date: $______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-11-1
<PAGE>

                                                                    Exhibit A-12
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-12

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                       Portion of the Class A-12 Principal Balance
                                    as of the Cut-Off Date evidenced by this
                                    Certificate:  $________________

Class A-12 Remittance Rate:            6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-12 Principal Balance as of the Cut-Off Date: $______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-12-1
<PAGE>

                                                                    Exhibit A-13
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-13

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                        Portion of the Class A-13 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $________________

Class A-13 Remittance Rate:            6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-13 Principal Balance as of the Cut-Off Date: $______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-13-1
<PAGE>

                                                                    Exhibit A-14
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-X

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                          Portion of the Class A-X Notional Amount
                                       as of the Cut-Off Date evidenced by this
                                       Certificate:  $_______________

Class A-X Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class A-X Notional Amount as of the Cut-Off Date:    $_______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-14-1
<PAGE>

                                                                    Exhibit A-15
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-P

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. Interest is not
payable with respect to this Certificate.

[Unless this Certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trustee or its
agent for registration of transfer, exchange, or payment, and any Certificate
issued is registered in the name of Cede & Co. or 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.]

Series 2001-4                         Portion of the Class A-P Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $_______________

Class A-P Remittance Rate:               0.00%

Cut-Off Date:                            July 1, 2001

First Distribution Date:                 August 25, 2001

Last Scheduled Distribution Date:        August 25, 2031

Class A-P Principal Balance as of the Cut-Of Date:  $________________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-15-1
<PAGE>

                                                                    Exhibit A-16
                                                                    CUSIP

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                     Class M

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is July __, 2001.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.75% per annum.

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

The Class M Certificates will be subordinate in right of payment to and provide
credit support to certain Classes of Certificates, as described in the Pooling
Agreement.

Series 2001-4                         Portion of the Class M Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $_________________

Class M Remittance Rate:               6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class M Principal Balance as of the Cut-Off Date:    $________________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-16-1
<PAGE>

                                                                    Exhibit A-17
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-1

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

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

The Class B-1 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2001-4                         Portion of the Class B-1 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate: $_________________

Class B-1 Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class B-1 Principal Balance as of the Cut-Off Date:  $________________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-17-1
<PAGE>

                                                                    Exhibit A-18
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-2

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July __, 2001. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.75% per annum.

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

The Class B-2 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2001-4                         Portion of the Class B-2 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $_______________

Class B-2 Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class B-2 Principal Balance as of the Cut-Off Date:  $________________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-18-1
<PAGE>

                                                                    Exhibit A-19
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-3

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is July __, 2001.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.75% per annum.

                  IN THE CASE OF ANY CLASS B-3 CERTIFICATE PRESENTED FOR
         REGISTRATION IN THE NAME OF AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT
         TO THE PROHIBITED TRANSACTION PROVISIONS OF THE EMPLOYEE RETIREMENT
         INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
         THE CODE (OR COMPARABLE PROVISIONS OF ANY SUBSEQUENT ENACTMENTS) (A
         "PLAN"), A TRUSTEE OF ANY SUCH PLAN, OR ANY OTHER PERSON WHO IS USING
         "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION, THE TRUSTEE
         OR CERTIFICATE REGISTRAR SHALL REQUIRE SUCH TRANSFEREE TO PROVIDE AN
         OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE OFFICER OF SUCH
         TRANSFEREE STATING THAT THE TRANSFEREE IS AN INSURANCE COMPANY USING
         ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE MEANING OF
         DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE")
         95-60) TO EFFECT SUCH PURCHASE AND SATISFIES ALL OF THE REQUIREMENTS
         FOR EXEMPTIVE RELIEF UNDER SECTIONS I AND III OF PTCE 95-60, WHICH
         OFFICER'S CERTIFICATE SHALL NOT BE AN EXPENSE OF THE TRUSTEE OR THE
         DEPOSITOR.

The Class B-3 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2001-4                         Portion of the Class B-3 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $_________________

Class B-3 Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class B-3 Principal Balance as of the Cut-Off Date:  $________________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-19-1
<PAGE>

                                                                    Exhibit A-20
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-4

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is July __, 2001.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.75% per annum.

                  IN THE CASE OF ANY CLASS B-4 CERTIFICATE PRESENTED FOR
         REGISTRATION IN THE NAME OF AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT
         TO THE PROHIBITED TRANSACTION PROVISIONS OF THE EMPLOYEE RETIREMENT
         INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
         THE CODE (OR COMPARABLE PROVISIONS OF ANY SUBSEQUENT ENACTMENTS) (A
         "PLAN"), A TRUSTEE OF ANY SUCH PLAN, OR ANY OTHER PERSON WHO IS USING
         "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION, THE TRUSTEE
         OR CERTIFICATE REGISTRAR SHALL REQUIRE SUCH TRANSFEREE TO PROVIDE AN
         OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE OFFICER OF SUCH
         TRANSFEREE STATING THAT THE TRANSFEREE IS AN INSURANCE COMPANY USING
         ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE MEANING OF
         DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE")
         95-60) TO EFFECT SUCH PURCHASE AND SATISFIES ALL OF THE REQUIREMENTS
         FOR EXEMPTIVE RELIEF UNDER SECTIONS I AND III OF PTCE 95-60, WHICH
         OFFICER'S CERTIFICATE SHALL NOT BE AN EXPENSE OF THE TRUSTEE OR THE
         DEPOSITOR

The Class B-4 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2001-4                        Portion of the Class B-4 Principal Balance
                                     as of the Cut-Off Date evidenced by this
                                     Certificate:  $_______________

Class B-4 Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class B-4 Principal Balance as of the Cut-Off Date:  $_______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-20-1
<PAGE>

                                                                    Exhibit A-21
                                                                    CUSIP_______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-5

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is July __, 2001.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.75% per annum.

                  IN THE CASE OF ANY CLASS B-5 CERTIFICATE PRESENTED FOR
         REGISTRATION IN THE NAME OF AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT
         TO THE PROHIBITED TRANSACTION PROVISIONS OF THE EMPLOYEE RETIREMENT
         INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
         THE CODE (OR COMPARABLE PROVISIONS OF ANY SUBSEQUENT ENACTMENTS) (A
         "PLAN"), A TRUSTEE OF ANY SUCH PLAN, OR ANY OTHER PERSON WHO IS USING
         "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION, THE TRUSTEE
         OR CERTIFICATE REGISTRAR SHALL REQUIRE SUCH TRANSFEREE TO PROVIDE AN
         OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE OFFICER OF SUCH
         TRANSFEREE STATING THAT THE TRANSFEREE IS AN INSURANCE COMPANY USING
         ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE MEANING OF
         DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE")
         95-60) TO EFFECT SUCH PURCHASE AND SATISFIES ALL OF THE REQUIREMENTS
         FOR EXEMPTIVE RELIEF UNDER SECTIONS I AND III OF PTCE 95-60, WHICH
         OFFICER'S CERTIFICATE SHALL NOT BE AN EXPENSE OF THE TRUSTEE OR THE
         DEPOSITOR.

The Class B-5 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2001-4                         Portion of the Class B-5 Principal Balance
                                      as of the Cut-Off Date evidenced by this
                                      Certificate:  $_________________

Class B-5 Remittance Rate:             6.75%
Cut-Off Date:                          July 1, 2001
First Distribution Date:               August 25, 2001
Last Scheduled Distribution Date:      August 25, 2031

Class B-5 Principal Balance as of the Cut-Off Date:  $_______________

                              --------------------
                                Registered Owner             Certificate No.___

                                     A-21-1
<PAGE>

                                    EXHIBIT B

                          FORM OF RESIDUAL CERTIFICATE

                        MORTGAGE PASS-THROUGH CERTIFICATE             CUSIP_____

                                     Class R

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to-four family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE DEPOSITOR AND
THE CERTIFICATE REGISTRAR THAT (1) SUCH TRANSFEREE IS NOT EITHER (A) THE UNITED
STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION
521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE
CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C) BEING
HEREINAFTER REFERRED TO AS A "DISQUALIFIED ORGANIZATION"), OR (D) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE
TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX. SUCH AFFIDAVIT SHALL
INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL CONDITION OF THE PROPOSED
TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY
TRANSFER, SALE OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A
DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND
SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE. EACH HOLDER OF A CLASS R CERTIFICATE BY ACCEPTANCE OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

IN THE CASE OF ANY CLASS R CERTIFICATE PRESENTED FOR REGISTRATION IN THE NAME OF
AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED TRANSACTION
PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF ANY
SUBSEQUENT ENACTMENTS) (A "PLAN"), OR A TRUSTEE OF ANY SUCH PLAN, OR ANY OTHER
PERSON WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION,
THE TRUSTEE OR CERTIFICATE REGISTRAR SHALL REQUIRE SUCH TRANSFEREE TO PROVIDE AN
OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE OFFICER OF SUCH TRANSFEREE STATING
THAT THE TRANSFEREE IS AN INSURANCE COMPANY USING ASSETS OF AN "INSURANCE
COMPANY GENERAL ACCOUNT" (WITHIN THE MEANING OF DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION ("PTCE") 95-60) TO EFFECT SUCH PURCHASE AND
SATISFIES ALL OF THE REQUIREMENTS FOR EXEMPTIVE RELIEF UNDER SECTIONS I AND III
OF PTCE 95-60, WHICH OFFICER'S CERTIFICATE SHALL NOT BE AN EXPENSE OF THE
TRUSTEE OR THE DEPOSITOR.

Solely for U.S. federal income tax purposes, this Certificate represents
"residual interests" in "real estate mortgage investment conduits," as those
terms are defined in Sections 860G and 860D, respectively, of the Internal
Revenue Code of 1986, as amended.

Series 2001-4                   Percentage Interest evidenced by this Class R
                                Certificate in the distributions to be made
                                with respect to the Class R Certificate: [____]%

Class R Remittance Rate:  6.75% Additionally, the Class R Certificates are
                                entitled to Excess Liquidation Proceeds and the
                                Residual Distribution Amount as defined in the
                                Pooling Agreement.

Cut-Off Date:                          July 1, 2001

First Distribution Date:               August 25, 2001

Last Scheduled Distribution Date:      August 25, 2031

Class R Principal Balance as of the Cut-Off Date:    $100

                              --------------------
                                Registered Owner             Certificate No.___

                                       B-1
<PAGE>

                                    EXHIBIT C

                                   [RESERVED]

                                      C-1

<PAGE>

                                    EXHIBIT D

                                SCHEDULE OF LOANS

            A LIST OF SPECIFIC MORTGAGE LOANS AVAILABLE UPON REQUEST

                                      D-1
<PAGE>

                                    EXHIBIT E
                                    ---------

                           FIELDS OF LOAN INFORMATION

Deal Name
Distribution Date
Loan Number
City
State
Zip Code
Property Type (SFR, CONDO, etc.)
Occupancy Status (Owner, Investor, etc.)
Loan Purpose (Purchase, Refi, etc.)
Loan Type Loan Status (Current, Foreclosure, REO, Bankruptcy)
Original Term of Loan
Amortization Term
First Payment of Loan
Maturity Date
Appraisal Value
Original LTV
Original Principal Balance
Previous Month's Balance
Current Principal Balance
Prepay Date
Prepay Status (Loan has been prepaid, liquidated or repurchased by the Servicer)
Original Scheduled P&I
Current Scheduled P&I
Scheduled Interest Amount
Scheduled Principal Amount
Curtailment
Note Rate
Paid to Date
Payment Date

                                      E-1
<PAGE>

                                    EXHIBIT F

                       FORM OF TRANSFEROR CERTIFICATE FOR
                         PRIVATELY OFFERED CERTIFICATES

                                     [Date]

State Street Bank and Trust Company, as Trustee
225 Franklin Street
Boston, MA 02110
Attn: Corporate Trust, ABN AMRO 2001-4

State Street Bank and Trust Company, as Certificate Registrar
225 Franklin Street
Boston, MA 02110
Attn: Corporate Trust, ABN AMRO 2001-4

    Re: Purchase of ABN AMRO Mortgage Corporation Mortgage Pass-Through
        Certificates Series 2001-4, Class [B-3] [B-4] [B-5] (the "Certificates")

Ladies and Gentlemen:

     In connection with our disposition of the above Certificates we certify
that (a) we understand the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act") and are being disposed by us in a
transaction that is exempt from the registration requirements of the Act, and
(b) we have not offered or sold any certificates to, or solicited offers to buy
any Certificates from, any person, or otherwise approached or negotiated with
any person with respect thereto, or taken any other action which would result in
a violation of Section 5 of the Act.

                                       Very truly yours,

                                       [Name of Transferor]

                                       By:
                                          --------------------------------------
                                                    Authorized Officer

                                      F-1
<PAGE>

                                    EXHIBIT G
                                    ---------

                      FORM OF TRANSFEREE'S CERTIFICATE FOR
                         PRIVATELY OFFERED CERTIFICATES

                                     [Date]

State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
Attn: Corporate Trust, ABN AMRO 2001-4

ABN AMRO Mortgage Corporation
135 South LaSalle Street, Suite 925
Chicago, IL 60603

State Street Bank and Trust Company, as Certificate Registrar
225 Franklin Street
Boston, MA 02110
Attn: Corporate Trust, ABN AMRO 2001-4

     The undersigned (the "Purchaser") proposes to purchase [Class B-3] [Class
B-4] [Class B-5] Certificates evidencing an undivided interest in ABN AMRO
Mortgage Corporation Mortgage Pass-Through Certificates, Series 2001-4 (the
"Purchased Certificates") in the principal amount of $__________. In doing so,
the Purchaser hereby acknowledges and agrees as follows:

     Section 1. Definitions. Each capitalized term used herein and not
otherwise defined herein shall have the meaning ascribed to it in the Pooling
and Servicing Agreement, dated as of July 1, 2001, between ABN AMRO Mortgage
Corporation ("AAMC"), Washington Mutual Mortgage Securities Corp., as servicer
(the "Servicer") and State Street Bank and Trust Company, as trustee (the
"Trustee"), of the ABN AMRO Mortgage Corporation Mortgage Pass-Through
Certificates, Series 2001-4.

     Section 2. Representations and Warranties of the Purchaser. In
connection with the proposed transfer, the Purchaser represents and warrants to
AAMC, the Servicer, the Certificate Registrar and the Trustee that:

     (a) The Purchaser is duly organized, validly existing and in good standing
under the laws of the jurisdiction in which the Purchaser is organized, is
authorized to invest in the Purchased Certificates, and to enter into this
Agreement, and duly executed and delivered this Agreement;

     (b) The Purchaser is acquiring the Purchased Certificates for its own
account as principal and not with a view the distribution thereof, in whole or
in part;

     (c) The Purchaser is an "accredited investor" as such term is defined in
paragraph (a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) of Section 501 of Regulation
D under the

                                      G-1
<PAGE>

Securities Act of 1933, as amended (the "Act"), has knowledge of financial and
business matters and is capable of evaluating the merits and risks of an
investment in the Purchased Certificates; the Purchaser has sought such
accounting, legal and tax advice as it has considered necessary to make an
informed investment decision; and the Purchaser is able to bear the economic
risk of an investment in the Purchased Certificates and can afford a complete
loss of such investment;

     (d) The Purchaser is not affiliated with the Trustee;

     (e) The Purchaser confirms that AAMC has made available to the Purchaser
the opportunity to ask questions of, and receive answers from AAMC concerning
the Trust, the purchase by the Purchaser of the Purchased Certificates and all
matters relating thereto that AAMC possesses or can acquire without unreasonable
effort or expense;

     (f) If applicable, the Purchaser has complied, and will continue to comply,
with the guidelines established by Thrift Bulletin 12 issued December 13, 1988,
by the Office of Regulatory Activities of the Federal Home Loan Bank System; and

     (g) The Purchaser will provide the Trustee and the Servicer with affidavits
substantially in the form of Exhibit A attached hereto.

     Section 3. Transfer of Purchased Certificates.

     (a) The Purchaser understands that the Purchased Certificates have not been
registered under the Act, or any state securities laws and that no transfer may
be made unless the Purchased Certificates are registered under the Act and under
applicable state law or unless an exemption from registration is available. The
Purchaser further understands that neither AAMC nor the Trust is under any
obligation to register the Purchased Certificates or make an exemption
available. In the event that such a transfer is to be made within two years from
the Closing Date without registration under the Act or applicable state
securities laws, (i) the Trustee or the Certificate Registrar shall require, in
order to assure compliance with such laws, that the Certificateholder's
prospective transferees each certify to AAMC, the Certificate Registrar and the
Trustee as to the factual basis for the registration or qualification exemption
relied upon, and (ii) the Trustee, the Certificate Registrar or AAMC may require
an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act and state securities laws, which Opinion of Counsel shall not be an
expense of the Trustee, the Certificate Registrar or AAMC. Any such
Certificateholder desiring to effect such transfer shall, and does hereby agree
to, indemnify the Trustee and AAMC against any liability that may result if the
Transfer is not so exempt or is not made in accordance with such federal and
state laws.

     (b) No transfer of a Purchased Certificate shall be made unless the
transferee provides AAMC, the Certificate Registrar and the Trustee with (i) a
Transferee's Agreement, substantially in the form of this Agreement, and (ii) an
affidavit substantially in the form of Exhibit A hereto that the proposed
transferee (x) is not an employee benefit plan or other plan or arrangement
subject to the prohibited transaction provisions of ERISA or Section 4975 of the
Internal Revenue Code of 1986, as amended, or comparable provisions of any
subsequent enactments (a "Plan"), a trustee of any Plan, or any other Person who
is using the "plan assets" of any Plan to effect such acquisition or (y) is an
insurance company, the source of funds to be used by it to

                                      G-2
<PAGE>

purchase the Purchased Certificates is an "insurance company general account"
(within the meaning of Department of Labor Prohibited Transaction Class
Exemption ("PTCE") 95-60), and is eligible for, and satisfies all the
requirements for, exemptive relief under Sections I and III of PTCE 95-60.

     (c) The Purchaser acknowledges that its Purchased Certificates bear a
legend setting forth the applicable restrictions on transfer.

     IN WITNESS WHEREOF, the undersigned has caused this Agreement to be validly
executed by its duly authorized representative as of the day and the year first
above written.

                                        [Purchaser]

                                        By:
                                           -------------------------------
                                           Its:

                                      G-3
<PAGE>

              Exhibit A to Form of Transferee Agreement (Exhibit G)

                             BENEFIT PLAN AFFIDAVIT
                             ----------------------

RE:  ABN AMRO MORTGAGE CORPORATION MORTGAGE PASS-THROUGH
     CERTIFICATES, SERIES 2001-4 (THE "TRUST") [CLASS B-3] [CLASS B-4]
     [CLASS B-5] CERTIFICATES (THE "PURCHASED CERTIFICATES")

     Under penalties of perjury, I,                      , declare that, to the
best of my knowledge and belief, the following representations are true,
correct and complete; and

     1. That I am the                 of               (the "Purchaser"), whose
taxpayer identification number is              , and on behalf of which I have
the authority to make this affidavit.

     2. That the Purchaser is acquiring a Purchased Certificate representing an
interest in Trust.

     3. That the Purchaser (i) is not an employee benefit plan or other plan or
arrangement subject to the prohibited transaction provisions of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") or Section 4975 of
the Internal Revenue Code of 1986, as amended (the "Code"), or comparable
provisions of any subsequent enactments (a "Plan"), a trustee of any Plan, or
any other Person who is using the "plan assets" of any Plan to effect such
acquisition, or (ii) has provided an Officer's Certificate signed by a
Responsible Officer of the Purchaser satisfactory to ABN AMRO Mortgage
Corporation (the "Depositor"), the Certificate Registrar, and the Trustee of the
Trust stating that the Purchaser is an insurance company using assets of an
"insurance company general account" (within the meaning of Department of Labor
Prohibited Transaction Class Exemption ("PTCE") 95-60) to effect such purchase
and is eligible for, and satisfies all of the requirements for exemptive relief
under Sections I and III of PTCE 95-60, which Officer's Certificate shall not be
an expense of the Depositor or the Trustee.

     IN WITNESS WHEREOF, the Purchaser has caused this instrument to be duly
executed on its behalf, by its duly authorized officer this      day of
              , 20  .

[Purchaser]

By:
   ---------------------------------------
Its:

                                      G-4
<PAGE>

     Personally appeared before me______ , known or proved to me to be the same
person who executed the foregoing instrument and to be a______ of the Purchaser,
and acknowledged to me that (s)he executed the same as his/her free act and deed
and as the free act and deed of the Purchaser.

         SUBSCRIBED and SWORN to before me this __day of ___________, 20___.

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

                                      G-5
<PAGE>

                                    EXHIBIT H

                                   [RESERVED]

                                      H-1

<PAGE>

                                    EXHIBIT I

                         FORM OF TRANSFEROR CERTIFICATE

                                     [Date]

State Street Bank and Trust Company, as Trustee
225 Franklin Street
Boston, MA 02110
Attn: Corporate Trust, ABN AMRO 2001-4

State Street Bank and Trust Company, as Certificate Registrar
225 Franklin Street
Boston, MA 02110
Attn: Corporate Trust, ABN AMRO 2001-4

     RE:  ABN AMRO MORTGAGE CORPORATION MORTGAGE PASS-THROUGH
          CERTIFICATES, SERIES 2001-4 CLASS R

     This letter is delivered to you in connection with the sale by ____________
(the "Seller") to _____________________ (the "Purchaser") of $________ initial
Certificate Principal Balance of Mortgage Pass-Through Certificates, Series
2001-4, Class R (the "Certificate"), pursuant to Section 5.1 of the Pooling and
Servicing Agreement (the "Pooling and Servicing Agreement"), dated as of July 1,
2001 among ABN AMRO Mortgage Corporation, as depositor (the "Company"),
Washington Mutual Mortgage Securities Corp., as servicer (the "Servicer"), and
State Street Bank and Trust Company, as trustee (the "Trustee"). All terms used
herein and not otherwise defined shall have the meanings set forth in the
Pooling and Servicing Agreement. The Seller hereby certifies, represents and
warrants to, and covenants with the Depositor, the Servicer, the Certificate
Registrar and the Trustee that:

     1. No purpose of the Seller relating to the sale of the Certificate by the
Seller to the Purchaser is or will be to enable the Seller to impede the
assessment or collection of tax.

     2. The Seller understands that the Purchaser has delivered to the Trustee,
the Servicer, the Certificate Registrar and the Depositor a transferee affidavit
and agreement in the form attached to the Pooling and Servicing Agreement as
Exhibit J. The Seller does not know or believe that any representation contained
therein is false.

     3. The Seller has no actual knowledge that the Proposed Transferee is not a
Permitted Transferee.

     4. The Seller has no actual knowledge that the Purchaser would be unwilling
or unable to pay taxes due on its share of the taxable income attributable to
the Certificates.

     5. At the time of this transfer (i) the Seller has conducted a reasonable
investigation of the financial condition of the Purchaser and, as a result of
the investigation, found that the Purchaser has historically paid its debts as
they came due, and found no significant evidence to indicate that the Purchaser
will not continue to pay its debts as they come due in the future, and

                                      I-1
<PAGE>

(ii) either (A) the Seller both (1) has determined all of the following (I) at
the time of the transfer, and at the close of each of the Purchaser's two fiscal
years preceding the year of transfer, the Purchaser's gross assets for financial
reporting purposes exceed $100 million and its net assets for such purposes
exceed $10 million (disregarding, for purposes of determining gross or net
assets, the obligation of any person related to the Purchaser within the meaning
of section 860L(g) of the Code or any other asset if a principal purpose for
holding or acquiring that asset is to permit the Purchaser to satisfy this
minimum gross asset or net asset requirement), (II) the Purchaser is a domestic
C corporation for United States federal income tax purposes that is not for such
purposes an exempt corporation, a regulated investment company, a real estate
investment trust, a REMIC, or a cooperative organization to which part I of
subchapter T of the Code applies, (III) there are no facts or circumstances on
or before the date of transfer (or anticipated) which would reasonably indicate
that the taxes associated with the Certificates will not be paid, (IV) the
Purchaser is not a foreign branch of a domestic corporation, and (V) the
transfer does not involve a transfer or assignment to a foreign branch of a
domestic corporation (or any other arrangement by which any Certificate is at
any time subject to net tax by a foreign country or U.S. possession) and the
Purchaser will not hereafter engage in any such transfer or assignment (or any
such arrangement), and (2) does not know or have reason to know that the
Purchaser will not honor the restrictions on subsequent transfers of any Class R
Certificate described in paragraph 12 and 13 of the Transferee's Transfer
Affidavit, or (B) the Seller has determined that the present value of the
anticipated tax liabilities associated with the holding of the Certificates do
not exceed the sum of (1) the present value of any consideration given to the
Purchaser to acquire the Certificates, (2) the present value of the expected
future distributions on the Certificates, and (3) the present value of the
anticipated tax savings associated with holding the Certificates as the REMIC
generates losses (having made such determination by (I) assuming that the
Purchaser pays tax at a rate equal to the highest rat of tax specified in
Section 11(b)(1) of the Code, and (II) utilizing a discount rate for present
valuation purposes equal to the applicable Federal rate prescribed by Section
1274(d) of the Code compounded semi-annually (or a lower discount rate based on
the Purchaser having demonstrated that it regularly borrows, in the course of
its trade or business, substantial funds at such lower rate from unrelated third
parties)).

     6. The Purchaser has represented to the Seller that, if the Certificates
constitute a noneconomic residual interest, it (i) understands that as holder of
a noneconomic residual interest it may incur tax liabilities in excess of any
cash flows generated by the interest, and (ii) intends to pay taxes associated
with its holding of the Certificates as they become due.

     7. The Seller understands that the transfer of the Certificates may not be
respected by for United States income tax purposes (and the Seller may continue
to be liable for United States income taxes associated therewith) unless there
is compliance with the standards of paragraph 5 above as to any transfer.

                                                Very truly yours,

                                                [Seller]

                                      I-2

<PAGE>

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

                                      I-3
<PAGE>

                                    EXHIBIT J

                   FORM OF TRANSFEREE AFFIDAVIT AND AGREEMENT

STATE OF ________        )
                         )   ss.
COUNTY OF _______        )

     [NAME OF OFFICER], being first duly sworn, deposes and says:

     1. That he is [Title of Officer] of [Name of Owner] (record or beneficial
owner of a Class R Certificate (the "Owner")), a [savings institution]
[corporation] duly organized and existing under the laws of [the State of
         ] [the United States], on behalf of which he makes this affidavit and
agreement.

     2. That the Owner (i) is not and will not be a "disqualified organization"
as of the [date of transfer] within the meaning of Section 860E(e)(5) of the
Internal Revenue Code of 1986, as amended (the "Code") and will endeavor to
remain other than a disqualified organization for so long as it retains its
ownership interest in the Class R Certificate, and (ii) is acquiring a Class R
Certificate for its own account or for the account of another Owner from which
it has received an affidavit and agreement in substantially the same form as
this affidavit and agreement. (For this purpose, a "disqualified organization"
means the United States, any state or political subdivision thereof, or any
agency or instrumentality of any of the foregoing (other than an instrumentality
all of the activities of which are subject to tax and, except for the Federal
Home Loan Mortgage Corporation, a majority of whose board of directors is not
selected by any such governmental entity, or any foreign government or
international organization, or any agency or instrumentality of such foreign
government or organization, any rural electric or telephone cooperative, or any
organization (other than certain farmers' cooperatives) that is generally exempt
from federal income tax unless such organization is subject to the tax on
unrelated business taxable income).

     3. That the Owner is aware (i) of the tax that would be imposed on
transfers of the Class R Certificate; (ii) that such tax would be on the
transferor, or, if such transfer is through an agent (which person includes a
broker, nominee or middleman) for a disqualified organization, on the agent;
(iii) that the person otherwise liable for the tax shall be relieved of
liability for the tax if the transferee furnished to such person an affidavit
that the transferee is not a disqualified organization and, at the time of
transfer, such person does not have actual knowledge that the affidavit is
false; and (iv) that a Class R Certificate may represent "noneconomic residual
interests" within the meaning of Treasury regulations promulgated pursuant to
the Code and that the transferor of a noneconomic residual interest will remain
liable for any taxes due with respect to the income on such residual interest,
if a significant purpose of the transfer was to enable the transferor to impede
the assessment or collection of tax.

     4. That the Owner is aware of the tax imposed on a "pass-through entity"
holding a Class R Certificate if at any time during the taxable year of the
pass-through entity a disqualified organization is the record holder of an
interest in such entity. (For this purpose, a "pass-through

                                      J-1
<PAGE>

entity" includes a regulated investment company, a real estate investment trust
or common trust fund, a partnership, trust or estate, and certain cooperatives.)

     5. That the Owner is aware that the Trustee and the Certificate Registrar
will not register the transfer of a Class R Certificate unless the transferee,
or other transferee's agent, delivers to each of them an affidavit and
agreement, among other things, in substantially the same form as this affidavit
and agreement. The Owner expressly agrees that it will not consummate any such
transfer if it knows or believes that any of the representations contained in
such affidavit and agreement are false.

     6. That the Owner has reviewed the restrictions set forth on the face of
each Class R Certificate and the provisions of Section 5.1 of the Pooling and
Servicing Agreement under which the Class R Certificates were issued. The Owner
expressly agrees to be bound by and to comply with such restrictions and
provisions.

     7. That the Owner consents to any additional restrictions or arrangements
that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement to ensure that such Class R Certificate will only be owned, directly
or indirectly, by an Owner that is not a disqualified organization.

     8. The Owner's Taxpayer Identification Number is____________ .

     9. That no purpose of the Owner relating to the purchase of such Class R
Certificate by the Owner is or will be to enable the transferor to impede the
assessment or collection of tax.

     10. That the Owner has no present knowledge or expectation that it will be
unable to pay any United States taxes owed by it so long as any of the
Certificates remain outstanding.

     11. That the Owner has no present knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Certificates remain outstanding.

     12. The Owner will, in connection with any transfer that it makes of the
Class R Certificate, deliver to the Certificate Registrar a representation
letter substantially in the form of Exhibit I to the Pooling and Servicing
Agreement. [The Owner hereby agrees that it will not make any transfer of any
Class R Certificate unless (i) the transfer is to an entity which is a domestic
C corporation (other than an exempt corporation, a regulated investment company,
a real estate investment trust, a REMIC, or a cooperative organization to which
part I of Subchapter T of the Code applies) for federal income tax purposes, and
(ii) the transfer is in compliance with the conditions set forth in paragraph 5
of Exhibit I of the Pooling and Servicing Agreement.](1)

-----------------
(1) Bracketed text to be included if the Owner is relying on the transferee's
compliance with the "Asset Test Safe Harbor" (which is generally described as
the second "safe harbor" in the Prospectus Supplement) rather then the "Formula
Test Safe Harbor" (which is generally described as the first "safe harbor" in
the Prospectus Supplement). See "Federal Income Tax

                                      J-2
<PAGE>

     13. The Owner (i) is a citizen or resident of the United States, a
corporation or partnership (including an entity treated as a corporation or
partnership for federal income tax purposes) created or organized in, or under
the laws of, the United States or any state thereof or the District of Columbia
(except, in the case of a partnership, to the extent provided in regulations) or
an estate whose income is subject to United States federal income tax regardless
of its source, 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 the authority to control all substantial decisions
of the trust, and (ii) if the Owner is a partnership for U.S. federal income tax
purposes, each person or entity which holds an interest (directly or indirectly,
through a pass-through entity) is a person or entity described in (i). To the
extent prescribed in regulations by the Secretary of the Treasury, which have
not yet been issued, a trust which was in existence on August 20, 1996 (other
than a trust treated as owned by the grantor under subpart E of part 1 of
subchapter J of chapter 1 of the Code), and which was treated as a U.S. Person
on August 20, 1996 may elect to continue to be treated as a U.S. Person
notwithstanding the previous sentence.

     14. The Owner hereby agrees to cooperate with the Depositor and to take any
action required of it by the Code or Treasury regulations thereunder (whether
now or hereafter promulgated) in order to create or maintain the REMIC status of
the REMIC I or the REMIC II.

     15. The Owner hereby agrees that it will not take any action that could
endanger the REMIC status of the REMIC I or the REMIC II, as applicable, or
result in the imposition of tax on the REMIC I or the REMIC II unless counsel
for, or acceptable to, the Depositor has provided an opinion that such action
will not result in the loss of such REMIC status or the imposition of such tax,
as applicable.

     16. The Owner as transferee of such Class R Certificate has represented to
their transferor that, if a Class R Certificate represents noneconomic residual
interests, the Owner (i) understands that as holder of a noneconomic residual
interest it may incur tax liabilities in excess of any cash flows generated by
the interest, and (ii) intends to pay taxes associated with its holding of a
Class R Certificate as they become due.

     [17. The Owner hereby represents to and for the benefit of the transferor
that (i) at the time of the transfer, and at the close of each of the Owners's
two fiscal years preceding the year of transfer, the Owners's gross assets for
financial reporting purposes exceed $100 million and its net assets for such
purposes exceed $10 million (disregarding, for purposes of determining gross or
net assets, the obligation of any person related to the Owner within the meaning
of section 860L(g) of the Code or any other asset if a principal purpose for
holding or acquiring that asset is to permit the Owner to satisfy this minimum
gross asset or net asset requirement), (ii) the Owner is a domestic C
corporation for United States federal income tax purposes that is not for such
purposes an exempt corporation, a regulated investment company, a real estate
investment trust, a REMIC, or a cooperative organization to which part I of
subchapter T of the Code applies, (iii) there are no facts or circumstances on
or before the date of transfer (or anticipated)

--------------------------------------------------------------------------------
Consequences - Special Tax Considerations Applicable to the Residual
Certificate" in the Prospectus Supplement.

                                      J-3
<PAGE>

which would reasonably indicate that the taxes associated with the Class R
Certificate will not be paid, and (iv) the Owner is not a foreign branch of a
domestic corporation, the transfer does not involve a transfer or assignment to
a foreign branch of a domestic corporation (or any other arrangement by which
any Class R Certificate is at any time subject to net tax by a foreign country
or U.S. possession), and the Owner will not hereafter engage in any such
transfer or assignment (or any such arrangement).](2)

     IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on
its behalf, pursuant to the authority of its Board of Directors, by its [Title
of Officer] and its corporate seal to be hereunto attached, attested by its
[Assistant] Secretary, this________ day of________ , 20_______ .

                                                [Name of Owner]

                                                By:
                                                   -----------------------------
                                                         [Name of Officer]
                                                         [Title of Officer]

[Corporate Seal]

ATTEST:

[Assistant] Secretary

-------------------
(2) See Footnote (1) above.

                                      J-4
<PAGE>

     Personally appeared before me the above-named [Name of Officer], known or
proved to me to be the same person who executed the foregoing instrument and to
be the [Title of Officer] of the Owner, and Acknowledged to me that he executed
the same as his free act and deed and free act and deed of the Owner.

         Subscribed and sworn before me this _____ day of ________, 20___.

                                        NOTARY PUBLIC
                                        COUNTY OF
                                        STATE OF
                                        My Commission expires the ____ day
                                        of______________, 20___

                                      J-5
<PAGE>

                                    EXHIBIT K
                                    ---------

                     FORM OF ADDITIONAL MATTER INCORPORATED
                        INTO THE FORM OF THE CERTIFICATES

     This Certificate does not represent an obligation of or interest in ABN
AMRO Mortgage Corporation or any of its affiliates. Neither this Certificate nor
the underlying Loans are guaranteed by any agency or instrumentality of the
United States.

     This certifies that the above-mentioned Registered Owner is the registered
owner of certain interests in a trust fund (the "Certificate Trust Fund") whose
assets consist of, among other things, of a pool (the "Mortgage Pool") of
conventional one- to four-family mortgage loans (the "Loans"), formed by ABN
AMRO Mortgage Corporation (the "Depositor"). The Loans were originated or
acquired by various financial institutions and subsequently acquired by the
Depositor. The Mortgage Pool was created pursuant to a Pooling and Servicing
Agreement, dated as of the Cut-Off Date stated above (the "Pooling Agreement"),
between the Depositor, Washington Mutual Mortgage Securities Corp., as Servicer
(the "Servicer"), and State Street Bank and Trust Company, as Trustee (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Pooling Agreement. Nothing herein shall
be deemed inconsistent with such meanings, and in the event of any conflict
between the Pooling Agreement and the terms of this Certificate, the Pooling
Agreement shall control. This Certificate is issued under and is subject to the
terms, provisions and conditions of the Pooling Agreement, to which Pooling
Agreement the Holder of this Certificate, by virtue of the acceptance hereof,
assents and by which such Holder is bound.

     Distributions will be made, pursuant to the Pooling Agreement, on the 25th
day of each month or, if such 25th day is not a Business Day, the Business Day
immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered at the close of business on the last Business Day of the month
immediately preceding the month of such distribution (the "Record Date"), to the
extent of such Certificateholder's Percentage Interest represented by this
Certificate in the portion of the Certificate Distribution Amount for such
Distribution Date then distributable on the Certificates of this Class, as
specified in Section 4.1 of the Pooling Agreement.

     Distributions on this Certificate will be made by the Trustee or its Paying
Agent by wire transfer or by other means of payment acceptable to each
Certificateholder of record on the immediately preceding Record Date.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee or its Paying Agent of the pendency of such
distribution and only upon presentation and surrender of this Certificate to the
Certificate Registrar.

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

                                      K-1
<PAGE>

     Unless the certificate of authentication hereon has been executed by or on
behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Pooling Agreement or be valid for any purpose.

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

                                     State Street Bank AND TRUST COMPANY,
                                     as Trustee

                                     By:
                                        -----------------------------------

                                       K-2

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                       State Street Bank AND TRUST COMPANY,
                                       as Trustee

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

                                      K-3
<PAGE>

                          ABN AMRO MORTGAGE CORPORATION

                        MORTGAGE PASS-THROUGH CERTIFICATE

     This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series and Class
specified hereon (herein called the "Certificates") and representing certain
interests in the Certificate Trust Fund.

     The Certificates do not represent an obligation of, or an interest in, the
Depositor or any of its affiliates and are not insured or guaranteed by any
governmental agency. The Certificates are limited in right of payment to certain
collections and recoveries respecting the Loans, all as more specifically set
forth herein and in the Pooling Agreement. To the extent described in the
Pooling Agreement, the Servicer is obligated to advance its own funds to cover
certain shortfalls with respect to payments on the Loans. In the event Servicer
funds are advanced with respect to any Loan, such advance is reimbursable to the
Servicer from the related recoveries on such Loan or from other cash deposited
in the Custodial Account for P&I to the extent that such advance is not
otherwise recoverable.

     As provided in the Pooling Agreement, withdrawals from the Custodial
Account for P&I may be made by the Servicer from time to time for purposes other
than distributions to Certificateholders, such purposes including reimbursement
to the Servicer of advances made, or certain expenses incurred, by it.

     The Pooling Agreement permits, with certain exceptions therein provided,
the amendment thereof and the modification of the rights and obligations of the
Depositor and the Servicer, and the rights of the Certificateholders under the
Pooling Agreement at any time by the Depositor and the Trustee, with the consent
of the Holders of the Certificates aggregating not less than 66-2/3% of the
aggregate Percentage Interest evidenced by all of the Certificates of the Trust
Fund. For the purposes of such provision and except as provided below, voting
rights related to 100% of the Aggregate Certificate Principal Balance of any
Class will be allocated pro rata (by Certificate Principal Balance) among the
Certificates of such Class. Any such consent by the Holder of this Certificate
shall be conclusive and binding on such Holder and upon all future Holders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Pooling Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of
any of the Certificates.

     As provided in the Pooling Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices of the Certificate Registrar or the office maintained by
the Trustee in the City and State of New York, duly endorsed by, or accompanied
by an assignment in the form below or other written instrument of transfer in
form satisfactory to the Trustee or any Authenticating Agent duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of Authorized Denominations evidencing
the same Percentage Interest set forth hereinabove will be issued to the
designated transferee or transferees.

                                      K-4
<PAGE>

     No transfer of a Certificate will be made unless such transfer is exempt
from or is made in accordance with the registration requirements of the
Securities Act of 1933, as amended (the "Securities Act") and any applicable
state securities laws. No transfer, sale, pledge or other disposition of a
Junior Subordinate Certificate shall be made unless such transfer, sale, pledge
or other disposition is made in accordance with Section 5.1(e) or Section 5.1(f)
of the Pooling Agreement. Each Person who, at any time, acquires any ownership
interest in any Junior Subordinate Certificate shall be deemed by the acceptance
or acquisition of such ownership interest to have agreed to be bound by the
provisions of such Section 5.1(e) and Section 5.1(f), as applicable. No transfer
of a Junior Subordinate Certificate shall be deemed to be made in accordance
with such Section 5.1(e) unless such transfer is made pursuant to an effective
registration statement under the Securities Act or unless the Trustee and the
Certificate Registrar are provided with the certificates and an Opinion of
Counsel, if required, on which the Trustee and the Certificate Registrar may
conclusively rely, which establishes or establish to the Trustee's and the
Certificate Registrar's satisfaction that such transfer is exempt from the
registration requirements under the Securities Act, as follows: In the event
that a transfer is to be made in reliance upon an exemption from the Securities
Act, the Trustee and the Certificate Registrar shall require, in order to assure
compliance with the Securities Act, that the Certificateholder desiring to
effect such transfer certify to the Trustee and the Certificate Registrar in
writing, in substantially the form attached as Exhibit F to the Pooling
Agreement, the facts surrounding the transfer, with such modifications to such
Exhibit F as may be appropriate to reflect the actual facts of the proposed
transfer, and that the Certificateholder's proposed transferee certify to the
Trustee and the Certificate Registrar in writing, in substantially the form
attached as Exhibit G to the Pooling Agreement, the facts surrounding the
transfer, with such modifications to such Exhibit G as may be appropriate to
reflect the actual facts of the proposed transfer. If such certificate of the
proposed transferee does not contain substantially the substance of Exhibit G,
the Trustee and the Certificate Registrar shall require an Opinion of Counsel
satisfactory to it that such transfer may be made without registration, which
Opinion of Counsel shall not be obtained at the expense of the Trustee, the
Certificate Registrar, the Trust Fund or the Depositor.

     Transfers of the Junior Subordinate Certificates may also be made in
accordance with Section 5.1(f) of the Pooling Agreement. To effectuate a
Certificate transfer in accordance with such Section 5.1(f), the proposed
transferee of such Certificate must provide the Trustee, the Certificate
Registrar and the Depositor with an investment letter substantially in the form
of Exhibit L attached to the Pooling Agreement, which investment letter shall
not be an expense of the Trustee, the Certificate Registrar or the Depositor,
and which investment letter states that, among other things, such transferee (i)
is a "qualified institutional buyer" as defined under Rule 144A, acting for its
own account or the accounts of other "qualified institutional buyers" as defined
under Rule 144A, and (ii) is aware that the proposed transferor intends to rely
on the exemption from registration requirements under the Securities Act
provided by Rule 144A. Notwithstanding the foregoing, the proposed transferee of
such Certificate shall not be required to provide the Trustee, the Certificate
Registrar or the Depositor with Annex 1 or Annex 2 to the form of such Exhibit L
if the Depositor so consents prior to each such transfer. Such transfers shall
be deemed to have complied with the requirements of Section 5.1(f) of the
Pooling Agreement. The Holder of a Certificate desiring to effect such transfer
does hereby agree to indemnify the Trustee, and the Certificate Registrar, the
Depositor, and the Certificate Registrar

                                      K-5
<PAGE>

against any liability that may result if transfer is not made in accordance with
the Pooling Agreement.

     The Certificates are issuable only as registered Certificates without
coupons in Authorized Denominations specified in the Pooling Agreement. As
provided in the Pooling Agreement and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates of Authorized
Denominations evidencing the same aggregate interest in the portion of the
Available Distribution Amount distributable on this Class of Certificate, as
requested by the Holder surrendering the same.

     A reasonable service charge may be made for any such registration of
transfer or exchange, and the Trustee or the Certificate Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     The Depositor, the Certificate Registrar, the Servicer, the Trustee and any
agent of any of them may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Certificate Registrar, the Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.

     The respective obligations and responsibilities of the Servicer and the
Trustee created under the Pooling Agreement (other than the obligation to make
payments to Certificateholders as set forth therein) shall terminate upon the
earlier of (i) the later of the final payment or other liquidation (or any
Advance with respect thereto) of the last Loan remaining in the Trust Fund and
the disposition of all property acquired in respect of any Loan or (ii) the
purchase by the Class R Certificateholders of all Loans at a price established
pursuant to the Pooling Agreement; provided, however, that in no event shall the
trust created hereby continue beyond 21 years from the death of the survivor of
certain persons identified in the Pooling Agreement.

                                      K-6
<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED the undersigned hereby sell(s) and assign(s) and
 transfer(s) unto _____________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name and address, including postal zip code of
assignee. Please insert social security or other identifying number of
assignee.)

the within Mortgage Pass-Through Certificate and hereby irrevocably constitutes
and appoints ___________________________Attorney to transfer said Certificate on
the Certificate Register, with full power of substitution in the premises.

Dated:
      ------------------------------      --------------------------------------
                                                    Signature Guaranteed

                                          --------------------------------------
                                          NOTICE:

                           The signature to this assignment must correspond with
                           the name as written upon the face of the within
                           instrument in every particular, without alteration or
                           enlargement or any change whatever.

                                      K-7
<PAGE>

                                    EXHIBIT L
                                    ---------

                   FORM OF RULE 144A INVESTMENT REPRESENTATION

             Description of Rule 144A Securities, including numbers:

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

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

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

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

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

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

     2. The Buyer warrants and represents to, and covenants with, the Seller,
the Trustee, the Certificate Registrar and the Servicer (as defined in the
Pooling and Servicing Agreement (the "Agreement") dated as of July 1, 2001
between ABN AMRO Mortgage Corporation, as Depositor, Washington Mutual Mortgage
Securities Corp., as Servicer, and State Street Bank and Trust Company, as
Trustee pursuant to Section 5.1(f) of the Agreement, as follows:

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

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

         (c) The Buyer has received and reviewed the Private Placement
Memorandum dated as of July 27, 2001 relating to the Rule 144A Securities and
has been furnished with all information regarding the Rule 144A Securities that
it has requested from the Seller, the Trustee, the Depositor or the Servicer.

                                      L-1
<PAGE>

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

         (e) The Buyer is a "qualified institutional buyer" as that term is
defined in Rule 144A under the 1933 Act and has (1) completed either of the
forms of certification to that effect attached hereto as Annex 1 or Annex 2, or
(2) obtained the waiver of the Depositor with respect to Annex 1 and Annex 2
pursuant to Section 5.1(f) of the Agreement. The Buyer is aware that the sale to
it is being made in reliance on Rule 144A. The Buyer is acquiring the Rule 144A
Securities for its own account or the accounts of other qualified institutional
buyers, understands that such Rule 144A Securities may be resold, pledged or
transferred only (i) to a person reasonably believed to be a qualified
institutional buyer that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the resale, pledge or
transfer is being made in reliance on Rule 144A, or (ii) pursuant to another
exemption from registration under the 1933 Act.

         (f) The Buyer is not affiliated with (i) the Trustee or (ii) any Rating
Agency that rated the Rule 144A Securities.

         (g) If applicable, the Buyer has complied, and will continue to comply,
with the guidelines established by Thrift Bulletin 12 issued December 13, 1988,
by the Office of Regulatory Activities of the Federal Home Loan Bank System.

     [Required only in the case of a transfer of a Class B-3, Class B-4, or
Class B-5 Certificate][3. The Buyer warrants and represents to, and covenants
with, the Seller, the Servicer, the Certificate Registrar and the Depositor that
(1) the Buyer is not an employee benefit plan (within the meaning of Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")), subject to the prohibited transaction provisions of ERISA ("Plan"),
or a plan (within the meaning of Section 4975(e)(1) of the Internal Revenue Code
of 1986 ("Code")) subject to Section 4975 of the Code (also a "Plan"), and the
Buyer is not directly or indirectly purchasing the Rule 144A Securities on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with "plan assets" of any Plan, or (2) the Buyer has provided the Seller, the
Servicer, the Certificate Registrar and the Depositor with an Officer's
Certificate signed by a Responsible Officer of the Buyer stating that the Buyer
is an insurance company using assets of an "insurance company general account"
(within the meaning of Department of Labor Prohibited Transaction Class
Exemption ("PTCE") 95-60) to effect such purchase and is eligible for, and
satisfies all of the requirements for exemptive relief under Sections I and III
of PTCE 95-60, which Officer's Certificate shall not be an expense of the
Servicer or the Depositor.]

                                      L-2
<PAGE>

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

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

---------------------------------           -----------------------------------
      Print Name of Seller                       Print Name of Seller
By:                                         By:
   ------------------------------              --------------------------------
     Name:                                       Name:
     Title:                                      Title:

Taxpayer Identification                     Taxpayer Identification
No.:                                        No.:
    -----------------------------               -------------------------------
Date:                                       Date:
     ----------------------------                ------------------------------

                                      L-3
<PAGE>
                                                            Annex 1 to Exhibit L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

             [For Buyers Other Than Registered Investment Companies]

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

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

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

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

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

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

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

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

                                     L-1-1
<PAGE>

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

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

     ____    ERISA Plan. The Buyer is an employee benefit plan within the
             meaning of Section 3(3) of the Employee Retirement Income Security
             Act of 1974, as amended ("ERISA") and is subject to the fiduciary
             responsibility provisions of ERISA.

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

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

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

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

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

     4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another

                                     L-1-2
<PAGE>

enterprise and the Buyer is not itself a reporting company under the Securities
Exchange Act of 1934.

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

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

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

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

                                            ------------------------------------
                                                     Print Name of Buyer
                                            By:
                                               ---------------------------------
                                                 Name:
                                                 Title:

                                            Date:
                                                 -------------------------------

                                     L-1-3
<PAGE>

                                                            Annex 2 to Exhibit L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

              [For Buyers That Are Registered Investment Companies]

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

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

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

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

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

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

     4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) bank deposit notes and certificates of deposit, (iii)
loan participations, (iv) repurchase agreements, (v) securities owned but
subject to a repurchase agreement and (vi) currency, interest rate and commodity
swaps.

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

                                     L-2-1
<PAGE>

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

                                          --------------------------------------
                                                Print Name of Buyer

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

                                          Date:
                                               ---------------------------------

                                          --------------------------------------
                                                Print Name of Buyer

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

                                          Date:
                                               ---------------------------------

(SEAL)

                                     L-2-2
<PAGE>

                                    EXHIBIT M
                                    ---------

                                   [RESERVED]

                                      M-1
<PAGE>

                                    EXHIBIT N
                                    ---------

                                   [RESERVED]

                                      N-1
<PAGE>

                                    EXHIBIT O
                                    ---------

                           PLANNED PRINCIPAL BALANCES

                        PLANNED PRINCIPAL BALANCE TABLE*

<TABLE>
<CAPTION>

Distribution Date                                          Class A-1             Class A-5
-----------------                                          ---------             ---------
<S>                                                     <C>                   <C>
Initial Balance..................................       $41,621,000.00        $10,672,000.00
August 25, 2001..................................        41,621,000.00         10,537,103.33
September 25, 2001...............................        41,621,000.00         10,377,507.45
October 25, 2001.................................        41,621,000.00         10,193,248.81
November 25, 2001................................        41,621,000.00          9,984,382.71
December 25, 2001................................        41,621,000.00          9,750,983.35
January 25, 2002.................................        41,621,000.00          9,493,143.83
February 25, 2002................................        41,621,000.00          9,210,976.12
March 25, 2002...................................        41,621,000.00          8,904,611.05
April 25, 2002...................................        41,621,000.00          8,574,198.17
May 25, 2002.....................................        41,621,000.00          8,219,905.73
June 25, 2002....................................        41,621,000.00          7,841,920.53
July 25, 2002....................................        41,270,990.82          7,790,456.96
August 25, 2002..................................        40,901,410.05          7,735,300.87
September 25, 2002...............................        40,512,433.40          7,676,518.06
October 25, 2002.................................        40,104,249.09          7,614,179.65
November 25, 2002................................        39,677,057.69          7,548,362.02
December 25, 2002................................        39,231,072.02          7,479,146.66
January 25, 2003.................................        38,766,516.88          7,406,620.08
February 25, 2003................................        38,283,628.98          7,330,873.71
March 25, 2003...................................        37,782,656.63          7,252,003.74
April 25, 2003...................................        37,263,859.61          7,170,110.98
May 25, 2003.....................................        36,727,508.91          7,085,300.74
June 25, 2003....................................        36,173,886.50          6,997,682.66
July 25, 2003....................................        35,603,285.05          6,907,370.52
August 25, 2003..................................        35,016,007.74          6,814,482.12
September 25, 2003...............................        34,412,367.92          6,719,139.03
October 25, 2003.................................        33,792,688.86          6,621,466.48
November 25, 2003................................        33,157,303.45          6,521,593.10
December 25, 2003................................        32,506,553.87          6,419,650.74
January 25, 2004.................................        31,859,899.23          6,319,476.25
February 25, 2004................................        31,217,312.15          6,221,049.92
March 25, 2004...................................        30,578,765.40          6,124,352.22
April 25, 2004...................................        29,944,231.92          6,029,363.81
May 25, 2004.....................................        29,313,684.85          5,936,065.54
June 25, 2004....................................        28,687,097.48          5,844,438.44
July 25, 2004....................................        28,064,443.26          5,754,463.75
August 25, 2004..................................        27,445,695.82          5,666,122.86
September 25, 2004...............................        26,830,828.96          5,579,397.35
October 25, 2004.................................        26,219,816.62          5,494,269.01
November 25, 2004................................        25,612,632.94          5,410,719.75
December 25, 2004................................        25,009,252.19          5,328,731.72
January 25, 2005.................................        24,409,648.82          5,248,287.19
February 25, 2005................................        23,813,797.43          5,169,368.64
March 25, 2005...................................        23,221,672.80          5,091,958.71
April 25, 2005...................................        22,633,249.84          5,016,040.20
May 25, 2005.....................................        22,048,503.63          4,941,596.08
June 25, 2005....................................        21,467,409.42          4,868,609.51
</TABLE>

----------------------
*    The principal balances for the PAC certificates on each distribution date
     were calculated assuming that (i) the Loans have the characteristics set
     forth in the Modeling Assumptions described under the heading "Prepayment
     and Yield Considerations--Prepayment Speed Assumption and Modeling
     Assumptions," and (ii) the Loans are prepaid at a constant rate within the
     range of 125% to 400% PSA with respect to the Class A-1 Certificates and
     within the range of 150% to 350% PSA with respect to the Class A-5
     Certificates.

                                      O-1
<PAGE>

<TABLE>
<CAPTION>

Distribution Date                                          Class A-1             Class A-5
-----------------                                          ---------             ---------
<S>                                                     <C>                   <C>
July 25, 2005....................................        20,889,942.59          4,797,063.80
August 25, 2005..................................        20,316,078.69          4,726,942.40
September 25, 2005...............................        19,745,793.42          4,658,228.97
October 25, 2005.................................        19,179,062.63          4,590,907.29
November 25, 2005................................        18,615,862.32          4,524,961.33
December 25, 2005................................        18,056,168.65          4,460,375.18
January 25, 2006.................................        17,499,957.93          4,397,133.13
February 25, 2006................................        16,947,206.59          4,335,219.60
March 25, 2006...................................        16,397,891.23          4,274,619.16
April 25, 2006...................................        15,851,988.61          4,215,316.56
May 25, 2006.....................................        15,309,475.61          4,157,296.66
June 25, 2006....................................        14,770,329.26          4,100,544.49
July 25, 2006....................................        14,234,526.74          4,045,045.25
August 25, 2006..................................        13,737,296.96          3,995,831.12
September 25, 2006...............................        13,243,328.39          3,947,806.99
October 25, 2006.................................        12,752,598.78          3,900,958.52
November 25, 2006................................        12,265,086.00          3,855,271.51
December 25, 2006................................        11,780,768.08          3,810,731.88
January 25, 2007.................................        11,299,623.18          3,767,325.72
February 25, 2007................................        10,821,629.58          3,725,039.23
March 25, 2007...................................        10,346,765.72          3,683,858.78
April 25, 2007...................................         9,875,010.17          3,643,770.84
May 25, 2007.....................................         9,406,341.61          3,604,762.05
June 25, 2007....................................         8,940,738.89          3,566,819.14
July 25, 2007....................................         8,478,180.95          3,529,929.02
August 25, 2007..................................         8,026,397.99          3,495,652.16
September 25, 2007...............................         7,577,562.79          3,462,382.19
October 25, 2007.................................         7,131,654.78          3,430,106.51
November 25, 2007................................         6,691,384.51          3,396,081.66
December 25, 2007................................         6,262,458.98          3,354,567.94
January 25, 2008.................................         5,844,595.98          3,311,734.06
February 25, 2008................................         5,437,519.89          3,268,145.77
March 25, 2008...................................         5,040,961.59          3,223,858.54
April 25, 2008...................................         4,654,658.27          3,178,925.80
May 25, 2008.....................................         4,278,353.32          3,133,399.04
June 25, 2008....................................         3,911,796.14          3,087,327.80
July 25, 2008....................................         3,554,742.05          3,040,759.80
August 25, 2008..................................         3,251,995.07          2,988,498.86
September 25, 2008...............................         2,957,133.36          2,936,090.10
October 25, 2008.................................         2,669,949.77          2,883,569.05
November 25, 2008................................         2,390,242.22          2,830,969.76
December 25, 2008................................         2,117,813.52          2,778,324.81
January 25, 2009.................................         1,852,471.31          2,725,665.41
February 25, 2009................................         1,594,027.90          2,673,021.40
March 25, 2009...................................         1,342,300.19          2,620,421.30
April 25, 2009...................................         1,097,109.57          2,567,892.37
May 25, 2009.....................................           858,281.75          2,515,460.65
June 25, 2009....................................           625,646.74          2,463,150.97
July 25, 2009....................................           399,038.69          2,410,987.05
August 25, 2009..................................           215,851.86          2,355,393.83
September 25, 2009...............................            37,068.04          2,300,265.34
October 25, 2009.................................                 0.00          2,108,177.66
November 25, 2009................................                 0.00          1,883,669.75
December 25, 2009................................                 0.00          1,663,703.20
January 25, 2010.................................                 0.00          1,448,173.76
February 25, 2010................................                 0.00          1,236,979.43
March 25, 2010...................................                 0.00          1,030,020.34
April 25, 2010...................................                 0.00            827,198.76
May 25, 2010.....................................                 0.00            628,419.00
June 25, 2010....................................                 0.00            433,587.43
July 25, 2010....................................                 0.00            242,612.38
August 25, 2010..................................                 0.00             82,991.18
September 25, 2010 and thereafter................                 0.00                  0.00
</TABLE>

                                      O-2
<PAGE>

                                    EXHIBIT P
                                    ---------

                                   [RESERVED]

                                      P-1

<PAGE>

                                    EXHIBIT Q
                                    ---------

                                 BLOOMBERG DATA

Loan Number
Property Type
Owner Occupied
Loan Purpose
Loan Type
Current Interest Rate
Original Balance
Current Balance
First Payment Date
Maturity Date
Current PNI
Servicing Fee
Loan Term
Foreclosure/REO
Loan to Value Ratio
State Code
Interest Paid to Date
Zip Code
PIF Data
Amortized Remaining Term

                                      Q-1
<PAGE>

                                    EXHIBIT R
                                    ---------

                       FORM OF SPECIAL SERVICING AGREEMENT
                       -----------------------------------

     This SPECIAL SERVICING AGREEMENT (the "Agreement") is made and entered into
as of ____________ 1, 20__, between _______________, as seller and master
servicer (the "Company"), _______________, as holder of the Class B Certificates
identified on Schedule I (the "Class B Holder") and _______________, [an
affiliate of the Class B Holder,] as special servicer (the "Special Servicer").

                              PRELIMINARY STATEMENT
                              ---------------------

     WHEREAS, the Class B Holder is the holder of at least 75% of each the
classes of Mortgage Pass-Through Certificates (each a "Class B Certificate") of
the series of issuances (each a "Series") issued by the Company identified on
Schedule I attached hereto (such Schedule I, as may be modified or amended to
reflect (i) the purchase from time to time by the Class B Holder of interests in
any class of Class B Certificates of a Series such that the Class B Holder owns
not less than 75% of the then outstanding Certificate Principal Balance of such
Class B Certificates and (ii) the sale from time to time of the Class B Holder
of interests in any class of Class B Certificates of a Series such that the
Class B Holder owns less than 75% of the then outstanding Certificate Principal
Balance of such Class B Certificates, the "Schedule I").

     WHEREAS, each of the Class B Certificates was issued by the Company
pursuant to the Pooling and Servicing Agreement or Agreements (each a "Pooling
and Servicing Agreement") identified on Schedule I and evidences an ownership
interest in a pool of Mortgage Loans.

     WHEREAS, the Company is the Master Servicer of the Mortgage Loans related
to each Series and the Mortgage Loans are serviced in accordance with the
applicable Pooling and Servicing Agreement [and the Company's [Servicer Guide]
(the "Servicer Guide")].

     WHEREAS, in connection with the purchase by Class B Holder of a Series of
Class B Certificates (whether owned by the Class B Holder on the date hereof or
purchased by the Class B Holder at any time in the future), the Class B Holder
and the Company have agreed that (i) the Class B Holder, if it owns 75% of the
most subordinate outstanding class of Class B Certificates of a Series
(calculated by dividing the then outstanding Certificate Principal Balance of
such Class B Certificates by the then outstanding Certificate Principal Balance
of all certificates of the same class) may elect to have certain Mortgage Loans
with respect to the related Series that become 90 or more days delinquent (each
such Mortgage Loan, a "Delinquent Mortgage Loan") serviced by the Special
Servicer (each such Delinquent Mortgage Loan, a "Specially Serviced Mortgage
Loan"), and (ii) with respect to Delinquent Mortgage Loans other than Specially
Serviced Mortgage Loans, the Company will provide to the Class B Holder such
information as is generated [pursuant to the terms of the Servicer Guide] by the
Company or a subservicer with respect to such Delinquent Loan.

     NOW THEREFORE, in consideration of the premises and mutual agreements
hereinafter set forth, the Company, the Class B Holder and the Special Servicer
hereby agree as follows:

                                    ARTICLE I
                                    ---------

                                   DEFINITIONS
                                   -----------

     Section 1.01 Definitions Incorporated by Reference. Capitalized terms used
but not otherwise defined in this Agreement shall have the respective meaning
ascribed thereto as set forth in the related Pooling and Servicing Agreement [or
the Servicer Guide, as the context may require].

                                   ARTICLE II
                                   ----------

          DESIGNATION OF SPECIALLY SERVICED MORTGAGE LOANS AND SPECIAL
          ------------------------------------------------------------
                              SERVICING PROCEDURES
                              --------------------

     Section 2.01 [Approval of ________________ as an Approved Servicer under
the Servicer Guide.

     The Company hereby approves ________________ as an approved servicer for
all purposes under the terms of the Servicer Guide.]

                                      R-1
<PAGE>

     Section 2.02 Specially Serviced Mortgage Loans. To the extent and for so
long as the Class B Certificates of a Series are outstanding and the Class B
Holder owns at least 75% of the most subordinate outstanding class of the Class
B Certificates of such Series (calculated by dividing the then outstanding
Certificate Principal Balance of such Class B Certificates by the then
outstanding Certificate Principal Balance of all certificates of the same
class), Delinquent Mortgage Loans of the related Series may, at the option of
the Class B Holder, be designated in writing by the Class B Holder as Specially
Serviced Mortgage Loans and transferred to the Special Servicer for servicing.
The Special Servicer shall service the Specially Serviced Mortgage Loans in
accordance with the terms of the related Pooling and Servicing Agreement [and
the Servicer Guide].

     Following the designation of a Delinquent Mortgage Loan as a Specially
Serviced Loan, the Company shall transfer servicing of such Delinquent Mortgage
Loan to the Special Servicer substantially in the manner set forth herein and in
Schedule II hereto. [The parties hereto agree that any fees resulting from the
transfer of the servicing of a Delinquent Mortgage Loan from the Company or a
subservicer to the Special Servicer (or any successor thereto) shall be the
obligation of the Company.]

     As of the Effective Date (as defined below) of each Specially Serviced
Mortgage Loan, the Special Servicer shall succeed to and undertake all rights,
duties and obligations of the prior servicer (including, without limitation, the
making of advances, any right to purchase such Specially Serviced Mortgage Loan
at the purchase price set forth in the related Pooling and Servicing Agreement
and the right to receive the servicing fee with respect to such Specially
Serviced Mortgage Loan) pursuant to and in accordance with the terms of the
related Pooling and Servicing Agreement [and the terms and conditions of the
Servicer Guide].

     With respect to each Specially Serviced Mortgage Loan, the effective date
(the "Effective Date") shall be the first day of the month immediately following
the month of designation of such Specially Serviced Mortgage Loan as such,
provided that such written designation is received by the Company on or prior to
the 15th calendar day of such month.

     Once a Delinquent Mortgage Loan becomes a Specially Serviced Mortgage Loan,
such Delinquent Mortgage Loan shall remain a Specially Serviced Mortgage Loan,
and shall continue to be serviced by the Special Servicer, until the earlier of
the liquidation or other disposition of such Specially Serviced Mortgage Loan or
the termination of this Agreement, regardless of delinquency status, whether the
related Mortgaged Property becomes an REO Property or otherwise; provided,
however, that if the Company exercises its right as Master Servicer to purchase
all of the Mortgage Loans in a Trust Fund pursuant to an optional termination
provision under the related Pooling and Servicing Agreement, the servicing of
any related Specially Serviced Mortgage Loans with respect to which foreclosure
proceedings have not been commenced shall be transferred promptly by the Special
Servicer in accordance with written instructions from the Company.

     If the Class B Holder (i) transfers such percentage interest in any Class B
Certificates of a Series such that the Class B Holder owns less than 75% of the
then outstanding Certificate Principal Balance of such class, or (ii) purchases
such percentage interest in any Class B Certificates of a Series such that the
Class B Holder owns 75% or more of the then outstanding Certificate Principal
Balance of such class, the Class B Holder shall promptly notify the Company and
the Special Servicer in writing of any such transfer or acquisition. Upon
receipt of written notice from the Class B Holder, the Company or the Class B
Holder shall revise Schedule I hereto to reflect any such transfer or
acquisition and shall forward promptly a copy of such revised schedule to the
Company or the Class B Holder, as applicable, and the Special Servicer. With
respect to the purchase of at least 75% of the Class B Certificates of any
Series by the Class B Holder after the date hereof, this Agreement shall be
effective as of the date such written notice of acquisition is received by the
Company.

     If and to the extent the Company is permitted to purchase Delinquent
Mortgage Loans under the related Pooling and Servicing Agreement, the Class B
Holder may direct the Company to purchase any Specially Serviced Mortgage Loan
and to promptly resell such Mortgage Loan to the Class B Holder at the price and
on the terms set forth in such Pooling and Servicing Agreement. In the event the
Class B Holder directs the Company to purchase a Specially Serviced Mortgage
Loan as permitted under this Section, the Company shall promptly take all action
necessary under the terms of the related Pooling and Servicing Agreement in
order to accomplish such purchase (i.e. provide notification to the Trustee
and/or Custodian) and to resell such Specially Serviced Mortgage Loan to the
Class B Holder. The Class B Holder, and not the Company, shall be required to
remit the purchase price for such Specially Serviced Mortgage Loan to the
related Trustee. The Company will inform the Trustee in writing of the purchase
of such Specially Serviced Mortgage Loan by the Class B Holder and further shall
promptly take all actions necessary or desirable to effect the conveyance of
such Mortgage Loan and the related servicing rights to the Class B Holder or its
designee, time being of the essence.

     Notwithstanding any provision herein to the contrary, the Special Servicer
shall (i) in no event be obligated to effect any cure or remedy in connection
with a deficiency in the documentation for any Specially Serviced Mortgage Loan
to the extent such deficiency existed at the time such Mortgage Loan became a
Specially Serviced Mortgage Loan or (ii) have any responsibility for any
obligations, duties, or liabilities of the Company with respect to the servicing
of a Specially Serviced Mortgage Loan that arose prior to the related Effective
Date for such Specially Serviced Mortgage Loan, other than those which would
customarily be assumed after the Effective Date.

                                      R-2
<PAGE>

     Section 2.03 Termination of Special Servicer for Default. The Company shall
have the right, immediately upon written notice, to terminate the Special
Servicer's right and obligation to subservice all of the Specially Serviced
Mortgage Loans hereunder in the event (each such event, an "Event of Default")
of:

     (i) any failure by the Special Servicer to remit to the Company for
distribution to the Certificateholders of a Series any payment (including
without limitation, any failure to make any required Advance) required to be
made under the terms of this Agreement or the related Pooling and Servicing
Agreement which continues unremedied for a period of one day after the date upon
which written notice of such failure, requiring the same to be remedied, shall
have been given to the Special Servicer by the Company; or

     (ii) any failure on the part of the Special Servicer duly to observe or
perform in any material respect any other of the covenants or agreements on the
part of the Special Sub-Servicer contained in this Agreement (including any
breach of the Special Servicer's representations and warranties contained in
Section 4.03 hereof, which materially and adversely affects the interests of the
Certificateholders of a Series) which continues unremedied for a period of 30
days after the date on which written notice of such failure, requiring the same
to be remedied, shall have been given to the Special Servicer by the Company; or

     (iii) a decree or order of a court or agency or supervisory authority
having jurisdiction in an involuntary case under any present or future federal
or state bankruptcy, insolvency or similar law or the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against the
Special Servicer and such decree or order shall have remained in force
undischarged or unstayed for a period of 60 consecutive days; or

     (iv) the Special Servicer shall consent to the appointment of a conservator
or receiver or liquidator in any insolvency, readjustment of debt, marshalling
of assets and liabilities or similar proceedings of or relating to the Special
Servicer or of or relating to all or substantially all of its property; or

     (v) the Special Servicer shall admit in writing its inability to pay its
debts generally as they become due, file a petition to take advantage of or
otherwise voluntarily commence a case or proceeding under any applicable
bankruptcy, insolvency, reorganization or other similar statute, make an
assignment for the benefit of its creditors, or voluntarily suspend payment of
its obligations.

     If an Event of Default shall occur, then, and in each and every such case,
upon receipt of written notice from the Company, the Special Servicer shall
immediately remit to the Company all amounts in the Collection Accounts and the
Escrow Accounts and all rights of the Special Servicer to service the Specially
Serviced Mortgage Loans shall terminate. Following the receipt of written notice
from the Company as provided above, all authority and power of the Special
Sub-Servicer to subservice all the Specially Serviced Mortgage Loans shall pass
to and be vested in the Company pursuant to and under this Section 2.03, and the
Special Servicer shall do all things necessary to effect a transfer of the
servicing rights back to the Company. In this regard, the Company is hereby
authorized and empowered to execute and deliver, on behalf of the Special
Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the affected Specially
Serviced Mortgage Loans and related documents, or otherwise. The Special
Servicer agrees to cooperate with the Company in implementing the termination of
the Special Servicer's responsibilities and rights hereunder, including, without
limitation, the transfer to the Company or its appointed agent for
administration by it of all amounts in the possession of the Special Servicer or
thereafter be received with respect to the Specially Serviced Mortgage Loans and
the transfer of the] servicing rights back to the Company.

     Section 2.04 Appointment of Successor Special Servicer. The Class B Holder
shall have the right, upon 90 days prior written notice to the Company and the
Special Servicer appoint a successor special servicer having the characteristics
set forth in clauses (i), (ii) and (iii) below, and which shall succeed to all
rights and assume all of the responsibilities, duties and liabilities of the
Special Servicer under this Agreement simultaneously with the termination of the
Special Servicer's responsibilities, duties and liabilities under this
Agreement. In the event that the Special Servicer's duties, responsibilities and
liabilities under this Agreement should be terminated pursuant to the foregoing,
the Special Servicer shall discharge such duties and responsibilities during the
period from the date it acquires knowledge of such termination until the
effective date thereof with the same degree of diligence and prudence which it
is obligated to exercise under this Agreement, and shall take no action
whatsoever that might impair or prejudice the rights or financial condition of
its successor. The removal of the Special Servicer shall not become effective
until a successor shall be appointed pursuant to this Section and shall in no
event relieve the Special Servicer of the representations and warranties made
pursuant to Section 4.03 and the remedies available to the Class B Holder and/or
the Company under Sections 4.04 and 5.01, it being understood and agreed that
the provisions of such Sections 4.04 and 5.01 shall be applicable to the Special
Servicer notwithstanding any such termination of it, or the termination of this
Agreement.

                                      R-3
<PAGE>

     Any successor special servicer shall (i) [be an institution having a net
worth of not less than $1,000,000][meet the eligibility requirements of an
approved servicer under the Company's Servicer Guide], (ii) the appointment of
such successor servicer will not result in the downgrading in any rating by any
applicable rating agency of any security issued in connection with the
applicable Pooling and Servicing Agreements, and (iii) have and keep in full
effect its existence, rights and franchises as a corporation (or such other
corporate form), and shall obtain its qualification to do business as a foreign
corporation (or such other corporate form) in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement or any of the Specially Serviced Mortgage Loans
and to perform its duties under this Agreement. Any successor appointed as
provided herein shall execute, acknowledge and deliver to the Class B Holder and
the Company an instrument accepting such appointment, wherein the successor
shall make the representations and warranties set forth in Section 4.03,
whereupon such successor shall become fully vested with all the rights, powers,
duties, responsibilities, obligations and liabilities of the Special Servicer,
with like effect as if originally named as a party to this Agreement.

     Within 30 days of the appointment of a successor special servicer by the
Class B Holder, the Special Servicer shall prepare, execute and deliver to the
successor entity any and all documents and other instruments, place in such
successor's possession all servicing files related to the Specially Serviced
Mortgage Loans, and do or cause to be done all other acts or things necessary or
appropriate to effect the purposes of such notice of termination [, including
but not limited to the transfer and endorsement of the related Mortgage Notes
and other documents, and the Class B Holder shall do or cause to be done the
preparation and recordation of Assignments of Mortgage and Deeds at the Class B
Holder's sole expense].

     The Special Servicer shall cooperate with the Class B Holder and such
successor in effecting the termination of the Special Servicer's
responsibilities and rights hereunder and the transfer of servicing
responsibilities to the successor special servicer, including without
limitation, the transfer to such successor of all amounts received by it with
respect to the Specially Serviced Mortgage Loans. Further, the Special Servicer
shall execute and deliver such instruments and do such other things as may
reasonably be required to more fully and definitively vest in the successor all
such rights, powers, duties, responsibilities, obligations and liabilities of
the Special Servicer.

                                   ARTICLE III
                                   -----------

             DELINQUENT MORTGAGE LOANS OTHER THAN SPECIALLY SERVICED
             -------------------------------------------------------
                                 MORTGAGE LOANS
                                 --------------

     Section 3.01 Reporting of Delinquent Mortgage Loans.

     (a) To the extent and for so long as the Class B Certificates of a Series
are outstanding and any interest in such Class B Certificates is held by the
Class B Holder, the Company, as Master Servicer of the Mortgage Loans related to
each Series, hereby agrees to provide to the Class B Holder the following
notices and reports:

     Within three (3) Business Days after each Distribution Date (or included in
or with the monthly statements to Certificateholders pursuant to the related
Pooling and Servicing Agreement), the Company shall provide to the Class B
Holder a report, in tape format, containing the following information:

(1)  With respect to each Series, the number and aggregate Principal Balance of
     the Mortgage Loans delinquent one, two and three months or more, together
     with the Principal Balance of each Mortgage Loan delinquent, one, two and
     three months or more;

(2)  With respect to each Series, the (i) number and aggregate Principal Balance
     of Mortgage Loans with respect to which foreclosure proceedings have been
     initiated, and (ii) the number and aggregate book value of Mortgaged
     Properties acquired through foreclosure, deed in lieu of foreclosure or
     other exercise of rights respecting the Trustee's security interest in the
     Mortgage Loans, and with respect to each Mortgage Loan, the (i) Principal
     Balance of each such Mortgage Loan with respect to which foreclosure
     proceedings have been initiated, and (ii) the book value of each Mortgaged
     Property acquired through foreclosure, deed in lieu of foreclosure or other
     exercise of rights respecting the Trustee's security interest in the
     related Mortgage Loan; and

(3)  With respect to each Series, the amount of Realized Losses allocable to the
     Certificates on the related Distribution Date and the cumulative amount of
     Realized Losses allocated to such Certificates since the Cut-off Date, and
     with respect to each Mortgage Loan, the amount of Realized Losses
     attributable to such Mortgage Loan on the related Distribution Date and the
     cumulative amount of Realized Losses attributable to such Mortgage Loan
     since the Cut-off Date.

In addition, the Company, as Master Servicer of the Mortgage Loans, shall send,
or shall cause the related servicer to send, to the Class B Holder all other
written reports, documentation, instruments, certificates and correspondences
provided by a servicer under the terms of the Servicer Guide with respect to any
Mortgage Loan that becomes sixty (60) days or more delinquent.

                                      R-4
<PAGE>

     (b) If requested by the Class B Holder, the Company shall make its
servicing personnel available to respond to reasonable inquiries, by phone or in
writing by facsimile, electronic, or overnight mail transmission, in connection
with any Mortgage Loan identified in any report or document provided pursuant to
clause (a) above; provided, that the Company shall only be required to provide
information that is reasonably accessible to its servicing personnel (or its
subservicers).

     (c) In addition to the information described above, the Company shall
provide to the Class B Holder such information as the Class B Holder may
reasonably request; provided, however, that the Mortgage Loans are Delinquent
Mortgage Loans or the Mortgaged Property has been foreclosed upon. The Class B
Holder will reimburse the Company for any reasonable out-of-pocket expenses
incurred by it in providing such information.

     Section 3.02 Servicing of Delinquent Mortgage Loans.

     (a) Prior to the Commencement of Foreclosure of any Mortgage Loan, the
Company shall provide, or cause the related servicer to provide, the Class B
Holder with a notice (sent by telecopier) of such proposed and imminent
foreclosure, stating the loan number and the aggregate amount due under the
Mortgage Note.

     For purposes of this Agreement, "Commencement of Foreclosure" shall mean
the first official action required under local law in order to commence
foreclosure proceedings or to schedule a trustee's sale under a deed of trust,
including (i) in the case of a mortgage, any filing or service of process
necessary to commence an action to foreclosure, or (ii) in the case of a deed of
trust, posting, the publishing, filing or delivery of a notice of sale, but not
including in either case (x) any notice of default, notice of intent to
foreclose or sell or any other action prerequisite to the actions specified in
(i) or (ii) above, (y) the acceptance of a deed-in-lieu of foreclosure (whether
in connection with a sale of the related property or otherwise) or (z)
initiation and completion of a short pay-off.

     (b) In connection with any Delinquent Mortgage Loan with respect to which a
notice under clause (a) above has been delivered to the Class B Holder, the
Class B Holder shall provide the Company with written direction as to the action
to be taken with respect to such Delinquent Mortgage Loan, including, without
limitation, to proceed with foreclosure, to accept a deed-in-lieu of
foreclosure, to consent to a pre-foreclosure sale of Mortgaged Property at a
loss, or, if permitted under the terms of the related Pooling and Servicing
Agreement, to purchase Delinquent Mortgage Loans. Such written direction must be
received by the Company within two (2) Business Days of transmission of the
notice provided by the Company under clause (a) above. Such two (2) Business Day
period shall be extended for no longer than an additional three (3) Business
Days after the receipt of additional information requested if the Class B Holder
requests additional information related to such Delinquent Mortgage Loan;
provided, however that the Class B Holder will have at least one Business Day to
provide written direction after receipt of any requested additional information.
Any such additional information shall be provided only to the extent it is
obtainable by the Company from existing reports, certificates or statements or
otherwise be reasonably accessible to its servicing personnel (or subservicing
personnel). The Company shall as promptly as practicable carry out, or cause the
relevant servicer to carry out, the instruction of the Class B Holder in the
manner prescribed in such written direction. The Class B Holder agrees that it
has no right to negotiate directly with the Mortgagor during such period.

     In the event the Class B Holder fails to provide any written direction as
provided above, the Company may take any such action as would be consistent with
customary servicing practices of prudent mortgage loan servicers and the
Company's normal policies and practice.

     (c) With respect to any Delinquent Mortgage Loan for which the Company has
not provided a notice as contemplated in clause (a) above, the Class B Holder
may, at any time, provide the Company with written direction as to the action to
be taken with respect to such Delinquent Mortgage Loan, including, without
limitation, to commence foreclosure proceedings, to accept a deed-in-lieu of
foreclosure, to consent to a sale of Mortgaged Property at a loss, or, if
permitted under the terms of the related Pooling and Servicing Agreement, to
purchase Delinquent Mortgage Loans. To the extent such action is not
inconsistent with the terms of the related Pooling and Servicing Agreement or
the Company's duties thereunder as master servicer, the Company shall as
promptly as practicable carry out, or cause the relevant servicer to carry out,
the instruction of the Class B Holder in the manner prescribed in such written
direction.

     (d) Any foreclosure of a Delinquent Mortgage Loan that has been initiated
in accordance with clauses (b) or (c) above may be discontinued if (i) the
Mortgage Loan has been brought current or if a refinancing or prepayment occurs
with respect to the Mortgage Loan (including by means of a short payoff approved
by the Class B Holder), (ii) the Company has agreed to the terms of a
forbearance agreement with the Mortgagor and such forbearance agreement has been
approved by the Class B Holder, or (iii) if and to the extent permitted under
the related Pooling and Servicing Agreement, Class B Holder directs the Company
to purchase such Delinquent Mortgage Loan at the price and on the terms set
forth in the related Pooling and Servicing Agreement.

                                      R-5
<PAGE>

     (e) In the event the Class B Holder directs the Company to purchase a
Delinquent Mortgage Loan as permitted under Sections 2.02 and 3.02 (b), (c) and
(d), the Class B Holder may direct the Company to purchase any Delinquent
Mortgage Loan and to promptly resell such Mortgage Loan to the Class B Holder at
the price and on the terms set forth in the applicable Pooling and Servicing
Agreement. In the event the Class B Holder directs the Company to purchase a
Delinquent Mortgage Loan as permitted under this Section, the Company shall
promptly take all action necessary under the terms of the related Pooling and
Servicing Agreement in order to accomplish such purchase (i.e. provide
notification to the Trustee and/or Custodian) and to resell such Delinquent
Mortgage Loan to the Class B Holder. The Class B Holder, and not the Company,
shall be required to remit the purchase price for such Delinquent Mortgage Loan
to the related Trustee. The Company will inform the Trustee in writing of the
purchase of such Delinquent Mortgage Loan by the Class B Holder and further
shall promptly take all actions necessary or desirable to effect the conveyance
of such Mortgage Loan and the related servicing rights to the Class B Holder or
its designee, time being of the essence. [The parties hereto agree that, in
connection with a purchase of a Delinquent Mortgage Loan as provided above, any
fees resulting from the transfer of the servicing of such purchased Delinquent
Mortgage Loan from the Company or a subservicer to a servicer designated by the
Class B Holder shall be the obligation of the Company.]

     Section 3.03 Review of the Company's Procedures. The Company and the Class
B Holder hereby agree that the Class B Holder shall have the right, at its own
expense and during normal business hours, to review any and all of the books,
records, or other information of the Company which may be relevant to the
Company's direct collection, loss mitigation foreclosure and REO management
procedures currently in place in order to confirm that the procedures used by
the Company and its subservicers are in accordance with the customary servicing
practices of prudent mortgage loan servicers. In order to discuss such books,
records or other information, the Company shall make personnel available who are
knowledgeable about such matters.

                                   ARTICLE IV
                                   ----------

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

     Section 4.01 Organizational and Other Related Warranties of the Class B
Holder. The Class B Holder hereby makes the following representations and
warranties to the Company and the Special Servicer:

     (i) Organization and Good Standing. The Class B Holder is an entity duly
organized, validly existing, and in good standing under the laws of its state of
incorporation or formation or the laws of the United States.

     (ii) No Violation. Neither the execution and delivery by the Class B Holder
of this Agreement, nor the consummation by the Class B Holder of the
transactions contemplated hereby, nor the performance of and compliance by the
Class B Holder with the provisions of this Agreement, will conflict with or
result in a breach or violation of, or constitute a default (or an event which,
with notice or the lapse of time, or both, would constitute a default) under,
the organizational documents (its articles of incorporation or charter or
by-laws) of the Class B Holder, or any of the provisions of any law, rule,
regulation, judgment, decree, demand, or order (of any federal, state, or local
governmental or regulatory authority or court) binding on the Class B Holder, or
any of its respective properties, or any of the provisions of any indenture,
mortgage, contract, instrument, or other document to which the Class B Holder is
a party or by which it is bound, or result in the creation or imposition of any
lien, charge, or encumbrance upon any of their respective properties pursuant to
the terms of any indenture, mortgage, contract, instrument, or other document.
The Class B Holder is not otherwise in violation of any law, rule, regulation,
judgment, decree, demand, or order (of any federal, state or local governmental
or regulatory authority or court), which violation, in the Class B Holder's,
good faith and reasonable judgment, is likely to affect materially and adversely
its ability to perform its obligations hereunder.

     (iii) Authorization and Enforceability. The execution and delivery by the
Class B Holder of this Agreement, the consummation of the transactions
contemplated hereby, and the performance and compliance by the Class B Holder
with the terms hereof are within the powers of the Class B Holder, and have been
duly authorized by all necessary action on the part of the Class B Holder. All
organizational resolutions and consents necessary for the Class B Holder to
enter into and consummate all transactions contemplated hereby have been
obtained. This Agreement has been duly executed and delivered by the Class B
Holder and constitutes the legal, valid and binding obligation of the Class B
Holder, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium, and other similar
laws affecting creditors' rights generally, and to general principles of equity,
regardless of whether such enforcement is considered in a proceeding in equity
or at law. The Class B Holder has not failed to obtain any consent, approval,
authorization, or order of, or failed to cause any registration or qualification
with, any court or regulatory authority or other governmental body having
jurisdiction over it, which consent, approval, authorization, order,
registration, or qualification is required for, and the absence of which would
materially adversely affect, the legal and valid execution, delivery, and
performance of this Agreement by the Class B Holder.

     (iv) No Litigation or Adverse Conditions. No litigation is pending or, to
the best of the Class B Holder's knowledge, threatened against it, which, if
determined adversely to the Class B Holder would prohibit the Class B Holder
from

                                      R-6
<PAGE>

entering into this Agreement or, in the good faith and reasonable judgment of
the Class B Holder, is likely to materially and adversely affect either the
ability of the Class B Holder to perform its obligations hereunder.

     Section 4.02 Organizational and Other Related Warranties of the Company.
The Company hereby makes the following representations and warranties to the
Class B Holder and the Special Servicer:

     (i) Organization and Good Standing. The Company is an entity duly
organized, validly existing, and in good standing under the laws of its state of
incorporation or formation or the laws of the United States, and is in
compliance with the laws of each state in which any property is located to the
extent necessary to ensure the enforceability of each Mortgage Loan and to
perform its obligations hereunder and the Pooling and Servicing Agreement.

     (ii) No Violation. Neither the execution and delivery by Company of this
Agreement, nor the consummation by it of the transactions contemplated hereby,
nor the performance of and compliance by the Company with the provisions hereof
or of the Pooling and Servicing Agreement, will conflict with or result in a
breach or violation of, or constitute a default (or an event which, with notice
or the lapse of time, or both, would constitute a default) under, the
organizational documents (its articles of incorporation or charter or by-laws)
of the Company, or any of the provisions of any law, rule, regulation, judgment,
decree, demand, or order (of any federal, state, or local governmental or
regulatory authority or court) binding on the Company, or any of its properties,
or any of the provisions of any indenture, mortgage, contract, instrument, or
other document (including, without limitation, any Pooling and Servicing
Agreement) to which the Company is a party or by which it is bound, or result in
the creation or imposition of any lien, charge, or encumbrance upon any of their
respective properties pursuant to the terms of any indenture, mortgage,
contract, instrument, or other document. The Company is not otherwise in
violation of any law, rule, regulation, judgment, decree, demand, or order (of
any federal, state or local governmental or regulatory authority or court),
which violation, in the Company's good faith and reasonable judgment, is likely
to affect materially and adversely either its ability to perform its obligations
hereunder or under the Pooling and Servicing Agreements, or the financial
condition of the Company.

     (iii) Authorization and Enforceability. The execution and delivery by the
Company of this Agreement, the consummation of the transactions contemplated
hereby, and the performance and compliance by the Company with the terms hereof
and of the Pooling and Servicing Agreements are within the powers of the
Company, and have been duly authorized by all necessary action on the part of
the Company. All organizational resolutions and consents necessary for the
Company to enter into and consummate all transactions contemplated hereby have
been obtained. This Agreement has been duly executed and delivered by the
Company and constitutes the legal, valid and binding obligation of the Company,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium, and other similar laws
affecting creditors' rights generally, and to general principles of equity,
regardless of whether such enforcement is considered in a proceeding in equity
or at law. The Company has not failed to obtain any consent, approval,
authorization, or order of, or failed to cause any registration or qualification
with, any court or regulatory authority or other governmental body having
jurisdiction over the Company, which consent, approval, authorization, order,
registration, or qualification is required for, and the absence of which would
materially adversely affect, the legal and valid execution, delivery, and
performance of this Agreement by the Company.

     (iv) Approvals and Permits. The Company possesses such certificates,
authorizations, licenses, and permits issued by the appropriate state, federal,
and foreign regulatory agencies or bodies necessary to conduct the business now
operated by it, and the Company has not received any notice of proceedings
relating to the revocation or modification of any such certificate,
authorization, or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling, or finding, would materially and adversely affect
the conduct of the business, operations, financial condition, or income of the
Company.

     (v) No Litigation or Adverse Conditions. No litigation is pending or, to
the best of the Company's knowledge, threatened against it, which, if determined
adversely to the Company would prohibit the Company from entering into this
Agreement or, in the good faith and reasonable judgment of the Company, is
likely to materially and adversely affect either its ability to perform its
obligations hereunder or under the Pooling and Servicing Agreements or the
financial condition of the Company. The Company has no knowledge of any recent
adverse financial condition or event with respect to itself that, in its good
faith and reasonable judgment, is likely to materially and adversely affect its
ability to perform its obligations hereunder or under the Pooling and Servicing
Agreements.

     (vi) Fidelity Bond: Errors and Omission Insurance. Each officer, director,
employee, consultant and advisor of the Company with responsibilities concerning
the servicing and administration of the Mortgage Loans is covered by errors and
omissions insurance and fidelity bond insurance in the amounts and with the
coverage required under the related Pooling and Servicing Agreement for it to
maintain. Neither the Company nor any of its officers, directors, employees,
consultants, or advisors involved in the servicing or administration of the
Mortgage Loans has been refused such coverage or insurance.

                                      R-7
<PAGE>

     Section 4.03 Organizational and Other Related Warranties of the Special
Servicer. The Special Servicer hereby makes the following representations and
warranties to the Company and the Class B Holder:

     (i) Organization and Good Standing. The Special Servicer is an entity duly
organized, validly existing, and in good standing under the laws of its state of
incorporation or formation or the laws of the United States, and is in
compliance with the laws of each state in which any property is located to the
extent necessary to ensure the enforceability of each Mortgage Loan and to
perform its obligations hereunder.

     (ii) No Violation. Neither the execution and delivery by Special Servicer
of this Agreement, nor the consummation by it of the transactions contemplated
hereby, nor the performance of and compliance by the Special Servicer with the
provisions hereof , will conflict with or result in a breach or violation of, or
constitute a default (or an event which, with notice or the lapse of time, or
both, would constitute a default) under, the organizational documents (its
articles of incorporation or charter or by-laws) of the Special Servicer, or any
of the provisions of any law, rule, regulation, judgment, decree, demand, or
order (of any federal, state, or local governmental or regulatory authority or
court) binding on the Special Servicer, or any of its properties, or any of the
provisions of any indenture, mortgage, contract, instrument, or other document
to which the Special Servicer is a party or by which it is bound, or result in
the creation or imposition of any lien, charge, or encumbrance upon any of their
respective properties pursuant to the terms of any indenture, mortgage,
contract, instrument, or other document. The Special Servicer is not otherwise
in violation of any law, rule, regulation, judgment, decree, demand, or order
(of any federal, state or local governmental or regulatory authority or court),
which violation, in the Special Servicer's good faith and reasonable judgment,
is likely to affect materially and adversely either its ability to perform its
obligations hereunder, or the financial condition of the Special Servicer.

     (iii) Authorization and Enforceability. The execution and delivery by the
Special Servicer of this Agreement, the consummation of the transactions
contemplated hereby, and the performance and compliance by the Special Servicer
with the terms hereof are within the powers of the Special Servicer, and have
been duly authorized by all necessary action on the part of the Special
Servicer. All organizational resolutions and consents necessary for the Special
Servicer to enter into and consummate all transactions contemplated hereby have
been obtained. This Agreement has been duly executed and delivered by the
Special Servicer and constitutes the legal, valid and binding obligation of the
Special Servicer, enforceable against it in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium, and other
similar laws affecting creditors' rights generally, and to general principles of
equity, regardless of whether such enforcement is considered in a proceeding in
equity or at law. The Special Servicer has not failed to obtain any consent,
approval, authorization, or order of, or failed to cause any registration or
qualification with, any court or regulatory authority or other governmental body
having jurisdiction over the Special Servicer, which consent, approval,
authorization, order, registration, or qualification is required for, and the
absence of which would materially adversely affect, the legal and valid
execution, delivery, and performance of this Agreement by the Special Servicer.

     (iv) Approvals and Permits. The Special Servicer possesses such
certificates, authorizations, licenses, and permits issued by the appropriate
state, federal, and foreign regulatory agencies or bodies necessary to conduct
the business now operated by it, and its has not received any notice of
proceedings relating to the revocation or modification of any such certificate,
authorization, or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling, or finding, would materially and adversely affect
the conduct of the business, operations, financial condition, or income of the
Special Servicer.

     (v) No Litigation or Adverse Conditions. No litigation is pending or, to
the best of the Special Servicer's knowledge, threatened against it, which, if
determined adversely to the Special Servicer would prohibit the Special Servicer
from entering into this Agreement or, in the good faith and reasonable judgment
of the Special Servicer, is likely to materially and adversely affect either its
ability to perform its obligations hereunder or the financial condition of the
Special Servicer. The Special Servicer has no knowledge of any recent adverse
financial condition or event with respect to itself that, in its good faith and
reasonable judgment, is likely to materially and adversely affect its ability to
perform its obligations hereunder.

     (vi) Fidelity Bond, Errors and Omission Insurance. Each officer, director,
employee, consultant and advisor of the Special Servicer with responsibilities
concerning the servicing and administration of the Mortgage Loans is covered by
errors and omissions insurance and fidelity bond insurance in the amounts and
with the coverage required under the related Pooling and Servicing Agreement to
be maintained by the Company as master servicer. Neither the Special Servicer
nor any of its officers, directors, employees, consultants, or advisors involved
in the servicing or administration of the Mortgage Loans has been refused such
coverage or insurance.

     (vii) Approved Seller/Servicer. The Special Servicer is approved as a
seller/servicer of single-family mortgage loans by the Department of Housing and
Urban Development.

                                      R-8
<PAGE>

     Section 4.04 Remedies for Breach of Representation and Warranty. Upon
discovery by any of the Company, the Class B Holder or the Special Servicer of a
breach of any of the representations and warranties contained in Article IV
which materially and adversely affects the value of the Specially Serviced
Mortgage Loans or Delinquent Mortgage Loans, the party discovering such breach
shall give prompt written notice to the others.

     Each of the parties hereto shall indemnify the others and hold each of them
harmless against any losses, damages, penalties, fines, forfeitures, reasonable
and necessary legal fees and related costs, judgments, and other costs and
expenses resulting from any claim, demand, defense or assertion based on or
grounded upon, or resulting from, a breach of such party's representations and
warranties contained in Article IV. It is understood and agreed that the
obligations to indemnify as provided in this Section 4.04 constitute the sole
remedies of each of the Company, Class B Holder and Special Servicer respecting
a breach of any other party's representations and warranties.

                                   ARTICLE V
                                   ---------

                            MISCELLANEOUS PROVISIONS
                            ------------------------

     Section 5.01 Indemnification. Each of the Company, the Class B Holder and
the Special Servicer (each as such, an "Indemnifying Party") shall indemnify the
other parties hereto (each as such, an "Indemnified Party") and hold them
harmless against any and all claims, losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments,
and any other costs, fees and expenses (individually and collectively, the
"Claims") that such Indemnified Party may sustain in any way related to the
failure of the Indemnifying Party to perform its duties in compliance with the
terms of this Agreement; provided, that none of the Company, the Class B Holder
or the Special Servicer or any of the directors, officers, employees or agents
of the Depositor or the Servicer shall be liable for any action taken or for
refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Company, the Class B Holder or the Special Servicer
against any material breach of warranties, representations or covenants made
herein, or against any specific liability imposed on such party pursuant hereto,
or against any liability which would otherwise be imposed by reason of willful
misfeasance, bad faith or gross negligence in the performance of duties or by
reason of reckless disregard of obligations and duties hereunder.

     Section 5.02 Amendment. This Agreement may be amended from time to time by
written agreement signed by each of the parties hereto.

     Section 5.03 Counterparts. This Agreement may be executed simultaneously in
any number of counterparts, each of which counterparts shall be deemed to be an
original and such counterparts shall constitute but one and the same instrument.

     Section 5.04 Governing Law. This Agreement shall be construed in accordance
with the laws of the State of New York and the obligations, rights and remedies
of the parties hereunder shall be determined in accordance with such laws.

     Section 5.05 Notices. All demands, notices and direction hereunder shall be
in writing or by telecopy and shall be deemed effective upon receipt to:

               (i)      in the case of the Company

               Company

               Address:
                       ------------------------------------
               Attention:
                         ----------------------------------
               Telephone:
                         ----------------------------------
               Facsimile:
                         ----------------------------------

               or such other address as may hereafter be furnished to the
               Class B Holder and the Special Servicer in writing.

               (ii)     in the case of the Class B Holder,

               Address:
                       ------------------------------------
               Attention:
                         ----------------------------------
               Telephone:
                         ----------------------------------
               Facsimile:
                         ----------------------------------

               or such other address as may hereafter be furnished to the
               Company in writing.

                                      R-9
<PAGE>

               (iii)    in the case of the Special Servicer,

               Address:
                       ------------------------------------
               Attention:
                         ----------------------------------
               Telephone:
                         ----------------------------------
               Facsimile:
                         ----------------------------------

               or such other address as may hereafter be furnished to the
               Company in writing.

     Section 5.06 Termination. This Agreement shall terminate (i) at such time
as the Principal Balance of the Class B Certificates has been reduced to zero or
(ii) if mutually agreed to by the parties hereto.

     Section 5.07 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be held
invalid for any reason whatsoever, then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement. If the invalidity of
any part, provision, representation or warranty of this Agreement shall deprive
any party of the economic benefit intended to be conferred by this Agreement,
the parties shall negotiate in good faith to develop a structure the economic
effect of which is nearly as possible the same as the economic effect of this
Agreement without regard to such invalidity.

     Section 5.08 Successors and Assigns. This Agreement may not be assigned by
any party hereto without the prior written consent of each of the other parties
hereto. The provisions of this Agreement shall be binding upon and inure to the
benefit of the respective successors and assigns of the parties hereto.

     Section 5.09 Article and Section Headings. The article and section headings
herein are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof.

     Section 5.10 Confidentiality. The Class B Holder agrees that all
information supplied by or on behalf of the Company pursuant to Sections 2.02 or
3.01, including individual account information, is the property of the Company
and the Class B Holder agrees to use such information only for the purposes
contemplated by this Agreement and otherwise hold such information confidential
and not to disclose such information, except to the extent such information is
made publicly available by or on behalf of the Company or the relevant Trustee.

     Section 5.11 Publicly Registered Certificates. The Class B Holder agrees,
that without the prior written consent of the Company, so long as Class B Holder
is a party to this Agreement and a holder of any Class B Certificates of a
Series, it will not purchase, sell or trade any publicly registered Certificates
of the same Series.

     Section 5.12 No Partnership. Nothing herein shall be deemed or construed to
create a partnership or joint venture between the parties hereto and the
services of the Company shall be rendered as an independent contractor and not
as an agent for the Company.

     Section 5.13 Rights of the Class B Holder. Notwithstanding anything herein
to the contrary, it is agreed by the parties hereto that the rights of the Class
B Holder set forth under Article II and Section 3.02(e) of this Agreement shall
relate to, and be exercisable with respect to, the related Mortgage Loans of any
Series to the extent that and for so long as, the Class B Holder owns at least
75% of the most subordinate outstanding class of Class B Certificates of the
related Series (calculated by dividing the then outstanding Certificate
Principal Balance of such Class B Certificates by the then outstanding
Certificate Principal Balance of all certificates of the same class).

                                      R-10
<PAGE>

         IN WITNESS WHEREOF, each of the parties hereto have caused its name to
be signed hereto by its respective officer thereunto duly authorized, all as of
the day and year first above written.

                                          COMPANY

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

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

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

                                      R-11

<PAGE>
                                                                      SCHEDULE I

Describe each Series of Class B Certificates and the related Pooling and
Servicing Agreement

                                      R-12
<PAGE>

                                                                     SCHEDULE II

     SPECIAL SERVICING TRANSFER PROCEDURES

     Any transfer of servicing with respect to a Specially Serviced Mortgage
Loan shall be effected substantially in accordance with the following example.
All dates set forth below are for illustrative purposes only. Capitalized terms
used in this Exhibit shall have the meanings ascribed thereto in the Agreement.

                                    Timeline
                                    --------

Last Business Day of Month One
         Mortgagor is 89 Days Delinquent.

3rd Business Day of Month Two
         The Company receives an electronic file from its Collections Department
         on all 90+delinquent loans.

4th Business Day of Month Two
         The Company sends the electronic file to Class B Holder/Special
         Servicer of all 90+ delinquent loans with information designating those
         loans where a forbearance plan or workout is in progress and those
         loans where there is no plan in place. The Company and the Special
         Servicer have a discussion. The loans to be transferred are determined
         by the Class B Holder/Special Servicer.

6th Business Day of Month Two
         The Special Servicer informs the Company of the loans designated as
         Specially Serviced Mortgage Loans. The Company and the Special Servicer
         coordinate the transfer of servicing of the Specially Serviced Mortgage
         Loans. The Company prepares and mails the mortgagor notification no
         later than the 13th calendar day of the month. If a loan reinstates to
         a current or less than 90 days delinquent status before the mortgagor
         notification (i.e., the "goodbye letter") is sent, such loan will be
         removed from the transfer, and the Company will notify the Special
         Servicer thereof. The borrower will be instructed to send the payment
         due on the effective date of transfer and any past due payments to the
         Special Servicer.

7th Business Day of Month Two
         Relevant Trustee receives monthly electronic data file from the
         Company. The subject loan is included in the Company's report as an
         active loan serviced by the Company. The Company reports scheduled P&I
         on the subject loan.

On or prior to 15th Calendar Day of Month Two
         The Company sends a foreclosure referral letter to the Special
         Servicer's foreclosure counsel with a corresponding foreclosure
         package.

18th Calendar Day (or Business day immediately preceding the 18th) of Month Two
         The Company makes its monthly remittance, including advancing scheduled
         P&I payment due for current month for the subject loan.

Last business Day of Month Two
         Month-end cut-off.

1st Business Day of Month Three
         Effective Date.

On or Before 3rd Business Day of Month Three
         In accordance with the Servicing Transfer Instructions:

         Company sends Special Servicer final transfer data (e.g., trial
         balance, loan files, current and previous 2 years' history records (if
         applicable), all default-related correspondence, and all collection,
         foreclosure and bankruptcy files);

         Company provides Special Servicer with detailed reimbursement request
         relating to advances; and

         Company sends Special Servicer a check or wire for the net escrow and
         unapplied funds.

                                      R-13

<PAGE>

         On or before the 6th Business Day of Month Three

         In accordance with the Servicing Transfer Instructions, Special Service
         reimburses Company for all outstanding advances, and the scheduled
         mortgage payment due on the Effective Date.

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

Note:

1.       If the loan has been transferred to Special Servicer and it cures,
         Special Servicer continues to service the loan and report it to Company
         as herein provided.

2.       If the Class B Certificates of the related Series are reduced to zero,
         Special Servicer will continue to service the mortgage loans until they
         payoff or are liquidated. No other Delinquent Mortgage Loans of a
         Series will be transferred to Special Servicer after the Class B
         Certificates of such Series are reduced to zero.

                                      R-14
<PAGE>

                         Servicing Transfer Instructions
                         -------------------------------

I.     NOTIFICATION OF LOANS TO TRANSFER

A.     Company will coordinate and provide a listing of all loans past 90 days
delinquent. The list will be provided to Special Servicer for review and
discussion on the 4th Business day of each month.

B.     Class B Holder and Special Servicer to agree upon the loans to be
transferred at month-end. The list must be provided via Facsimile or E-mail by
the 6th business day of the month to:

           [COMPANY]
           [Address and contact]

II.    CONVERSION DATA

Dependent upon the volume of loans transferring each month, the loans will be
transferred effective the first of each month based on the prior month-end cut
off by one of the following mutually agreed upon conversion methods.

A.     Manual conversion

       1. Company to provide a "master file data record" (COMPANY reference for
          master file data record?) for each loan (accompanied by a listing of
          all code definitions).

       2. Company to provide a trial balance containing all the loans.

B.   Electronic conversion

       1. Information will be provided in a Microsoft Excel spreadsheet (or such
          other mutually agreeable format) containing mutually agreed upon
          fields.

       2. Company to provide a trial balance containing all the loans.

Preliminary information for either a manual or electronic conversion will be
provided within 3 business days of receipt of the List of Loans to Transfer to
provide time for Special Servicer to verify and load the information, with the
exception of the specific data that is determined at the transfer date.

III.   HOMEOWNER NOTIFICATION

A.     Company will mail the mortgagor notification (good-bye letter) fifteen
days prior to the transfer date. Company will forward a copy of its good-bye
letter to Special Servicer c/o [Dept.] (fax number ___-___-____) for approval
prior to mailing.

B.     Copies of Company's mortgagor notification letters will be provided to
Special Servicer.

C.     Company to receive a sample of Special Servicer's mortgagor notification
(welcome letter) for approval prior to mailing.

IV.    HAZARD/FLOOD INSURANCE

A.     Company to prepare a change to the mortgagee clause as follows:

       Address:
               ------------------------------------
       Attention:
                 ----------------------------------
       Telephone:
                 ----------------------------------
       Facsimile:
                 ----------------------------------

B.     Copies of the mortgagee clause change requests will be provided to
Special Servicer.

C.     Any unpaid policies, expiration notices, cancellation notices, loans with
expired policies will be properly identified, sorted and marked for special
handling.

                                      R-15
<PAGE>

D.     Company to provide a list of loans under "force place coverage" program.
Force place hazard insurance policies with ASG will be canceled upon transfer of
the loans. WNC force place flood policy coverage will stay in place after
transfer until the expiration date.

V.     FHA LOANS

A.     Company to provide screen prints to include the following items on FHA
Loans with a monthly premium.

       1. Loan number

       2. FHA case number

       3. Anniversary date

       4. Annual premium

       5. Monthly amount

       6. Total MIP paid to date

       7. Next month the premium is due

B.     Company to provide screen prints to include the following items on FHA
loans that the full premium was paid up front.

       1. Loan number

       2. FHA case number

       3. Insuring date

       4. Amount of prepaid premium

C.     Company to prepare HUD Form 92080 with Special Servicer's HUD mortgagee
number (72313) and forward to HUD electronically. Proof of submission will be
forwarded to Special Servicer.

VI.    CONVENTIONAL LOANS

A.     Individual loan PMI certificates will be retained in the Servicing File

B.     Company to prepare notifications to the PMI companies requesting a change
of servicer to Special Servicer. Copies will be forwarded to Special Servicer.

C.     Company to provide screen prints of all loans with PMI to include:

       1. Loan number

       2. PMI company

       3. PMI certificate number

       4. Next due date

       5. Last amount paid

VII.   REAL ESTATE TAXES

A.     Company to forward individual loan tax records showing payee, due dates,
frequency of payment, next due date, last paid date and last paid amount.

                                      R-16
<PAGE>

B.     Company to provide copies of the notifications to the individual tax
authorities and the Tax Service requests for a change of servicer to Special
Servicer under the following contract numbers (Transamerica-2489 Pinnacle - 119)

C.     All property taxes due and payable will be paid prior to the transfer
date.

D.     All tax bills received after the transfer date will be forwarded to
Special Servicer for payment.

E.     Company to provide a listing of any loans with delinquent taxes
containing the pertinent information as of the transfer date.

VIII.  OPTIONAL INSURANCE

A.     Company to provide a list of loans with A&H, life insurance, accidental
death insurance, etc., which will include the following information.

       1. Loan number

       2. Insurance company

       3. Type of coverage

       4. Amount of monthly premium

       5. Last monthly premium paid

B.     Company to provide copies of the master and/or individual policies for
the insurance coverage.

C.     Company to provide copies of the notification sent to the insurance
companies.

IX.    INVESTOR REPORTS

A.     Company to provide a copy of the final remittance report to the investor
including a trial balance as of cutoff date.

B.     Company to provide ending loan scheduled balance at transfer date.

C.     Company to provide a report detailing advanced delinquent net interest
monthly by due date.

D.     Company to provide a report detailing advanced delinquent principal
monthly by due date.

X.     OTHER

A.     Company to provide hardcopies of the last 24 months history for each loan
accompanied by an explanation of transaction codes.

B.     Company to provide copies of the last escrow analysis for each loan with
an explanation of analysis method (cushion, etc.).

C.     Company to provide the loan servicing file in hardcopy or microfiche
format.

D.     Company to provide the currently active collection records and pertinent
information on delinquent loans.

E.     Net escrow and unapplied funds as of the transfer date will be sent to
Special Servicer via check or wire within three business days of the transfer,
accompanied by an explanation of Unapplied Funds codes.

F.     The advances (exclusive of escrow advances, which will be handled in
Section X (E) above) incurred by Company will be billed to Special Servicer
accompanied by appropriate documentation. Special Servicer to reimburse Company
via check or wire for all advances (exclusive of escrow advances, which will be
handled in Section X (E) above) on the subject loans within three business days
of receipt of billing.

                                      R-17
<PAGE>

G.     Company to provide a listing containing the mortgagor name, co-mortgagor
name, property address and mailing address for preparation of Special Servicer's
Notification Letters.

H.       Company to provide the following items, sorted and clearly marked for
special handling.

       1. Active foreclosure and bankruptcy files should have the status shown
          on the front of each file.

       2. Insurance loss drafts should provide all documentation on the current
          status.

       3. Unprocessed payoff funds should be accompanied by a copy of the payoff
          quotation.

       4. Information should be furnished on any pending payoff or assumption.

       5. Information on any incomplete partial releases should be provided.

I.     Loan payments received after the cutoff will be endorsed to __________
and forwarded by overnight service to the following address within twenty-four
hours, properly identified with Company's loan number.

       [Address]

Returned Items received after the transfer date will be forwarded to Special
Servicer for reimbursement. Special Servicer to reimburse Company within 10
business days of receipt.

J.     Company to ship all loan files and documentation related to the
individual transfers by the 3rd business day after the cut-off. Any information,
such as preliminary trial balances, master file data records, delinquency
information, etc. will be furnished as early as possible prior to the transfer
date.

All shipments to be sent to:

       [Address]

K.     Company to furnish all required IRS reporting statements for the current
year up to the transfer date, both to the mortgagors and to the appropriate
government agencies. Special Servicer to furnish all required year-end reporting
commencing on the effective date of transfer through the year-end.

                                      R-18
<PAGE>

                                                        EXHIBIT A to Schedule II

                   LOAN INFORMATION TO BE PROVIDED TO COMPANY

                                      R-19

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